Nelson pushes back on Station Street Project's lack of participation

The Downtown Station Street Project began as an idea in 2018. In 2021, it was published and put on the street as a request for proposal (RFP) among developers. But after receiving only one bid, it was rejected 5-0 by the Apopka City Council in 2022.

Receiving only one bid may seem like a lack of participation, but an email thread between the City staff and administrsation suggests that there was more interest and activity than was reported.

Apopka Mayor Bryan Nelson sent The Apopka Voice an email thread that included James Hitt, the Community Development Director, and Jessica Pugh, the Purchasing Agent for the City of Apopka. The thread began in August 2021 when Hitt sent Pugh a list of 10 interested developers on the Station Street Project. Then, on February 28th, Pugh sent Nelson a report on the activity the City received on its RFP for the Station Street Project.

"Just a couple of facts that were left out of the Station Street project editorial," Nelson wrote in the email to The Apopka Voice. "Thought they might be useful."

Nelson is referring to an article published by The Apopka Voice entitled: How the Station Street Project became a battleground issue in the 2022 election. 

Hitt's email to Pugh shows a list of developers he describes as an "Interested Developer List". The list includes:

Smith, Broomfield & Howard Construction and Restoration, LLC. - Orlando
Rhodes + Brito Architects - Orlando
Hold Thyssen - Winter Park
Hannibal Square Community Land Trust - Winter Park
Florida Property Investments Assets, LLC - Winter Park
Millenia Partners - Orlando
Graff Holdings - Clermont
Schmid Construction - Clermont
Mosaic Development - St. Petersburg
Benge Development Corp. - Winter Park

In the email to Pugh, Hitt writes"

"Hi, Jessica:
Attached is the list of companies I have that were interested in the Station Street site bid..."

Thank you,

JIM

Hitt told The Apopka Voice he contacted the 10 developers on the list and that they were interested to read the RFP once it was published.

On February 28th, Pugh responded to Nelson with an email detailing the activity on the RFP from the OpenGov site:

"Per your request, info I have on RFP 2021-09:

• Project Link were advertised on OpenGov:  RFP 2021-09
• Attached is the email that Jim provided for contacts, they were all notified with the exception of Schmid b/c I couldn’t locate an email address for them (the list has 9 firms – without Schmid).
• Attached is the staff report for reference.
• 734 registered users were notified of the RFP through OpenGov. Breakdown of vendor classifications:
• Below is a snapshot of the activity on the RFP (#’s are current to date):

Jessica Pugh

Purchasing Administrator/City of Apopka

"I just thought it would add context to the article," Nelson wrote in the email to The Apopka Voice. "Hundreds of potential bidders had access to the RFP, more than 60 were contacted and eight had actual questions about the RFP before declining to bid."

Nelson also provided a Staff Report dated January 19th, 2022 that outlined its work on marketing the RFP, and its recommendation that the City Council authorize the City to negotiate with Standard  Investments and Holdings, LLC.

The report states:

Staff advertised a request for proposals (RFP) to seek a developer for the Downtown Apopka Station Street  Project. The request included the following requirements: A Mixed-Use development consisting of  residential (apartments or condominiums), commercial units on the first floor, an open space event area (3/4  to 1 acre) and pavilion (for farmers market, craft fair, movie night, public events, etc.), and parking. The  specifics for the development area were included in the RFP. 

The Finance Department advertised the RFP beginning Sunday, August 22, 2021 through Friday, October  15, 2021 (54 days). Advertisement for the RFP was placed in the Orlando Sentinel and was also posted on  the OpenGov procurement website; 734 registered vendors/firms were notified and thirty-one vendors/firms followed the project. On October 15, 2021 one submittal was received from Standard Investments and  Holdings, LLC. A single submittal from a competitive solicitation is allowable per the city Purchasing  Policy (107.3.9.4.).  

An evaluation committee was formed consisting of the following five members: James Hitt, Community  Development Director; Shakenya Harris-Jackson, Grant Administrator; Nicole Kennedy, Sustainability  Coordinator; Kenneth Goodwin, Executive Director for Homes In Partnership, Inc.; Monique Morris, Apopka Citizen. The evaluation committee reviewed and assessed the submittal based on the scoring  criteria outlined in the solicitation: qualifications of development team, quality of design proposal, value to  the City, financial viability, and financial return. On January 12, 2022 a virtual evaluation committee  meeting was held (the meeting was advertised on OpenGov and was open to the public). The overall final  scoring for Standard Investments and Holdings, LLC. is 86 out of 105 pts. All five members of the  evaluation committee meeting are recommending an intent to negotiate with Standard Investments and  Holdings, LLC. The evaluation committee has provided the following comments to be considered for  further clarification and recommendation to be negotiated with Standard Investments and Holdings, LLC.: 

• The appraisal of $900,000 would be included with the potential RFP award. The $250,000 offered  could be waived in exchange for the development of the site AND the development of the event  space.
• Complete a Development Agreement for the construction time period as described in the RFP (start  within two years and completed within four). 
• Complete the event space within three years and turned over to the City. 
• Minor commercial space on S. Central Ave. (possibly two units) with either a separate building or  combined on the first floor of a residential building, as described in the RFP. 

Per the advertised RFP selection procedures, negotiations with the selected proposer may include  changes to any of the conditions submitted by the proposer. Terms and conditions may require changes  to timelines, pricing, renderings, or any other items listed in the submittal content of the RFP. The City and  Standard Investments and Holdings, LLC would enter into negotiations for a period of up to 120 days. If  the City and the selected proposer have not concluded negotiations and executed the necessary agreements  within 120 days, the City Administrator may extend the negotiation period for an additional 120 days. If  the City and the selected proposer cannot negotiate a successful agreement within the time period described  in this RFP, the City Administrator may return to City Council to terminate further action under this RFP.  If an agreement is successfully negotiated and signed by the proposer, the signed agreement, along with a  recommendation from staff, will be presented to the City Council.  

FUNDING SOURCE: 

The RFP required that the developer would construct the project, including the event space, which would  be turned over to the City within three years. The appraised price was $900,000 which would be part of the  “sale” to the developer, in exchange for a Developer’s Agreement to construct a development as described  in the RFP. 

RECOMMENDED MOTION: 

Authorize staff, evaluation committee, and the City Administrator to negotiate a contract with Standard  Investments and Holdings, LLC. for the development of Downtown Apopka Station Street.