Attachment No. 3
City of Pomona
Request for Proposals (RFP)
“DOWNTOWN DEVELOPMENT OPPORTUNITY SITE”
RFP Distribution: ______, 2022
Deadline for Submission: _______, 2022
Issued By:
City of Pomona
505 s. gAREY aVENUE, bOX 660
Pomona, California 91769
Contact:
kIRK PELSER, dePUTY cITY mANAGER
909.620.2363
[email protected]
Table of Contents
I. Introduction & Summary 1
II. Submission Procedures 1
III. Guiding Principles 2
IV. Submission Requirements 3
A. Overall Approach 3
B. Scope of Development 3
C. Conceptual Design Submissions 4
D. Market Feasibility Analysis 4
E. Financial Analysis 4
F. Development Implementation 8
V. Selection Criteria 8
A. Development Strategy 9
B. Conceptual Design 9
C. Financial Viability 9
VI. Selection Procedures 9
VII. Amendments 10
VIII. Cost Liability 10
IX. Statement of Rights and Understanding 10
Introduction & Summary
The City of Pomona “City”, owns properties that total approximately 2.5 acres of land area and consists of ten contiguous parcels in Downtown Pomona. The Development Site is currently improved surface parking lots, vacant land and one historic three story (including basement) commercial building. To comply with the Surplus Land Act, as codified in Government Code Sections 54220 – 54234, the City declared the Development Sites as surplus land under the “Exempt Surplus” procedures defined in Government Code Section 54221(f)(1)(F)(ii).
On ________, 2022 the City distributed a Request for Qualifications/Proposals (RFQ/P) to “Housing Sponsors” as defined in California Government Code Section 54222(a)(1), and published these to any other interested parties via PlanetBids.com . The submissions deadline was set at _______, 2022, and thereafter the submissions were evaluated by City staff and consultants. Based on the evaluation results ____ developer teams were selected to proceed to the Request for Proposal (RFP) stage.
The RFQ/P provided detailed contextual information on Pomona in general and the Downtown Pomona area in specific. It is the intent of this RFP to provide details on the City’s guiding objectives, submission requirements, and the process that the City will use to evaluate submissions. This RFP process will be used by the City to select the most qualified developer team that best meets the requirements of this RFP based on the submitted materials and who best demonstrates the capability to successfully deliver the proposed scope of development.
Submission Procedures
In order to be deemed responsive to this RFP, developer teams must submit twelve (12) hard copies of all the submission documents identified in this RFP and one electronic version of the proposal in a PDF format.
To be considered responsive, RFP responses must be received prior to 3:00 pm on __________, 2022
RFP responses shall be submitted to:
Kirk Pelser, Deputy City Manager
City of Pomona
505 S. Garey Avenue, Box 660
Pomona, California 91769
Any questions, technical or otherwise, pertaining to this RFP must be submitted to Kirk Pelser at: [email protected] The City has developed the following conceptual timeline for this RFP process:
The RFP is distributed to the three finalist developer teams ______, 2022
The RFP responses are due to the City no later than 3:00 pm ______, 2022
Developer team presentations to City staff and consultants ______, 2022
City Council and Housing Authority Board consider selecting a developer team ______, 2022
City Council and Housing Authority Board consider entering into an Exclusive Negotiating Agreement in closed session ______, 2022
City Council and Housing Authority Board consider entering into an Exclusive Negotiating Agreement in open session ______, 2022
Note: All dates are subject to change
Guiding Principles
The guiding principles that have been defined by the City for the Development Sites include the following:
The target total unit count is set at not less than 300 units, with a mix that approximates the following:
Up to 75% unrestricted market-rate ownership residential units; Not less than 25% Low and Very Low Income units that total at least 25% of the total residential unit count in the project.
Ground-floor retail or other commercial uses that complement and enhance the livability of the residential units and the Downtown Pomona area overall.
A dedicated open space component.
Replacement and efficient sharing of public parking.
Partnership with City and other entities for funding and implementation of Downtown streetscape improvements, Greenway Trail bicycle connectivity, and local public transit.
For more critical details related to the Development Site, Public Objectives, General Plan/Zoning, Development Impacts, Scope of Development and Other Site Considerations, please consult the companion RFQ.
Submission Requirements
The following sections of this RFP describe the information that the developer teams are required to submit.
Overall Approach
Provide a statement that describes:
The developer team’s understanding of the Downtown Pomona area including its strengths, weaknesses, opportunities, and constraints; The relationship the development will have to the surrounding uses, including historic resources; The role the development will play in enhancing the surrounding area; and The developer team’s goals for this multi-use development.
Scope of Development
Provide a narrative description of the proposed development scope for each building site, including:
The type of use;
The building height(s);
The number and type of residential units;
The income and affordability restrictions to be imposed on the residential units; The square footage and type of commercial space;
The type and number of parking spaces; and
The scope of the infrastructure, public transit, streetscape and dedicated open space improvements. Please include a description of how the public transit may facilitate reduced parking requirements.
Conceptual Design Submissions
The following design documents are required to be submitted:
A conceptual plan on a single 30” x 40” board that will be used in the presentation to the City staff and consultants on _____, 2022.
The following conceptual plans are to be included within the RFP response:
Site plans and floor plans illustrating proposed site and building configurations; and Elevations and/or perspective renderings of the proposed multi-use development that illustrates building massing and architectural character.
Market Feasibility Analysis
Provide descriptions of the following:
The market feasibility of each residential and commercial use proposed to be included in the development; and The strategy for making the proposed uses successful while acknowledging potential concerns or issues.
Financial Analysis
The following submissions are intended to provide the City with insight into the developer team’s financial approach to structuring the various development components.
Investment Parameters
Provide estimates of the predevelopment capital that will be required, and the sources of that capital.
Prepare sources and uses of funds statements for each development phase:
Identify any outside assistance sources that are anticipated to be obtained, and provide self-scoring evaluations for any funding sources that are competitively awarded:
As discussed in the Guiding Principles, the City anticipates that the selected development will include sustainable infrastructure improvements in the project scope. To defray the costs of these improvements, the City wishes to select a proposal that includes a development scope that will be competitive for receipt of an Affordable Housing Sustainable Communities (AHSC) award.
The proposed project is required to include approximately 75 rental apartment units that will be subject to long-term income and affordability covenants. It is assumed that the selected developer team will apply for Low Income Housing Tax Credits as a funding source for those rental apartment units.
Identify any other outside assistance sources that are anticipated to be used to fund project costs.
Identify any financial assistance that is anticipated to be requested from the City, and describe the structure and methodology under which this assistance will be repaid.
Describe the structure under which the City owned land is proposed to be conveyed to the developer team.
Identify any financial contingencies the developer team is imposing on the proposal being submitted in response to this RFP.
Pro Forma Analyses
Separate pro forma analyses must be submitted for each development phase. These pro formas should be accompanied by summaries of notes and assumptions that will assist the City in understanding the assumptions that were applied in the analyses.
As pertinent, the pro forma analyses must include the following components:
Construction Cost Analyses
Provide the following construction cost estimates for each development phase:
Direct construction costs:
Off-site improvements including the developer’s proposed contribution to streetscape improvements, Greenway Trail bicycle connectivity, and local public transit; The improvements associated with the dedicated open space component; Parking improvements required to serve the development and replacement parking for existing public parking spaces that will be eliminated by the development; Building costs;
Amenities costs; and
Contractor related costs.
Indirect costs such as:
Architectural, engineering and consulting fees;
Public permits and fees costs;
Taxes, insurance, legal and accounting costs;
Marketing costs; and
Contingency allowances.
Developer Fee amount and payment structure.
Financing costs:
The construction loan amount and the underwriting terms associated with the loan; The permanent loan amount and the underwriting terms associated with the loan; and The equity contribution to the project and the threshold return requirements imposed on the contribution.
Revenue Analyses
Ownership Housing Component (if applicable)
Projected market rate sales revenues disaggregated by unit type; Projected sales prices for the moderate income units based on 2021 data and the Health and Safety Code Section 50052.5 calculation methodology; and Projected absorption period.
Rental Apartment Component
Stabilized net operating income:
Estimated rents by unit type for the very-low and low income rental apartment units based on 2021 data and the Health and Safety Code Section 50053 calculation methodology; Estimated miscellaneous income generated from other revenue sources; Estimated vacancy and collection allowance;
Estimated operating expenses for the first stabilized year of operation; and Estimated payments to parties related to the developer team. 55-year cash flow projection:
Estimated rent escalation factor;
Estimated escalation factors for other revenue sources; Estimated operating expense escalation factor;
Annual debt service payment obligations;
Estimated repayment of any deferred Developer Fee amount; and Identification of any payments to parties related to the developer team and/or investors.
Commercial Component
Estimated rents by product type;
Estimated common area maintenance reimbursement revenues by product type; Estimated annual operating expenses; and
Estimated annual debt service payments.
Development Implementation
Provide a preliminary schedule of performance that outlines:
Critical milestones anticipated through the development’s completion; The process and timing of applications for the proposed funding sources; A phasing plan; and
Performance triggers that the developer team is willing to accept in order to retain its rights to receive conveyance of property and to develop subsequent phases of the development.
Selection Criteria
All RFP packages submitted by _________, 2022 at 3:00 pm will be reviewed and evaluated by the City staff and consultants based on the information contained in the respective proposals. In addition, each team will be invited to make a public presentation on __________, 2022 to the City staff and consultants that are participating in the evaluation process.The selection criteria that will be employed by the City staff and consultants can be described as follows:
Development Strategy
The proposal must demonstrate a thoughtful and realistic understanding of the market and financial opportunities and constraints, as well as a thorough understanding of the income and affordability requirements being imposed by the RFP. In addition, the City will evaluate the developer team based upon their selection of specific land uses and product types, their understanding of the infrastructure requirements and open space requirements, and the extent to which a compelling, synergistic and catalytic development will be created.
Conceptual Design
The evaluation of proposed conceptual designs will be based on the developer team’s understanding of the Downtown Pomona area context. Specifically, the evaluation will consider the relationship the development will have to the surrounding uses and the role the development will play in enhancing the surrounding area.
Financial Viability
The financial viability evaluation will be based on the following factors:
The developer team’s demonstrated ability to obtain the funding sources being proposed to finance the proposed project; The reasonableness of the developer team’s financial assumptions related to development costs and potential revenue sources; and The potential for the proposed development to be financially viable over the long term.
Selection Procedures
The City staff and consultants will make a recommendation to the City Council to either recommend the selection of a developer team, or to reject all proposals and terminate the RFP. However, the final selection decision will be made, if at all, by the City Council. All teams will be notified in writing of the final decision.
If a final selection is made, the City expects to enter into an Exclusive Negotiating Agreement (ENA) with the selected developer team. The ENA period will be used to refine the cope of development, to have the property appraised based upon the criteria of this process and the agreed upon scope of development and to negotiate a Disposition and Development Agreement that will spell out the conveyance terms for the Development Sites, the required scope of development, development entitlements, California Environmental Quality Act compliance, and a schedule of performance.
Amendments
Any amendments to this RFP will be issued through the City and will be emailed to each developer team. The City will not be bound by any oral statements or modifications. If this RFP is amended, all terms and conditions that are not modified will remain unchanged. Each developer team will be required to acknowledge receipt of each amendment to this RFP in writing by including a statement to such effect in its RFP submittal.
Cost Liability
The City is not liable for paying or reimbursing any costs incurred by the respondents in the review or submission of a response to this RFP. This includes, without limitation, all costs incurred by the developer team in its response to this RFP, in response to any request for information made by the City throughout the selection process, in negotiating with the City on any matter related to this RFP, or otherwise, unless specifically agreed to in writing by the City.
Statement of Rights and Understanding
The City may, in its sole discretion, exercise the following rights and options with respect to this RFP:
To accept, reject or negotiate modifications to any and all submissions as it shall, in its sole discretion deem to be in its best interest:
Submission of an RFP does not bind the City to any action or to any party.
Submissions do not create or assume any relationship, agency or obligation by the City, its officers or employees.
To issue additional solicitations for proposals and/or addenda.
To negotiate with any one or more of the respondents.
To waive any irregularities in any submission.
To select any submission as the basis for negotiations, and to negotiate with respondents for amendments or other modifications to their submission.
RFP: Downtown Site
Page i
City of Pomona
2022
RFP: Downtown Site
City of Pomona
2022