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HomeMy WebLinkAboutR07-Redevelopment Agency . . . . . DEVELOPIIKl'lT DEPAJlT.IIYU OF THE CITY OF SAIl BElllWIDIRO IlEOUEST FOR COIMISSIOIl/COUlfCIL ACTIOII From: U51UU5Ul J. IIBIIDIRSOII Executive Director Subject: STAruS IlEPORT - MT. VlRlIION CORRIDOR IlEQUEST FOR QUALIFICATIOIIS Date: JAllUAJlY 4, 1991 Synopsis of Previous Cammission/Council/Comaittee Action: At the November 19, 1990 Community Development Commission meeting, the Commission took certain actions in connection with the acquisition of consultant services for the Mt. Vernon Corridor Redevelopment Project Area. Recommended Motion: (Community Development Comaission) That the Community Development Commission receive and file the Status Report relating to the Mt. Vernon Corridor Request for Qualifications. ~Ltt J. IIBIIDIRSO , Executive Director Development Departm t Contact Person: Ken Henderson/Susan Morales Phone: 5065/5081 Project Area: Mt. Vernon Ward(s): 1 & 3 Supporting Data Attached: Staff ReDort FUNDING REQUIREMENTS: Amount: $ n/a Source: n/a Budget Authority: n/a Commission/Council lIotes: KJH:dlm:5254R Agenda Item 110. 7 . . . . . DEVELOPIIEIIT DEPAJrnomlor.r STAFF REPORT Status ReDort - Mt. Vernon Corridor Reauest for Oualifications Ba,.1rlJrOlDld On August 10, 1990 the Development Department issued a Request for Qualifications for a "professional redevelopment services" with respect to the redevelopment of the Mt. Vernon Avenue Corridor between 4th and 9th Streets. As stated in the RFQ document, the consultant services were for the purpose of augmenting the Department's professional capabilities in developing a specific plan; conducting an environmental review; conducting analysis and assisting in negotiations with developers in the acquisition and disposition of real property; relocation services; conducting site demolition analysis; conducting market feasibility studies. Though not specifically stated in the RFQ it was understood that project financing and engineering studies would be addressed in the actual proposal process. At its November 8, 1990 meeting, the Redevelopment Committee considered and recommended approval of staff's plan for providing consultant services. The plan was conceived on the basis that negotiations will be conducted with the qualified respondent to the RFQ and that those qualified respondents will make oral presentations to a selection committee in lieu of the Department having to issue a follow-up request for proposal. The plan allows for staff to: (a) Hire an economic research firm to conduct a market feasibility study of the area (b) Establish a consultant team for providing all the necessary project services (c) Review all reports, studies, data base, study methodologies and instruments or tools for consistency with meeting project objectives. The Community Development Commission took action at its November 19, 1990 meeting that served to implement the aforementioned work plan. The Commission took action to (i) grant conceptual approval of the preparation of a specific plan for the project; (ii) authorized staff to initiate an economic feasibility study. This will be conducted by consultant service providers currently under contract with the Department; and, (iii) authorized staff to negotiate and recommend contracts for the provision of developer consultation services, specific plan development services and environmental review services. proiect Outline The Mt. Vernon Avenue Corridor between 4th and 9th Streets, referred to as the Mt. Vernon Avenue Theme Area, represents an area of the City that has suffered structural dilapidation, infrastructure deterioration and a general decline in its economic base. The Corridor is a key component of the Mt. Vernon Redevelopment Area in that it acts as the centralized business district for the area. Solving the economic problems and blight of the entire Redevelopment Area will most likely depend on the emergence of the Corridor between 4th and 9th Street as an economic force. KJH:VM:dlm:5254R COMMISSION MEETING Meeting Date: 1-7-91 . . . . . DEVELOPMENT DEPARTMENT STAFF REPORT January 4, 1991 Page -2- The "Theme Area" concept was devised to capitalize on the rich ethnic and cultural heritage of the area. The concept essentially requires that all structures and infrastructure reflects a central theme which design and ambience would form the marketing program and thus shape the economy of the area. It is expected that the project will serve a wide population base, consistent with the theme concept. It is anticipated that the project will be designed to reflect the hispanic motif, utilizing the store front concept of retail and service outlets and incorporating local parks and buildings whose design and purpose fits the overall theme. ADD roach In general, the project must be assessed as viable both on a short term and long term basis. Theme projects can and do lose their "lustre" and marketing edge sometime during the projects "mid-life" period. This may occur after the first ten years of the project's life. In some critical situations, this could occur as early as the fifth year of project's life. Programs, therefore, must be developed and implemented both initially and at the project's critical "mid life" phase to avert any major downturn. The fact that the project represents the first significant capital outlay within the redevelopment project area could cause significant financial distress for the project area, financing sources, guarantors (if used), and the City as a whole. Specific systems were built into the development of the project to provide the type of prudence that is necessary to avert financial distress. The project has been designed to: 1. Determine needs of the area's population in terms of goods/services income and overall quality of life. This would be considered through a market study that would quantify their needs and, assess relevant avenues of supply. This would in turn provide the basis for marketing to customers and foods/service providers. The project's financing and financial feasibility is directly linked to the market feasibility study. 2. Create a project theme through design standards along with the formulation of project objectives, development and land use and streetscape concepts and public infrastructure. 3. Create specific crosswalks between the market study and other relevant phases of the project, e.g. market study to project specific financial feasibility; market study to design guidelines; market study to business mix; and market study to a marketing program. 4. Provide for demolition and relocation activities. 5. Provide for project specific assessment and financing. 6. Ensure that there is adequate infrastructure and that the project does not cause stresses to the environment including the public infrastructure. KJH:VM:d1m:5254R COMMISSION MEETING Meeting Date: 1-7-91 . . . . . DEVELOPMENT DEPARTMENT STAFF REPORT January 4, 1991 Page -3- Profect Status To date several activities have occurred that are consistent with the time plan for the project. These activities include the following: 1. All proposals have been evaluated for consistency to project objectives. The proposals were grouped into two categories: (a) Proposals, relating to the economic feasibility study. The Department currently has contractual agreements with three firms which services were considered appropriate to this study. These are Natelson Company, Keyser Martson Associates and Kotin, Regan & Mouchly, Inc. (b) Qualification statements of proposing entities were also reviewed. Several firms responded to the request for qualifications. Out of those, four finalist firms were selected for further consideration. An extensive review was conducted on these four proposals. The four finalist firms were Urban Futures, Inc.; The Arroyo Group; Turrini & Drink; and, The Planning Center. 2. The work plan for developer consultation and the specific plan were reviewed for consistency with project objectives, and to provide sufficient detail for the purpose of negotiations. This was to ensure tha a clear understanding was derived on what is needed to be accomplished and to be able to communicate same to the consulting service providers. 3. A determination was made that by conducting negotiations with the finalist firms and allowing a period for presentation would obviate the necessity for a request for proposal (RFP). It was instead decided that through the negotiation and interview process, a better more pro fluent process will be realized. 4. Basic standards for negotiating the proposals were outlined. These standards drew reference to scope of services; company history and experience in projects of a similar nature; approach and methodology; implementation program or action plan; implementation schedules; criteria for success and evaluation measures. 5. Project components were categorized after review of overall project objectives and statements of qualifications. These components consisted of consulting services in the areas of: (i) (H) (Hi) (iv) (v) (vi) Specific Plan Development Developer Consultations Environmental Review Financing , Relocation' Engineering. Note that the component dealing with economic feasibility studies were dealt with separately since the Department maintains ongoing relationships with firms for such purpose. KJH:VM: dIm: 5254R COMMISSION MEETING Meeting Date: 1-7-91 . . DEVELOPMENT DEPARTMENT STAFF REPORT January 4, 1991 e 6. Page -4- During the period beginning December 17, 1990 and ending December 21, 1990, each of the firms were counseled on the projects parameters, proposal requirements and the actual interview process. Negotiations were held with Turrini & Brink; Urban Future, Inc.; The Arroyo Group; The Planning Center and Natelson Co., Inc. The issue of severability was discussed with each firm, so as to inform them of the City's intent of building an independent team. This meant that the prime consultant and providers of subcomponent services may be structured differently in their relationship than what was originally proposed. Detailed information was provided on the interview so as to better facilitate the proposal process and to promote fair and equitable treatment in the procurement of services. Negotiations with Natelson Co., contract document is underway. should begin during the week of this agreement included: 7. a. b. c. d. e. f. e g. h. 1. j. k. 1. Inc. was finalized. Development of the Start-up of this phase of the project January 7, 1991. Items negotiated for Conducting of field survey to determine existing uses, competition, and surrounding land uses. Survey instruments and methodologies. Conducting of intercept interviews. Conducting of business survey to determine current market base. Conducting of surveys. Examination of reasons for business failure and trends thereof. Establishment of trade area. Conducting of socieconomic and demographic analysis of the trade areas. Determination of market support. Validation of data base to be used in the study. Development of method for projecting future growth in market base. Creation of methods for determining financial feasibility, particularly on a project specific basis. 8. It is anticipated that interviews with each of the proposers will be conducted by mid month (January, 1991). Information is being developed to provide the interview panel an understanding of each "proposal". Also the interview format and areas of concern are being identified. The interview panel would also be provided with questions relating to specific area of the project for interview purposes. A package of information is currently being developed to forward to each qualified firm in order to better prepare them for their respective interivew. Staff recommends adoption of form motion. KJH:VM:dlm:5254R COMMISSION MEETING Meeting Date: 1-7-91 e