Item5_AEDC_Blocks16-18_Final Draft — original pdf

Backup

Implementing inclusive and equitable public development services as a non-profit partner to the City of Austin August 7, 2023 Urban Renewal Board-Special Meeting Updated Pre Development Analysis Austin EDC 2 Block 16 & 18 Disposition- Detail of Development Team Selection Focus: Development Team & Vision/Approach Focus: Project Specifics/Finances Phase I Phase II RFP Registration and Release Evaluation Committee reviews proposals and selects a shortlist Evaluation Committee conducts interviews with shortlisted teams Shortlisted teams record short presentation for community feedback AEDC releases requirements and community feedback to shortlisted teams AEDC releases requirements and community feedback to shortlisted teams Urban Renewal Board votes on recommended team City Council votes on recommended team Aug-Oct 2023 Nov 2023 Nov 2023 Dec 2023 Jan 2023 Feb 2024 April 2024 May2024 3 Evaluation Committee Composition MOU: 4.c.i: The URA Designated Representative will designate the members of the evaluation committee for the review and scoring of responses. The evaluation committee shall consist of no more than six members comprised of: (A) three members of the URA board of directors (the "URB"); (B) two members recommended by the AEDC having transactional, technical and/or financial expertise relevant to the Project; and (C) one member of the general public representing the interests of the community in which the Project will be located. Stakeholder Working Group Proposal Invited representatives, based on experience/role and involvement • 11 Members • • Open seats: Nominations closed (welcomed through July 14) • Final Stakeholder Working Group approved by Urban Renewal Board 1 1 renter resident 2 1 owner resident 3 1 property owner 4 1 business owner 5 1 business renter 6 1 employee 7 1 neighborhood association rep 8 1 cultural/arts/music organization rep 9 1 local church rep 10 1 institution rep 11 Open 12 Open Stakeholder Committee Elects representative for Evaluation Committee Update: Nominations for August Meeting First Meeting: September Adjacent parcel owners would have dedicated access to the Developer, and could join Stakeholder Group: Key Goals—Final Drafting The Development will contribute directly to the District’s historic African American legacy by engaging residents, businesses, and community institutions within the historic Six Square Cultural District while catalyzing a contemporary and vibrant hub for arts, culture, business, and living that is open to all Austinites. The Development will achieve best practice in equitable development strategies by considering past inequities and the racial wealth gap experienced by underserved, under-represented, and marginalized individuals and groups in all aspects of bringing the potential of Blocks 16 & 18 to fruition. Most importantly the project will provide affordable housing, cultural venue(s) and neighborhood serving businesses that contribute to equitable opportunity. The Development will engage long-time neighborhood stakeholders (residents and businesses), encourage the return of prior residents and businesses, and attract new residents and businesses that represent the historic cultural legacy of the district. The Development will successfully balance programs that support increased tourism to support local businesses and cultural venues with maintaining the day-to- day uses by existing residents and businesses. The Development will provide a clear partnering and operating strategy to accommodate the affordability needs of some of the specialized program uses, integrating long-time and emerging artists and businesses representing the cultural heritage of the district. As feasible, the development will demonstrate pathways to ownership for residents, businesses and cultural organizations to minimize further displacement by reducing exposure to market rate rent increases. The Development will contribute directly to the eclectic and vibrant urban character of the neighborhood—helping facilitate enjoyable user experiences walking in and around the Developments, providing options to support the multi-modal transportation needs of residents and businesses to retain a walkable district, and balancing the amount of any related parking with proposed actual demand. The Development’s architectural and urban design will respond to, and be respectful of, the adjacent and nearby historic landmarks. This specifically includes, but is not limited to, the Victory Grill (1104 East 11th); African American Cultural and Heritage Facility (912 East 11th); Herman Schieffer House (1154 Lydia) and Moonlight Tower (Intersection of Lydia and East 11th). Goal Outcome 1 Goal Outcome 2 Goal Outcome 3 Goal Outcome 4 Goal Outcome 5 Goal Outcome 6 Goal Outcome 7 Austin EDC 6 Key Terms/Structure Assumptions-Highlights • Development Teams: could include multiple developers aligning for the proposal. Blocks could be financed and developed separately • Align with existing entitlements (URP/NCCD), not including Affordability Unlocked • Ground Lease for minimum 60 Years, pending final financing terms; Accepting other transaction structure proposals Priority will be given to project that provide over 75% of program area to public benefit affordable housing plus cultural venues and, if feasible, affordable retail/working spaces—program area not including outdoor spaces) Required Affordable Housing: • Maximize the number of affordable housing units, with no less than 50% of units restricted to households earning at or below 60% MFI (on average) for rental units and 80% MFI for ownership units if provided. Prioritize models with pathways to ownership Required Cultural Venue Minimum 20,000 SF of Cultural Space (Ref Resolution could be up to 35,000) • Commercial (Priority Desired) Small neighborhood serving/district aligned business space Food-based retail Pathways to ownership & affordability • Urban Design/Multi-modal accommodation and shared parking • • • • • • • • Austin EDC 7 Final Evaluation Criteria - Phase I Project Team (25%) • Past project experience confirming that projects of similar scope, size, quality, aesthetics and construction were successfully completed or are near completedKey • Professionals' qualifications and expertise as it relates to proposed project • Affordable housing financing, development, and operating experience • Team members have experience working together • Experience in Austin (regulatory, construction, Project Team member primary offices) • Experience in urban areas with minimal disruption to community • Experience partnering on team to align with Equitable Development goals, able to implement innovative models of inclusion, participation and for affordability in operations of commercial/cultural spaces Development Program (25%) • • • • Required program elements of affordable housing and cultural venue(s) (pass/fail) Project concept alignment with Development Program, Design and Character Requirements Project Concept’s alignment with Operation requirements Inclusion of desired features, with an emphasis on high priority elements • Innovations to accommodate affordability for both housing, cultural and working spaces. Community Impact (20%) • • • • • Demonstrated collaborative and partnering approach to developing properties with communities, for communities. Experience incorporating W/MBE and other underrepresented firms, investors, partners, and occupants in projects Inclusion of underrepresented firms, investors, partners, and occupants Experience supporting local communities through direct partnering relationships with immediate stakeholders Equitable Development Goal Alignment Financial Plan (15%) • • • • Financial capacity for project scale and schedule Access to capital, experience with capital providers included in financial plan Reasonableness of notional financing plan Alignment with Financial and Structural requirements (pass/fail) Project Execution and Risk (15%) • • • Understanding of major risks with effective tools to mitigate Entitlement approach Reasonableness of schedule • Austin EDC Experience with complex urban sites and construction mitigation measures 8 Teams demonstrates collaborative approach to developing with and for communities Direct partnering relationships with immediate stakeholders for the project Anticipated Evaluation Criteria - Phase II (may be amended based on Phase I results) Project Team (10%) • • Project Proposal Execution & Risk (30%) • Reasonableness and desirability of schedule • Execution plan with mitigation of community impact during construction • Exceptions to LOI • Sound project management strategy • Sound operating plan for private facilities, infrastructure and open spaces Financial Plan (30%) • • • Reasonableness of development assumptions (rental rates, density, absorption, etc) Reasonableness of financial structure and funding sources Track record of Team’s ability to secure unique funding sources Development Program (20%) • • Program refinement reflects improvements from interview and stakeholder presentation Innovations to accommodate affordability for both housing, cultural, and working spaces Community Impact (10%) • • • Final Community Stakeholder Input Inclusive Community engagement strategy & activation plans Demonstrated commitment to incorporating underrepresented firms, investors, partners and occupants in the project Austin EDC 9 Partnering Opportunities/Potential Occupants Phase I: Adjacent Parcels African American Heritage &Cultural Facility The existing facility will go through a strategic planning effort and potential expansion in 2023-4. Developers are to consider various ways to integrate new programming space into the development that might complement and integrate the existing facility. Specifically: • • • Additional cultural space located along 11th adjacent to the existing facility could provide additional activation and vibrancy to the block. Access in and to existing facility must be maintained, including during construction. Existing Mural facing Block 16 must be preserved. Opportunities to relocate and/or reposition for best viewing capacity shall be proposed. City of Austin Two parcels immediately adjacent to the African American Cultural and Heritage Facility (AACHF) are not part of this RFP and are currently under Economic Development Department Supervision. Developers are able to propose what/how these parcels could be best utilized as a part of the design of Block 16 if future AAHCF programming expansion is accommodated in Block 16. Austin Revitalization Authority ARA is a long-standing property developer in East Austin, specifically having developed the closeby Street-Jones and Snell buildings. Additionally ARA owns the two parcels to the east of Block 18. Phase II: Potential Tenant Occupants Other organizations and partners have expressed interest, such as cultural venues, a small grocery, a pipeline of potential restaurant and small business tenants, and will be revealed within the second phase RFP, or any related addendum. *partners can be on multiple proposal teams, there will be formal networking opportunities in both phases. Austin EDC 10 Proposed Schedule *subject to change Austin EDC 11 Phase I Registration Open, Info Session for potential Proposers August 1, 2023 RFP Release Date August XX, 2023 Pre-proposal Meeting-virtual August 31, 2023 Site Walk/Networking Event for Proposers and potential project team (Registered Proposers Only) September 14, 2023 Deadline for Questions September 22, 2023 @ 4:00pm CDT Q&A and/or Addendum Posted September 29, 2023 Phase 1 Proposals Due October 27, 2023 @ 4:00pm CDT Selection Committee Review November 2023 Notification of Interview Invitations November 2023 Proposer Interviews November 2023 Stakeholder Feedback Period December 2023 Phase II* Invitation to Phase II January, 2023 Phase II January – March 2024 Phase II Developer/Partner Matchmaking (Shortlisted Proposers Only) January-February 2024 Final Evaluation April 2024 Selection/Council Approval May 2024 August 7- Urban Renewal Board Agenda • Review & Approval of Evaluation Criteria, designating remainder of decisions for release to the Designated Representative • August: Launch of Phase I RFP • August Meeting: Review & Approval of MOU Revisions • August Meeting: Stakeholder Working Group Austin EDC 12