Committee to forward agenda bill on workforce housing RFQ after two respondents judged nonresponsive

The Community Development Committee agreed to forward Agenda Bill 25083 to the full City Council so the council can formally close the city’s request for qualifications (RFQ) for an affordable and workforce housing project and direct next steps, committee members said at a meeting beginning at 6:03 p.m.

Director Dorothy Davis, who leads the city’s housing work, said the RFQ was released in December and extended through January at developers’ requests and that the city received two submissions in January. “We received 2 applications in January,” Director Davis said. She said a selection panel reviewed the submissions and determined neither respondent provided the level of responsiveness or experience the committee sought.

The issue matters because the city owns a constrained site near a Habitat for Humanity property and staff said significant off‑site infrastructure will be necessary for development. Director Davis told the committee a new sewer lift station could cost between $750,000 and $1.5 million, a factor that developers will consider when sizing a project and estimating development costs.

Committee members and staff outlined three options for moving forward: reissue a more tightly defined RFQ, issue a request for proposals (RFP) that asks for project specifics, or pursue direct negotiations with developers already expressing interest. Representatives of two outside organizations — Imagine Housing and Related Northwest — had been contacted for technical input and to gauge interest, staff said; Related Northwest has recent experience on smaller projects in the region.

Dorothy (staff) confirmed the city has set aside some REIT funds for development support but said developers will want clarity about what incentives or site work the city will provide. “I have been in contact with them, and I’ve told them, look, we appreciate the work. However, we’re kind of having to go back and kinda rethink this a little bit, and we’re trying to navigate that and to please be patient while we figure out what our next steps are,” she said.

City Administrator Chambliss said staff will prepare an agenda bill for the next council meeting to declare the two January respondents nonresponsive and close the RFQ so the committee can return with a refined procurement approach. Committee members agreed it was appropriate to forward the item to council rather than handling it on a consent calendar so council can receive a fuller explanation of options and next steps.

Committee members also asked staff to gather the additional technical documents requested by potential developers — including sewer elevations, street elevations and other site data from the City of North Bend example project — so interested firms can evaluate feasibility before submitting a proposal.

No formal binding contract award or development agreement was made at the meeting. The committee’s next steps are administrative: (1) forward Agenda Bill 25083 to the council meeting on the 8th for action to close the RFQ and to authorize staff follow‑up with the two respondents; and (2) return to the committee with refined procurement documents and the technical data packet discussed. The committee adjourned at 6:31 p.m.