Progress Report to City Council on the Northeast

Progress Report to City Council on the Northeast Master Planned Community Presented by Ed Archuleta, P. E. , General Manager El Paso Water Utilities June 5, 2007

Today’s Presentation • Overview of EPWU Initiative – Goals – Major Steps – RFQ Status • RFQ/Bid Process – Scoring Mechanisms & Process – Characteristics of Qualified Teams – Six Qualified Teams • Next Steps

RFQ / Bid Process Goals • Initiate a major public/private project to address El Paso and Ft. Bliss growth • Create a significant and steady supply of parcels and lots • Give to El Paso a major new community based on Smart Growth and Sustainability • Obtain local involvement in creating community – in master plan and RFQ

RFQ / Bid Process Goals • Provide long-term infrastructure, amenities and community facilities • Leverage the value of a major parcel to attract high level of private investment • RFQ Screening for Experience and Minimum Qualifications • Sealed BID process to follow to insure best price and development standards • Development requirements and covenants included in sale

Major Steps • 2006 – – 1 st Qtr – Market Analysis and Ft. Bliss Growth Analysis 2 nd Qtr – Infrastructure and Parcel Analysis 3 rd Qtr – Conceptual Master Plan and Community Input 4 th Qtr – Issuance of RFQ to attract qualified bidders • 2007 – – 1 st Qtr – Adoption of Amended Northeast Master Plan 2 nd Qtr – Receipt of RFQ Submissions and Interviews 3 rd Qtr – Bid Process/Land Sale 4 th Qtr – Developer Approvals/Site Planning underway • 2008 – 1 st-4 th Qtr – Phase I Infrastructure underway • 2009 – 1 st Qtr – First residential communities underway

Evaluation Committee • • • Fermin Acosta, Chairman - PSB Richard Martinez, Vice Chair – PSB Pat Adauto, Deputy City Manager Alan Shubert, Acting City Engineer Ed Archuleta, General Manager – EPWU Nick Costanzo, Asst. Gen. Mgr – EPWU Technical and Legal Assistance: • Bob Andron, General Counsel • Syd Falk, Bickerstaff Heath Pollan & Caroom, L. L. P. • URS personnel

Scoring of Submissions • Organizational Strength and Capacity – 10 Points • Financial Requirements/Qualifications – 30 Points • Planning & Vision Qualifications – 20 Points • Local Participation and HUB – 10 points each (20 total) • Minimum Qualifying Score – 55 points

RFQ Status • Ten teams submitted • Eight teams interviewed on April 18 -19 • Six teams determined as qualified – Two national teams – Four local/regional

Characteristics of Qualified Teams • All teams are land developers – not homebuilders • Every team planning first priority to qualified local homebuilders • All willing to form partnerships, ventures, spec building, and flexible lot purchase terms with local builders and firms • Some national or regional builders for new products – retirement, etc.

Characteristics of Successful Teams • All utilizing regional or national planning staff/firms, but local professionals for services available in El Paso • All indicated it is most cost efficient to buy most of supplies locally • All committed to meet or exceed the minority/disadvantaged HUB goals

Six Teams Qualified • Cousins Properties – Atlanta • E 2 M/EPT - Dallas and El Paso • Forest City/Covington – Cleveland/ El Paso • Hunt Communities – El Paso • Scarborough Lane Development – Dallas and El Paso • Southwest Land Development – El Paso Presented in alphabetical order

Cousins Properties • Headquartered in Atlanta since 1962 with national development portfolio • Publicly traded REIT - invests $200 -$400 million per year in new development • Capabilities in land development, office, retail and mixed use • Willing to sell, advance lots, partner and profit-participate with homebuilders • Developing three master planned communities in Texas now • Locally is an investor in Verde with Bill Sanders

E 2 M / EPT • E 2 M, private equity firm in Dallas • EPT Land – El Paso – Richard Aguilar, Dr. David Masel and William Erlich • Holliday Fenoglio Fowler hired to access national capital markets • Anticipates 80% of homes by local homebuilders and 70% HUB compliance • Conde, Megacon and other local firms on team

E 2 M / EPT • E 2 M is completing large master planned community in Florida-Hammock Dunes • EPT is completing 1, 700 residential units on land purchased from EPWU • Vision – use national marketing, mix of product, Energy Star, retirement potential • Vision includes multiple price points, small neighborhoods, family amenities, and low energy use design.

Forest City / Covington • Forest City is $9 billion NYSE company with development in 25 states • 50/50 with Covington Capital on this project – previously partnered on Paseo Del Estate in El Paso and Mesa del Sol in Albuquerque • National commitment to HUB and minority participation in all projects • Willing to share risks with homebuilders and create builder education programs

Forest City / Covington • In depth experience in public/private partnerships – Gladden Farms in Tucson and Stapleton in Denver • Vision – design guidelines, Energy Star, new urbanism, Stapleton quality • Now perceive El Paso as a growth market and part of their southwest strategy

Hunt Communities • Based in El Paso since 1947, four generations of family, strong financials • Full-service investment, development, management, marketing capabilities • Experienced in funding mechanisms and working with City and EPWU • Committed to solicit primarily from local suppliers and builders • Would be focused on “horizontal development” – with building by others

Hunt Communities • Applying new urbanism/smart growth to El Paso: Cimarron and Paseo del Este • Project management capabilities: over 19, 000 units of military related housing • Vision: hike and bike system, large park areas, comprehensive infrastructure • Kimley-Horn designated as designer – – original Northeast Master Plan familiar with site involved in other Hunt Communities creates design guidelines

Scarborough Lane Development • Partnership Entity – Scarborough Lane Development of Dallas – Paul Foster, CEO, Western Refining – Teamed with Bohannon Development Corporation • Funding – Paul Foster – Bank of the West – other partners • Many local and minority professional firms on team – Quantum Engineering Consultants – Local builders most important for project – Potential for 1 -2 regional players

Scarborough Lane Development • Comprehensive visual presentation • Vision: new town centers, utilization of waterways, connected neighborhoods, themed entry ways, public amenities • Experience: 3, 200 acre Travis Ranch near Dallas – 1, 200 units in 2+ years • Carter-Burgess designated as designer – – Fort Worth Experienced in master planned communities Design guidelines Town center design

Southwest Land Development • Associated with Foster-Schwartz Companies – based in El Paso 40 years • Committed to local homebuilders and to HUB • Fugleberg Koch Architects, Orlando, currently designing Hueco Club Estates • Bohannon Development- development partner • Rocky Mountain Mortgage, Chase Bank and Wells Fargo financial partners

Southwest Land Development • Vision: adapt new urbanism principles of Hueco Club Estates to the site • Extensive experience in El Paso, with EPWU and with non-profits

Summary • Six teams met criteria: – – – Organizational Strength and Capacity Financial Requirements/Qualifications Planning & Vision Qualifications Local Participation and HUB Minimum Qualifying Score

Six Teams Qualified • Cousins Properties – Atlanta • E 2 M/EPT - Dallas and El Paso • Forest City/Covington – Cleveland/ El Paso • Hunt Communities – El Paso • Scarborough Lane Development – Dallas and El Paso • Southwest Land Development – El Paso Presented in alphabetical order

Next Steps

Next Steps • Notification of qualified teams – May 9, 2007 • Finalize appraisals, survey and bid document – May 31, 2007 • PSB sets minimum bid price – June 13 2007 • Request for bids – June 14, 2007 • Receipt of bids – July 31, 2007 • PSB recommends award August 2007 • City Council awards sale of Parcel MPC September 2007

Questions & Comments