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2. BACKGROUND The Courthouse Square development is the product of an intergovernmental agreement between County and Transit. The intergovernmental agreement reflects a shared commitment to create a public facility that benefits all segments of the community. As part of this vision, it has been a priority to include a private entity as a component of this unique development. As reflected in the attached plans, the new bus mall will run (east/west) the full length of the block. This area is intended to create an inviting and comfortable environment for bus riders while at the same time enhancing the efficiency and safety of the operation. A jointly owned five-story County/Transit office building is being constructed at the south end of the block. Approximately 95% of the office space will be occupied upon completion. Tenants will include County offices andconference center, Transit offices and associated customer service operations, and a small amount of Transit-owned and related retail space facing Court Street. A private developer will be selected to create, finance and operate a single or mixed-use component on the northern portion of the block. There will be design and use constraints on this Project. The Project will be constructed on grade adjacent to the bus mall, which is constructed above a subsurface parking lot. Access to the parking garage is provided at each end of the site with an enclosed stairwell. There is the potential to construct elevator access to the garage from the building that would be constructed on the North Block pad. It is a matter of public record that Transit and the County have engaged in numerous public discussions regarding desirable types of improvements far the North Block site. Some of these discussions have been the subject of newspaper coverage, and could lead proposers to conclude that certain types of development might be preferred. At various times, the Boards have discussed retail ground floor uses with housing in upper floors. Day care centers have been mentioned as a potential use. Mixed-use, with retail and commercial space has also been mentioned. At this point in time, the Procuring Agency is consciously remaining open to proposals from the development community. The Boards believe that it is in the public's best interest to consider any and all proposals on their own merits, and are not directing proposers to any specified land uses or mix of uses. In addition to the economics of each proposal, the Procuring Agency is interested in a development that adds vitality and physical symmetry to the block. There are some limits placed insofar as certain uses which will not be permitted, such as liquor or tobacco stores, and these limitations are presented in Section 3.2 below. A Market Analysis of office, retail, and commercial space in the downtown Salem area was conducted in December 1999 by the firm of Palmer, Groth, and Pietka. This document will be made available to any Proposer who requests it. DEVELOPMENT PROGRAM The Procuring Agency intends to allow flexibility and encourage creativity in the development of the Project, providing the proposal falls within the guidelines of this RFP. The Proposer's proposal should identify how these elements are incorporated in the proposal. 3 .1 Building Design Elements Proposals must discuss how the Project is compatible with its immediate neighbor, the transit mall, and the Courthouse Square structure to the immediate south of the Project site. The Project should be designed for pedestrians with convenient and safe