Real Estate Development: Dumbo Case
1. Conclusions
Some of the critical conclusions in the development of Dumbo Bridge Development Right RFP are the need to set the clear purchase and transfer rights of the tenants of the collective sites in Manhattan Bridge. The city will be able to retain a substantial floor for its continued use on the two sites. The floor areas are estimated to be about 27, 251 square feet. The city administration will develop a competitive response to the RFP, which are used in the development rights of a project. Some of the critical goals to be achieved in the design of the Development Rights include the maximization of the office development, planning the feasible development project and the generation of quality returns from the sale proceeds.
2. Challenge
Some of the key challenges in the presentation of the developmental rights RFP include the demand to align with the provisions of Zoning Resolution and over applicable regulations and laws. All RFP should always be updated to conform to these Zoning Regulations. Organizations must seek to meet the proper design guidelines and development controls and controls. For example, the NYCEDC Dumbo area will need to develop proper proposals to respect the zoning regulations. In most occasions, the professionals are recommended to consult the attorney to help in understanding the eligibility of their sites as the core entity of development rights. Legal and payment problems also make it difficult to design and present a comprehensive RFP programs. Proper project evaluation and assessment should be done to ensure that the developmental rights and regulations are followed such as the local laws and regulations in New York.
3. Risks and Mitigates
Some of the risks associated with the adoption of Dumbo Manhattan Bridge project include potential post-recession, strong inflation levels, construction risks and legal risks among others. The construction project will need to have good pricing the materials, design, and quality. It is possible that the construction risks should be managed to prove the pricing. Legal risks stipulate the potential changes in the zoning to reduce their actual threats. The risk megaton programs will include the drawing up of the contractual obligations. Phasing of the project would also make it possible to implement the entire city development in smaller units. The research projects also critical in making the tender process. Certain elements and areas should be managed well include the allocation strategy, investor demand as well as the forecasting of the yield development. Other risk mitigation measures include cost calculations, prelease sales, and the timing payments (NYCEDC, 2017). Environmental reviews will also help to deal with the challenges of poor zoning and management the external floor area.
4. How would you respond to RFP?
My response to the RPF is that there is a need to use the development rights in the project. However, the obligations associated with the rights of development in the city must be done. The RFP should focus on the efforts to expand the office development in areas away from the New York Plans. It should also create comprehensive site plans and build a design that integrates significant excellence and sustainability. In addition, the delivery of good hiring and wage program is also effective. Such a program will help in improving the creation of jobs for the development of New York City. Other responses include the planning and the implementation of feasible development programs apart from the set project goals and objectives. Focusing on the greater returns for the city development will also be a significant contribution. It is critical to ensure that the varied skills and competencies of the RFPs are maintained in an effort to achieve the core goals and objectives of the city development. For example, the New York will design a 100,000 technology that helps in growing the developmental rights.
5. What would be bid consider?
The bid for development rights will consider various factors including the affordability, hiring, wages, and the CEQR requirements. Independent appraisals have insisted on the need for the purchase prices to consider the various factors. For example, the consideration will review the details of a financial impact as well as the cash purchase price offer made. In addition, the city-imposed restrictions will need to be considered before setting the bid for the development rights in Dumbo area (NYCEDC, 2017). The bid will also include the financial impact of the living wage laws and regulations that assist in promoting job creation in the city development. The local laws in New York push for the developmental programs to ascertain their commitment to offer better salaries and creating more jobs. Other factors that must be considered include engaging the various stakeholders including the principals and the respondents to understand the key terms in real estate.
6.
Forming a joint-venture with the investors is a good arrangement for promoting the success of the city developmental rights in Manhattan Bridge. Joint-ventures between the public and the private entities help to share risks and potential losses in the development investments. However, the joint ventures are subject to legal constraints. The agreement to form the joint venture should comprise of clear terms and conditions to avoid potential conflicts in the near future. Partnerships are also close to the joint-ventures (NYCEDC, 2017). The city development should ensure that experienced investors are contracted and offer significant incentives. However, such arrangement between the city development units and investors should be informed by the set laws and regulations.
