Title
Authorization to Issue 2017-2018 Downtown Development Request for Proposals
Description
Request authorization for the City Manager, or his designee, to issue the 2017-2018 Downtown Development Request for Proposals (Downtown RFP), a broad RFP for urban and mixed-use development on private property within the Downtown Redevelopment Area, and to enter into negotiations with recommended proposers.
Report
Summary
Since 2012, the City has used an open Downtown RFP process to solicit development proposals on private property in the Downtown area. The current Downtown RFP ends on June 30, 2017. The purpose of the Downtown RFP is to generate new private investment, create jobs, reduce barriers to business expansion and encourage residential, office, retail, hotel, education and entertainment development in urban, mixed-use projects within the Downtown Redevelopment Area. Located within the City's single Central Business District, the Downtown Redevelopment Area is generally bounded by 7th Avenue and 7th Street from McDowell Road to Lincoln Street.
In response to the current Downtown RFP, staff received four proposals for development on private property. Two have received City Council approval, and two are in the RFP process. The two projects approved by City Council, Derby Roosevelt Row and Clark Street Holdings, are expected to add four new high-rise towers, approximately 825 rental residential units and approximately 30,000 square feet of street-level commercial space to downtown Phoenix, which contributes to the City's ongoing downtown revitalization efforts and supports the goals of the City Council adopted Downtown Strategic Plan. Further, these projects will generate approximately $211 million in private capital investment, eliminate long-time vacant lots and buildings, create hundreds of jobs and generate millions of dollars in new City revenues over the terms of their agreements.
Procurement Information
The Downtown RFP will solicit market-driven development proposals from the private sector for projects located on privately-owned property within, and immediately adjacent to, the Downtown Redevelopment Area. The Downtown RFP will remain open for 12 months, and the flexibility requested in this authorization will allow the City to be highly responsive to market conditions.
Proposers will be required to provide detailed information including a description of uses, square footage and number of units, investment and construction costs, financing details, project schedules and public benefits. Staff will have the ability to reject proposals that do not meet the RFP requirements, are not consistent with City policies or request infeasible levels of public assistance.
Proposals will undergo an administrative technical review for responsiveness. Responsive proposals will then be reviewed by an evaluation panel including City staff and community representatives. The Downtown RFP will include standards terms, conditions and other necessary requirements and will include the following evaluation criteria:
1. Concept to Activate the Site: 300 Points
2. Proposer's Qualifications, Experience and Financial Capacity: 250 Points
3. Proposer's Business Plan: 250 Points
4. Level of Return and Benefit to the City: 200 Points
Total Points: 1,000 Points
Staff will commence negotiations on proposals recommended by an evaluation panel and City management. Pending successful negotiations, staff will bring recommended business terms to a Subcommittee and City Council for consideration and approval prior to executing any binding agreements.
Location
The Downtown RFP encompasses the Downtown Redevelopment Area, generally bounded by Seventh Street, Seventh Avenue, McDowell Road and Lincoln Street.
Department
Responsible Department
This item is submitted by Deputy City Manager Paul Blue and the Community and Economic Development Department.