FAQ
FACILITY IMPROVEMENTS
How long is a lease?The minimum lease term is 10 years. The maximum term permitted by law (36CFR,Part 18) is up to 60 years.
Are the leases renewable?No. The law does not provide for lease renewals. At the end of the lease term, if NPS elects to lease the property for an additional term, the former Lessee may compete for a new lease along with others interested in the property.
How much will it cost to rehabilitate one of these buildings?You must determine the cost to rehabilitate the building you are interested in. If estimating the cost to rehabilitate a historic structure is not your area of expertise, we strongly encourage you to hire professionals who can help you develop estimates.
Applicants must adhere to Historic Rehabilitation Standards identified in:
36 CFR 68 http://www.gpo.gov/fdsys/pkg/CFR-2014-title36-vol1/pdf/CFR-2014-title36-vol1-part68.pdf and
36 CFR 61 http://www.gpo.gov/fdsys/pkg/CFR-2014-title36-vol1/pdf/CFR-2014-title36-vol1.pdf
When I hire contractors, must I follow the requirement of the Davis Bacon Act?No.
May I install a dishwasher and other modern conveniences, or do the Secretary’s Standards for Historic Rehabilitation prevent me from doing that?Yes. You may install new appliances.
Will the NPS cover any cost to rehabilitate the buildings?No. The Lessee is responsible for the cost of rehabilitation.
Can we put solar panels on the roof?It is possible. Solar panel installation must be approved by the State Historic Preservation Office (SHPO). We encourage applicants to come up with creative solutions.
Am I required to make the building accessible (or ADA compliant)?Yes, depending on the use. If the building is meant to be open to the public for use as a bed and breakfast, an office, or educational use, the building must be accessible. The original configuration may be modified to meet accessibility requirements though exterior modifications may require SHPO review.
No, in most circumstances, if the building will be used a residence.
Am I required to make my building resilient?Yes. Applicants should employ sustainable design practices and resiliency efforts which include replacing vulnerable mechanical or other systems within buildings or relocating those systems elsewhere in the buildings, in a manner consistent with current FEMA recommendations and Advisory Base Flood Elevation maps: http://www.region2coastal.com/bestdata. Applicants cannot raise buildings to meet FEMA requirements.
How did these buildings fare during Sandy?During “Superstorm Sandy” water rose over the seawall and many of the buildings within Fort Hancock sustained water infiltration in the basement. None of the first floors were flooded in spite of the storm surge of more than 15 feet above mean high tide line.
Portions of the Historic District do fall within the floodplain area. Applicants can learn more about this by consulting the FEMA 100-year floodplain map: http://fema.maps.arcgis.com/home/item.html?id=cbe088e7c8704464aa0fc34eb99e7f30.
What is the process for making Improvements to the buildings?The selected Applicant will enter into a Letter of Intent (LOI) with NPS. The LOI will address the due diligence required prior to entering into a lease. The LOI will address the types and nature of approvals a Lessee is required to obtain prior to undertaking Improvements under a subsequently negotiated Lease.
RENT
The Request for Proposal states “The applicant should state how much rent they are offering to pay.” Why isn’t the NPS telling us what the rent is or how much rent we are required to pay?Individual Lease terms will vary. NPS will negotiate the rent, and length of lease with the successful RFP applicant. When determining what Fair Market Value Rent you would be willing to offer, please take the following into consideration:
a. The cost of renovations you propose to make to the facility as well as the cost of capital, and the return on your investment.
b. The length of time you expect it will take to complete the renovations as proposed.
c. The proposed lease term (length).
How do I determine Fair Market Value Rent?Fair Market Value Rent should take the following into consideration:
- The cost of renovations you propose to make to the facility as well as the cost of capital, and the return on your investment.
- The length of time you expect it will take to complete the renovations as proposed.
- The proposed lease term (length).
Click here to see the fair market rent if available.
HISTORIC TAX CREDITS
How do I qualify for Historic Tax Credits? A historic preservation consultant who specializes in tax credit applications can assist Lessees with the below Application:https://www.nps.gov/tps/tax-incentives/application.htm
https://www.nps.gov/tps/tax-incentives/taxdocs/hpca-instructions.pdf
https://www.nps.gov/tps/tax-incentives/taxdocs/hpca-part1.pdf
It is important to provide sufficient “before” documentation in order to qualify for the credit. Such documentation may require but is not limited to baseline photo documentation. Are there any tax breaks that might be available to Lessees? Lessees may be eligible for a 20% tax credit for the rehabilitation of a “certified historic structure.” Fort Hancock is a National Historic Landmark District. Rehabilitation of a facility must be consistent with the Secretary’s Standards for Historic Structures.
Applicants should consult their tax advisors with any questions. More about historic tax credits: http://www.nps.gov/tps/taxincentives/before-you-apply.htm
COSTS OTHER THAN RENT
Will Common Area Maintenance charges be assessed and how will they be calculated? Yes. Common Area Maintenance (CAM) charges will be assessed. Examples of CAM eligible charges include but are not limited to: Road maintenance, law enforcement, fire protection, emergency medical services, and mowing/basic grounds maintenance.CAM charges do not include the cost of utility infrastructure repair and replacement, which must be prorated among all facility occupants in accordance with Director’s Order #35B.
It is important to provide sufficient “before” documentation in order to qualify for the credit. Such documentation may require but is not limited to baseline photo documentation. What else do I need to know about Common Area Maintenance (CAM) charges? CAM charges are currently estimated at $1.50 – $2.50 per square foot per building and will be subject to periodic adjustment.
CAM charges for the entire lease term will be waived for the first five leases that are signed in connection with use of Historic Structures at Fort Hancock.
TRANSFERS AND ASSIGNMENTS
Is a Lease transferable?Yes. A lease is transferable if it says so in the lease. Any transfer will be subject to NPS approval and will require proof that the party to which the lease is to be transferred can meet the requirements and obligations contained in the lease.
Can leases be passed on to family members?Yes. A lease is a property right that is considered part of your estate for the duration of the lease term.
INSURANCE
Will I have to obtain flood insurance? Yes. Lessees must obtain Flood Insurance in sufficient coverage amounts. Flood Insurance is required pursuant to the leasing regulations (36 CFR 18.12).Flood Insurance is available through FEMA’s National Flood Insurance Program (NFIP).
TAXES
What are my real estate taxes?Click here to see Middletown Township’s 2017 Tax Assessments.
FACILITY USE
How flexible is the lease in terms of use? The use of a building is limited to what is identified in the lease. This means that a building authorized for residential use can only be used for residential use.Changes in use of the facility are not authorized except in accordance with the use zone map. Proposed uses should be identified as part any proposal and Lessees should ensure the proposed uses are identified in the executed Lease. Do I need a liquor license to sell/serve alcohol at Sandy Hook? Yes. NPS intends to limit the number of liquor licenses to be issued at Sandy Hook.
NPS will determine whether a liquor license will be issued to any particular Lessee.
Feb 2017 Official Meeting Notes: Superintendent: “It is up to NPS to determine how many liquor licenses we will issue what the fee will be and how many we want.” How NPS determines those will be negotiated on a case by case basis.
UTILITES
What utilities are available at Fort Hancock?The park’s utility infrastructure includes:
ELECTRIC: The electric service provided by JCP&L supports multi-tenant use. The Lessee will be responsible for installing individual meters at each building and for repair to the electrical system from the meter into the Leased Premises. The main trunk power line from the transformer and the individual spliced feeder cable to the building meter panel will remain the responsibility of NPS.
TELECOMMUNICATIONS: A new telecommunications infrastructure is being installed underground at Fort Hancock in a loop configuration.Each of the proposed Lessees can connect to the infrastructure at specified new maintenance hole locations. The Lessee is responsible for the cost of connection. POTABLE WATER: Potable water is available and capacity is sufficient to support the full development of the entirety of Sandy Hook.
The Lessee will be required to install a new water meter provided by the park and billed to the Lessee. Also, the Lessee will be required to have the water service line inspected and tested by a licensed plumber and an inspection report with recommendations must be submitted to the park for approval. SANITARY SEWER: The sanitary sewer system (which is fully separate from the storm sewer system) at Fort Hancock is functional and sized appropriately to accommodate the anticipated future development and a new sewage treatment plant is expected to be online in 2018.
Lessees will be responsible for repairs from the building to the main trunk line. Lessees must have the sanitary sewer lateral line videoed, tested, and inspected by a qualified licensed plumber and submit an inspection report with recommendations to NPS for approval.
FORMS
Can you provide a template for filling out the RFP proposal?No. The RFP contains a number of templates (financial forms). The NPS cannot supply any templates beyond those already included.
VETERANS
Will any buildings be set aside for use by veterans?No. However, we welcome all submittals, including those from Veterans or related organizations, in response to any of the RFPs.
SELECTION OF APPLICANTS
How long will the park take to issue a lease to a successful applicant who has submitted a proposal?The evaluation process typically takes a few months, after which, the park may enter into a non-binding Letter of Intent, prior to beginning lease negotiations with the selected Applicant/s.