Title
Central and Columbus Development - RFP FY24-086-10 - Request for Award (Ordinance S-51554) - District 4
Description
Request to authorize the City Manager, or his designee, to enter into a development agreement with Holualoa Capital Management, LLC (Holualoa), or its City-approved designee, for the development of Central and Columbus to accommodate a mixed-income and mixed-use housing development, and to take all actions and execute all documents to effectuate all agreements required to complete the project. Further request to authorize 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 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 August 31, 2022, the Housing Department received City Council approval to update the list of City-owned land. This list includes the Central and Columbus parcels for the development of affordable or mixed-income housing.
Located generally at 32 E. Columbus Avenue, the Central and Columbus site consists of 21 parcels for a total of approximately 3.2 acres.
The proposed project plans to develop 250 affordable rental units serving households between 30 and 80 percent of the Area Median Income. Holualoa will partner with Gorman & Company, LLC for the development of the residential portion of the project. Affordability requirements will be secured through a Declaration of Affirmative Land Use Restrictive Covenant (LURA). The LURA will have a term of 99 years.
The project will include a 40,500 square foot integrated care center that will be developed by Mortenson Development, Inc. and operated by Adelante Healthcare. The healthcare center will create 100 new jobs and serve over 200 patients per day. The site will also include Fire Department meeting and garage storage space, and shared parking of approximately 294 parking spaces and 63 bicycle spaces. The mixed-use project will incorporate walkable urban design featuring open spaces, amenities and infrastructure to support micromobility and multimodal transportation.
In addition to the partnership with Adelante Healthcare for the integrated care center, other strategic partnerships for enhanced services will include Local First Arizona, Tiger Mountain Foundation, St. Mary’s Food Bank, Pinnacle Prevention and First Things First Arizona.
The Housing Department, working with Holualoa, seeks authorization to proceed with all actions necessary or appropriate to develop the site, which may include the following:
- 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.
- 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 Proposal (RFP) procurement was processed in accordance with City of Phoenix Administrative Regulation 3.10.
Seven vendors submitted proposals deemed responsive and responsible. An evaluation committee of City staff evaluated those offers based on the following criteria with a maximum possible point total of 1,000:
- Concept to Develop Site (0-350 points)
- Return to the City (0-325 points)
- Proposer’s qualifications and Experience (0-325 points)
The final scores for the proposals received are as follows:
- Holualoa Companies (875 points)
- Mercy Housing (850 points)
- The Richman Group (783 points)
- Urban Development Partners and Palindrome (725 points)
- Brinshore Development, L.L.C. (707 points)
- Rehoboth Community Development & Impact Residential (688 points)
- Brodd Hotel LLC (464 points)
After reaching consensus, the evaluation committee recommends award to the following vendor: Holualoa Companies.
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 August 31, 2022, City Council approved an update to the list of City-owned land, which included the Central and Columbus parcels.
Public Outreach
Staff held multiple meetings with residents and developers to discuss the potential redevelopment of the site and the intent of issuing an RFP. On May 18, 2023, and August 28, 2023, staff attended Midtown Neighborhood Association meetings to discuss the potential redevelopment. On June 5, 2023, staff attended an Encanto Village Planning Committee to present on the site and potential RFP to gather feedback. Staff also held a virtual community meeting on June 26, 2023, and notified adjacent property owners via mailers and phone calls. On November 3, 2023, a developer meeting was held to gather feedback from the development community.
Location
The site includes 21 parcels collectively referred to as 32 E. Columbus Avenue.
Parcel Addresses: 25, 29, 33, 37,45, 49, 51 and 55 E. Weldon Avenue; and 26, 28, 32, 42, 46, 50, 52, 54 and 64 E. Columbus Avenue.
Council District: 4
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing Department.