Affordable Housing Development (aka The Pearl) at 500 block of Sierra Avenue.pdf

CITY OF SOLANA BEACH FAX (858) 792-6513 / (858) 755-1782

635 SOUTH HIGHWAY 101 • SOLANA BEACH • CALIFORNIA 92075-2215 • (858) 720-2400

REQUEST FOR PROPOSALS

Affordable Housing Development (aka The Pearl) at 500 block of Sierra Avenue, Solana Beach, CA 92075

APN 298-211-81-00

INTRODUCTION

The City of Solana Beach (“City”) is seeking an affordable housing developer partner (“Proposers”) to redevelop a fully entitled, 12,920 square foot mixed-use development project (Project). The Project would include 10 very low-income dwelling units, 53 subterranean parking spaces, 795 square feet of commercial office space and associated parking located in the 500 block of South Sierra Avenue, Solana Beach, CA 92075. The City is willing to enter into a long-term ground lease (minimum of 55 years/maximum 99 years) for $1 per year as well as provide some financial support for the construction of the Project.

This Project to build affordable housing must be consistent with the approved and entitled affordable housing project as designed in Attachment 1. All proposers are strongly encouraged to review and become familiar with the City Council and Coastal Commission approved project plans and permits.

KEY ELEMENTS OF THE PROJECT

1. The property is owned by the City of Solana Beach;

2. The City will enter into a long-term ground lease (55 to 99 years at $1 per year) with the winning developer;

3. The project has been fully entitled by the City and will process time extensions for the Coastal Development Permit from the California Coastal Commission;

4. An Exclusive Negotiation Agreement (ENA) will be considered by the City Council to establish procedures and standards for development of the Project through a Disposition, Development and Loan Agreement (DDLA);

5. The DDLA may include, but is not limited to, ground lease terms, loan terms, financing plan, gap financing by the City for construction, bond requirements to assure construction of the Project, and a development schedule with deadlines by which the Developer must satisfy conditions;

Affordable Housing Development RFP June 2026

6. The 10 units in the Project will be rented as affordable units for very low-income households (as defined by California Health and Safety Code Sections 50105) and will include the following;

a. Three one-bedroom units, all located on Level 2, ranging in size from 505 to 515 square feet.

b. Three two-bedroom units, all designed as townhouse style units, located on Levels 2 and 3, ranging in size from 918 to 1,032 square feet.

c. Three three-bedroom units, one of which is located on Level 2 with the other two units located on Level 3, ranging in size from 1,002 to 1,232 square feet.

d. One 1,383 square foot four-bedroom unit, located on Level 2.

7. All of the units to be constructed will provide housing affordable to very-low income households at affordable rents, and the City will record a regulatory agreement and declaration of restrictive covenants (Regulatory Agreement) against the leasehold interest in the Property to require all ten units to be used exclusively as affordable housing for very-low income households for a 55-year period;

8. The project will include 53 parking spaces in structured parking as follows;

a. Level 1: Twenty-two public parking spaces, including an ADA-accessible parking space that counts toward replacing public parking; an ADA-accessible parking space that counts toward required parking for the commercial use; one motorcycle space; and four bicycle spaces.

b. Level 0 (Basement): Nine public parking spaces, three spaces for the commercial use, and 18 spaces for the residential use, including one ADA-accessible parking space that counts toward required parking for the residential use.

c. Compliance with Chapter 11B of the California Building Code and Chapters 4 and 5 of the California Green Building Code regarding ADA accessible parking spaces and Electric Vehicle charging stations.

9. The Project will be limited to a maximum building height of thirty-five (35) feet from the lower of pre-existing or finished grade;

10. The project proposed 5,100 cubic yards of excavation of potential beach-quality soil, all to be exported and maybe placed on Solana Beach beaches consistent with the City’s Sand Compatible Opportunistic Use Program (SCOUP);

11. The residential dwelling units will be planned, built, managed, operated and maintained by the Proposer or a separate third party;

12. This is a rental project and is not for-sale dwelling units; and,

13. The Project will implement the City’s greenhouse gas (GHG) emissions reduction strategies in accordance with the City’s Climate Action Plan, including participation in the City’s Community Choice Aggregation “CEA Green” product, or other equivalent if CEA Green product is no longer offered or available.

TECHNICAL SPECIFICATIONS FOR SUBMITTALS

The Responses to this RFP shall include the following elements:

1. Cover letter (one page maximum)

2. Description of approach to development (three pages maximum)

3. Experience of similar work or related relevant projects, preferably within California

4. Preliminary cost proposal and project proforma, including estimated request for City financial support

5. Preliminary project timeline and construction schedule

6. Summary of qualifications (three pages maximum)

7. Résumés of key personnel (one page per person)

8. Three references (one page maximum)

Respondents shall provide their understanding of the fully entitled project, identify proposed team members, and explain the responsibilities of team members, including who will be the lead staff person responsible for general project management, rental management, and day-to-day coordination with the City. Proposals should include sufficient detail to allow a thorough evaluation and comparative analysis of the project and the project team.

EVALUATION PROCESS AND CRITERIA

All proposals will be evaluated utilizing the criteria below. The City may hold oral interviews with top-ranked proposers. If an agreement cannot be negotiated with the top-ranked team, negotiations may be initiated with the next available respondent. Nothing herein requires the City to award a contract and the City retains the right to use its independent judgment to evaluate the qualifications of the proposal and can reject any or all proposals.

Submittals will be evaluated according to the following criteria:

1. Satisfaction of the requirements set forth in the section of this Request for Proposals entitled “Key Assumptions”.

2. Project Team: the submittal will be evaluated on the team’s ability to meet the City’s needs and the ability to commit the resources and time necessary to complete the project.

3. Experience on Similar Projects: The team will be evaluated on experience with similar work in California, relevance of experience, and level of client satisfaction from list of references provided. Please include discussion of experience working with public agencies.

4. Timeline and Budget: The submittals will be evaluated on the proposed timeline and preliminary project proforma.

5. Interviews: Interviews will likely be conducted as a part of the evaluation process.

CONCLUSION

The City of Solana Beach desires to implement its affordable housing obligations outlined in the City’s Housing Element of the General Plan. The city is interested in partnering with an affordable housing developer to make this happen.

The submittal deadline for this RFP is October 1, 2026. Interviews will be scheduled with top responsive proposers following review of submitted materials. Please forward all inquiries to Corey Andrews, City Planner, at 858-720-2447 or via email at candrews@cityofsolanabeach.ca.gov. Any questions must be submitted by email to Corey Andrews by August 7, 2026. Responses to question will be provided by August 28, 2026 and will be provided to everyone who received this RFP. Attachments 3 through 9 are available on the City’s website using the following link https://cityofsolanabeach.ca.gov/en/rfps-construction-bids.

Proposals must be received on or before October 1, 2026, at 5:00pm. Proposals shall be submitted to:

City of Solana Beach c/o Corey Andrews, City Planner 635 South Highway 101 Solana Beach, CA 92075

Thank you in advance for your Proposal.

Alyssa Muto City Manager

Attachments:

1. Site Aerial Map

2. Assessor Map

3. SB Construction Drawings

4. SB Drainage Study

5. SB Geotech Report

6. SB Landscape Documentation Package

7. SB Landscape Drawings

8. SB SWMP

9. SB Title 24 Report

ATTACHMENT 1

AFFORDABLE HOUSING PROJECT SITE AERIAL

APN 298-211-81-00

ATTACHMENT 2

ASSESSOR MAP