In addition to providing for timely completion and maximum completion price, Garfield Traub assumes development leadership and supervision to ensure that all team members are fulfilling their responsibilities and that all work is well orchestrated to provide for an efficient use of the client’s resources. This leadership includes (1) review of feasibility criteria and results of study, (2) review of and active participation in the preparation of design plans and specifications as they are developed (including ’value engineering’), both before and during construction, using experience and ingenuity to ensure that the desired product is delivered, (3) preparation of the development budget in collaboration with the design and construction team (4) developing the operating pro forma in collaboration with the operator and feasibility consultant, (5) negotiation of project documents and agreements, (6) working with the financing and legal team to structure and implement project financing, (7) independent construction oversight, (8) review and oversight of pre–opening activities, including budgeting and purchasing of operating supplies and equipment, information technology planning and purchasing, and review, approval and implementation of the pre–opening budget, and (9) post–opening asset management. More specifically, Garfield Traub provides the comprehensive development leadership detailed below:

I. Feasibility Phase
1. Facility Evaluation, Feasibility and Analysis

1. Assist in the selection of feasibility consultant and establishment of criteria of feasibility study
2. Oversight of and collaboration with the feasibility consultant in the preparation of professional demand and feasibility studies.
3. Preparation of preliminary facilities and design criteria.
4. Preparation of preliminary development cost budgets.
5. Preparation of income and expense pro formas.
6. Preparation of investment analysis and return projections.
7. Evaluation, modeling, and recommendation of various ownership scenarios.

II. Pre–Construction Phase
1. Design, Development and Financing

1. Establish and monitor selection process for general contractor and major subcontractors, architect, interior designer, engineers (civil, mechanical, electrical, structural), and other specialty consultants.
2. Monitor all pre–development and entitlement activities, including zoning, permitting, licensing, soil testing, pre–construction evaluation, etc.
3. Finalize development cost budgets.
4. Review the initial schedule as well as any revisions to the schedule with the general contractor and client and provide input to ensure the most efficient and timely completion of the facilities and lowest construction interest costs.
5. Assume leadership for the legal aspects of the transaction, including the negotiation of dozens of agreements, including as necessary, ground lease or other instrument(s) of land conveyance, trust agreement, construction agreement, agreements associated with operations as further detailed in Section II.3.A, and many others.
6. Provide vital input as to the programming and design of the facilities, and provide leadership and oversight of the design and construction team in the preparation and completion of facility design and construction documents to ensure a cost–effective, operationally efficient facility that is consistent with operator brand standards and the desires of the client and which will maximize long–term profitability for the client.
7. Evaluate potential financial structures and negotiate terms of public investment with the client, its bond counsel, financial advisors, underwriters and their counsel.
8. Own or arrange private ownership for private developments and assist in ownership structuring for publicly owned developments.
9. Participate in development of bond offering documents and subsequent bond marketing efforts with the investment bankers for bond–financed developments.
10. Arrange conventional debt and equity financing for privately owned developments.
11. Host or assist investment banker in hosting site visits with prospective investors.
12. Invest as required in the form of equity or the purchase of subordinated debt.

III. Construction Phase
1. Construction Management

1. Direct and monitor construction activities with onsite personnel and executive oversight. Facilitate and arrange necessary work sessions and meetings with the client as team leader, maintaining team continuity and representing the individual team players as one unit to the client.
2. Represent client’s interests throughout construction at all necessary functions and meetings until final acceptance of the Project by the client. Developer and its onsite personnel will provide the client with a comfort level and accessibility throughout the development.
3. Monitor the contractor’s efforts to obtain final permits and approvals.
4. Review and approve all additional drawings, specifications, clarifications and changes that may occur throughout the course of construction.
5. Evaluate and negotiate all change order requests and all waivers of lien submitted by the contractor with each payment request to verify that the contractor has performed the work for which payment is requested and that waivers of lien correspond with and support the payment requests.
6. Periodically observe the contractor’s safety procedures, quality assurance and contract compliance.
7. Verify materials testing and third party inspections as called for in the specifications.
8. Provide and review with the client regular reports featuring input from all team members outlining the status and schedule of the Project.
9. Monitor contractor’s efforts to obtain the Certificate of Occupancy.
10. Review and participate, as needed, in pay applications, punch list preparation, project closeout and release of warranties.
11. Following the issuance of Certificate of Substantial Completion for each building or designated portion thereof, evaluate the completion of the work on the client’s behalf.

1. Direct and monitor the interior designer.
2. Review objectives and architect’s room arrangements, develop and coordinate interior colors, finishes, and textures, select furnishings, artwork and room accessories and propose room layout changes as necessary.
3. Secure operator design approvals as and if required.
4. Manage selection of and engage purchasing agent, present cost/benefit analyses of alternatives, and communicate alternatives to client.
5. Monitor purchase, shipment and storage of, and inspect furniture, artwork and room accessories, and handle all insurance adjustments and replacements.
6. Review and recommend warehouse and installation contractor(s) to client, manage and coordinate delivery and installation. Inspect all items, log in, secure, accept/reject, repair and adjust as needed. Assure correct installation and operation. Establish and oversee security of the installation.

1. Negotiate all agreements pertaining to facility operation, including but not limited to the operating agreement, pre–opening agreement and technical services agreement.
2. Negotiate franchise agreement as and if applicable.
3. Oversee and monitor the performance of the operator during the pre–opening and technical services phase, including budgeting, procurement and installation of operating supplies & equipment (OS&E), computer systems and other information technology (IT).
4. Oversee and monitor pre–opening management services.
5. Oversee pre–opening sales, marketing, advertising, and promotion.
6. Coordinate the timely and efficient turnover of spaces to the operator and the resolution of any remaining punch list items.
7. Coordinate with operator to obtain final project and opening approvals.

1. Maintain all development cost accounting records
2. Process all invoices and payments.
3. Generate monthly draw requests for lenders and investors.
4. Maintain and reconcile bank accounts and other assets and liabilities.

IV. Operations Phase
Asset Management
1. Oversight and Monitoring of Operations

1. Review operating plans for consistency with operator brand standards as and if required. Monitor adherence to the standards.
2. Regularly review current performance and marketing strategies and progress.
3. Perform a periodic performance rating based on unannounced visits to the property and provide an annual report on performance rating to the client as and if required.
4. Review personnel policies made by the operator.
5. Advise the client on the selection of senior management personnel.
6. Obtain copies of any concessions, contracts or license agreements and review all such agreements on behalf of the client for consistency with the terms of the operating agreement and normal operations of properties of the same type.
7. Review plans for the regular maintenance and upkeep of the property.

1. Review, comment on and recommend the approval or disapproval of the annual operating plan and budget.
2. Assist the client with the negotiation of an annual operating plan and budget with the operator.
3. Review the monthly budget reports of the operator and comment on such monthly reports to the client for compliance with performance assurances.
4. Review the annual report of the operator and provide comments to the client.
5. Review amounts of centralized services costs.

1. Review and comment on the annual capital plan submitted to the client.
2. Review all capital expense approval requests and recommend action(s) to client.
3. Periodically inspect the property.
4. Oversee renovations of the property.
5. Chair client–operator financial meetings.

1. Regularly meet with the senior personnel to discuss the progress of operations, marketing strategies, operating budgets, the physical condition of the property, plans for capital improvements and other issues that may affect the performance of the property.
2. Assist in the selection of an independent auditor if required and report to the client on progress and results of audit.
3. Assist in the selection of independent consultant(s) if required and report to the client on progress and results of consulting engagement
4. Obtain from the operator and report to the client on any reports or analysis produced by consultants
5. Review with operator the real estate tax assessments with a view to minimizing same.
6. Provide evaluation, advice, and consultation regarding property financing and disposition alternatives.
7. In the event of termination of operator, assist the client in the transfer of properties.
8. Periodically verify the suitability of insurance limits, if requested by either party, to the operating agreement.
9. Provide independent, objective perspective on any and all facility ownership and operational issues.

   © 2004 Garfield Traub Development – all rights reserved