Title
Award for Redevelopment of Deck Park Vista Apartments (Ordinance S-46804)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Native American Connections, Inc. (NAC) for the redevelopment of Deck Park Vista Apartments and to take all actions and execute all documents to effectuate all agreements required to complete the redevelopment project, with the Housing Department serving as co-developer. 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 April 17, 2019, the Housing Department received City Council approval to issue a Request for Proposals (RFP) for the redevelopment of Deck Park Vista Apartments to address a critical need for affordable and workforce housing in the Downtown Core. The dire need for affordable and workforce housing was outlined in a January 2019 presentation of a comprehensive analysis of multi-family housing in the Central City by the Community and Economic Development Department at the Planning and Economic Development (PED) Subcommittee meeting. Additionally, at a May 2020 Land Use and Livability (LUL) Subcommittee meeting, the Housing Department presented an update on the City's Affordable Housing Initiative highlighting Phoenix's shortage of 163,067 housing units based on a gap analysis of the current housing need and the available housing stock.
Deck Park Vista Apartments is a 56-unit affordable rental property located on two acres at 1125 N. 3rd St. The property falls within the Downtown Core, and is zoned as Downtown Core-Evans Churchill East Character Area. This zoning provides entitlement for more density and height, and provides guidance for character area design and first floor commercial activation. The proposed redevelopment will consist of demolishing the existing 56 units and building a new 201-unit mixed income community that takes advantage of the property’s entitlements. Of the 201 units, 126 will be affordable and 75 will be workforce. Fifty-six of the 126 affordable units will be Section 8 Project-Based Vouchers (PBV) to replace the current senior housing units. Existing residents will be temporarily relocated, at the Housing Department’s expense, and have first right of return to the new development using the Section 8 PBVs. A few of the proposed amenities for the new development include comprehensive supportive services provided by NAC, first floor commercial space, a secured interior courtyard, fitness center, and security cameras throughout the property. Construction is anticipated to begin in October 2021 and the project will be completed in Fall 2023.
The Housing Department, working with its co-development partner NAC, seeks authorization to proceed with all actions necessary or appropriate to redevelop the Deck Park Vista site including the following:
Demolish existing structures and relocate resident households following applicable Uniform Relocation Requirements.
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 and expend up to $500,000 in Affordable Housing Funds to assist with relocation expenses, environmental costs and other predevelopment costs.
Appropriate, expend and disburse up to $1 million in federal HOME Investment Partnerships Program funds to provide gap funding for housing redevelopment.
Convey or grant fee title or a lesser interest in all or any portion of the site to the Corporations, LLCs, public utilities, and other third parties as necessary to facilitate financing, redevelopment, and operations.
Allocate 56 Section 8 PBVs, amend HUD Annual Plan(s), and enter into associated contracts or agreements, as necessary to facilitate financing, redevelopment, and operations.
Procure, execute, and submit or deliver all contracts, documents and instruments necessary for the financing, redevelopment and operation of the property.
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 Deck Park Vista redevelopment.
Procurement Information
The RFP was issued and posted on the City's solicitation website in accordance with Phoenix City Code § 43-14 for Competitive Sealed Proposals on Jan. 8, 2020. A notification was sent to additional vendors registered with the Housing Department to receive notices and companies registered in Supplier Relationship Management.
Three proposals were received by the due date of March 6, 2020 at 3 p.m. and evaluated by a panel comprised of City staff from the Housing and Public Transit departments, and one non-City staff from Downtown Phoenix, Inc. The proposals were evaluated on a 1,000-point scale, and were scored based on the following criteria: Proposed Development; Proposed City Commitment and Benefit to the City; Proposer Qualifications, Experience and Financial Capacity; and Proposed Project Timeline. The evaluation panel scored the proposals as follows:
Native American Connections, Inc.: 838
Synergy, Incorporated: 762
Gorman & Company, LLC: 725
Based on these scores, the evaluation panel recommended award to Native American Connections, Inc. scoring 838 points out of 1,000 possible points.
Financial Impact
Funding is available in the Affordable Housing Fund. There is no impact to the General Fund.
Concurrence/Previous Council Action
On Feb. 5, 2019, information on the opportunity for redevelopment of Deck Park Vista was presented at the PED Subcommittee for information and discussion only.
On April 2, 2019, the issuance of an RFP was recommended for approval at the PED Subcommittee meeting by a vote of 4-0.
On April 17, 2019, the City Council approved the request to issue the RFP.
Public Outreach
Staff held multiple onsite meetings with residents to discuss the potential redevelopment of Deck Park Vista. Frequently Asked Questions (FAQ) were gathered and posted with answers in the lobby of the property throughout the process. As additional questions arose, the FAQs were updated, distributed to households, and posted in the lobby for residents to view. Prior to seeking authorization to issue the RFP, staff held an onsite meeting on Oct. 18, 2019 to discuss the anticipated issuance and timeline. On May 13, 2020, Housing Department staff and Council District 8 personnel distributed a fact sheet to residents containing details of the recommended proposal and next steps.
Location
1125 N. 3rd St.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Housing Department.