Ambassador_West_Development_(Addendum_#1_Revision).pdf

REQUEST FOR INFORMATION

RFI FY25-086-10 (MBT)

AMBASSADOR WEST DEVELOPMENT

CITY OF PHOENIX

HOUSING

251 W WASHINGTON ST.

PHOENIX, AZ

85003

RELEASE DATE: May 23, 2025

DEADLINE FOR QUESTIONS: June 27, 2025

RESPONSE DEADLINE: July 25, 2025, 5:00 pm

City of Phoenix

REQUEST FOR INFORMATION

RFI FY25-086-10 (MBT)

Ambassador West Development

1. INTRODUCTION

2. INSTRUCTIONS

3. SCOPE OF WORK

4. EVALUATION PROCESS

5. STANDARD TERMS AND CONDITIONS

6. SPECIAL TERMS AND CONDITIONS

7. DEFENSE AND INDEMNIFICATION

8. INSURANCE REQUIREMENTS

9. SUBMITTALS

10. PRICING PROPOSAL

Attachments:

A - EXHIBIT_A

B - EXHIBIT_B

C - EXHIBIT_C

D - EXHIBIT_D

E - EXHIBIT_E

Request For Information #RFI FY25-086-10 (MBT) Title: Ambassador West Development

1. Introduction

1.1. Summary

The City of Phoenix (“City”) through its Housing Department (“HD”) is seeking creative concepts for future development of City-owned parcels generally located at 345 North 5th Avenue, Phoenix, AZ 85003 (“Site”). Responses to this Request for Information (“RFI”) will be used to gather information on what parameters to incorporate into a future release of a Request for

Proposal (“RFP”).

This RFI is issued as a means of discovery and information gathering for the development of an

RFP for the redevelopment of Ambassador West Apartments, located at 345 North 5th Avenue, Phoenix, Arizona 85003.

The RFI is for planning purposes only and should not be construed as a solicitation nor should it be construed as an obligation on the part of the City. This RFI should not be construed as a means to pre-qualify Respondents for a future RFP. This is not a formal solicitation, but a request for interested parties to provide information as specified herein. Participation in this RFI is voluntary.

1.2. Background

A. The Site consists primarily of an existing City-owned affordable housing property, Ambassador West Apartments. The Ambassador West Apartments are located on both sides of 5th Avenue. There are two additional adjacent vacant parcels to the south. In total there are approximately 2.13 gross acres available for development. See Exhibit A for the Site Map and full list of addresses and parcel numbers. The City is the current owner. The Site falls within the Central City Village, the Van Buren Character Area of the

Downtown Code, and is currently zoned DTC-Van Buren. See Exhibit B for Downtown

Code height and density maps.

B. The City is seeking to address a critical need for affordable and mixed-income housing in Phoenix. The Housing Phoenix Plan (“HPP”) was adopted by the Mayor and City

Council in June 2020, and it identifies the housing gaps and needs in our community.

The HPP set the goal of creating or preserving 50,000 homes by 2030 and recommended nine policy initiatives to explore. Initiative 3 focuses on the redevelopment of City-owned land with mixed-income housing, and accordingly, Mayor and City Council approved a list of City-owned parcels for future affordable housing, including this Site.

C. The HD provides quality affordable housing and a pathway to self-sufficiency for low-to-moderate income families, seniors, and people with disabilities. The HD programs provide public housing, Housing Choice vouchers, affordable rental apartments, and single-family homes to more than 35,000 area residents. This includes partnering with non-profit and for-profit community organizations on the preservation and development of affordable housing units.

https://www.phoenix.gov/housing/plan

1.3. Contact Information

Joseph MacEwan

Housing Manager

251 W Washington St

4th Floor

Phoenix, AZ 85003

Email: joseph.macewan@phoenix.gov

Phone: (602) 256-4208

Department:

Housing

1.4. Timeline

All times are Local Arizona Time

City reserves the right to change dates and/or locations as necessary. All times are local

Phoenix time.

RFI Posted: May 23, 2025

Site Tour June 13, 2025, 10:30am

345 North 5th Avenue, Phoenix, AZ 85003

RFI Inquires Due Date: June 27, 2025, 5:00pm

RFI Submittal Due Date: July 25, 2025, 5:00pm mailto:joseph.macewan@phoenix.gov tel:(602)256-4208

2. Scope of Work

2.1. Intent

A. The City desires to develop a visionary and transformative multifamily rental housing project that contributes to a thriving community. Located within Downtown Phoenix, the

Site benefits from significant zoning entitlements and presents a rare opportunity to reimagine affordable housing.

B. The City intends to develop the Site with a Co-Development partner. Responses should not only look to replace the existing 102 affordable units, but also introduce a new mixed-income, mixed-use development that reflects the City’s ambitious goals. The RFI seeks to understand what is possible, and how best to position this Site in a future RFP to attract a strong co-development partner. A RFP is intended to be released in late

2025 or 2026, depending on responses received and will include the City’s required co-development terms.

2.2. RFI Purpose

Responses to this RFI may be used to inform the issuance of an RFP and what types of development elements the market will support.

Through responses to this RFI, the City hopes to learn:

o Which developers are interested in developing this Site and what creative concepts they propose.

o The feasibility and potential of a mixed-income, mixed-use development, including likely income levels served, target population(s), unit sizes, and site amenities.

o How to maximize the entitlement on the Site, and effectively phase the project (e.g.

first develop the vacant parcel and western parcel(s) first).

o The proposed financing structure developers would use to make the project feasible, including any City assistance—financial, gap financing, or non-monetary—needed and the anticipated timeline. The length of affordability and ground lease terms.

o How the development could benefit the surrounding neighborhood and the City overall, including economic impacts (job creation), as well as community-serving features such as sustainability, public art, etc.

2.3. Ambassador West Apartments

There are currently 102 affordable units at Ambassador West Apartments, with 101 of the units being 1-bedroom 1-bathroom units and one 2-bedroom 2-bathroom unit. A total of 50 units are in the building east of 5th Avenue, and 52 units in the building west of 5th Avenue.

The intent of a future redevelopment is to demolish the existing property, and at a minimum, replace the 102 affordable units with a new affordable development. Responses must include a relocation plan for the existing residents.

Current rents for the 1-bedroom units range from approximately $960 to $1,400 per month. The

2-bedroom unit range is approximately $1,200 to $1,700 per month.

There are currently 76 active parking spaces at Ambassador West Apartments. A total of 28 spaces are located on the east side of 5th Avenue, and 48 are located on the west side of 5th

Avenue. There is additional underground parking not being utilized.

Please be sure to review the minimum parking requirements under the Downtown Code.

Redevelopment of the Site should not include surface parking. Responses should include details on the structured or podium parking to be provided, as requested in the questionnaire.

A. Relocation Plan:

As noted earlier, and in the questionnaire below, responses must include information on a relocation plan for the existing residents.

At this time, it is the City’s desire to be responsible for the relocation of residents, at the future developer’s expense.

At a minimum, the following information should be included in responses:

• Overall relocation steps

• Estimated total cost for relocation and the funding source

• Schedule/Timeline and notices to residents

• Social services (e.g. onsite relocation staff) provided

• Temporary or permanent relocation

2.4. Site Context

Downtown Phoenix is the City’s hub for business, culture, education, and innovation. It has experienced significant growth in recent years, with over 10 million square feet of development added since 2015 and more than 8,100 new residential units delivered—along with 3,100 more currently under construction. The area is anchored by major sports and entertainment venues, including those for the Phoenix Suns, Mercury, and Diamondbacks, and features a vibrant arts scene with over 150 murals, 200+ restaurants and bars, and 14 live music venues. Downtown also hosts a strong educational presence, with campuses from Arizona State University, the

University of Arizona, and Northern Arizona University supporting a dynamic and youthful community. This concentration of amenities and investment positions Downtown Phoenix as a thriving and evolving urban core.

A. Quarter Section Map

See Exhibit C for a quarter section map from the Street Transportation Department depicting right-of-way adjacent to the Site.

B. Water and Sewer Infrastructure

An existing conditions review of the water and sewer infrastructure by the Water

Services Department (“WSD”) has been completed. Please see Exhibit D for the full list of water and sewer stipulations as provided by the WSD.

C. Zoning

The Site is zoned Downtown Code and located in the Van Buren Character Area. The intent of the Van Buren character area is to establish a dense, vibrant, urban mixed-use area that is a center for commerce and high-rise urban living. More information on the

Downtown Code and Van Buren character area can be found in Chapter 12 of the

Phoenix Zoning Ordinance (https://phoenix.municipal.codes/ZO/12 ).Chapter 12 regulating maps for maximum building height and maximum density maps are included in Exhibit B or accessed through Section 1202 of the Zoning Ordinance.

• Maximum height: 575 feet

• Maximum density: 218 dwelling units per acre

D. Census Tract DesignationsThe Site is located in the following census tract:

04013113100.This census tract is a Qualified Census Tract and is located within an

Opportunity Zone.For more information about Opportunity Zones, visit https://www.azcommerce.com/arizona-opportunity-zones/.

2.5. Affordability/Rent Requirements

Affordable Housing units are made available to households with income levels not to exceed

80% AMI, as defined annually by the U.S. Department of Housing and Urban Development

(“HUD”). Workforce units are defined as targeting households from 81 to 120% AMI, and Market

Rate units are defined as targeting households above 120% AMI. See Exhibit E for the 2025

HUD Income Limits.

Visit the following link for more info: https://www.huduser.gov/portal/datasets/il.html.

Affordable and workforce housing requirements will be secured through a Declaration of

Affirmative Land Use Restrictive Covenant (“LURA”). The LURA will have a term of 40 years or the duration of the lease term, whichever is longer.

In 2024, the City released an updated Housing Needs Assessment:

https://www.phoenix.gov/content/dam/phoenix/housingsite/documents/housing-phx-plan/hou_needs_assessment.pdf to provide a current evaluation of the housing market. It identified the greatest gap of rental housing exists for Phoenix households at or below 50% AMI.

The City will look to address this need with a future development of this Site.

The City will use responses from this RFI to help determine what affordability requirements to include in a future RFP. The City’s expectation is that a minimum of 50% of the total units, across all phases, must be offered at 80% AMI and below.

2.6. Ground Lease

The City will execute a ground lease with the successful Proposer of a future RFP for a minimum period of 40 years.

The terms of the ground lease will be included in the future RFP and will include a right of first refusal option for the City to acquire the improvements.

https://phoenix.municipal.codes/ZO/12 https://phoenix.municipal.codes/ZO/) https://www.azcommerce.com/arizona-opportunity-zones/ https://www.huduser.gov/portal/datasets/il.html https://www.phoenix.gov/content/dam/phoenix/housingsite/documents/housing-phx-plan/hou_needs_assessment.pdf https://www.phoenix.gov/content/dam/phoenix/housingsite/documents/housing-phx-plan/hou_needs_assessment.pdf

Submissions to this RFI are encouraged to include suggestions on the terms of the ground lease, such as least rate adjustments, duration, terms of sale to the City, etc.

2.7. Requested City Assistance

The City is also seeking input regarding any assistance needed from the City to develop this

Site. Currently, there is no identified City funding for the development of this Site, however the

HD may consider providing gap financing, allocating Project Based Vouchers (PBVs) and/or

Public Housing Operating Subsidy for the development.

The proposed project can contemplate utilizing PBVs or Public Housing Operating Subsidy, which could have the potential of being converted to Section 8 rental assistance through the

Rental Assistance Demonstration (RAD) program. Details on assumptions for utilization of these mechanisms should be provided.

The City is open to considering unique partnerships and funding sources. Suggestions should/can be provided in a RFI submission.

Responses to this RFI will potentially shape a future solicitation for the development of the Site.

3. Submittal Requirements

An electronic PDF copy of the material shall be submitted following the subsequent instructions and questionnaire. The RFI submission shall be no more than thirty (30) pages, double sided plus a one-page cover letter. Pages that have photos, charts and graphs will count towards the maximum number of pages. Uploaded information should refer to the question number that it corresponds with.

The response shall include:

• A one-page cover letter prepared on the company’s letterhead and signed by an authorized employee of the company. Provide primary contact information and contact person’s telephone number, e-mail address, and company webpage. A brief summary shall be included in the cover letter that provides information on the company’s background and expertise as it relates to this RFI. (This sheet will not be included in the page count.)

4. Instructions to Vendor

4.1. PREPARATION OF RESPONSE

It is the responsibility of all Respondents to examine the entire RFI and seek clarification of any requirement that may be unclear and to check all responses for accuracy before submitting.

The City does not reimburse the cost of developing, presenting or providing any response to this

RFI. Responses submitted for consideration should be prepared simply and economically, providing adequate information in a straightforward and concise manner. The Respondent is responsible for all costs incurred in responding to this RFI. All materials and documents submitted in response to this RFI become the property of the City and will not be returned.

4.2. SUBMISSION OF INFORMATION

Responses must be in possession of the Department on or prior to the exact time and date indicated in the Schedule of Events. Late submittals may not be considered. The prevailing clock will be the City Department’s clock.

Responses should be submitted electronically via the City’s e-Procurement Portal by clicking on

“Draft Response” via https://procurement.opengov.com/portal/phoenix/projects/141461.

Responses that are unable to submit electronically should contact the Procurement Officer to discuss the logistics of hard copy submittals. Respondent must be registered with OpenGov by signing up via https://procurement.opengov.com/signup. Vendor training guides can be found at: https://opengov.my.site.com/support/s/article/ca6d1285-1e48-4a21-bb0d-715edb7794ed

It is the responsibility of the Respondent to ensure that the Response is timely and to confirm that there are no technical reasons that any Response submitted electronically may be delayed.

The date and time on the upload as received/stamped by the City’s e-Procurement Portal will provide proof of submission and verification whether the Response was received on or prior to the exact time and date indicated in the Schedule of Events.

Please DO NOT submit links to Google Docs, Dropbox Paper, or similar services.

4.3. WITHDRAWAL OF SUBMITTAL

At any time prior to the solicitation due date and time, a Respondent (or designated representative) may withdraw the Response by clicking “Unsubmit Response” on the

Respondent submission via the City’s e-Procurement Portal.

4.4. INQUIRIES

All questions that arise relating to this solicitation should be directed via City’s OpenGov e-

Procurement Portal and must be received by the due date indicated in the Schedule of Events.

The City will not consider questions received after the deadline. All questions concerning or issues related to this solicitation must be presented in writing.

The Procurement Officer will answer written inquiries in an addendum and publish any addenda on the City’s OpenGov e-Procurement Portal.

https://procurement.opengov.com/portal/phoenix/projects/141461 https://procurement.opengov.com/signup https://opengov.my.site.com/support/s/article/ca6d1285-1e48-4a21-bb0d-715edb7794ed

4.5. PUBLIC RECORD

All responses to this RFI shall become the property of the City and become a matter of public record available for review pursuant to Arizona State law.

The City is not requesting confidential or proprietary information in the responses. All materials submitted in response to this RFI are the property of the City and become a matter of public record available for review pursuant to Arizona law. Each developer must conspicuously mark each response page that contains information the developer deems confidential or proprietary

(collectively Proprietary Information). If the City receives a request to review or disclose

Proprietary Information, the City will notify the affected developer in writing. An affected developer has seven calendar days from the date of the City’s notice to obtain and deliver to the

City a court order preventing such disclosure.

4.6. PRESENTATIONS

A. Respondents may be invited to present their concept to activate the Site with the City.

B. The City will not reimburse costs associated with presenting.

5. Vendor Questionnaire

1. Developer Description Please tell us about your development company’s experience with projects similar to your suggested concept and/or projects in areas similar to the Site neighborhood.

2. Concept to Activate the Site Please describe the concept for this Site. Include information about different uses, the intensity and density, and why this concept is right for this Site (i.e. maximizing entitlements). Provide details regarding affordable, workforce, and market rate housing. Include information on your proposed target population, unit sizes, site amenities, parking structure, and how the concept supports a mixed-income and/or mixed-use vision.

3. Timeline and Phasing Please describe how your concept could be phased. Would specific parcels be prioritized for earlier development? How would your concept sequence development over time?

4. Challenges What challenges do you see with developing this Site?

5. Community Impact How will the surrounding neighborhood and the City at large benefit from activating this Site with your concept? Will your concept create jobs? How will the additional housing benefit the community who live and work in Downtown Phoenix? Is there a public art component to your concept? Is sustainability a consideration? How does your concept reflect a creative approach to meeting the needs of the community and city goals?

6. City Assistance and Financing Structure What City assistance—financial, gap financing, or non-monetary—would be needed to make your project feasible? Please also describe your proposed financing structure for the concept, including funding sources, expected contributions, and any assumptions related to public-private partnerships.

7. Relocation Plan What would be your relocation plan for the existing residents of Ambassador West? Include the following information:

• Overall relocation steps

• Estimated total cost for relocation and the funding source

• Schedule/Timeline and notices to residents

• Social services (e.g. onsite relocation staff) provided

• Temporary or permanent relocation

8. Please upload any supporting documentation