San Francisco Redevelopment Agency


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118-14709-002                                                                                    Meeting of March 3, 2009

 

 

INFORMATIONAL MEMORANDUM

 

TO:                  Agency Commissioners

 

FROM:            Fred Blackwell, Executive Director

 

SUBJECT:    Receipt of submissions and selection panel’s recommendation for Request for Proposals for the development of 100-120 units of very low income supportive rental housing on Block 11A, southeast corner of Folsom and Essex Streets; Transbay Redevelopment Project Area, Citywide Tax Increment Housing Program.

 

 

EXECUTIVE SUMMARY 

 

The Agency issued a Request for Proposals (“RFP”) for Transbay Block 11A, the first 100% affordable housing development in the Transbay Redevelopment Project Area (the “Project Area”), on October 27, 2008.  The site is currently a parking lot located at the southeast corner of Folsom and Essex Streets (the “Site”).  The proposed development program for Block 11A pursues the goals of the Redevelopment Plan for the Transbay Redevelopment Project Area (the “Redevelopment Plan”) and San Francisco’s Ten Year Plan to Abolish Chronic Homelessness (the “Ten Year Plan”).  The RFP was issued in collaboration with the San Francisco Department of Public Health’s Housing and Urban Health Unit (“DPH-HUH”), and sought applicants to develop, own, and operate a 100-120 unit very low-income supportive rental housing development for formerly homeless people (the “Project”).  Applicants were also required to include a supportive services provider with experience providing services to the proposed tenant population.  DPH-HUH will provide an annual operating subsidy and services funding to the Project once it is completed.

 

Agency staff made extensive outreach efforts to attract submittals from qualified developers by the December 22, 2008 deadline. The Agency received two submittals, which both met the minimum threshold requirements defined in the RFP.  After interviewing both teams, a selection panel composed of Agency staff, a representative from DPH-HUH, and a representative from the Transbay Citizens Advisory Committee (the “CAC”), unanimously chose to recommend the applicant team consisting of BRIDGE Housing, Community Housing Partnership, Leddy Maytum Stacy Architects, and the University of San Francisco’s Citywide Case Management Program. Staff will present this recommendation to the CAC on March 12, 2009, and forward a final recommendation to the Commission by August 2009 to request authorization of an exclusive negotiations agreement and predevelopment loan agreement with the selected developer.

 

 

BACKGROUND

 

The Redevelopment Plan has a significant affordable housing component.  State law requires that at least 35% of all new housing units developed within the Project Area must be affordable housing, or approximately 950 of the 2,650 units projected to be built on Agency-controlled sites in the Project Area.  In order to meet the various housing needs of very low, low and moderate-income residents, the Agency will support the development of a wide variety of affordable housing types including family rental housing, senior housing, first-time homeowner housing, and supportive housing. 

 

There will also be a host of public improvements throughout the Project Area including new widened sidewalks on Folsom, Main, Beale, and Spear Streets, and a new 1.1-acre public park just north of Folsom Street between Main and Beale Streets.  The revenue generated by the sale and development of the State-owned property will go to the Transbay Joint Powers Authority (“TJPA”) to help pay for the cost of building the new Transbay Transit Center on the site of the existing, outmoded Transbay Terminal.  As detailed in the financial plans prepared by the TJPA, Block 11A, along with other stand-alone affordable housing projects to be developed within the Project Area, will not contribute funding to the Transbay Transit Center.

 

In addition to furthering the goals of the Redevelopment Plan, the proposed development at Transbay Block 11A is consistent with the Mayor’s Office of Housing and the City’s Consolidated Plan.  When completed, the Project will contribute between 100 and 120 units toward meeting the goals for development of supportive housing in the Ten Year Plan.  The CAC members reviewed the RFP and a member of the CAC participated in the evaluation panel for this Project.  In addition to the CAC’s participation, the RFP includes input from community groups, including the Rincon Hill Neighborhood Association.

 

Beginning in the spring of 2007, Agency staff conducted extensive community outreach to neighborhood groups and interested parties to ensure that the surrounding community understood the supportive housing model and why it is being proposed for the Site.  Two people from the Rincon Hill Neighborhood Association who became interested in the Project Area through community outreach for this Project have since been appointed to the CAC.

 

 

DISCUSSION

 

The RFP was issued on October 27, 2008, with submittals due by December 22, 2008.  The development program as described in the RFP for the Site is as follows:

  • Provide for the development of 100-120 units of supportive housing for formerly homeless individuals that are referred by DPH-HUH while minimizing Agency financial subsidy;
  • Provide a supportive services provider and plan to serve the needs of the tenants;
  • Provide a property manager with experience successfully managing supportive housing for formerly homeless people, and a property management plan that reflects this experience;
  • Provide attractive, neighborhood-serving ground floor retail space along Folsom Street at the corner of Essex Street;
  • Provide a program that incorporates excellent, visually interesting design and financial feasibility;
  • Incorporate “green” and sustainable building strategies, with the goal of reaching a Green Point score of at least 100 points as defined by the Green Point Rated Program;   
  • Provide a plan to undertake extensive community outreach and establish positive links with surrounding neighbors and the larger community, both during development of the Project and during the ongoing operation of the Project;
  • Conform to the Project Area’s Development Controls and Design Guidelines and the Project Area’s Streetscape and Open Space Plan.

 

Two submittals were received:

  1. BRIDGE Housing Corporation and Community Housing Partnership with Leddy Maytum Stacy Architects and University of California San Francisco’s Citywide Case Management Program (“CHP/BRIDGE Team”); and
  2. Tenderloin Neighborhood Development Center (as developer, property manager and services provider) with David Baker Architects and Fougeron Architecture (“TNDC Team”).

 

As required by the RFP, the submittals included qualified teams comprised of a housing development corporation, an architect, a property manager, and a supportive services provider (together, the “Applicant”) to develop, manage and provide resident supportive services for up to 100-120 units of supportive housing for formerly homeless people referred by DPH-HUH.

 

Upon receipt of the Applicants’ submittals, Agency staff verified the completeness of each submittal as required by the RFP.  Both submittals were complete.  Agency staff thoroughly reviewed each of the submittals, and a selection panel (the “Panel”) interviewed the two teams on January 30, 2009. The Panel consisted of four Agency staff, a representative of DPH-HUH, and a representative from the CAC.  Agency Contract Compliance staff monitored the evaluation process.  After the interviews, the Panel scored each team on the selection criteria described in the RFP. The result of the scoring was the unanimous selection of the CHP/BRIDGE Team.

 

The CHP/BRIDGE Team submittal offered a proposed development concept most consistent with the RFP, including the most developed and appropriate supportive services plan.  The CHP/BRIDGE Team was also particularly responsive to the input from the CAC and other neighborhood groups that was included in the RFP and had the most comprehensive Community Outreach Plan.  Since Transbay Block 11A will be the first 100% affordable housing development in the Project Area, working effectively and collaboratively with the CAC and other neighborhood groups will be crucial to ensuring the success of this Project for its future residents and the greater neighborhood. 

 

Staff will present the CHP/BRIDGE Team and their project concept as the recommended developer to the CAC on March 12, 2009. Based on comments and input from the CAC, staff will request the Commission’s authorization of an Exclusive Negotiations Agreement and predevelopment funding by this summer.

 

 

Originated by Elizabeth Colomello, Development Specialist)

 

 

 

Fred Blackwell

Executive Director

 

Attachment:    Informational Memorandum, October 7, 2008

 

cc:                    Transbay CAC w/o attachments