Item B: Review of Responses to 10th & Charnelton Request for Proposals

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EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY th Work Session: Review of Responses to the 10 & Charnelton Request for Proposals Meeting Date: October 11, 2006 Agenda Item Number: B Department: Planning and Development Staff Contact: Denny Braud www.eugene-or.gov Contact Telephone Number: 682-5536 ISSUE STATEMENT th A Request for Proposals (RFP) was issued in June 2006 for the sale and development of the 10 & Charnelton development site. The Urban Renewal Agency (URA) is being asked to review the responses to the RFP and direct the Agency Director to enter into exclusive negotiations with the preferred RFP respondent. BACKGROUND The RFP identified the development objectives to be used in the evaluation of proposals. The objectives include development team experience, urban design, active uses, sustainable development, timeliness, financial feasibility, and net financial cost/benefit. Three proposals for the purchase and development of the site were submitted by Beam Development, TK Partners, and Sockeye Development. Summaries of the proposals are included in attachments A-C. Copies of the RFP and the responses were included in the council packet under separate cover. On September 28, 2006, the Eugene Redevelopment Advisory Committee (ERAC) reviewed the RFP responses. Because of the complexity and specificity of the development objectives under which the proposals were to be evaluated, staff expanded the ERAC group to include expertise in the areas of sustainability (Josh Proudfoot, Good Company), financing (Erik Riechers, Pacific Continental Bank), and housing development (Jim McCoy, Housing and Community Services Agency). ERAC has recommended that staff move forward with the selection of the TK Partners proposal. Overall responsiveness to the RFP, feasibility, timeliness, development team experience, incorporation of ownership housing, urban design, and subsidy level were all cited as factors in its recommendation. Although the Beam Development and Sockeye Development proposals were also considered to be very positive, ERAC had concerns regarding feasibility and the significant level of subsidy that would likely be required for their proposed projects to move forward. An exclusive negotiation period of 90 days is being recommended for the preferred proposal. During this time, staff would further investigate and negotiate project details. Negotiations would include selling price, further design and use details, financing due diligence, project timing, and other terms that will be brought back to the URA for approval prior to the signing of a purchase and sale agreement. th The 10 & Charnelton development site includes the 1/4-block former Sears building property, along th with the 1/8-block surface parking lot on the northwest corner of 10 and Olive. The other half of the L:\CMO\2006 Council Agendas\M061011\S061011B.doc