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Agenda 07/09/2019 Item #11D (ITN #19-7556 w/McDowell Housing Partners, LLC)07/09/2019 EXECUTIVE SUMMARY Recommendation to approve the selection committee ranking for Invitation to Negotiate No. 19- 7556 for “Bembridge PUD Affordable Housing Land Development” and authorize staff to enter into negotiations with the top-ranked firm of McDowell Housing Partners, LLC and, in the event that an agreement cannot be reached with that firm, to continue negotiating with the remaining firms in ranked order to obtain a proposed agreement, which will be brought back to the Board of County Commissioners for consideration at a subsequent meeting. OBJECTIVE: To increase the supply of housing that is affordable by making available surplus Collier County-owned land for the development of housing. CONSIDERATIONS: On February 6, 2019, the Procurement Services Division issued a notice of Invitation to Negotiate (“ITN”) No. 19-7556 “Bembridge PUD Affordable Housing Land Development.” The County notified 23,864 firms, 114 firms downloaded the bid information and staff received eight (8) proposals by the April 10, 2019 submission deadline. Staff found all the following eight (8) firms to be responsive and responsible. Fl Star Construction, LLC Flaherty and Collins (F&C), Development, Inc. Gorman and Company, LLC Habitat for Humanity of Collier County, Inc. JHM/RHD Naples, LLC Landmark Development Corp. McDowell Housing Partners, LLC Wendover Housing Partners, LLC Thereafter, the Selection Committee met on May 21, 2019, scored the proposals, and shortlisted the below firms to move on to oral presentations. Company Name Preliminary Ranking McDowell Housing Partners, LLC 1 JHM/RHD Naples, LLC 2 Gorman and Company, LLC 3 Landmark Development Corp.* 4 Habitat for Humanity of Collier County, Inc. 5 *Landmark Companies withdrew from consideration prior to the oral presentation round. On June 12, 2019, the Selection Committee reconvened for the oral presentations and arrived at the below listed final recommended ranking. Each firm will present at the July 9, 2019 BCC Meeting. Company Name Final Ranking McDowell Housing Partners, LLC 1 JHM/RHD Naples, LLC 2 Habitat for Humanity of Collier County, Inc. 3 The top three (3) ranked developers have varying proposals. Two (2) of the proposals are for rental and 11.D Packet Pg. 119 07/09/2019 one (1) is for a homeownership development. The proposals request County contributions ranging from $0 to $600,000, and varying requests for impact fee deferrals and other incentives. Below is a high -level summary of each proposed project and financing: McDowell Housing Partners, LLC (hereafter, “McDowell”) McDowell has developed, owned and operated over 45,000 apartment units across the Country and 2,000 units in Florida since 2004; the majority are workforce and affordable housing. McDowell is proposing a 78 unit rental development serving clients with incomes between 30%-80% AMI ($25,750-$62,650 for a family of four (4)). McDowell proposes two (2) buildings with a maximum of three (3) stories, and amenities such as pool, clubhouse, shuffleboard, and playground. The developer is flexible with the unit and income mix. McDowell has agreed to a minimum 10% set aside for seniors, veterans, and/or special needs population. McDowell does offer the option for all 100% senior development. The developer is proposing a 9% or 4% tax credit project, using State of Florida SAIL funds, and in addition, is requesting a County financial contribution to support its Local Government Opportunity Area (“LGOA”) application ranging from $0 - $100,000. The developer is also proposing, if successful in securing a 9% tax credit deal, to pay the County up to $1.5M for the Bembridge property. McDowell Housing has been successful in securing 16 deals in the past with Florida Housing Finance Corporation, six (6) for SAIL funding. McDowell is a Select Sponsor with Freddie Mac, a coveted designation identifying firms with effective housing financing strategies. JHM/RHD Naples, LLC (hereafter, “JHM”) JHM has been developing properties throughout the United States since 1977. The developer currently operates three (3) properties, totaling 626 units, here in Collier County; Summer Lakes I & II, and College Park. Both are affordable housing developments. JHM is proposing 72 rental units with incomes up to 80% AMI. JHM proposes three (3) buildings with a maximum of three (3) stories, an d amenities such as pool and clubhouse, fitness, business center, and tot lot. The developer has agreed to set aside two (2) rental units for the elderly and 11 for those with special needs. The cost to the County varies based on incentives and tax credit financing. Its initial proposal includes a 4% tax credit project, but JHM is amenable to considering a 9% tax credit project (more competitive). In addition, JHM requests a County financial contribution to support the LGOA application up to $600,000, and potential tax abatement, deferral or elimination/reduction of impact fees, and support for expedited entitlement process and approval. JHM has a lengthy history with tax credit projects, including approximately 40 in the State of Florida, and an inventory of 11,000 units in Florida. Habitat for Humanity of Collier County, Inc. (hereafter, “Habitat”) Habitat has developed over 2,150 homes in Collier County over the last 40 years and is proposing a 30 unit homeownership development. The developer is proposing a townhouse style similar to its newest development, Dockside. Habitat plans to partner with a private developer to offer units for those persons earning up to 120% AMI. Habitat anticipates offering each unit for approximately $165,000. Habitat is seeking a County contribution to include impact fee deferral, expedited permitting, and possible LDC variances to include setbacks, buffering, and stormwater. Habitat is not seeking a financial contribution from the County, and does not need to seek external financing Staff is recommending that the Board direct staff to negotiate with the top -ranked firm, McDowell Housing Partners, LLC and, if an agreement cannot be reached with that firm, to continue negotiating with the remaining firms in ranked order. Final financial contributions and other decisions will be made as part of this negotiation and presented to the BCC when the agreement is brought back for approval. FISCAL IMPACT: Each proposal has been evaluated according to specific criteria including “Costs to County” which vary greatly between the proposals based on the type of development proposed. The Bembridge PUD has been declared surplus property by the Board. 11.D Packet Pg. 120 07/09/2019 LEGAL CONSIDERATIONS: This Item is approved for form and legality and requires a majority vote for Board approval. -SRT GROWTH MANAGEMENT IMPACT: Providing land for the development of housing that is affordable assists the County in addressing some of the goals and objectives of the Housing Element in the Growth Management Plan. RECOMMENDATION: To approve the selection committee ranking for Invitation to Negotiate No. 19- 7556 for “Bembridge PUD Affordable Housing Land Development” and authorize staff to enter into negotiations with the top-ranked firm of McDowell Housing Partners and, in the event that an agreement cannot be reached with that firm, to continue negotiating with the remaining firms in ranked order to obtain a proposed agreement, which will be brought back to the Board of County Commissioners for consideration at a subsequent meeting. Prepared By: Kristi Sonntag, Division Director, Community and Human Services Division ATTACHMENT(S) 1. Mcdowell Bembridge - Redacted Presentation 6.11 PRESENT (PPTX) 2. JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (PDF) 3. Habitat for Humanity Bembridge PowerPoint (PDF) 4. 19-7556 NORA (PDF) 5. 19-7556 Solicitation (DOCX) 11.D Packet Pg. 121 07/09/2019 COLLIER COUNTY Board of County Commissioners Item Number: 11.D Doc ID: 9200 Item Summary: *** This item to be heard at 10:45 a.m. *** Recommendation to approve the selection committee ranking for Invitation to Negotiate No. 19-7556 for “Bembridge PUD Affordable Housing Land Development” and authorize staff to enter into negotiations with the top-ranked firm of McDowell Housing Partners, LLC and, in the event that an agreement cannot be reached with that firm, to continue negotiating with the remaining firms in ranked order to obtain a proposed agreement, which will be brought back to the Board of County Commissioners for consideration at a subsequent meeting. (Kristi Sonntag - Director, Community and Human Services Division) Meeting Date: 07/09/2019 Prepared by: Title: – Community & Human Services Name: Cormac Giblin 06/03/2019 1:58 PM Submitted by: Title: Manager - Federal/State Grants Operation – Community & Human Services Name: Kristi Sonntag 06/03/2019 1:58 PM Approved By: Review: Community & Human Services Kristi Sonntag CHS Review Completed 06/19/2019 3:35 PM Public Services Department Kimberley Grant Level 1 Reviewer Completed 06/24/2019 5:41 PM Procurement Services Opal Vann Level 1 Purchasing Gatekeeper Completed 06/25/2019 10:09 AM Procurement Services Ted Coyman Add Completed 06/25/2019 11:16 AM Procurement Services Geoff Thomas Additional Reviewer Completed 06/25/2019 1:21 PM Procurement Services Evelyn Colon Additional Reviewer Completed 06/25/2019 1:23 PM Procurement Services Swainson Hall Additional Reviewer Completed 06/25/2019 1:26 PM Public Services Department Todd Henry Level 1 Division Reviewer Completed 06/25/2019 2:09 PM Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 06/25/2019 2:32 PM County Attorney's Office Todd Henry Level 2 Attorney of Record Review Skipped 06/27/2019 9:00 AM County Attorney's Office Scott Teach Additional Reviewer Completed 06/27/2019 2:22 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 06/27/2019 2:28 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/27/2019 3:11 PM Budget and Management Office Ed Finn Additional Reviewer Completed 06/28/2019 2:25 PM 11.D Packet Pg. 122 07/09/2019 County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 06/28/2019 2:52 PM Board of County Commissioners MaryJo Brock Meeting Pending 07/09/2019 9:00 AM 11.D Packet Pg. 123 Bembridge PUD ITN 19-7556 11.D.1 Packet Pg. 124 Attachment: Mcdowell Bembridge - Redacted Presentation 6.11 PRESENT (9200 : Bembridge PUD ITN Topics u Who is McDowell Housing Partners? u Financial Strength u Business Proposal and Development Program u Financial Projections u Ti meline u Site Plan, Renderings & Specifications 11.D.1 Packet Pg. 125 Attachment: Mcdowell Bembridge - Redacted Presentation 6.11 PRESENT (9200 : Bembridge PUD ITN McDowell Housing Partners u To p ranked (385 points) submittal to ITN 19-7556; MHP’s proposal scored 14 points higher than closest competitor and 25 points higher than third highest scoring proposal. 11 % higher than average score of 7 proposals; u McDowell Housing Partners (MHP) is the affordable development and investment affiliate of McDowell Properties, a national multifamily housing investment and development company with management experience that spans over 70 years in 41 of the top 50 MSAs; u MHP Principals and key staff have completed the development of more than 3,000 affordable/workforce housing units, primarily in Florida and within public private partnerships. 11.D.1 Packet Pg. 126 Attachment: Mcdowell Bembridge - Redacted Presentation 6.11 PRESENT (9200 : Bembridge PUD ITN Regional Offices & Property Locations San Francisco Dallas Raleigh Miami New York Denver MP Office Locations MP Proper ty Locations Additional Target Markets 8 assets owned in Florida (1,906 units) 11.D.1 Packet Pg. 127 Attachment: Mcdowell Bembridge - Redacted Presentation 6.11 PRESENT (9200 : Bembridge PUD ITN Financial Strength u Extremely We ll Capitalized and Experienced Te am! Ø McDowell Properties has been a designated Freddie Mac Select Sponsor since the inception of the program.This is a highly coveted designation, recognizing sponsors with a successful track record,and alignment with Freddie Mac’s mission to provide liquidity,stability,and affordability to the U.S.housing market with an emphasis on securing housing for low and moderate income families; Ø Acquired,re-developed,and managed $3BN of apartments (over 40,000 units),and made investments in commercial mortgage backed securities representing $15.3BN of multifamily loans secured by over 229,000 units in US. *Financial statements enclosed for McDowell Properties. Note -all assets are held in single-purpose entities with their own financial statements and value. 11.D.1 Packet Pg. 128 Attachment: Mcdowell Bembridge - Redacted Presentation 6.11 PRESENT (9200 : Bembridge PUD ITN Organizational Chart W.Patrick McDowell Chairman & CEO Debbie Dillon Managing Director, Asset Management Kenneth Lee President Charles Koslosky Managing Director & CFO Jeana Corker SVP, Head of Capital Formation & Investor Relations Jake Gentling Managing Director, Acquisitions Emily Flemming Office Manager / EA Manpreet Dhadda VP, Finance Natalee Min Accounting Controller Louellie Ferrer Accounting Technician Jon-Paul Karam Real Estate Financial Analyst Christopher Shear Managing Director, McDowell Housing Partners Ariana Brendle Development Manager Andrew Meador VP, Capital Projects Justin Jacaman Sr. Capital Prj. Mgr. Brandy Cerbone Design Project Mgr. Travis Rann Capital Prj. Mgr. Camille McDowell Director, Asset Design Bunny Blake VP, Asset Mgmt. Emily White Associate, Asset Mgmt. Colin Santos VP, Asset Mgmt. Brittany Burckhard AVP, Acquisitions Mickkail Cain Associate, Acquisitions William Wilder Analyst, Acquisitions Cheryl Chalas Development Associate 11.D.1 Packet Pg. 129 Attachment: Mcdowell Bembridge - Redacted Presentation 6.11 PRESENT (9200 : Bembridge PUD ITN u GOAL -Provide flexibility to serve a mixed demographic of seniors and family households at income levels that range from 30% AMI to 80% AMI (Income Average 60%); u Minimum of 10% of the units will be set-aside for identified for seniors, veterans and/or special needs populations; u Unit/Income mix is flexible and can change depending on the needs and desire of the community. Further market analysis pending; u Optimal Financing Strategy: Low Income Housing Ta x Credits and Gap Financing from FHFC. Ø 9% LIHTC: Land acquisition payment(s) up to $1,500,000. Dependent on final sources and uses. Ø 4% LIHTC with Gap Financing: Lower land basis/price makes deal more competitive for critical gap financing. Business Proposal & Development Program 11.D.1 Packet Pg. 130 Attachment: Mcdowell Bembridge - Redacted Presentation 6.11 PRESENT (9200 : Bembridge PUD ITN u Beyond Tax Credits -MHP will pursue conventional financing through HUD 221(d)(4) Loan. MHP will Pursue ALL Viable Financing Options to Deliver Housing ASAP! Multiple Financing Structures 2019 FUNDING PROGRAM FUNDING AVAILABLE DUE DATE NOTES CDBG - Disaster Recovery (soft gap loan) with Tax-Exempt Bonds and Non- Competitive (4%) Housi ng Credits $60,000,000 - CDBG Disaster Relief $10,000,000 - CDBG Land Acquisition 27-Aug-19 - $8mm P er Deal Available - Strucutre as Priority I Application (requires JV with local Gov't) - RFA Workshop June 13th SAIL (soft gap loan) Financing with Tax- Exempt Bonds and Non-Competitive (4%) Housi ng Credits for Affordable (Average 60% AMI) $19,467,000 SAIL - Elderly (estimated based on 2018) $51,500,000 SAIL - Family (estimated based on 2018) $6,405,067 NHTF (confirmed by FHFC) Expected September 2019 - Total SAIL may be reduced due to State Budget 9% Housi ng Credits Over $150,000,000 in 9% HC Expected October 2019 - Deals with Local Gov't Land Contribution Receive Pref erence! SAIL (soft gap loan) Financing with Tax- Exempt Bonds and Non-Competitive (4%) Housi ng Credits for Workforce Housing $15,000,000 Workforce SAIL - non-Monroe $8,939,000 (estimated) Workforce SAIL remaining from 2017 Expected November 2019 - Max 45% of units at 60% AMI and lower - Minimum 5 5% of Units at 80% AMI Housing Credit Financing to Provide Affordable Multifamily Rental Housing that is Part of Local Revitalization Initiatives $30,000,000 - 9% HC (estimated)Expected November 2019 - Funds 2 Developments in an adpopted Concerted Revitalization Plan 11.D.1 Packet Pg. 131 Attachment: Mcdowell Bembridge - Redacted Presentation 6.11 PRESENT (9200 : Bembridge PUD ITN Senior or Family Proforma u 78 units to maximize density available under existing code. Proposed unit and income mix: Ø Family (1BR/1BA, 2BR/2BA & 3BR/2BA) at 30% AMI & 60% AMI (Up to 80% with Income Av eraging) Ø Senior, 55+ years old, (1BR/1BA and 2BR/2BA) mixed income at 30% and 60% AMI 11.D.1 Packet Pg. 132 Attachment: Mcdowell Bembridge - Redacted Presentation 6.11 PRESENT (9200 : Bembridge PUD ITN Timeline u The timeline below is based on the current approved PUD, which will not require rezoning. 11.D.1 Packet Pg. 133 Attachment: Mcdowell Bembridge - Redacted Presentation 6.11 PRESENT (9200 : Bembridge PUD ITN Renderings, Elevation & Specs u MHP has refined the site plan and development program to work within the existing zoning! u Detailed renderings, elevations & specifications provided in your hard copy. Family Senior 11.D.1 Packet Pg. 134 Attachment: Mcdowell Bembridge - Redacted Presentation 6.11 PRESENT (9200 : Bembridge PUD ITN Family Site Plan Senior Site Plan Unit Layout & Site Plan 11.D.1 Packet Pg. 135 Attachment: Mcdowell Bembridge - Redacted Presentation 6.11 PRESENT (9200 : Bembridge PUD ITN Elevations Hurricane Impact Windows 11.D.1 Packet Pg. 136 Attachment: Mcdowell Bembridge - Redacted Presentation 6.11 PRESENT (9200 : Bembridge PUD ITN Interior Finishes 11.D.1 Packet Pg. 137 Attachment: Mcdowell Bembridge - Redacted Presentation 6.11 PRESENT (9200 : Bembridge PUD ITN Questions? u If you have any additional question after today’s presentation, please do not hesitate to contact Christopher Shear at cshear@mcdhousing.com or Ariana Brendle at abrendle@mcdhousing.com. Thank You! 11.D.1 Packet Pg. 138 Attachment: Mcdowell Bembridge - Redacted Presentation 6.11 PRESENT (9200 : Bembridge PUD ITN Bembridge PUD Affordable Housing Land Development Proposal JHM/RHD NAPLES, LLC 11.D.2 Packet Pg. 139 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Corporate Financial Strength JHM/RHD Naples, LLC •Team is comprised of two of the largest rental apartment owners in the Country –Richman 7th largest; •150,000+ housing units; •5th largest LIHTC syndicator; •Own & operate 11,500+ units in the State of Florida alone; •Have raised over $11B in equity and invested in real estate transactions having a property cost of nearly $20B; •Include an affiliate property management company managing more than 15,000 units over 100+ properties, with 400+ employees; •Have expanded to include 12 regional offices, two of which are in Florida. 11.D.2 Packet Pg. 140 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Vertical Integration JHM/RHD Naples, LLC is fully vertically integrated to service projects at every stage of the development process within the family of companies. •DEVELOPMENT •CONSTRUCTION –Provide through its affiliate, Citrus Construction •EQUITY FUNDS -Provided through its affiliate Richman Real Estate Investments •MORTGAGE FINANCING –Provided through its affiliate Richmac LLC •ASSET MANAGEMMENT –Provided through its affiliate Richman Asset Management •PROPERTY MANAGEMMENT –Provided through its affiliate Richman Property Services •RESIDENT SERVICES –Provided through its affiliate Shamrock and Moonbeam Communications 11.D.2 Packet Pg. 141 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Cost to Collier County In order to ensure the respondent’s ability to provide the County and Bembridge’s future residents with a high quality and financially sustainable product,the respondent respectfully requests an opportunity to discuss the most appropriate source(s)available as a contribution from the County with the Board .The funding gap for the project as proposed is approx.$600,000. Contemplated sources may include any combination of the following: 1.Capital contribution from the County’s Affordable Housing Trust Fund or similar source; 2.Real estate tax abatement agreement (@ $700/unit); 3.Sales tax exemption; 4.Reduction,elimination,and/or deferral of Impact Fees; 5.Nominal acquisition cost ; 6.Support for expedited entitlements process and approval. 11.D.2 Packet Pg. 142 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Project Proforma 11.D.2 Packet Pg. 143 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Project Proforma –Unit Mix *Based on FHFC QAP and goals of Collier County, 15% of units can be set aside for Extremely Low-Income Households. These can consist of veterans, special needs, elderly, or other groups. 11.D.2 Packet Pg. 144 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Project Proforma –Sources & Uses 4%11.D.2 Packet Pg. 145 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Project Proforma –15-Year Cashflow* *Sample CF for 4 or 9 transaction 11.D.2 Packet Pg. 146 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Timeline Site & Design Timeline Milestone Date Proposal Submission 4/2019 Anticipated Proposal Award 06/2019 Site Analysis & Due Diligence 08/2019 Finalization of Development Agreement 10/2019 Conceptual Design 12/2019 Zoning Approval 03/2020 Financing Application 11/2020 Financing Award 04/2021 Construction Documentation (90%)09/2021 Construction Bidding 10/2021 Building Permit Issuance 01/2022 11.D.2 Packet Pg. 147 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Timeline Closing & Construction Timeline Milestone Date Financial Closing 02/2022 Construction Commencement 02/2022 Construction Completion/CO 03/2023 Lease-up & Breakeven 07/2023 Stabilized Year 2023 11.D.2 Packet Pg. 148 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Conceptual Site Plan 11.D.2 Packet Pg. 149 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Sample Photo / Community Sample 11.D.2 Packet Pg. 150 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Sample Elevation / Rendering Sample Sample 11.D.2 Packet Pg. 151 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Sample Floor Plans Sample 1 Bedroom & 1 Bath 11.D.2 Packet Pg. 152 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Sample Floor Plans 2 Bedroom & 2 Baths Sample 11.D.2 Packet Pg. 153 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Community Amenities (outdoor) Sample Images Pet Spa Playground Pet Area 11.D.2 Packet Pg. 154 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Community Amenities (indoor) Sample Images 11.D.2 Packet Pg. 155 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Game Room Business Center & Sitting Area Community Amenities (indoor) Fitness Center Club Room 11.D.2 Packet Pg. 156 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Community Life & Events Sample Images 11.D.2 Packet Pg. 157 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Community Life & Events Sample ImagesOur Team Pet-friendly living & events 11.D.2 Packet Pg. 158 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Plan Flexibility The proposed plan for 72 units of affordable rental housing both accounts for the desired PUD density and needs of the community,as outlined in the Collier County Community Housing Plan. In the interest of a true public-private partnership,JHM/RHD Naples,LLC is open to discussing the Board’s vision for the property and the needs of the community. Our team is extremely flexible and experienced in creatively developing project financing. 11.D.2 Packet Pg. 159 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Local Knowledge & Preparedness Local Experience: JHM/RHD Naples,LLC and its principals are familiar with the local entitlements process and state financing of affordable housing.Prior and current local experience has prepared the development teams to successfully complete this project. •Developer, owner/manager of 626 affordable apartment homes, financed with LIHTC and SAIL, in Collier County for the past 20 years. •Under-development: Market-rate multifamily community of 432 units in Naples in two phases. 11.D.2 Packet Pg. 160 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Summer Lakes Apartments –North Naples, FL. 11.D.2 Packet Pg. 161 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Summer Lakes Apartments –North Naples, FL. Summer Lakes I & II: Constructed from 2004-2007 Multi-family rental property Units Produced : 416 –1, 2, & 3 bedrooms Construction Type: Wood frame, 3-story Affordability: Units set-aside for 40, 50 & 60% of AMI Financing: Local bonds, 4% LIHTCs, SAIL Team Members: The Richman Group, First Florida, Forum Architecture 11.D.2 Packet Pg. 162 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : College Park Apartments –Naples, FL. Construction Completed 2000 Multi-family rental property Units Produced : 210 –1, 2, & 3 bedrooms Construction Type: Wood frame, 3- story Affordability: Units set-aside for 40, 50 & 60% of AMI Financing: Tax-exempt bonds, 4% LIHTCs Team Members: The Richman Group, First Florida, Forum Architecture 11.D.2 Packet Pg. 163 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : College Park Apartments –Naples, FL. 11.D.2 Packet Pg. 164 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Questions? 11.D.2 Packet Pg. 165 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : RESPONSE FROM INTERVIEW:Project Proforma –9% with County LGAO *TBD -Developer could pay $864,000 in acquisition costs to Collier County and County LGAO funds could contribute $432,000 to the project financing. The County would net $432,000 not including real estate taxes, Impact Fees, etc. 11.D.2 Packet Pg. 166 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Thank you! 11.D.2 Packet Pg. 167 Attachment: JHM Bembridge PUD RFP - Presentation DRAFT (06.13.19)1 (9200 : Everyone deserves a decent place to liveEveryone deserves a decent place to live Bembridge PUD Affordable Housing Land Development Proposal 11.D.3 Packet Pg. 168 Attachment: Habitat for Humanity Bembridge PowerPoint (9200 : Bembridge PUD ITN Everyone deserves a decent place to liveEveryone deserves a decent place to live Who We Serve Families who are: •U.S. citizens and legal residents •Living and working in Collier County for 1+ year •Cost-burdened; paying 30%+ income for housing •Or severely cost-burdened; paying 50%+ •Making $24-60k annually (30-80% of AMI) 11.D.3 Packet Pg. 169 Attachment: Habitat for Humanity Bembridge PowerPoint (9200 : Bembridge PUD ITN Everyone deserves a decent place to liveEveryone deserves a decent place to live 11.D.3 Packet Pg. 170 Attachment: Habitat for Humanity Bembridge PowerPoint (9200 : Bembridge PUD ITN Everyone deserves a decent place to liveEveryone deserves a decent place to live Our Experience Over 40 years experience in Collier County building and selling affordable homes, while consistently proving fiscal responsibility through achieving the highest rating on Charity Navigator; 95¢ of every dollar is used to build homes. •2150+ homes built and families served •$95 million in assets •$25 million annual operating budget •10 communities developed •6 communities under development 11.D.3 Packet Pg. 171 Attachment: Habitat for Humanity Bembridge PowerPoint (9200 : Bembridge PUD ITN Everyone deserves a decent place to liveEveryone deserves a decent place to live Completed Communities Year Finished Homes Cost Regal Acres 2016 184 $25.8 million Liberty Landing 2016 150 $23.5 million Legacy Lakes 2017 55 $9.7 million Faith Landing 2019 166 $20.1 million Future Communities Years Homes Estimated Cost Dockside 2018-2019 44 $7.8 million Vincent Acres 2019-2021 79 $16.1 million Esperanza 2019-2021 62 $7.3 million Whitaker Rd.2021-2023 125 $21.1 million Regal Acres Ph. 2 2024-2025 109 $17.1 million Kaicasa 2022-2028 280 $45.2 million 11.D.3 Packet Pg. 172 Attachment: Habitat for Humanity Bembridge PowerPoint (9200 : Bembridge PUD ITN Everyone deserves a decent place to liveEveryone deserves a decent place to live Our Experience 11.D.3 Packet Pg. 173 Attachment: Habitat for Humanity Bembridge PowerPoint (9200 : Bembridge PUD ITN Everyone deserves a decent place to liveEveryone deserves a decent place to live Our Vision 30 Two-Story Townhomes •Maximizing existing density allowed per zoning •Multi-family construction •Multiple price points: 2-, 3-, and 4-bedroom units •Park with gazebo and playground •Sidewalk network connecting to school 11.D.3 Packet Pg. 174 Attachment: Habitat for Humanity Bembridge PowerPoint (9200 : Bembridge PUD ITN Everyone deserves a decent place to liveEveryone deserves a decent place to live Pro Forma An estimated cost for each home is $165,000; the cost will equal the sale price. Pro Forma Home Cost Lot $0 Infrastructure $45,000 Building $100,000 Mitigation $0 Impact Fees $0 Consulting $5,000 Overhead $15,000 Total $165,000 11.D.3 Packet Pg. 175 Attachment: Habitat for Humanity Bembridge PowerPoint (9200 : Bembridge PUD ITN Everyone deserves a decent place to liveEveryone deserves a decent place to live 11.D.3 Packet Pg. 176 Attachment: Habitat for Humanity Bembridge PowerPoint (9200 : Bembridge PUD ITN Everyone deserves a decent place to liveEveryone deserves a decent place to live What We Ask •Donation of property and impact fee deferrals •90-day due diligence to confirm feasibility •Review timeline commitments Additionally, LDC variances may be requested for: •Building and property setbacks •Native vegetation, buffers, lift stations, and sidewalks •Creative solutions for storm water management 11.D.3 Packet Pg. 177 Attachment: Habitat for Humanity Bembridge PowerPoint (9200 : Bembridge PUD ITN Everyone deserves a decent place to liveEveryone deserves a decent place to live 11.D.3 Packet Pg. 178 Attachment: Habitat for Humanity Bembridge PowerPoint (9200 : Bembridge PUD ITN Everyone deserves a decent place to liveEveryone deserves a decent place to live Willingness to Partner We are interested in exploring options to partner with public and private sector firms in order to: •Serve families making 80-120% of AMI •Create mixed community supporting a range of household sizes, ages, and incomes •Incorporate market-rate and affordable homes within community 11.D.3 Packet Pg. 179 Attachment: Habitat for Humanity Bembridge PowerPoint (9200 : Bembridge PUD ITN Everyone deserves a decent place to liveEveryone deserves a decent place to live Thank You 11.D.3 Packet Pg. 180 Attachment: Habitat for Humanity Bembridge PowerPoint (9200 : Bembridge PUD ITN 11.D.4 Packet Pg. 181 Attachment: 19-7556 NORA (9200 : Bembridge PUD ITN Selection) 11.D.4 Packet Pg. 182 Attachment: 19-7556 NORA (9200 : Bembridge PUD ITN Selection) COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS INVITATION TO NEGOTIATE (ITN) FOR 5-ACRE BEMBRIDGE PUD, AFFORDABLE HOUSING AND LAND DEVELOPMENT PROPOSAL SOLICITATION NO.: 19-7556 EVELYN COLON, PROCUREMENT STRATEGIST PROCUREMENT SERVICES DIVISION 3295 TAMIAMI TRAIL EAST, BLDG C-2 NAPLES, FLORIDA 34112 TELEPHONE: (239) 252-2667 evelyn.colon@colliercountyfl.gov (Email) This solicitation document is prepared in a Microsoft Word format (Rev 8/7/2017). Any alterations 11.D.5 Packet Pg. 183 Attachment: 19-7556 Solicitation (9200 : Bembridge PUD ITN Selection) to this document made by the Vendor may be grounds for rejection of proposal, cancellation of any subsequent award, or any other legal remedies available to the Collier County Government. 11.D.5 Packet Pg. 184 Attachment: 19-7556 Solicitation (9200 : Bembridge PUD ITN Selection) SOLICITATION PUBLIC NOTICE INVITATIOIN TO NEGOTIATE (ITN) NUMBER: 19-7556 PROJECT TITLE: 5-Acre Bembridge PUD, Affordable Housing and Land Development Proposal ITN OPENING DAY/DATE/TIME: March 7, 2019 at 3:00PM March 21, 2019 at 3:00PM PLACE OF ITN OPENING: PROCUREMENT SERVICES DIVISION 3295 TAMIAMI TRAIL EAST, BLDG C-2 NAPLES, FL 34112 All proposals shall be submitted online via the Collier County Procurement Services Division Online Bidding System: https://www.bidsync.com/bidsync-cas/ INTRODUCTION As requested by the Community & Human Services Division (hereinafter, the “Division or Department”), the Collier County Board of County Commissioners Procurement Services Division (hereinafter, “County”) has issued this Invitation to Negotiate (hereinafter, “ITN”) with the intent of obtaining proposals from interested and qualified vendors in accordance with the terms, conditions and specifications stated or attached. The vendor, at a minimum, must achieve the requirements of the Specifications or Scope of Work stated. It is the desire of the Board of County Commissioners (Board) to seek proposals for the development of a 5 -acre tract of County owned property located on Santa Barbra Avenue Naples, FL. The parcel is more commonly described as the Bembridge PUD (Folio 0040024646). The parcel is depicted in Attachment A – Location Map. On November 13, 2018 the Board of County Commissioners approved, in a 5 -0 vote, to proceed with an Invitation to Negotiate (ITN) process. This process provides an official invitation for developers interested in producing housing, which will be affordable, on County owned property known as the Bembridge PUD. The purpose of the ITN is to obtain proposals from developers which meet the BCC’s guidelines and to begin a dialogue as to the appropriate use for the Bembridge prope rty. Proposers are encouraged to be creative and to develop the property in a way that is aesthetically pleasing and of high archi tectural quality. In addition, developers must produce a product that will be affordable to households earning between 30 -140% of Area median income. BACKGROUND On December 12, 2017, following BCC direction, staff initiated a Request for Information (RFI) process to determine if there was any market interest in the Bembridge site. In March 2018, 10 responses to the RFI were received from interested developers. The responses varied on the level of detail and approaches. At the November 13, 2018 BCC meeting, the joint committee recommendations were presented to the BCC. During the meeting the BCC directed staff to initiate this Invitation to Negotiate (ITN) process for the development of housing that is affordable on the County-owned Bembridge property, as the property was found suitable for the development of housing that is affordable in accordance with the Community Housing Plan. A detailed packet of information applicable to the parcel is available at the Collier County’s on -line bidding system https://www.bidsync.com/bidsync-cas/. TERM OF CONTRACT County reserves the right to modify this scope during negotiations for budgetary reasons. The contract term, if an award is made, will commence on the date of the Notice to Proceed and end upon acceptance and approv al of the final payment. Surcharges will not be accepted in conjunction with this contract, and such charges should be incorporated into the pricing structure. 11.D.5 Packet Pg. 185 Attachment: 19-7556 Solicitation (9200 : Bembridge PUD ITN Selection) DETAILED SCOPE OF WORK Proposals may be viewed favorably if each of the minimum development requirements listed below is included in the offer resulting from this ITN. For example, those proposals offering a mixed income development containing all the uses listed may rate higher than a proposal with only some of the uses. Additionally, proposers may also pledge to achieve performance outcomes beyond the minimum. The minimum affordable requirements include: • Workforce housing for households earning between 30-140% of area median income • Variety of housing prices/sizes/types to include multi- and/or single-family homes, and rental and/or owner-occupied units. • A design that reflects a moderate to high density of 54 -78 units total • Provide a minimum of 10 % of units identified for seniors, veterans and/or special needs populations. All proposals should address, at a minimum, responses to Criteria 1 through 7 below. The proposal should thoroughly explain the proposed project. The proposal and backup material shall describe in detail the requested terms of land acquisition and ident ify size and scale of the completed project. Include any unique features or functions to be constructed, any anticipated obstacles in development, and outline generally how the project will benefit the community. INVITATION TO NEGOTIATE (ITN) PROCESS 1.1 The Proposers will submit proposal which will be scored based on the criteria in Scoring Criteria for Development of Shortlist, which will be the basis for short-listing the vendors. The Proposers will need to meet the minimum requirements outlined herein in order for their proposal to be evaluated and scored by the COUNTY. The COUNTY will then score and rank to at least the top three short-listed vendors and enter into negotiations with the top ranked vendor or multiple vendors to establish cost for the services needed. The COUNTY reserves the right to issue an invitation for oral presentations to obtain additional information after scoring and before the final ranking. With successful negotiations, a contract will be developed with the selected firm, based on the negotiated price and/or scope of services and submitted for approval by the Board of County Commissioners . 1.2 The COUNTY will use a Selection Committee in the ITN selection process. 1.3 The intent of the scoring of the proposal is for respondents to indicate their interest, relevant experience, financial capability, staffing and organizational structure. 1.4 The intent of the oral presentations, if deemed necessary, is to provide the vendors with a venue where they can conduct discussions with the Selection Committee to clarify questions and concerns before providing a final rank. 1.5 Based upon a review of the proposals, the COUNTY will rank the Proposers based on the discussion and clarifying questions on their approach and related criteria, and then negotiate with one or more vendors as authorized in Section 11, Paragraph 7 of County Procurement Ordinance Number 2017-08. 1.6 The COUNTY reserves the right to negotiate any element of the proposals in the best interest of the COUNTY. SCORING CRITERIA FOR RANKING PROPOSALS: 1.7 For the development of a shortlist, this evaluation criterion will be utilized by the COUNTY’S Selection Committee to score each proposal. Proposers are encouraged to keep their submittals concise and to include a minimum of marketing materials. Proposals must address the following criteria: Evaluation Criteria Maximum Points 1. Cover Letter / Management Summary 5 Points 2. Certified Minority Business Enterprise 5 Points 3. Business Plan 20 Points 4. Cost of Services to the County 20 Points 5. Experience and Capacity of the Firm 20 Points 6. Specialized Expertise of Team Members 20 Points 7. Local Vendor Preference 10 Points TOTAL POSSIBLE POINTS 100 Points 11.D.5 Packet Pg. 186 Attachment: 19-7556 Solicitation (9200 : Bembridge PUD ITN Selection) Tie Breaker: In the event of a tie at final ranking, award shall be made to the proposer with the lower volume of work previously awarded. Volume of work shall be calculated based upon total dollars paid to the proposer in the twenty -four (24) months prior to the RFP submittal deadline. Payment information will be retrieved from the County’s financial system of record. The tie breaking procedure is only applied in the final ranking step of the selection process and is invoked by the Collier County Board of County Commissioners or designee. In the event a tie still exists, selection will be determined based on random selection by the Procurement Services Director before at least three (3) witnesses. ----------------------------------------------------------------------------------------------------------------------------------------------- Each criterion and methodology for scoring is further described below. ***Proposals must be assembled, at minimum, in the order of the Evaluation Criteria listed or your proposal may be deemed non-responsive*** EVALUATION CRITERIA NO. 1: COVER LETTER/MANAGEMENT SUMMARY (5 Total Points) Provide a cover letter, signed by an authorized officer of the firm, indicating the underlying philosophy of the firm in providing the services stated herein. Include the name(s), telephone number(s) and email(s) of the authorized contact person(s) concerning proposal. Submission of a signed Proposal is Vendor's certification that the Vendor will accept any awards as a result of this ITN. EVALUATION CRITERIA NO. 2: CERTIFIED MINORITY BUSINESS ENTERPRISE (5 Total Points) Submit certification with the Florida Department of Management Service, Office of Supplier Diversity as a Certified Minority Business Enterprise. EVALUATION CRITERIA NO. 3: BUSINESS PLAN (20 Total Points) In this tab, include but not limited to: 1. Project Scope The proposal should provide a written description of the project, accompanied by a conceptual site plan showing proposed building(s), parking areas and how the development will interface with the surrounding areas. In addition, proposed unit type (single family, multi-family, rental or for purchase) and dwelling size (1, 2, 3, or more bedrooms) should be provided along with any planned amenities. 2. Community Impact The proposal must describe how the proposed project fits with the adjacent parcels, meets the intent of the Board of County Commissioners expectations, as detailed in this ITN, and would generally benefit the community, surrounding areas and the County as a whole. Include as many conceptual visuals as possible such as site plans, renderings, and elevations, as applicable. In addition, please provide a description of how the proposed project meets the housing affordability needs per the Collier County Community Housing Plan. 3. Zoning The proposal must identify if the applicant will utilize the existing Bembridge PUD zoning or a specific rezoning will be required to assist in the development of the proposal. If applicable, identify if the rezoning will require a comprehensive plan amendment or other special zoning relief. Be as specific as possible and provide documentation as needed to substantiate the request. Identify timing of zoning and if property should be zoned prior to project. 4. Timeline The proposal must clearly identify approximate milestones that will be included in the land a cquisition and development agreement such as the due diligence period, zoning process, if required, site development, building permits, construction and through to the Certificate of Occupancy. 5. Site Specific Criteria Upon approval of moving forward with this ITN the Board of County Commissioners agreed the following criteria should be mandated in the development of the Bembridge PUD. In preparation of this proposal it is important the following criteria is included for consideration: • Quantify desired density. The BCC is seeking proposals which will provide a moderate to high density of 54 -78 units. • Identify all dwelling types and if more than one type is proposed provide unit type ratios. • Define project set-asides of more than 10% for seniors, veterans, and/or special needs populations. • Define the targeted income mix proposed and how it correlates with the Community Housing Plan. 11.D.5 Packet Pg. 187 Attachment: 19-7556 Solicitation (9200 : Bembridge PUD ITN Selection) • Proposed designs should accommodate the location of a Master Pump Station on the site to be con structed by the County in the future. Designs should reserve an area of at least 1.27 acres for the Pump Station. See attached Pump Station design schematic (provided by the Public Utilities Department) for more detail on size requirements. Flexibility is offered as to exact placement and orientation of the Pump Station. The area reserved for the Pump Station will be deeded to the Water and Sewer District.” 6. Any Additional Information Include other relevant information about the project that has not been addressed in the previous questions that the proposer would like the present to the Board in support of the proposal. The intent of this phase of the screening process is to identify a project that a majority of the Board can support moving forward to a detailed purchase and development agreement. Should your proposal be selected, the purchase and development agreement will incorporate specific milestones in the development process. The Board’s acceptance of a proposal shall not constitute approval of future zoning, if needed for the project to be developed. EVALUATION CRITERIA NO. 4: COST OF SERVICES TO THE COUNTY (20 Total Points) In this tab, include but not limited to: 1. Financing The proposal must provide a general financing plan. The proposal must identify if the project will be a straight purchase (if so, what is the purchase price?), a request for the property to be donated, require financing (if so, is the expectation that the County defer the purchase price until the completion of construction and/or contribute to the financing package?), or any other potential financing configuration needed for the project . In addition, the Financing information provided should include at the minimum the following: • Per unit construction costs • Proformas for rental and proposed rates (if applicable) • Per unit market costs and sales price (if applicable) • Detailed soft funding incentives required from the County • Proposed funding sources with contingencies • Address any potential Land Trust contribution (if applicable) • Detailed affordability restrictions The proposer should submit a financing plan that demonstrates the proposer’s financial ability to successfully purchase and complete the development of the parcel. A limited pro-forma would be acceptable based on the conceptual plan submitted for review. 2. Total Project Value Include an approximate construction value and ending taxable value. Please state if your entity holds tax exempt status or if the project is eligible for tax exemption. Also, include a detailed description of how the project is committed long term to addressing housing affordability in Collier County. EVALUATION CRITERIA NO. 5: EXPERIENCE AND CAPACITY OF THE TEAM (20 Total Points) In this tab, include but not limited to: • Provide information that documents your firm’s qualifications to produce the required deliverables, including abilities, capacity, skill, and financial strength and number of years of experience in providing the required services. • Describe the various team members’ successful experience in working with one another on previous projects. The County requires that the vendor submits no fewer than five (5) completed reference forms from clients from the past ten (10) years whose projects are of a similar nature to this solicitation as a part of their proposal. Provide information on the projects completed by the vendor that best represent projects of similar size, scope and complexity of this project using the Reference Form provided. Vendors may include two (2) additional pages for each project to illustrate aspects of the completed project that provides the information to assess the experience of the Proposer on relevant project work. EVALUATION CRITERIA NO. 6: SPECIALIZED EXPERTISE OF TEAM MEMBERS (20 Total Points) The proposal must include a description of the firm/team, including locations of offices, the person responsible for contracting services, and the location of the contracting authority. Include a list of the qualified professional team member s and qualifications of associates proposed to perform and/or assist with the work to oversee the project. Identify the names 11.D.5 Packet Pg. 188 Attachment: 19-7556 Solicitation (9200 : Bembridge PUD ITN Selection) and provide resumes of proposed management members that will supervise the project, including an organizational flow chart, if available, showing the working relationship of the management structure. The proposal shall submit a portfolio of projects of similar size and scope completed and or managed by the firm or team. EVALUATION CRITERIA NO. 7: LOCAL VENDOR PREFERENCE (10 Total Points) Local business is defined as the vendor having a current Business Tax Receipt issued by the Collier or Lee County Tax Collector prior to proposal submission to do business within Collier County, and that identifies the business with a permanen t physical business address located within the limits of Collier or Lee County from which the vendor’s staff operates and performs business in an area zoned for the conduct of such business. VENDOR CHECKLIST ***Vendor should check off each of the following items as the necessary action is completed (please see, Form 2: Vendor Check List): The Solicitation Submittal has been signed. The Solicitation Pricing Document (Bid Schedule/Quote Schedule/Proposal Pricing/etc.) has been completed and attached. All applicable forms have been signed and included, along with licenses to complete the requirements of the project. Any addenda have been signed and included. Affidavit for Claiming Status as a Local Business, if applicable. Division of Corporations - Florida Department of State – http://dos.myflorida.com/sunbiz/ (If work performed in the State). E-Verify/Immigration Affidavit (Memorandum of Understanding). 11.D.5 Packet Pg. 189 Attachment: 19-7556 Solicitation (9200 : Bembridge PUD ITN Selection)