Three developers have responded to the city’s Request for Qualifications/Proposals issued to support construction of a new Homeless Service Center (HSC) on Riverside Street.  City staff is currently reviewing the proposals and hopes to present a recommendation to the Housing & Economic Development Committee during its May 18th meeting according to a press release issued by the city today. Staff will be seeking direction from the Committee on the developer solution for the city to enter into an agreement to construct and manage the HSC.  Following Committee direction, the Committee and full Council would still have approval over the final agreement with the selected developer

In June 17, 2019, the City Council approved the creation of a modern homeless services center with emergency shelter access and complete wrap-around services to be located at 654 Riverside Street on vacant, city-owner property.

In light of the pandemic, the city had to add additional scope and requirements to the RFQ/P to ensure proposals took into consideration receiving physical distancing requirements.  The city originally estimated it would cost approximately $ 8 – $10 million to construct the new facility.  However, since that original estimate, the project grew in size due to needing more space for pandemic safety measures and overall construction costs have risen significantly due to global pressures and demand.  Earlier this year, the city estimated the total cost to be higher and include a lease payment in the range of $1 – $ 1.4 million per year over a 20 year period.  These factors can be seen at play in the proposals the city received.

Given a lack of available federal and state support, the city is engaging private sector partners to handle all portions of the project leading up to city occupancy.  The private sector partners would them lease the HSC to the city of Portland.  Depending upon the project approval, the Homeless Services Center could be ready for city occupancy within 24 months following the Council approval.

The three proposals received by the city are:  Developers Collaborative, (DC), Kevin Bunker, principal; FD Stonewater Project; and Fuego Blue, LLC, principal Ron Gan.