May 11, Deadline for Submittals: Monday, July 11, 2016 by 3:00 p.m. Contact: Jeff Staudinger (828)

CITY OF ASHEVILLE, NORTH CAROLINA REQUEST FOR PROPOSALS 298-RFPQ04292016 FOR THE DEVELOPMENT OF NEW AFFORDABLE HOUSING AT 338 HILLIARD AVENUE IN ASHEVILLE, NORTH CAROLINA. May 11, 2016 Deadline for Submittals: Monday, July 11, 2016 by 3:00 p.m. Contact: Jeff Staudinger (828) 259-5723 jstaudinger@ashevillenc.gov 1

I. SUMMARY The City of Asheville (the City ), through the Department of Community and Economic Development is seeking submittals from qualified Developers to develop the City-owned parcel located at 338 Hilliard Avenue, currently in use but due to be vacated by the City s Parks Maintenance Facility (the PM Site ) on or about January 1, 2017. The City is making this site available for the development of affordable multifamily rental housing. The City s goal for this development is to address affordable housing needs in the most cost-effective way possible. Details on particular objectives follow below in Section IV. Developers responding to this Request for Qualifications and Proposals ( RFP ) must be a qualified for- or non-profit development team (the Developer ). Members of each team will be evaluated according to the criteria set forth below, including experience with comparable residential developments, proposed development concepts and proposed project financing. The Site s development will proceed either under a long-term ground lease with the City of Asheville, or as a direct sale with warranty deed. The actual terms will be negotiated with City staff based on the chosen submitted proposal, and are subject to final approval by the Asheville City Council. The selected Developer under this RFP must agree to promote community participation and ensure openness and transparency in the development process by consulting with and regularly updating neighborhood groups about the project. The Goals of this RFP are: (1) To pursue the affordable housing production goals articulated by the Asheville City Council in the City Council 2036 Vision; Comprehensive Affordable Housing Strategy; the Housing Element of the City s Comprehensive Plan and in the 2015-2019 Consolidated Plan. These documents are available on the City of Asheville web site: www.ashevillenc.gov (2) To select a qualified Developer that can develop, own, and operate the Development in a professional, sustainable, and expert manner; (3) To ensure that the Development will be developed in a manner consistent with the Development, Design and Financial Objectives described in this RFP. 2

A. Important Dates II. IMPORTANT DATES AND SUBMISSION PROCESS RFP issued by City Wednesday, May 11, 2016 Pre-submission meeting at the site Thursday, May 26, 2016 Proposal Submission Deadline Monday, July 11, 2016 Preliminary Scoring for Minimum Friday, July 22, 2016 Qualifications by Selection Panel and Notice to Respondents Developer team interviews (if necessary) Week of July 25, 2016 Staff review and recommendation of Tuesday, August 2, 2016 development team HCD Committee Review Tuesday, August 16, 2016 City Council review and approval Tuesday, September 13, 2016 Contract for Sale or Lease developed, September-December, 2016 reviewed and approved Contract executed (potential leaseback of January, 2017 property to City) Plans and Permits developed and April, 2017 approved Mobilization, demolition and May, 2017 commencement of construction Completion of construction, occupancy April, 2018 B. Pre-Submission Meeting A pre-submission meeting will be held at the site on Thursday, May 26, 2016 at 3:00 p.m. The purpose of the meeting is to ensure that all teams understand the programmatic design, financing, scoring and submittal requirements. Although attendance at the pre-submission meeting is not mandatory, it is highly recommended. C. Questions and Requests for Information Questions raised at the pre-submission meeting may be answered orally. If any substantive new information is provided in response to questions raised at this meeting, it will also be posted on the City website www.ashevillenc.gov/bids, and will be emailed to all parties that have attended the presubmission meeting or otherwise requested that they be included on the RFP emailing list. Subsequent to this meeting, questions or requests for interpretation will only be accepted by email and all questions and responses will be answered by email and posted on the CED website. No questions or requests for 3

interpretation will be accepted after 5:00 Monday, June 27, 2016. Emailed questions and information requests should be submitted to Jeff Staudinger at: jstaudinger@ashevillenc.gov Submittal Date and Method Submittal of 5 hard copies of the Proposal must be received by the CED receptionist and an emailed copy sent to jstaudinger@ashevillenc.gov no later than 3p.m. Monday, July 11, 2016. 4

III. BACKGROUND A. The Development Site The Parks Maintenance Site is part of a City-owned parcel currently in use as the parks maintenance facility, under the management of the Asheville Department of Parks, Recreation and Culture. It is located immediately west of the Aston Park Tennis Center, and at the southeastern corner of the intersection of Clingman Avenue and Hilliard Avenue. The site is part of an existing 2.3 acre parcel designated by Buncombe County PIN 964818394200000. (964805183675). The specific site available for development is about.80 acres and is occupied with storage sheds, garages, and maintenance offices. This development site will be subdivided by the City from the parcel, and only this development site of approximately.80 acres is the subject of the RFP/Q. The remainder of the site will be retained by the City, and is currently intended to be developed as parking for the existing Aston Park Tennis Center and the Clingman Forest Greenway. The site is bound to the north and west by commercial and residential properties, to the east by the tennis courts, and to the south by a heavily wooded drainage valley. The French Broad River is located approximately ½ mile southwest of the site. B. Context The Asheville City Council has made expanding the supply of affordable housing a key element in its Strategic Operating Plan. Asheville has a serious affordable housing supply deficit, according to the 2015 Asheville Regional Housing Needs Assessment and Market Study (http://www.ashevillenc.gov/departments/communitydevelopment/plansreports.aspx) In its October 2014 work session regarding a Comprehensive Affordable Housing Strategy, Council confirmed that 338 Hilliard Avenue would be the first example of a strategy to repurpose strategically located City-owned property for affordable housing purposes. The property is located at the southwestern edge of the Central Business District, and at the northeastern corner of what is known as the Clingman Avenue neighborhood. Aston Park, a City-owned park that is renowned for its clay surface tennis courts, is to the immediate east. The Merritt Park Condominiums, developed by Mountain Housing Opportunities (a local non-profit housing developer) and the site of that organization s headquarters, is immediately west. To the south is the remainder of the parks maintenance parcel, now in use as off-site storage and informal parking. This area will be developed by the City into permanent parking for the Tennis Center and as a trailhead for the Clingman Forest Greenway. The Greenway, to be constructed between 2017 and 2020, will provide bicycle and pedestrian access to the River Arts District, as well as access to the Asheville Middle School. Also to the south is Aston Park Towers and Village, providing subsidized housing to elders and persons with disabilities, owned by the Asheville 5

Housing Authority and also serving as the Housing Authority s headquarters. To the north of the site is Clingman Avenue, providing access to Patton Avenue, I-240 and Asheville s downtown, which is two blocks north of the site. C. Zoning, Land Use Restrictions a. Zoning: The parcel is zoned CBD-Central Business District (https://www2.municode.com/library/nc/asheville/codes/code_of_ordinances?nodeid=ptiicoor_ CH7DE_ARTVIIIGEUSDI_S7-8-18CEBUDI). The District has no density requirements. Design Review by the Downtown Commission is required. b. Deed / Title Restrictions: A deed restriction, placed by the US Department of Housing Urban Development, is currently in place. City staff have confirmed with HUD the steps required to release the deed restriction, and a public hearing was held in conformance with HUD regulations for the ongoing use of the property for HUD eligible purposes, which the proposed use satisfies. City staff will complete that process prior to the disposition of the property. The developer must agree to execute an affordable housing deed restriction which will be in effect during the period of housing affordability. D. Environmental Conditions The City commissioned Phase 1 and Phase 2 site assessments, and a geotechnical study. These studies can be found here: https://drive.google.com/folderview?id=0b6rxfsiet9vot3lmu1yzb3lnx0e&usp=sharing. a. Phase One Environmental Site Assessment: Evidence of prior use as gas station. Otherwise, no unusual conditions for an urban site. b. Phase Two Environmental Groundwater and Soil Sampling: Some minor soil contamination issues discovered. Remediation will be the responsibility of the developer. c. Geotechnical Study: The primary site has been filled over time, at depths that appear to range from 2 feet to +/- 25 feet. The greater depths of fill are on the eastern portion of the site. 6

IV. DEVELOPMENT PLAN ELEMENTS A. DEVELOPMENT PROGRAM 1. Development Program Objectives: a) Housing: To increase the affordable housing supply in the City of Asheville while enhancing the attractiveness of the neighborhood within the context of other development, design and financial objectives. To provide multi-family rental housing affordable to low-and very low-income families and housing affordable to moderate-income families to the extent it can be funded by appropriate local financing sources. To provide permanent supportive housing for formerly homeless households. b) Community Benefits: To include in the Development, to the extent feasible, community-oriented amenities, such as a child care center or an after-school program open to residents and non-resident children. 2. Housing Program Objectives: a) Income Targeting Threshold Requirement: At a minimum, 51% of the units will be leased to households earning 80% or less of Area Median Income. Ideally, all units will be leased to and affordable to households at or below that income level. At a minimum, 20% of the units will be leased to households earning 60% or less of area median income. Ideally, 10% of the units to be leased to households earning 30% or less of area median income, or who are homeless. b) Maximum Rents: Maximum rents will be set at 30% of the targeted incomes and only families and seniors whose incomes are at or below the targeted incomes will be eligible to occupy the housing. Current maximum rents for various household income levels can be found here: https://drive.google.com/folderview?id=0b6rxfsiet9vot3lmu1yzb3lnx0e&usp=sharing. c)) Minimum Number, Mix and Sizes of Housing Units: Maximizing supply within the site constraints is a City objective. Therefore, a development of at least 40 units is required unless site constraints make that unfeasible. 7

At least 50% of the units must be proposed as 1-BR units, and 15% of the units as 3-BR units. d) Term of Affordability The units must be affordable to the income targeted households for a period of no less than 20 years. The developer must agree to execute an affordable housing deed restriction which will be in effect during the period of housing affordability. e) Occupancy Preferences: The selected Developer will retain final selection authority over all resident applicants. ` f) Affirmative Marking Plan: Developers must include a draft Affirmative Marketing Plan in their responses to this RFP. 3. Design Objectives: The overall development concept and preliminary site plans proposed by Developers will be evaluated on the basis of the degree to which they achieve the Design Objectives described below. a) Sustainability: To maximize the overall sustainability of the Development to the extent possible through the integrated use of sustainable building elements, including those that improve indoor air quality, reduce resource consumption, and approach zero-energy consumption. To support long-term tenant affordability by minimizing utility costs. To support resident food production. Ideally, third-party certification of sustainability will be obtained. b) Housing Habitability, to ensure the overall habitability of the housing and the comfort, security and stability of its residents by providing: Appropriately sized units and unit layouts; Appropriately located and accessible interior resident amenities such as on-site laundry facilities, community gathering spaces, etc.; Exterior amenities such as open spaces accessible only to residents that take into consideration o what passive and active outdoor activities will best support the tenants at differing ages; o analysis of sun/shade patterns; o potential views and vistas; o relationship to adjacent interior uses. c) Urban Design: 8

To reinforce the city street pattern and provide for substantial street trees and plantings along the sidewalks, and thoughtful landscaping. To consider the scale of neighborhood buildings To recognize the relationship of the development to the River Arts District, the Clingman Forest Greenway and Aston Park. d) Neighborhood/Community Amenities: To provide benefits to the broader community by incorporating, to the extent they are feasible, community-oriented amenities such as pre-school child care, after-school program open to older non-resident children and a senior center open to non-resident seniors. B. COMMUNITY OUTREACH AND TIMELINE 1. Community Outreach: a) The selected Developer will be required to consult with the WECAN neighborhood group in the planning of the Development and to update the community on the Development s progress. b) The selected Developer will be required to do targeted outreach to community stakeholders and organizations in the French Broad and Southside neighborhoods. d) Developer will be expected to meet with community representatives at least twice during the Schematic Design phase and at least one during the Design Development phase. e) Developer proposal must include a community outreach plan that outlines outreach efforts required above and any additional outreach the Developer plans to undertake during the development process. 2. Timeline for Implementing the Development: The site will be vacated by the City and available to the developer no later than January 1, 2017. Ideally, the developer will mobilize and commence demolition by March, 2017; and the development will be completed and ready for occupancy no later than March, 2018. D. PRELIMINARY FINANCING PLANS Developers must provide a complete Preliminary Financing Plan for the Project. The Plan must have a goal of maximizing economies of scale and efficiencies with development and construction and will be scored on 9

the basis of its overall feasibility, the degree to which it minimizes local gap financing and the degree to which it reflects innovative thinking about sources and uses, including creative ways to save on both capital and operating costs. The Plan should include the following elements: 1. Sources & Uses Budget. Developer should submit a feasible Sources & Uses budget that includes the following: a) Housing Development Sources, including, if feasible, but not limited to: Conventional Debt Private Sector Equity 4% low-income housing tax credits and tax-exempt bond financing Federal Home Loan Bank Affordable Housing Program funds Other Local Government Resources Additional, non-city sources of funds that help meet the City s affordability goals and reduce to the greatest extent feasible required City gap funding b) City of Asheville gap funds, if required, from the following sources in the following order: o The portion of the value of the property to be contributed to the development, if any, either as a discounted sales price or in the form of lease terms; o The City of Asheville s affordable housing programs and information about local and federal funds for affordable housing managed by the City of Asheville can be found here: http://www.ashevillenc.gov/departments/communitydevelopment/fundingprograms.aspx c) Housing Development Costs including: Soft and hard construction costs including permitting and applicable City fees, financing costs, and marketing and lease-up costs that pertain to each Project. Developer fees that do not exceed the NCHFA Developer Fee Policy for Tax Credit projects. Construction cost estimates should reflect current construction costs and exclude escalation assumptions. o A 20-Year Cash Flow Projection, including: Annual income increases at 2%; Annual expense increases at 3%; o Calculation showing projected private capital IRR through the 20 year cash flow; o Debt service d) Operations and management budget 10

V. SELECTION PROCESS, SELECTION CRITERIA AND SUBMITTAL REQUIREMENTS A. Selection Process City staff will review all submittals for completeness and satisfaction of minimum experience and capacity requirements. An inter-department staff review committee will interview the three highest scoring Developers who meet the RFP s minimum qualifications, at which time Developers will be asked to present and explain the major characteristics of their proposal, particularly as they relate to the Scoring Criteria. The review committee will meet to determine the final ranking of all responses and present this ranking to the CED Director. The Director will present the staff recommendation to the Asheville City Council Housing and Community Development Committee. The Committee will review the recommendation and make their recommendation to the full Asheville City Council. Any additional reviews, including specific funding recommendations, permit applications and other required reviews will be conducted in accordance with existing City policy and procedures. B. Minimum Experience and Capacity Qualifications All Developers must meet the following Minimum Experience and Capacity Qualifications in order to qualify for selection under this RFP: 1. Development Team Characteristics: Developers Development Teams must have sufficient experience and capacity to design, develop, own, manage and provide appropriate services for the Project. The Development Team must include an architect with experience in design and construction of multifamily housing for families and/or for seniors; and one or more property management entities with experience managing affordable housing for families and/or for seniors; Letters of Intent or Memoranda of Understanding from property management entities that are not affiliated with the developer must be submitted with the application. 2. Development Team Minimum Experience Qualifications Minimum Developer Experience: The Lead Developer itself or in partnership with other co-developers must provide evidence of the following experience: New Construction of at least one 24-unit or larger residential development in the past 5 years; Past experience with at least one of the following: 11

o New affordable housing for low income families and for low income seniors; o Development of housing in Asheville o Low Income Housing Tax Credit financing. For joint venture Development partners, the experience of either entity may suffice for the joint-venture partnership. A Memorandum of Understanding between joint venture Development partners must be submitted with the application. Minimum Ownership Experience: The proposed Owner(s) of the Project must have owned at least one residential development for at least 5 years prior to the Submittal Deadline of this RFP. Minimum Architectural Experience: The proposed Architect must provide evidence of experience with the design and construction of at least one multifamily housing development. In addition, the architect must provide evidence of the following experience: Design and completed construction of at least one 24-unit or larger residential development within the past 5 years. Minimum Property Manager Experience: The proposed property manager for the Project must have managed at least one family rental project for at least 24 months. For any Developer team member, the experience of key staff members may be substituted for the experience of the organization as a whole as long as the staff members experience in other firms was substantive and involved responsibilities similar to what they are anticipated to perform as a member of the Developer team. C. Selection Criteria (100 points possible): All applications that meet the minimum experience and capacity requirements will be rated and ranked according to the following scoring criteria. (1) Development Experience -- (30 points possible): The development experience of all developers and co-developers involved in the development of the Project will be considered for purposes of scoring in this category. This will include the experience of the lead architect or key staff of the architecture team responsible for overall design of the entire Development; and the experience of the Property Managers. (2a) Housing Program Objectives -- (30 points possible) Proposals will be scored according to the degree to which the Development meets and exceeds the stated Housing Program Objectives described in Section IV. A. 2, above. 12

Key scoring elements will be: How many units will be developed? How many units will be affordable, and at what income levels? How long will the units be affordable? (2b) Development Concept (10 points possible): Proposals will be scored according to the degree to which the Development Concept achieves the Design Objectives described in section IV. A.3, above. (3) Financing, Cost Control and Innovations (25 points possible): Each Project s Financing Plan will be ranked according to the degree to which the preliminary financing plans are feasible and consistent with the requirements, limitations and opportunities associated with their proposed sources; propose development costs that are comparable to other similar Projects and reflect knowledge of site conditions and constraints; minimize the City s permanent financing; propose innovative sources or financing instruments; and use innovative but practical materials or methodologies designed to reduce development, construction and/or operating costs, either directly or indirectly, without reducing the overall quality of the completed Development. (4) Community Outreach and Affirmative Marketing Plan- (5 points possible): Proposals will be scored according to the degree to which they meet the Community Outreach Program Objectives outlined in section IV.B.1, above. D. Submittal Requirements Please limit your total submittal size to 30 pages. Responses to this RFP should be organized as follows: 1. Summary. Provide a concise narrative description of the proposal for developing the Site, including the Project s overall size, uses, resident and community amenities, general layout, and summarized financing and services plans. 2. Development Team. Provide the name of each team member and primary contact persons, and phone numbers and email addresses for each of the following: Lead Developer and Co-Developers (if applicable) Development Consultant (if applicable) Asset Manager(s) Lead Architect and other Architect(s) Property Manager(s) 13

For each Lead Developer or Co-Developer, submit a current copy of the following documents: Certificate of good standing from North Carolina Secretary of State The latest two (2) years of either signed federal income tax returns (including schedules or attachments, if any); or audited financial statements (with management letters, if any). 3. Development Team Experience and Capacity 3.1.a. Developer Experience and Capacity. (1) Minimum Required Experience: Describe at least one 24-unit or larger development completed in the past 5 years and provide additional evidence of experience with each of the items listed above in section V.B.2. Development Team Minimum Experience Qualifications under Minimum Developer Experience. (2) Development Experience Scoring: Describe each Developer s experience in each of the following areas: Additional completed family or senior housing developments of at least 24 units in the past 10 years beyond the minimum requirement. Past experience with new affordable housing for low income families and for low income seniors; Development of housing in Asheville, Buncombe County and western North Carolina; Low Income Housing Tax Credit financing. (3) Development Capacity: Summarize the organizational structure of each Project Development Team, including the roles of Developer, Co-Developer and Development Consultant. Identify and briefly describe the experience of key development staff. 3.1.b. Ownership Experience and Capacity: (1) Minimum Required Experience: Describe at least one project owned for at least five (5) years by the entity that will assume ownership of the proposed Project including its location, number of units, completion dates, capital financing and target population; and (2) Ownership Capacity: Describe the current asset management structure, staffing, and portfolio of the proposed owner, and its capacity for assuming asset management of an expanded portfolio once development is complete. 3.2. Architectural Experience. (1) Minimum Required Experience: Describe the Lead Architect s experience with the design and construction of at least one 24-unit or larger residential development completed in the past 5 years (2) Architectural Experience Scoring: Describe the Architectural team s experience in each of the following areas: One or more additional completed housing developments of at least 24 units in the past 10 years beyond the minimum requirement. Past experience with at least one of the following: 14

New affordable housing for low income families and for low income seniors; Development of housing in Asheville, Buncombe County and western North Carolina. 3.3 Property Manager Experience. (1)Describe the following: at least one residential rental development managed for at least 24 months. Describe their location, associated uses and amenities, size, capital financing sources, and relevant dates of service. the total number of buildings in the property management company s portfolio and the number years each building has been successfully managed. the firm s experience with formerly homeless tenants, including its standard procedures regarding resident meetings, resident outreach and interaction with service providers. (2) (2) Property Manager Experience Scoring: Describe the Property Management team s experience in each of the following areas: One or more additional housing developments of at least 24 units managed in the past 10 years beyond the minimum requirement. Experience as the property manager of an affordable rental housing development beyond the minimum requirement, including working with very-low income and formerly homeless tenants. 4. Development Concept. Please prepare and submit a conceptual design that includes: 4.1. Narrative Development Concept Description. Describe the major qualities and features of the overall Development design concept as they relate to the Development Plan Elements described in Section IV. A. above, including: Development Program Objectives: Housing, Community Benefits, Parking Housing Program Objectives: Income Targeting, Maximum Rents, Minimum Number, Mix and Sizes of Housing Units, Occupancy Preferences, Affirmative Marketing Plan Design Objectives: Sustainability, Housing Habitability, Urban Design Neighborhood/Community Amenities The submittal of a conceptual site plan and façade elevations is welcome but not required, and will not affect scoring. 5. Financing and Cost Control Innovations Plans. Describe the overall financing plan for each Project separately as further described and in conformance with the requirements of Section IV.D. above, with sufficient information to allow CED to fully determine each Project s feasibility, including: 1) Full preliminary development proforma, with Sources & Uses, including all terms related to equity and debt, e.g., construction and permanent loan rates and terms. Rent schedule, including all levels of affordability. Required City of Asheville gap funding (show gap requirement in each of the following three ways: 15

as component of proposed sale or lease terms of the property; as other direct funding, including Housing Trust Fund and HOME; and Land Use Incentive Grant). Highlight any innovative financing approaches intended to minimize The City s projected capital gap financing. Highlight also any innovative direct or indirect cost-cutting strategies relevant to overall development, construction or operating expenses, including estimated savings calculations if appropriate. 2) 20-year cash flow (including, as appropriate, commercial revenue as described in Section IV.D.2.). 3) Year 1 operating budget 6. Affirmative Marketing Plan. Submit a draft affirmative marketing plan that outlines how you plan to market the project to the general public for initial occupancy including what specific outreach planned to be undertaken toward persons currently in public housing. 7. Community Outreach Plan. Submit a preliminary community outreach plan that outlines outreach efforts required above in Section IV.C.1 and any additional outreach the Developer plans to undertake during the development process. 8. Minority and Women s Business Policy Compliance Statement. See additional information in Section VI, D, below 9. Disclosure. Submit a completed and signed Disclosure, to disclose defaults, lawsuits, legal proceedings, bankruptcy filings or financial interests affiliated with City of Asheville staff or elected officials. E. Submittal Deadline and Other Important Dates Pre-Submittal Meeting: Thursday, May 26 at 3:00 p.m. at the site, 228 Hilliard Avenue, Asheville, NC. The meeting will include a short presentation on the RFP. Prospective Developers will have the opportunity to ask clarifying questions at this meeting and/or by email to jstaudinger@ashevillenc.gov. All questions and their answers will be posted on the CED website. RFP mailing list: All attendees at the Pre-Submittal Meeting will be added to an RFP email list along with any others who may ask to be included. This list will be used to send the RFP itself when it is issued, to notify all interested parties of any Addenda to the RFP, changes in the schedule, and/or RFP-related postings on the CED website that may occur prior to issuance. The same information along with the RFP itself will be posted on the CED website. 16

Submittal Deadline: Deliver 5 (five) hard copies of the Proposal including all attachments by 3:00 p.m. Monday, July 11, 2016 to: City of Asheville Community and Economic Development Department 70 Court Plaza Asheville, NC 28801 Attention: Jeff Staudinger, Assistant Director In addition, email a complete proposal including attachments to: jstaudinger@ashevillenc.gov. Proposals not received by the deadline will not be considered. Scoring and Ranking: All Developers will be notified by Friday, July 22 2016 as to whether their proposal was complete, met the minimum experience and capacity requirements and if so, how they were scored by the Selection Panel. The Selection Panel will interview qualified Developers to help determine RFP response scoring. Interviews: Interviews with highest scored development teams will be held during the week of July 25, 2016, unless otherwise notified by CED staff. Recommendation: Subject to approval by the Asheville City Council, selection is anticipated to be completed by the week of August 2, 2016. Final Selection: A recommendation on final selection is tentatively scheduled to be made to Asheville City Council at their meeting on September 13, 2016. VI. TERMS AND CONDITIONS OF REQUEST FOR PROPOSALS A. Developer Responsibilities The selected developer will be responsible for all aspects of development of the project, including but not limited to the following: Conducting all appropriate due diligence, investigating and determining conditions of the Development Site and the suitability of the Development Site for the proposed Development. Securing all required development approvals, including but not limited to any necessary permits or approvals from the City s Planning and Urban Design Department and Development Services Departments, and from federal and State agencies associated with environmental and historic preservation reviews as applicable. Obtaining adequate financing for all aspects of the proposed Development, including predevelopment, construction and operation. Designing and building the Development in a manner that produces a high-quality, enduring living 17

environment. Owning, managing, and operating the Development in a manner that ensures its long-term financial viability and the ongoing satisfaction of residents. Complying with the requirements of any financing for the Development, including but not limited to: o Equal Employment Opportunities The selected developer will be required to comply with local and federal procurement requirements, including the provision of equal employment opportunities for Minority and Women Owned Businesses. o Environmental Review If federal funds are used in the development, the proposed Development will be subject to review under the National Environmental Policy Act (NEPA), the National Historic Preservation Act (NHPA) and specifically the Section 106 historical resources preservation review. o Design Review: Developments in the Central Business District are subject to design review from the Downtown Commission. o Accessibility Requirements -Development sponsors will be responsible for meeting all applicable accessibility standards related to publicly-funded multifamily housing under Section 504 of the Rehabilitation Act of 1973, the Architectural Barriers Act, and the Americans with Disabilities Act. A minimum of 5% of the units must be accessible, including units for the visually and hearing impaired. o Insurance Requirements see-insurance Requirements, below. B. Errors and Omissions in RFP Developers are responsible for reviewing all portions of this RFP. Developers are to promptly notify the City of Asheville, in writing, if the Developer discovers any ambiguity, discrepancy, omission, or other error in the RFP. Any such notification should be directed to the City promptly after discovery, but in no event later than ten (10) working days prior to the date for receipt of proposals. Modifications and clarifications will be made by addenda as provided below. C. Addenda to RFP The City may modify the RFP, prior to the response due date, by issuing written addenda. Addenda will be posted on the City website www.ashevillenc.gov/bids, and will be emailed to all parties that have attended the pre-submission meeting or otherwise requested that they be included on the RFP emailing list. The City will make reasonable efforts to notify Developers in a timely manner of modifications to the RFP. Notwithstanding this provision, the Developer shall be responsible for ensuring that its proposal reflects any and all addenda issued by the City prior to the proposal due date regardless of when the proposal is submitted. 18

D. Minority Business Outreach The City of Asheville has adopted a Minority Business Outreach Plan to encourage participation by women and minority businesses in the public bidding process. The purpose of this outreach effort is to increase the likelihood of success in the award of contracts. Bidders are hereby notified that this RFP/Q is subject to the provisions of this Outreach Plan. Questions regarding the Minority Business Outreach Plan may be directed to, Brenda Mills, Economic Development Specialist, City of Asheville, Post Office Box 7148, Asheville, NC 28802-7148 or by phone at (828) 259-8050 or by e-mail at bmills@ashevillenc.gov. You can access a listing of certified minority firms at either https://www.ips.state.nc.us/vendor/searchvendor.aspx (State of North Carolina s VendorLink search) or www.doa.state.nc.us/hub (Link for Office of Historically Underutilized Businesses to search for HUB vendors directly). It is the policy of the City to (1) provide minorities an equal opportunity to participate in all aspects of its contracting and procurement programs and (2) to prohibit any and all discrimination against persons or businesses in pursuit of these opportunities. Developers are encouraged to consider minorities and women in their process for this project. Please provide a statement documenting your outreach efforts and indicate any utilized minority and/or women firms. E. Reservations of Rights by the City 1. The issuance of this RFP and the selection of a developer pursuant to this RFP are in no way a limitation of the discretion of any City board, commission, department, employee or official with respect to any review or approval required in connection with the proposed Development. The City s selection of a developer is in no way deemed to be the final approval of any Development proposed by the developer. 2. The information in this RFP is provided solely for the convenience of Developers. 3. The City expressly reserves the right at any time to waive or correct any defect or technical error in any response or procedure, as part of the RFP or any subsequent negotiation process; reject any or all responses, without indicating the reasons for such rejection; reissue a Request for Proposals; modify or suspend any and all aspects of the selection procedure, the scope of the proposed Development or the required responses, or the processes indicated in this RFP; request that Developers clarify, supplement or modify the information submitted; extend deadlines for accepting responses, or request amendments to responses after expiration of deadlines; negotiate with any, all or none of the Developers to this RFP; make a selection based directly on the proposals, or negotiate further with one or more of the Developers; during negotiation, expand or contract the scope of the proposed Development, or otherwise alter the Development concept in order to respond to new information, community or environmental issues; if at any time prior to the execution of binding agreements with the developer CED, in its sole discretion, determines that the selected developer will be unable to proceed with a timely and feasible Development in accordance with this RFP, CED may terminate negotiations with the highest ranked Developer and begin negotiations with the next highest ranked Developer; or determine that no Development will be pursued. 4. The issuance of this RFP does not obligate the City to pay any costs whatsoever incurred by any Developer, including but not limited to costs incurred in connection with the preparation or presentation of responses or negotiations with the City. Developer teams responding to this RFP do so at their own expense. 19

5. The issuance of this RFP is only an invitation to submit qualifications and proposals, and does not constitute an agreement by the City that any contract will actually be entered into by the City. This RFP does not in any way limit the discretion of any City board, commission, employee or official with respect to any review or approval of any aspect of a proposed Development. 6. The City reserves the right to disqualify any Developer to this RFP based on any real or apparent conflict of interest that is disclosed by the responses submitted or on the basis of other information available to the City. The City may exercise this right in its sole discretion. F: Insurance and Indemnification Requirements INSURANCE: The Successful Developer (Developer) agrees to keep and maintain for the duration of this Agreement including but not limited to commercial general liability with at least the minimum limit of $1,000,000 per occurrence. Prior to Contract Award, the Developer shall furnish the City with a certificate of insurance evidencing said coverage, with the City listed as Certificate Holder and as an additional insured on the Developer s general liability policy and provide a waiver of subrogation on the said policy. In the event of bodily injury, property damage, or financial loss caused by the Developer s negligent acts or omissions in connection with the Developer s services performed under this Agreement, the Developer s Liability insurance shall be primary with respect to any other insurance which may be available to the City, regardless of how the Other Insurance provisions may read. In the event of cancellation, substantial changes or nonrenewal, the Developer shall give the City at least thirty (30) days prior written notice. No work shall be performed until the Developer has furnished to the City the above referenced certificates of insurance and associated endorsements, in a form suitable to the City. The Developer shall ensure the General Contractor retained by the Developer to perform services associated with this Agreement shall list the City of Asheville as an additional insured under the General Contractor s general liability insurance policy and provided a waiver of subrogation on said policy. The Developer shall ensure the General Contractor retained by the Developer to perform services associated with this Agreement shall obtain Payment and Performance Bonds for the full value of the construction project associated with this Agreement. INDEMNIFICATION: The Successful Developer (Developer) shall indemnify, defend and hold harmless the City and its subsidiaries, divisions, officers, directors and employees from all liability, loss, costs, claims, damages, expenses, attorney fees, judgments and awards arising or claimed to have arisen, from any injury caused by, or allegedly caused by, either in whole or in part, any act or omission of the Developer or any employee, agent or assign of the Developer. This provision is not applicable to any claim arising out of or related to any active or primary negligence of or by City, its officers or employees. Nothing herein shall be construed as a waiver on the part of the City to any defense of any claim, including, but not limited to the defense of governmental immunity. 20