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6.3G <br />Page 1 <br />REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />May 24, 2010 <br />SUBJECT <br />Bid Award to Mid-Peninsula Housing Management Corporation, Approval of Property <br />Management Agreement, and Approval of Exclusive Negotiation Agreement with Mid-Peninsula <br />Housing Coalition <br />RECOMMENDATION <br />Approve, by Resolution, <br />1. Award of a bid to Mid-Peninsula Housing Management Corporation for Property and <br />Asset Management of 1306 Main Street ("property"}; and <br />2. Approve and Authorize the City Manager to Execute a Property Management Agreement <br />with Mid-Peninsula Housing Management Corporation: and <br />3. Approve and Authorize the City Manager to Execute an Exclusive Negotiation Agreement <br />with Mid-Peninsula Housing Coalition. <br />BACKGROUND <br />In 2009, the Council approved the acquisition of a multifamily property located at 1306 Main <br />Street primarily funded by Community Development Block Grant and HOME Investment <br />Partnership Act funding. Redevelopment Housing funds were used as a required non-federal <br />match for the HOME funding allocated to this project. The City has continued the property <br />management contract with the management company used by the seller. The City desires that a <br />non-profit management company be retained to coordinate homeless and other supportive <br />programs with human services agencies and case managers to help maintain affordable <br />permanent housing for targeted Redwood City residents. Redwood City's role has been to utilize <br />federal funding for acquisition and rehabilitation to promote the expansion of affordable housing; <br />however, the City's role is only to hold title to real property until a suitable buyer can be identified <br />or programmatic solution can be developed. The intention for this endeavor has been to acquire <br />the property, improve the property, establish five Homeless Outreach Team (HOT) units for the <br />chronically homeless, and then convey the property to anon-profit management organization. <br />The non-profit will provide current and future tenants with various resources and individual <br />services, including financial literacy, health and wellness, vocational training, adult computer <br />training, a volunteer program and community development. <br />On April 7, 2010, a Notice to Bid for property and asset management of City owned property <br />located at 1306 Main Street was published in the Daily News and the Daily Post, offering the <br />opportunity to non-profit housing developers and property management organizations to bid for <br />asset and property management of 23 units of affordable housing. The bid documents specified <br />that the property management firm must provide services within walking distance of the site <br />because many tenants are transit dependent. At least three potential management companies <br />could have met this requirement; however only one bid was received by the deadline of April 30, <br />2010. The successful bidder, Mid-Peninsula Housing Management Corporation (MPHMC), was <br />offered the opportunity to provide property management services immediately upon Council <br />award of the bid and to begin providing resident services. MPHMC's Bid Proposal obligates <br />MPHMC or its affiliate, Mid-Peninsula Housing Coalition ("Housing Coalition"}, to enter into a <br />