RFP 41-26 2575 Falk Road.pdf

P.O. Box 1995 | Vancouver, WA 98668-1995 | 360-487-8000 | cityofvancouver.us

Economic Prosperity & Housing

Request for Proposals (RFP) #41-26: 2575

Falk Road

Section 1: Introduction

Executive Summary

The City of Vancouver (“City”) is pleased to present this Request for Proposal (“RFP”) for a development partner (“Developer”) to lead the development of a workforce housing project on a 2.76-acre development site located in the Fourth Plain neighborhood at 2575 Falk Road, Vancouver, WA 98661 (the “Site”). This RFP seeks proposals that deliver cost efficient workforce housing financed independently from competitive public funding programs.

Vancouver has experienced tremendous growth over the last decade, most notably in the Waterfront and East Vancouver. However, Central Vancouver has not experienced the same level of investment as other parts of the city. The Fourth Plain neighborhood includes a mix of income levels with some of the most racially and ethnically diverse populations in Clark County. Therefore, this part of Central Vancouver requires a redevelopment approach that brings attractive housing options without unleashing displacement.

Overview of the City of Vancouver

The City of Vancouver encompasses 51.84 square miles, has an estimated 2024 population of 202,600 and it is projected to exceed 268,000 by 2042, making it the fourth largest city in Washington State and one of the fastest growing cities in the country. The City is located on the I-5 corridor and extends along the north shore of the Columbia River, 100 miles upstream from the Pacific Ocean. It lies directly across the river from Portland, Oregon and is southwestern gateway to the State of Washington.

Approximately an hour east of the Pacific Ocean and west of the Cascade Mountain Range, Vancouver enjoys breathtaking views of the Mt. Hood and Mount St. Helens, historic sites, waterfront access, and an active downtown.

Over the last 10 years Vancouver has seen a 64% increase in our communities of color.

Additionally, the diversified economy of Vancouver and Clark County, built on healthcare, manufacturing, food processing, trade and high tech, outpaced metro

Portland, Washington state and the U.S. over the past decade in adding new jobs and businesses. Major non-government employers in and around Vancouver include Peace Health, Vancouver Clinic, Vancouver Public Schools, Evergreen Public Schools, Bonneville Power, HP, Kaiser Permanente and Clark College to name a few.

The City is responsible for vital municipal infrastructure and urban services. It builds and repairs roads, maintains water and sewer service, provides fire and police protection as well as parks and recreation programs, administers land use policy and takes an active role in Vancouver’s commercial and industrial development.

Vancouver has a Council/Manager form of government with a City Council comprised of the Mayor and six council members who set policy and direction. The City Manager oversees the day-to-day operations of the city.

Section 2: Site Overview

The Site is a 2.76-acre vacant lot located at 2575 Falk Road, Vancouver, WA 98661. It is tax lot 30239038. Current Clark County records have not been updated to reflect the City’s ownership nor a boundary line adjustment that was completed to remove two smaller parcels. The diagram below shows the current extent of the Site. A survey of the Site is included in the Appendices.

Figure 1: Site boundary after the boundary line adjustment

The Site can be accessed from two locations: Falk Road and E. Fourth Plain Boulevard.

The Fourth Plain Boulevard access is via a shared private driveway. Additional traffic analysis will be required to evaluate whether the existing driveway configuration can adequately accommodate the traffic volumes associated with future development.

Directly to the north of the Site is a Bi-Mart grocery store that permanently closed in March 2026. The building is currently listed for lease. To the east is a USPS post office and to the south there is a restaurant, karate studio, furniture rental business and gas station. Across East Fourth Plain Boulevard is another City-owned property known as the City of Vancouver Operations Center. It currently serves as the operations center for the City’s Public Works department but will be redeveloped as a mixed-use development over the next decade.

Fourth Plain has been identified by the City as a priority area for equitable development.

It is a historically underserved community, but the City has focused attention and investment in this area over the past several years. The Site is the City’s most recent investment in Fourth Plain and has been recommended by the City as an Opportunity Zone for the Opportunity Zone 2.0 program.

Amenities

The Site is conveniently located near a variety of amenities. There are a variety of restaurants and coffee shops along East Fourth Plain Boulevard. There are multiple grocery stores within a mile of the Site including Walmart Neighborhood Market and Grocery Outlet. Access to Burnt Bridge Creek Trail, an 8-mile paved trail that links several green spaces, is directly across Falk Road and Vancouver Tennis Center is one mile away to the south. Bagley Community Park, a 15-acre community park, and Jim Parsley Community Center, which has a pool and community programming including summer camps, are within 0.5 miles to the north.

Schools

The Site is located in close proximity to several schools including Eleanor Roosevelt Elementary School (0.4 miles), Martin Luther King Jr. Elementary School (1.2 miles), McLoughlin Middle School (2 miles), and Fort Vancouver High School Center for International Studies (1.3 miles) to accommodate families with children of a variety of ages. The Boys and Girls Club of Southwest Washington is 0.3 miles away.

Public Transit Access

The Site is conveniently located adjacent to C-TRAN’s The Vine Green Line along Fourth Plain Boulevard, which connects the Vancouver Mall Transit Center and Downtown Vancouver. The Site is also within a 15-minute walk from the C-TRAN 30 line which provides access to the Fisher’s Landing Transit Center. Downtown Vancouver and Fisher’s Landing Transit Center offer connections to transit lines that reach Portland, Oregon.

Zoning Requirements

With the recent adoption of new Comprehensive Plan (Our Vancouver 2045) zoning code, the Site is zoned in the Mixed-Use category. The Mixed-Use neighborhood is designed to foster a vibrant community with medium-scale housing and a variety of housing options. This includes housing types such as courtyard buildings, apartment buildings, and multifamily buildings. Mixed Use zoning requires a minimum density of 32 units per acre. There is no maximum density limit, and density bonuses are offered for larger units – 1.45x for two bedrooms and 1.5x for three bedrooms. Buildings have a maximum height limit of 110 feet.

Environmental and Soil Conditions

A Phase 1 environmental site assessment and geotechnical report were completed for the Site. Copies of both are included in the Appendices. Although the geotechnical report noted a low chance of liquefaction, the City is conducting a liquefaction study and a copy of the report will be provided.

Disposition of Land

The City is open to selling or ground leasing the Site for minimal consideration based on project outcomes. The City will negotiate the price, valuation and other terms with the selected development partner in a disposition and development agreement that supports project viability.

Section 3: Project Objectives

The City is plagued by a significant housing deficit due to chronic underproduction of housing and population growth. The City is working to address the housing shortage on many fronts, including substantial investments in permanently affordable housing. An additional strategy is to encourage the development of workforce housing affordable to working and middle-class households. The City intends to use the Site to identify and support a potential model for expanding the supply of workforce housing without reliance on substantial public subsidy.

The City is open to a range of housing types for this project and open to both rental and homeownership projects on the Site. The Site may be developed as a single cohesive project or as multiple projects across the two existing grassy lots. The Site’s location is adjacent to many services and a main transit corridor offers opportunities to maximize development on the Site through an inclusive transit-oriented development model. The City’s priorities for this project include:

A. Cost efficient design and construction – The City is seeking proposals that can deliver high quality affordable housing at or below $225/square foot in hard costs. Innovative construction methods that can improve financial feasibility are encouraged but not required. In addition, use of recent building code updates, including an allowance for a single stairway in buildings up to six stories and wood frame construction up to six stories, is encouraged.

B. Alternative financing mechanisms – Funding for affordable housing in the State of Washington is limited and oversubscribed. The City seeks proposals that use alternative financing independent from competitive state and local subsidy programs. The City is open to providing tax incentives and reduced land cost as financial support.

C. A unit mix that is responsive to local market demand – The proposed unit mix should reflect the needs and market demand of the Fourth Plain area. Studio units are discouraged and should constitute no more than 20% of the proposed unit mix.

D. Affordability – In response to the housing needs of the Fourth Plain community, proposals should provide rents that are achievable and sustainable within the current market. Workforce housing is generally defined as affordable to households between 80-120% of Area Median Income (AMI), and proposals should seek to maximize the number of units available to all income levels within that range.

Proposals should clearly demonstrate both short-term and long-term affordability outcomes and describe the mechanisms that will ensure affordability is maintained over time. For example, proposals may pursue a traditional rent-restricted model with covenants to ensure affordability. Alternatively, a proposal could utilize an at-cost model in which project revenues are reinvested to reduce rents over time rather than distributed as profit, thereby creating enduring affordability.

Section 4: Responsibilities of Selected Developer

The selected Developer will be required to meet the following requirements. Other issues may be identified through the development agreement negotiation and/or the City’s permitting review process.

A. City Development Standards. Redevelopment of the property must comply with all applicable City of Vancouver zoning and development regulations. That said, the City is open to exploring options for alternative building methods to reduce costs using alternative materials, design and methods of construction and equipment process allowed by VMC 17.08.080 H. Examples may include single stair multiplex buildings or modular construction.

B. Installation of Utilities. All utility improvements on the Site, including but not limited to water, sewer, stormwater, power and cable is the Developer’s responsibility and to be coordinated with the City.

C. Site Access. The Developer is required to work directly with the City to develop coordinated site access and circulation plans in accordance with the zoning code.

D. Washington State Environmental Policy Act (SEPA) Regulations. The Site is covered by a Planned Action Ordinance. Developers must submit a SEPA checklist to the City to confirm that the proposal impacts are covered under the Planned Action Ordinance and associated mitigation measures.

Section 5: Submission Requirements

Applications should not exceed 50 pages in length. Project team resumes, cover letter and front and back covers are not included in the page count. Failure to meet the page count will render the proposal non-responsive and therefore void.

All proposals must include the following:

A. Development Team information.

i. Background and experience of all known team members, including the developer/owner and its lead staff person for this development, architect/designer, and if available, general contractor or builder, engineering consultants, property manager and lender.

ii. A description of each team member’s experience and qualifications in the development and construction of housing projects of comparable size and density as proposed for the Site.

iii. Evidence of success in achieving equitable outcomes and how any lessons learned from past experiences will be incorporated in this project.

iv. Experience working with the City of Vancouver and/or with public/private partnerships.

v. Experience working with diverse and local teams.

vi. A description of the applicant’s financial position and recent track record for securing financing for similar projects.

B. Project Description. Provide a general description of the project including:

i. A description of how the proposal responds to the development program and other goals and objectives stated in this RFP.

ii. Overall vision and description of the project, including unit mix, affordability level, and special population focus, if any. Applicants should address both upfront and permanent affordability solutions.

iii. Estimated building square footage.

iv. Design approach, including any open or community space (if applicable) and parking integration and the project’s connections with the broader Fourth Plain neighborhood.

v. Description of anticipated development standards or other provisions that would be sought in a development agreement.

C. Project Development Budget and Schedule.

i. Estimate of Total Project Development Costs and a Financing Plan for the

Proposed Project. Proposals must contain:

i. A preliminary development budget that includes all expected costs associated with the Site and building development, including design, infrastructure, building construction, permits, marketing, financing, developer fee, contingency, etc.

ii. Explanation of the basis and key assumptions for estimating project costs. These assumptions will be used to evaluate the cost per square foot of the project as part of the scoring criteria.

iii. A description and value of proposed financing including key terms for any bridge/construction and permanent financing, and the basis for such terms.

iv. Assumptions relating to land ownership structures, fee waivers and financial incentives must be included.

ii. Affordability. A description of the levels of affordability that will be achieved and the projected rents or home sale prices.

iii. Operating Pro-Forma. Proposals must include estimated operating income, expenses and cash flow for the first 15 years of operation if a rental product is proposed.

iv. Project Schedule. Proposals must include a schedule of key milestones to implement the project, and the approximate dates by which they will be accomplished. The schedule must include key milestones for financing, permit approval, and construction.

D. Preliminary project designs. The following design documents are required with the submittal unless noted otherwise. The design documents can be in sketch form provided they accurately represent what is feasible. The City may entertain a request to waive some of these submittals, if the cost of the preliminary design presents a significant barrier to an applicant.

i. Conceptual site plans. Plans must show all proposed building locations, automobile and pedestrian access and circulation, parking, and massing plan.

ii. Photographs of existing buildings that illustrate the architectural style, proposed materials and finishes may be included but are not required.

Section 6: Selection Process

A. Schedule. Applicants will have approximately 75 days to submit proposals. The schedule for the selection process is as follows:

Date Action

Week of June 15, 2026 City of Vancouver advertises the Request for Proposals.

June 25, 2026 Applicants Briefing Session

August 14, 2026 Deadline for RFP Questions

September 4, 2026 RFP Deadline

September 30, 2026 City to announce the short list of finalists

Week of October 5, 2026 City to schedule interviews with finalists

By November 2, 2026 City Council consent on development partner

B. Applicants Briefing Session. Development teams are encouraged to work with City of Vancouver’s main contacts on this RFP, Amy Zoltie (amy.zoltie@cityofvancouver.us) and Sasha Vassev (sasha.vassev@cityofvancouver.us) as questions arise.

There will be an Applicant’s Briefing Session held virtually via Microsoft Teams on June 25 at 1 – 2 p.m. PT. Any party considering submittal of a proposal should strongly consider attending this meeting. Following a brief introduction, City representatives will be available to answer questions about the development requirements.

C. Submission Deadline. Proposals must be received no later than September 4, 2026 at 5pm PT.

Proposers must submit proposals online through the City of Vancouver’s Procurement Portal: cityofvancouver.bonfirehub.com. Instructions on how to submit through the portal are available through the help function within the website.

mailto:amy.zoltie@cityofvancouver.us mailto:sasha.vassev@cityofvancouver.us https://cityofvancouver.bonfirehub.com/portal/?tab=openOpportunities

D. Review of the RFP Submittals. A review committee of community members will determine which applicants will be invited to individual interviews to provide more detailed information on their proposals. Following interviews, the review committee will make a decision on the chosen developer and present to City Council for feedback and consent.

E. Development Agreement. The selected applicant will work with City staff on negotiating a development agreement. The City will provide its template form which will include details such as development commitments and timelines for construction.

Section 6: Evaluation Criteria

Respondents' submittals will be evaluated based on the criteria listed in this section and further described in Section 3 above.

A. Cost. The primary objective of this project is to deliver cost-effective housing. The City is seeking proposals that can deliver quality affordable housing at or below $225/square foot in hard costs. Proposals must maximize efficiencies in design and construction to keep costs manageable without compromising livability and quality and durability of materials.

B. Financial Feasibility. Proposals will be evaluated on the feasibility of the project including proposed financing and delivery schedule, the capability of the development team to secure financing, and resources necessary to complete the proposed project promptly and within budget. Public resources for affordable residential development are limited and competitive. Therefore, proposals must find creative and alternative financing that doesn’t rely on competitive public subsidy programs.

C. Affordability. The City is seeking to add to the supply of workforce housing through a range of potential approaches, as described in Section 3 above. Proposals will be evaluated based on the creativity and feasibility of their affordability strategy, particularly approaches that minimize reliance on highly competitive funding programs. Preference will be given to proposals that demonstrate a strong commitment to maintaining the desired affordability over the longest possible term.

D. Project Team Experience and Qualifications. The City is seeking a collaborative development partner with experience on similar projects. Submittals will be evaluated on the proven ability of the project team to develop quality residential developments. Experience successfully building affordable housing will be a plus.

Evidence of this may be demonstrated by the success of past comparable projects.

Additionally, consideration will be given to the depth of experience with previous projects that achieved equitable outcomes and applicants that demonstrate a clear commitment to equity either within the organization and/or in their work.

Creative development partnerships addressing gaps in experience, financial capacity or community benefits are encouraged, depending on developer profile.

Criteria Weight Cost 35 Financial Feasibility 20 Affordability 20 Project Team Experience and Qualifications

Total 100

Section 7: City of Vancouver Resources

The City of Vancouver offers several programs to assist the financing of workforce housing. Programs are described below for informational purposes. Each program involves a separate application, and it is the selected developer’s responsibility to apply.

A. Multi-Family Tax Exemption Program (MFTE). The City of Vancouver offers a tax exemption for developers that assist in meeting the community needs for additional housing in designated residential target areas across the city. The Multi- Family Housing Tax Exemption (MFTE) Program, which is authorized under state law (RCW 84.14) and codified in Chapter 3.22 of the Vancouver Municipal Code, allows for an 8 or 12-year tax exemption for the approved value of newly constructed or rehabbed residential units. In addition, a 20-year tax exemption will soon be added to the VMC for properties near transit and will be available for the Site.

B. Impact Fee Exemption/Waiver. The city may grant a total or partial exemption or waiver from impact fees for housing developments qualifying as low-income housing under RCW 82.02.060(2). Impact fees are generally granted as a partial exemption of not more than 80% of impact fees. No such impact fee exemption and/or waiver shall be granted for any low-income housing that has been granted a property tax exemption under MFTE program.

Funds from the City’s Affordable Housing Fund (AHF) will not be available for this project. In addition, proposals should not rely on competitive state and local grants to finance the project, including State of Washington Housing Trust Fund awards and Washington State Housing Finance Commission 9% tax credits.

Permit Re-use Program

The City of Vancouver will be implementing the Permit Re-use Program allowing developers to reuse their own select building permits City-wide, provided that individual development sites fit specific technical and geographic specifications. Building permits for residential buildings with no more than 6 units and 3 stories can be reused until the next building code update. Building permit review fees for the re-used plans are 50% of the standard rate.

https://www.cityofvancouver.us/economic-prosperity-and-housing/housing-programs/multi-family-tax-exemption-program/ https://app.leg.wa.gov/rcw/default.aspx?cite=84.14 https://vancouver.municipal.codes/VMC/3.22

Section 8: Appendices

• Land survey

• Geotechnical report

• Phase 1 Environmental Site Assessment