Last week, the District of Squamish released a document outlining what officials asked of prospective oceanfront developers, a paper the mayor say proves proper process was followed.
On Thursday, Oct. 23, the municipality posted the Squamish Oceanfront Development Corporation’s (SODC) Request for Proposal (RFP) to its website. The move followed statements from the SODC’s former chair, Bill McNeney, that called into question the selection process of an oceanfront developer. In an interview with The Squamish Chief, McNeney said a vital step was missed in the vetting of the two shortlisted candidates for the 59-acre mixed-use development — Solterra and Newport Beach Partnership Ltd. McNeney said neither applicant fully completed terms for a contract deal, which detail items such as financial commitments, the company’s ability to deliver and what the developers would seek from the municipality.
That’s simply not the case, Squamish Mayor Rob Kirkham said. A term sheet is included within the RFP. It outlines purchase price, proponent’s conditions and joint venture possibilities. The applicants completed their proposals to varying degrees, “either touching on or elaborating deeply on what was required of them” in the RFP, Kirkham said.
Other than a vague schedule — which states applicants would present to council in mid-July 2013, before the target date for a selection of a proponent in August, 2013 and entering a binding agreement in fall of 2013 — there is no “step one, step two and step three” within the RFP, he noted.
“It [the RFP] says give us your proposal and we would like you to know that we would like these aspects addressed,” Kirkham said.
The overall document outlines what was expected from developers vying for the Squamish oceanfront deal. Applicants were asked to include a company and team profile, development concept, transaction structure and conditions precedent.
The RFP also included two of the SODC’s transaction objectives. The first one was to sell the land or enter into a development joint venture with a company who had the financial capability and experience to complete the timely development of a world-class project — including keeping within the guidelines set out in the Oceanfront Peninsula Sub Area Plan which dictates the development consist of a third park, a third residential and a third commercial and industrial. The second objective required the elimination of the district’s entire $11 million debt obligation in regards to property. Applicants had to explain in detail how they were going to meet both objectives.
The document stated the process was “being conducted in a confidential manner.” Proponents were not allowed to release any information to the public without prior written consent of the SODC.
“SODC may disqualify any proponent who contravenes the confidentiality and public conditions,” the RFP stated.
The SODC hired real estate agency Cushman and Wakefield to market the property to the world and invite proponents to come to the table. Council was intentionally removed from the process, Kirkham said. While Kirkham said he met with both proponents to talk about unrelated business before council selected an oceanfront developer, he never spoke to them about the property.
“There was no opportunity for undue influence,” he said.
Council selected the developer based on legal advice, financial feedback, engineering department input and expertise from the development industry, Kirkham said.
With the exception of Coun. Ted Prior, who could not vote due to a conflict of interest, all council members had their say. Ultimately it was council’s decision, he noted.
“We had been investigating this and looking into it from the community’s perspective and from the District of Squamish perspective on how it would impact the district,” Kirkham said. “So it wasn’t simply a matter of SODC’s recommendation. It was all these other considerations we had to take into play.”
An RFP provides equitable information to all involved and clearly outlines the selection process and next steps, the district’s acting chief officer Linda Glenday stated in an email to The Squamish Chief.
“The intent of an RFP is to create a fair and objective process and remove any situation where one party may have access to more/different information than another,” Glenday said.
Cushman and Wakefield has not been involved in detailed discussion since a developer was selected, the company’s vice president Mike Gallagher said. The company completed a full marketing program on the property, exposing it to the world-wide market, he said.
“We generated interest out of our marketing efforts, clearly, and then ultimately the decision was made by the group that we report to,” Gallagher said.
There was no discussion with officials as to the company’s involvement following the selection, he noted.
Coun. Patricia Heinztman did not return a request for comment before press deadline.
