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City Procurement Office/City of Tempe PO Box 5002 • 20 East 6th Street • Tempe, AZ 85280 • (480) 350-8324 www.tempe.gov/procurement

Request For Qualifications No.: 16-146

Procurement Description: PURCHASE AND DEVELOPMENT OF CITY-OWNED LAND

CONSISTING OF APPROXIMATELY 3.14 ACRES LOCATED AT THE

SOUTHWEST CORNER OF MILL AND SOUTHERN AVENUES

Offer Due Date: Tuesday, May 17, 2016, 3:00 P.M. (Arizona Time)

Late Offers will not be considered.

Street Address: 20 East Sixth Street (2nd

Floor)

Tempe, AZ 85281 Mailing Address: PO Box 5002

Tempe, AZ 85280

The City of Tempe Procurement Office will receive sealed statements of qualification for the development of the City-

owned land with owner occupied residential housing units in a mixed use context, that includes the dedication of a

minimum of 51% of the units as low to moderate income units at the specified location until the time and date cited above.

Sealed offers must be in the actual possession of the City Procurement Office on or prior to the exact time and date indicated

above. Late offers will not be considered. The City of Tempe reserves the right to accept or reject any and all submittals

and waive informalities.

Offers must be submitted in a sealed envelope (box) with the Request for Qualifications number and the Offeror’s name and

address clearly indicated on the envelope (box). All offers must be completed in ink or typewritten and a complete Request

for Qualifications, and release form, returned along with the offer by the time and date cited above. Original offer must be

signed in ink. Telegraphic, mailgram, facsimile or electronic transmission offers will not be considered. Offerors are

strongly encouraged to carefully read the entire Request for Qualifications.

It is the City of Tempe’s policy that minority-owned business enterprises (MBE) and women-owned business enterprises

(WBE) be afforded the opportunity to participate as contractors, subcontractors, and suppliers in City of Tempe awarded

financial assistance programs. Accordingly, pursuant to Executive Orders 11625 and 12432 regarding Minority Business

Enterprise, and 12138 regarding Women’s Business Enterprise, and regulations Section 85.36 (e) and Section 281 of the

National Housing Affordability Act, the City of Tempe encourages MBEs and WBEs to respond to all Requests for

Qualifications and for services and contracts with the City of Tempe. This policy applies to all contracts, subcontracts and

procurements for supplies, construction, equipment and services under City of Tempe grants and loans.

Note: Offeror must submit six (6) copies, one (1) unbound, reproducible original of a signed and completed offer

and one electronic copy on a flash drive.

An unsigned or late Offer will be considered non-responsive and rejected.

03/17/2016 Primary Contact Person: Lisa Goodman, CPPO Phone: (480) 350-8533

Proposal Issue Date Procurement Officer

REQUEST FOR QUALIFICATIONS

Offer Form

It is MANDATORY that Offeror COMPLETE, SIGN and SUBMIT the original of this form to the City of Tempe

Procurement Office with the (your) offer. An unsigned “Offer Form” and/or late RFQ response will be considered non-

responsive and rejected.

This Offer is offered by: _____________________________________________

Company/Organization Name (printed)

To the City of Tempe:

By signing this Offer, Offeror acknowledges acceptance of all conditions contained herein. Offeror certifies that the offer was

independently developed without consultation with any of the other offerors or potential offerors.

For clarification of this Offer, contact:

___________________________ __________________________ (_____)_______________

Contact Title Phone

___________________________________________________________

Company

____________________________________________________________________________________________________

Company Address (or PO Box) City State Zip

This offer is offered by:

___________________________ __________________________ (_____)_______________

Authorized Respondent Title Phone

_______________________________________________ _____________________

Signature of Authorized Respondent Required Date of Offer

PURCHASE AND DEVELOPMENT OF CITY-OWNED LAND RFQ NO. 16-146

Page 2

TABLE OF CONTENTS

REQUEST FOR QUALIFICATIONS PAGE #

Section I Introduction .................................................................................................................... 3

Section II Description of Site .......................................................................................................... 3

Section III Description of Zoning and Projected Land Use .............................................................. 3

Section IV Description of Possible Development ............................................................................. 3

Section V Details of City Ownership ............................................................................................... 3

Section VI Method of Developer Selection ...................................................................................... 4

Section VII Submittal Requirements and Evaluation Criteria ......................................................... 4-6

Section VIII City Council Action ........................................................................................................ 6

Section IX Method of Conveyance, Price and Conditions ............................................................... 6

Section X Proposal Submission ....................................................................................................... 7

Section XI General Information ....................................................................................................... 7

APPENDIX A Location Map ................................................................................................................. 8

APPENDIX B Copy of City-Owned Lot Replat ................................................................................ 9-10

APPENDIX C Map of Ownership and Project Land ............................................................................ 11

PURCHASE AND DEVELOPMENT OF CITY-OWNED LAND RFQ NO. 16-146

Page 3

The City of Tempe (City) invites your firm to submit their statement of qualifications for the purchase

and development of City-owned land located at the Southwest corner of Mill and Southern Avenues in

Tempe, Arizona.

SECTION I – INTRODUCTION

The City of Tempe is located in the center of the Phoenix metropolitan area. Bordered by Phoenix to the

West, Mesa to the East, Scottsdale to the North and Chandler to the South, Tempe is the most densely

populated large city in the state of Arizona and is home to Arizona State University. Tempe has a

population of 161,719 people within a 40 square-mile area that is connected to four major freeways.

SECTION II – DESCRIPTION OF SITE

The City-owned land is located within Danelle Plaza, a commercial development located on the

southwest corner of Mill Avenue and Southern Avenue. A map of the location is attached as Appendix

A. Danelle Plaza contains approximately 14.54 acres, which includes approximately 6.84 buildable acres

and 7.7 acres designated as Tract “A”. Tract “A” contains the parking lot and common areas. The

undivided ownership of Tract “A” is based upon the ownership of the individual lot/buildable areas. The

City owns one recently replatted lot containing approximately 3.14 acres of buildable land and

approximately forty six percent (46%) of Tract “A”. In addition to the City-owned land, a majority of the

balance of the owners of lots within Danelle Plaza have expressed an interest in selling their property.

The City recently replatted its 24 non-contiguous lots into one larger lot; a copy of the revised plat is

attached as Appendix B. The City-owned lot and any additional lots acquired by the selected developer

would also be eligible to be replatted into one or more developable lots. A map reflecting the City-owned

lot and the additional lot owners that have expressed an interest in selling their land is attached as

Appendix C.

SECTION III – DESCRIPTION OF ZONING AND PROJECTED LAND USE

The land within Danelle Plaza, including the City-owned land, is currently zoned CSS, Commercial

Shopping and Service. The General Plan 2030 and proposed General Plan 2040 reflect a projected land

use for Danelle Plaza as Mixed-Use.

SECTION IV – DESCRIPTION OF POSSIBLE DEVELOPMENT

There are numerous scenarios for redevelopment for this site. The City is open to rezoning, and partnering

with a developer to turn this site into a vibrant mixed use corner. However there are constraints and the

selected team must demonstrate how they will redevelop this site given the constraints. Tempe used

HUD funding as described below and some of the current owners may want to remain part of the

development in the future.

SECTION V – DETAILS OF CITY OWNERSHIP

The City utilized approximately $2,520,000 of United States Department of Housing and Urban

Development (HUD) Community Development Block Grant (CDBG) funding to acquire the City-owned

lot.

Offers regarding City-owned land are subject to all HUD rules and regulations, including but not limited

to, the requirement that 51% of the residential units developed on the City-owned land must be allocated

and affordable to households with income at or below 80% of the Area Median Income, as determined by

HUD.

PURCHASE AND DEVELOPMENT OF CITY-OWNED LAND RFQ NO. 16-146

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The HUD requirements do not apply to any additional land that may be acquired by the selected

developer from other owners. The total number of affordable units may be spread throughout a larger

development with the approval of the City and HUD.

HUD is aware of the City’s past attempts to redevelop the site and is generally supportive of its desire to

issue a third RFQ to find a developer for the parcel.

Tempe is willing to consider the following to encourage a high quality development on the site:

assistance with filling any proven gap in the pro forma for the project

creation of an infill incentive district that will result in relief from design and development

standards

Expediting permits

Write down of City’s acquisition costs for the land

All of the above is subject to City Council approval and the City’s willingness to consider these items

does not constitute an offer or guarantee that such assistance will ultimately be approved or provided.

SECTION VI – METHOD OF DEVELOPER SELECTION

The interest of the City is the selection of a developer(s) that demonstrates the best qualifications for

producing a successful development. After an evaluation committee reviews the offers received, the

committee may recommend a developer to the City Council, who may approve the committee’s

recommendation and grant the developer(s) the right to negotiate for the acquisition and development of

the City-owned land for a specified period.

Each developer responding to this request for RFQ must describe and demonstrate their organization has

the capacity to complete the acquisition and initiate development of the City-owned land and additional

land within Danelle Plaza in a timely manner. Responses should focus on the level of involvement of the

principals of the responding organization and their ability to manage project teams efficiently.

Developers who have within the past 7 years filed for bankruptcy, defaulted on a loan, or have failed to

perform under any agreement with the City of Tempe will be excluded from the selection process.

The City reserves the right to reject all submittals. Each respondent will be notified whether its submittal

is to be considered for final selection. Submission of qualifications by the deadline provided below will

be used as a method of selection. No late submissions will be accepted. The City may require top-rated

candidates to participate in an interview process.

SECTION VIl – SUBMITTAL REQUIREMENTS AND EVALUATION CRITERIA

The respondent shall respond particularly to the following items, which represent criteria in the developer

selection process. Responses, while focused on the criteria listed below, should also detail the role

senior/principal members of the responding organization played in each project referenced in the

response.

The following criteria, stated as indicators to interested developers, provide the general parameters by

which the City will review the submitted qualifications. However, they are not exclusive of other

considerations which may be deemed by the City as appropriate, given the content of the submittals.

PURCHASE AND DEVELOPMENT OF CITY-OWNED LAND RFQ NO. 16-146

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A. Experience (25%)

Provide a description of the developer’s recent experience developing affordable and market rate

owner occupied residential housing units in a mixed use, including adaptive reuse, context. For

all projects identify the degree to which the responding organization was involved in the

acquisition/purchase of the property, the entitlement process and the completion of construction.

For each project referenced, please state the amount of land developed, the building area

constructed and the amount of time taken to complete the project. Detail the role senior/principal

members of the responding organization played in each project referenced in the response.

Include contact information for at least three (3) of the projects referenced so that we have the

ability to confirm the performance of the project team.

B. Organizational Capacity (25%)

Include a detailed description of the qualifications of the principals as well as architects,

engineers, and other professionals who will comprise the development team. In addition, please

state the role each of these individuals/professionals will play in the development of the City-

owned land. The response should list other projects/properties currently under development, and

the amount of time the developer is willing to contribute to the development of the proposed

project. In addition, the developer should detail their ability to identify and engage stakeholders

in public process. Special consideration will be given to the team that has demonstrated an ability

to work with and obtain the support of adjacent landowners.

C. Financial Strength (25%)

Provide a description of the developer’s financial strategy for the development of for-sale

residential units. Detail the amount of liquid assets available to the developer and the amount of

capital the developer is willing to invest in the development of the City-owned land.

D. Resources (25%)

Describe the developer’s strategy and ability to work within HUD’s rules and regulations as noted

above. Describe any partnerships or associations to be developed to ensure HUD compliance and

programming.

E. Interview (if conducted) (10%)

The overall quality and content of the interview will be evaluated to determine the cohesiveness

and effectiveness of the project team.

PURCHASE AND DEVELOPMENT OF CITY-OWNED LAND RFQ NO. 16-146

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Evaluation Criteria

Award Criteria Weight X Rating = Points

1.

Experience

25

X

_____

=

_____

2. Organizational Capacity 25 X _____ = _____

3. Financial Strength 25 X _____ = _____

4. Resources 25 X _____ = _____

5. Interview (if conducted) 10 X _____ = _____

Total

=

_____

Offers will be evaluated on a cumulative point system using the following rating scale (fractional points

may be selected within this range).

Scoring

Outstanding . . . 10

9

Good . . . 8

7

6

Average . . . 5

4

3

Poor . . . 2

1

Not Addressed or Unacceptable 0

SECTION VIII – CITY COUNCIL ACTION

An evaluation committee comprised of City staff and others will review the responses and make a

recommendation to the City Council. Acceptance of any response may be made at any regular meeting of

the City Council within 120 days after receipt of said qualifications or within such longer period of time

as may be deemed reasonable by the City.

The City reserves the right to reject all submittals at any time for any reason.

After City Council approves the recommendation of a qualified developer, the City and the selected

developer will attempt to negotiate the terms of a Development and Disposition Agreement; if the

negotiations are successful, the parties would then execute the Development and Disposition Agreement.

SECTION lX – METHOD OF CONVEYANCE, PRICE AND CONDITIONS

The conveyance of the land will be by Development and Disposition Agreement between the City and the

selected developer. The land may be conveyed in phases and the Development and Disposition

Agreement will contain performance requirements that must be satisfied.

PURCHASE AND DEVELOPMENT OF CITY-OWNED LAND RFQ NO. 16-146

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SECTION X – PROPOSAL SUBMISSION

Proposals must be delivered to the City Procurement Office at 20 E. Sixth Street (2nd

Floor), Tempe, AZ

85281 before 3:00 P.M. on Tuesday, May 17, 2016. Proposals submitted after that date or time will not

be considered.

SECTION XI – GENERAL INFORMATION

Instructions. The City shall not be held responsible for any oral instructions. Any changes to this

Request for Qualifications will be in the form of a written addendum which will be communicated to all

vendors registered for applicable commodity codes.

City Rights. The City reserves the right to accept or reject any or all responses, to waive any informality

or irregularity in any response received, and to be the sole judge of the merits of the respective responses

received.

Restricted Contact with City Employees. All firms interested in this project (including the firm’s

employees, representatives, agents, lobbyists, attorneys, and sub-consultants) will refrain, under penalty

of disqualification, from direct or indirect contact for the purpose of influencing the selection or creating

bias in the selection process with any person who may play a part in the selection process, including, but

not limited to, the evaluation panel, the City Manager, Assistant City Manager, Department Heads and

other staff. This policy is intended to create an objective review process for all potential firms, assure that

contract decisions are made in public and to protect the integrity of the selection process. All contact on

this selection process must only be addressed to the authorized representative identified below.

Questions. All questions pertaining to this solicitation, subject property, and the selection process should

be directed to Lisa Goodman, CPPB, Procurement Officer at 480-350-8533 or emailed to:

lisa_goodman@tempe.gov.

PURCHASE AND DEVELOPMENT OF CITY-OWNED LAND RFQ NO. 16-146

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APPENDIX A

PURCHASE AND DEVELOPMENT OF CITY-OWNED LAND RFQ NO. 16-146

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APPENDIX B

PURCHASE AND DEVELOPMENT OF CITY-OWNED LAND RFQ NO. 16-146

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PURCHASE AND DEVELOPMENT OF CITY-OWNED LAND RFQ NO. 16-146

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APPENDIX C