The City of Mesquite is planning to issue a Request for Proposals seeking master developers for a roughly 500-acre master-planned development on City-owned land called Desert Falls.
Each proposal must feature developer qualifications. This includes the company background, major personnel, comparable master plans and litigation/bankruptcy disclosure. Zoning will be processed through a Planned Unit Development.
Financial capacity must be included as well. More specifically, this includes three years of audited financial statements, funding sources, equity commitment and a “capital stack description.”
The development plan must feature a conceptual site plan that is either consistent with the City of Mesquite’s concept or makes improvements upon the concept. It must also include a multi-year phasing plan, infrastructure sequencing outline and public infrastructure contributions.
An economic impact assessment must be submitted as well. This includes tax generation projections, employment projections and public infrastructure contributions. The transaction structure must also be explained.
The goal of the RFP is to create a high-quality, multi-phase development in a timely manner. It also aims to “Prevent speculative land holding or resale prior to substantial development.”
Proposals must accurately implement the City’s land use vision. They must also list horizontal infrastructure improvements with specified timelines and include evidence as to how plans will improve the tax/employment base, workforce housing and long-term fiscal stability.
Other required elements include quality design, adequate open space and circulation, community amenities and concepts for parks/resorts.
The selected master developer will be subject to meeting construction benchmarks in specified performance periods.
The master developer must also enter into a Development Agreement that will determine the:
- Schedule/phasing,
- Yearly development thresholds,
- Infrastructure obligations,
- Performance security,
- Anti-assignment restrictions,
- Reversionary rights,
- Remediation plan in case of default,
- Reporting requirements and
- Fiscal impact plan.
The City has three separate transaction structures. The first is a performance lease with conditional conveyance; the second is a market sale with performance rebate, and the third is a pre-construction price sale with mandatory public improvements.
The master plan was recommended by the Master Plan Committee and later approved by City Council. Developers are welcome to submit alternative proposals that make improvements to the approved plan.
The RFP goes on to say, “Any new proposal deemed beneficial will be subject to review and further negotiation. The City seeks a development partner capable of implementing the approved land use vision in a timely, financially viable, and performance-driven manner.”
Proposals are to be compared based on financial strength/capital commitment, similar/completed projects, feasibility, alignment with City’s plan, fiscal impact, anti-speculation compliance and risk to City.
Interested parties must submit both an electronic and a hard copy. Copies can be submitted to Director of Development Services, Simon Kim, at skim@mesquitenv.gov.
City Concept Plan
The City’s concept plan breaks the 500-acre parcel into eight separate areas. The southernmost portion will be the 46.9-acre Innovation & Research Center. Moving north will feature a 79.8-acre Workforce Housing area. Further north is a 160.4-acre Parks & Resorts area and an 11-acre Hotel area.
Immediately east of the Hotel area will be a 70.8-acre Multifamily zone. Just south of that will be a 25.9-acre Education center. Further to the east are a 61.4-acre Mixed-Use area and a 13-acre Hospital site.
An official timeline has yet to be established.
