Title
Authorization to Reissue a Request for Proposals for Sale and Development of City-Owned Property at 814 N. 5th Ave.
Description
Request to authorize the City Manager, or his designee, to reissue a Request for Proposals (RFP), select a development team, and begin negotiations for the sale and urban infill development of City-owned property located at 814 N. 5th Ave. There is no impact to the General Fund with this action.
Report
Summary
The City owns a vacant parcel in the downtown Roosevelt Neighborhood, comprising of approximately 7,000 square feet, or 0.16 acres, at 814 N. 5th Ave. (Site). The Site was purchased by the City's Neighborhood Services Department in the early 2000's with federal Community Development Block Grant funds to facilitate revitalization through blight elimination. In November 2005, the structure on the Site suffered severe fire damage and was subsequently demolished. In April 2017, the Community and Economic Development Department issued an RFP for the sale and development of the Site. The sole proposal for this RFP was received from Yosemite Partners, LLC (Developer) and, in June 2018, City Council authorized staff to enter into a development agreement with the Developer.
Through the due diligence process, the Developer identified physical encroachments on the Site, likely built by a previous owner of the adjacent property located at 818 N. 5th Ave. The Developer also discovered historic preservation restrictions on the Site that limited its ability to develop the Site as initially proposed. In May 2019, the Developer terminated negotiations. City staff has continued discussions with the owner of the 818 N. 5th Ave. property to resolve the encroachment issue and has prepared a separate legislative file (20-0441) for City Council's consideration on March 4, 2020 to resolve this matter.
City staff is proposing to reissue an RFP for the sale and development of the Site. Staff has commissioned an appraisal of the Site, which will be made available to potential proposers. The minimum purchase price will be set at the greater of the appraised value or $245,000. The return to the City will be based on fair market value and may include payments and other consideration that provide public benefit. The RFP will include standard terms, conditions and other necessary requirements, and the following evaluation criteria:
- Return to the City: 0-375 points
- Concept to Activate the Site: 0-325 points
- Proposer's Qualifications and Experience: 0-300 points
The RFP will be reissued in spring 2020 after the encroachment issue is resolved and will remain open for at least 60 days. Minor modifications such as details regarding the resolution to the encroachment issue will be included in the RFP. Responsive proposals will be evaluated by a diverse panel including City staff and community representatives. Following negotiations with the recommended proposer, business terms will be presented to the Workforce and Economic Development Subcommittee and the full City Council for approval prior to entering into an agreement.
Financial Impact
There is no financial impact to the General Fund with this action.
Public Outreach
Staff presented this proposal to the Downtown Voices Coalition on Feb. 8, 2020, and the Roosevelt Action Association on Feb. 18, 2020.
Location
814 N. 5th Ave.
Council District: 7
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich, Deputy City Manager Mario Paniagua, and the Community and Economic Development and Neighborhood Services departments.