Title
Authorization to Modify and Extend Deadline for 2017-2018 Downtown Development Request for Proposals
Description
Request to authorize the City Manager, or his designee, to modify the "Return to the City" and "Evaluation Criteria" sections of 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 (Downtown RDA). Further request authorization to extend the deadline to Dec. 31, 2019, and to enter into negotiations with recommended proposers.
Report
Summary
In response to City Council direction to expedite City processes and provide improved customer service, the Community and Economic Development Department (CEDD) requested City Council authorization to issue a broad request for proposals seeking development projects on private property for urban and mixed-use projects within the Downtown RDA. The first Downtown RFP process was approved by City Council in November 2011 and has since been updated three times.
Over the past seven years, the Downtown RFP process has facilitated significant economic development activity on private properties. Development projects completed include: 360 rental residential units, 8,000 square feet of commercial/office space, and 470 structured parking stalls with a total of over $66 million in capital investment. Development projects which are under construction or in the pipeline will create: 2,053 rental residential units, including 75 workforce units, 69,000 square feet of commercial/office space, and 2,518 structured parking stalls estimated to facilitate more than $561 million in capital investment.
In November 2018, CEDD provided an update on the background and economic development activity resulting from the Downtown RFP to the City's Planning and Economic Development Subcommittee. During that presentation and discussion, several questions were asked, and staff was requested to return with recommendations regarding workforce housing and the weight assigned to each evaluation criterion. A summary of staff recommendations are detailed below:
First, the Subcommittee asked that the Downtown RFP's Return to the City section be modified to include a higher priority for the specific benefit of providing workforce housing. Staff recommends the following sentence be added to the "Return to City" section to further clarify the City's intent: Proposals that include a rental residential use should include a minimum of 10 percent of the units, in a proportional mix of unit types, for workforce housing.
The second item discussed was the weight assigned to the four evaluation criteria in the "Evaluation Criteria" section. In response, the following adjustments are recommended:
Current Evaluation Criteria and points:
- Concept to Activate the Site (0-300 points).
- Proposer's Qualifications, Experience and Financial Capacity (0-250 points).
- Proposer's Business Plan (0-250 points).
- Level of Return and Benefit to the City (0-200 points).
Proposed Evaluation Criteria and Points:
- Concept to Activate the Site (0-300 points).
- Level of Return and Benefit to the City (0-275 points).
- Proposer's Qualifications, Experience and Financial Capacity (0-225 points).
- Proposer's Business Plan (0-200 points).
The third discussion item requested opportunities to reduce the time required to process Downtown RFPs. CEDD and the Law Department are researching and analyzing an alternative process that will reduce the time required to process these while maintaining compliance with City and state requirements as well as including community engagement and transparency. Staff will return to the Planning and Economic Development Subcommittee and City Council with a proposed alternative process.
The final discussion item was adding a workforce housing requirement to request for proposals for City-owned properties. The Downtown RFP process does not include City-owned properties; however, this item will be addressed in future requests for proposals when City-owned properties are considered by City Council for disposition.
The Downtown RFP's original proposal deadline of June 29, 2018, was extended to June 28, 2019, and is requested to be further extended to Dec. 31, 2019.
Financial Impact
This is no impact to the General Fund by this action.
Concurrence/Previous Council Action
This item was recommended for approval by the Planning and Economic Development Subcommittee at the Jan. 8, 2019, meeting.
Location
The Downtown Redevelopment Area, established in 1979, is generally bounded by McDowell Road on the north, Lincoln Road on the south, 7th Avenue on the west and 7th Street on the east.
Council Districts: 4, 7 and 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Community and Economic Development Department.