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ENA for YMCA January 15, 2019 Page 2 Evaluation of Proposals Each proposal has been evaluated and additional information was requested from the developers during the months that followed. All proposals were then evaluated by a selection panel which included representatives from the Community Development Agency, Planning and Building Agency, and the Public Works Agency. Criteria included experience of firm and key personnel; financial capacity; development schedule, project concept and completeness of proposal including organization and clarity. As a final step in the evaluation process, all four proposers were invited to present their development proposals to the Economic Development, Infrastructure, Budget and Technology (EDIBT) Council Committee on August 20, 2018. The proposals represented a range of development opportunities listed below. The selection panel completed the review of the proposals and the rankings are as follows: Proposer Score 1. Howard CDM/OCSA 86.25 • Expansion of OCSA to include a new Design and Art Center 2. Caribou Industries 67.48 • Boutique hotel 3. Community Development Partners/City Fabrik 66.75 • Veteran's Hall project including residential 4. The Sound • A community center/small business start-up incubator 66.00 Committee Direction At the September 10th regular EDIBT Council Committee meeting, the Committee directed staff to take an extra step to reach out to the top two rated proposers (Howard CDM/OCSA and Caribou Industries) to see if the two proposers could team up on pairing their proposal for resubmission to the City. Staff reached out to both parties via telephone on Friday, September 14, 2018. After discussing the potential of a joint proposal, both Howard CDM/OCSA and Caribou Industries agreed that a deal would not work at this time. At the October 8th Special EDIBT Council Committee meeting, the Committee directed staff to proceed with a recommendation to the full Council to enter into an exclusive negotiating agreement with Caribou industries for the renovation and reuse of the YMCA building. Caribou's project, which includes a hotel component, is expected to generate significant tax revenue for the City. The Committee also requested that the Caribou proposal include substantial community benefits, citing examples such as a Sylvia Mendez Museum, a concept utilizing wine and spirits, or shared space for local workers as part of the project. Caribou has also expressed interest in leasing a portion of the YMCA to the Orange County High School of the Arts for their proposed Design and Art Center project. 19C-2