The Community and Economic Development Department (CEDD) anticipates further development of affordable housing and commercial reinvestment throughout the City. To facilitate high-quality development, CEDD utilizes specialists in various economic and fiscal disciplines to assist with project feasibility and analysis. The availability of on-call firms would provide for streamlining of future development projects in areas of affordable housing assistance, real estate transaction and property disposition. Most recently, Keyser Marston provided financial feasibility analysis in determining HOME funding for the City’s first permanent supportive housing to be developed by American Family Housing.

A Request for Proposals (RFP) process was undertaken from qualified firms with demonstrated skills and experience to provide financial feasibility consulting in areas of pro forma analysis, project feasibility analyses, and other miscellaneous economic financial analyses, on an as-needed basis. The RFP was advertised on June 23, 2021 and three (3) formal proposals were received by the July 12, 2021 deadline. An internal selection panel completed an evaluation and rated the proposals on the basis of qualifications, proposal quality, budget, time management, and prior record of performance with other Governmental Agencies. 

Based on the evaluation results, staff determined three (3) separate technical expertise offered by each respective firm. Keyser Marston Associates, Inc. offers an extensive expertise in affordable housing analysis, including policy and financial feasibility analyses; Tierra West Advisors, Inc. is a leader in real estate and economic development analysis; and Harris & Associates Inc. offers planning, development feasibility, economic analysis and housing services.

The following is a summary of the ratings:

City references for each respective firm confirmed positive results in fiscal analysis services with previous and current client agencies.

1. Keyser Marston Associates, Inc. brings a complete range of financial analysis and consulting for development projects since 1973 with direct advisory services being provided to Garden Grove for over 23-years, most recently analyzing two potential affordable housing projects.

2. Tierra West Advisors, Inc. has over 30-years of experience providing real estate economic and financial analysis services and is currently advising the City’s Office of economic Development on various projects.

3. Harris & Associates has provided community development planning, housing and financial feasibility consulting services for over 47-years. They most recently assisted in the City analysis of our Housing Element RHNA allocation and are currently providing financial feasibility analysis of an affordable housing project.

To date, CEDD has several commercial development and affordable housing projects currently in various stages of due diligence in which comprehensive economic analysis may be required. Therefore, it is recommended that the three (3) economic consulting firms identified above be selected and awarded contracts for financial feasibility services on an as-needed-basis.

There is no impact to the General Fund. Each contract will be established for a one (1) year period with options to extend annually for a maximum performance period of up three (3) years in the not-to-exceed amount of $100,000, per year. Funding will be provided by a combination of the City’s Community Development Block Grant funds (CDBG), HOME Investment Partnership Program grant funds (HOME), Low and Moderate Income Housing Asset Fund (LMIHAF), and the Office of Economic Development Administrative budget for contractual services.

It is recommended that the City Council:

• Award a contract for financial feasibility services to Keyser Marston Associates, Inc., in the not-to-exceed amount of $100,000 per year, for a total performance period of up to three (3) years; 

• Award a contract for financial feasibility services Tierra West Advisors, Inc., in the not-to-exceed amount of $100,000 per year, for a total performance period of up to three (3) years;

• Award a contract for financial feasibility services Harris & Associates Inc., in the not-to-exceed amount of $100,000 per year, for a total performance period of up to three (3) years; 

• Authorize the City Manager, or his designees, to execute the contracts referenced above, and make minor modifications as appropriate thereto, on behalf of the City; and

• Authorize the City Manager, or his designees, to exercise option year terms and sign the option year amendments.

By:  Monica L. Covarrubias, Sr. Project Manager