Central Health issued the RFQ on Sept. 15 seeking developers interested in partnering with the district to redevelop the 14.3-acre site on 15th Street near I-35, which has been home to the hospital since 1970. Next year, the hospital will be replaced with the Dell Seton Medical Center at The University of Texas, currently under construction across 15th Street.
Central Health officials hope to see new mixed-use development with a medical research and service focus on the University Medical Center Brackenridge campus in downtown Austin.[/caption]Developers have until Oct. 21 to respond. Central Health will then issue a request for proposals, or RFP, before a final choice is made.
According to the addendum, Central Health intends to identify a "preferred master developer" by mid-2017.
The addendum includes answers to 61 questions submitted by prospective partners about the RFQ.
Central Health's master plan for the project calls for about 3.7 million square feet of new construction space with the potential for buildings between 35 and 40 stories tall. The public health district will lease the Brackenridge campus to a developer but will keep ownership of the property.
District officials hope to attract new office, hotel, retail and residential buildings. But they also want to partner with a developer that will seek new medical-related development, such as health care research or service facilities.
One element considered by Central Health executives to be key to the new development is a public market building and central plaza, which would sit adjacent to an overlook offering views of nearby Waterloo Park.
The addendum's questions, which are listed anonymously, vary in scope.
Several questions relate to the role Central Health will play in the partnership. One suggests the RFQ makes it seem like Central Health wants to be the developer of the project and is looking to hire a construction manager.
Central Health's response:
"While Central Health may participate in certain aspects of the project, including demolition, infrastructure financing, and certain marketing and tenanting activities for selected sites or buildings, we expect that the bulk of the effort will be undertaken by the master developer."
The response continues:
"The master developer will also pay a ground lease under terms to be negotiated with Central Health. However, with regard to the Public Market, Central Health intends to retain governance control to ensure alignment with its vision and mission. There is also consideration of using the Public Market building to accommodate office space needs for Central Health and other programmatic activities in alignment with Central Health’s public purpose. However, Central Health is open to ideas from the respondents as to how these relationships could be designed to best meet all interests."
The full addendum is available online.
Here are some additional highlights, including questions and Central Health's responses:
Question: What was the maximum height limit for the tiny portion of the northwest corner of the site located within the Capitol View Corridor?
Response: The northwest corner of the main parking garage at Red River and 15th streets is subject to the Capitol View Corridor and restricts that small portion of the site to about 125 feet in height. Due to slopes in that area, the height restriction may vary by a few feet. The city of Austin has completed a Capitol View Corridor determination that will be made available to shortlisted developers at the RFP stage.
Question: Do you expect the ground lease will be bifurcated by phase or by each site? Who will have approval rights over the assignment of the ground lease?
Response: The terms of the ground lease(s) will be negotiated with the selected master developer. However, Central Health does anticipate that the project will be subject to phasing requirements that will be reflected in the ground lease(s), and that Central Health will reserve some rights to approve any assignment of the ground lease or other development rights, consistent with typical private development deals on public land including other projects in Austin.
Question: Will the ground lease preclude any types of tenants? For example, for-profit health care.
Response: At this time, it is not anticipated that the ground lease would specifically preclude uses that are otherwise legally permitted. However, Central Health reserves the right to work with the selected master developer to determine whether any restrictions would be in the best interest of Central Health and/or the project.
Question: Are any buildings on campus on the historical register and should be planned to remain/repurposed?
Response: None of the buildings are on national, state or local historical registers.
