Item 248/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Ursula Luna-Reynosa
Dept:
City Manager Dept: Economic Development and
Housing
Date: 7/8/2025
Subject: Award of contracts to Keyser Marston Associates, Inc. and Tierra West Advisors, Inc. to provide financial feasibility consulting services. (Cost: Not-to- Exceed $100,000 per year/per contract) (Action Item)
OBJECTIVE
For the City Council to award contracts to Keyser Marston Associates, Inc. and Tierra West Advisors, Inc. to provide financial feasibility services.
BACKGROUND
The Economic Development and Housing Department (EDHD) anticipates further development of affordable housing and commercial reinvestment throughout the City. To facilitate high-quality development, EDHD utilizes specialists in various economic and fiscal disciplines to assist with project feasibility and analysis. The availability of on-call firms would provide for streamlining of future development projects in areas of affordable housing assistance, real estate transaction and property disposition.
DISCUSSION
A Request for Proposals (RFP) process was conducted to receive proposals from qualified firms with demonstrated skills and experience provid ing financial feasibility consulting in areas of pro forma analysis, project feasibility analyses, and other miscellaneous economic financial analyses, on an as needed basis. The RFP was advertised on May 9, 2025 and four (4) formal proposals were received by the May 27, 2025 deadline. An internal selection panel completed an evaluation and rated the proposals on the basis of qualifications, proposal quality, budget, time management, and prior record of performance with other Governmental Agencies.
Based on the evaluation results, staff identified two (2) distinct areas of technical expertise offered by each respective firm. Keyser Marston Associates, Inc. demonstrates an extensive expertise in affordable housing analysis, including policy and financial feasibility analyses. In Item 248/2025
contrast, Tierra West Advisors, Inc. specializes in real estate and economic development analysis, positing itself as a leader in these domains.
The following is a summary of the ratings:
Rater
RSG Harris and
Associates
Keyser Marston
Associates, Inc.
Tierra West
Advisors, Inc.
A 89 81 91 93
B 91 89 93 87
C 90 89 95 96
TOTAL 270 259 279 276
City references for each respective firm confirmed positive results in fiscal analysis services with previous and current client agencies.
1. Keyser Marston Associates, Inc. brings a complete range of financial analysis and consulting for development projects since 1973 with direct advisory services being provided to Garden Grove for over 23-years, most recently analyzing two potential affordable housing projects.
2. Tierra West Adviso rs, Inc. has over 40-years of experience providing real estate economic and financial analysis services and has advised the City’s Office of Economic Development on various projects in the past.
To date, EDHD has several commercial development and affordable housing projects currently in various stages of due diligence in which comprehensive economic analysis may be required.
Therefore, it is recommended that the two (2) economic consulting firms identified above should be selected and awarded contracts for financial feasibility services on an as -needed- basis.
FINANCIAL IMPACT
Each contract will be established for an initial one (1) year term, with a not-to-exceed amount of $100,000 per year , per contract and with the option to extend annually for a maximum performance period of up to five (5) years. The Funding for these contracts is included in the Economic Development and Housing Department’s adopted Fiscal Year 2026 and 2027 operating budget, and will be funded fr om a combination of the Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), Low and Moderate Income Housing Asset Fund (LMIHAF), and other available funds.
RECOMMENDATION
It is recommended that the City Council:
Award a contract for financial feasibility services to Keyser Marston Associates, Inc., in the not -to-exceed amount of $100,000 per year, for a total performance period of up to five (5) years;
Item 248/2025
Award a contract for financial feasibility services Tierra West Advisors, Inc., in the not-to-exceed amount of $100,000 per year, for a total performance period of up to five (5) years;
Authorize the City Manager, or designee(s) to execute the contracts referenced above, and make minor modifications as appropriate thereto, on behalf of the City; and
Authorize the City Manager, or designee(s) to exercise option year terms, sign the option year amendments , and make minor modifications as appropriate thereto, on behalf of the City.
ATTACHMENT(S)
1. FY 2025-26 Professional Services Agreement