Submitted By: James Haynes
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Presentation By: James Haynes
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Department: Community Development Services
FORMAL TITLE:
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Award of development opportunity, and an Affordable Housing Agreement, to MCAN, LLC, to construct and sell an affordable housing unit on surplus property in West Ocala identified as Parcel 2849-005-027
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place
PROOF OF PUBLICATION:
Posted for the public on May 28, 2025, via ProRFx
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BACKGROUND:
In April 2023, at its annual strategic planning session, Ocala’s City Council established addressing the affordable housing shortage as one of its strategic initiatives. In response to this initiative, City staff formed an Affordable Housing Initiative Team to develop ideas and implement strategies to engage for-profit and not-for-profit developers in the development of single-family and multi-family affordable housing projects. The initial “surplus lots” list was established, and an infill strategy was initiated to build single-family structures on scattered sites.
By and through Resolution 2023-40, adopted by City Council on September 19, 2023, the City currently holds an inventory of vacant lots located throughout the city that it intends to offer for sale to qualified for-profit and non-profit developers, builders, partnerships, and/or agencies to develop and construct new affordable housing units.
FINDINGS AND CONCLUSIONS:
On May 2, 2025, the City issued Invitation to Negotiate (ITN) No.: GRM/250249 seeking proposals from qualified firms for the construction of an affordable housing unit. ITN No. GRM/250249 closed on July 8, 2025, with one response from MCAN, LLC.
On August 13, 2025, the City’s Selection Committee met for the purpose of evaluating MCAN, LLC's proposal. The proposal received a passing grade from the Committee, and MCAN, LLC, made its formal presentation to the Selection Committee on September 29, 2025. The Selection Committee asked pertinent questions concerning the project and MCCAN, LLC, asked questions about the project's parameters. After the question-and-answer session, Selection Committee members discussed and individually scored the proposal. MCCAN, LLC, received a final score of 96.40/100 for the project and a Notice of Intent to Award was issued.
• Project Description: A single-family residential home, “the Katie Model”, with 1540 square feet of livable area to include three bedrooms, two bathrooms, and a one-car garage.
• Estimate Cost of Construction: $189,003
• Estimated Purchase Price: $229,900
Staff recommends approval of the award of surplus lot 2849-005-027 to MCAN, LLC.
FISCAL IMPACT:
The $5,366 generated from the property sale will be added to the Affordable Housing Incentive account (112-345-000-000-02-34105) to support future affordable housing initiatives. Once construction is complete, this property will be added back to the tax roll and connected to City electric, water, and sewer services.
PROCUREMENT REVIEW:
These services were procured in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
This Agreement will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve
• Approve with Changes
• Table
• Deny