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Housing Committee

Regular Meeting

Portland, ME · March 4, 2020

AgendaPacket

Agenda

City of Portland JOINT MEETING OF THE HOUSING COMMITTEE AND THE ECONOMIC DEVELOPMENT COMMITTEE: March 4, 2020 at 5:30 p.m. Room 24 Basement Conference Room Portland City Hall 1. Presentation on Limited Equity Cooperative Housing Model for Committee information. a. Limited Equity Cooperative Housing Model Presentation on changes to HUD/CDBG census tract eligibility for Committee 2. information. a. HCD Eligible Area Memo Review, public hearing, and possible vote on a recommendation to the City Council for 3. the 104 Grant Street Affordable Housing Tax Increment Financing Credit Enhancement Agreement request. a. 104 Grant Street AHTIF Request NOTE: Pursuant to 1 M.R.S. 405(6)(F), 5 M.R.S. 13119­A and 30­A M.R.S. 5242(13) the Committee may go into executive session to review proprietary information and provide direction to staff regarding negotiations. Review, public hearing, and provide direction to staff to market the following City­owned 4. properties for sale or lease for housing development: a. Memo: Disposition of City­owned property b. 21 Randall Street c. 165 Lambert Street d. 43 & 91 Douglass Street NOTE: Pursuant to 1 M.R.S.A. 405(6)(C), the Committee may go into executive session to provide direction to staff regarding disposition of the above real estate properties. Executive Session: Pursuant to 1 M.R.S.A. 405(6)(C)(E), the Committee will go into 5. executive session to provide direction to staff regarding: a. Possible disposition of City­owned real estate at 431 Commercial Street; and, b. Possible disposition of City­owned property in Falmouth

Packet

City of Portland JOINT MEETING OF THE HOUSING COMMITTEE AND THE ECONOMIC DEVELOPMENT COMMITTEE: March 4, 2020 at 5:30 p.m. Room 24 Basement Conference Room Portland City Hall 1. Presentation on Limited Equity Cooperative Housing Model for Committee information. a. Limited Equity Cooperative Housing Model Presentation on changes to HUD/CDBG census tract eligibility for Committee 2. information. a. HCD Eligible Area Memo Review, public hearing, and possible vote on a recommendation to the City Council for 3. the 104 Grant Street Affordable Housing Tax Increment Financing Credit Enhancement Agreement request. a. 104 Grant Street AHTIF Request NOTE: Pursuant to 1 M.R.S. 405(6)(F), 5 M.R.S. 13119­A and 30­A M.R.S. 5242(13) the Committee may go into executive session to review proprietary information and provide direction to staff regarding negotiations. Review, public hearing, and provide direction to staff to market the following City­owned 4. properties for sale or lease for housing development: a. Memo: Disposition of City­owned property b. 21 Randall Street c. 165 Lambert Street d. 43 & 91 Douglass Street NOTE: Pursuant to 1 M.R.S.A. 405(6)(C), the Committee may go into executive session to provide direction to staff regarding disposition of the above real estate properties. Executive Session: Pursuant to 1 M.R.S.A. 405(6)(C)(E), the Committee will go into 5. executive session to provide direction to staff regarding: a. Possible disposition of City­owned real estate at 431 Commercial Street; and, b. Possible disposition of City­owned property in Falmouth Housing Cooperatives for Portland Creating Diverse, Accessible, Inclusive Home Ownership Presentation to Economic Development & Housing Committees March 4, 2020 What is a housing cooperative? What is a housing cooperative? Legal entity that owns the real estate, in this case ‘165-167-169 Avenue C Housing Development Fund Corporation’ What is a housing cooperative? Cooperative corporation owns the real estate as opposed to individuals or a landlord. Residents own shares in the corporation. These shareholders hold proprietary leases with the co-op that enables them to occupy their specific unit. Democratic control – shareholders regularly elect a board, each shareholder gets one vote. What is a limited-equity housing co-op? The resale price of shares is limited, keeping the housing affordable for the next generation. In addition to keeping the purchase price lower than market, limited-equity housing co-ops typically have income guidelines to ensure the co-op is serving its intended population. 473 United HDFC 473 United HDFC Property tax abatement is a primary operating subsidy, sometimes able to get reduced rates for water + sewer. Individual Section 8 rental vouchers are made available to families that can’t afford the maintenance. Co-op Benefits •Economic •Social •Personal •Community Co-ops Go Solar Raise-Op Housing Cooperative 15 Homes, 50 Residents, 3 Buildings Raise-Op Housing Cooperative Annual Member Meeting 2019 Raise-Op Housing Cooperative Governance Structure Members Elect board of directors Follow policy set by the board Board of Directors Majority Members 1 Representative per building Community Volunteers House Staff Committees Organizes members Implements policy Develop operating budget Other Professional support Maintenance decisions Building rules Committees Recommendations to board Raise-Op Housing Cooperative Community Organizing Raise-Op Housing Cooperative Community Development Founded by Cooperative Leaders in Western Massachusetts in 1994. We have staff across the Northeast and work in New England & New York. Four Program Areas: ● New England Resident Owned Communities ● Business Ownership Solutions ● Cooperative Food Systems ● Cooperative Business Services Housing Co-ops for Portland Integration with Economic Development Housing Co-op Developments can include: ● Artist Studios or Makers Spaces ● Retail Storefronts ● Grocery Stores ● Office Spaces ● Community Gathering Spaces ● Commercial Kitchens ● Entertainment and Sports Facilities Increase community and economic engagement through neighborhood scale development Housing Co-ops for Portland Ownership Workforce Housing Fill Gaps between affordable rental and market-rate housing Potentials to integrate with a Community Land Trust or Publicly Owned Land with a long term lease Conversion of existing apartment buildings to Co-op Ownership New Construction for Cooperative Housing Amalgamated Co-op, The Bronx, NY Co-op City, The Bronx, NY Cooperative Village, Lower East Side, NY Rexmill Square, Jonesboro, GA Hanover Grove Co-op, Fraser, MI Rose Street Artists Cooperative, Burlington, VT Echo Ridge Homes Co-op, Albuquerque, NM Charter Oaks Resident Owned Community, Arundel, ME Dos Pinos Co-op, Davis, CA Apex Belltown Co-op, Seattle, WA South Bend Mutual, South Bend, IN Wardtown Resident Owned Community, Freeport, ME Sheraden Park Co-op, Pittsburgh, PA Economic Benefits • Co-ops are affordable to households who might otherwise be priced out of the market. • Re-sale restrictions preserve affordability for future generations. • Lower monthly costs than comparative rentals. • Higher quality than comparative rentals. Economic Benefits • Enhanced “bankability,” collectively and individually. • Shareholders may qualify for tax deductions for mortgage interest and property taxes. • Equity can be inherited. • Foreclosure rates are much lower than for single-family homeowners in comparable income groups. Social Benefits • Participation in civic and community affairs • Pride in, and sense of belonging to, a community • Lower rates of vandalism and reported crime • More likely to vote Personal Benefits • High levels of satisfaction with housing • Sense of achievement and competence • Increased income, and disposable income • Increased net worth • Increase sense of independence • Opportunities for participation and leadership • Gain skills that lead to jobs, job improvement, or education Community Benefits • Co-ops are bulwark against gentrification • Co-ops promote longer tenure in multi-family buildings • Co-ops are an incubator of neighborhood leaders • Co-op residents tend to be more active in community affairs Contact Information Andy Reicher, UHAB: reicher@uhab.org, www.uhab.coop Craig Saddlemire, Raise Op Housing Co-op: raiseop207@gmail.com, www.raiseop.com Jonah Fertig-Burd, Cooperative Development Institute jfertig-burd@cdi.coop, www.cdi.coop Brian Eng, Portland Property Owner and UHAB Board Member CITY OF PORTLAND Planning & Urban Development Department Housing and Community Development Division MEMORANDUM To: Councilor Jill Duson, Chair of the Housing Committee Members of the Housing Committee Councilor Justin Costa, Chair of the Economic Development Committee Members of the Economic Development Committee From: Mary Davis, Housing and Community Development Division Director Amanda Methot, HCD Compliance Officer Date: February 26, 2020 RE: HCD Eligible Areas Map As a grant recipient under the HUD’s CDBG Entitlement program, the city must ensure that any use of funds for a CDBG-assisted activity is eligible by meeting one or more of the national objectives required under the criteria in 24 CFR §570.208. HUD released updated summary data in early 2019 (based on the American Community Survey 2011-2015 5-year estimates). The data was incorporated into the City’s 2020-2021 CDBG Application which was released in the fall of 2019. When a CDBG project is fulfilling the national objective on an area-wide basis, the population of that area must be at least 51% low-moderate income (LMI). Low-moderate income is defined as a household whose income is at or below 80% of the area median income. HUD updates and distributes this data every 5 years and it is used by Housing and Community Development Division staff to determine the service areas that would be eligible for CDBG activity funding. The data was last updated by HUD in 2014, utilizing the American Community Survey 2006-2010 5-year estimates. Newly Eligible Block Groups There are 10 blocks that have become eligible between 2014 and 2019. Census tracts 17, 18, and 20.1 had the largest difference in LMI percentage between 2014 and 2019. The change is indicated in the table that follows. 389 Congress Street Room 312 • Portland, Maine 04101 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov 1 Tract/Block Group 2014 LMI % 2019 LMI % 15/2 41.10% 55.31% 17/2 39.68% 54.48% 17/3 29.92% 58.77% 18/3 28.81% 60.85% 19/2 32.03% 53.33% 19/4 47.41% 58.39% 20.1/2 26.47% 53.47% 23/2 48.33% 53.03% 23/3 48.17% 60.67% 24/3 (islands) 4% 70.59% Previously Eligible Block Groups There are two block groups that were eligible in 2014 that have become ineligible in 2019 due to their LMI percentage dropping below the 51% threshold. These two changes occurred in the East End/ Munjoy Hill Neighborhood and the Oakdale Neighborhood. The East End has seen significant development since 2014, with an influx of luxury condos in the ineligible block group. The change is indicated in the table below: Tract/Block Group 2014 LMI % 2019 LMI % 1/3 77.62% 49.41% 15/3 63.59% 49.49% 389 Congress Street Room 312 • Portland, Maine 04101 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov 2 3 CITY OF PORTLAND Planning & Urban Development Department Housing and Community Development Division TO: Councilor Duson, Chair Members of the Housing Committee Councilor Costa, Chair Members of the Economic Development Committee FROM: Mary Davis, Division Director, Housing & Community Development DATE: February 28, 2020 SUBJECT: Watson Renewal Grant LLC – 104 Grant Street Affordable Housing Tax Increment Financing Request As you may recall, under the terms of a Purchase and Sale Agreement between the City of Portland and Tom Watson & Co., LLC, related to the city sale of 82 Hanover Street, the buyer’s post-closing obligations required construction of at least 23 units at property located at 104 Grant Street. Watson Renewal Grant LLC (WRG) is a partnership formed to meet that obligation. WRG is proposing to construct 23 condominium units on the 104 Grant Street site and is requesting financial assistance from the City in the form of an Affordable Housing Tax Increment Financing District and Credit Enhancement Agreement to assist with the cost of construction of the project. If approved, the AHTIF will be provided through a Credit Enhancement Agreement at 75% of the increased taxable value, currently estimated at a 30-year annual average of $93,000. The development district will include 23 units of workforce housing. The project will include 1 two-bedroom and 22 one-bedroom condominiums. Fifty-two percent (52%) or a total of twelve of the twenty-three units, will be available for sale as workforce housing affordable to households at 120% of the area median income. The units will have affordability restrictions through the Affordable Housing TIF program, MaineHousing’s Subdivision Grant Program and the City’s Inclusionary Zoning Ordinance. The units will range in size from 498 to 760 square feet. The sale price of the units will range from $200,000 to $355,000. Twelve units will be priced below $250,000 with eight of those units priced at $200,000. When completed, the project’s new assessed value is estimated at $4.47 million, which will yield $4.05 million in increased annual assessed property value. The property currently has a $419,000 net taxable value. 389 Congress Street Room 312 • Portland, Maine 04101 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov 1 Total development costs are estimated at $6.5 million. At full build out, the development district is projected to pay an annual average of $124,000 in new taxes of which $93,000 will be returned to the developer and $31,000 will be non-captured general fund revenue. In addition, the City will continue to receive general fund revenues of $13,472 (30 year annual average) on the original assessed value of the property. Captured Revenue to Developer (assumes 2% Captured Revenue Returned Non -Captured increase/year to mill rate) to City (assumes 2% General Fund (Tax Dollars returned to increase/year to mill rate) Revenue (Tax the Developer's District (Tax Dollars returned to the Dollars in General City OAV General Account) City's District Account) Fund) Fund Revenues 30 Year TIF Total $2,790,013 $0 $930,004 $404,148 30 Year Average $93,000 $0 $31,000 $13,472 Tax Sheltering Benefits As a result of the tax sheltering benefits of this TIF District, the City will see an overall savings estimated at an annual amount of $25,542, or $766,274 over the life of the district. 1. Sheltered Valuation 2. Avoided Loss of 3. Avoided Loss of 4. Avoided Increase in 5. Total Avoided (same as Captured State Aid for State Municipal County Tax Impacts (2+3+4) Valuation Education Revenue Sharing 30 Year TIF Total $85,235,220 $655,337 $63,875 $47,062 $766,274 30 Year Average $2,841,174 $21,845 $2,129 $1,569 $25,542 Staff Analysis and Recommendation The Housing and Community Development Division works with an independent consultant who performs third party underwriting reviews of all requests for City funding (local and federal resources), including Affordable Housing Tax Increment Financing requests. A third party financial analysis is not available at this time but will be available prior to council approval. Tax increment financing requests are reviewed by the Economic Development Committee with the Housing Committee weighing in on affordable housing TIF requests. This request is brought forward now, prior to the completion of the third party financial analysis, in order to make the best use of the opportunity created by this joint meeting. Public Benefits In reviewing this TIF request, staff notes the public benefit associated with the TIF District includes 23 units of workforce homeownership units, with 12 units affordable to households at or below 120% of the area median income. Additionally, the TIF will create tax sheltering benefits estimated at an average $25,542 annually. 389 Congress Street Room 312 • Portland, Maine 04101 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov 2 Staff recommendation Staff is requesting the Housing Committee and the Economic Development Committee approve and recommend to the City Council support of this Affordable Housing TIF proposal which meets the City’s policy goal of increasing access to safe, affordable and accessible housing for working families. The recommendation will be conditioned upon receipt of a satisfactory third-party financial analysis to be included in the council agenda packet. ATTACHMENTS Project Description TIF Model Spreadsheet TIF District Map Project Pro Forma 389 Congress Street Room 312 • Portland, Maine 04101 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov 3 Project Description 104 Grant Street Watson Renewal Grant LLC EXECUTIVE SUMMARY Watson Renewal Grant LLC (“WRG”), a partnership consisting of Tom Watson and Renewal Housing Associates LLC (collectively, the “Sponsors”), proposes to redevelop 104 Grant Street (the “Property”) into 23-units of homeownership workforce housing (the “Project”). The project will consist of 1 two-bedroom and 22 one-bedroom condominiums ranging in size from 500 SF to 750 SF. Eight (8) of the 23 units will be regulated under the City of Portland’s Inclusionary Zoning ordinance and the State of Maine’s Affordable Housing Tax Increment Financing Statute 30-A MRSA Sec 5247. An additional four (4) units will be regulated under the Maine State Housing Authority’s Subdivision Grant Program. The remaining units will be sold without deed restrictions. The prices for the ‘conventional’ units are projected to be below the average sales price for condominium units sold on the Portland peninsula. The Sponsors’ goals for the Project are two-fold; one, to provide high quality homeownership opportunities to first-time homebuyers and middle-income Portland residents. Second, to strengthen the Parkside neighborhood by increasing the number of owner-occupied housing units. The Project’s total development costs are projected to be $6,495,000. The Sponsors will finance the acquisition and development of the Project with a combination of conventional construction financing and public subsidy. Specifically, WRG will raise $5,175,000 in private funds through a traditional construction loan, private capital and a deferment of Sponsor sale proceeds and fees. WRG will also generate $1,320,000 in funding through the Maine’s Affordable Housing Tax Increment Financing program and Maine Housing’s Subdivision Grant Program. Specifically, under this application, the Sponsors are seeking to establish an AHTIF District in order to utilize 75% of the incremental tax revenue generated by the new condominium units to repay principal and interest on a $1,050,000 loan (the “AHTIF Loan”), the proceeds of which will be used to construct the building. A detailed schedule of the Project’s sources and uses is provided below. Attached as Exhibit A is an AHTIF Schedule. SOURCES Construction Loan 4,250,000 AHTIF Loan 1,050,000 Additional Sub Debt 270,000 Seller Note 215,000 Deferred Developer Fee Note 215,000 Sponsor Equity 495,000 Total 6,495,000 USES Acquisition 405,000 Hard Costs 4,850,000 Soft Costs 907,000 Financing Costs 333,000 Total 6,495,000 1 December 2019 4 104 Grant Street Watson Renewal Grant LLC PUBLIC BENEFITS The Project will achieve a number of public benefits; • Redevelop a non-conforming commercial building located in a residential neighborhood The Property currently consists of a vacant, single-story building that is non-conforming for both use and space (setbacks) for properties in the R6 Zone. The proposed building will meet current building codes, zoning and site plan requirements for new construction multifamily properties. • Address an area of significant need within the Portland housing market; homeownership opportunities that are affordable to small, middle income households. Consider the following regarding the Portland market; o More than 56% of all households are Non-Family and more than 40% consist of a single individual o Middle-income (100% to 120% AMI) 1 and 2-person households earn between $65,000 and $90,000 o Middle-income households can generally afford homes priced between $200,000 and $300,000 o The average sales price of a condo on the Portland peninsula is $440,000 (median = $358,000) The Project will create 23 units of housing with estimated prices ranging from $190,000 to $355,000, with a projected average sales price below $265,000. • Preserve long-term affordability through deed restrictions The Project will create i) 8 units that are regulated under Portland’s IZ ordinance and deed restricted to remain affordable to households at 110% AMI for a period of 30 years and ii) 4 additional units regulated under Maine Housing’s Subdivision Grant Program and deed restricted to remain affordable to households at 120% AMI for a period of 10 years. • Strengthen the Parkside Neighborhood The Parkside Neighborhood has traditionally had one of the highest concentrations of non owner- occupied properties in Portland. In addition, relative to other intown neighborhoods, Parkside has experienced a limited amount of investment to create new housing units – particularly serving the homeownership market. The Project will in result in a direct investment in Parkside of more than $4.8M and create 23 new homeownership opportunities in the neighborhood. • Generate a high level of property tax revenue for the City of Portland’s General Fund relative to other redevelopment scenarios Currently, 104 Grant generates less than $10,000 in annual property taxes. If the Property is redeveloped as market rate rental housing, it will produce approximately $45,000 in taxes per year. Under the Sponsors’ homeownership model, the Project will generate enough tax revenue to finance a $1,050,000 AHTIF loan to pay for construction costs – and, still contribute $35,000 in annual tax revenue to Portland’s General Fund. Therefore, the net cost to Portland taxpayers to support a workforce homeownership development versus a market rate rental project is approximately $10,000 per year. 2 December 2019 5 104 Grant Street Watson Renewal Grant LLC SPONSOR INFORMATION Tom Watson is the current owner of 104 Grant Street. In 1993, Tom started Port Property Management, a residential rental apartment management company based in Portland. Today, the company operates 65 rental properties, representing more than 1,300 apartments in the greater Portland market – with a high concentration of units located on Portland peninsula. The company prides itself on helping to stabilize and revitalize Portland’s downtown residential neighborhoods through professional, hands-on management and continuous investment in its real estate portfolio. In addition to acquiring and upgrading existing rental properties, Tom has been involved in two major downtown housing development projects in Portland; i) The Hiawatha, 139 units of rental housing developed at Longfellow Square and ii) 117 Lofts, an historic restoration and conversion of the former Schlotterbeck & Foss office building into 56 units of rental housing serving the Bayside neighborhood. Renewal Housing Associates LLC (“Renewal”) is a multifamily housing development company based in Portland, Maine. Renewal’s primary focus is renovating legacy affordable housing properties that require capital improvements and long-term use restrictions. The company also develops for-sale, infill housing projects targeting middle income and first-time homebuyers. Renewal’s principals are specialist in obtaining federal, state and local resources to create and preserve affordable and workforce housing. Since 2001, Renewal has invested more than $275M to preserve and create more than 2,800 units of affordable housing in seven states and the District of Columbia. In Portland, Renewal’s principals have completed two innovative urban infill projects—West Port Lofts and Onejoy—similar in scope and mission to the project proposed for 104 Grant Street. In each of these previous developments, blighted and non-conforming West End properties were acquired and redeveloped to create for-sale workforce housing serving middle-income households and first-time homebuyers. At Onejoy, Renewal successfully developed and sold the first for-sale Workforce Housing unit regulated under Portland’s Inclusionary Zoning Ordinance. Renewal is majority-owned by Leon N. Weiner & Associates Inc. (“LNWA”), a Delaware-based, fully integrated multifamily housing and real estate development company. Founded in 1949, LNWA and its affiliates have developed over 15,000 apartments and homes. Today, the company operates more than 6,900 housing units located in ten states and the District of Columbia. The company has extensive experience developing affordable, market rate and mixed-income housing serving both the for-sale and rental markets. LNWA is mission-driven housing company. Each housing development, in which the company is involved has an affordability component. The company founder and namesake, Leon N. Weiner, was a tireless advocate for and national leader in the development of housing to serve people of all income levels. During Leon’s prodigious career, he was named Housing Person of the Year by the National Housing Conference and the Fair Housing Person of the Year by the United State Department of Housing and Urban Development. Leon served on President Lyndon Johnson’s Kaiser Commission on Urban Housing, which led to the cornerstone Housing Act of 1968. He was a Director for the Federal Home Loan Bank and President of the National Association of Home Builders. In 1979, Leon was inducted in the National Association of Home Builders’ Housing Hall of Fame, where he was recognized as “…the conscience of the housing industry in America….” 3 December 2019 6 104 Grant Street Watson Renewal Grant LLC Our Approach: Renewal’s principals recognize every project has a unique set of characteristics and stakeholders. Ultimately, our job is to identify the stakeholders and their goals—and then marry these goals with the condition and circumstance surrounding a specific site or development. We view each project as a partnership—between owners, developers, municipal officials, neighborhood groups, investors, contractors and, ultimately, our residents. Our approach distinguishes us from other developers and owners; we value the opportunity to work on a diverse team with disparate goals, and we are comfortable serving in different capacities, ranging from traditional developer-owner to joint-venture partner. Most importantly, as part of a company that has been developing real estate since 1949, our primary focus is to find opportunities to work with people and organizations that are committed to the things that we believe define successful real estate development projects; a spirt of collaboration, a desire for shared success and a view toward long-term relationships. ORGANIZATIONAL STRUCTURE The Property is currently owned by 104 Grant Street LLC, which consists of two members, Tom Watson and Jack Watson. The Sponsors have formed Watson Renewal Grant LLC to acquire, finance and redevelop the Property. The members of WRG are Houghton Lane LLC and Renewal Housing LLC. Tom Watson and Jack Watson are the sole members of Houghton Lane. The members of Renewal Housing are Leon N. Weiner & Associates, David Lakari & Associates and West Port Development LLC. Houghton Lane is the Managing Member of WRG and Tom Watson serves as its Manager. Below is an organizational chart. Watson Renewal Grant LLC Houghton Lane LLC Renewal Housing Associates LLC Managing Member Member Leon N. Weiner & Associates Inc. Tom Watson David Lakari & Associates LLC Jack Watson Sole Member, David Lakari West Port Development LLC Sole Member: Todd M. Alexander 4 December 2019 7 104 Grant Street Watson Renewal Grant LLC THE PORTLAND PENINSULA CONDOMINIUM MARKET: The case to support the development of affordable homeownership opportunities on the Portland peninsula: What can the average Portland household afford? 1-Person Household 2-Person Household 100% AMI 120% AMI 100% AMI 120% AMI Annual Income $65,100 $78,120 $74,400 $89,280 Monthly Income for Housing Costs (30%) $1,628 $1,953 $1,860 $2,232 Target Sales Price $210,000 $260,000 $240,000 $295,000 Down Payment 1 $14,700 $18,200 $16,800 $20,650 Mortgage Amount $195,300 $241,800 $223,200 $274,350 Monthly Mortgage Payment 2 $999 $1,237 $1,142 $1,404 Private Mortgage Insurance 3 $81 $101 $93 $114 Property Taxes $306 $379 $350 $430 Property Insurance $70 $80 $75 $85 Utilities 4 $161 $161 $205 $205 Total Monthly Housing Costs 5 $1,617 $1,957 $1,864 $2,237 1. Average down payment of first-time homebuyer is 7%. 2. Assumes 4.5% Interest Rate on mortgage loan 3. assumes .5% of loan amount annually 4. source Maine Housing Utility Allowance 5. Does not include homeowners association fees (condo) or maintenance costs (single-family) How many units under $300,000 are sold each year…and how many are available right now? Last 12 Months Currently Available (Nov '19) Units Sold Average Price Total Units Months Supply < $200,000 11 2 2.18 $200,000 to $300,000 84 8 1.14 > $300,000 177 109 7.39 All Condominiums 272 $440,000 125 5.34 What percent of their income does a typical middle-income Portland household need to spend on housing costs to purchase a unit at the current average sales price? 1-Person Household 2-Person Household 100% AMI 120% AMI 100% AMI 120% AMI Annual Income $65,100 $78,120 $74,400 $89,280 Monthly Income for Housing Costs (30%) $1,628 $1,953 $1,860 $2,232 Sales Price $440,000 $440,000 $440,000 $440,000 Total Monthly Housing Costs $3,182 $3,192 $3,231 $3,241 Percent of Income Spent on Housing Costs 58% 48% 51% 43% 5 December 2019 8 104 Grant Street Watson Renewal Grant LLC The following information is organized and formatted to correspond with the Maine State Housing Authority’s Application for Affordable Housing Tax Increment Financing, Appendix A Checklist for Approval of District and Development Program. LOCATION The proposed location for the Affordable Housing Tax Increment Financing District is 104 Grant Street, Portland Maine 04102 (the “AHTIF District” or “District”). CBL: 48-C-8, City of Portland Tax Map E8NE. DISTRICT DESCRIPTION: a. Physical Description: The District, 104 Grant Street, is located within the Parkside Neighborhood on the Portland peninsula. The District contains a single tax parcel, which consists of 14,261 SF, or .33 acres. The property currently contains a vacant single-story building that previously housed administrative offices and a maintenance facility for a real estate management company. b. Municipal Map Showing District Boundaries: A municipal map identifying the boundaries of the District is attached as Exhibit B. c. Tax Map Showing District Boundaries: A tax map identifying the District boundaries is attached as Exhibit C. DOCUMENT AT LEASE 25% OF THE DISTRICT ACREAGE IS SUITABLE FOR RESIDENTIAL USE, BLIGHTED, OR IN NEED OF REHABILITATION/REDEVELOPMENT: a. Percent Acreage Suitable for Residential Use: The District is 14,261 SF, or .33 acres. 100% of the District is suitable for residential use. b. Percent of Acreage that is Blighted: None of the acreage in the District is currently blighted. c. Percent of Acreage in need of Rehabilitation/Redevelopment: 100% of the District is in need of redevelopment. d. Physical Description to Support Above: The District is highly suitable for multifamily residential redevelopment. As described below, the District is located in a R-6 Residential Zone, which is intended for high density multifamily uses. The District is completely surrounded by residential uses that are primarily high-density, multifamily properties in similar scale and form as the Sponsor’s proposed development. The District is also in close proximity to employment centers (downtown Portland), health care centers (Maine Med and Mercy Hospital), services (downtown, Congress Street corridor and Bayside), civic institutions (City Hall, Post Office), public parks (Deering Oaks, Portland Trails System) and public transportation nodes. In further support for the need of redevelopment, the existing building located in the District is vacant. It is a legal, non-conforming non-residential use within a residential zone. 6 December 2019 9 104 Grant Street Watson Renewal Grant LLC e. Zoning Designation for District: The District is located in the R-6 Residential Zone. As stated in the Portland Land Use Ordinance, the purpose of the R-6 Zone is: “…(a) to set aside areas on the peninsula for housing characterized primarily by multifamily dwellings at a high density providing a wide range of housing for differing types of households; and to conserve the existing housing stock and residential character of neighborhoods by controlling the scale and external impacts of professional offices and other nonresidential uses, (b) in cases of qualifying small, vacant, underutilized lots located in the urban residential and business zone, to encourage new housing development consistent with the compact lot development pattern typically found on the peninsula….” The R-6 Zone also allows certain density bonuses and other incentives for developments that provide affordable and workforce housing units. f. Allowed Uses in the Zone: The R-6 Residential Zone primarily is intended for high-density, single- family and multifamily residential uses. Other permitted uses in the R-6 Zone include; 1. Lodging house; 2. Cemeteries; 3. Parks, and other active and passive noncommercial recreation spaces; 4. Accessory uses customarily incidental and subordinate to the location, function, and operation of principal uses, 5. Home occupations, 6. Municipal uses, 7. Special needs independent living units, 8. Hostels DISTRICT ACERAGE DIVIDED BY MUNICIPAL ACREAGE IS NOT MORE THAN 2% • Total District Acreage: .33 • Total Municipal Acreage: 12,386 • District Acreage as a Percent of Total Acreage: .0027% TOTAL ACREASE OF ALL EXISTING AND PROPOSED DEVELOPMENT DISTRICTS IN MUNICIPALITY DIVIDED BY TOTAL MUNICIPAL ACREAGE IS NOT MORE THAN 5%. (City of Portland to Complete) ORIGINAL ASSESS VALUE (OAV) OF DISTRICT (City of Portland to Complete) OAV OF ALL EXISTING AND PROPOSED AFFORDABLE HOUSING DEVELPOMENT DISTRICTS IN THE MUNICIPALITY DIVIDED BY AGGREGATE TAXABLE PROPERTY VALUE AS OF APRIL 1 ST BEFORE MAINEHOUSING APPROVAL IS NOT MORE THAN 5%. (City of Portland to Complete) DEVELPOMENT PROGRAM STATE AND END DATES (City of Portland to Complete) 7 December 2019 10 104 Grant Street Watson Renewal Grant LLC THE DEVELOPMENT PROGRAM MEETS AN IDENTIFIED HOUSING NEED IN MUNICIPALITY: a. Description of Need: Despite healthy residential development activity in recent years, Portland’s housing market has remained relatively unaffordable. The problem remains particularly acute among homeownership opportunities on the Portland peninsula. As of December, 2019, the average sales price for a condominium (traditionally one of the most affordable forms of homeownership within a market) on the Portland peninsula was $440,000. The median sales price was $358,000. Condominium prices in Portland’s urban residential neighborhoods far exceed what an average household in Cumberland County can afford. Using the City of Portland’s Inclusionary Zoning Maximum Sales Price formula, one to three person households (Portland’s average household size is 2.08) at the 80% to 120% AMI levels, can generally afford homes in the $150,000 to $350,000 range. Portland’s lack of affordable homeownership opportunities significantly impedes the City’s goals for future growth. According to the Portland’s 2017 Comprehensive Plan, the City’s 10-year population growth target is approximately 72,000 people (by 2027), up from 66,681 people today. To achieve this goal, the City needs to create approximately 2,557 new housing units. Given the disparity between average condominium prices on the Portland peninsula and median income levels, traditional first-time homebuyers and moderate-income households are priced out of Portland and must seek other markets in which to purchase a home. Portland has identified Parkside as a neighborhood that benefits from moderate to high residential density—and, therefore, could accommodate some of the demand for new housing units. From the City’s 2017 Comprehensive Plan, A Livable City; “…Portland has a number of neighborhoods that offer traditional urban densities — Munjoy Hill, the West End, Parkside, Deering Center, for example — and these neighborhoods are largely successful. Residents can access stores, schools, dining, and entertainment within walking distance of their homes. By foot or bike, they can easily reach transit, trails, and recreational opportunities. These characteristics are largely possible because of their density. Well-designed density is integral to healthy, walkable city neighborhoods….” b. Description of How Development Program Meets Need: The Project will address the for-sale affordable housing need in Portland by creating eight (8) homeownership units that will be deed restricted to remain affordable for households at or below 120% AMI for a period of 30 years. In addition, the Project will create 11 units that are not deed restricted, but will be moderately priced as compared to the average condominium sales price on the Portland peninsula. c. Information on Housing Units Created: 1. New Rental Units Created: None 2. Existing Rental Units Rehabilitated: None 8 December 2019 11 104 Grant Street Watson Renewal Grant LLC 3. New Single-Family Homes, Including Condominiums, Constructed: 23 4. Existing Single-Family Homes, Including Condominiums, Rehabilitated: None DISTRICT MUST BE PRIMARILY A RESIDENTIAL DEVELOPMENT a. Description of Residential and Non-Residential Uses in District and Acreage of Each: 100% of the District will be redeveloped for residential uses. The Sponsors propose to construct a 4-story building, consisting of 23 units of housing (condominiums) and associated common areas serving the building (stairwells, hallways, elevator, HVAC/mechanical room, etc…). The District will also include a private parking lot dedicated for the future unit owners of the Project. b. Description of Accessory Uses Relating to Residential Uses: The only accessory uses within the District will be the condominium association common areas, such as the parking lot, bike storage, main entrance/lobby, HVAC/mechanical rooms and trash/recycling facilities. AT LEASE 33% OF THE HOUSING UNITS IN THE DISTRICT MUST BE AFFORDABLE HOUSING a. Number of new affordable rental units in District: 0 b. Number of new affordable single-family, owner-occupied, including condominiums, in District: 8 units – or 33% of the housing units in the development – will be deed restricted under the City of Portland’s Inclusionary Zoning Ordinance. An additional 4 units will be deed restricted under Maine Housing’s Subdivision Grant Program. c. Total number of new housing units in District: 23 d. Affordable housing units as a percent of total units: 34.78% (just AHTIF); 52.17% including MH Subdivision Grant units. MECHANISM TO ENSURE ON-GOING AFFORDABILITY (City of Portland to Complete) OPERATION OF HOUSING AND FACILITIES IN DISTRICT a. Description of housing and facilities in the District will be operated after completion: The housing units developed at 104 Grant Street will be administered by a condominium association. The association will be governed by a board consisting of unit owners. The rules and regulations for the association will be set forth in the association declaration and bylaws. The association declaration and bylaws are first established and created by the project Sponsors, who will serve as the declarant for the association. The declarant will oversee administration of the association through the development period, until condominium units are sold and administration is transferred to the association board. Under Maine statute, the administration and governance of the association transfers from the declarant to a board consisting of unit owners upon sale of 75% of the condominium units. 9 December 2019 12 104 Grant Street Watson Renewal Grant LLC b. Entity responsible for operations: The unit owners, through an elected board, are responsible for administering the operations of the condominium association. Typically, associations will hire a third-party management company for administrative and maintenance support. The declarant will hire Gebhardt Property Management to oversee the day-to-day maintenance and operations of the building and association. GPM is based in Portland’s West End neighborhood, in close proximity to the Project. The company has extensive experience managing condominium association properties located on the Portland peninsula. The Sponsors have worked with GPM on two similar condominium developments in the West End. c. Source of operating funds: The operations of the association will be funded by monthly condominium association dues paid by the unit owners. Dues will be set annually once the association adopts an operating budget for the year. The first annual budget and related monthly dues will be set by the declarant. The monthly dues are estimated to be $250 per unit per month. A final budget and monthly dues will be set prior to commencement of construction, when the final building program design has received Site Plan and Subdivision approval. SPECIFIC PLANNED USES OF TAX INCREMENT REVENUES FROM THE DISTRICT: a. Description of each improvement, facility, program, or other activity included in the development program that may or will be funded in whole or in part with tax increment revenues: The tax increment revenues will be used to repay principal and interest on a loan (the “AHTIF Loan”). The proceeds of the AHTIF Loan will be used to pay the direct construction costs associated with building the 23-unit condominium. b. Improvements within the District: The residential building constructed within the District is projected to cost $4,850,000. The size of the AHTIF Loan is projected to be $1,050,000. One hundred percent of the proceeds of the AHTIF Loan will be used during the construction period to pay costs that are part of the Sponsor’s construction contract. c. Improvement outside the district: No improvements will be made outside of the District. d. Amount of tax increment revenues inside and outside: The AHTIF Loan will be repaid using the Project’s share of tax increment revenue generated from the new condominium units constructed within the District. e. Amount and source of other funding the development program: See schedule on following page. 10 December 2019 13 104 Grant Street Watson Renewal Grant LLC SOURCES % of Total Construction Loan 4,250,000 65.43% AHTIF Loan 1,050,000 16.17% Additional Sub Debt 270,000 4.16% Seller Note 215,000 3.31% Deferred Developer Fee Note 215,000 3.31% Sponsor Equity 495,000 7.62% Total 6,495,000 100.00% USES % of Total Acquisition 405,000 6.24% Hard Costs 4,850,000 74.67% Soft Costs 907,000 13.96% Financing Costs 333,000 5.13% Total 6,495,000 100.00% f. Timing of each planned improvement: The Project will begin the site plan and subdivision application process in Q4 2019. Pending final regulatory approvals, the Project will close on its construction financing in Q2, 2020, with construction completion anticipated for Q3, 2021. MUNICIPALITY MAY USE TAX INCREMENT REVENUES FROM A DISTRICT TO ESTABLISH A PERMANENT HOUSING DEVELOPMENT REVOLVING LOAN FUND OR INVESTMENT FUND: (Not Applicable) A FINANCIAL PLAN FOR EACH YEAR THE DEVELOPMENT PROGRAM WILL BE IN EFFECT. (City of Portland to Complete) RELOCATION PLAN FOR PERSONS TEMPORARILY OR PERMANENTLY DISPLACED BY DEVELOPMENT ACTIVITIES The District currently consists of a vacant administrative office and maintenance facility. As such, there is no resident relocation required as part of the project. DESCRIPTION OF ENVIRONMENTAL CONTROLS TO BE APPLIED The Sponsors have engaged MAI Environmental, a South Portland-based environmental engineering firm for environmental consulting services during the development period. MAI Environmental has completed Phase II testing for the Property. The findings and associated soil management plans have been incorporated in the development program and budget. 11 December 2019 14 104 Grant Street Watson Renewal Grant LLC DEVELOPMENT PROGRAM CONSISTENT WITH COMPREHENSIVE PLANNING (City of Portland to Complete) DISTRICT NOT IN CONFLICT WITH MUNICIPAL CHARTER (City of Portland to Complete) FOR MUNICIPAL DEBT FINANCING ONLY: (Not Applicable) END, MAINE STATE HOUSING AUTHORITY AHTIF APPLICATION CHECKLIST 12 December 2019 15 TIF Model Spreadshet RENEWAL HOUSING ASSOCIATES LLC January 21st, 2020 Mary P. Davis, Division Director, Housing & Community Development Division Planning & Urban Development Department, City of Portland 389 Congress Street Room 312 Portland ME 04101 RE: AHTIF APPLICATION, 104 GRANT STREET (“The Goodwin”) Dear Mary: Thank you for the meeting to discuss the AHTIF application for 104 Grant Street. As discussed, I am providing this letter to update and clarify certain aspects of the project. • Unit Mix: The project now consists of 23 one-bedroom units ranging in size from 488 SF to 768 SF. The majority of units are between 610 and 620 SF. • Affordable Housing - Number of Units and Affordability Restrictions: Under the financing plan proposed in our application, the affordability requirements at the project are as follows; • City of Portland “Workforce Units”: o Two (2) Workforce Units with a 30-year deed restriction (Required 10% Units) o Six (6) Workforce Units with a 10-year deed restriction (Additional Workforce Units to meet state statute for AHTIF homeownership requirements) Units will be regulated subject to the City of Portland’s Workforce Housing Agreement Declaration of Covenants, Conditions & Restrictions • Maine Housing “Affordable Homeownership Units”: o Four (4) Affordable Units with a 9-year deed restriction Units will be regulated subject to Maine Housing’s Declaration of Covenants & Restrictions Enclosed with this letter is a chart to fully detail the affordability restrictions on the project. Also, for your reference, I have enclosed information on Maine Housing’s Subdivision Grant Program, as well as the state AHTIF Statute to document the 10-year deed restriction for homeownership projects. Respectfully, Todd M. Alexander 2 Union Street, 5th Floor | Portland, Maine 04101 | 207 347-3018 16 City of Portland - Affordable Housing (AH) TIF Model 104 Grant Street; 048 C008001 OAV: $419,000 ao 3/31/2019 2% Mil Rate Escalation 75% Capture to AH TIF Project; 25% to City General Fund City of Portland- TIF Projection Table for 104 Grant Street AH TIF Captured Captured Revenue to Revenue to City Non- City OAV Increased Total Projected Business Municipal Captured General Tax Year- Assessed Value % of Value Captured Projected New Taxes Project Project General Fund Fund TIF Year April 1 Real Prop. Captured Valuation Mill Rate Captured Account Account Revenues Revenues 1 2020 $0 75.00% $0 23.78 $0 $0 $0 $0 $9,962 2 2021 $0 75.00% $0 24.25 $0 $0 $0 $0 $10,161 3 2022 $4,058,820 75.00% $3,044,115 24.74 $75,302 $75,302 $0 $25,101 $10,365 4 2023 $4,058,820 75.00% $3,044,115 25.23 $76,808 $76,808 $0 $25,603 $10,572 5 2024 $4,058,820 75.00% $3,044,115 25.74 $78,344 $78,344 $0 $26,115 $10,783 6 2025 $4,058,820 75.00% $3,044,115 26.25 $79,911 $79,911 $0 $26,637 $10,999 7 2026 $4,058,820 75.00% $3,044,115 26.78 $81,509 $81,509 $0 $27,170 $11,219 8 2027 $4,058,820 75.00% $3,044,115 27.31 $83,139 $83,139 $0 $27,713 $11,443 9 2028 $4,058,820 75.00% $3,044,115 27.86 $84,802 $84,802 $0 $28,267 $11,672 10 2029 $4,058,820 75.00% $3,044,115 28.41 $86,498 $86,498 $0 $28,833 $11,906 11 2030 $4,058,820 75.00% $3,044,115 28.98 $88,228 $88,228 $0 $29,409 $12,144 12 2031 $4,058,820 75.00% $3,044,115 29.56 $89,992 $89,992 $0 $29,997 $12,387 13 2032 $4,058,820 75.00% $3,044,115 30.15 $91,792 $91,792 $0 $30,597 $12,635 14 2033 $4,058,820 75.00% $3,044,115 30.76 $93,628 $93,628 $0 $31,209 $12,887 15 2034 $4,058,820 75.00% $3,044,115 31.37 $95,501 $95,501 $0 $31,834 $13,145 16 2035 $4,058,820 75.00% $3,044,115 32.00 $97,411 $97,411 $0 $32,470 $13,408 17 2036 $4,058,820 75.00% $3,044,115 32.64 $99,359 $99,359 $0 $33,120 $13,676 18 2037 $4,058,820 75.00% $3,044,115 33.29 $101,346 $101,346 $0 $33,782 $13,950 19 2038 $4,058,820 75.00% $3,044,115 33.96 $103,373 $103,373 $0 $34,458 $14,229 20 2039 $4,058,820 75.00% $3,044,115 34.64 $105,440 $105,440 $0 $35,147 $14,513 21 2040 $4,058,820 75.00% $3,044,115 35.33 $107,549 $107,549 $0 $35,850 $14,803 22 2041 $4,058,820 75.00% $3,044,115 36.04 $109,700 $109,700 $0 $36,567 $15,099 23 2042 $4,058,820 75.00% $3,044,115 36.76 $111,894 $111,894 $0 $37,298 $15,401 24 2043 $4,058,820 75.00% $3,044,115 37.49 $114,132 $114,132 $0 $38,044 $15,709 25 2044 $4,058,820 75.00% $3,044,115 38.24 $116,415 $116,415 $0 $38,805 $16,024 26 2045 $4,058,820 75.00% $3,044,115 39.01 $118,743 $118,743 $0 $39,581 $16,344 27 2046 $4,058,820 75.00% $3,044,115 39.79 $121,118 $121,118 $0 $40,373 $16,671 28 2047 $4,058,820 75.00% $3,044,115 40.58 $123,540 $123,540 $0 $41,180 $17,004 29 2048 $4,058,820 75.00% $3,044,115 41.39 $126,011 $126,011 $0 $42,004 $17,344 30 2049 $4,058,820 75.00% $3,044,115 42.22 $128,531 $128,531 $0 $42,844 $17,691 30 Year TIF Total $113,646,960 $85,235,220 $2,790,013 $2,790,013 $0 $930,004 $404,148 30 Year Average $2,841,174 $93,000 $93,000 $31,000 $13,472 104 Grant St TIF Model at 75% for 30 Years Updt as Rqst by MD 2-27-2020.xls 17 Tax Shifts-Avoided Formula Impacts from Sheltering of Valuation: City of Portland - TIF Model for 104 Grant Street Affordable Housing TIF 75% Sheltered - 30 years - 75% to Developer Project Account - 25% to City General Fund Avoided Formula Impacts from Sheltering of Valuation Avoided Loss of Avoided Loss of Tax Year- Total Added Sheltered State Aid to for State Municipal Avoided Increase Total Avoided TIF Year April 1 Valuation Valuation Education Revenue Sharing in County Tax Impacts 1 2020 $0 $0 $0 $0 $0 $0 2 2021 $0 $0 $0 $0 $0 $0 3 2022 $4,058,820 $3,044,115 $0 $2,281 $1,681 $3,962 4 2023 $4,058,820 $3,044,115 $8,402 $2,281 $1,681 $12,364 5 2024 $4,058,820 $3,044,115 $16,804 $2,281 $1,681 $20,766 6 2025 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 7 2026 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 8 2027 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 9 2028 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 10 2029 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 11 2030 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 12 2031 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 13 2032 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 14 2033 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 15 2034 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 16 2035 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 17 2036 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 18 2037 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 19 2038 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 20 2039 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 21 2040 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 22 2041 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 23 2042 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 24 2043 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 25 2044 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 26 2045 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 27 2046 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 28 2047 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 29 2048 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 30 2049 $4,058,820 $3,044,115 $25,205 $2,281 $1,681 $29,167 30 Year TIF Total $113,646,960 $85,235,220 $655,337 $63,875 $47,062 $766,274 30 Year TIF Avg. $3,788,232 $2,841,174 $21,845 $2,129 $1,569 $25,542 104 Grant St TIF Model at 75% for 30 Years Updt as Rqst by MD 2-27-2020.xls 18 13 12 11 10 9 8 7 6 5 4 3 2 1 X X X X DRAWING NAME: PROJECT NAME: CLIENT: UP UP X X X N ENGINEERING, INC. X X X R X X X X O X UP X C X X A Vehicle Tracking Vehicle Details Vehicle Name: Architectural 16.75 16.75 Type: Passenger car Overall Length 16.750ft Overall Width 6.300ft Overall Body Height 5.003ft Min Body Ground Clearance Curb to Curb Turning Radius 0.939ft 20.000ft 3.83 9.42 3.83 9.42 C-10 19 DECEMBER 6, 2019 RESIDENCES 104 GRANT STREET PORTLAND, MAINE EASTERN WHITE CEDAR FENCE ELECTRICAL METERS UP ELEVATOR UP MACHINE COMMON FIRST FLOOR FLOOR PLATE 886 SF 4,852 SF ELECTRICAL LOBBY ROOM 100 MAIL / PACKAGES 520 SF PRIVATE YARD SPRINKLER/ MECHANICAL ROOM 1 BED STUDIO 2 BED 102 103 104 615 SF 497 SF 831 SF 1 BED 1 BED ADA 101 105 LIFT 756 SF 756 SF UP PORCH PORCH ENTRY FIRE DEPARTMENT SPRINKLER CONNECTION 0 4' 8' 16' 32' GRANT STREET OR PROJECT TH NORTH N L Y UE N I N TO n TR S S PR ructio G R E onst C PRO Not for FIRST FLOOR PLAN 1 1/4" = 1'-0" RENEWAL HOUSING ASSOCIATES, LLC RYAN SENATORE ARCHITECTURE 20 DECEMBER 6, 2019 RESIDENCES 104 GRANT STREET PORTLAND, MAINE UP UP STORAGE AND MECHANICAL DN DN SECOND FLOOR COMMON FLOOR PLATE 4,929 SF 941 SF 1 BED 1 BED 1 BED 1 BED 202 203 204 205 615 SF 623 SF 623 SF 615 SF 1 BED 1 BED 201 206 756 SF 756 SF PORCH PORCH GRANT STREET 0 4' 8' 16' 32' OR PROJECT TH EN NORTH TR U N L Y I N TO n S S PR ructio G R E onst C PRO Not for SECOND, THIRD, FOURTH FLOOR PLANS 1 1/4" = 1'-0" RENEWAL HOUSING ASSOCIATES, LLC RYAN SENATORE ARCHITECTURE 21 DECEMBER 6, 2019 RESIDENCES 104 GRANT STREET PORTLAND, MAINE FIBER-CEMENT PANEL FIBER-CEMENT PANEL ON BETWEEN WINDOWS ELEVATOR OVER-RIDE FIBER-CEMENT LAP SIDING - 6" EXPOSURE NICHIHA SIDING NICHIHA SIDING ROOF EDGE BEAM ((REF.) ELEV.) 143'-6" SLIDING DOOR WITH 11'-3" TRANSOM WINDOW GALVANIZED RAILING FOURTH FLOOR ((REF.) ELEV.) 132'-3" DECK WRAPPED IN FIBER-CEMENT TRIM 10'-9" 1" THIRD FLOOR 44'-1116 ((REF.) ELEV.) 121'-6" WINDOW WITH FIBER-CEMENT 10'-9" TRIM, TYPICAL POST WRAPPED IN FIBER-CEMENT TRIM SECOND FLOOR ((REF.) ELEV.) 110'-9" 104 GRANT STREET EASTERN WHITE CEDAR FENCE 10'-9" FIRST FLOOR ((REF.) ELEV.) 100'-0" 1" 2'-12 FRONT DOOR ((REF.) ELEV.) 97'-10-1/2" SPRINKLER FRONT ENTRY BRICK BASE CONNECTION CMU RETAINING WALL LOCATION AVERAGE GRADE NORTH ELEVATION 1 1/4" = 1'-0" N L Y I N TO n S S PR ructio G R E onst C PRO Not for RENEWAL HOUSING ASSOCIATES, LLC RYAN SENATORE ARCHITECTURE 22 DECEMBER 6, 2019 RESIDENCES 104 GRANT STREET PORTLAND, MAINE FIBER-CEMENT PANEL ON ELEVATOR OVER-RIDE ROOF EDGE BEAM ((REF.) ELEV.) 143'-6" FIBER-CEMENT TRIM 11'-3" FOURTH FLOOR ((REF.) ELEV.) 132'-3" WINDOW WITH WINDOW WITH FIBER-CEMENT FIBER-CEMENT TRIM, TYPICAL TRIM, TYPICAL 10'-9" 1" THIRD FLOOR 44'-1116 ((REF.) ELEV.) 121'-6" FIBER-CEMENT LAP SIDING - 6" EXPOSURE FIBER-CEMENT LAP SIDING - 6" EXPOSURE 10'-9" SECOND FLOOR ((REF.) ELEV.) 110'-9" EASTERN WHITE CEDAR FENCE 10'-9" FIRST FLOOR ((REF.) ELEV.) 100'-0" 1" 2'-12 FRONT DOOR ((REF.) ELEV.) 97'-10-1/2" ENTRY DOOR CANOPY OVER DOOR ENTRY TO STAIR WELL ELECTRICAL METERS CMU RETAINING WALL AVERAGE GRADE SOUTH ELEVATION 1 1/4" = 1'-0" N L Y I N TO n S S PR ructio G R E onst C PRO Not for RENEWAL HOUSING ASSOCIATES, LLC RYAN SENATORE ARCHITECTURE 23 DECEMBER 6, 2019 RESIDENCES 104 GRANT STREET PORTLAND, MAINE FIBER-CEMENT PANEL ON FIBER-CEMENT PANEL ON ELEVATOR OVER-RIDE ELEVATOR OVER-RIDE NICHIHA SIDING NICHIHA SIDING ROOF EDGE BEAM ROOF EDGE BEAM ((REF.) ELEV.) 143'-6" ((REF.) ELEV.) 143'-6" FIBER-CEMENT TRIM FIBER-CEMENT TRIM 11'-3" 11'-3" GALVANIZED GALVANIZED RAILING RAILING FOURTH FLOOR FOURTH FLOOR ((REF.) ELEV.) 132'-3" ((REF.) ELEV.) 132'-3" DECK WRAPPED IN DECK WRAPPED IN FIBER-CEMENT TRIM FIBER-CEMENT TRIM 10'-9" 10'-9" WINDOW WITH FIBER-CEMENT WINDOW WITH TRIM, TYPICAL FIBER-CEMENT TRIM, TYPICAL 1" 1" THIRD FLOOR THIRD FLOOR 44'-1116 44'-1116 ((REF.) ELEV.) 121'-6" ((REF.) ELEV.) 121'-6" FIBER-CEMENT LAP FIBER-CEMENT LAP FIBER-CEMENT LAP FIBER-CEMENT LAP SIDING - 6" EXPOSURE SIDING - 6" EXPOSURE SIDING - 6" EXPOSURE SIDING - 6" EXPOSURE 10'-9" 10'-9" SECOND FLOOR SECOND FLOOR ((REF.) ELEV.) 110'-9" ((REF.) ELEV.) 110'-9" TRANSOM WINDOW TRANSOM WINDOW WITH FIBER-CEMENT WINDOW WITH WINDOW WITH WITH FIBER-CEMENT TRIM, TYPICAL FIBER-CEMENT FIBER-CEMENT TRIM, TYPICAL TRIM, TYPICAL TRIM, TYPICAL 10'-9" 10'-9" EASTERN WHITE CEDAR FENCE CMU RETAINING WALL FIRST FLOOR FIRST FLOOR ((REF.) ELEV.) 100'-0" ((REF.) ELEV.) 100'-0" 1" 1" 2'-12 2'-12 FRONT DOOR FRONT DOOR ((REF.) ELEV.) 97'-10-1/2" ((REF.) ELEV.) 97'-10-1/2" BRICK BASE DOOR TO PATIO PATIO BRICK BASE RETAINING WALL AVERAGE GRADE AVERAGE GRADE EAST ELEVATION WEST ELEVATION 2 1/4" = 1'-0" 1 1/4" = 1'-0" N L Y I N TO n S S PR ructio G R E onst C PRO Not for RENEWAL HOUSING ASSOCIATES, LLC RYAN SENATORE ARCHITECTURE 24 DRAWING NAME: PROJECT NAME: CLIENT: ACORN ENGINEERING, INC TIF District Map EX-B 25 EXHIBIT C: CITY OF PORTLAND TAX PARCEL MAP, AHTIF DISTRICT BOUNDARIES F8SW F8SE F9SW 20.5 4512 100 50 1760 6700 69 67 048 B002 100 95 65 4987 048 50 048 B015 036 E006 049 A001 100 B018 32 24 048 A007 120 048 B016 048 B017 2974 28 6 048 A012 45.1 036 E022 VE 95 50 6700 65 9500 036 E001 RK A 048 A011 69 34. 3 1 PA 7 122 048 B011 275 036 E004 100 1 84 16 0 50 048 A010 45. 2 66 - 8 3 10 6 - 5 9 048 B014 4750 036 E003 95 5400 50 036 E002 -1 9 1 048 A008 048 B013 63. 1 7 97. 5 10 7 - 33 5000 048 A028 12 7 50 128 100 95 50 048 B012 4750 75 13 048 A004 130 26 1980 94 34 44.1 33 PARK VIEW CONDO 50 276 STATE STREET CONDO 45 100 4750 25.25 6 5000 66 12 138 GRANT-MELLEN 77 1149 048 D011 22 4 3463 6 273 33 - 27 42.9 50 048 A006 ¹ 16 2 - 2 7 4250 108 33 CONDO 60 26 2 - 27 7 43 036 E016 95 7 100 048 A026 4750 2 048 A005 16 1 - 50 4155 2 52 048 4775 26 3 048 A029 44 - 9 108 50 142 100 048 A025 4750 5700 79.45 146 9 D025 41 - 8 45 8 9 50 5000 85 50 4750 048 D012 54 7 62 71.2 148 048 A003 100 67 048 A031 048 A027 5000 50 50 95 62 90 4750 95 272 5375 036 E015 048 A030 06 048 D010 48.2 60 88 - 1 7 95 97 100 PARK MEDICAL 0 3100 25 036 E012 27 100. 048 A024 103 0 95 CONDO 89 - 1 048 A002 50 50 25 4750 62 3552 036 E014 3090 2375 048 D009 55. 5 4 95 50 0 105 50 66 50 48.9 95 048 A001 100. 31 5 3040 111 048 A022 107 36 048 D004 2375 048 D008 65. 7 4750 3040 4 54 43.3 048 A019 048 A021 263 5320 98. 5 0 100. 0 4132 32 4750 72 048 D007 048 46.8 4 40.2 2802 32 PROJECT LOCATION 46 5130 D006 60 036 E013 RING 048 A020 048 87 115 95. 5 053 B010 048 A016 2565 113 43.5 4370 50 74 D005 DEE 95 95 7 50 2624 119 95 40 50 125 29.5 048 D023 87 95 50 4513 2640 84 80 50 048 A018 95 27 048 D003 4 95 50 83 2-4 129 4350 N ST 95 048 A014 47.5 3 1-4 048 D001 048 D022 MA 5225 95 048 D002 55 SHER 95 4750 50 100 50.4 AVE 95 133 9500 34 048 D018 048 D019 101. 2 5 3.71 WENTWORTH 50 048 A015 46 50 11400 6520 98 50 048 D020 94 - 1 5 59.55 95 50 CONDO 62.29 T 4 NT S 38 95 91 - 1 6270 64 50 - 3 70 GRA 143 150 42.6 54 65 61 5000 6 95 3766 49 - 14250 048 D024 62 048 C008 95 4750 120 4750 048 C012 43.6 2150 46 71 95 3405 66 036 40 048 D017 036 F001 F004 53 4750 1 4750 32 50 95 95 40 50 053 B024 3800 78 40 048 D016 75 261 3800 OAKVIEW CONDO 4750 53 036 F003 100 50 104 77 60 60 95 13352 048 D015 3560 26. 7 4 116 1 32.5 3348 50 50 60 5700 5940 55. 5 120 048 C007 53 036 F002 048 D013 0 2 3071 048 F011 - 26 56 34 4750 3.24 95 24 6 - 26 1 51 5700 50 157 048 C006 6 2750 68 - 8 50 PARKSIDE STUDIOS CONDO 5300 3 62.76 24 7 1.13 95 5 63. 5 141.2 28 048 C004 7 257 4845 69 - 8 96 048 C005 46 - 5 95 150 9460 48.87 048 F009 52 4 5086 34 50 048 C023 9 5850 122 048 C026 45 - 048 F010 59. 5 50 50 95 134 5 4874 048 F012 TE 95 16 4 19 52 128 14 8 - 16 3 100 7 048 F007 STA 3000 048 C025 2806 44 40 60 56 256 95 6 048 C003 5000 101 036 F016 14 7 - 18 048 C001 75 95 40 048 F008 100 048 C002 95 036 140 17 90 105 4750 048 F006 48 3600 142 75 048 C020 048 C021 111 12500 62 38.5 40 F017 053 C011 40 95 4750 99.2 048 F026 ST 50 31 60 97 35 46 048 C009 8 048 C022 66 99.2 25.5 31 1672 40. 1 33.54 28 9 19 252 036 F015 30 - 748 2 4200 50 10 115 9500 50 55 96 4 20 - 50 95 100 40 29 119 41.2 4347 40 4025 48 3667 39 048 C013 28 80 048 F005 50 048 F024 17500 .6 55 5 100 43.3 42 123 4275 3126 158 053 C012 2750 048 C019 49.4 35 95 048 F027 2793 4750 50 048 F025 32 50 048 C018 4750 82 60. 5 053 C010 45 100 477 120 90 048 C017 131 50 64.9 048 E012 048 F001 58.5 485 95 3600 WETERLY CONDO 2771 4750 100 481 053 C043 40 40 048 C016 35.1 135 50 50 35.5 048 F023 053 C013 4275 50 1755 62 4938 048 C015 50 3245 37.65 50 N ST 139 048 F022 489 048 E011 47 2 9 93. 2 3800 048 F019 45 8 - 7 3 37.35 MA 50 048 C014 106 5500 SHER 50 493 50 5 45 93. 2 141 4 40 45 7 - 90 3800 5000 048 F021 5500 50 50 50 100 98 - 1 9 64.9 053 C042 92 38 3619 40 50 4940 55 39. 3 4 048 F020 497 145 4 97 - 1 35 100 108 4750 40 100 50 35.1 49 3803 5500 053 C014 EN 34.3 4750 55 046 A001 MELL 112 60 100 22 39. 3 4 50 5437 116 048 E010 5000 50 32.25 048 F018 501 20 100 4500 4481 048 E013 503 100 053 C044 50 92 048 E009 048 F017 4022 50 2930 120 048 E008 79.8 100 100 3550 3950 5 34 72.3 507 45 22. 5 2693 64.8 048 E007 50 048 F016 100 509 100 124 52 0 2813 40 3765 47 4 - 52 1 100 39.5 053 C027 57.6 048 F015 2301 ST 511 047 B028 4 47 5 - - 24 30 048 E005 048 E006 100 3735 35.5 E 2540 048 F028 24 D AV 22 4 - 24 5 048 E025 10 50.1 26 053 C025 132 130 E8NW N 33 9 98. 8 O7NE 048 F014 515 37.65 99. 3 ERLA 22 3 2257 3005 100 5000 2667 100 2872 6 48 - 6 45 8 38 20 B 048 E004 33. 8 CUM 10 37.35 100 7350 30 3600 46 54 7 242 - 6 4000 2878 7 35. 8 2934 49 047 B027 5 3 40 50.53 100 50 053 C024 7 65 048 E001 2318 138 048 E029 1746 048 E026 2775 50 3700 053 C028 58.6 55 3225 048 E028 30 9 4369 40 38 4335 482 99. 5 3007 142 72.93 048 E003 27.58 40 70 90 523 4200 484 047 B030 63.7 048 E002 100 45 80 048 E024 486 63 47 146 32.25 63.7 101 3980 048 E023 100 26 70 488 047 B007 527 240 40 3 3800 24. 1 047 B008 30 80 100 4480 053 C029 3780 3007 053 C031 38 048 E021 048 E022 531 047 B003 160.5 8 492 047 B006 047 B026 10 048 E027 3680 54 494 047 B009 9.1 238-240 STATE STREET CONDO 55 8 32.7 5000 047 B005 93. 048 E014 047 B004 3835 42 50 46.5 048 E020 535 46 98.8 33.42 99. 7 101 30 35 18742 26.1 3056 541 149 545 6000 98. 8 E0 31 19 113 048 E019 50 498 26.1 048 E030 047 B025 28 20 100 04 8 156 053 C032 5622 2 28 1526 236 35 3786 114.4 4602 053 C030 70 1356 047 B019 75 823 87. 6 549 41. 5 6689 38. 3 35. 4 1 047 B018 3179 500 E0 18 75 234 9 45.3 46 04 8 10 110 47 27.5 553 0 053 C034 GARDNER HOUSE CONDO 110 21088 50 13 047 B024 048 E015 048 E017 3488 53.2 047 B002 9 29.92 7000 84.33 62 29.92 555 110 7470 35 3794 10 57 0 45 0 817 25.8 52 2 - 7 1 053 C035 44. 5 563 8315 46.5 047 A027 3.46 22.5 DEERING 5 047 B013 52 3 - 5 1100 28.5 4628 40 STREET 047 B020 50. 6 81. 18 3500 42 - 28 048 E016 5 5500 1001 CONDO 053 C036 40 55 10 27 10 35 53.2 24.88 0 11 - 10 4750 3500 9.1 24.88 81.56 16.25 1 10 3766 571 2385 21.05 6.52 156 047 047 053 C037 2 0 50 161 - -7 8 35 3500 2385 151 047 B022 43. 1 528 047 B001 130 047 B017 114 B021 B023 39 75 047 A008 047 11. 97 047 B014 39 35 053 C038 11 5045 A011 047 A012 047 B012 132 114 101. 3 37 33 17.66 3888 48.11 538 536 047 B011 138 534 95.84 30 3500 35 .99 047 B010 43 2393 46.84 47 124 .2 95.84 57 45 5272 .9 2366 2649 9 35 95.84 59 53 807 053 C039 047 A006 7 110 38. 40 5608 110 2914 542 51 29 4103 047 A009 047 B029 49 27 7 .4 30.79 4359 6946 2 3060 101.6 85.5 100.1 047 4221 6 4219 93.25 76 34.81 047 A003 047 B016 . 2496 A010 8336 054 A001 053 C040 546 5389 047 B015 5 054 A002 40 4596 94.22 6 30 - 4 27.5 550 2 24.88 117.2 27.5 054 A003 2460 803 552 24.88 .76 - 4 7 73 4945 4564 5054 61 61.69 2592 2 047 A007 49 29 9201 37.5 2700 117.2 2 82 3619 80 31 80 .4 047 A001 047 A002 556 46 .8 40. 2 87.9 047 A026 .8 1 35 80 4 - 8 45 1830 047 A005 . 9 5 7 10.82 6 2518 23 3 - 8 20 562 79. 2 7 117.2 2 83.18 23 60. 1 30 747 87 .2 .2 814 5 66.16 22394 34 - 7 6 T 1 DEERING S 94 48 4 2178 20 61. 2 27.85 30 33 - 7 5 29 .7 41 4 . 67 5 13 .1 11. 9 61. 2 8675 24 31. 9 100 047 C039 8 2.7 2255 18 054 A004 047 A004 9 .7 67 37. 41 48.11 810 2- 3 3 2 .8 42 047 C017 9740 054 1- 8 31. 9 1956 4 35 9 3 35 91.5 39 34 A005 7311 61. 1 29 4194 4166 812 8 9 2909 2932 3500 054 054 41 .8 100.5 B003 A006 35 3250 2900 047 C013 73 - 8 2 047 A013 047 A014 32.93 2 047 A033 31.17 4947 3000 218 97.82 - 804 -8 142.66 30.48 38 - 2 24 BR 44 3136 42 1 3 45 116. 47 ST 7 3395 30.5 44 99.85 75 3018 047 C012 047 C016 3 AM 04 7 C014 2904 054 A007 3681 12 047 A015 047 C002 3050 3054 047 C008 48 047 C015 99.85 2 047 A017 50 40 0 3050 46 66 3815 047 C007 HA 45 .5 047 A028 047 C005 52 100 054 B005 3260 047 C003 047 C011 100 43 4455 8215 60 97.1 047 C010 LL 11 LL 047 A029 139. 4 70 64 96.83 58 97.1 047 C009 96. 83 0. 5 78 779 047 A025 24 97 68 PL 7 8- 89 2838 AM .1 0 39 10 047 C001 70 047 C006 8 9 - 80 2 66 5016 66 HA 7 100 70 44 .4 9 94. 95 12 80 72 0 775 047 A016 100 054 B007 28 1 41 .8 100. 03 74 100 42 .7 121 054 B006 BR 37959 5 5016 12 0 100 88 85 22 77.47 43.42 2- 30 .6 .9 66 6 54 51 1 - 20 41.85 52.5 13 41 8 .8 35 15.6 19 32.33 7517 5400 31.17 794 047 A032 134 35 2 047 C004 11.4 19.2 5.05 80.3 767 118 20061 30.5 35 45 .7 50 790 RD 120 41.85 047 C023 054 F001 17088 047 A024 CO 66 BRAMHALL CONDO 047 C035 66 047 A018 21 94.97 NG 68 146 38 16 047 C022 65 - 7 0 .9 134 9 AN 116 .9 6 5617 047 C040 RE 16.7 -7 . 81 14 MELLEN STREET CONDO 15 047 C018 1 047 A019 2 - 24 94.97 50 SS 054 F002 765 14 MIL 33 A 03 0 1 - 27 6918 12390 ST DEERIN .6 50.02 L 4 55.3 047 C019 5 VAUGHAN ST 129 17019 . 24710 78. 4 14. 8 37.8 7482 107. 98 10.5 98 04 1 76 4574 7 32.11 MA 0- 26. 3 5746 65.11 7 28. 1 8 3 C 054 F004 6 1 - 78 6 90 55 4 60 15 5 5. 08 1 57 8 - .3 66 78 757 43.06 047 A023 67.9 88.83 11 - 6 66 .6 7 7 047 A020 128 047 C034 1 inch = 50 feet 3 GS LN 4368 3000 53 047 C024 047 C033 2 - 20 13629 3. 70 054 F014 054 F008 047 A021 10 11 047 C021 1 - 19 50 61. 747 7991 50 9 8640 77.03 3 269 054 F011 62 55.42 Index Number - E8NE 73.06 Tax Map Index; http://www.portlandassessors.com/taxmaps.htm 86. 3 E8SW E8SE E9SW 9 60 April 1 2012 fy 2013 7720 2 7. 4 41. 10 50 6 4500 12 26 Exhibit A2: Projected Sales Schedule | The Goodwin Unit BR SF Price IZ Unit MH Unit -$30,000 401 1 756 $325,000 402 1 617 $240,000 1 403 1 616 $265,000 404 1 616 $265,000 405 1 617 $240,000 1 406 1 760 $325,000 301 1 756 $310,000 302 1 617 $200,000 1 1 303 1 616 $240,000 1 304 1 616 $240,000 1 305 1 617 $200,000 1 1 306 1 760 $310,000 201 1 756 $305,000 202 1 617 $200,000 1 1 203 1 616 $200,000 1 1 204 1 616 $200,000 1 1 205 1 617 $200,000 1 1 206 1 760 $305,000 101 1 756 $355,000 102 1 617 $200,000 1 1 103 1 498 $200,000 1 1 105 2 750 $345,000 106 1 756 $320,000 TOTALS 24 15,323 $5,990,000 AVG 638 $260,435 8 12 PARKING 12 $12,000 $144,000 GROSS POTENTIAL SALES $6,134,000 27 Exhibit A1: Development Pro Forma | 104 Grant Street Project Pro Forma ACQUISITION Land|Bldg 400,000 Misc Closing Costs 5,000 SUBTOTAL 405,000 HARD COSTS Construction (GMP) 4,600,000 Environmental (Remediation) 30,000 Appliances 70,000 Contingency 150,000 SUBTOTAL 4,850,000 SOFT COSTS A&E | Design+Structural+Admin 165,000 Interior Design 10,000 GeoTech 20,000 Civil+Survey 38,000 Owner's Construction Rep 25,000 Environmental (Reports+Fees) 45,000 Special Testing|Insp. 5,000 FF&E + Signage 10,000 Parking 40,000 Developer Legal 50,000 Site Plan Approval 10,000 Building Permit + Fees 82,000 Utility Connection Fees 60,000 Adv+Marketing+Staging 25,000 Insurance 30,000 Property Taxes 15,000 Stormwater Fees 2,000 R.E. Transfer Tax 15,000 Other Closing Costs 5,000 Misc Soft Costs 10,000 Developer Overhead 215,000 Property Management 10,000 Post Constr. Carrying Costs 20,000 SUBTOTAL 907,000 FINANCING COSTS Origination Fees 16,000 SubDebt|Subsidy Fees 5,000 Lender 3rd Party Fees 13,000 Lender Legal 15,000 Title & Recording 7,000 Interest Expense 200,000 AHTIF Reserve 77,000 SUBTOTAL 333,000 TOTAL 6,495,000 28 CITY OF PORTLAND Planning & Urban Development Department Housing and Community Development Division TO: Councilor Duson, Chair Members of the Housing Committee Councilor Costa, Chair Members of the Economic Development Committee FROM: Mary Davis, Division Director Victoria Volent, Housing Program Manager Housing and Community Development Division DATE: February 28, 2020 SUBJECT: DRAFT Request for Proposal of 21 Randall Street, 165 Lambert Street, and 43 & 91 Douglass Streets During the November 13, 2019 meeting of the Housing Committee, the Committee voted to recommend to the City Council the disposition of City-owned property located 21 Randall Street, 165 Lambert Street, and 43 & 91 Douglass Streets. At the December 16, 2019 meeting of the City Council, the Council authorized staff to move forward with the disposition of these properties and requested that staff investigate options to maximize housing development potential and recommend preferred disposition approaches, working with the Economic Development and Housing Committees (Resolve 10-19/20). Staff is recommending the Request for Proposal (RFP) process to ensure that public resources are utilized for maximum public benefit while accomplishing specific objectives requested by the Council, and providing fair access to all applicants. RFP Goals There are common goals identified for the three properties. • Developments shall provide mixed income units affordable to households earning 60% to 120% of the area median income (AMI). Currently, 60% AMI for a family of four is $55,800 and 120% AMI for a family of four is $111,600. • Affordable is defined as the percentage of income a household is charged in rent and other housing expenses including utilities, or must pay in monthly mortgage payments (including real estate taxes, mortgage insurance, condominium/HOA fees, insurance and utilities), does not exceed 30% of a household’s gross income, or other amount established in city regulations that does not vary significantly from this amount. 389 Congress Street Room 312 • Portland, Maine 04101 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov 1 • Affordability restrictions must be in place for a minimum of 30 years for homeownership units, and the longest period allowed by law for rental units. • Developments should include excellent building and site design utilizing design principles that promote efficient use of land to create a development that is compatible with the existing pattern, streetscape, scale, massing, and materials of the surrounding neighborhood. The designs will meet the City’s Green Building Code. • Higher density zoning that furthers exceptional projects and other city goals as outlined in the RFP(s) may be considered. • Short-term rental of the units will not be permitted. • The sale or long-term lease of the properties at 21 Randall and 165 Lambert Streets at below fair market value may be considered to support housing development that meets the City’s stated goals. The City expects to receive fair market value for the property located at 43 & 91 Douglass Street. • Alternative ownership models that encourage a mixed income community with long term affordability for the maximum number of units, such as limited equity units, co-housing, cooperative, or a community land trust, may be considered in order to ensure the units affordability over time. After proposals are opened, city staff will make a recommendation to the City Council’s Economic Development Committee (EDC) and the Housing Committee (HC). The EDC and HC will make a recommendation to the City Council. The contract for the disposition of the property will be executed only after review and final approval by the City Council. Staff Recommendation Staff is requesting the Economic Development Committee and the Housing Committee approve the terms and authorize staff to issue the Request for Proposals for the city-owned properties at 21 Randall Street, 165 Lambert Street and 43 & 91 Douglass Street. Attachments Draft Request for Proposal (RFP) - 21 Randall Street Draft Request for Proposal (RFP) - 165 Lambert Street Draft Request for Proposal (RFP) - 43 and 91 Douglass Street 389 Congress Street Room 312 • Portland, Maine 04101 207- 874- 8711 mpd@portlandmaine.gov • www.portlandmaine.gov 2 CITY of PORTLAND, MAINE Request for Proposals for Disposition and Development of City-Owned Property Located at 21 Randall Street I. NOTICE AND SPECIFICATIONS The City of Portland, Maine seeks proposals from qualified developers for the creation of residential housing at 21 Randall Street. The site is designated on the City of Portland Tax Assessor’s Map as lot CBL 166 B014-015-016. Sealed proposals for the project, including an original, seven (7) copies, and one (1) digital copy, as specified herein, will be received by the Purchasing Office, Room 103, City Hall, 389 Congress Street, Portland, Maine 04101, until (time) p.m., (day), (month, date), 2020, at which time they will be publicly opened. Proposals shall be submitted, and returned in sealed envelopes plainly marked on the outside “Disposition and Development of Property Located at 21 Randall Street”. Proposals that are late, unsigned or submitted via fax will not be accepted. Proposals from individuals not registered with the Purchasing Office may be rejected; receipt of this document directly from the City of Portland indicates registration. Should a person receive this Request from a source other than the City, please contact 207-874-8654 to ensure that you are listed as a recipient for this proposal. All questions must be submitted in writing to the Purchasing Office. These may be mailed, hand delivered, faxed to (207) 874-8652 or e-mailed to mff@portlandmaine.gov and be received no later than five (5) business days prior to the opening date. Questions received after this time will not be addressed. Any interpretation, correction, or change of this document will be made only by written addenda. Changes in any other manner will not be binding on the City and proposers should not rely on. Proposers should not have contact with any City staff with regard to this proposal unless to obtain general public information as specified in the document. The disposal of this real estate shall be on the basis of a negotiated proposal, with the City of Portland reserving the right to refuse any and all proposals. All proposers are advised that the property will be sold “as-is” and “where is”, in its existing condition, with no warranties either expressed or implied. The City disclaims any and all responsibility for injury to proposers, their agents or others while examining the property or at any other time. The City will not be responsible for any broker’s commission. Any and all improvements made to said property must be done in accordance with existing City Codes and Ordinances. II GENERAL INFORMATION Summary of Request: The City of Portland is committed to providing housing opportunities and has set a goal to evaluate 1 the use of City-owned property to construct housing. As one-step in accomplishing this goal, the City of Portland will accept proposals for the development of housing on the lot located at 21 Randall Street, which currently is a vacant. This request for proposals results from the December 16, 2019 approval by the Portland City Council (Resolve 10-19/20) of the recommendations of the Housing Committee to market the City- owned vacant property located at 21 Randall Street. The City of Portland uses the RFP process to ensure that public resources are utilized for maximum public benefit while accomplishing specific objectives and providing fair access to all applicants. Site Information: a. Location: 21 Randall Street, as identified in the City of Portland Assessor’s records as lot CBL 166 B014-015-016. (See Attachment 2). b. Existing Conditions: 21 Randall Street is located on three parcels totaling .3204 acres with frontage on Randall and Illsley Street in the East Deering Neighborhood. The surrounding context is predominantly residential with the majority of homes in the area being one and two-family structures. Washington Avenue, the neighborhood’s principal arterial roadway, is located one block north of the complex and features a mixture of multi-family structures and commercial land uses. c. Current use: Vacant lot. d. General Dimensions: Together these lot are approximately .3204 acres or 13,956 square feet. e. Current Zoning: R-5. The R-5 zone allows for residential and duplex development. For a single-family home or duplex, the land area per dwelling unit is 3,000 square feet. At 13,956 square feet, this parcel, if split into two lots, would technically allow for four (4) single- family homes or two (2) two-family dwelling units For complete zoning requirements, please refer to Chapter 14, Land Use, of the City Code. f. Rezoning: Higher density zoning that furthers exceptional projects and other city goals as outlined in Section III may be considered. g. Condition of the property at the time of disposition: Portland Water District has a major sewer easement through Lot 166 B016, which would preclude development on that side of the property. However, pavement placed over the easement may be allowed with a minor modification and execution of an Easement Modification Agreement with Portland Water District. (See Attachment 3) h. Environmental Conditions: The City of Portland does not have any specifics with regard to environmental conditions and makes no representations or guarantees with respect to the environmental condition of the site. 2 i. Proposers are urged to investigate water sources and utility connection requirements with the Department of Public Works. III CITY GOALS The City’s primary goals for the use of the property are: 1. Developments shall provide mixed income units. All units must be affordable to households earning 60% to 120% of the area median income (AMI). Currently, 60% AMI for a family of four is $55,800 and 120% AMI for a family of four is $111,600. Affordable means that the percentage of income a household is charged in rent and other housing expenses including utilities, or must pay in monthly mortgage payments (including real estate taxes, mortgage insurance, condominium/HOA fees, insurance and utilities), does not exceed 30% of a household’s gross income, or other amount established in city regulations that does not vary significantly from this amount. Restrictions on the affordability of units must be in place for a minimum of 30 years for homeownership units, and the longest period allowed by law for rental units. 2. Development of mixed income homeownership or rental housing of excellent building and site design. Design principles should promote efficient use of land to create a development that is compatible with the existing pattern, streetscape, scale, massing, and materials of the surrounding neighborhood. The development’s building shall be designed to meet the City’s Green Building Code. 3. Rezoning may be considered to support increase housing development opportunities or maximize the number of allowable housing units on the property. The general terms for this real estate transaction include: • Zoning. Rezoning of this property may be considered to increase housing development opportunities or to maximize the number of allowable housing units on the property. • Units must be used as the principal residence of the owner/tenant and owner/tenant shall not use the unit for the conduct of business (except for a home occupation allowed under the City of Portland zoning ordinance) or as an investment property. Units shall not be rented for short term periods of one to thirty days. • The sale or long term lease of the property below fair market value may be considered to support housing development that meets the City’s stated goals. • Alternative Ownership Models. Alternative ownership models that will encourage a mixed income community with long term affordability for the maximum number of units, such as limited equity units, co-housing, cooperative, or a community land trust, may be considered in order to ensure the units affordability over time. • Proposals must outline how they will maintain affordability. 3 • Other City Incentives. Other city financial incentives may be considered to support increase housing development opportunities or maximize the number of allowable housing units on the property. IV PROPOSED SCORING An internal staff Committee will review proposals received, and will apply the following selection criteria in reviewing and scoring the applications. Proposed use to achieve the City of Portland's goals 40 points 1. Market Demand - 25 points a. 25 points - All units meet the City’s income targeting priority noted in Section III.1 b. 20 points - At least 75% of the units meet the City’s income targeting priority noted in Section III.1 c. 15 points - At least 50% of the units meet the City’s income targeting priority noted in Section III.1 d. 0 points - Project does not does not meet the City’s income targeting priority noted in Section III.1 2. Economic diversity – 15 points a. 15 points creates housing options which promote economic diversity in the neighborhood in which the development is located b. 0 points does not promote economic diversity Impact on surrounding neighborhood, including design. 25 points 1. Project Design -- 15 points a. 15 points -- the proposal is consistent with design characteristics b. 10 points – the proposal is an adequate fit with the neighborhood design, c. 0 points – the design is a significant outlier 2. Amenities and unit design -- 10 points a. 10 points – amenities & unit design are well thought out and appropriate for residents b. 5 points -- amenities & unit design are adequate c. 0 points – amenities and unit design raise significant concerns that resident needs will not be adequately addressed Applicant's ability to complete project, including financial feasibility, development team experience, capacity, and timeframe for completion. 35 points 1. Readiness to proceed – 15 points a. 15 points – all projected sources of funding include letters of commitment or interest are projected at terms and conditions consistent with the City’s prior experience with the funder b. 10 points – most projected sources of funding include letters of commitment, letters of interest, or, if no letter is included, are projected at terms and conditions consistent with the City’s prior experience with this funder 4 c. 0 points – one or more sources are projected on terms that are not consistent with the City’s prior experience with the funder and are not documented by letter(s) from funder(s). 2. Track record of development team – 10 points a. 10 points – every development team member has a successful track record with this type of project and at this scale b. 8 points – all but one development team members have a successful track record with this type of project and at this scale; one development team member has relevant experience but at a smaller scale or not of this project type c. 5 points – two development team members, while having relevant experience, are new to this type of project or this scale of development d. 0 points – the development team does not meet the criteria above 3. Current Capacity of development team – 10 points a. 10 points – development team members have exceptional depth of human and financial resources to complete this project b. 8 points - development team members have the human and financial resources to complete this project c. 5 points – development team has a staffing gap in a significant role and a plan to address that gap, OR there are some concerns about the financial resources of the team to move the development forward d. 0 points - the development team does not meet the criteria described above SUMBMISSION INFORMATION Interested parties are asked to submit a concept development (including preliminary drawings) and a brief description of the project, no longer than two pages, to include the number and type of units, occupants (owners/renters) to be served, special features, the impact on the neighborhood and other ways the proposal meets the primary goals of the City. A general project budget with projected funding sources, development timeline, and development team qualifications and financial capabilities is also required. This RFP does not require detailed architectural drawings or development pro formas. Photographs and maps of the site and area are required. a) Developer: Name, address, telephone, fax number of the proposed owner/developer and the name(s) of an alternative contact person(s). b) Proposal: Each proposal submitted must specifically outline the proposed use of the property and any proposed rezoning requests. c) Financial Feasibility: Provide a business plan, which shall include prospective and committed sources of funding, development and operating budgets; a letter from a lending institution indicating the applicant’s ability to finance the projected costs; and provide examples of prior projects that indicate the proven ability to develop a project of similar type and scale from a fiscal perspective. 5 d) Timetable: Provide an overview of how the proposal will be implemented. Include approximate schedule for completion of each element, closing, construction start-up, substantial completion, final completion, and occupancy. Include applications for public or private financing. e) Developer Capacity: Identify the qualifications and experience of the development team for the project including a list of previously completed projects similar to the proposed project. This team may include key staff of the developer, architect, general contractor and future property management. Also, discuss the ability to complete the project including the qualifications of the development team, management plan, experience, capacity, project readiness to proceed, and timeframe for completion. f) Occupancy and Management Plan: Present a plan detailing the ownership structure (condominium, cooperative, etc.), resale restrictions and resale process to ensure mixed income and long-term affordability. g) Purchase Price: Proposed purchase price for the property. h) Copies: Seven (7) copies, with the original so marked, and one (1) digital copy of each proposal shall be submitted. V DISPOSITION INFORMATION After proposals are opened, city staff will make a recommendation to the City Council’s Economic Development Committee (EDC) and the Housing Committee (HC). The EDC and HC will make a recommendation to the City Council. VI OTHER INFORMATION Confidentiality: Proposals received by the City shall become a matter of public record, subject to public inspection, except to the extent, which an applicant designates in writing, proprietary data to be confidential and submits that data under separate cover, such information may be held from public inspection, as provided in Maine law: 5 MRSA Sections 13119-A and 13119-B. VII LEGAL REQUIREMENTS The contract for the disposition of the property will be executed only after review and final approval by the City Council. VIII RESERVATION of RIGHTS The City of Portland reserves the right, at its sole discretion, to award as well as reject any and all proposals for the city-owned property, based on the quality and merits of the proposals received, or when it is determined to be in the public interest to do so. Furthermore, the City may extend deadlines and timeframes, as needed. The City reserves the right to substantiate any proposer’s qualifications, capability to perform, availability, past performance records, and to verify that the proposer is current in its financial 6 obligations to the City. The City of Portland, Maine, reserves the right to waive any informalities in proposals, to accept any proposal or portion thereof, and, to reject any and all proposals, as well as negotiate with the successful proposer(s) should it be in the best in the best interest of the City to do so for a final purchase and sale agreement and ultimate sale or lease of the property. Pursuant to City procurement policy and ordinance, the City is unable to contract with businesses or individuals who are delinquent in their financial obligations to the City. These obligations may include but are not limited to real estate and personal property taxes and sewer user fees. Proposers who are delinquent in their financial obligations to the City must do one of the following: bring the obligation current, negotiate a payment plan with the City’s Treasury office, or agree to an offset, which shall be established by the contract which shall be issued to the successful proposer March 5, 2020 Matthew F. Fitzgerald Purchasing Manager Attachments: A. Proposal B. Portland Assessor’s Record C. GIS Sketch 7 PROPOSAL NOTE: THIS PAGE IS TO BE COMPLETED AND RETURNED The UNDERSIGNED hereby declares that he/she or they are the only person(s), firm or corporation interested in this proposal as principal, which it is made without any connection with any other person(s), firm or corporation submitting a proposal for the same. The UNDERSIGNED hereby declares that they have read and understand all conditions as outlined in the Request for Proposals, and that the proposal is made in accordance with same. The UNDERSIGNED hereby declares that any person(s) employed by the City of Portland, Maine, who has direct or indirect personal or financial interest in this proposal or in any portion of the profits which may be derived therefrom has been identified and the interest disclosed by separate attachment. (Please include in your disclosure any interest which you know of. An example of a direct interest would be a City employee who would be paid to perform services under this proposal. An example of an indirect interest would be a City employee who is related to any officers, employees, principal or shareholders of your firm or to you. If in doubt as to status or interest, please disclose to the extent known). The proposer acknowledges the receipt of Addenda numbered If Applicable COMPANY NAME: (Individual, Partnership, Corporation, Joint Venture) AUTHORIZED SIGNATURE: DATE: (Officer, Authorized Individual or Owner) PRINT NAME & TITLE: ADDRESS: TELEPHONE: E-MAIL: FEDERAL TAX ID #: DUNS #: STATE OF INCORPORATION ________________________________________________ (If incorporated in another State, businesses must be authorized to do business in the State of Maine.) In your organizations preceding completed fiscal year, did the organization receive: (1) 80 percent or more of its annual gross revenues in U.S. federal contracts, subcontracts, loans, grants, subgrants, and/or cooperative agreements; AND (2) $25,000,000 or more in annual gross revenues from U.S. federal contracts, subcontracts, loans, grants, subgrants, and/or cooperative agreements? ☐ Yes ☐ No Does the public have access to information about the compensation of the executives in the organization through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (18 U.S.C. 78m(a), 78o(d) or section 6104 of the Internal Revenue Code of 1986? ☐ Yes ☐ No NOTE: All bids must bear the handwritten signature of a duly authorized member or employee of the organization making the bid. This sheet must be signed and returned with the application package. 8 8 Attachment A PROPOSAL NOTE: THIS PAGE IS TO BE COMPLETED AND RETURNED The UNDERSIGNED hereby declares that he/she or they are the only person(s), firm or corporation interested in this proposal as principal, which it is made without any connection with any other person(s), firm or corporation submitting a proposal for the same. The UNDERSIGNED hereby declares that they have read and understand all conditions as outlined in the Request for Proposals, and that the proposal is made in accordance with same. The UNDERSIGNED hereby declares that any person(s) employed by the City of Portland, Maine, who has direct or indirect personal or financial interest in this proposal or in any portion of the profits which may be derived therefrom has been identified and the interest disclosed by separate attachment. (Please include in your disclosure any interest which you know of. An example of a direct interest would be a City employee who would be paid to perform services under this proposal. An example of an indirect interest would be a City employee who is related to any officers, employees, principal or shareholders of your firm or to you. If in doubt as to status or interest, please disclose to the extent known). The proposer acknowledges the receipt of Addenda numbered If Applicable COMPANY NAME: (Individual, Partnership, Corporation, Joint Venture) AUTHORIZED SIGNATURE: DATE: (Officer, Authorized Individual or Owner) PRINT NAME & TITLE: ADDRESS: TELEPHONE: E-MAIL: FEDERAL TAX ID #: DUNS #: STATE OF INCORPORATION ________________________________________________ (If incorporated in another State, businesses must be authorized to do business in the State of Maine.) In your organizations preceding completed fiscal year, did the organization receive: (1) 80 percent or more of its annual gross revenues in U.S. federal contracts, subcontracts, loans, grants, subgrants, and/or cooperative agreements; AND (2) $25,000,000 or more in annual gross revenues from U.S. federal contracts, subcontracts, loans, grants, subgrants, and/or cooperative agreements? ☐ Yes ☐ No Does the public have access to information about the compensation of the executives in the organization through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (18 U.S.C. 78m(a), 78o(d) or section 6104 of the Internal Revenue Code of 1986? ☐ Yes ☐ No NOTE: All bids must bear the handwritten signature of a duly authorized member or employee of the organization making the bid. This sheet must be signed and returned with the application package. 8 9 Attachment B 9 Attachment C 10 10 11 Attachment D 21 Randall 11 CITY of PORTLAND, MAINE Request for Proposals for Disposition of City-Owned Property Located at 165 Lambert Street I. NOTICE AND SPECIFICATIONS The City of Portland, Maine seeks proposals from qualified developers for the creation of residential housing at 165 Lambert Street. The site is designated on the City of Portland Tax Assessor’s Map as lots CBL 385 A001, and 386 C001. Sealed proposals for the project, including an original, seven (7) copies, and one (1) digital copy, as specified herein, will be received by the Purchasing Office, Room 103, City Hall, 389 Congress Street, Portland, Maine 04101, until (time) p.m., (day), (month, date), 2020, at which time they will be publicly opened. Proposals shall be submitted, and returned in sealed envelopes plainly marked on the outside “Disposition and Development of Property Located at 165 Lambert Street”. Proposals that are late, unsigned or submitted via fax will not be accepted. Proposals from individuals not registered with the Purchasing Office may be rejected; receipt of this document directly from the City of Portland indicates registration. Should a person receive this Request from a source other than the City, please contact 207-874-8654 to ensure that you are listed as a recipient for this proposal. All questions must be submitted in writing to the Purchasing Office. These may be mailed, hand delivered, faxed to (207) 874-8652 or e-mailed to mff@portlandmaine.gov and be received no later than five (5) business days prior to the opening date. Questions received after this time will not be addressed. Any interpretation, correction, or change of this document will be made only by written addenda. Changes in any other manner will not be binding on the City and proposers should not rely on. Proposers should not have contact with any City staff with regard to this proposal unless to obtain general public information as specified in the document. The disposal of this real estate shall be on the basis of a negotiated proposal, with the City of Portland reserving the right to refuse any and all proposals. All proposers are advised that the property will be sold “as-is” and “where is”, in its existing condition, with no warranties either expressed or implied. The City disclaims any and all responsibility for injury to proposers, their agents or others while examining the property or at any other time. The City will not be responsible for any broker’s commission. Any and all improvements made to said property must be done in accordance with existing City Codes and Ordinances. II GENERAL INFORMATION Summary of Request: The City of Portland is committed to providing housing opportunities and has set a goal to evaluate 1 the use of City-owned property to construct housing. As one-step in accomplishing this goal, the City of Portland will accept proposals for the development of housing on the lot located at 165 Lambert Street, which currently is vacant. This request for proposals results from the December 16, 2019 approval by the Portland City Council (Resolve 10-19/20) of the recommendations of the Housing Committee to market the City- owned vacant property located at 165 Lambert Street. The City of Portland uses the RFP process to ensure that public resources are utilized for maximum public benefit while accomplishing specific objectives and providing fair access to all applicants. Site Information: a. Location: 165 Lambert Street, as identified in the City of Portland Assessor’s records as lot CBL 385 A001and 386 C001 (See Attachment 2). b. Existing Conditions: 165 Lambert Street is located on two parcels totaling 13.3874 acres with frontage on Lambert Street in the North Deering neighborhood. The surrounding context is predominantly residential with the majority of homes in the area being one-family structures. The topography is quite steep and much of the parcel is designated as wetlands. A large portion of Auburn Street storm drain discharges to this area. c. Current use: Vacant lot. d. General Dimensions: Together these lots are approximately 13.3874 acres or 583,157 square feet. e. Current Zoning: R-2. The R-2 zone allows for the creation of single-family detached dwelling units on minimum lot sizes of 10,000 square feet. At 13.39 acres (583,157 square feet), this parcel could permit a maximum residential density of 58 single-family homes. However, there are extensive wetlands on approximately 8 acres on the site that will limit maximum development potential. For complete zoning requirements, please refer to Chapter 14, Land Use, of the City Code. f. Rezoning: Higher density zoning that furthers exceptional projects and city goals as outlined in Section III will be considered. For example, the R-3 residential zone allows for Planned Residential Unit Development (PRUD) on properties of 3 acres of more, and a higher maximum residential density of 6,500 square feet per dwelling unit. A PRUD would allow for alternative site layouts, and the ability to avoid impacts to on-site wetlands. g. Condition of the property at the time of disposition: Wetlands present (See Attachment 4). h. Environmental Conditions: Boyle Associates conducted a wetland delineation in July of 2009 and prepared a wetland sketch plan for the City of Portland; 4.53 acres of uplands were identified during their review. During a site visit in October of 2019, Jones Associates confirmed there had been no changes to the wetlands and the wetland delineations done by 2 Boyle Associates were still appropriate to use. The City of Portland reserves the right to establish a conservation easement on the non-developable portions of the parcel. i. Proposers are urged to investigate water sources and utility connection requirements with the Department of Public Works. III CITY GOALS The City’s primary goals for the use of the property are: 1. Developments shall provide mixed income units. All units must be affordable to households earning 60% to 120% of the area median income – which 60% is now $55,800 for a family of four and 120% is now $111,600 for a family of four. Affordable means that the percentage of income a household is charged in rent and other housing expenses including utilities, or must pay in monthly mortgage payments (including real estate taxes, mortgage insurance, condominium/HOA fees, insurance and utilities), does not exceed 30% of a household’s gross income, or other amount established in city regulations that does not vary significantly from this amount. Restrictions on the affordability of units must be in place for a minimum of 30 years for homeownership units, and the longest period allowed by law for rental units. 2. Development of mixed income homeownership or rental housing of excellent building and site design. Design principles should promote efficient use of land to create a development that is compatible with the existing pattern, scale, massing, and materials of the surrounding neighborhood. The development’s buildings shall be designed to meet the City’s Green Building Code. 3. Environmental preservation should be identified to retain a balance between development and conservation of open space important for wildlife, ecological, and environmental values. 4. Rezoning may be considered to support increase housing development opportunities or maximize the number of allowable housing units on the property. The general terms for this real estate transaction include: • Zoning. Rezoning of this property may be considered to increase housing development opportunities or maximize the number of allowable housing units on the property. • Units must be used as the principal residence of the owner/tenant and owner/tenant shall not use the unit for the conduct of business (except for a home occupation allowed under the City of Portland zoning ordinance) or as an investment property. Units shall not be rented for short-term periods of one to thirty days. 3 • The sale or long term lease of the property below fair market value may be considered to support housing development that meets the City’s stated goals. • Alternative Ownership Models. Alternative ownership models that will encourage a mixed income community with long term affordability for the maximum number of units, such as limited equity units, co-housing, cooperative, or a community land trust, may be considered in order to ensure the units affordability over time. • Proposals must outline how they will maintain affordability. • Other City Incentives. Other city financial incentives may be considered to support increase housing development opportunities or maximize the number of allowable housing units on the property. IV PROPOSED SCORING An internal staff Committee will review proposals received, and will apply the following selection criteria in reviewing and scoring the applications. Proposed use to achieve the City of Portland's goals 40 points 1. Market Demand - 25 points a. 25 points - All units meet the City’s income targeting priority noted in Section III.1 b. 20 points - At least 75% of the units meet the City’s income targeting priority noted in Section III.1 c. 15 points - At least 50% of the units meet the City’s income targeting priority noted in Section III.1 d. 0 points - Project does not does not meet the City’s income targeting priority noted in Section III.1 2. Economic diversity – 15 points a. 15 points creates housing options which promote economic diversity in the neighborhood in which the development is located b. 0 points does not promote economic diversity Impact on surrounding neighborhood, including design. 25 points 1. Project Design -- 15 points a. 15 points -- the proposal is consistent with design characteristics b. 10 points – the proposal is an adequate fit with neighborhood characteristics c. 0 points – the design is a significant outlier 2. Amenities and unit design -- 10 points a. 10 points – amenities & unit design are well thought out and appropriate for residents, b. 5 points -- amenities & unit design are adequate, c. 0 points – amenities and unit design raise significant concerns that resident needs will not be adequately addressed Applicant's ability to complete project, including financial feasibility, development team experience, capacity, and timeframe for completion. 35 points 1. Readiness to proceed – 15 points 4 a. 15 points – all projected sources of funding include letters of commitment or interest are projected at terms and conditions consistent with the City’s prior experience with the funder b. 10 points – most projected sources of funding include letters of commitment, letters of interest, or, if no letter is included, are projected at terms and conditions consistent with the City’s prior experience with this funder c. 0 points – one or more sources are projected on terms that are not consistent with the City’s prior experience with the funder and are not documented by letter(s) from funder(s) 2. Track record of development team – 10 points a. 10 points – every development team member has a successful track record with this type of project and at this scale b. 8 points – all but one development team members have a successful track record with this type of project and at this scale; one development team member has relevant experience but at a smaller scale or not of this project type c. 5 points – two development team members, while having relevant experience, are new to this type of project or this scale of development d. 0 points – the development team does not meet the criteria above 3. Current Capacity of development team – 10 points a. 10 points – development team members have exceptional depth of human and financial resources to complete this project b. 8 points - development team members have the human and financial resources to complete this project c. 5 points – development team has a staffing gap in a significant role and a plan to address that gap, OR there are some concerns about the financial resources of the team to move the development forward d. 0 points - the development team does not meet the criteria described above SUMBMISSION INFORMATION Interested parties are asked to submit a concept development (including preliminary drawings) and a brief description of the project, no longer than two pages, to include the number and type of units, occupants (owners/renters) to be served, special features, the impact on the neighborhood and other ways the proposal meets the primary goals of the City. A general project budget with projected funding sources, development timeline, and development team qualifications and financial capabilities is also required. This RFP does not require detailed architectural drawings or development pro formas. Photographs and maps of the site and area are required. a) Developer: Name, address, telephone, fax number of the proposed owner/developer and the name(s) of an alternative contact person(s). b) Proposal: Each proposal submitted must specifically outline the proposed use of the property and any proposed rezoning requests. c) Financial Feasibility: Provide a business plan, which shall include prospective and committed sources of funding, development and operating budgets; a letter from a lending institution 5 indicating the applicant’s ability to finance the projected costs; and provide examples of prior projects that indicate the proven ability to develop a project of similar type and scale from a fiscal perspective. d) Timetable: Provide an overview of how the proposal will be implemented. Include approximate schedule for completion of each element, closing, construction start-up, substantial completion, final completion, and occupancy. Include applications for public or private financing. e) Developer Capacity: Identify the qualifications and experience of the development team for the project including a list of previously completed projects similar to the proposed project. This team may include key staff of the developer, architect, general contractor and future property management. Also, discuss the ability to complete the project including the qualifications of the development team, management plan, experience, capacity, project readiness to proceed, and timeframe for completion. f) Occupancy and Management Plan: Present a plan detailing the ownership structure (condominium, cooperative, etc.), resale restrictions and resale process to ensure mixed income and long-term affordability. g) Purchase Price: Proposed purchase price for the property. h) Copies: Seven (7) copies, with the original so marked, of each proposal shall be submitted. V DISPOSITION INFORMATION After proposals are opened, city staff will make a recommendation to the City Council’s Economic Development Committee (EDC) and the Housing Committee (HC). The EDC and HC will make a recommendation to the City Council. VI OTHER INFORMATION Confidentiality: Proposals received by the City shall become a matter of public record, subject to public inspection, except to the extent, which an applicant designates in writing, proprietary data to be confidential and submits that data under separate cover, such information may be held from public inspection, as provided in Maine law: 5 MRSA Sections 13119-A and 13119-B. VII LEGAL REQUIREMENTS The contract for the disposition of the property will be executed only after review and final approval by the City Council. VIII RESERVATION of RIGHTS The City of Portland reserves the right, at its sole discretion, to award as well as reject any and all proposals for the city-owned property, based on the quality and merits of the proposals received, or when it is determined to be in the public interest to do so. Furthermore, the City may extend deadlines and timeframes, as needed. 6 The City reserves the right to substantiate any proposer’s qualifications, capability to perform, availability, past performance records, and to verify that the proposer is current in its financial obligations to the City. The City of Portland, Maine, reserves the right to waive any informalities in proposals, to accept any proposal or portion thereof, and, to reject any and all proposals, as well as negotiate with the successful proposer(s) should it be in the best in the best interest of the City to do so for a final purchase and sale agreement and ultimate sale or lease of the property. Pursuant to City procurement policy and ordinance, the City is unable to contract with businesses or individuals who are delinquent in their financial obligations to the City. These obligations may include but are not limited to real estate and personal property taxes and sewer user fees. Proposers who are delinquent in their financial obligations to the City must do one of the following: bring the obligation current, negotiate a payment plan with the City’s Treasury office, or agree to an offset, which shall be established by the contract, which shall be issued to the successful proposer March 5, 2020 Matthew F. Fitzgerald Purchasing Manager Attachments: A. Proposal B. Portland Assessor’s Record C. GIS Map D. Wetland Sketch Plan 7 PROPOSAL NOTE: THIS PAGE IS TO BE COMPLETED AND RETURNED The UNDERSIGNED hereby declares that he/she or they are the only person(s), firm or corporation interested in this proposal as principal, which it is made without any connection with any other person(s), firm or corporation submitting a proposal for the same. The UNDERSIGNED hereby declares that they have read and understand all conditions as outlined in the Request for Proposals, and that the proposal is made in accordance with same. The UNDERSIGNED hereby declares that any person(s) employed by the City of Portland, Maine, who has direct or indirect personal or financial interest in this proposal or in any portion of the profits which may be derived therefrom has been identified and the interest disclosed by separate attachment. (Please include in your disclosure any interest which you know of. An example of a direct interest would be a City employee who would be paid to perform services under this proposal. An example of an indirect interest would be a City employee who is related to any officers, employees, principal or shareholders of your firm or to you. If in doubt as to status or interest, please disclose to the extent known). The proposer acknowledges the receipt of Addenda numbered If Applicable COMPANY NAME: (Individual, Partnership, Corporation, Joint Venture) AUTHORIZED SIGNATURE: DATE: (Officer, Authorized Individual or Owner) PRINT NAME & TITLE: ADDRESS: TELEPHONE: E-MAIL: FEDERAL TAX ID #: DUNS #: STATE OF INCORPORATION ________________________________________________ (If incorporated in another State, businesses must be authorized to do business in the State of Maine.) In your organizations preceding completed fiscal year, did the organization receive: (1) 80 percent or more of its annual gross revenues in U.S. federal contracts, subcontracts, loans, grants, subgrants, and/or cooperative agreements; AND (2) $25,000,000 or more in annual gross revenues from U.S. federal contracts, subcontracts, loans, grants, subgrants, and/or cooperative agreements? ☐ Yes ☐ No Does the public have access to information about the compensation of the executives in the organization through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (18 U.S.C. 78m(a), 78o(d) or section 6104 of the Internal Revenue Code of 1986? ☐ Yes ☐ No NOTE: All bids must bear the handwritten signature of a duly authorized member or employee of the organization making the bid. This sheet must be signed and returned with the application package. 8 Attachment B 9 Attachment C 10 Attachment D 11 CITY of PORTLAND, MAINE Request for Proposals for Disposition of City-Owned Property Located at 43 & 91 Douglass Street I. NOTICE AND SPECIFICATIONS The City of Portland, Maine seeks proposals from qualified developers for the creation of residential housing at 43 & 91 Douglass Street. The site is designated on the City of Portland Tax Assessor’s Map as lot CBL 078 C002 & 078 B007. Sealed proposals for the project, including an original, seven (7) copies, and one (1) digital copy, as specified herein, will be received by the Purchasing Office, Room 103, City Hall, 389 Congress Street, Portland, Maine 04101, until (time) p.m., (day), (month, date), 2020, at which time they will be publicly opened. Proposals shall be submitted, and returned in sealed envelopes plainly marked on the outside “Disposition and Development of Property Located at 43 & 91 Douglass Street”. Proposals that are late, unsigned or submitted via fax will not be accepted. Proposals from individuals not registered with the Purchasing Office may be rejected; receipt of this document directly from the City of Portland indicates registration. Should a person receive this Request from a source other than the City, please contact 207-874-8654 to ensure that you are listed as a recipient for this proposal. All questions must be submitted in writing to the Purchasing Office. These may be mailed, hand delivered, faxed to (207) 874-8652 or e-mailed to mff@portlandmaine.gov and be received no later than five (5) business days prior to the opening date. Questions received after this time will not be addressed. Any interpretation, correction, or change of this document will be made only by written addenda. Changes in any other manner will not be binding on the City and proposers should not rely on. Proposers should not have contact with any City staff with regard to this proposal unless to obtain general public information as specified in the document. The disposal of this real estate shall be on the basis of a negotiated proposal, with the City of Portland reserving the right to refuse any and all proposals. All proposers are advised that the property will be sold “as-is” and “where is”, in its existing condition, with no warranties either expressed or implied. The City disclaims any and all responsibility for injury to proposers, their agents or others while examining the property or at any other time. The City will not be responsible for any broker’s commission. Any and all improvements made to said property must be done in accordance with existing City Codes and Ordinances. II GENERAL INFORMATION Summary of Request: The City of Portland is committed to providing housing opportunities and has set a goal to evaluate 1 the use of City-owned property to construct housing. As one-step in accomplishing this goal, the City of Portland will accept proposals for the development of housing on the lot located at 43 & 91 Douglass Street, which currently is a vacant but was the former site of the West School. This request for proposals results from the December 16, 2019 approval by the Portland City Council (Resolve 10-19/20) of the recommendations of the Housing Committee to market the City- owned vacant property located at 43 and 91 Douglass Street. The City of Portland uses the RFP process to ensure that public resources are utilized for maximum public benefit while accomplishing specific objectives and providing fair access to all applicants. Site Information: a. Location: 43 & 91 Douglass Street, as identified in the City of Portland Assessor’s records as lot CBL 078 C002 and 078 B007, in the R-5 zone. The lot includes the former site of the West School. The site for disposition includes a portion of 91 Douglass Street, but not the entire lot (See Attachment 2). b. Existing Conditions: 43 & 91 Douglass Street is located on two parcels totaling XXX acres with frontage on Douglass Street in the Libbytown neighborhood. A right-of-way bisects the two parcels. The surrounding context is predominantly residential with the majority of homes in the area being one and multi-family structures. Dougherty Play Field abuts the property to the north. c. Current use: Vacant lot. d. General Dimensions: 43 Douglass Street (.3981 acres), a ROW and a 2.85-acre portion of 91 Douglass Street, totals [awaiting final survey work]acres or [awaiting final survey work]square feet. e. Current Zoning: R-5. The minimum lot size in the R-5 zone is 6,000 square feet for residential development (single-family and two-family), 9,000 square feet for a multi-plex development (three-family or more), and 2 acres for a planned residential unit development (PRUD). This parcel would allow for residential, multi-family, and PRUD development. The minimum lot area per unit in a PRUD is 3,000 square feet; the maximum units per building is 12 units. At approximately [awaiting final survey work] square feet, the maximum number of residential units that could be developed within a PRUD is 47 units. For complete zoning requirements, please refer to Chapter 14, Land Use, of the City Code. f. Rezoning: Higher density zoning that furthers exceptional projects and other city goals as outlined in Section III may be considered. g. Condition of the property at the time of sale: This parcel is the location of a former city- dump, and later the West School. A natural gas line and gas company easement are located in the right-of-way and the 43 Douglass Street parcel thus precluding development over these sites. A 40’ wide sewer easement is also identified in the unbuildable portion of the site. 2 h. Environmental Conditions: A Phase II Environmental Site Assessment (ESA) has been completed to evaluate current environmental conditions. Based on findings, special soil disposal restrictions may be required. Participation in the Maine DEP Voluntary Response Action Program (VRAP) should be considered. The Phase II ESA Executive Summary is attached (Attachment 4). i. Proposers are urged to investigate water sources and utility connection requirements with the Department of Public Works. III CITY GOALS The City’s primary goals for the use of the property are: 1. Developments shall provide mixed income units. All units must be affordable to households earning 60% to 120% of the area median income (AMI). Currently, 60% AMI for a family of four is $55,800 and 120% AMI for a family of four is $111,600. Affordable means that the percentage of income a household is charged in rent and other housing expenses including utilities, or must pay in monthly mortgage payments (including real estate taxes, mortgage insurance, condominium/HOA fees, insurance and utilities), does not exceed 30% of a household’s gross income, or other amount established in city regulations that does not vary significantly from this amount. Restrictions on the affordability of units must be in place for a minimum of 30 years for homeownership units, and the longest period allowed by law for rental units. 2. Development of mixed income homeownership or rental housing of excellent building and site design. Design principles should promote efficient use of land to create a development that is compatible with the existing pattern, scale, massing, and materials of the surrounding neighborhood. The development’s buildings shall be designed to meet the City’s Green Building Code. 3. Rezoning may be considered to support increase housing development opportunities or maximize the number of allowable housing units on the property. The general terms for this real estate transaction include: • Zoning. Rezoning of this property may be considered to increase housing development opportunities or maximize the number of allowable housing units on the property. • Units must be used as the principal residence of the owner/tenant and owner/tenant shall not use the unit for the conduct of business (except for a home occupation allowed under the City of Portland zoning ordinance) or as an investment property. Units shall not be rented for short-term periods of one to thirty days. 3 • Property Sale Price. The City expects to receive Fair Market Value (FMV”) for the property. • Alternative Ownership Models. Alternative ownership models that will encourage a mixed income community with long term affordability for the maximum number of units, such as limited equity units, co-housing, cooperative, or a community land trust, may be considered in order to ensure the units affordability over time. • Proposals must outline how they will maintain affordability. • Other City Incentives. Other city financial incentives may be considered to support increase housing development opportunities or maximize the number of allowable housing units on the property. IV PROPOSED SCORING An internal staff Committee will review proposals received, and will apply the following selection criteria in reviewing and scoring the applications. Proposed use to achieve the City of Portland's goals 40 points 1. Market Demand - 25 points a. 25 points - All units meet the City’s income targeting priority noted in Section III.1 b. 20 points - At least 75% of the units meet the City’s income targeting priority noted in Section III.1 c. 15 points - At least 50% of the units meet the City’s income targeting priority noted in Section III.1 d. 0 points - Project does not does not meet the City’s income targeting priority noted in Section III.1 2. Economic diversity – 15 points a. 15 points creates housing options which promote economic diversity in the neighborhood in which the development is located b. 0 points does not promote economic diversity Impact on surrounding neighborhood, including design. 25 points 1. Project Design -- 15 points a. 15 points -- the proposal is consistent with design characteristics, b. 10 points – the proposal is an adequate fit with neighborhood characteristics c. 0 points – the design is a significant outlier 2. Amenities and unit design -- 10 points a. 10 points – amenities & unit design are well thought out and appropriate for residents, b. 5 points -- amenities & unit design are adequate, c. 0 points – amenities and unit design raise significant concerns that resident needs will not be adequately addressed Applicant's ability to complete project, including financial feasibility, development team experience, capacity, and timeframe for completion. 35 points 1. Readiness to proceed – 15 points 4 a. 15 points – all projected sources of funding include letters of commitment or interest are projected at terms and conditions consistent with the City’s prior experience with the funder b. 10 points – most projected sources of funding include letters of commitment, letters of interest, or, if no letter is included, are projected at terms and conditions consistent with the City’s prior experience with this funder c. 0 points – one or more sources are projected on terms that are not consistent with the City’s prior experience with the funder and are not documented by letter(s) from funder(s) 2. Track record of development team – 10 points a. 10 points – every development team member has a successful track record with this type of project and at this scale b. 8 points – all but one development team members have a successful track record with this type of project and at this scale; one development team member has relevant experience but at a smaller scale or not of this project type c. 5 points – two development team members, while having relevant experience, are new to this type of project or this scale of development d. 0 points – the development team does not meet the criteria above 3. Current Capacity of development team – 10 points a. 10 points – development team members have exceptional depth of human and financial resources to complete this project b. 8 points - development team members have the human and financial resources to complete this project c. 5 points – development team has a staffing gap in a significant role and a plan to address that gap, OR there are some concerns about the financial resources of the team to move the development forward d. 0 points - the development team does not meet the criteria described above SUBMISSION INFORMATION Interested parties are asked to submit a concept development (including preliminary drawings) and a brief description of the project, no longer than two pages, to include the number and type of units, occupants (owners/renters) to be served, special features, the impact on the neighborhood and other ways the proposal meets the primary goals of the City. A general project budget with projected funding sources, development timeline, and development team qualifications and financial capabilities is also required. This RFP does not require detailed architectural drawings or development pro formas. Photographs and maps of the site and area are required. a) Developer: Name, address, telephone, fax number of the proposed owner/developer and the name(s) of an alternative contact person(s). b) Proposal: Each proposal submitted must specifically outline the proposed use of the property and any proposed rezoning requests. 5 c) Financial Feasibility: Provide a business plan, which shall include prospective and committed sources of funding, development and operating budgets; a letter from a lending institution indicating the applicant’s ability to finance the projected costs; and provide examples of prior projects that indicate the proven ability to develop a project of similar type and scale from a fiscal perspective. d) Timetable: Provide an overview of how the proposal will be implemented. Include approximate schedule for completion of each element, closing, construction start-up, substantial completion, final completion, and occupancy. Include applications for public or private financing. e) Developer Capacity: Identify the qualifications and experience of the development team for the project including a list of previously completed projects similar to the proposed project. This team may include key staff of the developer, architect, general contractor and future property management. Also, discuss the ability to complete the project including the qualifications of the development team, management plan, experience, capacity, project readiness to proceed, and timeframe for completion. f) Occupancy and Management Plan: Present a plan detailing the ownership structure (condominium, cooperative, etc.), resale restrictions and resale process, to ensure mixed income and long-term affordability. g) Purchase Price: Proposed purchase price for the property. h) Copies: Seven (7) copies, with the original so marked, and one (1) digital copy of each proposal shall be submitted. V SALE INFORMATION After proposals are opened, city staff will make a recommendation to the City Council’s Economic Development Committee (EDC) and the Housing Committee (HC). The EDC and HC will make a recommendation to the City Council. VI OTHER INFORMATION Confidentiality: Proposals received by the City shall become a matter of public record, subject to public inspection, except to the extent, which an applicant designates in writing, proprietary data to be confidential and submits that data under separate cover, such information may be held from public inspection, as provided in Maine law: 5 MRSA Sections 13119-A and 13119-B. VII LEGAL REQUIREMENTS The contract for the disposition of the property will be executed only after review and final approval by the City Council. VIII RESERVATION of RIGHTS The City of Portland reserves the right, at its sole discretion, to award as well as reject any and all 6 proposals for the city-owned property, based on the quality and merits of the proposals received, or when it is determined to be in the public interest to do so. Furthermore, the City may extend deadlines and timeframes, as needed. The City reserves the right to substantiate any proposer’s qualifications, capability to perform, availability, past performance records, and to verify that the proposer is current in its financial obligations to the City. The City of Portland, Maine, reserves the right to waive any informalities in proposals, to accept any proposal or portion thereof, and, to reject any and all proposals, as well as negotiate with the successful proposer(s) should it be in the best in the best interest of the City to do so for a final purchase and sale agreement and ultimate sale of the property. Pursuant to City procurement policy and ordinance, the City is unable to contract with businesses or individuals who are delinquent in their financial obligations to the City. These obligations may include but are not limited to real estate and personal property taxes and sewer user fees. Proposers who are delinquent in their financial obligations to the City must do one of the following: bring the obligation current, negotiate a payment plan with the City’s Treasury office, or agree to an offset, which shall be established by the contract, which shall be issued to the successful proposer March 5, 2020 Matthew F. Fitzgerald Purchasing Manager Attachments: A Proposal B Portland Assessor's Record C GIS Map (awaiting final survey work) D Phase II Environmental Site Assessment Executive Summary 7 Attachment A PROPOSAL NOTE: THIS PAGE IS TO BE COMPLETED AND RETURNED The UNDERSIGNED hereby declares that he/she or they are the only person(s), firm or corporation interested in this proposal as principal, which it is made without any connection with any other person(s), firm or corporation submitting a proposal for the same. The UNDERSIGNED hereby declares that they have read and understand all conditions as outlined in the Request for Proposals, and that the proposal is made in accordance with same. The UNDERSIGNED hereby declares that any person(s) employed by the City of Portland, Maine, who has direct or indirect personal or financial interest in this proposal or in any portion of the profits which may be derived therefrom has been identified and the interest disclosed by separate attachment. (Please include in your disclosure any interest which you know of. An example of a direct interest would be a City employee who would be paid to perform services under this proposal. An example of an indirect interest would be a City employee who is related to any officers, employees, principal or shareholders of your firm or to you. If in doubt as to status or interest, please disclose to the extent known). The proposer acknowledges the receipt of Addenda numbered If Applicable COMPANY NAME: (Individual, Partnership, Corporation, Joint Venture) AUTHORIZED SIGNATURE: DATE: (Officer, Authorized Individual or Owner) PRINT NAME & TITLE: ADDRESS: TELEPHONE: E-MAIL: FEDERAL TAX ID #: DUNS #: STATE OF INCORPORATION ________________________________________________ (If incorporated in another State, businesses must be authorized to do business in the State of Maine.) In your organizations preceding completed fiscal year, did the organization receive: (1) 80 percent or more of its annual gross revenues in U.S. federal contracts, subcontracts, loans, grants, subgrants, and/or cooperative agreements; AND (2) $25,000,000 or more in annual gross revenues from U.S. federal contracts, subcontracts, loans, grants, subgrants, and/or cooperative agreements? ☐ Yes ☐ No Does the public have access to information about the compensation of the executives in the organization through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (18 U.S.C. 78m(a), 78o(d) or section 6104 of the Internal Revenue Code of 1986? ☐ Yes ☐ No NOTE: All bids must bear the handwritten signature of a duly authorized member or employee of the organization making the bid. This sheet must be signed and returned with the application package. 8 Attachment B 9 Attachment B 10 Attachment D 11 12 13 14