10.E.
City Council Meeting - FINAL
- Meeting Date:
- 09/05/2017
- From:
- Patrick Brown, Senior Procurement Specialist, Management Services
Information
TITLE:
Consideration to Reject All Proposals: Sale or Lease of 303 Lone Tree Road RFP #2017-10
STAFF RECOMMENDED ACTION:
Reject all proposals as submitted for the Request for Proposals (RFP) #2017-10, Sale or Lease of 303 Lone Tree Road property.
Executive Summary:
The property at 303 Lone Tree was included with a City Request for Proposals (RFP) #2017-10 that was posted on November 1, 2016. Staff received direction from Council in June/July 2017 to include the same property on the Scattered Site Affordable Housing RFP in place of the Schultz property. To eliminate multiple solicitations for the same parcel, staff is requesting a rejection of all the bids related to RFP #2017-10.
Financial Impact:
Potential loss of revenue for the affordable housing program.
Policy Impact:
None
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
Council Goal: Affordable Housing – Support development and increase the inventory of public and private affordable housing for renters and home-owners throughout the community. Regional Plan Goal: NH.3. Make available a variety of housing types at different price points, to provide housing opportunity for all economic sectors.
Previous Council Decision on This:
November 25, 2014 - Council Work Session concerning possible property disposition
March 8, 2016 - Council Work Session - staff directed to put out RFP to identify commercial user to purchase or lease property with the resulting revenue to be utilized for affordable housing purposes
July 7, 2017 - Special Council Work Session in response to citizen's petition regarding Schultz parcel. Staff directed to include 303 Lone Tree parcel in Scattered Site Affordable Housing RFP.
March 8, 2016 - Council Work Session - staff directed to put out RFP to identify commercial user to purchase or lease property with the resulting revenue to be utilized for affordable housing purposes
July 7, 2017 - Special Council Work Session in response to citizen's petition regarding Schultz parcel. Staff directed to include 303 Lone Tree parcel in Scattered Site Affordable Housing RFP.
Options and Alternatives:
Do not approve rejection and direct staff to resurrect and continue with the RFP process involving the existing proposals on the property.
Background and History:
On March 8, 2016 Council gave staff direction to sell or lease the property located at 303 Lone Tree Road for purposes of funding affordable housing needs.
Purchasing staff posted a Request for Proposals on November 1, 2016, for the Sale or Lease of the property at 303 Lone Tree on the City website and advertised in the daily sun on November 6 and December 5, 2016. On February 1, 2017 purchasing received two responses to the RFP, and a committee of seven people, including two members outside the City, evaluated the proposals. After the evaluation committee conducted its initial evaluation of the proposals, staff intended to into executive session on June 28, 2017 to discuss the negotiation process, however that e-session was postponed.
At the May 27, 2017 Council Work Session, staff presented three sites for consideration to be developed for affordable housing needs. Council directed staff to prepare a RFP for the purposes of identifying a developer for multi-family affordable housing on the proposed sites.
On July 7, 2017, the City Manager offered Council the option to include the 303 Lone Tree property as part of the Scattered Sites Affordable Housing RFP. Council had the option to continue with the three original sites, add the Lone Tree property to the three sites, or remove the Shultz property from the three sites and replace it with the Lone Tree property. Council directed staff to proceed with the option of removing the Shultz property and adding in the Lone Tree property. As a result, the pending proposals received for the 303 Lone Tree property should be rejected.
Purchasing staff posted a Request for Proposals on November 1, 2016, for the Sale or Lease of the property at 303 Lone Tree on the City website and advertised in the daily sun on November 6 and December 5, 2016. On February 1, 2017 purchasing received two responses to the RFP, and a committee of seven people, including two members outside the City, evaluated the proposals. After the evaluation committee conducted its initial evaluation of the proposals, staff intended to into executive session on June 28, 2017 to discuss the negotiation process, however that e-session was postponed.
At the May 27, 2017 Council Work Session, staff presented three sites for consideration to be developed for affordable housing needs. Council directed staff to prepare a RFP for the purposes of identifying a developer for multi-family affordable housing on the proposed sites.
On July 7, 2017, the City Manager offered Council the option to include the 303 Lone Tree property as part of the Scattered Sites Affordable Housing RFP. Council had the option to continue with the three original sites, add the Lone Tree property to the three sites, or remove the Shultz property from the three sites and replace it with the Lone Tree property. Council directed staff to proceed with the option of removing the Shultz property and adding in the Lone Tree property. As a result, the pending proposals received for the 303 Lone Tree property should be rejected.
Key Considerations:
Rejection of the proposals will create the opportunity for the 303 Lone Tree property to be utilized for multi-family residential development and eliminates the potential of funding that would have been received for affordable housing via the sale or lease for commercial purposes.
Community Involvement:
Rejection of the proposals concludes the RFP process for commercial use of the parcel, allowing the RFP for Scattered Site Affordable Housing to proceed without a subsequent pending process for the same piece of property.
Expanded Options and Alternatives:
While there has been community involvement on this parcel related to the anticipated commercial development, there has not been any public participation related to the RFP rejection under consideration.