Insights

How to run a solicitation that credible developers answer.

Publish the site's record, name who decides and when, and put the same questions to every respondent. A note for land banks, public holders and towns on writing a request for proposals, an RFP, and reading the answers.

A small town, its homes, civic hall and water tower on the left, shares one power line with a substation and a powered shell on the ridge to the right, and both ends are lit.

A request for proposals draws credible developers when it gives them what an answer has to rest on: the site's record, the constraints already known, the timeline to a decision and the body that decides. It keeps the answers honest when it puts the same questions to every respondent and reads each answer against the record rather than against the others' promises.

Energy.LLC is an energy developer and a principal that brings development capital to the former plants and yards it selects, so this note is written from the respondent's chair.

The record decides who answers.

A developer reads a solicitation the way it reads a site, and answers in proportion to what it can see. A solicitation issued with the site's file is answered by firms writing to the site in front of them; a solicitation that holds the file back until an award draws answers written to an imagined site, whose terms reopen the day the file arrives. Our page for land banks and property portfolios lists the records a first conversation can begin from.

A gap stated as a gap is part of the record too. Where the title has not been searched, the electric service agreements are missing or a cleanup is unfinished, the solicitation says so, and a respondent prices the gap as a task instead of fearing it as a risk. Nothing in a public file improves by surfacing late; a firm that learns of a gap after the award has every reason to reopen its terms.

The decision shapes the answer.

A respondent plans its answer around the decision, so the solicitation names the board, council or authority that will vote, the steps and dates between the deadline and the vote, and which meetings will be public. It also says what the holder wants at the end: a sale, a long lease, or a partnership in which the holder keeps a stake. Where it has not decided, it says so and asks each respondent to propose a form. A holder that misses its own timeline loses the firms that planned around it, so the dates published should be dates the holder will keep.

The same questions make answers comparable.

The questions that decide whether a site becomes a project are the same for every respondent, and a solicitation that asks them in the same words receives answers it can set side by side. The headings are the ones a town puts to any developer: the power, the approvals, the demands on infrastructure, the benefits to the community and who stands behind the project.

On power, ask for the electric service the site has today and the service the project would need, with what exists kept apart from what is planned, because the date rests on the planned part; a respondent that answers with the equipment standing on the site has answered a different question. On approvals, ask whether the use is allowed where the site sits under the town's rules and what conditions the respondent expects, rather than how confident it is. On infrastructure, ask what building and running the project will take from local roads, water and power, and what it returns in tax base and local work, so return is weighed against cost. On who stands behind the project, ask for names: the developer, the source of its capital, the operator and builder where known, and the people who will carry the work and answer to the board.

Credible answers carry sources, dates and names.

A credible answer is specific where a weak one is general. It says what the site's service is as of a date and where the fact came from, and it names the body whose approval each step needs and the person at the firm who will carry the work. An answer that admits what it does not yet know is more credible than one with no unknowns, because no site of this kind is without them.

Read every date for what it rests on. A date for first power, the day power first reaches the site, depends on the grid work, the approvals, the infrastructure and the work that remains on the site itself, and a date offered without the work behind it is a hope. The respondent that can say what each date waits for, and whose decision it waits on, has done the work the date requires.

We answer as the developer that would carry the project.

When Energy.LLC answers a solicitation, we answer as the developer and principal that would carry it: development capital for the site, the approvals, the power and the construction, and the site carried toward the data center or energy operator that will run it. Existing is stated. Proposed is labeled. Each fact carries its source and its date, and the answer names who will carry the work. We know what can stop a project, and we answer the solicitations where our proprietary site intelligence and our developers show us a credible path.

A public body chooses its partner in the open and lives with the choice for the life of the project, so the solicitation is the first page of the developer's relationship with the town. We build with the towns we work in, and officials and residents can read how on our page for municipalities and communities.

Questions this note answers

How should a land bank run an RFP for a data center or energy developer so credible firms respond?

Write it so a serious firm can answer from its desk: publish the site's file with the request, mark what the file lacks, give the dates and the body that will vote, and say whether the holder wants to sell, lease or keep a stake. Then put the same questions to every respondent in the same words, so the answers can be compared on what they rest on rather than on how they are written. A firm that has done this work before recognizes a solicitation it can act on, and passes over one that leaves it guessing at the site or at the decision.

Should we release the site's file with the solicitation, or hold it until we choose a developer?

Release it with the solicitation, and mark what it lacks. A developer answers in proportion to what it can see: with the file in hand it writes to the site in front of it, and without the file it writes to an imagined site and reopens its terms the day the file arrives. The parts a public holder is tempted to hold back are the parts a serious firm needs most: how the site was cleaned up and what the state has said about it, any restriction the title carries from public money or a past cleanup, and the agreements behind the electric service that reached the site. Stated early, each becomes a task the respondent prices; surfaced late, each becomes a reason to renegotiate or walk away.

How do we tell a credible data center developer from one that will not follow through?

Press on the dates. A respondent that intends to follow through can say what its first-power date depends on, which approvals and which grid work, and whose decision each piece waits for; one that cannot has offered a date it does not own. Then look at the people: a credible firm names the person who will sit in front of the board for the life of the project, not a contact who leaves the file after the award. Specific, dated, named and willing to say what it does not know yet is the pattern; general, undated and certain is the warning.

How do we learn who is behind the company answering our solicitation?

Ask in the solicitation and make the answer a condition of being considered: the developer entity and the people who direct it, the source of its development capital, the operator and the builder where either is named, and the person who will answer to the board through the life of the project. A respondent that answers through a company formed for the project says who owns that company and who funds it. A holder is choosing a partner for years and should know whom it is choosing.

Bring us the site and its file, before the solicitation is written or after it closes, and we will read the path behind it.

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