Agenda 02/24/2009 Item #16G 1
Agenda Item No. 16G1
February 24,2009
F'age 1 of 3
EXECUTIVE SUMMARY
Recommendation that the CRA Board reject the sole response received for Request for Proposal
(RFP) 08-5112 from Kaye Homes, Inc. to construct, market and sell moderately priced houses on
CRA-owned land; and to grant approval to the CRA staff to release a new RFP at a later date
through the Collier Purchasing Department
OBJECTIVE: Request that the CRA Board reject Request for Proposal (RFP) 08-5112 and sole
response from Kaye Homes, Inc. (hereinafter "Kaye Homes") to construct, market and sell moderately
priced houses on C~A.-owned land; and grant approval to the CRA staff to release a new RFP at a later
date,
BACKGROUND: On October 23, 2007 under item 1602 the CRA Board granted approval to the
CRA staff to work with the Purchasing Department to solieit bids for the construction, marketing and
sale of moderately prieed houses on CRA-owned lots as part of the residential infill project. As a
result RFP 08-5112 was released on August 12, 2008 with a builder's-option to either construct four
"Tum Key" homes not to exceed $800,000.00, inclusive of the builder's profit or construct three
homes not to exceed $600,000.00, inclusive of the builder's profit. Notices were sent to 459
prospective proposers and 99 firms downloaded the RFP.
CONSIDERATIONS: The only respondent to the RFP was Kaye Homes, Kaye Home's submittal
provided for two house plans; a single story and a two story. Neither plan met the requirements set-
forth in the RFP. The single-family plan was too large to fit on the CRA's small forty foot lots and the
two-story plan exceeded the maximum cost of construction. The Selection Committee expressed
concerns that the selling price and construction plans being proposed would not be viable on the CRA
lots, especially in today's economy. Kaye Homes strongly disagreed; however, due to the lack of
responses to the RFP, the Selection Committee agreed to give Kaye Homes the opportunity to work
with the CRA Staff and provide acceptable house plans and terms that Kaye Homes and the CRA Staff
could all agree on rather than going through the process of issuing a new RFP.
The CRA Staff and CRA Advisory Board members worked diligently with Kaye Homes to develop a
plan that would meet all the BMUD Overlay regulations and other requirements set-forth in the RFP,
but the negotiations were unsuccessful and no agreement could be reached regarding the selling price
and size of the proposed homes. The CRA Staff feels that the proposed plans do not meet the scope of
what the CRA initially envisioned (smaller homes built on the forty foot wide mobile homes lots
directly across the street from intense C-5 commercial uses). The houses being proposed are over-built
and over-priced for the area.
The CRA has been very successful in removing slum and blight and reducing crime in the area through
the acquisition of Jots with mobile homes and the removal of the dilapidated mobile homes. Although
the CRA Staff is excited about redeveloping these sites the economics and the large number of
"affordable" and "workforce" housing units on the market must be considered. Kaye Homes' proposal
relies on the CRA absorbing a loss of the entire cost of the land which equates to $380,000.00 in
addition to possible buy-downs above and beyond the $380,000,00 that will be w1known until the
houses are built and marketed for sale. Kaye Homes' proposal allows for Kaye Homes to make a
profit in the construction and sale of the homes, but does not take into account the losses to the CRA as
a result.
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i\1Emda :tem No. 16G 1
~ February 24, 2009
F'c1Ci8 2 of 3
The CRA Staff recommended rejection of the RFP to the Local CRA Advisory Board on February 3,
2009, because the housing proposed by Kaye Homes does not make good economic sense. The CRA.
Advisory Board agreed it was prudent to reject the RFP in order to make the appropriate clarifications,
modifications and/or amendments and issue a new RFP at a later date.
Pursuant to the terms ofRFP 08-5112, Item # 1, Instructions For Proposals. E through H, the County:
. Reserves the right to withdraw this RFP at any time and for any reason, and to issue such
clarifications, modifications, ancl/or amendments as it may deem appropriate. ((E)
Evaluation of Proposals (Procedure)).
. Receipt of a proposal by the County or a submission of a proposal to the County offers no
rights upon the Proposer nor obligates the County in any manner. ((E) Evaluation of
Proposals Procedure)).
. Acceptance of the proposal does not guarantee issuance of any other govemmental
approvals. Proposals which include provisions requiring the granting of zoning variances
shall not be considered. ((E) Evaluation of Proposals Procedure)).
. The County will not be liable in any way for any costs incurred by any proposer in the
preparation of its proposal in response to this RFP, nor for the presentation of its proposal
ancl/or participation in any discussions, negotiations, or, if applicable, any protest
procedures. ((G) Proposal, Presentation and Protest Costs).
. The right is reserved by the County to waive any irregularities in any proposal, to reject any
or all proposals, to re-solicit for proposals, if desired, and upon recommendation and
justification by Collier County to accept the proposal which in the judgment of the County
is deemed the most advantageous for the public and the County of Collier. ((H) Acceptance
or Rejection of Proposals).
FISCAL IMPACT: There is no expenditure ofCRA Trust Funds (Fund 187) by rejecting this RFP.
LEGAL CONSIDERA nONS: This item has been reviewed by the County Attomey's Office and is
legally sufficient for Board action. Additionally, this item is not quasi-judicial, requires no ex parte
disclosure, and requires only a simple majority vote for approval. (MMSS)
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with
this Executive Summary.
RECOMMENDA TION: That the CRA Board reject the sole response to RFP 08-5112 from Kaye
Homes and grant approval to the CRA Staff to release a new RFP at a later date through the Collier
County Purchasing Department.
Prepared By: David Jackson, Executive Director on February 4,2008
Bayshore Gateway Trianglc CRA
Page 1 of 1
Agenda Item No. 16G1
February 24. 2009
Page 3 of3
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
16G1
Item Summary:
Recommendation for the eRA Board to reject the sole response received for Request for
Proposal (RFP) 08-5112 from Kaye Homes to construct. market and sell moderately priced
houses on eRA-owned land; and to approve the eRA staff to release a new RFP at a later
date through the Collier Purchasing Department.
2/24/2009 90000 AM
Meeting Date:
Prepared By
David Jackson
Community Redevelopment
Agency
Executive Director
Date
Bayshore~Gateway Redevelopment
1/13/20092:35:27 PM
Approved By
David Jackson
Executive Director
Date
Community Redevelopment
Agency
Bayshore.Gateway Redevelopment
2/10/20094:26 PM
Approved By
Jeff Klatzkow
Assistant County Attorney
County Attorney Office
Date
County Attorney
2/11/20098:51 AM
A pproved By
Mike Hauer
Acquisition Manager
Date
Administrative Services
Purchasing
2/11/200911:42 AM
Approvt'd By
Steve Carnell
PurchasinglGeneral Svcs Director
Purchasing
Date
Administrative Services
2/11/20091:36 PM
Approvcd By
OMS Coordinator
OMS Coordinator
Date
County Manager's Office
Office of Management & Budget
2/11/20092:41 PM
Appro\-'cd By
Marjorie M. Student-Stirling Assistant County Attorney
County Attorney County Attorney Office
Date
2/13/200911 :02 AM
Approved B~'
Mark Isackson
Budget Analyst
Office of Management & Budget
Date
2/13/20093:14 PM
County Manager's Office
Approved By
James V. Mudd
r'_.._"".. 'n_____~
,",VUI '~1 'v'all"-~CI
Date
Board of County
Commissioners
County Manager's Office
2/13/20097:02 PM
file:l/C:\AgendaTest\ExDort\ 1 24-Februarv%2024. %202009\ 16. %20CONSENT%20AGEND... 2/18/2009