John Ozanich, National Park Service, Presidio Project Office, Building 102, P.O. Box 29022, Presidio of San Francisco, CA 94129-0022

X -- LEASE OR RENTAL OF FACILITIES DUE 080495 POC Contact Point, John Ozanich, (415)556-1388x228 Addendum to Request for Proposals to Renovate and Manage Residential Buildings in a National Historic Landmark District, Presidio of San Francisco, California. This notice, originally published in the CBD dated 2/10/95, is modified as follows: I. Introduction. On February 15, 1995, the National Park Service (NPS) issued a request for proposals (RFP) for a lessee(s)(Housing Manager(s)) to rehabilitate, lease, and manage historic residential buildings within the Golden Gate National Recreation Area (GGNRA) under the terms of a master lease at the Presidio of San Francisco pursuant to Section 111 of the National Historic Preservation Act (NHPA), as amended (16 U.S.C. 470h3). All proposals were required to be submitted by April 17, 1995. The RFP stated that the buildings available to the Housing Manager under this RFP included 123 historically significant residential buildings containing 227 units with approximately 625,000 total gross square feet. Other Presidio buildings may be made available, in the future, to the Housing Manager if otherwise appropriate and permissible under applicable authorities. However, no nonhistoric residential buildings will be made available under this RFP. The RFP also stated that NPS intends to undertake certain improvements and provide certain services at the Presidio to enhance its quality. The planned improvements and services are subject to the availability of appropriated funds for these purposes. Subsequent to the issuance of the RFP and before evaluation of any of the submittals, the Department of Defense (DOD), pursuant to an Irrevocable Permit held by the Department of the Army, has advised the NPS that it has a need for up to 300 housing units within the Presidio which potentially could include some or many of those units described in the RFP. Additionally, the NPS has received seismic evaluation reports which set forth recommended corrective actions for certain units. And lastly, the criteria for occupancy of the various housing units in the RFP did not fully reflect the legal requirements for achieving fair market rental values as required by the NHPA. Accordingly, the NPS has determined that it is necessary to reopen the RFP for new proposals or modifications of previously submitted proposals for an additional sixty days. II. Summary of Buildings. The RFP identified 123 historic residential buildings containing 227 units which would be available for lease under this RFP. In addition, due to new DOD requirements for up to 300 units of housing within the Presidio, some or many of the units which had been set forth in the RFP as available for lease may, in fact, not be available. Negotiations with DOD have commenced, but have not been concluded. NPS may withdraw previously identified units from this offering as a result of final decisions reached with the DOD. The NPS, however, does not expect the number of available units to be less than one hundred and five (105). The NPS has also received detailed seismic reports for approximately eight (8) representative units. These reports indicate that additional costs may have to be undertaken by the prospective housing manager before tenants will be allowed to occupy the premises. III. Eligibility Criteria. The RFP sets forth the eligibility criteria for occupants of the housing units in accordance with the program goals of the Final General Management Plan Amendment (GMPA) and the Final Environmental Impact Statement. The criteria give preference to Presidio Park Partner employees who are engaged in activities in support of or are compatible with Presidio goals. The National Historic Preservation Act and its implementing regulations set forth a requirement that historic leases shall be for no less than fair market rental value which is to be determined by qualified professional real estate appraisers. Fair market rental value will be prepared in accordance with professional standards and practices, taking into consideration all factors influencing value including special and unique provisions and/or limitations on the use of the property contained in the lease. This fair market value determination is to be made on the basis of the rental values of the properties in comparison with similar properties in the area without regard to occupancy preferences (see 36 C.F.R. 18.5). The determination of fair market rental value will also take into account rental rates both before and after rehabilitation costs which are necessary for adequate preservation of the buildings. Individuals with an occupancy preference will have a right of first refusal to available housing units under terms to be set forth in the master lease. If there are housing units which are not rented at fair market value by employees of Presidio Park Partners in exercise of their right of first refusal, other occupants will be permitted. Examples of additional potential occupants include employees of other GGNRA Park Partners, visiting faculty to area colleges and universities, employees of contractors providing goods and services to support Presidio activities, and any other individuals who wish to reside at the Presidio under the goals of the GMPA and the purposes of the GGNRA. Although the occupancy preference is an important NPS goal, it is the obligation of the NPS to seek to achieve full occupancy of the housing units at fair market rental value in order to protect the interests of the United States and to insure adequate preservation of historic properties. A copy of the master lease NPS intends to enter into pursuant to the RFP will available upon request within thirty (30) days of the date of this Addendum. IV. Summary. This Addendum to the RFP clarifies the potential costs, purposes and goals of the NPS for its proposed leasing of historic residential properties at the Presidio in light of the matters discussed above. These clarifications should be considered as amending applicable portions of the RFP and may affect certain assumptions which were or were not made by individuals or organizations in response to the RFP. Those organizations which have already submitted proposals may, but are not required to, modify their proposals. Other organizations or individuals may submit proposals by the time and date indicated below. Copies of the RFP, along with this Addendum, may be obtained by calling John Ozanich at 415-556-1388 or by writing the address below. The RFP contains the procedures and form by which proposals should be submitted. All persons interested in making a submittal are urged to make an inspection of prototype buildings and all available records, plans, specifications, or other such documentation. Additional inspection dates are: June 22 and July 6, 1995 (call for time and location). Successful submittals must demonstrate the capacity to plan, finance, and implement the full reuse of the buildings selected in the proposer's Conceptual Rehabilitation, Leasing, and Management Plan. Following evaluation of submittals, the NPS may choose to commence master lease negotiations with one or more parties. The NPS reserves the right to reject any or all submittals or terminate lease negotiations at any time. Submittals must be received by the NPS Presidio Project Office by 4:00 p.m., PDT, on August 4, 1995 at the following address: Office of the General Manager, ATTN: Presidio Housing RFP, Presidio Project Office, National Park Service, Building 102, P.O. Box 29022, The Presidio of San Francisco, California, 94129-0022. (0146)

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