BuildingFutures Request for Proposal DEVELOPMENT OF THE SITE LOCATED AT 156-89 St, S.W., CALGARY, AB FOR THE ATTAINABLE HOME OWNERSHIP PROGRAM 1
Attainable Homes Calgary Corporation is a non-profit organization and whollyowned subsidiary of The City of Calgary, created to address the housing affordability gap. About Attainable Homes Calgary Corporation Over the last decade, rising house prices have outpaced wage increases and created a significant gap between what households are earning and what is required to qualify for a mortgage. The Attainable Home Ownership Program (AHOP) offers well-appointed, market-quality homes at prices that are attainable for individuals and families earning less than $80,000 per year, and provides a down payment toward the purchase and a home ownership education program. AHOP is a long-term, sustainable solution for middle-income, working Calgarians to achieve homeownership. The AHOP provides Calgarians who have historically been priced out of the housing market, the means to buy a home, build equity, and create financial stability. Creating opportunities for Calgarians to move into home ownership will also free up much needed space for thousands of other households who need rental accommodation by bridging the gap for those that are able to own a home. Our unique program allows AHCC to assist our clients to purchase their home and in turn, the home-owner and AHCC share in the future appreciation. The program offers homeowners the freedom to sell the home at any time on the open real estate market. Through our program, we do three things in order to provide Calgarians with attainable homes: 1. We contract with reputable local builders to provide condominiums at a price that is attainable for middleincome Calgarians. We define middle-income as having an annual household income of less than $80,000. 2. We supply the required down payment and guide the purchaser through the entire purchase process. The purchaser needs to supply $2000 of his or her own money as a deposit, which is put towards the purchase price of the home. 3. We re-invest a portion of the home s appreciation back into the Attainable Homes program to help other people buy a home. The purchaser has the freedom to sell their home at anytime, at which point, depending on how long they ve lived in the property, they keep the major share of their home s appreciation. For further information, please visit our website: http://www.attainyourhome.com 2
The Opportunity AHCC invites responses to this Request for Proposal for a developer or builder to work with AHCC to develop a site located at 156 89 St, S.W., Calgary, AB with residential units that will become part of the AHCC program. The intent is to be able to award the contract by the end of March 2013, pending Board review. This is a unique chance to be positioned alongside a non-profit organization with a growing and respected brand affecting positive social change in the city. The opportunity includes: Development of a residential project, in the South West community of West Springs Delivering a quality project that fits the AHCC program parameters; Working with AHCC to expand home ownership for middle-income Calgarians and closing the affordability gap; Earning corporate profile in meeting a social need in our city. AHCC will be responsible for the project design, obtaining permits, vending the land into the partnership, and marketing and sales of the units. The Project Criteria The following criteria defines the project as contemplated by AHCC: AHCC to partner with a firm in a joint venture to develop the site. AHCC will provide land, and an approved project design with permits (Development Permit drawings attached). D.P. is anticipated to be issued in mid March, 2013. The successful proponent will participate in securing project financing (including guarantees), provide equity equal to the AHCC contribution, and manage the construction for an agreed fee. AHCC will market and sell the units. AHCC will work with the Joint Venturers to determine an acceptable ratio of Attainable to Market units to create an overall profit for the project. AHCC program units will be offered at a below market price with sufficient room for mortgage insurance purposes to create a down payment from existing equity in the unit. Pricing to be determined during the contract negotiation phase with the selected proponent. Project profits will be divided between partners. Project scheduling will be critical, as the intent is to begin construction in the summer of 2013, with first occupancies being available in 2014. 3
The Submission Requirements: 1. COMPANY PROFILE Summary of multi-family residential development experience. 2. PROPOSED BUSINESS TERMS An outline of the proposed terms of the joint venture, including governance and decision making. 3. ABILITY TO MEET SCHEDULE An outline of the proposed phasing of the project that will allow for occupancies in 2014. 4. ASSIGNED STAFF Information on the key staff members that will be involved, and points of contact for the project. 5. INTANGIBLE FACTORS Any additional information considered relevant that demonstrates the firms suitability. An example of this may be the ability of the proponent to supply AHCC with units for sale in other projects (to be acquired by AHCC at an average of 12% discount from market value). 6. FINANCIAL INFORMATION Information on the financial performance of the Proponent for the last three (3) years to support their proposal, a letter of reference from a bank(s) or other financial institution(s); and total sales volume per year for the last three years. 7. REFERENCES Please provide at least 2 references from trade or business partners. How to Get Involved Process: Submissions will be evaluated by the AHCC Development Committee. The Development Committee may ask firms to provide further information or clarification on the contents of their submissions, and / or make a presentation to the committee. The Development Committee will forward a recommendation for the preferred proponent(s) to the Board of Directors. An award will be made as to the proponent whose proposal best suits the mandate and vision of AHCC. This may require a presentation, or meeting with the Board, or individual members of the Board. Evaluation Criteria: All proponents will be evaluated as per the criteria provided in the matrix below. AHCC may short list the Proponents and then conduct presentation/interview sessions, or depending upon the responses received, alternatively, AHCC may proceed directly with an award, based on the submissions. 4
Selection Criteria Description Point Value 1 Company Profile 20 2 Proposed Business Terms 30 3 Ability to Meet Schedule 10 4 Assigned Staff 15 5 Intangible Factors 10 6 Financial Information 15 Total Points 100 Rating Total Score Comments AHCC will score all submissions in accordance with the above matrix. AHCC will then negotiate a final contract with the approved firm. AHCC is not bound to award the contract if none of the proposals are deemed to be acceptable. Instances where an invited proposal may be rejected as unacceptable are: Incomplete documents (all items requested are not included in submission). Documents are not properly signed and dated. Documents received after the specified closing time. Documents that contain restrictions on services by the vendor. Documents withdrawn by the vendor or his agent. ** Documents submitted without the required documentation attached or completed. **Submissions may be withdrawn prior to the closing time/date; in writing, to the CEO, after submission, by the authorized agent of the firm submitting the bid. Deadline for submissions is 5:00 p.m., March 15, 2013. Three copies (one unbound) of the response to this RFP must be submitted in sealed envelope(s) clearly identified as to the contents and bearing the firm s name. The firm must forward the completed proposal signed by a duly authorized representative and complete with any supporting documents to: Jamie Findlay, Development Manager Attainable Homes Calgary Corporation 1010, 6 th Avenue SW Calgary, AB T2P 0V8 (403) 265-9953 5
Any questions about this RFP can be forwarded to the above contact. Where the answers of questions received may be of general interest to other proponents preparing submissions, information may be posted on our website provided that in the sole opinion of AHCC such posting does not contain information significantly unique to a specific pending submission. The Fine Print Nothing in the RFP process shall create any legal obligations on the part of AHCC or legal rights on the part of the proponent. Legal obligations and rights shall arise only on the execution of an agreement. Confidentiality The successful proponent shall not at any time before, during or after the completion of the engagement divulge any confidential information communicated to or acquired by the proponent or disclosed by AHCC or its Boards in the course of carrying out the engagement. No such information shall be used by the proponent on any other project without prior written approval. Use of such confidential information could result in legal action by AHCC. AHCC reserves the right to make a selection based on information provided in the submission or request further information prior to selection of the successful firm. AHCC also reserves the right to reject any submission that does not adhere to the guidelines of this document. AHCC is not bound to award the contract if none of the proposals are acceptable. All submitted materials become the property of AHCC and will not be returned. Any expenses incurred in submitting a proposal are the proponent s responsibility. ATTACHMENTS: 1) Project Drawings dated Nov 29, 2012. Prepared for Development Permit application. The drawings are the property of AHCC and may not be reproduced without written permission. 2) Preliminary budget estimate. 6