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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 M.{ .10 % w!� dJ yyy{{8 4 • 444 e •• • • • c9 �,or" �Q. 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). G:\RDA\Maria Hunt\WPDATA\HOUSING\ejames\18 Acre Site\RFP.011105.doc Page 2 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. G:\RDA\Maria Hunt\WPDATA\HOUSING\ejames\18 Acre Site\RFP.011105.doc Page 3 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. G:\RDA\Maria Hunt\WPDATA\HOUSING\ejames\18 Acre Site\RFP.011105.doc Page 4 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 G:\RDA\Maria Hunt\WPDATA\HOUSING\ejames\18 Acre Site\RFP.011105.doc Page 5 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. G:\RDA\Maria Hunt\WPDATA\HOUSING\ejames\18 Acre Site\RFP.011105.doc Page 6 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 G:\RDA\Maria Hunt\WPDATA\HOUSING\ejames\18 Acre Site\RFP.011105.doc Page 7 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 G:\RDA\Maria Hunt\WPDATA\HOUSING\ejames\1 8 Acre Site\RFP.011105.doc Page 8 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 G:\RDA\Maria Hunt\WPDATA\HOUSING\ejames\18 Acre Site\RFP.011105.doc Page 9 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. G:\RDA\Maria Hunt\WPDATA\HOUSING\ejames\18 Acre Site\RFP.011105.doc Page 10 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. * * * * * G:\RDA\Maria Hunt\WPDATA\HOUSING\ejames\18 Acre Site\RFP.011105.doc Page 11 Request For Proposals Palm Desert Redevelopment Agency—Twenty-Acre Housing Project Appendix 1 Site Map G:\RDA\Maria Hunt\WPDATA\HOUSING\ejames\18 Acre Site\RFP.011105.doc Page 12 1 a;; ; ; I `i - a= •r e p • ;• r 1 ii 1$Qn2 i 1 1 ii 41 I ij 11111 esa - e1 t1 /8� 11 - Iil iiiiiii !s !S a I r >1 II!! s t 'IMI gi + yteQ _Q [ t � - �'filq !Lpd!ILi!k'Ii1iiII1iIi F ! ► ►t1� ! $� 11 1 i � f ''�' , f gie! 7Y 'd9if.! ,. 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J.G. a `.�L _a.R�__a_._.-il_`� - I , re? 1 - ' I , '' .2-4— --- --- , • 84 1 I - 1 S 81 ■ :• 1ti� I�>� iit1 1\\1 a =if k _ . . .rau . a rs.4 SL�n s_. I. . a . ,.tics..� S f ! ' A.-_ I 11 3'esiii �^ r% f a it 1 i111i iiiel 1.•► •1'`. 15,,�� 1��to\ 1N4 1s1;1 4 14 1,i 11 �\• �i•. -- -.--- {i y 1 i 4 • 1 . • t �► �. > 'qq t) tit e:e Request For Proposals Palm Desert Redevelopment Agency—Twenty-Acre Housing Project Appendix 2 Tract Map Approved for Site G:\RDA\Maria Hunt\WPDATA\HOUSING\ejames\18 Acre Site\RFP.011105.doc Page 13 Request For Proposals Palm Desert Redevelopment Agency-Twenty-Acre Housing Project Appendix 3 Site Plans and Elevations — Single-Family Units G:\RDA\Maria Hunt\WPDATA\HOUSING\ejames\18 Acre Site\RFP.011105.doc Page 14 Appendix 3 Site Plans and Elevations — Single-Family Units ,,,,iiitv •lt.,''' %AM ,V,' 11 f` �c. h. t ti, r 0 O, k. .. 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" Or ( �wooNa ae 21AIGVIN 0 _____ k il 0..1 1 t ® I Ii + r I al 1 ® "i.M aalsvwe AONfaI V O Iii 44.. . k 4 k ! ® Z� 113r7 - i 1 II IIIIMI 1111+4, QIh * , ONIN w *---1. Z CIAO III I I 1 1 _.1 1 r C )E H j(}�� i I II 1 1 •�•t D ti a a 002l 9 Inn - 0 CIA Al*4111 Ull n CIA212AOO N X a #- ala Mal ilia +-I ---1 4.4 NgNDIIN e 0 III Oo ""== 010 .. III , y I k 1 1 1 1 1 1 i 1 1 . IF1 � 1 y JNINIQ III III WNW • 4 D MIN i it 110 w0 .D IA1 o =� Imig right I dF I I ` I ��I.sew 1 1 I. ED I I <^\ <A IIIL I I Mil woo oae ClaNgA0D EH 2121 VIA! ' '� '� Na.isvw A L L LA.. 4 i r� i i' t i � i-. +-I- 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 ,, A; 4 ,,. :644"' ---; -- '''''. Cot _ .. , _. , , ...a liiiu_ w d ! A 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 1 i 11 gra •CI a -- 111 - -= •a -� ` I I a .ir NIL 0 � 1 I 2 0. I I u I � 2 1 I t € i� �•��i � , I > Lij 0 IPI.i •1■p 1ee-. JJj;Ij. x Fin mu K2 IPSPV I /./ ►1 1 all , , , , , • I a !Skil JIF 1L an noel I' O w�w b 1 �� �� 1 > �� �/1 1 i6 11 F14 Ic� �> II � 0. I I I la i I I' I I I i, II I I ,__,.,L it_---__ T niilNEl1 - 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