Consideration and Approval to begin Contract Negotiations:  Authorization to begin contract negotiations for the Flagstaff Pulliam Airport 31.45 acre parcel for master developer services.  

The City issued a procurement solicitation in August 2020 in the form of a Request for Statement of Qualifications (RSOQ) to identify qualified master developers for 31.45 acres of vacant land adjacent to the Flagstaff Pulliam Airport. The solicitation closed on September 15, 2020. After the RSOQ closed, an evaluation panel reviewed the submitted responses received. Final evaluation scores were tabulated in November of 2020 and Genterra Enterprises, LLC (“Genterra”) was determined to be the highest scoring candidate,
 
City staff is now recommending that Council direct staff to proceed with contract negotiations with Genterra with the developer for master developer services. Any proposed contract resulting from the negotiations will be presented to City Council for review and approval. This process will likely take several months.  Any proposed contract will need to address proposed development, design elements, marketing plan, compensation structure, leasing terms, and ongoing marketing and management of the property.
 
If the City and Genterra are unable to reach an agreement, then the City may commence contract negotiations with the next highest scoring candidate identified during the RSOQ process. Miramonte Homes and Kentwood Ventures (Joint Venture).

None at this time. The City does not have budgeted funding to pay for master developer services. As part of contract negotiations, the parties will reach an agreement as to compensation, with the desire that compensation be paid from revenues generated by the development. All revenue received by the City after costs associated with the project will be used to support the Airport.

Regional Plan Alignment:
The Regional Plan considers this an Employment Area and the uses outlined in the RSOQ are consistent with use as an Employment Area.

Priority Based Budgeting - Priority and Objective Alignment:
Sustainable, Innovative Infrastructure

• Utilize existing long-range plan(s) that identify the community’s future infrastructure needs & all associated costs.
• Provide effective management of and infrastructure for all modes of transportation

Robust Resilient Economy

• Attract employers that provide high quality jobs and have a low impact on infrastructure and natural resources. 

Yes, in April 2020 Council provided direction to proceed with a procurement to identify a Master Developer to develop the parcel and be informed by the analysis presented.

1. Direct staff to proceed with contract negotiations with Genterra (recommended);
2. Reject all responses and direct staff to take other action (e.g. issue a new solicitation, or direct staff to sell property).

The City of Flagstaff (COF) owns 31.45 acres of undeveloped property on the Flagstaff Pulliam Airport. The property is identified as Assessor’s Parcel Number 116-61-006A and is located east of Interstate 17, northwest of John Wesley Powell Boulevard, and southwest of South Pulliam Drive.

This property was released by the Federal Aviation Administration (FAA) in 1989 and may be developed or sold. Any revenues derived from the property should benefit the Airport. Residential use was discouraged by the FAA due to the proximity to the airport. The revenue generated from this parcel will directly support airport operations.

In September of 2019, Coffman & Associates with ESI Corporation conducted a market assessment of the 31.45-acre airport parcel. This assessment provided multiple options for the optimal disposition of this parcel including sale, lease, and other considerations for development and offered best potential uses of the land. 

In April of 2020, Council provided staff direction to solicit potential master developers through a Request for Statement of Qualifications (RSOQ) process to develop the 31.45-acre airport parcel and maintain ownership of this parcel. 

Purchasing staff published a Request for Statement of Qualifications (RSOQ) solicitation for Master Developer Services for the Flagstaff Pulliam Airport 31.45 acre parcel in the Arizona Daily Sun on August 16 and 23, 2020 and posted the solicitation to the City of Flagstaff’s PlanetBids Website on August 11, 2020. On September 21, 2020, the City received 2 Statements of Qualifications (SOQs) from Master Developer firms.

A seven- member Selection Committee reviewed and evaluated the qualifications of the respondents, using the following evaluation criteria: Previous project experience, team qualifications, financial capacity, and adherence to vision.

Based upon the numerical scoring of the written SOQs, the Selection Committee identified the most qualified Firm to perform the Master Developer services for the Project and recommended to commence negotiations for a scope and fee proposal to be provided by Genterra Enterprises, LLC. Final scores of all firms are as follows:

• Genterra Enterprises, LLC: 647 points
• Miramonte Homes and Kentwood Ventures (Joint Venture): 508 points

Genterra Enterprises, LLC demonstrated, a clear recognition of the knowledge and clearly outlined the experience needed to represent the COF’s vision in this undertaking, as well as understanding the schedule and collaboration requirements for completing this project.