Title
Award of Co-Development Partner for The Moreland Affordable Housing Development Project (Ordinance S-52107) - District 8
Description
Request to authorize the City Manager, or his designee, to enter into agreements with Brinshore Development, LLC, or a City approved nominee, to serve as co-development partner for the development of The Moreland affordable housing project. Additionally, to take all actions and execute all documents required to complete all phases of the development project, with the Housing Department serving as co-developer. Further request authorization for the City Treasurer to accept and the City Controller to disburse all funds related to this item. There is no impact to the General Fund.
Report
Summary
To address a critical need for affordable housing in Downtown Phoenix, the Housing Department issued a Request for Proposals (RFP) seeking a co-developer partner to redevelop the former Deck Park Vista Apartments site into The Moreland, a new affordable multifamily rental housing project. The Moreland will consist of two phases with Phase I being a 132-unit development that contains studio to three-bedroom units, a community room, a fitness center, a computer room, teen/youth space, and a parking garage. Phase II will be a 105-unit development that consists of studio and one-bedroom units, a community room, a fitness center, and other amenities. The property is located on two acres at 1125 N. 3rd Street, and falls within the Downtown Core, currently zoned under the Downtown Core-Evans Churchill East Character Area. Former Deck Park Vista residents have been relocated, and the buildings have been demolished. The site is now vacant.
Of the 237 total new units proposed for The Moreland, approximately 187 will be affordable and approximately 50 will be workforce at attainable rents. Former residents will have the first right to return to the new development with rents subsidized through Housing Choice Voucher (Section 8) Project Based Vouchers (PBV). Former public housing residents of the Choice Neighborhoods Edison-Eastlake Community will also have a right to the new units utilizing PBVs. For Phase I, the Housing Department has committed 131 total PBVs for returning and Choice Neighborhoods residents. Resident services will be provided. Construction is anticipated to begin in December 2025 and the project will be completed by Fall 2027.
The Housing Department seeks authorization to proceed with all actions necessary or appropriate to develop, finance, and operate all phases of The Moreland including the following:
Procure and/or engage in funding transactions to finance the development, including submitting applications and accepting awards of Low Income Housing Tax Credits (LIHTC), seeking a LIHTC equity investor and debt lenders, and obtaining other grants and/or loans for the project.
Appropriate, expend, and disburse up to $3 million in federal HOME Investment Partnerships (HOME) Program funds to provide gap funding for housing development.
Allocate 131 Section 8 PBVs, amend Department of Housing and Urban Development (HUD) Annual Plan(s) as needed, and enter into associated contracts or agreements, as necessary to facilitate financing, development, and operations.
Convey a grant fee title or a lesser interest in all or any portion of the site to the Corporations, LLCs, public utilities, and other third parties as necessary to facilitate financing, development, and operations.
Procure, execute, and submit or deliver all contracts, documents, and instruments necessary for the financing, development, and operation of the property.
Use and expend the proceeds of any grants, loans, and other financing and funding sources to carry out the development, capital improvements and operations.
Take other actions necessary or appropriate to develop, implement, finance, and operate all phases of The Moreland development.
Procurement Information
Request for Proposal FY25-086-14 (DRW) for The Moreland Co-Development Partner was conducted in accordance with Administrative Regulation 3.10. Two proposals were received by the due date of May 2, 2025 at 3:00 p.m. and were deemed responsive and responsible.
An evaluation panel comprised of City staff, and one external non-City panel member, evaluated the submitted proposals. The maximum possible score for each proposal was 1,000 points. Proposals received points in the following categories:
Proposed Development (200 points)
Proposer Qualifications, Experience, and Financing Capacity (300 points)
Proposed City Commitment and Benefit to the City (250 points)
Proposed Project Timeline (250 points)
The final scores for the two proposals received are as follows:
Brinshore Development, LLC: 777
Blue Ridge Atlantic Development, LLC: 446
After reaching a consensus, the evaluation panel recommends awarding to Brinshore Development, LLC. The City of Phoenix Housing Department reserves the right to further negotiate certain terms outlined in Brinshore Development, LLC's proposal during the development contract negotiation process.
Brinshore Development, LLC has experience in financing, developing, completing, and managing affordable housing projects that are similar in scale and complexity to The Moreland. With a track record of over 30 years, Brinshore Development, LLC has completed more than 120 projects, totaling over 10,000 units across various states. The firm also has experience in public housing redevelopment and developing mixed-income communities.
Financial Impact
HOME is a federally funded program and funding is budgeted in the Housing Department’s Capital Improvement Plan budget. There is no impact to the General Fund.
Concurrence/Previous Council Action
On February 15, 2023, City Council approved, through Ordinance S-49424, American Rescue Plan Act funding in an amount not to exceed $10 million to facilitate the development of The Moreland Phase I affordable housing project.
Location
1125 N. 3rd Street
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing Department.