BIDS for Community Assistance Center on Record Street Revealed
Affordable housing, office space for non-profits, shipping container complex of bars and restaurants, and ‘workforce’ housing are all on the table for the August 14 City Council Meeting, where council members could decide which proposal to move forward with, giving staff direction on the matter. Let’s get into it!
PROPOSAL ONE
Affordable Housing by Ulysses Development Group.
Offer Price: 15 yr. Seller Note for $3.4M which is the full appraised value, to make payments to the city for that price over 15 years.
The project: 136-unit affordable housing development at or below 60% AMI.
UDG is proposing to demolish the two existing structures on the property, and seek to maximize the number of affordable housing units on the property by constructing a new, 136-unit multifamily community. Residential units will range from one to four bedrooms in size, allowing the property to serve larger family households in the community.
In addition, 100% of the units at the property will be restricted to residents earning 60% or less of the area median income. The new community proposed by UDG will consist of a single, five (5) story, garden style multifamily building. The property will feature a furnished clubroom, on-site management leasing offices, outdoor green space and seating pavilion, a rooftop amenity deck overlooking downtown Reno, and complimentary surface parking. The proposed property will also feature multiple safety systems to ensure the security of the proposed community, including a controlled access system, a camera monitoring system, and ample site lighting. n addition to the common area amenity features,
UDG is proposing to include a 2,096 square foot space dedicated to the Community Services Agency of Reno, ("CSA") a local non profit organization active in the community. For over fifty years, CSA has been seeking to empower individuals and families to become self-sufficient. The proposed affordable housing community will be financed with federal low-income housing tax credits and tax-exempt bonds, allocated by the Nevada Housing Division.
The federal tax credits are expected to be purchased by US Bank, who will act as the tax credit equity investor for the development. Additional project sources of financing will include construction and permanent financing provided by JP Morgan Chase, and GAHP loan funds provided by the Nevada Housing Division.This company has completed many affordable housing projects across the country. I couldn’t actually find a timeline for beginning or finishing the project in their 163-page RFP submission.
PROPOSAL TWO
Non-profit office space by Marmot Properties
Offer price: $1 million
Their for the 315-335 Record Street property is to repurpose the existing structures into highquality, Class A serviced office spaces and lease them at 50% of market rate rent. These spaces will cater to non-profits and public-benefiting entities, offering them affordable, modern, and functional office environments. The building will be equipped with all necessary amenities, including elevators, high-speed internet, and shared conference facilities, to ensure that our tenants can operate efficiently and comfortably.
Marmot Properties is one of the only local developers who submitted a bid for the project, and has a sizeable portfolio of completed apartment buildings and residential projects including 307 Pine Street, 235 Lake Street (Sante Fe building), 120 Court Street, the entire ground floor of 100 N Arlington (Arlington Towers). They are also one of the only developers who want to keep the existing structures and renovate them, rather than demolish them. They will retain the existing height, size, and design of the building while performing a full gut remodel to create modern, efficient office spaces. Conceptual elevations and site plans will be provided to illustrate the proposed interior layout and functionality. They expect the permitting process ot take four months and construction 12 months. Renovating it into affordable office space will also support the surrounding businesses as well.
PROPOSAL THREE
Workforce Housing
Baxter Construction – 118-unit mixed-income development. 90% workforce housing at 80% AMI, and 10% affordable housing at 60% AMI. Offer Price: $600,000
Baxter Construction is proposing a 118-unit mixed-income property with a central courtyard and are offering $600,000 for the CAC Center. They would demolish the existing structure to build the apartment building, at a projected cost of $24 million. The project would be four stories tall.
18% of the units would be priced to be attainable for individuals earning $52,000 annually, 83% of the units would be priced to be attainable for individuals making $72,000 a year, and 10% or approximately 11 units of the 118 would be classified as ‘workforce housing’ and aimed at those earning $41,600 a year. Their project timeline indicates they would finalize the purchase Sept 2024, go through a year-long permitting process through August 2025, and complete construction and begin leasing units August 2027.
PROPOSAL FOUR
Blocks
This proposal only submitted a mission statement with no price offer. Their mission statement states “The Blocks plan is to build an urban "street" themed container complex and lease the individual containers to local restaurants, bars, micro-breweries, and retail stores, empowering them to establish satellite locations within the complex while maintaining the essence of the underground nature of Reno. The Blocks aims to revolutionize urban experiences by integrating cutting-edge technology with an immersive environment all while maintaining an accessible budget that caters to a diverse range of demographics. Featuring a fully LED-screened ceiling, this innovative venue will offer a diverse range of experiences year-round, distinguishing it from seasonal establishments like The Eddy. Imagine combining the vibrant atmosphere of The Eddy with the immersive experiences of Las Vegas' Sphere: daytime beach parties in winter, starlit skies during storms, live entertainment featuring art, music, sports, and more, all enhanced by powerful projections and limitless creativity. The Blocks will transition seamlessly from a family-friendly dining destination by day to an immersive event space on nights and weekends.”
How were they rated?
Selection Committee: The review and Selection Committee consisted of five members selected by the City Manager's Office. The Selection Committee evaluated the short-listed Proposals and measured each Respondent’s response against the selection content set forth in the table below, resulting in a numerical score for each Response. There are a total of 100 points available in the categories listed.
Project Scoring Summary
Ulysses - 404
Baxter - 409
Marmot - 214
The Blocks - 19
Based on those scores, staff is recommending the council go with the Baxter proposal. I'm not sure how any of them got above 100 points with the scoring mechanism outlined in the staff report, there must be additional points available for other criteria I missed.
My thoughts
The Baxter and Ulyssess proposals were very closely tied, with Marmot coming in third.
My personal favorite is probably either the Marmot proposal, only because it’s a local developer with local experience in Reno, the public seems to prefer local over out-of-state developers, plus they had the highest immediate offer price of the four, and the Ulysses proposal because the entire project is attainable housing. What is your favorite proposal of these?