In 2004, the Community Redevelopment Agency purchased the Hacienda Hotel as an economic development driver for downtown revitalization. The city has made several attempts to redevelop the property. However, the great recession, a sluggish recover, and the cost to fully restore the Hacienda has slowed the effort.

Since then, as economic conditions have improved, the city has been investing historic preservation grant dollars into the Hacienda. The total expenditure is expected to be $2.1 million. Additionally, the funding has served to further close the gap that makes restoring the Hacienda economically feasible.

On October 17^th staff met with the CRA board of directors and presented four concepts for restoring the Hacienda. They were as follows: Single-Purpose Tax-Exempt Financing Entity, Sell/Lease to Operator, Incremental Approach, and CRA Restoration. (see attached Oct 17th PowerPoint)

The discussion amongst the board focused upon, stewardship of the property, seeking additional funding in the form of tourist development dollars, and the city’s capacity to be proactive in its planning with potential developer/operator. The board requested that it would like to digest the information for further consideration. Staff indicated that its current approach is an incremental process, securing funds in a variety of avenues that serve as a foundation for further redevelopment. Staff indicated that market conditions have improved as supported by a hotel market rate study and recent inquires by prospective boutique hotel operators.

In order for staff to measure private sector interest and to engage in substantive discussions, it must express its desire in the form of a public notice. Staff also believe, with the improving economic conditions, there may be other parties interested in the Hacienda. As a result, staff is recommending an Request for Qualifications (RFQ) be issued.

Typically, an RFQ precedes an RFP (Request of Proposal), because it establishes a pool of interested parties eligible to submit a bid to do the work. Using an RFQ means you're looking for the most qualified candidates. An RFQ allows for the CRA to work out issues that are relevant to the needs of the city and to develop a proposal for the board to consider. Finally, RFQ's do not require the detail that goes into a proposal, likely broadening the pool of candidates that might express an interest.