Placentia City Council
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DIRECTOR OF DEVELOPMENT SERVICES
DATE: OCTOBER 18, 2022
AGENDA REPORT
SUBJECT: PROFESSIONAL SERVICES AGREEMENT FOR REAL ESTATE ADVISORY
SERVICES FOR AFFORDABLE HOUSING DEVELOPMENT AT BAKER
STREET
FISCAL
IMPACT: AFFORDABLE HOUSING IN LIEU FUND :
AFFORDABLE HOUSING IMPACT FEE FUND:
TOTAL APPROPRIATIONS:
SUMMARY:
$36,691.70 (342534-6099)
$26,308.30 (682534-6099)
$63,000.00
On August 24, 2022, the City issued a Request for Proposals (RFP) for Real Estate Advisory Services for Affordable Housing Development on Baker Street. The specific City -owned properties include 323, 307, 312, and 414 Baker Street as well as evaluate options for the potential acquisition of additional private properties for a larger development. The RFP solicited interest among six (6) different companies that specialize in municipal real estate advisory services. After a thorough review of the proposals by the Evaluation Committee consisting of the Deputy City Administrator, Director of Development Services and the Assistant to the City Administrator, the Evaluation Committee recommends Keyser Marston Associates (KMA). This action authorizes the City Administrator to enter into a Professional Services Agreement with KMA for Real Estate Advisory Services for Affordable Housing Development on Baker Street.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve a Professional Services Agreement to Keyser Marston Associates for Real Estate Advisory Services for Affordable Housing Development on Baker Street in the amount of $63,000; and
2. Reject all other proposals, and
3. Approve Resolution No. R-2022-67, A Resolution of the City Council of the City of Placentia, California authorizing a budget amendment in Fiscal Year 2022-23 in compliance with City Charter of the City of Placentia §§ 1206 and 1209 pertaining to appropriations for actual expenditures; and
1.g.
Oct 18, 2022
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4. Authorize the City Administrator and/or his designee to execute all necessary documents, in a form approved by the City Attorney.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal to Promote Community and Economic Development under Objective #3.9, which is Facilitate Affordable Housing along Baker Street.
DISCUSSION:
On July 18, 2017, the City Council successfully adopted the Old Town Revitalization Plan. This zone change plan will improve and position the City's historic center to better connect with other areas of the City. Old Town Placentia is an asset to the City and is poised to be one of the City's key destinations. The plan will enhance the historic importance of the area and create public spaces and pathways making a cohesive small scale walkable urban village feel with retail, restaurants, offices, and residential areas. The Baker Street properties described in the RFP are within this zone change and are designated for high density residential development at 65 max density units per acre. This area is zoned for a maximum building height of four stories (55 feet) located along Baker Street and Walnut Avenue at the southwest corner of the Plan area, just north of the railroad tracks.
Request for Proposal Process
The Request for Proposal (RFP) was released on August 24, 2022 with a submission deadline of September 26, 2022. A total of six (6) firms met the deadline. The RFP included the following scope of services:
• Review and study the City owned properties at 323, 307, 312 and 314 Baker Street and the adjacent private properties upon award of contract. • Develop a comprehensive Request for Proposals (RFP) for the sale of the City owned properties at 323, 307, 312 and 314 Baker Street in a form acceptable by the City. Evaluate options for potential acquisition of additional private properties for a larger development. • Assist in the evaluation of the proposals and recommendation of a qualified developer. This includes scoring and verifying developer's experience in affordable/workforce housing development, reviewing developer's credit worthiness, portfolio and funds necessary to purchase the property, and schedule of performance, analyze various financial reports including but not limited to Pro forma analysis, development budget, cash flow analysis, and other economic analysis (e.g. fiscal impact reports, highest and best use, tax analysis.) • Assist in the real estate negotiations and in the development of an Exclusive Negotiation Agreement and/or a Purchase and Sale Agreement/Development Agreement in a form acceptable by the City and City's broker.
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• Participate in up to five (5) in-person meetings with City Staff and the Housing, Community and Economic Development Ad -Hoc Committee and up to five (5) City Council Closed Session/Open Session meetings for Real Property Negotiations. • Other tasks which may be requested by the City.
The submitted proposals were reviewed by an Evaluation Committee consisting of the Deputy City Administrator, Director of Development Services and the Assistant to the City Administrator.
The City's Evaluation Committee evaluated all proposals received in accordance with the firms' technical experience in performing work of a closely similar nature; record of completing the work on schedule; strength and stability of the firm; strength, stability, experience, and quality of the final product completed with other agencies. The City's Evaluation Committee also evaluated the depth of the firms' understanding of affordable housing review, the City's requirements, overall quality of work plan; logic, clarity, and specificity of work plan and variances proposed for the work plan; and the utility of technical or procedural innovations.
The RFP solicited interest among six (6) different companies that specialize in municipal real estate advisory services, as follows:
Firm
Total Proposal
Keyser Marston Associates
AECOM
$63,000
$74,550
Kosmont Companies
Alex L.P. Andres
$80,000-$100,000
$93,000
Economic & Planning Systems, Inc.
RSG
$125,000
$151,800
The Evaluation Committee was impressed by the quality of proposal received by KMA and their proven track record of expertise in affordable housing development real estate transactions among municipalities. Thus, the Evaluation Committee agreed that KMA would be the best qualified firm to assist the City with its real estate advisory efforts in securing an affordable housing developer for the Baker Street area. Should the City Council elect to award this contract, the City will begin to work with KMA to complete the tasks as outlined in the RFP's scope of work.
FISCAL IMPACT:
The proposed contract with professional services firm KMA is in the amount of $63,000. The Affordable Housing In -Lieu Fund has a balance of $36,691.70 and was used prior to the formation of the Affordable Housing Impact Fee Fund. This amount will be applied towards this agreement with the remaining balance of $26,308.30 allocated from the Affordable Housing Impact Fee Fund, of which sufficient funds exist for this agreement.
City Council/Successor Agency/ICDA Agenda
October 18, 2022
Prepared by:
Jan et srt-ga
Assistant to the City Administrator/
Economic Development Manager
Reviewed and approved:
c-
JenLampman
Director of Finance
Reviewed and approved:
J
h . Lambert
Director of Development Services
Reviewed and approved:
Damien rrula
City Administrator
Attachments:
1. Agreement with Keyser Marston Associates
2. Request for Proposals for Real Estate Advisory Services for Affordable Housing Development on Baker Street
3. Resolution R-2022-67