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City of Merced·California

RFP - Development Opportunity for Former Sun-Star Site

Closes 11/30/2020$1.5M – $6MRequest for Proposal
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Description

The City of Merced is seeking a qualified developer to purchase and redevelop a 5.5‑acre former Sun‑Star site (approximately 32,000 sq ft building) located at 3033 G Street. The developer must submit a comprehensive conceptual development plan, economic pro‑forma, team qualifications, and related documentation. The City will sell the property on a cash‑only, “as‑is” basis with a minimum bid of $1.8 million and retain a right of reverter. The selected proposer will negotiate a Purchase & Sale Agreement or Disposition & Development Agreement and must commence construction within one year of closing. The project encourages mixed‑use, commercial, professional office, medical, retail, and multifamily components consistent with Planned‑Development zoning and the city’s general‑plan objectives. • Submit 5 printed copies + 1 electronic copy of a full development proposal by 11/30/2020. • Provide conceptual site plan, building massing, parking, phasing, and design concepts. • Include a detailed pro‑forma with construction budget, projected jobs, tax impacts, and financing strategy. • Demonstrate relevant experience, team resumes, and references; disclose any litigation with public agencies.

Attached files

The solicitation documents live at the source — open the bid source above to download them.

Contact

Frank Quintero(Director of Economic Development)

[email protected]

(209) 385-6826

Key dates

Opened
9/23/2020
Closes
11/30/2020

Last updated

Details

Type
Request for Proposal
Industry
Property Development
NAICS
531312
Solicitation №
092320

Budget estimate

$1,500,000 – $6,000,000

The RFP does not specify a fee for services; instead, the developer earns profit from the subsequent development of the site. Assuming a purchase price of $1.8 M and typical development profit margins of 15‑30 % on a total project cost of $10‑20 M, the developer’s net earnings could range from roughly $1.5 M to $6 M. This estimate accounts for construction costs, financing, and market risk.

AI estimate from the solicitation

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