Submitted By: Roberto Ellis
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Presentation By: Aubrey Hale
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Department: Growth Management
STAFF RECOMMENDATION (Motion Ready):
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Approve award of development opportunity ITN#GRM/210512 and redevelopment agreement with D & S Development, LLC to construct affordable housing units on properties located in the West Ocala CRA subarea.
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place, Economic Hub
PROOF OF PUBLICATION:
A Public Notice relating to the disposal of subject properties was published on September 27, 2021, in the Ocala Star Banner. The notice of Intent to Award was posted on the City of Ocala website on May 3, 2023.
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BACKGROUND: In September 2021, the City of Ocala issued a notice of intent to dispose of public properties within its West Ocala Community Redevelopment Agency (CRA) Subarea. The solicitation (ITN#GRM/210512) was listed from September 21, 2021, to November 4, 2021. The solicitation invited the submission of proposals from qualified residential builders to purchase property and construct affordable housing.
The Procurement and Contracting Department received two proposals. Several negotiation meetings were held with both proposers. During this process, SavannaPub, Inc. opted to withdraw from award consideration. D & S Development, LLC proceeded to agree terms and participate in the financial review process. The total appraised value of all five parcels is approximately $41,174. During the negotiation process, D&S and the City agreed on a purchase price of $7,000 for all parcels. The City will make a property donation valued at $34,174 as an incentive. A Purchase and Sale contract will be processed to convey the properties through a special warranty deed after the inspection period is completed.
D&S Development, LLC is required to invest approximately $559,695 to construct four single-family houses and one duplex apartment on five parcels located in the West Ocala CRA subarea. The attached redevelopment agreement sets out the requirements of D&S Development, LLC, and will ensure that the properties are developed in compliance with applicable zoning and land development standards. The maximum time for construction will be 18 months. Upon completion, all six units must remain affordable for a minimum of 10 years as defined in Sec. 106-102 of the City of Ocala Land Development Code. If desired, D&S Development can apply for incentives from the Affordable Housing Incentive fund which, can offset costs for building permits and impact fees, sidewalks, and more.
FINDINGS AND CONCLUSIONS:
Proposals were evaluated and scored for Housing Cost, Design, Construction Schedule; Financial Feasibility of Project, Financial Capability of Respondent; and Experience & Qualifications. The tabulated scores by the Selection Committee are provided in Table 1.
Table 1. Scoring by Selection Committee.
The FRC Committee met on December 1, 2022, and January 5, 2023, to decide on the financial ability of the proposal. The Committee initially determined that there was insufficient information to prove financial ability. The Procurement and Contracting Department requested additional documentation from D&S to meet the financial requirements; documentation showing proof of equity and financing approvals was subsequently provided. An Intent to Award the West Ocala Affordable Housing Project lots to D& S Development, LLC was posted on May 3, 2023.
Properties will generate additional ad valorem tax revenue for the City when conveyed. A redevelopment agreement with D & S Development, LLC is deemed to be in the best interests of the City, staff recommends approval of the ITN Award and redevelopment agreement.
FISCAL IMPACT: The revenue generated from the sale of the properties will be added to the Affordable Housing Incentive account (001-345-000-000-02-34105) to support future affordable housing initiatives.
PROCUREMENT REVIEW: These services were procured in compliance with the City’s procurement policy.
LEGAL REVIEW: This Agreement has been reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with changes
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• Deny