HomeMy WebLinkAbout2002-07-22 City Council (7)C ty of Palo Alto
Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:
DATE:
SUBJECT:
CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
JULY 22, 2002 CMR:355:02
RECOMMENDATION TO SELECT EDEN HOUSING, INC AS THE
DEVELOPER OF AN AFFORDABLE RENTAL HOUSING PROJECT
ON A SITE TO BE SELECTED
RECOMMENDATION
Staff recommends that the City Council approve the selection of Eden Housing, Inc. (Eden)
as the developer for an affordable rental housing project on a site to be selected.
BACKGROUND
Given the City Council’s Top 5 priority of affordable housing development, Council
authorized the City Manager, on April 2, 2001, to identify a potential affordable housing
site for acquisition by the City. In the process of evaluating potential sites, staff determined
that a cooperative effort with a housing developer was necessary to do thorough and
effective feasibility studies leading to acquisition. The developer and architect’s expertise
with site planning is valuable in determining the appropriate housing type, unit mix and
sizes on a particular site. In addition, some financing sources suitable for land acquisition
costs can only be accessed by the developer itself.
DISCUSSION
Request for Qualification Process: In December 2001, staff issued a Request for
Qualifications (RFQ) for an experienced affordable rental housing developer capable of
designing, financing, building and operating medium to large affordable rental housing
and!or mixed use projects. The RFQ was sent to 19 housing developers, both for-profit and
non-profits, specializing in subsidized rental housing. Seven developers, including one for-
profit developer, responded by the January 25, 2001 due date with submittals. The list of
responding developers and those that attended the interviews is attached.
CMR: 355:02 Page 1 of 3
Selection Process: Interviews were conducted in late February by an evaluation committee
composed of Planning and Real Property staff, a representative of the Planning
Commission, local housing advocates and a local, market-rate rental housing real estate
professional. One responding developer, the Housing Authority of Santa Clara County,
withdrew from the selection process prior to the interviews due to changes in its staffing
and the need for it to focus efforts on the Opportunity Center project.
All of the developers interviewed were well qualified and experienced. The committee
focused on the developers’ past experiences and successes with securing sites in difficult
markets; experience with transit-oriented and mixed-use housing; ability to effectively use
City housing subsidies; and sensitivity to neighborhood concerns and community processes.
The committee, closely examined each developer’s staff capacity and availability. Its
financial statements were reviewed to evaluate net worth and working capital. Experience
with sophisticated financing techniques was also an evaluation factor.
While the evaluation committee was impressed with all six of the developers interviewed,
three were recommended to the City Manager as best meeting the selection criteria. The
City Manager then discussed with staff the submittals and the interview presentations and
responses and concluded that Eden Housing, Inc. should be recommended to the Council
for selection. This decision was based on Eden’s:
,Understanding of site control strategies;
®Experience with higher density, transit-oriented and mixed use housing;.
®Staffing and financial capabilities; ’
.Ability to manage community involvement.
RESOURCE IMPACT
There is $50,000 in Commercial Housing In-lieu Funds budgeted for housing site
investigations and studies. These funds will be used for Eden’s out-of-pocket costs for
architectural services and other consultants to determine feasibility and schematic site
plans.
POLICY IMPLICATIONS
This recommendation is consistent with existing Council policy in support of affordable
housing activities as a Top Five priority.
TIMELINE
The feasibility study phase is expected to extend three to six months. After control of a site
is achieved, then staff will return to Council with a detailed financing plan and Budget
Amendment Ordinance and a predevelopment agreement with Eden.
ENVIRONMENTAL REVIEW
The recommended action is not subject to environmental review.
will be conducted as part of the feasibility work.
Environmental review
CMR: 355:02 Page 2 of 3
ATTACHMENTS
A., List of Responding Developers and Developers Interviewed
PREPARED BY:
Catherine Siegel,,Housing linator
DEPARTMENT HEAD REVIEW: ~
~P-HEN EMSLIE
Director of Planning and Community Environment
CITY MANAGER APPROVAL:
EMILY gON
Assistant City Manager
CC:Members of the Evaluation Committee
Eden Housing, Inc.
Peninsula Interfaith Action, c/o Beverley Benson
CMR: 355:02 Page 3 of 3
ATTACHMENT A
LIST OF DEVELOPERS RESPONDING AND INTERVIEWED
1)Charities Housing, Inc.
2)Eden Housing, Inc.
3)First Community Housing, Inc.
4)Housing Authority of the County of Santa Clara (withdrew prior to interviews)
5)Mid-Peninsula Housing Coalition (MPPC)
6)Palo Alto Housing Corporation (PAHC)
7)Simpson Housing Solutions