Update Quarry St (Aug 2017)
A report was tabled at the Finance, Policy, Operations and Legislation (FPOL) Committee at their meeting on 9 August in relation to the tender process for the Quarry St site, the co-operative housing demonstration project.
The report tabled confirmed that at its meeting in April 2017, Council resolved that all expressions of interest (EOI) that met the selection criteria, for the sale and development of 7 Quarry Street for a cooperative housing project, be invited to compete in an invited tender process; this includes our group.
The Chief Executive Officer was delegated authority to execute the tender process and dispose of the property in accordance with the Local Government Act 1995, and subject to a further report being presented to council detailing the proposed sale and contract methodology including development, contract and settlement timeframes and process. The report recommended that council approve the sale and contract methodology, and authorise the release of the request for invited tender to the shortlisted applicants from the EOI process.
At the FPOL meeting, the report was approved. It will now be tabled at the Council meeting at the end of August. We expect that the tender documents be released some time after that. Tenderers will be given three months to complete their due diligence and submit their proposals.
Further details about the tender process, as per the report, are included below. For a copy of the minutes of the FPOL meeting, click here.
Tender submissions must include details of the following:
- nature of proposal
- all parties involved in the proposal
- how the selection criteria is met
- how future residents of the cooperative housing development have been or will be prioritised and selected, including information on how the development will be marketed
- demonstration of the capability of the parties to successfully complete a development of this size
- an outline of proposed development including time lines, floor plans and estimated budget
Tenders will be assessed on the following selection criteria (as per Council resolution dated 26 April 2017):
1. Comply with all mandatory conditions
- Affordability for initial participants – 25%
- Long-term affordability for all successive participants – 25%
- Sustainable building design – 20%
- Shared use space – 10%
- Replicability – 10%
- Minimises financial risk to council – 10%
Based on the submitted tenders, the selection panel will prepare a selection report for consideration by the Chief Executive Officer.
Process and timeframes
Upon release of the tender document, tenderers will be given three months to complete due diligence and submit their application. Tenders will be assessed by a panel of officers and finalised by Chief Executive Officer. Officers expect that the panel will require up to two months, after closure of the application period, to identify a preferred tenderer (if there is one) and to finalise a selection report for approval by the Chief Executive Officer. If a preferred tenderer is not identified, a further report will be prepared for council consideration.
The selected tender will be given 180 days from acceptance to obtain development approval (DA), needs to commence construction within two years of DA approval, and complete the development within four years of DA approval. Should any of the agreed timelines not be met, the successful tenderer will be required to apply to council for an extension.