2018.10.22 Council Agenda Item 10

Summary

Discussion regarding a process to create an affordable housing development on Town-owned property on Marshall Drive, off Woods Road.

A public comment period will not be included.

ACTION: Council action is not anticipated.

Description

BACKGROUND

In 2008-2009, the Town considered, but ultimately did not pursue, the creation of a 44-unit affordable housing development on Town-owned property on Marshall Drive, off Woods Road, behind the Public Safety Building.

In February 2018, Habitat for Humanity of Greater Portland expressed to the Council an interest to acquire the property and develop 25 single family homes on the property. The Council decided at that time that, before acting on the Habitat proposal and disposing of Town property, other organizations should have an equal opportunity to express an interest in this property for affordable housing development. The Council felt that procuring proposals through a Request for Proposals process might be appropriate. The Council also decided to continue discussion on this topic in July 2018 when a new Council was in place.

In anticipation of the July Council discussion, in June staff notified several dozen affordable housing developers of a potential upcoming Affordable Housing RFP opportunity in Falmouth, placed an advertisement in the Portland Press Herald, and asked for an expression of initial interest by developers. Five developer organizations expressed preliminary interest in receiving an RFP from the Town. Staff also drafted a Call for Offers describing possible requirements for an affordable housing project on the Woods Road site. 

STATUS

On July 9, 2018, the Council discussed the process for creating affordable housing on the Woods Road site and decided to continue its discussion at their annual retreat. Following the retreat, the Council Chair, Town Manager, and Director of Long Range Planning met on August 16 and agreed on the following next steps:

  • Staff will contact each of the interested parties to inquire if it is interested to have an informal, one-on-one, non-binding discussion with Town staff and two Councilors.
  • The purpose of these discussions would be for the Town to learn what affordable housing the interested party has created, what it sees as the opportunities for the Woods Road, and what it may need from the Town if it were invited to make a specific development proposal.
  • This approach avoids the upfront time and expense by developers in responding to a Call for Offers, allows the Town to be educated in this area, and permits the Town and developers to explore opportunities and a potential fit between the parties.  
  • Upon conclusion of the discussions, the ad hoc Council-staff team will report to the full Council with its recommendations if, and how, to proceed with this effort.

Since this meeting, staff was able to contact four out of five interested parties, all of whom expressed a willingness to have an informal discussion with the Town to explore opprtunities (and welcomed not to have to respond to a formal Call for Offers at this time). The interested parties are: Community Housing of Maine, Habitat for Humanity of Greater Portland, The Caleb Group, and The Szanton Company. Contact is still being sought with Diversified Properties, Inc. which also expressed initial interest.

NEXT STEPS

Staff recommends the following next steps:

  1. Assign two Councilors to an ad hoc Council/staff team.
  2. Set up and conduct informal discussions by the team with the interested developer parties.
  3. Report team findings to the full Council with recommendations if, and how, to proceed with this effort.

ATTACHMENTS

  • Affordable Housing Developer message, June 2018
  • Affordable Housing Developer List
  • Draft Call for Offers, June 2018