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C I T Y

O F

C A R M E L - B Y - T H E - S E A

REQUEST FOR PROPOSALS

LEASING OF THE HISTORIC FLANDERS MANSION

FOR PROPOSALS LEASING OF THE HISTORIC FLANDERS MANSION Picture courtesy of the William Gahgan Scrapbook Collection,

Picture courtesy of the William Gahgan Scrapbook Collection, Henry Meade Williams Local History Department, Harrison Memorial Library, Carmel, CA

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Tel: -620-2000

I.

INVITATION

Nestled amidst a park setting, the Flanders “Outlands” Mansion awaits a tenant willing to partake of its ocean views and iconic Carmel-by-the-Sea architecture. Designed by Henry Higby Gutterson, this 1924 Tudor Revival English Cottage is listed on the National Register of Historic Places. The 6,000 square foot mansion includes seven bedrooms, five baths, a living room and dining room with fireplace and teak floors. The property is located in the City of Carmel-by-the-Sea, a quaint coastal village of 4,000 tucked along the central coast in Monterey County, California. The City prides itself on its natural beauty, including white sand beaches, landscaped bluffs, verdant forests, and parklands.

The City seeks to enter into a long-term lease for the use of the Flanders Mansion as a single-family residence. The City seeks proposals from interested and capable person(s) with the financial means to restore the Mansion. The deadline to respond is no later than April 1, 2013.

II. FLANDERS MANSION

In 1924, Paul and Grace Flanders commissioned San Francisco architect Henry Higby Gutterson to design their home in the English Cottage sub-style of Tudor Revival architecture. The Mansion, also known as “Outlands,is listed on the National Register of Historic Places due to the work of this prominent architect and his innovative construction methods. Gutterson utilized a unique cavity wall system of precast interlocking concrete blocks that were locally produced by the Carmel

Thermotite Company as the primary building material.

pictorial, cottage-style buildings, which became a popular architectural design theme throughout Carmel-by-the-Sea. See Exhibit A, National Register of Historic Places Registration Form, for additional information.

“Outlands” represents one of the early

The Mansion consists of approximately 6,000 square feet of livable space comprised of seven bedrooms, five baths, a living room and a dining room with fireplaces and teak floors set amidst a park-like setting of Monterey pines and cypress trees with views of the Carmel Bay and the Carmel Mission. The property is located within and surrounded on all sides by the Mission Trail Nature Preserve. Immediately east of the Mansion is a part of the Preserve known as the Lester Rowntree Native Plant Garden. The property is zoned P-2 (Improved Parkland).

A cost estimate, prepared for the City in 2009 by the Architectural Resources Group lists rehabilitation requirements to restore the Mansion. These costs were estimated at $1.2 million, although the City has made some improvements to the Mansion since that time. An economic analysis of the Mansion completed in 2009 by CBRE estimated that if the property was restored, the monthly market rent for the property would be $8,500.

Tours of the Flanders Mansion property will be held on an appointment basis and will only be offered to person(s) who are serious about submitting a proposal. Person(s) interested in a tour should call 831.620.2000 and provide the City a minimum notice of two working days.

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III. LEASE CRITERIA

The City seeks proposals that meet the following criteria:

1. Property must be used as a single-family residence during the term of the lease.

2. Lessee must show sufficient liquid financial resources to restore and renovate the residence and grounds consistent with a preservation plan approved by the City according to historic preservation standards.

3. Lessee must agree to conform to and implement all mitigation measures approved by the City Council as shown in Exhibit B.

4. Lessee must restore the property on a timely basis, maintain the property throughout the lease and return the property to the City in its fully restored condition.

5. Lessee must agree to pay market rent including all expenses, although the City will consider allowances to offset improvements made to the property.

6. Lessee must provide adequate insurance to protect the City from any and all liability and will agree to defend, indemnify and hold the City harmless from any liability arising from the lessee’s use of the property.

7. The City will evaluate upon receipt each offer that meets these criteria.

IV. MITIGATION REQUIREMENTS

The City's decision to lease the Flanders Mansion property has undergone a public environmental review process as required by the State of California. The City has prepared a Final Environmental Impact Report (EIR) for the Flanders Mansion property that addresses the impacts of the lease of the property on such factors as aesthetics, biological resources, cultural resources, land use, parks and recreation, and traffic and circulation. The California Public Resources Code requires all State and local agencies in California to establish monitoring or reporting programs for the approval of a project that requires an EIR in order to mitigate or avoid significant environmental impacts identified within the EIR.

Some of the conditions will need to be satisfied prior to occupancy of the Mansion by the lessee while other conditions will be satisfied as the lessee commences with various construction-related renovations that require building permits or other approvals. The list of mitigation measures required is outlined in Exhibit B. More detail about the environmental impacts and mitigation measures analyzed in the 2012 Final Environmental Impact Report can be found at:

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V. PROPOSAL REQUIREMENTS

Interested person(s) should submit a proposal that includes the following items:

1. Signed cover letter containing the following items:

a. Name, address, telephone number and email address.

b. Brief written Statement of Interest in the property.

c. Resume(s) for each applicant demonstrating experience or qualifications of applicant in the field of historic preservation, restoration, or other relevant experience, including successful completion of a restoration project, if applicable.

d. Personal financial statement (Exhibit C) demonstrating financial ability of applicant(s) to complete restorations within five years of commencement of the lease, and to pay rent, utilities, insurance, on-going maintenance, and all related property expenses. The City may require additional documentation of an applicant’s creditworthiness and financial security, such as federal/state tax returns and a credit report.

e. Statement confirming applicant’s ability to provide personal property, general liability and other insurance as deemed necessary by the City. The current (un-restored) estimated value of the Mansion is $1.8 million. The City will require proof of insurance and to be named as an additional insured on the applicant’s insurance policy as conditions of the lease.

f. Statements confirming applicant’s ability to comply with the terms stated under Section III, and authorization for the City to conduct a background investigation.

2. Lease Proposal:

Summary of the elements of the proposal including:

a. Proposed length of term for the lease.

b. Proposed monthly lease payment.

c. Proposed improvement allowance, which should be reflective of the costs contained in the Rehabilitation/Preservation Plan Approach (#3).

3. Rehabilitation/Preservation Plan Approach

An explanation of the applicant's proposed approach to development and implementation of a Preservation Plan should be provided. An independent firm has identified a list of improvements to be made to the Flanders Mansion property that are listed in Exhibit D, Rehabilitation Schedule. The City does not warrant that this list is necessarily complete. Applicants are encouraged to examine the property and may, at their own expense, have architectural, engineering and other professionals analyze current building conditions.

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The Preservation Plan, to be developed during the first year of the lease agreement, must include a schedule of work that includes the items in Exhibit D and provides:

a. A summary of the approach to be used, including the type of work to be performed and the prioritization of work items and the completion dates.

b. A cost breakdown including the amount of projected costs for contracted labor and materials, and an estimated value of lessee labor (“sweat equity”). All plumbing, electrical and structural work must be performed by certified and insured professionals.

The applicant(s) selected by the City will be required to complete a Preservation Plan prior to commencing work on the Mansion. A qualified specialist who meets the Secretary of the Interior’s Professional Qualifications Standards must complete the Preservation Plan, which must be approved by the City’s Historic Resources Board and the City Council. Please see Mitigation Measure 4.3-1 in Exhibit B. The City anticipates that the work will be completed within 48 months after the City’s approval of the Preservation Plan.

VI. SUBMISSION OF PROPOSALS

Interested person(s) should submit a proposal as soon as possible, but no later than April 1, 2013 that includes the elements listed under Section IV to the attention of:

Jason Stilwell City Administrator City of Carmel-by-the Sea P.O. Box CC Carmel-by-the-Sea, CA, 93921

VII. SELECTION CRITERIA AND PROCESS

The City anticipates that one or more meetings between City staff and the applicant(s) will be required before a recommendation to the City Council is prepared. A staff review of proposals will be based on compliance with the terms stated above and upon the criteria listed below.

1. The proposal’s alignment with the City’s intended use of the property and the applicant's plan to work with the City on mitigation measures, including preparation of the Preservation

Plan.

2. The proposed lease terms.

3. The financial ability of the applicant to fulfill the proposed lease terms and complete restorations in a timely manner.

4. The background, experience and qualifications of the applicant, in the areas of historic preservation and restoration.

5. Capacity of applicant to perform (ability to manage restoration; ability to comply with mitigation measures; ability to work with City staff).

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VIII. OTHER TERMS

The City’s release of this Request for Proposals does not commit the City to enter into a lease agreement nor pay any costs incurred in the preparation of a response to this Request. The City reserves the right to request further information before making a final decision. Applicants should assume all materials submitted in response to this Request for Proposals will be open to the public, with the exception of personal contact and financial information. The City Administrator may negotiate with one potential lessee without terminating negotiations with another lessee, may negotiate with one or more lessees during the same period of time or may terminate negotiations at his/her discretion. Any negotiated lease agreement must be approved by the City Council. If a lease is approved by the City Council, the lessee may take residency after 1 September 2013 with the approval of a Certificate of Occupancy by the Building Official and upon completion of mitigation measures 4.1-1 and 4.6-1.

IX.

EXHIBITS

A. National Register of Historic Places Registration Form for Outlands/Flanders Mansion

B. Draft Flanders Mansion Mitigation Measures

C. Personal Financial Statement

D. Rehabilitation Schedule

E. Selected Photographs of Flanders Mansion and Scenic Views (courtesy of Denis Duffy and Associates) Additional photographs available at http://www.flandersfoundation.org/photos.htm

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