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WITHDRAWN-Recommendation to: 1) Direct Staff to Conduct a Four-Week Request For Qualification Solicitation Process for the Development of the West Midway Project; 2) Appoint a City Council Ad Hoc Subcommittee to Work with Staff to Review Proposals and Make Final Recommendations to City Council; and 3) Approve Debbie Potter, Community Development Director; Michelle Giles, Base Reuse Manager; and Lisa N. Maxwell, Assistant City Attorney, as Designated Real Property Negotiators for West Midway Project. (Base Reuse 819099) [This item will not be heard at the January 7, 2020 meeting]
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To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
Staff recommends that City Council direct staff to conduct a four-week Request for Qualifications (RFQ) solicitation process for development of the West Midway project (West Midway Project). The finalist from the previous solicitation process, Alameda Point Partners (APP), withdrew from the process to focus on the execution of Site A. The Collaborating Partners (as described in the RESHAP Disposition and Development Agreement) of the Rebuilding of the Supportive Housing at Alameda Point project (RESHAP Project), after exploring other funding options for the RESHAP Project, have requested that staff initiate a new RFQ process.
BACKGROUND
On July 10, 2018, City Council authorized staff to issue an RFQ for development of the West Midway Project at Alameda Point, comprised of a 22.8-acre area within the Main Street Neighborhood sub-district, located south of West Midway and bounded by Main Street on the east, Pan Am Way on the west and West Tower to the south (Exhibit 1). The selected developer of the site will construct the necessary backbone infrastructure for the RESHAP Project, the 267-unit affordable housing project that will replace the existing 200-unit Alameda Point Collaborative (APC) community.
On September 24, 2018, the City of Alameda (“City”) received seven qualified responses in response to the RFQ. Staff and community partners evaluated the responses and interviewed the top four development teams. On February 2, 2019, the City Council narrowed the field to two finalists: 1) APP (a partnership of Trammel Crow Residential (TCR) and srmErnst Development Partners (SRM)); and 2) Jamestown/Cypress Equity Investment (CEI).
On March 11, 2019, the two developer teams notified staff that they were having initial discussions about a development partnership and requested additional time to determine if this approach was a viable alternative. On May 6, 2019, the two developer teams submitted a combined response to the supplemental questions, a preliminary program description, and partnership organizational structure.
On May 21, 2019, staff was informed by Jamestown that it was withdrawing from the developer selection process due to uncertainty regarding the viability of commercial development, given the project phasing and increased costs of infrastructure.
On July 16, 2019, City Council selected APP as the developer for West Midway. On September 19, 2019, the City received a letter from APP withdrawing as developer of West Midway to focus on Site A.
DISCUSSION
Since the withdrawal of APP, the “Collaborating Partners” (Alameda Point Collaborative, Operation Dignity, and Building Futures) have explored potential options for funding the backbone infrastructure and developing the RESHAP Project on their own. One option they looked at was the new State Infill Infrastructure Grant (IIG). After further research, it was determined that their preliminary self-score was too low to qualify to submit an application. Areas where points could not be maximized included public transit that comes at least every 15 minutes during peak commute times (this will happen in the next 8-10 months when “day one” service commences at Site A), lack of density, and the absence of pro-housing policies as defined by the State.
While the Collaborating Partners continue to research other public/private financing for large infrastructure projects, they have asked the City to re-start the RFQ process for retaining a private sector development team as they do not believe it is feasible to move forward on their own.
Given the importance of the RESHAP project and the Collaborating Partners conclusion that a private sector partner is needed to move the project forward, staff recommends that the City Council re-start the West Midway project and select a developer, who can work with the City and the Collaborating Partners, to undertake this effort and see it to conclusion. Staff has identified a range of options for re-starting the project which are discussed below.
In addition, under Government Code Section 54956.8 under Title 5, Division 2, Part 1, Chapter 9, the City Council must identify its real property negotiators for the West Midway Project, which are recommended to be Debbie Potter, Community Development Director; Michelle Giles, Base Reuse Manager; and Lisa N. Maxwell, Assistant City Attorney.
ALTERNATIVES
There are several options for moving forward with a developer selection process that City Council can consider:
Reconsider the three other proposals submitted as part of the 2018 solicitation that were not short-listed and select one based on their original or updated submittal.
1. Select one of the two short-listed developer teams (Catellus or Brookfield) based on their 2018 RFQ submittal/or an updated submittal. Both Catellus and Brookfield have expressed continued interest in the project.
2. Select, on a sole source basis, a recent unsolicited proposal from CEI, co-owner of Site A, developer of Block 9 and co-developer of Block 11, who is interested in doing a 500,000 square feet life sciences project in addition to residential development at West Midway.
3. Initiate another expedited (3-4 weeks) RFQ process and encourage all of the teams to resubmit qualifications. As part of the RFQ process, that City Council could consider appointing an ad hoc subcommittee of Councilmembers to work with staff to review proposals received and make a final recommendation to City Council.
Staff recommends that the City Council direct staff to initiate an expedited four-week RFQ process and appoint an ad hoc subcommittee of Councilmembers to work with staff to review proposals received and make a final recommendation to City Council. This approach ensures that any interested party has an opportunity to submit a proposal, while also encouraging those developers who continue to be engaged to participate in the process. Staff anticipates concluding the selection process and bringing a final recommendation to City Council in the first quarter of 2020.
FINANCIAL IMPACT
There is no financial impact to the City’s General Fund related to the recommendation to re-start the solicitation process for the development of West Midway.
MUNICIPAL CODE/POLICY CODUMENT CROSS REFERENCE
The recommended action is consistent with the General Plan, Zoning Ordinance, Main Street Plan, and RESHAP Disposition and Development Agreement.
ENVIRONMENTAL REVIEW
No environmental review is required as recommending a RFQ process is not a project as defined under California Environmental Quality act (CEQA). CEQA Guidelines, section 15378(a).
CLIMATE IMPACTS
There are no climate impacts associated with the recommendation of a RFQ process. Climate impacts and associated mitigation measures will be addressed during the entitlement phase of the project.
RECOMMENDATIONS
It is recommended to: 1) Direct staff to conduct an expedited four-week RFQ solicitation process for the development of the West Midway Project, 2) Council consider appointing a City Council ad hoc subcommittee to work with staff to review proposals and make final recommendations to City Council, and 3) approve Debbie Potter, Eric Levitt, Michelle Giles and Lisa N. Maxwell as designated real property negotiators for the West Midway Project.
CITY MANAGER RECOMMENDATION
The City Manager concurs with the Community Development Director’s recommendation for an expedited RFQ solicitation process for the development of the West Midway Project.
Respectfully submitted,
Debbie Potter, Community Development Director
By,
Michelle Giles, Base Reuse Manager
Financial section reviewed by,
Elena Adair, Finance Director
Exhibit:
1. Map of the West Midway Area
Cc: Eric Levitt