Title
Helen Drake Senior Center Site Redevelopment - Request for Award (Ordinance S-49833)
Description
Request to authorize the City Manager, or his designee, to award and enter into a development agreement with The Richman Group, for the development of the undeveloped portion of the Helen Drake Senior Center site to provide affordable rental housing for seniors, and to take all actions and execute all documents to effectuate all agreements required to complete the project. 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
On June 16, 2020, the Phoenix City Council approved nine policy initiatives listed in the Housing Phoenix Plan with the goal of creating or preserving 50,000 homes by the year 2030. As part of the third initiative to redevelop City-owned land with mixed-income housing, the Housing Department identified City-owned parcels that would be ideal for affordable or mixed-income development.
On Aug. 31, 2022, the Housing Department received City Council approval to update the list of City-owned land, and to set aside the identified parcels for the development of affordable or mixed-income development. This update included the addition of the Helen Drake Senior Center parcel, located at 7600 N. 27th Ave., and is owned and operated by the Human Services Department.
The proposed project, Helen Drake Village, plans to develop an 80-unit senior affordable rental property, all below 80 percent Area Median Income, on the undeveloped portion of the site (approximately 1.8 acres).
The Housing Department, working with The Richman Group, seeks authorization to proceed with all actions necessary or appropriate to develop the Helen Drake site, which may include the following:
Form a new city-controlled non-profit corporation with the Housing Director to serve as sole incorporator, with names and governance documents as approved by the City Manager, or his designee.
Form a new corporate entity, or entities, of which the corporation will be a member and co-developer for the Project, to serve as the ownership entity(ies) for the site.
Procure and/or engage in funding transactions to finance the redevelopment, including submitting applications and accepting awards of Low Income Housing Tax Credits (LIHTC), seeking a LIHTC equity investor, and obtaining other grants and/or loans for the Project.
Provide financial guarantees to investors or lenders to assure completion and loan repayment if necessary to obtain financing, provided that any guaranty may only be paid from any developer fees to be paid to the new corporation.
Appropriate, expend and disburse funds, which may include Affordable Housing Funds, Project Based Vouchers and other sources.
Enter into agreements including easements, ground leases, licenses, and/or use agreements as necessary or appropriate to facilitate financing, construction, rehabilitation, operations and implementation of the development site.
Enter into a Memorandum of Understanding for non-profit services to be provided to the senior residents and members of the Helen Drake Senior Center.
Procure, execute, and submit or deliver all contracts, documents and instruments necessary for the financing, redevelopment and operations of the project.
Use and expend the proceeds of any grants, loans and other financing and funding sources to carry out the redevelopment, capital improvements and operations.
Take other action necessary or appropriate to develop, implement and operate all phases of the project.
Procurement Information
A Request For Proposals (RFP) was issued and posted on the City's solicitation website in accordance with the City of Phoenix Administrative Regulation 3.10 for Competitive Sealed Proposals on Dec. 12, 2022. Five proposals were submitted and deemed responsive and responsible. An evaluation committee from the City's Housing, Human Services, and Community and Economic Development departments evaluated the proposals based on the following evaluation criteria: Proposed Development; Proposer Qualifications, Experience and Finance Capacity; Project Integration with Helen Drake Senior Center; Proposed Project Timeline; and Proposed City Commitment and Benefit to the City. The maximum possible point total was 1,000.
The Richman Group
Douglaston Development
Impact Residential Development LLC
Mercy Housing Mountain Plains
Urban Development Partners
After reaching consensus, the evaluation committee recommends to award The Richman Group.
Financial Impact
There is no impact to the General Fund.
Concurrence/Previous Council Action
On June 16, 2020, the Housing Phoenix Plan, and its nine policy initiatives, was adopted, including the third initiative to redevelop City-owned land with mixed-income housing.
On Aug. 31, 2022, City Council approved an update to the list of City-owned land, which included the addition of the Helen Drake Senior Center parcel.
Public Outreach
Staff held multiple meetings with residents to discuss the potential redevelopment of the undeveloped portion of the Helen Drake Senior Center site and the intent of issuing an RFP. On Sept. 23, 2022, an on-site meeting was held at the Helen Drake Senior Center to discuss the potential redevelopment with members of the senior center. Staff additionally met with The Haven Advisory Board on Sept. 27, 2022; the Violence Impact Project (VIP) Coalition on Oct. 24, 2022; the North Glen Square Neighborhood Association on Nov. 10, 2022; and various community members.
Location
7600 N. 27th Ave.
Council District: 5
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing Department.