CAPE ELIZABETH — In the wake of last year’s affordable housing controversy, town officials are trying to sweeten the terms in their search for a consultant to conduct a housing diversity study after no one responded to the first request for proposals.
The town issued a second RFP on Wednesday, increasing the funding for the study from $20,000 to $50,000 and moving the completion deadline from May 15 to Aug. 30.
The goal is to attract more interest than the RFP issued Nov. 8, which drew no responses by the Jan. 7 deadline.
Town Planner Maureen O’Meara advised town councilors to recast the RFP to recognize the impact of a tight job market and community sentiment against local firms that might have responded under different circumstances. O’Meara didn’t name the local firms.
“All sectors of the economy are experiencing labor shortages,” O’Meara said in a memo to the council. “In addition, many community members have made comments disparaging the local consultants who would normally have been expected to submit a proposal. Consequently, this RFP will need to be competitive to attract consultants outside the area.”
O’Meara noted that South Portland is wrapping up a similar study that’s expected to cost $30,000, but the city’s planning staff is handling public interactions related to the study. During a workshop last week, the council directed municipal staff to craft a second RFP with a “somewhat larger budget” and longer timeline.
In November, The Szanton Co. of Portland suddenly dropped its proposal to build a 46-unit apartment complex next door to Town Hall and the new Village Green. Opponents had fought the project for months, then gathered enough signatures to force a referendum on recent zoning amendments that made construction possible.
The Szanton Co. wanted to build Dunham Court next to the historic Town Hall and new Village Green in Cape Elizabeth. The developer dropped the $13.5 million project last year in the face of ongoing opposition. Architect’s rendering courtesy of The Szanton Co.
Dunham Court would have been the first affordable housing project in Cape Elizabeth in 50 years and came at a time when affordable housing has become extremely scarce in Cape Elizabeth and throughout Greater Portland.
Supporters thought the town center was exactly where an affordable housing project should be, within walking distance of the local supermarket, pharmacy, public schools, community center, police and fire station, and Thomas Memorial Library. But the $13.5 million project drew significant pushback from opponents who criticized its location, size, subsidized financing through MaineHousing and request for a tax break from the town.
The council has scheduled the referendum on the zoning changes for next Nov. 8, during the state’s general election, to determine whether the amendments should remain in place and affect future development in the town center. Szanton sought the amendments so the project could have exceeded height and density limits and wouldn’t have required commercial tenants on the first floor.
In the meantime, town officials are pressing ahead with plans for a housing diversity study that was recommended in the town’s 2019 Comprehensive Plan.
According to the RFP, “the study should evaluate current housing costs, needs, impacts on services and other relevant elements in the town and recommend actions to create more affordable and attainable housing opportunities.”
The consultant will be expected to develop a list of options for land use regulations that would align town development requirements with affordable housing targets.
“Options should be wide ranging and potentially include affordable housing creation methods not currently in use in the town,” the RFP states. “Options should align with available affordable housing funding programs, reflect the limited amount of land available for development and ready availability of infrastructure.”
The consultant also will be expected to develop a list of other affordable housing production options, including the use of municipal land, town purchase of land for affordable housing and transfer payments to other communities that create affordable housing.
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