Delray Beach CRA to vet unsolicited grocer proposal, direct RFPs for West Atlantic redevelopment

The Delray Beach Community Redevelopment Agency voted unanimously to evaluate an unsolicited proposal from RH Development Group for a 21,000-square-foot full-service grocery on the Southwest 600 block of West Atlantic Avenue and directed staff to proceed with statutorily required public hearings and complementary requests for proposals for other West Atlantic redevelopment parcels.

The board’s action follows a staff market outreach to grocers and a due-diligence package showing a narrow but defined path for a grocery anchor on the site. "We have a grocer ready, willing, and able to do this project," said the commissioner who urged the board to move forward without reopening a lengthy competitive process. Staff noted the unsolicited proposal is included in the agenda backup, and RH Development Group’s representative, Randy Houlihan, attended the meeting to answer questions.

Why it matters: Board members characterized a large grocery as a critical anchor that could serve a persistent local gap in full-service supermarket access on West Atlantic and support surrounding retail. Staff told the board a limited set of grocers responded to outreach; two participated in interviews and one provided written comments. The CRA’s recommendation — to evaluate the unsolicited proposal under Florida Statutes 255.065 and hold two publicly noticed hearings — preserves the option to negotiate directly while ensuring the legally required public comment and findings.

Details from the meeting: City staff presented legal guidance from CRA counsel explaining the two options available after receiving an unsolicited proposal: (1) evaluate the proposal and comply with statutory notice and two public hearings with specific findings required by the statute, or (2) open a competitive process (20–120 days) to solicit rival proposals. Sonaz, who presented the legal briefing, said that if the board elects the evaluation route staff must schedule the hearings and later comply with land disposition notice requirements under section 163.380 if a conveyance is proposed.

Commissioners split on process but not on the goal. Several members said they prefer to move quickly because the city has previously sought a grocer for many years. Other commissioners urged caution and fiscal prudence, pressing staff to ensure competitive tension and to keep incentive levels reasonable. Concerns raised included the size and terms of any incentive package, how incentives would compare to other CRA priorities (including Pompey Park), and the durability of a private developer’s commitment.

The board also directed staff to draft two RFPs for West Atlantic parcels — one for the Southwest 600 block and a second for the Southwest 700–800 blocks — and to include preferences for commercial components (grocery, pharmacy, banking) and environmental specifications for bidders. Staff said draft RFPs will return for board review at the April meeting with the aim to issue them by May or June.

What happens next: Staff will proceed with the evaluation path for the unsolicited RH proposal, schedule the two statutorily required public hearings that include public comment and statutory determinations, and prepare draft RFPs for the indicated West Atlantic blocks for board review. Any future disposition of CRA land would also trigger separate statutory notice and additional approvals.

At the meeting, the motion to adopt option one and proceed with evaluation and hearings passed unanimously with all members present voting yes. The CRA recorded the motion as direction to staff to proceed with evaluation and required hearings; staff will return with timelines and draft RFP language for board review.