HomeMy WebLinkAboutR23390 RFP for 26 Unit Senior Rental Housing Project - Hovley Gardens Contract No. R23390
PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: AUTHORIZE STAFF TO ISSUE A REQUEST FOR PROPOSAL
(RFP) FROM QUALIFIED DEVELOPERS TO BUILD A TWENTY-
SIX (26) UNIT SENIOR RENTAL HOUSING PROJECT AND
NINETY-FOUR (94) UNITS OF AFFORDABLE SINGLE-FAMILY
DETACHED HOMES FOR SALE
SUBMITTED BY: EZELL JAMES, HOUSING PROGRAMS COORDINATOR
DATE: JANUARY 27, 2005
CONTENTS: DRAFT REQUEST FOR PROPOSAL
Recommendation:
By Minute Motion, that the Agency Board authorize staff to issue a Request for
Proposals (RFP) from qualified developers to build a twenty-six (26) unit senior rental
housing project and ninety-four (94) units of affordable, single-family, detached homes
"for sale," in an effort to meet the Agency's objective for providing affordable
homeownership and rental housing.
Executive Summary:
Approval of staff's recommendation will allow staff to solicit proposals from qualified
developers interested in developing the Agency's twenty-acre site. Denial of staff
recommendation would cause significant delays in the completion of this much-needed
affordable housing project.
Discussion:
On June 14, 2001, City Council approved a master plan of development for the 40-acre
site located north of Merle Drive, south of 42nd Avenue and west of Hovley Gardens
Drive.
The intended uses include:
1 . 162 apartments
2. 117 single-family homes
3. Future expansion of the City's soccer park
4. Future expansion of the City's Maintenance Yard
G:\RDA\Maria Hunt\W PDATA\HOUSING\ejames\stfrpts\012705rfp.doc
Staff Report
Authorize Staff to issue RFP— Build 26-unit senior rental housing/94 units single-family
detached homes for sale
Page 2 of 2
January 27, 2005
In September 2003, an Ad Hoc Committee of the City's Housing Commission,
recommended that the master plan of development be amended to allow 108 single-
family homes and 26 senior units (Tentative Tract 30795) to be developed on 20 acres,
and the balance of the land to be used for future expansions.
On October 26, 2004, the Architectural Review Commission granted preliminary
approval to design four floor plans for the single-family homes, as well as 15 buildings
consisting of 26 senior units and one multi-purpose building.
The Agency will place 14 of the 108 single-family lots into the "Self-Help" program. The
subject lots front Merle Drive and will be for the purpose of assisting qualified families to
build a single-family home as their primary residence.
The Agency is seeking a qualified entity to assist the Agency as a developer in taking
the project from its current concept stage to completion.
This is anticipated to include completion of design and construction of on-site
infrastructure, completion of entitlements (if needed), securing final approvals for the
project, construction of the improvements and sale of the single family homes to
qualified buyers who meet the Agency's low to moderate income affordability criteria.
The Agency will provide the land construction financing (if cost effective) and silent
mortgage financing for home buyers. The Agency will pay the developer a fee (to be
negotiated) for his participation in this project.
Approval of the above-described project would meet the Agency's objective of providing
affordable homeownership to low- and moderate-income families and affordable rental
housing to seniors.
Submitted by: Department Head:
Ezell ave Yrigoye
Housing ograms Coordinator Director of Rede pment/Housing
A proval:
L
st n cCarthy, AC ed: elopment Pa S Gibson, erector of Finance
Carlos L. Ort , Executive Director
Contract NO. R23390
Palm Desert Redevelopment Agency
DEVELOPMENT OPPORTUNITY
FOR
AFFORDABLE HOUSING
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REQUEST FOR PROPOSALS
FEBRUARY 2005
Request For Proposals Palm Desert Redevelopment Agency—Twenty-Acre Housing Project
Request for Proposals
The Palm Desert Redevelopment Agency (the "Agency") is soliciting Statements of
Qualifications and fee proposals from qualified developers to develop a twenty-six (26)
unit senior rental housing project and ninety-four (94) units of affordable single-family
detached "for sale" housing on twenty acres currently owned by the Agency, plus the
infrastructure, landscaping, and amenities associated with this twenty-acre project.
The Agency is seeking development organizations to assist the Agency as a developer
in taking the project from its current concept stage to completion. The applicant must
be legally empowered to undertake and perform all actions in this Request for
Proposals (RFP).
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Request For Proposals Palm Desert Redevelopment Agency—Twenty-Acre Housing Project
The Palm Desert Redevelopment Agency ("Agency") releases this Request for
Proposals to entities that may be interested in developing a twenty-six (26) unit senior
rental housing project and ninety-four (94) units of affordable single-family detached "for
sale" housing on twenty acres currently owned by the Agency. Proposals are due no
later than 5:00 p.m. (PST) on April 5, 2005.
This RFP is organized in the following manner:
I. Project Background
II. Description of Location and Site Available for Development
III. Prospective Scope of Development/Work
IV. Information Requested / Submission Criteria
a. Developer Qualifications
b. Project Team
c. Experience
d. Future Work
e. References
f. Project Management
g. Project Schedule
h. Financial Feasibility
i. Development Costs and Fee Proposal
V. Selection Process
a. Mailing Address and Selection Schedule
b. Evaluation Criteria
c. Conditions
I. PROJECT BACKGROUND
Palm Desert is centrally located in the Coachella Valley. The community has significant
resort and retail employment creating a demand for a diversity of affordable housing
opportunities. The City is also the home of the College of the Desert and the Palm
Desert Educational Center; a joint campus providing California State University, San
Bernardino and University of California, Riverside undergraduate and graduate
programs.
The Palm Desert Redevelopment Agency has made a significant commitment to the
provision of affordable housing. It has developed, financed or otherwise sponsored the
creation of over 1300 affordable housing units within the community. These include
senior rental, multi-family, special needs or at-risk housing and single-family detached
housing.
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Request For Proposals Palm Desert Redevelopment Agency—Twenty-Acre Housing Project
The Agency intends to select one or more qualified for profit or non-profit development
organization(s) or team(s) to enter into negotiations to develop a twenty-acre property
owned by the Agency into a twenty-six unit senior rental project to be owned by the
Agency and operated by the Palm Desert Housing Authority and approximately ninety-
four (94) units of affordable detached single family homes for sale to first time
homebuyers.
The Agency owns the property and has secured conceptual approval of architectural
designs for both projects and a final tract map for the twenty-acre site. The Agency has
contracted for the complete design of the site infrastructure and is also in the process of
completing construction documentation for the project.
The Agency is seeking a qualified development entity to assist the Agency as a
developer in taking the project from its current concept stage to completion. This is
anticipated to include completion of design and construction of on-site infrastructure,
completion of entitlements (if needed), securing final approvals for the project,
construction of the improvements and sale of the single family homes to qualified
buyers who meet the Agency's low-to-moderate income affordability criteria.
The Agency will provide the land, construction financing (if cost effective) and silent
mortgage financing for homebuyers.
II. DESCRIPTION OF LOCATION AND SITES AVAILABLE FOR DEVELOPMENT
A. Location
The City of Palm Desert, situated east of Los Angeles, is located within the Coachella
Valley in Riverside County. Neighbouring cities include Palm Springs, Desert Hot
Springs, Cathedral City, Rancho Mirage, La Quinta, Indian Wells, Indio and Coachella.
The proposed development site is located west of the Cook Street commercial/industrial
area of Palm Desert in close proximity to elementary, middle and high schools and has
excellent transportation services. The development site is located between:
• 42nd Avenue to the North;
• Merle Drive to the South;
The site can be accessed from Cook Street via 42nd Avenue or Merle Drive. The project
is located immediately adjacent to the Hovley Gardens (a 141 unit affordable rental
project sponsored by the Agency). A site map is presented as Appendix 1.
B. Sites Available for Development
The proposed site is currently available for development. Adequate utilities are or will
be delivered to the site at Agency's cost.
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Request For Proposals Palm Desert Redevelopment Agency—Twenty-Acre Housing Project
A site master plan, including tentative tract map and appropriate CEQA approval, has
been approved and includes the following development components:
• Twenty-six unit senior rental project
• 94 Single-Family Detached Homes
• 14 Single-Family Detached Self-help Homes (not a part of this RFP)
III. PROSPECTIVE SCOPE OF DEVELOPMENT/WORK
A. Developer Responsibilities
Developer will be required to perform all actions needed to complete the project
to include, but not be limited, to the following services under an agreement with
the Agency:
1. Complete processing of final tract map 30795 consistent with
Conditions of Approval granted by the Palm Desert Planning Commission
on 7 December 2004.
2. Assume Agency's role in professional services agreement with
Mainiero Smith & Associates to complete design of infrastructure,
including streets, curbs, water, sanitary sewer, storm sewer, sidewalks,
and dry utilities.
3. Assume Agency's role in professional services agreement with Kristi
Hanson Architects to complete design of 26 senior housing units (13
duplexes, plus community room and associated amenities).
4. Based upon schematic design completed and approved by the
Agency, complete construction documents to construct four models and
90 single-family production homes.
5. Design landscape plans and obtain final approvals for Tract Map.
6. Incorporate specific alternative energy sources and/or energy
conserving measures into the design for the single-family homes and the
senior duplexes.
7. Review and consult with representatives of the Energy Coalition
regarding incorporation of such measures, which are to be reviewed and
approved by the Agency.
8. Obtain all governmental reviews and approvals necessary for
constructing infrastructure, housing, and landscaping described above.
9. Construct infrastructure, housing, and landscaping described above
according to a schedule to be developed in cooperation with Agency staff.
This schedule is expected to include separate milestones for
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Request For Proposals Palm Desert Redevelopment Agency—Twenty-Acre Housing Project
commencement of construction of infrastructure; commencement and
completion of construction of senior duplexes and associated landscaping;
and phased construction of single-family homes and associated
landscaping.
10.Screen and evaluate potential low and moderate-income homebuyers
for the single-family homes. Provide homebuyer counselling to qualified
homebuyers. Explain the affordable restrictions, covenant requirements,
and all other Program guidelines to buyer.
11.Assist Agency in creation of homeowner association for single-family
homes.
12.Assist qualified homebuyers with obtaining mortgage loans, insurance,
home inspection, title insurance, and all processes and paperwork
associated with the purchase and escrow of their new home.
13.For a period of one year after issuance of Certificate of Occupancy for
final housing unit constructed, serve as point of contact for all homeowner
and senior duplex renters, address all questions, concerns, maintenance
and warranty complaints, and all other issues arising from the owners and
renters of the completed facilities. (The Agency will rent units and
manage the senior duplexes under separate contract with a private firm.)
IV. INFORMATION REQUESTED / SUBMISSION CRITERIA
A. Developer Qualifications
Identify the Non-profit Firm or Firms (if more than one entity comprises the
development team). These entities are collectively referred to as the "Firm"
throughout this RFQ:
1. Provide the Firm name, address, telephone number, and principal contact.
2. State the length of time in business.
3. Describe the Firm's legal structure.
4. Describe the Firm's operating structure.
5. Identify the Firm's offices, affiliates and/or other resources in Southern
California and the Continental U.S.
B. Project Team:
Identify and provide resumes for all principals and key individual(s), including
proposed project manager.
Provide resumes of other key team members who may be involved in the
proposed development.
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Request For Proposals Palm Desert Redevelopment Agency—Twenty-Acre Housing Project
Identify relationship between various firms comprising the team, and history of
the firms working relationship.
C. Experience:
1. Describe the firm's development experience, particularly in affordable rental
and for sale housing.
2. Identify all similar projects and sites developed in the past three years,
focusing on comparable projects which involved financing or subsidies from
cities, redevelopment agencies, or housing authorities.
Please provide the following information for each project:
Rental Project:
name
location
acreage and number of units
year opened
construction start and completion dates
total project cost
project manager/person responsible within your Firm
amenities
photographs, brochures, collateral material or renderings of project
name of public entity(ies) involved
income demographics
Affordable Detached Single Family Ownership Housing:
name and location of project
total project cost per unit/residence
project manager/person responsible within your Firm
number of units
average size per unit/residence
average sales price per unit/residence
average subsidy by income category
description of amenities
photographs, brochures, collateral material or renderings of project
Sources and method of financing (debt, equity, grants)
Name of public entity(ies) involved
Income demographics
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Request For Proposals Palm Desert Redevelopment Agency—Twenty-Acre Housing Project
D. Future Work:
Provide a list and describe all rental and single-family projects in the Firm's
current pipeline including status, development schedules, type of financing
structure and source, and team members.
E. References:
Provide the name, address, and telephone number for a minimum of five city,
redevelopment agency or housing authority references in the State of California
where possible.
F. Project Management:
1. Describe the Firm's ability to manage the proposed development project from
the planning and design stage through the completion of construction (no
more than two pages).
2. Identify methods the Firm uses to control project costs and scheduling.
3. Describe your Firm's method of marketing the homes, qualifying of eligible
homebuyers and managing the purchasing, financing and closing process
and subsequent follow-ups with homeowners.
G. Project Schedule - Time is of the essence and the Agency encourages
innovative proposals under which units can be placed in service rapidly.
H. Financial Capabilities / Resources:
1. Describe your Firm's financial resources and wherewithal to develop the
proposed project.
2. Indicate whether your Firm, or any of its principals, is or has been involved in
any litigation or other disputes, and in particular, with any city, redevelopment
agency or housing authority. If so, please explain (excluding "slip and falls"
and employee issues).
3. Indicate whether your Firm, or any of its principals, or any individuals or
entities named above, have ever defaulted on their financial obligations, have
had projects that have been foreclosed upon or deeded in lieu of foreclosure,
or filed bankruptcy during the Firm's stewardship of a project. If so, please
provide the dates and circumstances.
4. Provide two copies of the most recent audited financial statement of the
parties comprising the firm, audited financial statements are to be submitted
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Request For Proposals Palm Desert Redevelopment Agency—Twenty-Acre Housing Project
confidentially under separate cover, other evidence of financial resources and
stability may be submitted at the developer's discretion.
I. Development Costs and Fee Proposals:
Provide an estimate of the total costs that you anticipate in performing this
project and identify the developer fee that you propose to charge the Agency
for your work. Although the cost and the fee are subject to negotiation during
the Selection and Development Agreement processes, your proposed budget
and the level of detail provided will be considered during the initial review and
ranking of developer responses to this RFP.
V. SELECTION PROCESS
Mailing Address and Selection Schedule
This is a Request for Proposals by invitation. Seven copies of the response must be
received at the following addresses no later than 5:00 (PST) on April 5, 2005. No
responses received after this time will be accepted.
Palm Desert Redevelopment Agency
73-510 Fred Waring Drive
Palm Desert, California 92260
Attn: Ezell James
Phone: (760) 346-0611
RFP responses should be prepared simply and economically on 8.5" x 11" paper,
providing straightforward, concise description and information. Company brochures
and/or collateral materials, if any, should be provided as an attachment to the bound
submission.
No faxed, handwritten, or illegible copies of the qualifications will be accepted.
The preliminary schedule for submitting and evaluating responses and selecting a
developer is as follows:
February 1 to 28: Informational phone calls, site visits as necessary (please refer to
Important Notice below)
April 5: Qualifications submission deadline
April 15: Completion of qualifications review process
April 29: Completion of interviews with selected developers
May 2: Developer selection
July 14: Agreements between Agency and selected developer finalized
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Request For Proposals Palm Desert Redevelopment Agency—Twenty-Acre Housing Project
Important Notice
For additional information, clarification relating to the RFP or to arrange a site tour,
please call Ezell James, Housing Programs Coordinator at (760) 346-0611, Ext. 410.
VI. EVALUATION CRITERIA
All submissions will be evaluated based upon the following factors, among others:
• developer's experience with comparable affordable housing projects,
including developer's success at bringing in projects on time and on budget;
• developer's references from local governments and regional agencies;
• developer's experience assisting low-to-moderate income families in the
home buying / financing process and ability to secure additional subsidized
financing for homebuyers;
• thoroughness and completeness; degree to which the submission is
responsive to the RFP, particularly as it relates to Submission Criteria;
• current and projected future workload of the Firm;
• developer's demonstrated financial capabilities and resources, including
experience with multiple types of financing;
• qualifications of the developer and key personnel, including all companies
comprising the Firm;
• proposed project schedule.
Conditions
• Agency has the right to reject any or all RFP responses. During the response
period for the RFP, Agency may wish to amend, add to, or delete from the
contents of this RFP. In such situations, Agency will issue an addendum to the
RFQ setting forth the nature of the modification(s). Agency will mail the
addendum to those that have been sent a copy of the RFP
• Agency reserves the right to divide the project between two or more developers.
• Agency reserves the right to request further information or clarification from
respondents. Such requests will be communicated in writing.
• Agency reserves the right to accept RFP responses in whole or in part; to reject
any and all responses, and to negotiate separately, as necessary, to serve its
best interests. Firms whose responses are not accepted or selected will be
notified in writing.
• Agency is not liable for any costs incurred by any responding firm.
• This RFP does not commit the Agency to pay any cost incurred in the
preparation of a response.
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Request For Proposals Palm Desert Redevelopment Agency—Twenty-Acre Housing Project
• The proposing entity, by submitting a response to this RFP waives all rights to
protest or seek legal remedies whatsoever regarding any aspect of this RFP.
• The developer selected by the Agency must execute an agreement with the
Agency regarding the proposed development, which is in a form and content
acceptable to the Agency in the sole and absolute discretion of the Agency.
* * * * *
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Request For Proposals Palm Desert Redevelopment Agency—Twenty-Acre Housing Project
Appendix 1
Site Map
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Request For Proposals Palm Desert Redevelopment Agency—Twenty-Acre Housing Project
Appendix 2
Tract Map Approved for Site
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Request For Proposals Palm Desert Redevelopment Agency-Twenty-Acre Housing Project
Appendix 3
Site Plans and Elevations — Single-Family Units
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Appendix 3
Site Plans and Elevations — Single-Family Units
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1. Two home designs will be one-story and the other two will be two-story. The
maximum height limit is 24 feet.
2. Each of the four models will have three different elevations options and earth tone
colors schemes, for a total of twelve different exterior elevations.
3. All homes will have two-car garages, varying roof lines with concrete tile in earth
tone colors, and solid patio covers in the rear yard.
4. Minimum lot size: 4,750 to 6,000 square feet
Maximum lot size: 8,255 square feet
Minimum width: 50 feet
Single-Family Homes Model Data
Height (varies
Model Square by elevation
Type Footage No. of Bedrooms No. of Stories type
A 1,556 3 bedrooms/2 baths 1 17'-9"
18'-7"
19'-11"
B 1,495 3 bedrooms/2 baths 1 17'-9"
18'-6"
C 1,637 3 bedrooms/2 %2 baths 2 23'-6"
23'-9"
24'-0"
D 1,637 4 bedrooms/2 %2 baths 2 24'-0"
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Request For Proposals Palm Desert Redevelopment Agency—Twenty-Acre Housing Project
Appendix 4
Site Plans and Elevations — Senior Units
G:\RDA\Maria Hunt\WPDATA\HOUSING\ejames\18 Acre Site\RFP.011105.doc Page 15
Appendix 4
Site Plans and Elevations — Senior Units
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1. The Senior Villas will have concrete tile gable roofs and stucco walls. The
two exterior color schemes will use beige and brown colors. All villas will
have patios with solid roofs.
2. Carports will be provided for 26 of the 28 parking spaces so that each
apartment has one covered parking space.
3. The multi-purpose building will provide a place for social and recreational
activities for senior residents.
Senior Villas Data
Model Type Square Footage No. of Bedrooms No. of Stories
A 794 1 bedroom/1 bath 1
B 685 1 bedroom/1 bath 1
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Request For Proposals Palm Desert Redevelopment Agency—Twenty-Acre Housing Project
Appendix 5
Financial Form
G:\RDA\Maria Hunt\WPDATA\HOUSING\ejames\18 Acre Site\RFP.011105.doc Page 16