HomeMy WebLinkAboutRedevelopment Commission 3.9.23 RFP
Redevelopment Commission
3/9/23
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Proposal #1 Advantix
Goal: 50 lease purchase townhomes of affordable to low/moderate income housing
Would apply for Low Income Housing Tax Credit through the State
Product: Single Family houses, duplexes, triplexes
Property: Multiple RFP sites as well as other City owned properties
Requested:
$750,000 in funding and donation of land.
10% match from City to receive full points total on LIHTC application
Total construction cost: $10,132,500
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Pros
Large numbers of units and large-scale investment
Low Income housing with path to ownership
Uses multiple RDC owned properties for productive uses
Experienced developer but new to SB
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Cons
Dependent on LIHTC for construction
All low-income restricted housing, no mix of market rate
Sites are not used to full potential
Significant City investment required
Housing types more suited for neighborhoods
Not all properties requested owned by RDC
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Proposal #2 Allen Edwin Homes
Goal: 10 rental single family homes cottage court style
20% rents affordable up to 80% AMI and 80% rents affordable up to 120% AMI
Property: Northern section of Marion/LWW
Requested:
$750,000 in City funding (provided through separate RFP process)
Purchase price $1
Total Construction Cost: $2,200,000
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Pros
Mix of low income and workforce housing all with income restrictions
Uses a challenging site with an innovative design (cottage court)
Investment from City limited to land and already designated RFP
Experienced developer working on infill development for the first time
Over $2 million in investment in a neighborhood
No 3rd Party required for completion
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Cons
Only uses half of the LWW/Marion site
First time developer for infill projects
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Proposal #3 MSR DEV & JONESBOROR INVESTMENT
Goal: 24-36 unit senior housing development
Would apply for Low Income Housing Tax Credit through the State
Rents at 30%, 50%, 60% AMI
Property: William and LaSalle
Requested:
Purchase price $25,000
City contribution of $50,000
Tax Abatement
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Pros
Senior Housing project
Adequately uses the proposed site
Minimal City investment requested
New developer to the area
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Cons
Dependent on LIHTC for construction
No track record of wining LIHTC
Request does not seem to meet LIHTC goals
Requires purchase of non-City owned property
Long timeline, 30 month until completion
Developer has not built residential
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Proposal #4 Progressus Development Group
Goal: Proposes to review sites on individual basis to determine feasibility
Identify highest and best use for each site
Would present development options to City for consideration
8-month process
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Pros
Outside group expressing interest in SB development
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Cons
Did not respond to specifics of RFP
No real proposal of building specifics
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Proposal #5 South Bend Heritage
Goal: Three story “mansion house” containing 6 apartments
2 income restricted affordable three-bedroom, 3 two-bedroom market rate and 1 one-bedroom market rate
Property: Washington/Taylor
Request: $1 property
$750,000 from financial RFP
Timeline: Complete project 17-18 months
Investment: $1.5 million
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Pros
Project would fit with character of the neighborhood
Mix of affordable and market rate units
Proven developer with track record of finishing projects
Using City idea / maximizing site potential
New design type for the City
No 3rd party required for project success
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Cons
Units are permanent rental
Relatively small project
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Recommendations
Staff recommends pursuing purchase agreements with both Allen Edwin & South Bend Heritage
Staff is working with Advantix to find alternative sites for the LIHTC 2023
Staff will contact both MSR and Progressus for further conversations
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