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RFP - CLOSED

North Homewood Avenue Mixed-Use

January 20, 2022
February 10, 2022, 12:00 p.m. ET

The Urban Redevelopment Authority of Pittsburgh (the “URA”) is requesting proposals from developers and/or development teams to develop six parcels into a mixed-use development that incorporates affordable housing in the Homewood neighborhood of the City of Pittsburgh (“City”) along North Homewood Avenue between Hamilton Avenue and Susquehanna Street.

Contact Information

Ken Jones
Assistant Director of Housing Development

Summary

The goal of this RFP is to select a developer or development team to advance a development project that is mixed-use in nature with an affordable housing component and furthers the vision and goals articulated in the Homewood Comprehensive Community Plan. The developer or development team could pursue this goal by either:

  1. Standard 
    1. Developing the site as a new construction project in accordance with the URA’s disposition process, or
  2. Co-Developer
    1. Respondents that include the URA as co-developer must describe in detail the nature of a potential partnership, as well as a breakdown of contemplated responsibilities and contributions of each of the respective parties, and the type and percentage of capital resources and work components procured by each. URA equity investments require that the URA have an integral part in maximizing MWBE participation, selecting the architect, engineers, property manager, and supportive services
      RFP for Development Proposals during the development. Additionally, the URA may provide financing (predevelopment loans and grants) and technical support. The requested
      assistance is to be within normal parameters for a project of the samescope and size, and is subject to URA underwriting and approval.
    2. If selected as a co-developer, a respondent will effectuate the daily transactions required to move the project from financing to dedication. Post-stabilization, the URA prefers that the co-developer will singularly have the role of managing the asset.
    3. Implementing the co-development model lowers barriers for minority developers, and provides them with equitable development tools. A market-feasible project may thereby have support to counteract the undercapitalization faced by many emerging MBE developers. This effort encourages quality, locally-controlled wealth building, and economic stabilization under a shared risk/reward structure.

Proposals will be weighed by their overall creativity and thoughtfulness, the plausibility of timely project delivery as demonstrated by the proposer's track record, market/neighborhood
understanding, equity/revenue sharing-model reasonableness (if applicable), and personal financial resources, among other factors.

Tentative Schedule

RFP Issue Date 1/20/2022
Pre-Proposal Meeting 1/27/2022 at 10am via Zoom
Proposal Due Date 2/10/2022 at 12pm
URA Board Vote 3/10/2022

Property Description

Addresses:

Vacant parcels located predominantly along North Homewood Avenue, Hamilton, Avenue, and Susquehanna Street.
Parcels include: 

• 174-N-198 – approximately 10,115 sqft
• 174-N-194 – approximately 9,600 sqft
• 174-N-192 – approximately 7,400 sqft
• 174-N-190 – approximately 2,400 sqft
• 174-N-298 – approximately 2,500 sqft
• 174-N-296 – approximately 2,500 sqft

Neighborhood: Homewood
Council District: 9
Councilperson: Reverend Ricky Burgess
Preferred Use: Mixed Use, Affordable Housing
District Zoning: UNC, R1A-VH
Minimum Sale Price: Based on Future Negotiations

Proposal Scope

Proposals should demonstrate the capacity and creativity of the developer to transform the parcels included in this RFP by following high development standards and presenting the best economically viable project(s) for the City. It is expected that proposals will include the appropriate scale of development for the neighborhood in which it is located as well as a project scope that is feasibly attainable. Developers should, in their narratives, describe their

desired level of URA support for advancing the project as well as their preferred development model. The developer will be required to coordinate design and construction with the URA to ensure that the proposed project(s) complements both the neighborhood and City’s revitalization goals.

Submission Requirements

  1.  Title Page
    This should include the firm’s name, contact person and contact information.
  2. Table of Contents
  3.  RFP Summary Page
    This is attached as Exhibit C.
  4. Project Narrative
    1. Project Description – specific use, number of units (for residential) and/or commercial square feet (for retail, office, etc.), desired development model (usual URA RFP or co-developer model).
      a. Respondents from the prior RFI are asked to note any updates or revisions.
    2.  Parking – parking required by district zoning in relation to the parking necessary to meet the project demands
    3.  Community engagement plan – general approach and how the project complies with the principles outlined in the community plan
    4. Sustainability goals – performance measures or industry standards that will be used to assess the sustainability of the project
    5. Minority/Women Owned Business Enterprise plan – strategy to maximize MWBE participation and projected goals

      The URA has a long history of diversity and inclusion within all of its programs and other activities. The URA encourages the full participation of minority and women business owners and professionals in this effort. The URA requires that all respondents demonstrate a good faith effort to obtain minority and women-owned business participation in work performed in connection with URA initiatives. The URA acknowledges and adheres to the city’s goal of 18 percent (18%) minority and 7 percent (7%) women participation.

      A MWBE narrative needs to be included with the respondent’s proposal. See Exhibit E for MWBE Narrative Requirement. MWBE participation can be satisfied by:
      a. Ownership/Partnership of firm;
      b. Employment level of minorities and/or women in the firm;

      c. Staffing of minorities and/or women on URA matters;
      d. Use of minority or women-owned businesses as vendors;
      e. Subcontracting with firms owned and controlled by minorities and/or women. If this is to be done, that fact, and the name of the proposed subcontracting firms, must be clearly identified in the proposal.
      Any questions about MWBE requirements should be directed to Jazmine Derico, MWBE program officer, at jderico@ura.org.

    6. Ownership entity (single owner, partnership, LLC) - ability to finance the costs associated with project including previous experience in attracting equity investors and fundraising
    7. Development entity – project management plan and role of each development partner in the implementation of the development plan
    8. Description of desired level of URA assistance – technical assistance, financial assistance (and amount desired)
    9. Expected Zoning Variances (if any) – strategy to obtain approval(s)
  5. Concept Drawings of the Proposed Project (Exhibits)
    1. Site plan and floor plans
    2. Elevations
    3. Phased plan, if applicable, with the first phase clearly identified
  6.  Budgets (Exhibits)
    1. Financing sources with funding gaps, if any, identified and that clearly shows the URA’s expected contribution if the proposal uses the co- developer model
    2. Project uses including developer’s offer as well as detailed hard and soft costs
    3. Proforma including all anticipated operational and maintenance costs
    4. Phased sources and uses, if applicable, with first phase clearly identified

  7. Proposed Development Timeline (Exhibits)
    1. Schedule that identifies the duration of key tasks (i.e. due diligence, conceptual design, design development, permitting, final design, contract award, construction, etc.) and indicates major milestones
    2. Phased development timeline, if applicable, with first phase clearly identified
  8. Financial Capacity (Exhibits)
    1. Joint venture, general, or limited partners, and percentage of interest
    2. Evidence of Equity Contribution such as bank statements
    3. Letters of Interest or references from lending institutions
    4. Letters of Interest from potential tenants
  9. Relevant Development Experience
    1. Resumes or biographies of the proposed development team
    2. Fact sheets for similar projects (images, date, location, concept, funding sources, current vacancy rates)
    3. Press clippings that include project narratives to describe previous work
  10. Other Information - Please provide any other information you believe is pertinent to the URA’s consideration of your firm. 

 

RESPONSE SUBMISSION

All responses should include the RFP Summary Page, which can be found at the end of this document (Exhibit C), as the cover page of the proposal package. Respondents should submit their proposal package using IonWave Technologies, the URA’s RFP response program. The proposal should be combined into one file in PDF format. Do not send hard copies.

The proposal submissions and questions concerning the content of this RFP should be addressed to: Attention: Ken Jones
kjones@ura.org

ALL RESPONSES MUST BE RECEIVED BY THE RESPONSE DUE DATE AND TIME AS STATED IN
THE RFP TIMELINE FOR CONSIDERATION. Any late responses or responses received outside of IonWave Technologies will not be reviewed.

ALL RESPONDENT QUESTIONS WILL ONLY BE ACCEPTED AND ANSWERED THROUGH IONWAVE SUBMISSION, WHERE THE RESPONSE WILL BE MADE PUBLIC.

The URA will not reimburse firms for any expenses incurred in preparing responses to this RFP.

If you have any questions or issues with using IonWave, please contact: Attention: Ivy Coleman and Ken Jones icoleman@ura.org and kjones@ura.org

SELECTION CRITERIA

  1.  Process: The selection of any responsive firm(s) will be made by the URA Board of Directors after receiving the recommendations of the URA’s staff and/or any applicable selection committee. Such selection will be based on the nature and quality of the responding firm’s responses to the Proposal Scope and Submission Requirements described above. The URA reserves the right to request that any respondent meet with URA staff and/or a selection committee in a formal interview.
    1. Experience completing similar redevelopment projects in an urban neighborhood;
    2. Capacity to attract and secure financing, with a minimum amount of public subsidy;
    3.  Ability to assemble a team with the appropriate specialties;
    4. Appropriateness of proposed plan with RFP goals and scale of development;
    5. Experience with community engagement;
    6. Commitment to sustainable design standards; and
    7. Commitment to Minority/Women Owned Business Enterprise participation.
    8. Partnership (co-development) proposals will additionally be evaluated on criteria including responsibilities and contributions of each of the respective parties, the type and percentage of capital resources, and other deliverables or work components procured by each. Some other criteria are: the proposer's track record and professional reputation; market/neighborhood understanding; equity/revenue sharing-model reasonableness, and personal financial resources, among other factors.

      The developer is responsible for designing a project that meets the zoning regulations and building codes adopted by the City and is otherwise compliant with the law.

      A developer will be recommended to the URA Board based on the overall quality of the proposed project. The evaluation of the developer’s qualifications, experience and capacity will be based upon information submitted in the proposal and presented during the interview by the developer.

      The URA reserves the right to verify the accuracy of all information submitted. After the URA has completed its evaluation of the submittals, a developer who is placed on the short-list may be asked to interview with the URA. However, a short-listed proposal may be accepted without the need for an interview. If an interview is deemed necessary, the developer will be provided with a time that is determined by the URA.

  2. Conflicts of Interest: Responsive firms and their team members must have no conflicts of interest with regard to any other work performed by the respondent for the URA, the City of Pittsburgh, or any related entity.
  3. RFP Compliance: All responsive firms must adhere to the instructions contained in this RFP in preparing the submitted proposal.
  4. Waiver of Defects: The URA shall be the sole judge as to which respondent(s) best meet the selection criteria. The URA reserves the right to reject any or all qualifications submitted. The URA reserves the right to reject any proposal for

    failure to comply with the requirements of this RFP. The URA further reserves the right, in its sole discretion, to waive any such defect(s) or failure(s).
    Submission of a response indicates acceptance by the firm of the conditions contained in this RFP.
  5. Nondiscrimination: Each responsive firm agrees not to discriminate, whether in employment, contracting or otherwise, in violation of any federal, state, or local law and/or on the basis of sexual orientation, gender identity and/or gender expression.

DISPOSITION PROCESS

The URA sells its property through a disposition process rather than a standard sales agreement. The disposition process is based on the declarations within the Urban Redevelopment Law (Act of May 24, 1945, P.L. 991, No. 385). The developer must enter into a Disposition Contract (i.e. Development Contract) with the URA. The Disposition Contract is the binding document that details the developer’s plan to design, finance, purchase, and construct the development project. Taxes, liability insurance, site security, and all aspects of owning and developing the property shall be the full responsibility of the developer at the time of sale, as specified in the Disposition Contract. The URA does not sell land for speculative purposes, any such proposal to acquire and hold the land with construction to occur when and if it is successfully marketed will be rejected.

As part of the process, the URA will review the Opinion of Probable Cost and project drawings against the evidence of financing to determine if the information presented is reasonable and corresponds to a fully realized project. The URA will not close on a property until all the terms of the disposition process are fulfilled. Respondents should become familiar with the disposition process and related requirements which can be accessed here.

The URA Board must approve any and all developers who purchase URA property. Upon URA Board approval, the developer’s purchase of the property will occur after execution of the Disposition Contract, approval of the final construction documents and issuance of a building permit. The purchase of the property will occur simultaneously with the closing on the developer’s construction financing.

 

LEGAL INFROMATION

  1. Prior to submitting a proposal, a developer is encouraged to attend the pre- proposal conference, which provides an opportunity to inspect the property.
  2. The property will be offered to the selected developer in “AS-IS” condition.
  3. The sale of the property does not guarantee or warrant demolition permits, building permits, zoning variances, or financial viability.
  4. The developer, for itself and its employees, contractors, and primary subcontractors, agrees not to discriminate against or segregate any person or group of persons on any unlawful basis in the construction, sale, transfer, use, occupancy, tenure or enjoyment of the property or any improvements erected or to be erected thereon, or any part thereof.
  5. The URA shall be the sole judge as to which proposal best meets the selection criteria. The URA reserves the right to reject any or all proposals received, to waive any informalities or irregularities in any submitted proposal, and to negotiate scope and proposal prices.
  6. Responses to the RFP will not be opened publicly.
  7. Proposals may be withdrawn by written notice received by the URA before the time and date set for receipt of proposals. After the submission date, a proposal may not be withdrawn for a period of sixty (60) days, except by mutual consent between the URA and the respondent.
  8. It is the developer’s sole responsibility to read and interpret this RFP and the written instructions contained herein. A respondent may correct errors and omissions discovered before the time set for receipt of proposals by withdrawing the original proposal and resubmitting a new proposal before the date and time set for the receipt of proposal. Errors and omissions may not be corrected after the submission date except when the URA decides, in its sole discretion, to allow the correction.
  9. This RFP is submitted subject to errors, omissions, and/or withdrawal without notice by the URA at any time.
  10. The developer is encouraged to confer with the URA prior to submitting their response. All proposals, including attachments, supplementary materials, addenda, etc. shall become the property of the URA and will not be returned.
  11. Addenda will be posted on IonWave Technologies . All such addenda shall become part of the RFP documents and all respondents shall be bound by such addenda, whether or not received by the respondents.
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