HomeMy WebLinkAboutWORK ORDER - RFP - 7428 ON-CALL FINANCIAL SERVICESWORK ORDER
PURSUANT TO AN AGREEMENT BETWEEN
THE CITY OF FORT COLLINS
AND
Economics and Planning Systems, Inc.
DATED: April 27, 2015
Work Order Number.
Purchase Order Number:
Project Title: Market Analysis of Land Bank parcels
Original Bld/RFP Project Number & Name: 7428 ON -CALL FINANCIAL SERVICES
Commencement Date: April 30, 2015
Completion Date: May 30, 2015
Maximum Fee: (time and reimbursable direct costs):$25,000
Project Description: Market analysis of Land Bank parcels far use as affordable housing
Scope of Services: see attached Proposal
Professional agrees to perform the services
Identified above and on the attached forms in
accordance with the terms and conditions
contained herein and in the Professional Services
Agreement between the parties. in the event of a
conflict between or ambiguity in the terms of the
Professional Services Agreement and this work
order (Including the attached forms) the
Professional Services Agreement shall control.
The attached forms consisting of four (, pages
are hereby accepted and Incorporated herein, by
this reference, and Notice to Proceed is hereby
given.
Professional
Date:Z
City of rt Cdh
By: '
Proj anage
Date:. J VZ9
BY _
Gerry Paul
Director of Purchasing and Risk Management
(over $60,000.00)
Date:
SL� I$ 1
Order #
Vendor/Supplier #
OV # Batch #
Acct
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PROPOSAL
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Project Understanding
Economic & Planning Systems (EPS) understands that as the City of Fort Collins takes steps to
Implement various recommendations that originated or evolved from the Housing Affordability
Policy Study (NAPS), a number of projects will require further study and evaluation. One such
recommendation is to identify a disposition strategy for the City's five land bank properties.
Through the HAPS process, It was determined that an analysis of the development and/or
leverage potentials of the land bank properties was a viable near -term strategy to address
affordable housing needs. Through conversation with staff, it was determined that a study was
needed to assess the market readiness and development opportunities for each site and develop
a strategy for their development and/or disposition. The strategy also needs to address whether
the existing land bank property ordinance restrictions requiring rental development to be priced
at 50 percent AMI or lower and any ownership housing to be priced at 60 percent AMI or lower Is
viable for the effective development of the properties to meet the City's affordable housing goals.
Scope of Work
Task 1: Project Initiation
The City has contracted for appraisals of the five land bank site and done an internal evaluation
and priority ranking and will provide this data to EPS as a starting point, EPS will review the
appraisals and specifically data on the initial purchase price and date, acreage, zoning, and any
impediments to future development, and also compile data on comparable projects for
consideration in assessing future development potential. we will tour the five properties with
staff and Identify key location attributes, surrounding land uses, and other factors affecting the
future development of each site. we will also review with staff the existing goals and objectives
of the land bank program and the applicable policies and restrictions on allowable development
uses and/or disposition of properties, and we will Identify any relevant issues to be addressed in
the study.
Task 2: Market Readiness Analysis
The purpose for this task will be to update affordable housing market conditions and
opportunities relevant to the land bank properties.
Task 2.1: Affordable Housing Needs
EPS will summarize affordable housing gaps and needs from the Housing Affordability Policy
Study (RAPS) prepared by EPS in 2014. The estimate of affordable housing need by product type
and AMI completed for the HAPS study will be updated to provide a benchmark against which the
uses and capacities of the land bank sites can be measured.
Economk & Manning Systems, Inc. 1
I53023wp 4-10-IS.dorr
Fort Collins Land Bank Site Study
April 10, 2015
Task 2.2: Market Area Development Conditions
The second component of this task will focus on housing conditions in the market areas
surrounding the land bank properties. We will do an initial screening of the parcels to verify the
clty's initial determination that two of the properties are not ready for Immediate development or
disposition. The allocated budget Is based on this assumption and that a more detailed
evaluation will be done on three properties.
Relying on data from the appraisals and from staff, we evaluate comparable development
projects Including units by type, price and/or rent levels. EPS will also compile data on current
land values from the property appraisals and a review of county assessor data. We will interview
area developers and brokers to collect additional Information on market conditions and
opportunities for the specific land bank parcels.
Task 2.3: Market Readiness Evaluation
Based on the above market assessment, the development opportunities and potentials of each
site will be summarized. The readiness evaluation will be characterized by the following:
• Types of land uses supportable on the site (residential and/or non-residential).
• Types of residential (i.e., ownership versus rental) and non-residential (i.e., office versus
retail).
• Extent to which affordable housing and level of affordability (i.e., AMI levels) should be
Incorporated into each site.
• Identification of timing for such development (near- versus long-term).
• Whether the site should be developed in phases.
These market potentials, compiled in a matrix format with the information on each site's physical
or other constraints and surrounding land uses, will provide a recommendation regarding the
potential uses that could be developed on each site.
Task 3: Development and Disposition Strategy
The purpose for this task will be to summarize rank the development potentials of the five sites
for affordable housing and/or other uses and to provide a development and disposition for each
property as well as an overall strategy for implementation.
Task 3.1: Disposition Strategy
Complementing the preceding work is a strategy for the development and disposition of each
site, based on an understanding of the site's market readiness. This task will add a layer of
considerations to the assessment concerning whether such development opportunities would
best be executed under a variety of different disposition scenarios, such as:
• Selling the land outright to a developer
• Subdividing the property for partial sale or development for multiple uses
• Partnering for development with an adjacent landowner
• Soliciting proposals from developers through an RFP process
Economk & Planning Systems, Inc. 2 proposal
Fort Collins Land Bank Site Study
April10, 2015
EPS will Identify the pros and cons of pursuing any of these options with each site with the goal
of assisting the City In leveraging Its resources most wisely In addressing affordable housing -
needs. We will also help the city with structuring any recommended RFPs.
Task 3.2: Prioritization and Timing
It Is likely functionally and financially unrealistic for the City to consider the development of all of
the sites in the near term as it is also a goal to "evergreen" the land bank. In this task, we will
Identify the properties best suited to be initially developed or sold to meet the City's affordable
housing objectives. This prioritization will be based on considering multiple factors including
overall market demand, product type and price range, current land values, developer Interest,
and achievement of affordable housing goals. Based on this evaluation, EPS will develop a
schedule for the timing and sequence of future projects.
Task 3.3 Implementation Actions
EPS also will provide further guidance for the City In moving forward. The product of this task
will be to structure a decision protocol for the City to consider as it takes action on any of these
development opportunities. These guidelines will consider factors such as:
• Delineation of responsibilities that the City and a possible partner should have in the joint
development of a site.
• Recommended terms of affordability.
• Strategy to ensure that the site's value is preserved and appropriately leveraged in the
development of the site.
• Guidelines for structuring RFP requirements.
Task 4: Summary Recommendations
EPS will summarize its research, analysis, and recommendations in a Powerpoint with supporting
tables as well as any supporting pieces of Information that may be useful to City staff and
decision makers as it moves forward with Implementation of development on the land bank
properties.
Economic & Planning Systems, Inc. 3 Proposal
Fort Collins Land Bank Site Study
April 10, 2015
Project Budget
EPS proposes to complete the above work program on a time and materials basis up to a
maximum fee of $25,000 including all time and direct expenses billed at cost. The approximate
breakdown of costs by task and staff level is shown In Table 1.
Table 1
Proposed Project Budget
Economic & Planning
Systems
Principal
Vice
Production/
in Charge
President
Research
Total
Billing Rate
$225
$180
$90
Labor Costs
Task 1: Project Initiation
8
8
0
$3.240
Task 2: Market Readiness Analysis
Task 2.1: Affordable Housing Needs
2
8
4
$2,250
Task 2.2: Market Area Development Conditions
4
16
4
$4,140
Task 2.3: Market Readiness Evaluation
8
8
4
$3,600
Task 3: Development and Disposition Strategy
,Task 3.1: Disposition Strategy
4
16
4
$4,140
Task 3.2: Prioritization and Tuning
4
8
4
$2,700
Task 3.3: Implementation Actions
4
4
4
$1.980
Task 4: Summary Recommendations
4
8
4
$2,700
Subtotal
38
76
28
$24,750
as % of Total Staff Hours
27%
54%
201/6
Total Staff Hours
142
Direct Costs
Local Travel
$150
Miscellaneous
$100
Subtotal
$250
Total Project Cost
$25,000
Source: Econorrlc 8 Panning Systens
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Schedule
EPS will present Its initial findings to City staff within approximately 45 days or by the end of
May. Revisions and modifications will be completed in the following two weeks.
Economk & Planning Systems, Inc.
4
Proposal