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HomeMy WebLinkAboutItem #14 Ocoee Crown Point PUD RFP#06-001 Developer Recomm. center of Good!., .,. AGENDA ITEM COVER SHEET Meeting Date: June 6, 2006 Item # l4- Contact Name: Contact Number: Robert Frank, City Manager (407) 905-3100 Reviewed By: Department Director: City Manager: #H/ __ Subjec't: Ocoee Crown Point PUD RFP # 06-001 Developer Recommendation Background Summary: On December 6, 2005, the Mayor and City Commissioners authorized City Staff to advertise a Request for Proposal (RFP) for sale of residential land within the Ocoee Crown Point PUD. This RFP identified numerous design parameters each developer would be required to include in their respective proposals. This ensured that all respondents had an equal opportunity to bid on the project. Over 20 developers picked up the initial RFP packet. A mandatory Pre-Proposal conference was held with the prospective applicants to go over the very detailed design requirements contained within the RFP and to answer any questions regarding an extensive list of due diligence materials provided to each developer. All pertinent RFP response requirements were also addressed to ensure that each respondent would provide the correct materials in the proper format. Based upon a very detailed and exhaustive review of each respondent's RFP proposal, including all additional interviews and site visits, the City Manager and staff were unanimous in their opinion that the Centex proposal offered the best price, character of development and design quality by a clear margin over the other two proposals, with Ryland ranked number two and KB Homes ranked number three. Issue: Should the Mayor and City Commissioners select the top ranked RFP respondent to purchase and develop 75 acres within the Ocoee Crown Point PUD? Recommendations: Based upon the ranking of the top three RFP respondents for consideration by the Mayor and City Commissioners, the City Manager recommends selection of number one ranked Centex Homes as the most qualified firm to carry out the objectives of the City of Ocoee for development of the Crown Point PUD; and further, requests authorization for staff to enter into negotiations with Centex Homes on a binding purchase contract for sale and development of the property. Attachments: None. Financial Impact: Type of Item: (please mark with an "x'J Public Hearing Ordinance First Reading Ordinance Second Reading Resolution Commission Approval X Discussion & Direction For Clerk's DeDt Use: _ Consent Agenda _ Public Hearing ~ Regular Agenda Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney Reviewed by Finance Dept. Reviewed by N/A N/A N/A 2 Mavor S. Scott Vanderarift Commissioners Gary Hood. District 1 Scott Anderson. District 2 Rusty Johnson. District 3 Joel F. Keller. District 4 City Manaaer Robert Frank STAFF REPORT TO: The Honorable Mayor and City Commissioners FROM: Robert Frank, City Manager DATE: May 8, 2006 RE: Ocoee Crown Point PUD RFP # 06-001 Developer Recommendation ISSUE: Should the Mayor and City Commissioners select the top ranked RFP respondent to purchase and develop 75 acres .within the Ocoee Crown Point PUD? BACKGROUND: On December 6, 2005, the Mayor and City Commissioners authorized City Staff to advertise a Request for Proposal (RFP) for sale of residential land within the Ocoee Crown Point PUD. This RFP identified numerous design parameters each developer would be required to include in their respective proposals. This ensured that all respondents had an equal opportunity to bid on the project. In general, the City anticipated that at least 250 residential lots would be developed within the 75 acre parcel, and that certain additional amenities would be included in the proposal such as a park road extension, public community center, and public walking path on Lake Apopka. Designs would conform to Traditional Neighborhood Design, and be evaluated on character of development as well as price. DISCUSSION: Over 20 developers picked up the initial RFP packet. A mandatory Pre-Proposal conference was held with the prospective applicants to go over the very detailed design requirements contained within the RFP and to answer any questions regarding an extensive list of due diligence materials provided to each developer. All pertinent RFP response requirements were also addressed to ensure that each respondent would provide the correct materials in the proper format. During the proposal preparation time-frame, the City issued three addendum packages to clarify questions received from various respondents. Most of this additional information ensured that each developer had all the information necessary to make an accurate submission package. Of most importance, the City extended the due date for proposals by three weeks to ensure there was adequate time to assemble all materials. 1 Proposals were opened on March 7, 2006 at 2:00 PM by the City Purchasing Agent. Only five proposals were received by the required due date. The proposal purchase prices for the 75 acre tract were read aloud. The results were as follows: Developer Centex Ryland KB Home Cambridge Tallman Development Purchase Price $12,500,000 $12,194,000 $12,150,000 $10,134,000 $ 5,085,000 Even though there were some variations in the number of lots each respondent thought could be developed, the above purchase prices reflect the minimum amount to be paid to the City regardless of the final lot count. After the Final Subdivision Plan is approved, there may be some adjustment upward to this number based upon a per-lot amount, but these minimum bid numbers are the truest reflection of relative price to be paid to the City for the land. Copies of each RFP proposal were delivered to the City Manager, the Assistant City Manager, the Community Development Director, and the City Engineer for review. After initial review and discussion of the five proposals, the City Manager directed the Community Development Director to undertake a more exhaustive review of the proposals and present the findings in a matrix chart for easier comparison. Another staff meeting was held to review all pertinent data, and it was determined that staff would interview the top three respondents, Centex, Ryland and KB Home. All three top ranked respondents were scheduled for interviews in the City Manager's office, and each had an opportunity to answer questions, respond to requests for additional information and present additional materials which better clarified their proposals. Staff clarified all items of information between each proposal to ensure that all developers were evaluated fairly. Significant emphasis was placed on the quality of each proposed development and the architecture of the residences to be built on the property. In order to see first hand examples of each developer's projects, the City Manager, Assistant City Manager, and Community Development Director visited various NTD projects in the metro area to better visualize the character and architecture produced by each builder. These locations were picked by each respondent, although it was understood that every developer proposed somewhat higher quality development in the Crown Point PUD than what was represented in the selected projects staff visited. Based upon a very detailed and exhaustive review of each respondent's RFP proposal, including all additional interviews and site visits, the City Manager and staff were unanimous in their opinion that the Centex proposal offered the best price, character of development and design quality by a clear margin over the other two proposals, with Ryland ranked number two and KB Homes ranked number three. The Centex proposal portrayed a unique St. Augustine type of architecture with attractive courtyard settings that blended traditional design with contemporary outdoor lifestyles. Layout of the project fit most easily into the existing master plan for the Crown Point PUD and emphasized an organic pattern of roads and lots combined with alleyways and dwellings fronting on school and park sites. The proposal also offered the highest price for the property, and the average prices for dwelling units are anticipated to be in the highest range even with a wide variety of house sizes and styles. RECOMMENDATION: Based upon the ranking of the top three RFP respondents for consideration by the Mayor and City Commissioners, the City Manager recommends selection of number one ranked Centex Homes as the most qualified firm to carry out the objectives of the City of Ocoee for development of the Crown Point PUD; and further, requests authorization for staff to enter into negotiations with Centex Homes on a binding purchase contract for sale and development of the property. 2