Request for Proposals: Economic Development Consultant

April 5, 2023

The DowntownDC BID (DBID) and the Golden Triangle BID (GTBID) are engaging in a process with multiple stakeholders and regional and national experts to gather critical information for the creation of high-impact recommendations to transform the District’s downtown for the future. The process will culminate in the “Reimagining the District of Columbia’s Downtown Action Agenda” (Action Agenda) report, which will make recommendations to the District for public investment, policy changes, and repurposing of government property to spur private sector investment and engagement.

The Action Agenda will build on the themes of Mayor Muriel Bowser’s DC’s Comeback Plan: 2023 – 2027 Economic Development Strategy and recommend several high-impact public and private investments, policies, and reuse of existing buildings to transform the downtown, ensuring it remains a strong economic and cultural engine. The project is expected to be a model for modern downtown business districts across the country.

As part of this process, the DBID and GTBID are inviting all qualified firms to respond to this Request for Proposal for an Economic Development Consultant. We are seeking a qualified firm to provide historical, economic, public infrastructure and investment research, data analysis, and economic development/strategy services to be integrated into the creation of the Reimagining the District of Columbia’s Downtown Action Agenda for Washington, DC led by a partnership between the BIDs.

DOWNLOAD THIS RFP AS A PDF or see it below.

DOWNLOAD THE Q&A FROM THE APRIL 12 VIRTUAL MEETING

Please send any questions to:

• Gerry Widdicombe, Director of Economic Development, at gerry@downtowndc.org
• Maria Espinoza, Planning Manager, at maria@downtowndc.org

DOWNTOWNDC AND GOLDEN TRIANGLE BUSINESS IMPROVEMENT DISTRICTS
REQUEST FOR PROPOSAL FOR AN
ECONOMIC DEVELOPMENT CONSULTANT
FOR THE
REIMAGINING THE DISTRICT OF COLUMBIA’S DOWNTOWN ACTION AGENDA

EDC RFP Timeline

April 5, 2023: Release of Economic Development Consultant RFP
April 12, 2023, 2:00 to 3:00 p.m.: Virtual meeting to answer RFP questions
April 26, 2023, 5:00 p.m.: Proposal submission due date
May 3, 2023, 1:00 to 6:00 p.m.: Interview times for selected consultants
May 5, 2023: Release of Request for Best and Final Proposal (if necessary)
May 10, 2023, 5:00 p.m.: Best and Final Proposal deadline (if necessary)
May 15, 2023: Consultant selection
May 30, 2023: Economic Development Consultant Kick-off meeting

Introduction

The Golden Triangle and DowntownDC BIDs represent the central core of the District of Columbia and the Greater Washington region with significant assets. The area has been an economic engine for the District and the region, yet it is facing an existential crisis. Commercial office space, the area’s lifeblood, is likely to continue to struggle and potentially shrink for the foreseeable future due to the effects of COVID-19 and broader shifts with hybrid and remote work that are unlikely to change. These shifts are causing a significant decline in DC property and other tax revenues. This is a critical juncture for the future of Washington, DC’s downtown. It is unparalleled in our lifetimes, akin to the scale of work of the mid-20th century that led to today’s downtown. Charting the course for the future is not simply addressing cyclical challenges of a local DC or regional DC-Maryland-Virginia economy as in the past. It is a once-in-a-century opportunity to reimagine DC’s downtown where leaders and stakeholders have to look at new ways to invest and transform downtown for the future.

As such, the DowntownDC BID (DBID) and the Golden Triangle BID (GTBID) are engaging in a process with multiple stakeholders and regional and national experts to gather critical information for the creation of high-impact recommendations to transform the District’s downtown for the future. The process will culminate in the “Reimagine the District’s Downtown Action Agenda” (Action Agenda) report, which will make recommendations to the District for public investment, policy changes, and repurposing of government property to spur private sector investment and engagement.

The Action Agenda will build on the themes of Mayor Muriel Bowser’s Five-Year Economic Development Strategy and recommend several high-impact public and private investments, policies, and reuse of existing buildings to transform the downtown, ensuring it remains a strong economic and cultural engine. The project is expected to be a model for modern downtown business districts across the country.

The DowntownDC and Golden Triangle BIDs selected the Project Management Team of Trueblood.city, Kyanite Partners, Justice Sustainability Associates (JSA), and IDEO (“Project Manager”) to lead the seven-month process and draft the Reimagine the District’s Downtown Action Agenda.

As part of this process, the DBID and GTBID are inviting all qualified firms to respond to a Request for Proposal (RFP) for an Economic Development Consultant (EDC). We are seeking a qualified firm to provide historical, economic, public infrastructure, and investment research, data analysis, and economic development/strategy services to be integrated into the creation of the Reimagine the District’s Downtown Action Agenda for Washington DC led by a partnership between the DBID and GTBID.

Economic Development Consultant Overview of Work

The EDC will play a pivotal role in the creation of the Action Agenda by conducting research, providing the analysis, creating content, and working with the DBID, GTBID, and the Project Manager to make recommendations for the Action Agenda.

The RFP details are outlined in the following pages, which include the scope of work, project timeline, proposal requirements, budget, evaluation process, and selection criteria. Please review them carefully and ensure that your proposal addresses all of the RFP’s requirements.

We are looking for an EDC partner who can deliver the project on time and within budget while also providing innovative ideas and productive solutions to enhance the Action Agenda outcome. We recognize that some parts of the Scope of Work may require a project lead to take on sub-contractors or partners.

We ask that you submit your proposal by 5:00 p.m. (EST) on Wednesday, April 26, 2023. Late proposals will not be considered. If you have any questions regarding the project or the bidding process, please do not hesitate to contact us. We will host a public question and answer session and will answer all questions received with a public posting online. We are eager to have an EDC partner join the team and look forward to receiving your proposal.

The EDC’s work will include researching and summarizing the history of the DowntownDC and Golden Triangle economies, development, and planning; researching and summarizing the history of downtown and the District’s economic development investments; researching and analyzing existing economic sectors and social infrastructure; projecting future conditions for economic sectors and social infrastructure, and analyzing up to 60 potential interventions (financial investments, policies, and projects) of which a targeted number will be the Action Agenda’s final recommendations. The EDC will work closely with the two BIDs and the Project Manager to integrate the inputs from the community visioning activities and stakeholder engagement process to ensure a collective vision is formed for the downtown area and that the analysis captures all necessary information related to this process.

Background of the DowntownDC BID and Golden Triangle BID

The adjacent DBID and GTBID areas in Washington, DC are a major economic and cultural center of the District, the region, and the nation (see map in Attachment One). The federal government, District government, private sector companies, educational institutions, national associations, and art, cultural, and entertainment venues are located in this combined area. These organizations host approximately 255,000 jobs occupying approximately 134 million square feet of developed buildings, of which approximately 109 million square feet, or 81%, is office space. Of the approximately 87 million square feet of privately-owned office space, approximately 17 million square feet, or 19.5%, is vacant as the result of significant recent deliveries of office space, longer-term trends, and the adoption of hybrid work schedules caused by the pandemic. In addition, only approximately 43% of office workers in privately-owned buildings are in the office as of February and March 2023, compared to early February 2020. The data on the percentage of government workers in the office is not available. Many office research firms expect the privately-owned office vacancy rate and square feet to rise over the next two years due to new office deliveries (where the leasing is from office tenants moving from other existing downtown or DC office buildings). In contrast, the two BID areas have only five million square feet of residential properties, with just more than 10,000 residents with 7,000 residential units in the DowntownDC BID and 36 residential units in the Golden Triangle BID, with 163 units currently under development. Lastly, the ground floor vacancy rate in the two BIDs is north of 20% as many retailers have closed due to the lack of office worker customers.

As a result, the property tax revenues from large office buildings have declined by an estimated $120 to $180 million per year beginning in fiscal year (FY) 2022 due to an initial reduction in assessed values by the Office of the Chief Financial Officer of 9.3% and subsequent appeals that are estimated to reduce the assessments by another six percent — a total reduction in large office building assessments of 15%. Many office market observers expect large office building assessments to decline further in the next two years, causing another substantial decline in large office building property tax revenues. In the two BIDs, their net fiscal impact (estimated District revenues less estimated District expenditures) has declined by almost $300 million per year from FY 2019 to FY 2022 — from $1.15 billion to $856 million. In FY 2019, the two BIDs generated approximately 22% of the District government’s local fund revenues and received 10% of local fund expenditures. In FY 2022, these percentages were 19% and 8%, respectively.

Over the next eight months, the BIDs will be embarking on a comprehensive effort to reimagine the District’s downtown area. This effort will include a reassessment of downtown’s assets and recommend several high-impact investments, policies, and repurposing of existing buildings to transform Downtown into a diverse, equitable, vibrant, and economically and fiscally sustainable area that is welcoming to all DC residents and businesses and is a model for modern downtown business districts.

The Action Agenda will build on the themes of Mayor Bowser’s DC’s Comeback Plan: 2023 – 2027 Economic Development Strategy that was recently published. We are seeking an Action Agenda that aligns with DC’s Comeback Plan and brings forward initiatives, plans, and proposed actions for implementing the larger themes and initiatives in DC’s Comeback Plan.

DC’s Comeback Plan: 2023 – 2027 Economic Development Strategy

DC’s Comeback Plan is the District’s five-year economic development strategy for 2023-2027. DC’s Comeback Plan focuses on stimulating DC’s tax base, supporting businesses, and helping neighborhoods thrive. Strategy goals include attracting new neighborhood residents, jobs creation, and overall population growth. It specifically calls for a Downtown Action Agenda.

The Action Agenda will support DC’s Comeback Plan through its targeted research and analysis, stakeholder engagement, and tailored recommendations to help DC strengthen its economy and vibrancy as a diverse home for businesses and residents alike.

Downtown Study Area

The geographic area covered in the Action Agenda is the same as the downtown area mapped in DC’s Comeback Plan: 2023 – 2027 Economic Development Strategy, as shown in Attachment One. Analysis is expected for this area with all data shown for four geographies: DBID, GTBID, Rest of Downtown, and All of Downtown (the sum of the first three geographies). For some research and analysis sections, it may make sense to include other geographies.

Action Agenda Timeline, Including Economic Development Consultant (EDC) RFP

This is a preliminary timeline and is subject to change for a variety of reasons, including the EDC timeline as required by this RFP.

February 2023: Selection of Project Management Team
April 5, 2023: Release of EDC RFP
April 26, 2023: EDC proposals due
May 15, 2023: Selection of EDC
May 2023: Begin engagement with the EDC
July 2023: Completion of EDC history, economic and social infrastructure research and analysis
September – October 2023: Completion of analysis of Potential Actions/Interventions.
Mid-October 2023: Finalize the list of Recommended Actions and Implementation Timeline
November 2023: End engagement with the EDC
November 13, 2023: Release of the Downtown Action Agenda report

Throughout this timeline, there will be extensive engagement with a broad range of stakeholders. The EDC may provide joint presentations with the PM on the final Action Agenda to stakeholders.

Project Team

The Action Agenda will be produced through a partnership between the DowntownDC Business Improvement District (DBID) and the Golden Triangle Business Improvement District (GTBID). The Project Team includes the Federal City Council, the Project Manager, and the Economic Development Consultant.

DowntownDC Business Improvement District (DBID)

The DowntownDC BID was founded in 1996 (and began operations in 1997) and is a private non-profit organization that provides cleaning services, safety services, and homeless services as well as capital improvements, research, and planning that keep the BID area clean and safe as well as economically and environmentally strong and accessible. The DowntownDC BID is a catalyst, facilitator, and thought leader in diversifying the economy, promoting public/private partnerships, and enhancing the DowntownDC experience for all.

The DowntownDC BID encompasses 138 blocks (just over one square mile), stretching from the White House to Union Station, and the National Mall to Massachusetts Avenue. Generally, these boundaries are 16th Street to the west, North Capitol Street to the east, Constitution Avenue to the south, and Massachusetts Avenue to the north. The DowntownDC BID abuts the Golden Triangle BID at 16th Street and Black Lives Matter Plaza NW.

The Golden Triangle Business Improvement District (GTBID)

Formed in 1998, the Golden Triangle Business Improvement District enhances Washington, DC’s central business district, the 44 square-block area stretching from the White House to Dupont Circle. Home to almost 6,000 businesses before the pandemic, GTBID provides a clean, safe, and vibrant environment for hundreds of thousands of workers, residents, and visitors through its place management programs and economic development. GTBID serves as a resource for existing and new businesses locating to the area by providing information on available incentives, support with regulations, and hyperlocal data and insight.

Additionally, Golden Triangle Business Improvement District encourages economic development through capital projects, public art, sustainability initiatives, and events, often through bringing together public and private partners and leading long-term efforts like the Penn West Equity and Innovation District. The Golden Triangle is also the first BID in the world to be certified through the U.S. Green Building Council’s LEED for Communities program, achieving LEED Platinum certification.

Federal City Council

The Federal City Council (FC2), under the leadership of former District Mayor Anthony Williams, will be leading the Action Agenda’s engagement with national leaders and experts. The Federal City Council is a nonprofit, nonpartisan, membership-based organization dedicated to the advancement of civic life in Washington, DC. The Federal City Council team consists of Anthony Williams, CEO and Executive Director of FC2, Kevin Clinton, Chief Program Officer, and Becky Straus, Director of Economic Initiatives

Project Manager

A group of four teams form the Project Manager Team under the direction of Andrew Trueblood.

Trueblood.city

Andrew Trueblood of Trueblood.city leads the Project Manager team for the Action Agenda. He will be involved in every task, including stakeholder engagement. He brings more than 15 years of DC experience, including as the Director of DC’s Office of Planning from 2018 to 2021 and Chief of Staff at the Office of the Deputy Mayor for Planning and Economic Development from 2014 to 2018. Most recently, he supported Mayor Bowser’s Five-Year Economic Development Strategy around downtown and housing policies, is completing a retrospective report for the NoMa Parks Foundation on its 10-year anniversary, serves as a senior advisor for housing with the DC Policy Center, and supports land use and housing research as a nonresident fellow at the Urban Institute. He also sits on the DC Public Library Board of Trustees.

Kyanite Partners

Rana Amirtahmasebi, principal of Kyanite Partners, is the Associate Project Director for the Action Agenda. Kyanite Partners is a people-centered economic development company based in New York City. A long-time resident of Washington D.C, Rana previously worked at the World Bank’s Urban Development Unit and has extensive experience with downtown recovery and rejuvenation plans around the world. With a distinct and inclusive perspective on economic resilience and urban revitalization, Kyanite Partners leadership and junior staff will support Andrew and Rana by providing project management services, research, and writing.

Justice & Sustainability Associates (JSA)

Mencer Donahue “Don” Edwards, principal and CEO, Donzell Robinson, principal and COO, and Samantha Haas, associate, are the primary staff for Justice & Sustainability Associates, LLC (JSA). JSA is an alternative dispute resolution firm founded in the District of Columbia. JSA specializes in community development mediation — the design and implementation of large and small group, multi-stakeholder processes that combine impartial facilitation and mediation, information, and education with stakeholder engagement. JSA’s mission is to help community and neighborhood residents, government agencies and officials, businesses and non- governmental organizations reach just and sustainable agreements about land uses, especially urban land uses. JSA will be running the engagement meetings.

IDEO

Katie Soven, executive design director, and Evanne Holloway, design director, are the leads for IDEO. IDEO is an award-winning global design and innovation company that has been creating positive, disproportionate impact through design and process design for 40 years. IDEO helps organizations and places imagine and realize new futures, uncover opportunities for growth, build new capabilities, and make well-informed decisions by getting tangible, learning, and iterating. In their work across sectors, scales, and contexts, they have learned that the human factor is the No. 1 reason most initiatives oriented around a new future fail. It is also the No. 1 reason successful innovation initiatives succeed. You could say, humans are both the problem and solution. IDEO will be designing and running a joint visionary kickoff meeting.

Qualifications

The ideal Economic Development Consulting firm has a demonstrable background in research, economic, and investment analysis, urban planning, and communication to effectively research downtown economic and development history, research District economic development investments, research and analyze current economic and social infrastructure, project future economic and social conditions and propose interventions (financial investments, policies, and projects) that will lead to an Action Agenda that leads the Recovery and Reimagination of the District’s Downtown.

We are looking for a firm that has the following qualifications:

• Relevant experience:
  • Several years of experience in economic development consulting, preferably working with communities of similar size and demographics. Experience in conducting comprehensive economic development and real estate research and analysis, identifying priority sectors and target industries, real estate trends, and developing economic development strategies.
  • Experience working on projects in downtown DC and other large U.S. cities.
• Planning skills. Ability to think strategically and develop a comprehensive economic development strategy/action agenda that aligns with the community’s goals and objectives. Ability to identify potential investment opportunities and partnerships to support the implementation of the Action Agenda’s recommendations.
• Communication skills. Excellent written and communication skills with the ability to present findings and recommendations to key stakeholders including to elected officials, business leaders, and community members.
• Knowledge of and analytical experience and capabilities regarding key downtown economic sectors. Knowledge of various sectors, including office, multi-family residential, hotel, tourism, culture, entertainment, retail, and universities.
• Knowledge of real estate markets and funding sources. Knowledge of real estate markets and funding sources that could support the implementation of the Action Agenda’s real estate strategy, such as tax credits, grants, and loans. Further, familiarity with Washington DC and the federal government’s economic development programs, such as Tax Increment Financing and tax abatements would be a plus.
• Knowledge of and analytical experience and capabilities regarding urban/downtown social infrastructure. Knowledge of parks and public space planning and funding, homeless services infrastructure, childcare, and transportation.
• Familiarity with Washington, DC and its economic and social landscape.
• Experience with Post COVID-19 economic development trends and planning in cities of similar size would be a plus. Knowledge of best practices, trends, and effective strategies to tackle the unique challenges and opportunities presented by the post-pandemic context.

Scope of Work

The EDC will conduct historical research, data analysis, participate in the stakeholder engagement process, and collaborate with the Project Manager and the two BIDs on generating interventions and recommendations for the study area.

The EDC’s research, analysis, and findings will inform the development of the Action Agenda, which the Project Manager team will write. The ultimate goal is to provide a pathway for the District’s downtown to overcome the challenges it faces in the aftermath of COVID-19 and longer-term trends. We seek research, analysis, and strategies that will serve as a framework for economic development for the decades to come. The EDC will coordinate closely with the PM team and the BIDs, take part in the stakeholder engagement process, and schedule their own in-depth interviews to gain knowledge of different sectors listed below.

The EDC will deliver the following “deliverables.” Please outline your approach and methodology to each deliverable; explain the data tools and sources you plan to use and the people you would like to interview.

The BIDs are open to suggested deliverables other than the deliverables listed and will finalize the scope of work with the selected consultant prior to the contract start date. The BIDs will evaluate these modifications and suggestions as part of the consultant’s understanding of the project and proposed approach.

Deliverable 1: Stakeholder Interviews

We aim to conduct this project with a significant stakeholder engagement component. Our goal is to ensure the voices of all stakeholders who can impact or are impacted by the interventions be heard. As such, the Project Manager team created an “Engagement and Consensus Plan” (ECP), which outlines engagement with audiences across a spectrum of interests and expertise, from national audiences to existing and future stakeholders. The ECP delineates specific actions and tools for the entire consensus-building process including stakeholder engagement led by the PM and Federal City Council, the creation of targeted webinars, and engagement with the BIDs Steering Committee, among others.

The PM will work with the EDC on engaging and attending meetings with specific stakeholder groups, as well as share key information gathered from others that are relevant to the work of the EDC.

We expect the EDC to deliver the “deliverables” listed below as the result of their research, analysis, and input from the many stakeholders of the Action Agenda. To this end, the EDC must attend all four focus group discussions organized by the Project Manager. In addition, the EDC must arrange the necessary in-depth interviews with experts to gain knowledge about different sectors mentioned below or any other sectors deemed relevant during the engagement process. Please include in a proposal the number of interviews you plan for each deliverable, including the names of individuals and firms/organizations.

Deliverable 2: History of Downtown Economy, Development and Planning, Investments, and Public/Private Partnerships

The EDC will research and present the history of the downtown economy, development, and planning broken up into the following time periods: the founding of the city to World War II, World War II to Home Rule for DC, Home Rule for DC to 1998, and 1999 through spring 2023. We further ask that the EDC research and present the history of District economic development investments and public/private partnerships in downtown and the rest of DC since the Home Rule adoption in 1973.

In the proposal, consultant teams should list their expected information sources and the people they would propose to interview.

Deliverable 3: Analysis of Economic and Demographic Trends

Conduct an analysis of economic and demographic trends at the national, regional, District, and downtown levels. Identify any similarities and discrepancies in economic growth, economic trends, population growth, and industry sector type between each geographic level.

In a proposal, consultant teams should describe their methodology and data sources for this work.

This task includes identifying any similarities and/or differences in the economic growth, population growth, economic trends, unemployment rates, consumer spending, and industry sector type of each respective area. It also involves comparisons with other similar downtown and central cores in North America.

Deliverable 4: Relationship of DowntownDC and Golden Triangle’s Contributions to the DC Tax Base and Its Net Impact on the DC Budget

Using the two BIDs’ Net Fiscal Impact studies and other sources, analyze the contributions of the two BIDs and the larger downtown area definition in DC’s Comeback Plan to the District budget for the years 2018 through 2023.

Deliverable 5: Existing Conditions Analysis by Downtown Economic Sectors

In a proposal, consultants should list the data, data sources they would use, and the people/firms they would like to interview. These should include:

• Employment
• Office
• Housing
• Hotels/tourism/conventions
• Shopping and dining
• Culture and entertainment
• Nightlife

As mentioned above, we are seeking firms who can add to this scope and show a clear line of thinking and methodology on what needs to be studied to create an impactful Action Agenda.
In a proposal, consulting teams should include a list of data to be used, data sources, and firms/individuals you would like to interview.

Deliverable 6: Existing Conditions Analysis by Downtown Social Infrastructure Sector

Social Infrastructure includes, but is not limited to the following:

• Livability
• Parks, public spaces, and urban design
• Safety
• Homeless service infrastructure
• Suggest other sectors to be studied

As mentioned above, we are seeking firms who can add to this scope and show a clear line of thinking and methodology on what needs to be studied to create an impactful Action Agenda.

In a proposal, consulting teams should include a list of data to be used, data sources, and firms/individuals you would like to interview.

Deliverable 7: Working From Home Trends and Implications

Study how the COVID-19 pandemic has led to a significant shift in working patterns, with many people transitioning to remote work or working from home. Understanding these implications is important for the growth and development of the DowntownDC and Golden Triangle areas, as it could potentially lead to changes in the demand for public spaces, transportation infrastructure, and housing.

• Assess the number of people in downtown DC offices who were offered remote work options
• Office occupancy trends in DowntownDC/Golden Triangle, the District, and regional hubs
• Hybrid work trends
• Changes in demands for residential and commercial spaces
• Changes in transportation infrastructure needs
• Suggest other factors to be studied

Deliverable 8: Analysis of Regional Economic Competition

This could potentially include analyzing economic growth differences between Northern Virginia and Washington, DC, assessing the regional labor markets, studying competition among firms, and assessing the strengths and weaknesses of the regional economy in terms of the factors that contribute to competitiveness, such as the availability of skilled labor, access to transportation, and the presence of universities and research institutions.

Deliverable 9: Assess the Current State of Infrastructure and Future Needs

This could include hard infrastructure such as transportation, broadband, services/sanitation, sustainability and low-carbon development, roads, and any other infrastructure that the EDC recommends.

In a proposal, consulting teams should list the information they will analy