Members of the Sonoma County Community Development Commission Commission Sonoma County Housing Authority James Gore 1440 Guerneville Road, Santa Rosa, CA 95403-4107 Chair David Rabbitt Vice Chair Susan Gorin Shirlee Zane Lynda Hopkins Request for Proposals for the Development of Margaret Van Vliet 2150 W. College Ave, Santa Rosa, CA Executive Director The Sonoma County Community Development Commission (Commission) is soliciting proposals from qualified development firms for the planning, design, construction and long-term management of an affordable housing community on its property at 2150 West College Ave in Santa Rosa, California. Qualified developers will demonstrate organizational capacity and experience with successful, high- quality mixed-income housing developments and property management. This document contains background information about the property and the general parameters of the envisioned housing development. Potential respondents are encouraged to ask for additional information, and to be innovative in their responses. Background Property Description The subject property is a 7.46-acre parcel located in incorporated Santa Rosa on the south side of West College Avenue near the intersection of Stony Point Road. Sited on the property is a collection of vacant buildings, including maintenance shops, offices and a small garage, all of which will presumably need to be demolished as part of the development project. Developable land on the parcel is approximately 5.7 acres after the apportionment of a creek trail and a maintenance easement dedication. The property is located in a mixed commercial and residential neighborhood. A transit transfer center with three bus lines is adjacent, providing readily accessible high-frequency public transportation to residents of this proposed community. Additional features include a community center and park within two blocks of the property. This property was declared as surplus by Sonoma County Water Agency in March 2014. In July 2017, the Sonoma County Board of Supervisors approved the sale of the property to the Commission for the appraised value of $4.2 million. After purchasing the property in 2017, the Commission held two community meetings to solicit stakeholder and neighbor input about the development of the property into mixed-income rental housing. Specific feedback from these meetings can be found in Attachment 6. Telephone (707) 565-7500 FAX (707) 565-7583 ● TDD (707) 565-7555 Project Objectives The loss of 5300 homes in the City of Santa Rosa and Sonoma County as a result of the fire disaster of October 2017 exacerbated an already existing housing shortage, especially for low- and moderate- income households. The Commission and the Sonoma County Board of Supervisors have prioritized production of housing, and intend to strategically use publicly owned property to achieve their goals of creating new housing opportunities. As such, the selection of a development partner and achievement of public policy goals on the subject property are of significant interest to the County of Sonoma. Innovative Economic Partnerships Sonoma County and the Commission are interested in pursuing innovative models of housing development on County-owned land that provide long-term economic benefits wherever possible. Examples could include (1) the use of a long-term ground lease that is structured to provide residual receipts payments to the Commission after a period of fifteen years; or (2) partnership structures that grant the Commission residual cash flow and/or a minority equity interest in the property over the long- term; or (3) option agreements structured to provide an opportunity for the County or Commission to consider ownership possibilities at natural recapitalization points, such as 20 or 30 years after commencement of operations. Proposers are encouraged to develop submissions that give consideration to such alternative economic structures, and to achievement of a substantial number of new rental units affordable to low-income families, seniors, and special needs populations (see Affordability, below). Affordability The City of Santa Rosa’s inclusionary policy establishes that a minimum of 15% of units must be affordable for a period of 55 years to households earning 80 percent of the area median income (AMI) or less. The Commission views this inclusionary percentage as a minimum and will give priority to proposals that can achieve greater levels of affordability, even on mixed income units that are proposed to not carry deed restrictions, without requiring additional local or state competitive funding. Submissions should explain how affordability will be achieved, including how the $4.2 million investment made by the Commission in the property will be treated within the project economics; the ways in which development and construction costs will be minimized to allow units that are not rent- restricted to meet current market needs; and the methods by which the development will balance the goal of expeditiously bringing units on line with the objective of driving affordability for lower-wage working families and individuals. Collaboration with the Commission Because the subject site is critically important to the overall goals of Sonoma County, the Commission has an interest in collaborating during the development process and as such will enter into an Exclusive Right to Negotiate Agreement (ERNA) with the selected developer in order to solidify the project economics and approach. A Development and Disposition Agreement (DDA) will be used to memorialize the agreements. 2 Community Process The Commission expects the selected developer to pro-actively engage the neighborhood surrounding the property, to promote an open communication process, develop an understanding of neighborhood issues, and develop a final project that responds to any pertinent neighborhood concerns. The developer should provide a narrative that describes the planned outreach process and the experience the developer has with this type of process. Developer Qualifications Capacity The Commission is seeking a developer with substantial financial capacity, access to credit, and real estate development experience. Interested parties should submit financial statements and other evi- dence of bank relationships sufficient to demonstrate financial strength. These documents will be considered proprietary and will not be subject to disclosure as part of public records. Track Record with Quality Development Projects Developers should provide information and descriptions of past development projects, including photographs, sample project data, examples of financial modeling, and how such past projects or buildings have performed since initial construction. Information that clearly demonstrates the ability to execute quickly on this development opportunity should be provided. Successful Property Management Experience The Commission is seeking a developer with experience effectively managing its completed properties, whether in-house or in partnership with a qualified third-party property management company. This includes affirmatively marketing available units to historically under-served and non-English speaking populations, demonstrating a clear commitment to the principals of fair housing, and designing lease requirements to ensure that a peaceful and safe environment is maintained for tenants and neighbors of the property. Development Standards and Entitlement The project must be consistent with the applicable policies in the City of Santa Rosa’s General Plan and the design guidelines set forth in the Development Code. To the extent that the City anticipates changes to the Plan and/or the Code to increase density, reduce greenhouse gas emissions, or pursue other public policy goals, the project should anticipate how it can meet such future-oriented objectives. The property is currently zoned R-3-30 which would potentially allow the development of approximately 170 units of housing on the 5.7 acres available for development. The remaining 1.76 acres make up the College Creek Flood Control Channel on which the Water Agency will reserve an easement to retain access for maintenance and operation of the channel. 3 The development of a multi-family project on the site may involve the following discretionary approvals: • Use Permit approval by the City’s Planning Commission. • Planned Development approval by the City’s Planning Commission, if changes from the quantified standards of the Development Code are proposed. • Design review by the City’s Design Review Commission and a Citizen’s Advisory Committee. Proposers should evaluate and describe the type of environmental review that they believe would be required for their proposed project. Summary of Developer and Commission responsibilities Once the ERNA is executed, the Commission anticipates that the successful Developer will undertake the following: • Establish a fair, effective, and collaborative partnership with the Commission. • Work collaboratively with the community during the planning and development process. • Prepare a development plan in collaboration with the Commission, which meets the Commis- sion’s development objectives and incorporates input from the City of Santa Rosa during its pre- application review process. • Lead and manage the land use and environmental entitlement process. • Provide funding for the predevelopment and planning process. • Negotiate and obtain approval of a Development and Disposition Agreement with the Commis- sion during the