To: Board of Supervisors
Department or Agency Name(s): Community Development Commission
Staff Name and Phone Number: Michelle Whitman 707-565-7504
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Tierra de Rosas Master Developer Professional Services Agreement Amendment 6
End
Recommended Action:
Recommended action
A) Authorize the Executive Director of Sonoma County Community Development Commission (Commission) to amend and execute Professional Services Agreement Amendment 6 (PSA) between the Commission and the master developer, MidPen Housing Corporation (MidPen) for predevelopment work related to the remainder parcels at Tierra de Rosas by increasing the total PSA amount from $5,420,000 to $5,470,000 and to engage subconsultants related to the commercial and civic parcels’ scope of work.
end
Executive Summary:
Approval of this item would authorize the Executive Director of the Commission to amend the PSA with MidPen to include predevelopment work related to the remaining Commercial and Civic parcels at Tierra de Rosas. The Disposition, Development and Funding Agreement (DDFA) identified these two remaining parcels as a future second Phase of the project. This PSA amendment would increase the total PSA dollar amount from $5,420,000 to $5,470,000. This increase is necessary for expenses to engage subconsultants and other necessary predevelopment work through completion of the Request for Information (RFI) and associated selection of owner/developer(s) for the DDFA Phase II parcels.
Discussion:
On March 12, 2019, the Sonoma County Board of Supervisors (Board) authorized the Executive Director of the Commission to execute the DDFA with MidPen as the master developer and Urban Mix Development LLC (UMD) as the market rate developer of the planned mixed-used redevelopment project now known as Tierra de Rosas. The DDFA identifies key responsibilities of the parties and defines the mixed-use development would be divided into two phases. Phase I parcels are the Affordable Housing, Market Rate Housing and the Plaza and the Phase II parcels include the Commercial and Civic parcels.
On July 19, 2016, the Board authorized the Executive Director of the Commission to execute a PSA with MidPen to pay for third-party predevelopment expenses incurred to obtain the required approvals from the City of Santa Rosa. This includes approvals for public improvements on the entire 7-acre property, which under the DDFA are the responsibility of the Commission. These public improvements include publicly dedicated streets, sidewalks and public utility easements. Private improvements on each of the five subdivided parcels on the 7-acre site are described below.
• "Casa Roseland" Affordable Housing Development:
o 75 multi-family rental units for households at 30 - 60% of the Area Median Income (AMI)
• "Tierra de Rosas" Mixed-Use Development:
o Market Rate Housing - up to 100 multi-family rental units
o Commercial Parcel
o Civic Parcel
o 1-acre Public Plaza
Under the PSA, MidPen performs all planning, entitlement, other predevelopment and construction work in their role as the master developer for Tierra de Rosas. MidPen continues to perform tasks related to the public infrastructure.
As intended under the DDFA, the mixed-use development project would occur in a series of phases and components. Subsequently the Commission and master developer would negotiate an agreement for the remaining Commercial and Civic parcels. The mixed-use development is now at a stage to proceed with the remaining DDFA Phase II parcels and the Commission and master developer have mutually agreed to amend the existing PSA to include this scope of work for the remainder parcels.
Under the new amendment 6 to the PSA, MidPen will continue to deliver professional predevelopment project management and related services as needed related to dispose of the remaining Commercial and Civic parcels through an RFI process. This amendment would increase the total PSA cumulative dollar amount from $5,420,000 to $5,470,000. The $50,000 increase includes a budget for MidPen to engage subconsultants. The project management fee of $10,000 a month for an 11-month period total of $110,000 is within the existing authorized management fee budget. This $10,000 a month management fee is for predevelopment work through the completion of the RFI and associated selection of the owner/developer(s) for the DDFA Phase II parcels. The scope of work includes engaging subconsultants to complete due diligence reports, assist with the RFI issuance and developer(s) selection process complying with the Commission’s procurement requirements, engaging a subconsultant for community outreach, contingency, and general project management. The PSA defines roles and responsibilities between MidPen and the Commission for this additional work. The proposed schedule for the work in amendment 6 of the PSA is planned to commence at the end of August 2025 and be completed by June 30, 2026.
Strategic Plan:
This item directly supports the County’s Five-year Strategic Plan and is aligned with the following pillar, goal, and objective.
Pillar: Healthy and Safe Communities
Goal: Goal 3: In collaboration with cities, increase affordable housing development near public transportation and easy access to services.
Objective: Objective 3: Create incentives for developers to promote affordable housing development in the County.
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
See Attachment 1.
Fiscal Summary
|
Expenditures |
FY25-26 Adopted |
FY26-27 Projected |
FY27-28 Projected |
|
Budgeted Expenses |
$50,000 |
|
|
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
$50,000 |
|
|
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
|
|
|
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
$50,000 |
|
|
|
General Fund Contingencies |
|
|
|
|
Total Sources |
$50,000 |
|
|
Narrative Explanation of Fiscal Impacts:
Appropriations of $50,0000 were included in the FY2025-26 budget development. Funding sources include the remaining balance of County General Fund awarded to the Commission on 06/15/23. Including this amendment, the project remains within the committed funding budget.
|
Staffing Impacts: |
|
|
|
|
Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
Additions (Number) |
Deletions (Number) |
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
Attachment 1 - Prior Board Actions
Attachment 2 - PSA Amendment 6
Related Items “On File” with the Clerk of the Board:
1. Professional Service Agreement - July 20, 2016
2. PSA Amendment 1- November 1, 2019
3. PSA Amendment 2 - August 22, 2019
4. PSA Amendment 3 - June 10, 2020
5. PSA Amendment 4 - August 31, 2021
6. PSA Amendment 5 - July 21, 2023
7. PSA Amendment 5 Correction - November 5, 2024