Northport VA Medical Center Enhanced-Use Lease Opportunity

Northport, NY EUL Request for Expressions of Interest DRAFT PRE-DECISIONAL INTERNAL VA USE ONLY 1 REQUEST FOR EXPRESSIONS OF INTEREST ENHANCED-USE LEASE DEVELOPMENT OPPORTUNITY VA Northport Healthcare System within Veterans Integrated Service Network 2 (VISN 2) Northport VA Medical Center (VAMC) located within Northport, NY Notice This advertisement is a notice of a potential opportunity. This Request for Expressions of Interest (the advertisement ) is not a solicitation for offers, nor is it a request for proposals. Respondents are advised that the Government assumes no responsibility to award an Enhanced-Use Lease (EUL) based upon responses to this advertisement. This Sources Sought Notice is to identify potential sources for information and planning purposes only and is not intended to pre-qualify or disqualify any potential Respondents. The purpose of this Sources Sought is to conduct market research to determine if there are responsible and qualified entities interested in redeveloping the assets described in Section III and if yes, what potential reuse options exist. The information gained from this Sources Sought will be used to assist the Government in determining if this development opportunity can be competitive and/or a total Service-Disabled Veteran-Owned Small Business (SDVOSB) or Veteran-Owned Small Business (VOSB) Set-Aside. The Government will use this information to determine the best acquisition strategy for this procurement and to inform related asset management decision-making. The Government requests that interested parties respond to this Notice with the specific information requested in Section V of this Notice and identify their small business status. VA is particularly interested in SDVOSB/VOSB respondents capabilities to perform a minimum of 51% of the development opportunity described in this Notice. Developers responding to this market research should be aware that responding to this advertisement may not ensure that they qualify for any underlying future solicitation or contract award. Responding to this Sources Sought Notice is NOT a prerequisite to respond to any future subsequent solicitations. The Government will not reimburse participants for any expenses associated with their participation in this Sources Sought. The Government cannot provide any warranty, expressed or implied, as to the accuracy, reliability or completeness of the information contained in this Notice. Overview and Objectives The United States Department of Veterans Affairs (VA), under its Enhanced-Use Leasing (EUL) authority (38 U.S.C. §§ 8161- 8169, as amended), is seeking expressions of interest from qualified developers, including SDVOSBs and VOSBs, to serve as a Developer for purposes of developing supportive housing or other uses that directly or indirectly benefit Veterans (e.g., general affordable housing, skilled nursing facilities, assisted living, technical job training centers, research facilities, mixed-use, other). For purposes of this effort, the Developer would be a non-VA entity who has the qualifications outlined in Section V of this Notice. The opportunity would involve a Developer entering into an EUL with VA and financing, renovating/constructing, operating, and maintaining the agreed upon use of the assets. VA s EUL authority allows VA to outlease land and improvements to selected developers (i.e., Lessees) to provide housing and/or other uses that directly or indirectly benefit Veterans. Such leases can have a term of up to 99 years. VA s Office of Asset Enterprise Management (OAEM) administers the EUL Program. The objective of this development opportunity is to repurpose assets at the Northport VAMC Campus under VA s EUL Program to the benefit of Veterans. Respondents should consider the following as they formulate responses to this Notice: Lease-back by VA or other Federal government entities is not permissible, and financing cannot reflect a lease-back arrangement. The PACT Act does not nullify 38 U.S.C. § 8162(b)(5), which states, "The terms of an enhanced-use lease may not provide for any acquisition, contract, demonstration, exchange, grant, incentive, procurement, sale, other transaction authority, service agreement, use agreement, lease, or lease-back by the Secretary or Federal Government. VA may only receive cash consideration for ground lease rent in an EUL (per 38 U.S.C. § 8162(b)(3)(B)). This means VA cannot receive any in-kind consideration or free/discounted services as part of a new EUL agreement. However, projects may provide free or discounted services to individual Veterans or Veteran Service Organizations, and the Secretary may enter into an EUL without receiving consideration per U.S.C. § 8162(b)(3)(C). Additional information on the VA s EUL program may be obtained at: http://www.va.gov/assetmanagement/. Development Scope The intent of this Notice is to determine if there are experienced developers, including SDVOSB or VOSB developers, that can develop the s