Item 13 - Request for Qualifications for Development of the Monte Vista Affordable Housing SiteDecember 15, 2020, Item #13DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA RE PO RT City of Poway December 15, 2020 Honorable Chairman and Members of the Housing Authority Robert Manis, Director of Development Services ,fJ{l Craig Ruiz, Economic Development Administrator cruiz@poway.org, 858-668-4509 Marie Sanders, Senior Management Analysa ~ msanders@poway.org, 858-668-4637 "'1 CITY COUNCIL Request for Qualifications for Development of the Monte Vista Affordable Housing Site On September 1, 2020, Councilmember Mullin brought forward a request for Council consideration that staff prepare a Request for Proposals for an affordable housing project. The desired project would consist of low-income residential units with approximately half of the units designed for developmentally disabled adults and the remaining units targeted for veterans. While three housing sites were discussed, it was determined that the requested proposals would be limited to the Monte Vista Road property owned by the Poway Housing Authority. The City Council also requested that staff return with a draft of the Request for Proposals prior to releasing the document. Recommended Action: It is recommended that the City Council provide input on the Request for Qualifications and direct staff to send the document to interested parties. Discussion: The Poway Housing Authority owns three prospective sites for affordable housing: Monte Vista, Twin Peaks and Big Stone Lodge. At their September 1, 2020 meeting, the City Council directed staff to develop a Request for Proposals (RFP) for the Monte Vista Site (Site). The Council requested that the project contain low-income residential units for developmentally disabled adults and military veterans. The Council further directed that the RFP be general in nature to encourage a broad range of proposals. The City Council requested that they be given the opportunity to review the RFP prior to the issuance of the document. The Monte Vista housing site is included in the City's Regional Housing Needs Assessment (RHNA) in the Housing Element of the General Plan. The site is identified as providing 41 low income units. As 1 of 13
December 15, 2020, Item #13such, the RFQ is requiring that submitted proposals contain at least that many units. Typically, an affordable housing RFP requires significant detail for staff to review in order to determine the feasibility of the development. RFP's are generally time consuming for an applicant to prepare and have significant costs associated with them. When initially preparing the RFP, staff attempted to balance the Council's direction for generalization with the inherent specificity of a typical RFP. To best meet the City Council direction to not cause an undue burden on respondents and to receive the greatest number of responses, staff is recommending a two-step process. The solicitation will consist of two rounds, a Request for Qualifications (RFQ) followed by an RFP. The RFQ will be shorter and less detailed, providing a high-level summary of the proposal. Qualified developers with a demonstrated ability to finance, design, build and manage affordable rental housing will be encouraged to submit their proposals. Only those respondents that best meet the RFQ requirements may be invited to participate in the RFP. This two-step approach was successfully utilized by the City in selecting a developer for the Town Center/Poway Commons development. The RFQ will require respondents to provide a detailed description of the proposed conceptual project, information on relevant project team experience and project financing and timing. This level of information will provide enough detail for a review committee to rank project concepts and determine which respondents will advance to the RFP round of the solicitation. The RFP round would include a small number of the highest qualified respondents who would then provide the necessary level of project detail (including a conceptual design) for staff to determine who best satisfies the objectives expressed by the City Council, as well as provides a desirable development project and financial return for the Poway Housing Authority. Staff would then present the evaluation results to the City Council and Housing Authority Board, as appropriate, to make the final selection decision. If the City Council concurs, staff anticipates the following RFQ/RFP schedule: Issuance of RFQ Tour of the Site Deadline for RFQ Submittals Review and Evaluation of RFQ Submittals; Selection of Round Two Respondents Issuance of RFP for those invited to participate in Round Two Deadline for RFP Submittals Review and Evaluation of RFP responses (including interviews); Review Committee recommendation Housing Authority Board to consider proposed Exclusive Negotiating Rights Agreement with preferred Respondent Environmental Review: January 4, 2021 January 13, 2021 2:00pm PST January 27, 2021 5:00pm PST February/March 2021 April 2021 April/May 2021 5:00pm PST May 2021 June 2021 This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: None 2 of 13
December 15, 2020, Item #13Public Notification: None. Attachments: A. Draft Request for Qualifications -Monte Vista Road Project Site Reviewed/ Approved By: Wend aserman Assistant City Manager 3 of 13 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager
December 15, 2020, Item #13REQUEST FOR QUALIFICATIONS AFFORDABLE HOUSING DEVELOPMENT OPPORTUNITY MONTE VISTA ROAD PROJECT SITE 4of 13 Poway Housing Authority 13325 Civic Center Drive Poway, CA 92064 Contact Information: Marie Sanders, Senior Management Analyst Poway Housing Authority (858) 668-4637 I msanders@poway.org ATTACHMENT A
December 15, 2020, Item #13I. INTRODUCTION II. THE DEVELOPMENT SITE Table of Contents 3 3 Site Description ................................................................................................................................ 3 Proposed Project ............................................................................................................................. 4 Ill. GOALS AND OBJECTIVES 4 High-Quality Development ............................................................................................................. 4 Sustainable & Energy Efficient ....................................................................................................... 4 Affordability Requirements ............................................................................................................ 4 Timeline ............................................................................................................................................. 5 Eligible Developer Respondents .................................................................................................... 5 IV. SUBMITTAL REQUIREMENTS 5 Submittal Overview ......................................................................................................................... 5 Qualifications and Proposal Content ............................................................................................ 5 V. SELECTION PROCESS AND CRITERIA 7 Evaluation Criteria ........................................................................................................................... 7 Award Procedures ........................................................................................................................... 7 Tentative Timeline ........................................................................................................................... 9 VI. SUBMISSION PROCEDURES VII. ADDITIONAL INFORMATION EXHIBIT A Poway Housing Authority -Request for Qualifications of ~nte Vista Project Site 9 9 10 2
December 15, 2020, Item #13REQUEST FOR QUALIFICATIONS AFFORDABLE HOUSING DEVELOPMENT 12674 Monte Vista Road I. INTRODUCTION The Poway Housing Authority (Authority) issues this solicitation to seek project proposals for a housing site (Site) located on Monte Vista Road. Depending on responses received, the Authority could select a development team to design, finance and build an affordable rental housing development on the 2.06-acre Site (Exhibit A). Development of the Site will be designed as affordable rental housing with approximately half of the units designed for developmentally disabled adults and the remaining units targeted for veterans. The housing product type will be designed within the parameters established by allowable densities, height limits, parking, vehicular access, soils conditions, and other development requirements of the Site, and must contain a minimum of 41 units. The Authority owns the Site. This solicitation will consist of two rounds, this Request for Qualifications (RFQ) followed by a Request for Proposals (RFP). Qualified developer Respondents (Respondents) that meet RFQ requirements and demonstrate their ability to finance, design, build and manage affordable rental housing are encouraged to submit their qualifications. Only those Respondents that meet RFQ requirements may be invited to participate in the RFP. II. THE DEVELOPMENT SITE Site Description The Site is illustrated in the map attached as Exhibit A. The property is approximately 2.06 acres and located on the north side of Monte Vista Road, east of Pomerado Road (APN 317-490-69-00). The Site is vacant and is currently leased on a month-to-month basis to a local auto dealership for inventory storage. The Authority asks that prospective Respondents respect the privacy of existing tenants and not visit the Site. A tour of the Site is scheduled for Wednesday, January 13, 2021. Please refer to the "Additional Information" section of this RFQ for specific tour information. The Site is zoned Commercial Office (CO) with an affordable housing overlay zone (AHOZ). The AHOZ allows a residential density of up to 30 dwelling units/acre for the development of low-income affordable housing (at or below 80% of the area median income). The development standards applicable to the AHOZ are the development standards of the Residential Apartment (RA) zone, which are found in Chapter 17.08 of the Poway Municipal Code. While the height limit in the RA zone is 35 feet and 2 stories, it is possible that the City Council could allow 3 stories within the 35-foot height limit. The Site is identified in the Regional Housing Needs Assessment that is part of the Housing Element of the Poway General Plan. The Site is identified as accommodating 41 low-income units and the Authority requires that at least that number be developed. The Site is vacant and improved only with paving as a parking lot. The property is currently enclosed with temporary chain-link fencing and contains areas of non-native/ornamental vegetation (primarily Poway Housing Authority -Request for Qualifications of ~nte Vista Project Site 3
December 15, 2020, Item #13pepper trees). The property slopes from an elevation of 634 feet above mean sea level (MSL) at the west end driveway entrance to an elevation of 650 feet above MSL along the easterly property line. Surrounding uses to the Site include an office building to the west, a private school to the south, across Monte Vista Road, and an acute care facility to the east. Pomerado Hospital is directly to the north of the Site. A heliport for the hospital is located approximately 90 feet from the northwest corner of the property. An avigation easement was granted to the hospital in 2010 that prohibits buildings structures, or vegetation on the Site to project above an elevation of 683 feet above MSL. The City has several documents pertaining to the Site and/or a previously proposed project for the property, including: • Phase I Environmental Assessment Report • Acoustical Site Assessment • Drainage Study • Federal Aviation Administration Aeronautical Study These files will be made available for view and download prior to RFQ issuance. Proposed Project The Site must contain at least 41 low-income rental units at rates consistent with California Health and Safety Code Section 50053. The project must be designed with at least half the units designated for developmentally disabled adults with the remaining units targeted for veterans. The Authority will provide the land either through a sale/transfer or a land lease under terms of a Disposition and Development Agreement to be negotiated with the selected developer. Soils conditions, site access and compatibility with the surrounding area are expected to be primary factors affecting the product type and ultimate unit count. Ill. GOALS AND OBJECTIVES The Authority's goal is to use the Site in a manner that results in the production of affordable housing, in accordance with State law. The Site is required to be developed for the purpose of creating affordable housing in compliance with California Health and Safety Code Section 34176.1. High-Quality Development Development of the Site must include high-quality design, materials and construction. The architectural character must meet community expectations and should be attractive and compatible with the character of the neighborhood and larger Poway community, both aesthetically and functionally, and consistent with land use and zoning requirements. Sustainable & Energy Efficient In addition to being high-quality, the Authority expects the development to achieve sustainability and energy efficiency goals that meet or exceed the minimum requirements of the State of California Building Code. Affordability Requirements All units shall be affordable to lower-income households at rates consistent with California Health and Safety Code Section 50053. Income levels are defined using the income limits published by the California Department of Housing and Community Development (HCD) for extremely low, very low, Poway Housing Authority -Request for Qualifications ,~;;ii9 of ~nte Vista Project Site 4
December 15, 2020, Item #13and low-income households in San Diego County. The length of the affordability term shall be no less than fifty-five (55) years. Timeline Depending on submittals received, the Authority could select a Respondent at any time and immediately start negotiations. Submittals will be judged on the practicality and the Respondent's demonstrated ability to adhere to time schedules. Eligible Developer Respondents Eligible Respondents under this solicitation may include one entity or a team of several entities, including any of the following: affordable housing developers, joint ventures, resident services providers, or other service agencies. Respondents that include several entities must identify a lead entity which has demonstrated experience and capacity in the development and management of affordable housing, and must have successfully completed affordable projects of similar size and complexity as the proposed project within the past five years, preferably within San Diego County, to be eligible to submit a proposal. IV. SUBMITTAL REQUIREMENTS Submittal Overview The Authority reserves all rights with regard to this solicitation, including but not limited to the right to amend or modify this solicitation, reject all proposals, extend any dates, or, subject to an approved conveyance instrument, to initiate negotiations with the next most preferred Respondent if negotiations with the preferred Respondent do not result in an agreement. Should the Authority not receive qualified proposals of interest by a submittal deadline, it reserves the right to extend that deadline until qualified proposals of interest are received. Respondents are responsible for ensuring submittals are received by the Authority. All materials submitted during any part of the selection process becomes the property of the Authority. The Respondent may designate portions of its submittals, which contain proprietary data as "confidential", but the Authority cannot guarantee that it will be able to enforce such confidentiality. The Authority shall not be responsible for any costs and/or obligations incurred by and/or on behalf of a potential Respondent in preparing, submitting, or otherwise participating in any part of this RFQ, the selection, documentation, or the development process in its entirety. The Authority reserves the right to request clarification or additional information from Respondents. Information included in this RFQ is believed to be accurate but should be independently verified by potential Respondents prior to being relied upon. Qualifications and Proposal Content Submittals shall be comprised of five (5) copies of complete Respondent submission and one electronic copy encompassing all submission materials (e.g. flash drive). Any confidential/proprietary information must be placed in a separate sealed envelope, clearly labeled, if applicable. The evaluation and selection process will include two rounds, as follows: • Round One -Respondents shall provide all information requested below. A committee, comprised of City and Authority Staff and City consultants (the "Review Committee"), will Poway Housing Authority -Request for Qualifications 1;;;:;;~, of ~nte Vista Project Site 5
December 15, 2020, Item #13evaluate each response, after which some or all Respondents may be invited to participate in Round Two. • Round Two -An RFP will be issued to those Respondents selected to participate in Round Two and will be notified via email. The RFP may include, but is not limited to, fully developed design concepts, additional submittals, financing strategies and proformas, as well as an in-person interview. For the Submittal, at a minimum, please include the following information for Round One of the solicitation process: 1. Letter of Introduction: Include a summary of the Respondent's basic qualifications, experience, past projects of similar nature and size, and reason for interest in this opportunity. The letter must be signed by a principal or authorized officer including a statement that the officer may make legally binding commitments for the entity. 2. Detailed Description of Proposed Conceptual Project: Include sufficient detail and definition of concept to give the Review Committee enough information to have an idea of what the final development could contain and look like from a proposed architectural standpoint. Supporting market data and collateral materials may be submitted to support the proposed concept. The preferred method of Site control (lease vs. acquisition) must be outlined. 3. Team Members: Identify members of the development team and provide a brief description of each team member's role, including the following: • Principals involved in the project • Resumes of key team members A description of team member's proposed role and relevant experience with projects of similar nature and size and experience in and familiarity with development in Poway or surrounding areas • An organizational chart • Designation of lead contact for the team 4. Relevant Project Experience: A summary of current and previous experience of the team with regard to projects comparable both in size and uses. As appropriate, this information should include a project description, photos, or site plans, if available, land uses, dates completed, developer role, financing sources, duration of development processes, role of current employees in the project, and existing status as to ownership and leasing of current developments, percentage owned since project completion, and volume sold/leased. Additionally, please identify similar completed projects in the area that can be visited and provide a name and contact information as well. 5. Project Approach: A high level summary of the team's approach and anticipated timing related to planning, design, approvals, financing, phasing, development, construction, and operation. 6. References: An accurate list of no less than five references (name, title, entity, telephone number and contractual relationship to Respondent) that may be contacted with Poway Housing Authority -Request for Qualifications of ~nte Vista Project Site 6
December 15, 2020, Item #13respect to current and past project experience. One reference must be from a local government agency. 7. litigation History with Public Agencies: Provide information as to any litigation that any developer/development entity that comprises the overall team has had with public agencies over the last ten years. V. SELECTION PROCESS AND CRITERIA Evaluation Criteria The following criteria will be used as the primary basis for evaluating Respondent answers as part of Round One: • The Respondent's experience in formulating and implementing successful projects of similar scope and tenant mix. • The Respondent's demonstrated ability to implement projects that retain and authentically reflect local character. • The Respondent's track record, experience, and financial capacity to start and complete projects similar to those requested in this RFQ. • The Respondent's demonstrated ability to structure development and financial transaction structures, which minimize the City's and Authority's risk. • The Respondent's demonstrated ability to access capital for the proposed scope of development. • Experience of key project team members with similar projects. The following criteria will be used as the primary basis for evaluating selected Respondents' proposal as part of Round Two: • The criteria above, as well as the Respondent's development proposal including the proposed land uses/tenant mix, massing, financial structure, project valuation, initial financial proforma, supportive market data, quality of design and development, fiscal impact to the Authority and other taxing entities, and as applicable, project/site components to be provided by the City. In its consideration of the response to the Round Two RFP, the Authority may request additional information. Award Procedures • The Review Committee will evaluate responses to Round One of this solicitation. The Review Committee shall make selections for Respondents to advance to Round Two based on the Review Committee's evaluation of the Respondents' submittals. • The Review Committee will notify all Respondents but confirm with those that have been selected to advance to Round Two. • The Review Committee will rank project concepts in Round Two of this solicitation based on their judgment as to which proposals best satisfy the objectives expressed by the Poway Housing Author·ity -Request for Qualifications ~"'!I-~~ O ot,i~te Vista Project Site 7
December 15, 2020, Item #13Authority, as well as provide a desired potential development project and financial return for the Authority. The Review Committee shall present the evaluation results to the City Council and Authority Board, as appropriate, to make the final selection decision. • The Authority will pursue negotiations with the top-ranked Respondent with the goal of entering into one or more of a purchase and sale agreement, development agreement, a disposition and development agreement, or equivalent agreements effecting the conveyance of ownership and/or occupancy rights to preferred respondent. • The conveyance instrument shall include, among other relevant terms, the agreements between Authority and preferred Respondent regarding site acquisition or land lease, due diligence/escrow period, design of the project, schedule of performance (to include all anticipated discretionary approvals on the part of the City), and other business terms determined necessary or desirable for inclusion in the conveyance instrument to provide a scope of development acceptable to the Authority. • If the Authority and top-ranked Respondent cannot successfully negotiate and execute a conveyance instrument, then the Authority shall be free to pursue negotiations with the Respondent that next best satisfies the objectives and goals expressed by this solicitation, as determined by the Authority, or in its sole and absolute discretion proceed on alternative basis, or terminate the process. • The conveyance instrument will be presented to the City Council and Authority Board, as deemed appropriate, for a final decision regarding its approval. • As appropriate, the selected development team must comply with statutory and administrative requirements pertaining but not limited to zoning ordinances, subdivision requirements, fee schedules, and other applicable City, County, State and Federal codes and ordinances. • The Authority reserves all rights to modify or terminate the selection process, go outside of the selection process to select a developer, or not select a developer at all. This solicitation and selection process does not constitute any type of offer nor does it create any contractual or other liability to the City or Authority. There is no guarantee that an agreement(s) will be consummated, or that any project will be reviewed pursuant to this solicitation. Poway Housing Authority -Request for Qualifications ~~~~ 1 Oti~te Vista Project Site 8
December 15, 2020, Item #13Tentative Tlmellne Issuance of RFQ Tour of the Site Deadline for RFQ Submittals Review and Evaluation of RFQ Submittals; Selection of Round Two Respondents Issuance of RFP for those invited to participate in Round Two Deadline for RFP Submittals Review and Evaluation of RFP responses (including interviews); Review Committee recommendation Housing Authority Board to consider proposed Exclusive Negotiating Rights Agreement with preferred Respondent VI. SUBMISSION PROCEDURES Submission packages shall be submitted to: City of Poway/Poway Housing Authority Attention: Marie Sanders, Senior Management Analyst RE: RFQ -Monte Vista Road Affordable Housing Project 13325 Civic Center Drive Poway, CA 92064 Submissions received by email or fax will not be accepted. January 4, 2021 January 13, 2021 2:00pm PST January 27, 2021 5:00pm PST February/March 2021 April 2021 April/May 2021 5:00pm PST May 2021 June 2021 All submissions must be received at the above address by 5:00pm, January 27, 2021. Submissions received after this date and time will not be accepted and will not be opened. Submissions may not be modified after the due date. VII. ADDITIONAL INFORMATION Questions about this RFQ should be made in writing and submitted via email to Marie Sanders at msanders@poway.or~. Written responses will be distributed to all written questions received by 5:00pm, January 20, 2021. A copy of each question and its corresponding answer will be sent to all Respondents participating in this RFQ. No questions or request for information/clarification will be accepted by telephone. A tour of the Site, located at 12674 Monte Vista Road, is scheduled for Wednesday, January 13, 2021 from 2:00pm-3:00pm PST. Prospective Respondents that wish to participate will be required to RSVP and should send no more than two representatives. To comply with the County of San Diego's COVID-19 Order of the Health Officer and Emergency Regulations, all attendees shall practice social distancing and shall wear face masks for the duration of the tour. To RSVP, please email Marie Sanders at msanders@poway.or~ no later than Monday, January 11, 2021 and include the name of the representatives scheduled to be in attendance. Poway Housing Authority -Request for Qualifications 'lllii._~~•a-o;--;...,,,~..,r'.12 oti~te Vista Project Site 9
December 15, 2020, Item #13EXHIBIT A Poway Housing Authority -Request for Qualifications 'l~~~i-~~~-~•.3 0t,!~te Vista Project Site 10