HomeMy WebLinkAbout2024-05-21; City Council; Resolution 2024-112 Attachment A
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Request for Proposals RFP 24-XX
Acquisition, Rehabilitation, or Redevelopment of Real
Property, 945 Chestnut Avenue, Carlsbad, CA 92008
May 23, 2024
PROPOSAL RESPONSE DEADLINE:
July 15, 2024, at 12:00 p.m.
CITY OF CARLSBAD
Housing and Homeless Services Department
1200 Carlsbad Village Drive
Carlsbad, CA 92008
THE CITY OF CARLSBAD ENCOURAGES THE PARTICIPATION OF MINORITY- AND
WOMEN-OWNED BUSINESSES
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Table of Contents
General Information and Background .......................................................................................................... 3
Invitation to Respond ................................................................................................................................... 5
Timeline for Submission and Award ............................................................................................................. 5
General Terms and Conditions ..................................................................................................................... 5
Scope of Project ............................................................................................................................................ 5
Proposal Content .......................................................................................................................................... 7
Evaluation Process and Criteria .................................................................................................................... 8
Offer to Exclusively Negotiate & Award Process ......................................................................................... 9
Disclaimer ................................................................................................................................................... 10
Conflict of Interest ...................................................................................................................................... 10
Prohibited Contracts ................................................................................................................................... 10
Technical Assistance, Clarification, and Addenda ...................................................................................... 11
Submittal Process........................................................................................................................................ 11
Appendix A – Site Map ...................................................................................................................................
Appendix B – Capital Needs Assessment .......................................................................................................
Appendix C – Template Purchase and Sale Agreement ................................................................................
Appendix D – Affordable Housing Agreement ...............................................................................................
Appendix E – Preliminary Title Report ............................................................................................................
Appendix F – Property Condition Report
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General Information and Background
Pursuant to California Government Code §54220 et seq., the City of Carlsbad (the “city”) is exploring
the potential sale of the real property owned by the city located on 945 Chestnut Avenue, Carlsbad,
CA 92008 in the City of Carlsbad, County of San Diego, State of California and commonly known as
the Chestnut Apartments property (the “Subject Property”). The purpose of this RFP is to explain the
requirements and procedures for the submission of formal proposals from parties interested in the
acquisition, rehabilitation, and possible redevelopment of the Subject Property.
The property is currently in a temporary contingent ownership status, with the current owner,
Solutions Chestnut, LLC, a subsidiary of Solutions for Change, Inc. (collectively “Solutions for Change”),
and the City of Carlsbad in escrow. The contingent ownership status will continue during this RFP
period and conclude upon closing of a concurrent escrow with the successful proposer. During the
RFP period, the city will be the sole decision-making authority of the purchase assignment of the
property.
The Subject Property
The property was built in 1975 and consists of three separate apartment buildings along with an
attached laundry building and a small storage room. The apartment buildings are typical slab-on-
grade, two-story, wood-framed structures. The exteriors of the buildings are stucco with a small
amount of wood-shingle siding. The roofs are flat with a hot mop (asphalt) application with gravel on
top.
The property consists of a 16-unit, two-story apartment project in three buildings with walk-up access
for residents. The building was originally constructed in 1975 of wood-frame construction with a
stucco and wood facia and trim exterior. Within the apartment buildings, there are four one-
bedroom, one bath units (636 square feet each) and 12 two-bedroom, one-bath units (851 square
feet each). Development amenities include a laundry facility. There are a total of 26 open parking
spaces resulting in a parking ratio of 1.62 spaces per unit.
All measurements are approximations and must be field verified by Respondents. The Subject
Property will be sold in an “as is” condition. A recent Capital Needs Assessment (CNA) detailing the
existing condition of the property can help inform decision making regarding the scope and extent of
necessary renovations or redevelopment efforts (Appendix B). Prospective Respondent(s) will be
required to undertake their own independent inspection and investigation of the Subject Property to
verify information provided.
Site Map
For an aerial view of the parcel, please see the attached site map (Appendix A).
Adjacent Uses
1. The Subject Property is located within minutes to Highway 76 and 78, and Interstate 5.
2. The Subject Property is located near recreational, commercial, and retail amenities.
3. Carlsbad has a proximity to the major markets of San Diego (38 miles south), Orange
County (15 miles north) and Los Angeles (80 miles north).
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Property Information
Below is an outline of information applicable to the Subject Property. This outline provides general
information and does not contain all applicable information. For more information, please contact
the City of Carlsbad Planning Division at planning@carlsbadca.gov.
ADDRESS: 945 Chestnut Avenue, Carlsbad, CA 92008
APN: 204-191-2200
LOT SIZE: 0.77 Acres
ZONING: Village Barrio
Village and Barrio Master Plan
Village and Barrio Objective Design Standards
Village and Barrio Objective Design Standards Processing Guide
Village and Barrio Objective Design Standards Checklist
UTILITIES: Carlsbad Municipal Water District, Republic Services, and Encina
Wastewater Authority
NUMBER OF BUILDINGS: Three (3) apartment buildings, and one (1) attached laundry building
Building #1 is approximately 7,417 square feet
Building #2 is approximately 3,648 square feet
Building #3 is approximately 3,116 square feet
The total building square footage is approximately 14,181 square feet
NUMBER OF UNITS: Currently sixteen (16) units:
- Twelve (12) 2-bedroom 1-bathroom units.
- Four (4) 1 bedroom 1-bathroom units.
The property consists of 15 affordable units, occupied by households at
or below 60% and 90% of the San Diego County Area median income
(AMI). One unit is reserved for an on-site manager.
Upon transfer the new owner will be subject to a new 55-year
regulatory agreement recorded against the property to at least restrict
the units to the following affordability levels as identified in California
Government Code Section 37364:
• Not less than 80% of the property area shall be used for the development of housing
• At least 20% of the units will be affordable to very low-income households (50% of Area
Median Income)
• At least 20% of the units will be affordable to low-income households (60% of Area
Median Income)
• The remaining units affordable to at least moderate-income households (90% of Area
Median Income)
PARKING SPACES: Fifteen (15) covered spaces and Eleven (11) open spaces.
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Invitation to Respond
The City of Carlsbad is seeking proposals from qualified developers for the Chestnut Apartments
affordable housing development located at 945 Chestnut Avenue, Carlsbad, CA 92008. The project
site presents an opportunity for the acquisition and rehabilitation and/or re-development of high-
quality, 100% affordable housing project that will contribute to the overall benefit and stability of the
community. The city’s intent is to provide affordable housing for the current low- and moderate-
income residents. Any increase in the number of affordable units in a new project shall provide a
priority for low- and moderate-income households with a local preference to the extent allowed by
law.
Timeline for Submission and Award
Activity Date
Public Notice announcing Request for Proposal May 23, 2024
Final Date for Submissions of Questions Jun. 14, 2024
Responses to Questions Via Addendum on City e-Bidding Site Jun. 21, 2024
Proposal Submission Deadline Jul. 15, 2024
Interviews (if needed) Week of Jul. 29, 2024
City Council Approval Sept. 2024
Close of escrow No later than Dec. 31, 2024
*Dates are tentative and subject to change.
General Terms and Conditions
The successful proposer will be required to sign a Purchase and Sale Agreement with the City of
Carlsbad (template is located in Appendix C). All terms and conditions will be non-negotiable. Failure
to execute the Purchase and Sale Agreement within the required time period shall be just cause for
the rescission of the contract award. If a selected proposer refuses or fails to execute the Purchase
and Sale Agreement, the City of Carlsbad may award the contract to the next qualified proposer.
Scope of Project
The scope of work for the Chestnut Apartments affordable housing development encompasses a
comprehensive approach to addressing the housing needs of low- and moderate-income households
in Carlsbad, CA. The following tasks and objectives will guide the development process:
Capital Needs Assessment (CNA): Prior to commencing rehabilitation or demolition and
development activities, respondents are required to review and analyze the findings of the attached
capital needs assessment (Appendix B). The CNA will provide valuable insights into the existing
condition of the property and inform decision-making regarding the scope and extent of necessary
renovations or redevelopment efforts.
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Rehabilitation and/or New Development: Respondents are required to undertake a thorough
rehabilitation of the existing site to address all identified deficiencies and improve the overall quality,
safety, sustainability, and functionality of the housing units. This comprehensive rehabilitation effort
will entail a professional examination of existing structures, systems, and amenities, followed by
strategic improvements to significantly improve the property's condition, and extend the useful life.
By focusing on issues ranging from structural integrity to energy efficiency, the desired process will
aim to rehabilitate the property and create a living environment that meets the needs of residents
and the community at large.
In addition to rehabilitation, respondents are welcome to explore, and the city is supportive of
options for expanding the density and unit count to further increase the availability of affordable
housing in the community. This may involve repurposing existing structures, optimizing building
layouts, incorporating additional housing units within the development plan, or complete demolition
and rebuild of a new 100% affordable housing project. Any proposed unit expansion must align with
local zoning regulations and affordability requirements outlined in the RFP. Selection of respondent
Developer does not represent approval of a proposed project. Any change to the existing structures
must be reviewed by the city’s Community Development department for any necessary
environmental, planning or building permit approvals.
Relocation Plan: The City’s priority is to provide affordable housing for the current low- and
moderate-income residents. Any proposal that requires current residents to be temporarily or
permanently relocated, must include an appropriate relocation plan. This relocation plan must not
only meet all applicable Federal, State, and local regulations, but must strongly focus on resident
well-being and community consideration.
Compliance with Affordability and Occupancy Requirements: Through provisions of the Surplus
Land Act, the City Council determined the proposed minimum affordability requirements meet
eligibility as “exempt surplus land”. Therefore, regardless of the chosen approach (rehabilitation or
re-development), respondents must adhere to the minimum affordability and occupancy covenants
outlined in the RFP (existing affordability restrictions found in Appendix D will be amended in a new
55-year regulatory agreement to levels identified in California Government Code Section 37364). This
includes maintaining affordable levels, complying with occupancy restrictions, and providing housing
opportunities for low- and moderate-income households as specified in a new 55-year regulatory
agreement to be recorded against the property.
Financing: All proposals should identify all of the financing sources anticipated to be used in the
acquisition and rehabilitation and/or re-development of Subject Property. Respondents should
clearly identify which funding sources are anticipated, secured and which are contingent. The City
of Carlsbad will have to consent to any and all financing secured against the property. Any financial
assistance being requested and associated occupancy or housing cost restrictions must be
described in detail.
Timeline and Milestones: Respondents should provide a detailed timeline and milestones for the
implementation of the proposed rehabilitation or re-development plan. Key milestones may
include relocation plan approval, development or building permit approvals, any necessary
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environmental permit approvals, site preparation, design development, construction
commencement, and project completion. The timeline should be realistic and achievable, taking
into consideration the complexity of the project and any regulatory approval processes that may
be required.
Proposal Content
Proposals shall provide a straightforward, concise delineation of capabilities to satisfy the
requirements of this RFP. Emphasis should be placed on completeness and clarity of content for
the proposal.
Proposals shall adhere to the following format for organization and content. Proposals must be
typed and arranged/divided into the following sequence to facilitate evaluation:
1. Cover Letter
The cover letter shall: 1) confirm that all elements of the RFP have been reviewed and
understood; 2) include a statement of intent to perform the services as outlined; 3)
express the proposer’s willingness to enter into an Agreement under the terms and
conditions prescribed by this RFP and in the Sample Agreement; 4) include a brief
summary of the proposer’s qualifications; and 5) identify a single person and contact
information for possible contact during the RFP review process. The cover letter shall be
limited to two (2) pages.
2. Detailed Proposal
This section should demonstrate in detail an understanding of the scope of work.
Respondents should describe the approach to rehabilitation and/or re-development,
including preliminary design concepts, relocation plans, construction plans, and timeline.
3. Financial Proposal
This section should include total estimated project costs including any developer fees,
funding sources and uses, operating and replacement reserve structure, 30-year cash
flow projection, proposed affordable price levels and any requested financial assistance.
4. Qualifications and Experience
The proposer shall provide details on at least three (3) similar affordable housing
developments they have completed that would demonstrate developer capacity to
successfully complete the scope of work in this proposal.
Evaluation Process and Criteria
In accordance with the Carlsbad Municipal Code, the city will select a proposal based on a “best
value” evaluation. Under the city’s best value evaluation method, the proposal with the lowest
rates may not be selected. The award is based on the proposal that is most advantageous to the
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city, taking into consideration price and the criteria that are set forth here. Responsive proposers
may be asked to attend an interview to help the city in its evaluation. The RFP response will be
evaluated by City of Carlsbad representatives from relevant departments.
The proposals with the top average scores from the written proposal review process might be
asked to participate in a panel interview to evaluate the proposer’s plan of work, qualifications,
experience and fit with the organizational values for the City of Carlsbad.
Proposals will be evaluated based on the following criteria:
1. Project approach and feasibility.
2. Community benefit.
3. Developer experience and capacity.
1. Project Approach and Feasibility (35%)
- Demonstrated developer ability to successfully carry out similar projects,
particularly in the region
- Proposal’s financial feasibility and underwriting
- Leveraged project financing plan that includes a variety of public and private capital
funding sources
- Overall project proforma, including transparency of project underwriting and
feasibility of proforma assumptions
- Cash flow projections demonstrating that the proposed project, once operational,
will meet all debt service or other operational expense obligations for a minimum
period of 20 years
- Project readiness and timeline
2. Community Benefit (35%)
- Ability of proposal to support affordable price levels
- Level of aesthetic improvement to the neighborhood
- Provide accessibility enhancements to residents
- Ability to provide additional affordable units is highly desirable
- Engages existing community and stakeholders affected by relocation
- Ensures neighboring residents and community stakeholders are consulted in the
design, permitting and construction phases of the project
3. Developer Experience and Capacity (30%)
- Demonstrated developer capacity to perform administrative, managerial, and
operational functions, and to oversee the work necessary for successful completion
of the proposed project
- At least one member of the developer team must have completed at least one
affordable housing project within the City of Carlsbad or a comparative locality
- Exhibit prior work resulting in successful development of affordable housing
Successful development may include operation, construction, acquisition,
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acquisition with rehabilitation or any combination of accomplishments that created
or preserved affordable housing
- Development team’s experience and ability to deliver high quality services to the
resident population
Right to Negotiate
The city reserves the right to negotiate with Respondent subsequent to receipt of the Respondent’s
proposal. The city reserves the right to request from Respondent a last best and final proposal,
whereby the city may ask either all proposers or the top proposers to submit their last best and final
proposal. If the city is not satisfied with any of the proposals after asking for last best and final
proposals, the city may in good faith choose any party to negotiate terms for an agreement.
Offer to Exclusively Negotiate & Award Process
Upon completion of the proposal review period, city staff will bring recommendations to the City
Council to select a proposal. Upon approval of the City Council, the city will negotiate a purchase and
sale agreement (template in Appendix C) exclusively with the selected Proposer for a period of up to
30 days. The selected Proposer must provide a non-refundable deposit of $1,000 for the right to
negotiate exclusively with the city.
By submitting a proposal and qualifications to the city, the prospective buyer is also agreeing that the
city retains the right to modify or suspend all aspects of the selection and exclusive negotiating
process, and to waive any defects as to form or content of the offering or any responses that are
received. By submitting a proposal, prospective buyer acknowledges and accepts the terms of the
city’s Purchase and Sale Agreement. Further, city shall have the right to reject any and all proposals.
Please do not sign the agreement at this time. Proposer will also be required to execute other
documents appropriate to this project, including insurance requirements. No proposal shall be
binding upon the city until after the agreement is signed by duly authorized representatives of both
the service provider and the city. After the Purchase and Sale Agreement has been executed, more
detailed property information will be provided to the Purchaser, including tenant rent, and income
information.
Please note that a second phase of city approvals will be necessary after the close of escrow for any
requested city financial assistance and for the development entitlement process.
Public Record
All proposals submitted in response to this RFP become the property of the city and are public records
and, as such, may be subject to public review. Financial capacity statements, however, are provided
on a confidential basis to the extent allowed by law.
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Right to Cancel
The city reserves the right to revise or cancel, for any reason, in part or in its entirety, this RFP,
including but not limited to: selection schedule, submittal date, and submittal requirements. If the
city cancels or revises this RFP, all Respondents will be notified in writing by the city.
Disclaimer
The city reserves the right to: 1) accept or reject any or all proposals received; 2) waive any non-
substantive deficiency or irregularity; 3) negotiate with any qualified proposer; 4) award a contract in
what it believes to be the best interest of the city; 5) cancel this request, in part or its entirety, if it is
deemed to be in the best interest of the city; 6) reject the proposal of any proposer who has
previously failed to perform properly; 7) reject the proposal of any proposer who has failed to
complete a contract within the specified timeframe; and/or 8) reject the proposal of any proposer
that is not in a position to fulfill a resulting contractual obligation. This Request for Proposals (RFP)
does not commit the city to award any contract, pay any pre-award expenses, or pay any costs
incurred in the preparation of a proposal.
Conflict of Interest
No person performing services for the city, in connection with the establishment of any agreements
or any projects resulting from this solicitation, shall have a financial or other personal interest other
than employment or retention by the city, in any contract or subcontract in connection with this
solicitation or any resulting project.
Prohibited Contracts
The city shall not contract with and shall reject any RFP's submitted by the persons or entities
specified below unless the City Council finds that Special Circumstances exist which justify the
approval of such a contract.
• Persons employed by the city or public agencies for which the City Council are the
governing body;
• Profit-making firms or businesses in which city employees described in this solicitation serve
as officers, principals, partners or major shareholders;
• Persons who, within the immediately preceding twelve (12) months, came within the
provisions this solicitation and who (1) were employed by the city in positions of substantial
responsibility in the area of service to be performed by the contract, or (2) participated in
any way in developing the contract or its service specifications;
• Profit-making firms or businesses in which the former city employees described in this
solicitation serve as officers, principals, partners, or major shareholders; and
• A person who currently serves on a city board or commission per CMC 2.15.030. The
submitter certifies that the consultant firm has complied with the above provisions and that
any ensuing contract will be valid.
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Technical Assistance, Clarification, and Addenda
Requests for clarifications regarding this RFP should be emailed to Christian Gutierrez at
Christian.gutierrez@carlsbadca.gov by June 14, 2024, by 5 p.m. Clarifications and substantive
changes in the submittal requirements, if any, will be posted on the city’s e-bidding site no later than
June 21, 2024, by 5 p.m.
Submittal Process
The Request for Proposal is available on the city’s website through PlanetBids only. You must
register as a document holder to receive updates and notices:
https://www.planetbids.com/portal/portal.cfm?CompanyID=27970
City of Carlsbad website: https://www.carlsbadca.gov/departments/finance/contracting-
purchasing/bids
If you have questions regarding PlanetBids, please contact Shea Sainz, Senior Contract
Administrator, at Shea.Sainz@carlsbadca.gov or 442-339-2467.
ELECTRONIC FORMAT RECEIPT AND OPENING OF RFPs: Submittals will be received in electronic
format (eBids) at the City of Carlsbad’s electronic bidding (eBidding) site at City of Carlsbad -
Contracting & Purchasing and are due by the date and time specified on the cover of the
solicitation.
BIDS MUST BE SUBMITTED BY DUE DATE AND TIME. Once the deadline is reached, no further
submissions are accepted.
BIDDERS MUST BE PRE-REGISTERED with the city’s bidding system and possess a system-assigned
Digital ID in order to submit and electronic bid
The city’s bid/electronic bidding (eBidding) system will automatically track information submitted to
the site including IP addresses, browsers being used and the URLs from which information was
submitted. In addition, the city’s bidding system will keep a history of every login instance including
the time of login, and other information about the user's computer configuration such as the
operating system, browser type, version, and more. Because of these security features, Proposers
who disable their browsers’ cookies will not be able to log in and use the city’s bidding system.
Upon entry of their proposal, the system will ensure that all required fields are entered. The system
will not accept a proposal for which any required information is missing. This includes all essential
documentation and supporting materials and forms requested or contained in these solicitation
documents.
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Proposals remained sealed until the due date and time. E-Bids and eProposal’s are transmitted into
the city’s bidding system via hypertext transfer protocol secure (https) mechanism using SSL 128-256-
bit security certificates issued from Verisign/Thawte which encrypts data being transferred from
client to server. Proposals submitted prior to the due date and time are not available for review by
anyone other than the submitter, who will have until the due date and time to change, rescind or
retrieve its proposal should they desire to do so.
Proposals must be submitted by due date and time. Once the deadline is reached, no further
submissions are accepted into the system. Once the due date and time has passed, bidders,
proposers, the general public, and city staff are able to immediately see the results online. City staff
may then begin reviewing the submissions for responsiveness, compliance and other issues.
Proposals may be withdrawn by the proposer prior to, but not after, the time set as due date and
time.
Important note: Submission of the electronic proposal into the system may not be instantaneous.
Due to the speed and capabilities of the user’s internet service provider, bandwidth, computer
hardware and other variables, it may take time for the proposer’s submission to upload and be
received by the city’s eBidding system. It is the proposer’s sole responsibility to ensure their proposals
are received on time by the city’s eBidding system. The City of Carlsbad is not responsible for
proposals that do not arrive by the due date and time.
Electronic submissions carry full force and effect. The proposer, by submitting their electronic
proposal, agrees to and certifies under penalty of perjury under the laws of the State of California,
that the certification, forms and affidavits submitted as part of this proposal are true and correct.
Proposals are public records. Upon receipt by the city, proposals shall become public records subject
to public disclosure. It is the responsibility of the Proposer to clearly identify any confidential,
proprietary, trade secret or otherwise legally privileged information contained within the proposals.
General references to sections of the California Public Records Act will not suffice. If the proposer
does not provide applicable statutory or case law that clearly establishes that the requested
information is exempt from the disclosure requirements of the Public Records Act, the city shall be
free to release the information when required in accordance with the Public Records Act, pursuant
to any other applicable law, or by order of any court or government agency, and the proposer agrees
to hold the city harmless for any such release of this information.
Thank you for your interest, and we look forward to reviewing your proposal.
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