Title
Unsolicited Development Proposal Policy for City-Owned Property
Description
Request to authorize the City Manager, or his designee, to implement an Unsolicited Development Proposal Policy for City-owned property.
Report
Summary
As of June 20, 2017, 655 City-owned parcels were categorized as excess real property. Although some of these properties are eligible for disposal through the City’s contracted real estate broker, some will require a competitive process due to federal regulations, state laws, or the City’s preference to consider more than purchase price when disposing of a parcel.
Currently, when a developer expresses interest in a City-owned parcel requiring a competitive process, the City researches the parcel, conducts community outreach, and prepares a solicitation. This process is time-intensive for potential proposers, and sometimes is not nimble enough to respond to market interest timely.
Unsolicited Development Proposal Policy
The Unsolicited Development Proposal Policy (Attachment A) will allow developers to submit unsolicited proposals for City-owned parcels for which the City has not announced its intention to issue a solicitation. Parcels owned by the Parks and Recreation Department are governed by a separate process and are excluded from this Policy. Aviation land identified in a Federal Aviation Administration-approved airport layout plan, airport master plan, or comprehensive asset management plan, or is in support of the needs of the flying public or airport operations, is also excluded from this Policy. Benefits to the City will include increased speed to market for properties with interested buyers and reduced staff time preparing solicitations, while maintaining transparency and allowing for competition and community input. The Policy will reserve the City’s right to reject an unsolicited proposal at any time prior to contract execution.
Unsolicited Development Proposal Process Overview
The unsolicited development proposal process will be posted on the City’s website and provide instructions for submitting an unsolicited proposal. These instructions will include information about the City’s Solicitation Transparency Policy, which will be in effect for an unsolicited proposal's owner and partners as of the date the unsolicited proposal is submitted. All unsolicited development proposals will be directed to the Community and Economic Development Department (CEDD).
Upon receiving an unsolicited development proposal, Staff will:
- Email City Council a brief description of the unsolicited proposal and the names of the unsolicited proposal’s owner and any partners.
- Remind the unsolicited proposal's owner, in writing, about the Solicitation Transparency Policy.
- Collaborate with the City department that controls the property to prepare a staff recommendation.
- Seek authorization at a Formal City Council meeting for each responsive unsolicited proposal received.
Any unsolicited proposal approved by City Council for competition will be posted online to provide other potential proposers an opportunity to offer a proposal. The posting will include: proposer instructions, evaluation criteria, and the City’s Solicitation Transparency Policy. The unsolicited proposal’s owner may submit a revised proposal during this stage of the process. The City may solicit community input prior to posting any unsolicited proposal for competition.
A list of responsive proposers will be posted following the proposal deadline. If no other responsive proposals are received, the City will begin negotiations with the unsolicited proposal’s owner. If the City receives multiple responsive proposals, an evaluation panel comprised of City employees, community representatives, and other individuals with relevant experience or expertise, will be assembled.
The evaluation may be based solely on the materials submitted by the deadline or may include proposer interviews and/or a short-listing process. The evaluation panel will recommend the top-ranked proposer for negotiations. The recommendation will be posted on the City’s website, City staff and the recommended proposer will negotiate a letter of intent, and the recommended proposer will conduct community outreach as directed by the City. The recommended business terms will be presented to the City Council, which may accept or reject the contract award recommendation.
Upon City Council authorization, the City Manager will implement an Unsolicited Development Proposal Policy.
Concurrence/Previous Council Action
The Downtown, Aviation, Economy and Innovation Subcommittee recommended approval of this item on Nov. 1, 2017, by a vote of 3-1.
After the Subcommittee meeting, staff continued to do research and the following additional language is recommended: "Aviation land identified in a Federal Aviation Administration-approved airport layout plan, airport master plan, or comprehensive asset management plan, or is in support of the needs of the flying public or airport operations, is also excluded from this Policy."
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Community and Economic Development Department.