Questions and Answer Quick Links :
For a listing of Historical Questions and Answers regarding Federal City, please click here.
- Now that the solicitation response deadline has passed, has the Master Developer been selected yet?
Yes! NOFA announced on October 17, 2007 that HRI/ECC, LLC was selected as the Master Developer for the development of Federal City. Please see the Developer section for more information about the winning team.
- Will you post a list of attendees of the Industry Forum meeting on your website?
Yes, this document has been posted.
- Where are the funds that are paying for BearingPoint coming from?
The Algiers Development District.
- What are the projected dates for beginning and the rough date of completion for the Federal City Project?
As of the Industry Forum (25 July 2007) the anticipated milestone schedule is presented below, however, it is subject to change. Actual development schedules will be dependent on the exact development plan established in conjunction with the selected developer in order to meet the project goals as outlined in the solicitation.
| Draft Solicitation Issued | 25 June 2007 |
| Industry Forum | 25 July 2007 |
| Final Solicitation Issued | 6 August 2007 |
| Question Submission Deadline | 31 August 2007 |
| Proposals Due | 14 September 2007 |
| Successful Offeror Selected | 19 October 2007 |
| Business & Lease Plans Finalized | 25 January 2008 |
| Execute Lease with Developer | Spring 2008 |
| Construction Begins | Late Spring 2008 |
- What happens to the project if the Business and Lease plan is (not approved) or the closing is delayed?
If some legitimate problem arises that would jeopardize meeting the deadlines, NOFA is hopeful that by working with the developer and the Navy, a resolution could be reached.
- When does funding availability start for the Developers? (Trying to envision the pre-development funding to plan for).
NOFA intends to pay its own costs related to the Business Plan and Leasing Plan development efforts and expects the Developer will likewise pay their own costs for pre-development activities such as the Business and Leasing Plan. Developers should understand that their pre-development participation should be considered a commercial opportunity investment. In no event will NOFA or the DON be responsible for the payment of any fees or have any liability to the chosen Developer for the Plans or work product(s) generated in developing the Plans.
The State has committed at least $100 Million to be used in the development of the Project. This commitment was formalized in the most recent legislative session. The State Legislature appropriated $100 million in Capital Outlay funds to Federal City. Twelve million of these Capital Outlay funds were appropriated in the State’s Priority 2 funding, which should be available for use during FY 2007-2008, and the remaining $88 Million was appropriated in the State’s Priority 5 funding, which should be available for use during FY 2008-2009. NOFA is currently working with the State on the best mechanisms for transfer of the funds to the project and the most appropriate timing.
- Will Federal leases have "Subject to annual congressional appropriation" language?
Specific lease terms for individual Federal tenants will vary from lease to lease as negotiated going forward with each future tenant. In general, from the Federal Government’s point of view, lease actions are divided into ‘capital leases’, which the Office of Management and Budget (OMB) views as equivalent to the purchase of an asset for the purposes of budgeting; and ‘operating leases’, which are leases under which the asset is used for a period of time and do not contain or imply the risks of ownership. These two types of leases are ‘scored’ differently by OMB.
Budgetary scoring impacts two areas of an EUL project. The first is the ground lease itself. There is no scoring associated with a U.S.C. Title 10 Section 2667 Ground Lease as long as the installation gets fair market value for the land as in-kind consideration or cash. The second area in which scoring applies is if there is any federal leasing of space in the new building(s). The OMB criteria (see Appendix B of Circular A-11) helps the government determine whether the project is really just federal construction in disguise, in which case it would be put in on the books as a capital lease, or whether it is just an operating expenditure of the federal government like anything else that it would lease, in which case they would account for it as an operating lease.
In order to avoid capital lease treatment, it should be ensured that the ground lease for this project is severed from any potential lease-back, and that any lease-back that may be performed, complies with all the operating lease scoring rules.
- Will the selected Developer have a panel of influence with NOFA and the Louisiana Department of Economic Development regarding the state committed funds and its distribution?
The Developer will provide input to NOFA to help determine the most effective use of any State appropriations. The mechanisms for expenditure and accounting of these funds will be developed by NOFA and the State of Louisiana through the Division of Administration, with input from the Developer, and memorialized in a cooperative endeavor agreement jointly drafted by the parties.
- Does the property have to abide by city permitting, zoning, and planning approvals?
EUL by definition is conducted on federal property. While federal property may technically not be subject to a local planning, zoning and permitting regime, NOFA expects the developer to work with local officials to achieve consistency with community interests in that regard.
- Are State and/or Local agencies considering occupancy (if permitted) at Federal City?
Yes, State and Local Agencies are targeted tenants. The New Orleans Federal Alliance (NOFA) is actively talking to and marketing to them at this time.
- How many personnel will be employed by Federal lessees?
There is no predetermined and/or guaranteed number of federal leases. The ultimate number of Federal leases will depend largely on HRI/ECC’s proposed tenant mix and success in identifying and securing tenants for Federal City. NOFA and HRI/ECC’s objective is to have at least 10,000 employees working on the Federal City complex within the next 10 to 12 years. Initial progress toward meeting this employment goal will be provided by the BRAC mandated relocation of Headquarters, Marine Forces Reserve (MarForRes) to Federal City. MarForRes reports that their present requirements are for 1,963 employees to be housed at Federal City. When considering the MarForRes presence and the possibility of other potential tenants in the relatively early portion of the project, NOFA approximates a range of anywhere between 2200 - 4500 tenants. Again, there is no predetermined and/or guaranteed number of tenants.
- How does a Small Engineering Firm get involved with this Project?
NOFA does not intend to directly engage individual companies for these types of project support services independent of HRI/ECC. The solicitation required any developer responses to include an overview of a comprehensive plan to ensure participation of local, woman & minority owned, and small disadvantaged businesses.
- What checks will occur throughout the project lifetime to ensure local/small/disadvantage businesses will be included in all phases?
NOFA is working with HRI/ECC during the business plan phase to develop an approach and procedures to ensure proper participation by local, woman & minority owned, and small disadvantaged businesses in all phases of the project's lifecycle. NOFA and HRI/ECC are both committed to the meaningful participation of such firms.
- What commands of the Coast Guard will be moving to the Federal City? When should the Coast Guard be ready to move into their building?
The Coast Guard site will be for the Headquarters of Sector New Orleans, a regional command, with about 300 personnel stationed at their Headquarters. Our best information is that the Coast Guard plans to move into their new building before the start of calendar year 2010.
