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

The City of Solana Beach is seeking an affordable housing developer partner for a mixed-use redevelopment project ("The Pearl") at the 500 block of South Sierra Avenue, with proposals due October 1, 2026 at 5:00 p.m. and questions due August 7, 2026. The project is fully entitled by the City and the California Coastal Commission.

The scope includes development of 10 very low-income dwelling units (three one-bedroom, three two-bedroom, three three-bedroom, one four-bedroom) to be leased at affordable rates under California Health and Safety Code Sections 50105 for a minimum 55-year affordability covenant; 53 subterranean parking spaces; and 795 square feet of commercial office space on a 12,920 square-foot site. The developer must comply with approved and entitled project plans and permits detailed in Attachment 1.

The City will provide significant financial support through a long-term ground lease of 55 to 99 years at $1 per year and gap financing for construction costs. The development team will enter into a Disposition, Development and Loan Agreement establishing ground lease terms, loan structure, financing plan, bond requirements, and a development schedule with specific milestones. Proposers must demonstrate relevant project experience, preferably within California, with similar affordable housing or public-agency partnerships.

Required submissions include a cover letter, development approach, project experience summary, preliminary cost proposal and proforma with estimated City financial support requests, preliminary timeline and construction schedule, qualifications summary, key personnel resumes, and three references. Evaluation criteria address satisfaction of key project assumptions, team qualifications and resource commitment, experience with comparable projects and public agencies, timeline and budget feasibility, and performance in oral interviews. Top-ranked proposers will be invited for oral interviews after the October 1 deadline. The City reserves the right to reject all proposals and to negotiate with alternative respondents. Questions must be submitted by August 7, 2026, with responses provided by August 28, 2026.