REDEVELOPMENT:

VARIETY THEATRE COMPLEX

Request for Proposal

Stephanie Turner, Real Estate Associate T: 866-861-4761 Ext 212, C: 216-256-6939

sturner@fass-res.com

Akil Hameed, Broker 866-861-4761 (O-TF), 330-405-0545 (O-L)

ahameed@fass-res.com

FASS Real Estate Services 3705 Lee Road

Shaker Heights, Ohio 44120

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REQUEST FOR PROPOSALS (RFP) FOR REDEVELOPMENT OF THE VARIETY THEATRE COMPLEX

Cleveland, Ohio October 26, 2020

INTRODUCTION

The Variety Theatre LLC is seeking to redevelop the historic Variety Village Complex (VTC) in Cleveland

Ohio. The VTC is approximately 35,000 square feet. It features a 26,000 square foot theatre and a

balcony that holds approximately 350 seats; 7500 square foot of 10 storefronts and 10 second floor

apartments. The 1st floor storefronts can also be integrated into the 2nd floor apartments for live /work

space units; See Floor Plans, Appendix A;

This Request for Proposals (“RFP”) provides details about the VTC and the surrounding areas,

establishes the goals for development and the process by which a developer will be selected.

One of Cleveland’s historic gems is slated to return to life in the near future, bringing with it revitalization

and economic vitality for the diverse Westown neighborhood: The VTC is located in the Variety Village

District at: 11801-11825 Lorain Avenue. The location’s excellent freeway access to I-90 and I-71 at West

117th, is also equidistant between Detroit-Shoreway’s Gordon Square Arts District and Kamm’s Corners

commercial center. See Map Appendix B. In 2019 a 95 space parking facility was completed across the

street, from the VTC which is municipally owned.

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The parking facility was designed and built with adherence to state of the art green infrastructure technology utilizing specialized landscaping and bio swales to reduce storm water run-off. The facility was featured at the City of Cleveland’s Annual Sustainability Summit in September of 2019. See Parking

Facility Appendix C.

Qualifications and supporting materials must be received by Monday, February 1, 2021.

Tours of the building can be arranged upon request.

Variety Theatre LLC seeks to identify a developer or development team that will that provides a new or

adaptive reuse of the complex that supports an economic development vision for the community.

Incentives in place for the re-development of the VTC includes 2.5MM grant commitment from Cuyahoga

County Department of Development based on job creation; and a $335.000.00 grant from the Ohio

Facilities Construction Commission for an arts & culture component. Interested developers please submit

BUILDING INFORMATION LOCATION AND DESCRIPTION

The Variety Village District is the historic Variety Theatre Complex, located at 11817 Lorain Avenue in

Cleveland. It is located just west of the intersection of Lorain Avenue and West 117th Street, which

connects directly to the onramp of I-90 going east into Cleveland. Just north of the freeway along West

117th is a major chain regional retail shopping area including a Giant Eagle, Target, and other stores and

fast-food restaurants. In addition, to the east of the site, along Lorain Avenue at West 106th Street, is a

smaller neighborhood shopping center known as Westown Square, containing a Save-A-Lot, Shoppers

World, smaller shops and medical services. Also along Lorain Avenue and south on West 117th, within

the immediate area, are several central American, Mexican and Asian

restaurants, middle eastern groceries, family dental offices, legal services, a fabric store and

bike shops serving regional clientele, and cafes and convenience stores, among other uses.

There is a fair amount of vacancy on the street, which is available for retail expansion

surrounding the Variety Village catalytic area.

Significant public and private support exceeding 1 MM in support has been invested in the VTC including

the restoration and fabrication/erection of the historic marquee and blade sign; installation of updated

electric panels throughout the complex, roof stabilization in 2016; and 2.5 Million in roadway replacement

new traffic signalization, decorative lighting, street trees and public art . Preliminary construction drawings

and an engineering envelope analysis of the VTC was completed in 2016. .

In 2017, the VTC won a national competition in “THIS PLACE MATTERS” supported by Mike Wolfe, star

and creator of History Chanel’s “American Pickers” program, and the National Trust for Historic

Preservation.

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BUILDING HISTORY

The Variety Theatre Complex is listed on the National Register of Historic Places. Its unique and ornate

Spanish-Gothic architecture was designed by noted Cleveland architect Nicola Petti. The theatre opened in

1927 as a vaudeville and silent films theatre. From 1927 to 1954, it was owned by Warner Brothers as a

first-run Hollywood movie theatre. It remained a movie theatre throughout the 1980s, and in the 1990s the

theatre hosted many rock groups including Bono and U2, Stevie Ray Vaughn, REM and Metallica. The

complex includes 10 storefronts with a total of 7,500 square feet of rentable space, and 10 second floor

apartments. It also features a 20,000 square foot theatre, including stage, orchestra pit, dressing rooms,

plus a 350-seat second floor balcony, and a VIP apartment that was reserved for vaudeville stars and

celebrities.

WEST BOULEVARD NEIGHBORHOOD

The West Boulevard neighborhood is approximately 2.9 square miles and the area is home to some of

Cleveland’s most stable housing stock, stately West Boulevard leads the pack of affordable living options.

It is near everyday amenities and shopping-from boutiques to big box- and all are located close to I-90, I-71

and public transit. Food lovers can visit authentic ethnic eateries, which serve good food with real ethnicity

and even classic American fare. It also celebrates community at Halloran Park during the Summer Concert

Series and feature ice skating at the Winter Frolic.

West Boulevard is a vibrant, historic and culturally diverse area with architecture inspired from the early 20th

century. Residents enjoy tree-lined residential streets, two nationally recognized recreation centers and

park facilities. Unique small businesses along Lorain Avenue Corridor include locally owned imports food

markets and popular cafes that serve international cuisines. Strategically located close to all major

highways, approximately 300 manufacturing corporations are located in the area.

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The most recent development in the surrounding area is the Madison Industrial Park which is located at W.

108th and Madison. The Madison Industrial Park (Building A) is the first of a 10 acre business district. The

facility is a 168,750 square foot that will include two (2) industrial spaces of 60,000 square foot each.

PROJECT REQUIREMENTS

USES

The Variety Theatre LLC welcomes, creative transformative concepts for the redevelopment of the Variety

Village District that complement the neighborhood and will catalyze additional development in the area.

COMMUNITY INPUT

The input of the community including business owners and other stakeholders is imperative to the

successful development of the Variety Village District. Developers are asked to outline a plan for

effectively engaging the community to shape the redevelopment concept(s). The outline should include

your approach to effective community engagement for this project and your experience successfully

navigating this process with previous projects.

TIMING

A primary goal of The Variety Theatre LLC is to select a developer by Q1 2021.

SUBMISSION REQUIREMENTS

All proposals submitted for consideration shall include, but not limited to, the components identified below.

If development teams consist of more than one company, please provide the requested qualifications for all

companies.

DEVELOPMENT TEAM INFORMATION

Provide a brief history and overview of your company and your experience with urban redevelopment

projects. Identify key members of your development team, their proposed roles for this project, and their

qualifications and experience. Summarize the team’s past experience working together, identify the

principal person who will speak for the development team and any other key participants who will be

involved in negotiating the terms.

RELEVENT DEVELOPMENT EXPERIENCE

Describe at least three recent urban development projects that your company has successfully completed

or that are currently underway. Include project summary, location, project, cost-funding sources,

development challenges and solutions, and municipal references. List development team members and

their roe in each project.

FINANCIAL CAPACITY

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Outline your company/team's ability to purchase the physical asset and finance the development project. Include commitments of equity and debt capital and any public (city, county, state or federal) financial assistance necessary for the project to proceed.

PROPOSED CONCEPT(S)

Provide a narrative description of the proposed development concept(s), including the following:

• Overall vision and proposed user(s) for the Variety Village District;

• Estimated capital investment;

• Description and evidence of how the concept(s) address existing market conditions;

• Plans for existing traffic needs; and

• Discussion of pedestrian, sustainability, greenspace and other elements of the concept(s).

PROPOSED PROCESS AND TIMELINES

The Variety Theatre LLC would like to reach its full development potential quickly. Please describe the

anticipated timelines for fully developing the Variety Village District, specifically identifying dates for

commencement and completion of key project activities including, but not limited to:

• Building, market, financial, or other due diligence;

• Securing financing commitments;

• Design development, pre-construction planning etc.;

• Permitting and approvals;

• Construction; and

• Occupancy.

If the proposed project involves phasing, please be specific regarding the above timelines for each phase.

ECONOMIC IMPACT

Please describe the anticipated economic and fiscal impact of the proposed development concept,

including but not limited to:

• Projected capital investment;

• Projected new employment and payroll anticipated to result from the project:

• Discussion of how the project could catalyze additional nearby development.

MINORITY BUSINESS ENTERPRISE INCLUSION

The Variety Theatre LLC encourages the participation of minority-owned business enterprises in the

development of the Variety Village District. Please describe any efforts you have made on past projects to

include minority-owned businesses and any steps you intend to take to include minority-owned businesses

for this project.

DEVELOPMENT AND USE AGREEMENT

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At the conclusion of the evaluation process, The Variety Theatre LLC anticipates the announcement of

the selected developer(s) and outlines roles, responsibilities and timelines for completing the

development. Broadly identify any development agreement terms that you would require or that would not

be acceptable.

EVALUATION CRITERIA

The goal of the RFP process is to identify the developer or team possessing the vision, experience and

financial resources to carry out a development in scope and which is best suited for the neighborhood. It

is anticipated that submittals will be evaluated by a review team based upon, but not limited to the criteria

below:

Developer Qualifications

• Recent history of successful, highly-impact urban development projects

• Access to sufficient equity and debt capital

• Commitment to long-term operation of the building

• Ability to navigate development hurdles

Development Concept

• Preservation of building’s historic character

• Compatibility with surrounding uses of the neighborhood

• Incorporation of the community with a focus on the Theatre

• Potential to catalyze nearby investment

• Incorporation of greenspace

• Focus on sustainability

• Ability to stand the test of time

Development Approach

• Strategy for effectively soliciting and incorporating stakeholder input

Economic, Fiscal and Community Impact

• New job and payroll creation

• Capital Investment

• Synergy with neighborhood businesses

• Benefit to residents

• Potential to attract visitors, new residents and new business

• Potential to generate City income and payroll tax

Development Schedule

• Timeline to begin and complete construction identifying relevant milestones

EVALUATION PROCESS AND TIMLINE

It is expected that the developer(s) or developer teams whose submissions best meet the evaluation

criteria established above will be selected for an interview with review team.

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The following is the anticipated schedule for the evaluation and selection of a development team.

Milestone Date

RFP Released October 26, 2020Deadline to Respond February 1, 2021

Finalists Notified Q1 2021

Tours of the building can be arranged by request by contacting Stephanie Turner, Agent, FASS Real Estate

Services at sturner@fass-res.com.

Variety Theatre LLC intends to adhere to this selection process but reserves the right to reject all

submissions or deviate from the process as necessary to accomplish the goal of selecting the most

qualified development(s) for this important property.

LEGAL STATEMENTS

CONFIDENTIALITY

Variety Theatre LLC will maintain and guarantee the confidentiality during the selection and review process

of financial information or disclosures by the developer(s) or prospective users.

RIGHTS RESERVED BY VARIETY THEATRE LLC

Variety Theatre LLC reserves the right to reject any and all submittals, to negotiate with proponents, to

change without notice the Request for Proposals and evaluation process, and to waive any informality in

submissions whenever same is in the interest of Variety Theatre LLC and its development objectives.

SOLICITATION AND TRANSPARENCY POLICY

Proposers may discuss their proposal with the FASS Real Estate Services Team and only under the

direction of the FASS Real Estate Services Team with members of the Variety Theatre LLC board. The

policy is intended to create a level playing field for all Proposers and assure the integrity of the selection

process.

SUBMISSIONS INSTRUCTIONS

Development(s) teams should submit 7 identical hard copies, one unbound had copy and one electronic

copy. Packages must clearly label “Redevelopment Proposal for the Variety Village District. Qualifications

packages and supporting materials must be received by Tuesday, December 15, 2020 to be considered.

Packages should be addressed to:

Akil Hameed, CEO & Broker Stephanie Turner, Real Estate Associate

FASS Real Estate Services FASS Real Estate Services

3705 Lee Road 3705 Lee Road

Shaker Heights, Ohio 44120 Shaker Heights, Ohio 44120

866-861-4761 216-256-6939

The electronic copy should be emailed to sturner@fass-res.com.

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Appendix A

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Appendix B

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APPENDIX C

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Who We Are

FASS Real Estate Services (FASS) is a licensed, Greater Cleveland-based boutique

Real Estate Brokerage firm, specializing in Property Management, Real Estate Sales

and Leasing, Real Estate Consulting, and Commercial Real Estate and

Development.

Founded in 2006, FASS began as a simple concept: to help accidental landlords,

investors and renters seamlessly connect to quality housing for investment

purposes, or a great place to live, and within a short period of time. As a company,

we provide a variety of real estate services across 4 primary service units:

Residential, Commercial, Property Management, and Consulting.

FASS Premier is the luxury real estate unit of FASS Real Estate Services.

Today, FASS represents clients from over 20 states, and countries including China,

Japan, Australia, Singapore, Malaysia, Canada, and the UK.

To learn more, visit us online at www.FASS-RES.com Akil Hameed, Broker 866-861-4761 (O-TF), 330-405-0545 (O-L)ahameed@fass-res.com

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