Portsmouth hires consultants to work on McIntyre financials and application to NPS

Jeff McMenemy, Portsmouth Herald
·3 min read

PORTSMOUTH — Contracts with two consultants the city hired to work on the Thomas J. McIntyre federal building redevelopment project shed some light into what the city is relying on them to do to help them through the process.

City Manager Karen Conard signed a contract with RKG Associates, Inc. of Alexandria, Virginia, on Jan. 18, for as much as $7,500 in work, according to a copy of the contract the city posted on its website Wednesday.

The contract states RKG Associates Inc. will provide the city with a “qualified real estate consultant to review the preliminary Pro Forma provided to the city from Redgate/Kane.”

Redgate/Kane is the city’s private redevelopment partners on the project, which seeks to use a so-called “Community Plan” design to redevelop the 2.1-acre site in the heart of downtown.

Previous story:Former Portsmouth mayor, ex-councilors ask National Park Service to reject McIntyre plan

The company “will also work with the city to develop and present various alternative pro forma models based on financial/development program alternatives to the preliminary Pro Forma,” the contract states.

Portsmouth seeks info on developer's rates of return

RKG Associates, Inc. is also tasked with comparing the preliminary pro forma from Redgate/Kane with the original pro forma Redgate/Kane proposed in 2019, according to the contract.

A look at the design for the proposed McIntyre federal building redevelopment in Portsmouth.
A look at the design for the proposed McIntyre federal building redevelopment in Portsmouth.

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The consultant is being asked to do that, according to the contract, “in order to explain the differences in how the rates of return were calculated in each.”

“Also RKG will evaluate alternative ways to calculate the rate of return for the developer in the PPF as detailed in the settlement agreement.”

“This analysis should determine if there are other ways to calculate that rate of return to avoid a lump sum up front payment by the city,” according to the contract.

Preparing the federal application

The city on Jan. 18, also signed a contract with Cumming Management Group, Inc. out of New York City.

The purpose of the agreement, according to a copy of the contract, is for the company to “assist the city and its development partner in producing a mutually acceptable application to the National Park Service under which the McIntyre Federal Building may be acquired under the Federal Monument Program.”

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The program is also known as the Historic Monument Program.

The New York company has agreed to conduct a variety of tasks for the city as officials here try to move the redevelopment project forward.

They include, according to a copy of the contract:

  • Conducting a “detailed review and analysis” of the 50 percent schematic design set of architectural, structural and civil drawings.

  • Performing “a peer review of the three cost estimates provided to the city by the development partner and interviewing the three contractors who provided the estimates.” The estimates for the total project cost came in at $74 million, $94 million and $147 million.

  • Identifying key cost drivers for the project.

The two sides agreed, according to a copy of the contract, for Cumming Management Group, Inc not to exceed a $20,000 total cost for their work.

The city has been trying for years to acquire the 2.1-acre McIntyre federal building property for $1 through the Historic Monument Program.

The program is administered by the National Park Service (NPS), which must approve a series of financial agreements between the city and Redgate/Kane, along with the redevelopment proposal and design for the property.

The Community Plan redevelopment that’s been championed by the City Council includes a Market Hall center supported by two buildings, along with 44 high-end apartments and a public viewing deck.

Developers have said they plan to renovate the existing federal building and use it for office space.

The General Services Administration, which owns the property, gave the city a 90-day extension in January to try to work out a deal with Redgate/Kane and submit an application to the NPS.

This article originally appeared on Portsmouth Herald: Portsmouth NH hires consultant to review McIntyre project financials