ESBD_521754_1782334926788_RFQ730-26007 Addendum 2 - QA final.pdf
PDF 80 KB Posted
- Solicitation number
- RFQ730-26007
- Issued by
- Harris County, Texas
About this file
This is Addendum No. 2 for RFQ730-26007 issued by the University of Houston System on June 25, 2026, providing clarifications and answers to 22 questions submitted by prospective respondents regarding the Master Development Partner selection for The Quantum, a mixed-use lifestyle district development on approximately 21 acres of campus property. The RFQ is a two-step competitive procurement with qualifications due July 13, 2026, at 5:00 PM Central Time, mandatory pre-proposal conference attendance on June 12, 2026, and estimated shortlist notification on August 10, 2026, with final selection estimated for January 31, 2027. The selected development partner will be responsible for predevelopment, design coordination, construction oversight, financing, and operations of a comprehensive mixed-use district featuring retail, food and beverage establishments, a grocery anchor, graduate student housing (preliminarily approximately 400 units), structured parking, an alumni center, recreation venues, and public gathering spaces. Phase 1 will focus on immediately available vacant parcels west of Cullen Boulevard designed to operate independently while establishing momentum for future growth, with Phase 2 anticipated to include parcels currently occupied by campus recreation facilities requiring relocation. The developer must execute a Predevelopment Agreement within 30 days of selection, followed by negotiation of a Development Agreement and Ground Lease with a base term of 50 years from substantial completion, with the University open to longer terms such as 99-year options.
The project is subject to Texas state procurement requirements governed by the Texas Education Code and applicable provisions of the Texas Government Code, but does not have HUB requirements, MWDBE goals, or Davis-Bacon wage rate requirements. No public or economic incentives are anticipated at this time. The developer must provide 100% of equity funding with no financing contingency, with mortgage debt capped at 85% loan-to-value, and must maintain payment and performance bonds for full construction value and guarantees for cost overruns and late delivery. The University will receive fixed base ground rent adjusted at 3% annually plus 50% of the first $200,000 of annual net operating income exceeding benchmark levels and 25% of any additional outperformance income. The site is subject to pre-existing University arrangements including exclusive agreements with TDECU, Coca-Cola, and various retail and dining partnerships that restrict certain commercial categories. The developer must obtain University approval over design, financing, operations, alterations, naming, and tenant selection, coordinate with University auxiliary services, comply with UH Design Guidelines and a Declaration of Covenants, Conditions, and Restrictions, and perform comprehensive traffic and mobility studies. All uses identified in the RFQ are illustrative, with final program composition to be refined during predevelopment based on market analysis.
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ADDENDUM NO. 2 QUESTIONS AND ANSWERS
RFQ730-26007 MASTER DEVELOPMENT PARTNER FOR THE QUANTUM
Issued: June 25, 2026
1. Is the project subject to state procurement requirements? If so, which statute governs procurement?
Answer: Yes. If this is a public university project, it is subject to Texas state procurement requirements. Procurement is generally governed by the Texas Education Code (for institutions of higher education) and applicable provisions of the Texas Government Code, including the State of Texas competitive procurement requirements (e.g., Texas Government Code Chapter 2155 for state agency purchasing rules, as applicable, and Chapter 2269 for certain construction-related procurements if the scope includes construction or related services). Final applicability may depend on the specific scope and funding source of the project.
2. Given a private project delivery, is there an MWDBE requirement or goal for the project? What is UH’s position following Ken Paxton’s Opinion No. KP-0505 regarding DEI (found here: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/2026/kp-0505_0.pdf)?
Answer: There are no HUB requirements or goals for this project.
3. Is the project subject to Davis-Bacon wage rates?
Answer: No, Davis-Bacon wage rates would not apply.
4. Do the UH standards and policies require the use of specific forms of agreement with the General Contractor, Architect, and other consultants?
Answer: No. UH has standard forms when it is contracting with various entities and persons for services but in this case the Developer would be the contracting party and does not need to use the UH standard forms.
5. Respondents are required to identify and submit the complete project team. Does this include subconsultants under the prime architect?
Answer: Yes, include list of Prime Architect subconsultants.
6. Is UH seeking a lifestyle district, innovation district, town center, or a combination of these?
Answer: The Quantum is envisioned as a campus integrated mixed use lifestyle district. The University seeks a vibrant destination that serves the needs of the campus community, including students, faculty, staff, and alumni. The selected development partner will help refine the final program and positioning during predevelopment, including a market analysis to determine the optimal mix of uses, services, and amenities within the district.
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7. Are there any immediate program needs for Phase 1, including product type, parking, or open space?
Answer: Phase 1 is anticipated to focus on activating currently available parcels west of Cullen Blvd. Development proposed for Phase 1 should be capable of operating independently and successfully as a standalone phase while establishing momentum for future district growth. Respondents are encouraged to propose an appropriate mix of uses, parking, open space, and development strategies that support early district activation and long-term success of The Quantum.
8. Which uses are required versus illustrative, including grocery, housing, hotel, entertainment, office, and recreation?
Answer: The uses identified in the RFQ are illustrative and reflect the University's current vision. The University expects respondents to propose a market-supported development program consistent with the objectives of creating an active mixed-use lifestyle destination district. Certain elements such as grocery, food and beverage offerings, parking solutions, housing and campus-serving amenities are viewed as important components; however, final program composition will be refined during predevelopment.
9. How important is integration with the surrounding community versus primarily serving the campus population?
Answer: The Quantum is intended to activate the University of Houston campus and create a lifestyle district that supports the campus community. While the University welcomes engagement with the broader community, the primary focus of the district is to serve the needs of students, faculty, staff, and alumni.
10. Which elements of the current UH concept plan are fixed, and which are open to modification?
Answer: The University has established a conceptual framework for The Quantum. It should be emphasized that the framework is not fixed, but it does include elements that are expected to support realization of the overall vision, subject to validation through market analysis and the predevelopment process.
For Phase 1, it is anticipated that the district will include a mix of retail, food and beverage establishments, and parking facilities that support initial activation while maintaining flexibility to integrate with future phases as a part of a comprehensive master planned district Future phases may also include apartment style housing and structured parking. The potential for other University focused facilities, such as an alumni center or similar uses, will be evaluated as part of the overall planning and development process.
11. Would UH consider phased ground leases or phased land takedowns?
Answer: Due to the size and anticipated scope of Phase 1, it is expected that this phase would be developed as a single phase rather than subdivided into multiple ground leases or land takedowns. However, the University will consider alternative phased approaches if they align with the operational, financial, and strategic needs of the University and support the overall vision for The Quantum.
12. What flexibility exists around the ground lease term and extension options? e.g. would the University consider a 99-year term?
Answer: The University is open to discussing ground lease terms as part of the development proposal although longer terms will need to be discussed at length.
Respondents are encouraged to propose a structure that supports the financial viability of the project while balancing the long-term interests of the University. The ultimate lease term will be subject to negotiation and all applicable University of Houston System and Board of Regents requirements.
13. Are public incentives, TIRZ participation, or other economic incentives contemplated?
Answer: At this time no public or economic participation is anticipated.
14. Are there any known infrastructure constraints or utility capacity limitations?
Answer: The University has no specific knowledge as to utility limitations, although it would be expected that a development of this size would require utility extensions, upgrades, and modifications. Additional study and due diligence will be required during predevelopment to evaluate utility capacity, stormwater requirements, roadway modifications, and long-term infrastructure needs. Respondents should anticipate participating in these analyses as part of the predevelopment process.
15. What assumptions has UH made regarding stormwater detention and off-site improvements?
Answer: No specific detention solution has been prescribed at this time. Respondents should evaluate both on-site and campus-integrated approaches and propose solutions that support project feasibility, regulatory compliance, and long-term campus resilience.
UH is open to coordinated campus-wide solutions where appropriate.
16. Is there any district-wide infrastructure or parking that has been designed or contemplated to date?
Answer: Conceptually, the University anticipates district serving infrastructure, structured parking, utility improvements, and enhanced pedestrian environments as part of The Quantum development. However, no specific designs, engineering, or district infrastructure plans have been developed at this time. The selected development partner will be expected to evaluate and refine these elements during the predevelopment process.
17. What is UH’s plan for relocation of the recreation fields?
Answer: The existing recreation fields are anticipated to be relocated to another part of campus as part of a separately managed University project. Final relocation strategies, timing, funding, and replacement facilities have not yet been finalized and will be coordinated by the University as development planning advances. P3 development partners will not be responsible for the construction of replacement recreation fields elsewhere on campus.
18. Is Phase 2 expected to commence concurrently with Phase 1 or at a later date?
Answer: The University's immediate focus is on development of the Phase 1 parcels.
Development of the Phase 2 parcels is anticipated to occur in the future based on market conditions, University needs, the relocation of the existing recreation fields, and the successful implementation of Phase 1. The University views Phase 1 as an important opportunity to establish and validate the overall development concept. The ultimate timing, sequencing, and implementation of future phases will be developed collaboratively with the selected development partner.
19. Is the current developer selection intended to cover both phases of The Quantum District?
Answer: Yes. The University's intent is to select a Master Development Partner capable of supporting the long-term vision for The Quantum district. The precise scope, sequencing, and implementation of future phases will be established through subsequent agreements and predevelopment activities.
20. What type of housing does UH envision for the district? Please clarify whether the contemplated housing is student housing, faculty/staff housing, market-rate multifamily, workforce housing, or a combination thereof.
Answer: The RFQ references graduate student housing as a contemplated program element. While no specific housing program has been established, the University anticipates that apartment style housing may be considered as part of a future Phase 2 development. Preliminary planning discussions have included a concept of approximately 400 units; however, this is not a fixed requirement and will be evaluated based on market conditions, project feasibility, and the overall vision for The Quantum. Respondents are encouraged to recommend an appropriate housing strategy as part of the long-term development plan.
21. How will any future student housing or graduate housing be affiliated with the University?
Answer: Housing within The Quantum will be subject to University review and approval. As apartment style housing is currently contemplated as a potential Phase 2 component, the ultimate operating model has not been determined. Potential approaches could include University affiliated housing, a lease back arrangement with the University, housing operated by the development partner, or other mutually acceptable structures. The degree of affiliation, operational oversight, eligibility requirements, and relationship to University housing policies will be evaluated and determined during future planning, negotiation, and project development activities.
22. Will parking be shared between the campus and The Quantum District?
Answer: Phase 1 should be planned to function as a standalone development with parking sufficient to support its anticipated uses. As development progresses, the University anticipates there may be opportunities for shared use structured parking as part of future phases. The feasibility and desirability of shared parking will depend on a variety of factors, including overall University parking needs, housing development, district uses, event operations, and project economics. These considerations will be evaluated and refined during the predevelopment and planning process.
Please acknowledge receipt of this addendum in accordance with the solicitation requirements.
University of Houston
Purchasing Department
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