The Process Of Preparing A Proposal
The Roswell Downtown Development Authority (DDA) released a second request for proposal (RFP) for the Southern Skillet Site on Oct. 31, 2018, as previously reported. We thought it might be interesting to share what might be going on in the offices of the developers preparing to submit a proposal this week. Below are common practices developers observe and consider during the RFP response process.
How Developers Approach Proposal Preparation
Analyze The Requirements And Site-Specific Details
Initially, a developer will review the requirements of the development project and the RFP’s intent statements. When determining how to approach a proposal, developers evaluate how the property’s characteristics – such as size, shape, topography and surrounding property – will impact potential designs. Other factors that might impact design and costs include site conditions: access, utilities and stormwater flow for example.
Evaluate The Market
Market, demand, competition and special use opportunities are important considerations for developers. Developers often use this part of the evaluation process to explore other uses that can be attached and how can they be mixed to complement one another.
Determine Whether The Project Is A Suitable Fit
During the process of deciding whether they are the right fit to develop on a potential site, developers place emphasis on concept, including site layout, uses and aesthetics. Developers diligently consider whether the concept meets the market’s or investor’s needs as well as achieving the goals stated in the proposal.
Ultimately, developers analyze known and quantified risks, including but not limited to costs, market demand, timing and entitlements. On the same token, capital – debt, equity and incentives – is highly considered as the concept must attract capital and provide a risk-adjusted return on investment to be viable.