Loading...
HomeMy WebLinkAbout02-20-07 Item 2D, Sale of City-Owned Property Procedures , ~ ~ EN HILLS MEMORANDUM DATE: February 20, 2007 Agenda Item 2D TO: FROM: Mayor and City Council Michelle Wolfe, City Administrator Karen Barton, Community Development Director WO--- SUBJECT: Process & Procedures for Sale of City-Owned Property In an effort to establish formal procedural guidelines for the sale of city-owned property, staff is presenting several options to Council for comment and feedback. OPTION ONE: Formal Request for Proposal (RFP) process without development specifications (Please see attachment A for example) The City may wish to issue an RFP to gamer proposals from qualified developers relating to development/redevelopment of the property simply relying on zoning requirements to guide the plans. PROS: This option allows for maximum flexibility and creativity, within zoning guidelines, on the part of the developer. CONS: The City foregoes a certain amount of control in the development of the property, relying solely on zoning to guide the plans. City of Arden Hills CiW Council Work Session February 20, 2007 I\Merro-ineLuslardenhilfs\PJanning\CommunifY Developmenl\Council Agenda IremslProcc-ss & Procedures for Sale afCity-owned Property fJZ2007_doc Page I of2 i , OPTION TWO: Formal RFP process with development specifications (Please see Attachment B (or examvle) In this option, the Cily would prepare development guidelines for the redevelopment of the property. These guidelines can range from somewhat general (i.e., simply specifying the building types and densities) to very detailed (i.e., specifying design guidelines including finishes, signage, amenities, in addition to building types and densities). PROS: The City has the opportunity to create development guidelines for the property that are compatible with and desirable to the surrounding neighborhoods, taking into consideration such things as traffic generation, noise, visual impacts, etc. CONS: Development guidelines set by the City may be deemed too restrictive to attract economically feasible development proposals. OPTION THREE: Market and seUland through real estate broker In this option, the City would simply hire a real estate broker to market and sell the property to a qualified purchaser. The City would have minimal control over future development of the property in this scenario. PROS: Minimizes staff time and city costs in disposing of the property. CONS: The purchaser would have the option to develop the property by going through the City's planning process, or may simply choose to hold the property in its current state, or even re-sell the property. Staff recognizes the importance of public involvement in the disposition and redevelopment of city-owned property and will ensure that regardless of what type of process is selected, public input will be a significant part of the development planning process. Staff is requesting Council provide feedback on these options and direct staff to prepare procedural guidelines for the disposition of city-owned property. City of Arden Hills City Council Work Session February 20.2007 \\Metro-iller.u.slardenhiflsIPlanningICommunity Del'e1opmenl\Council Agenda ItemslProcess & Procedures for Sale ofCiry-owned Property 022007.doc Page 2 of2 , . Council Work Session Agenda Item 20 February 20, 2007 ATTACHMENT A > SARTELL, MINNESOTA Permitted Uses: Single Famih- Homes, Twin Homes, Town Homes, Aparr- menrs, Public/Private Elementary and Secondary Schools, Churches, Post Secondary Schools and Colleges, State licensed Davcare and nursery School Facilitics (J 6 or fewer persons), State Licenscd Residential Facility (J6 or fewer persons). AppJicable Regulations: 1. General Zoning and Subdi\'ision Requirements (R-3)* 2. Wetland setbacks * 3. Life Cycle Housing Requirement. * 4. Payment In lieu Dedication Requirements* 5. Trail/Sidewalk Requirements* 6. Public Road Right of Way Requirement (Heritage Drive and Internal Roads) Wetland Information: ,-\pprm'ed \Vetland Delineation* completed in Decem- ber 2002. The City of Sarrell has a wetland protecrion ordinance and is the LG U for aU \X'CA permits. An Army Corp of Engineer~s Permit may be necessary if there are any impacts to the wetlands. Proposal Submission Requirements: . Sealed proposals '\l,,-iU be accepted until the time of proposal opening at 2:00 p.m. on Monday, August 16,2004, at SandI City Hall. The Proposal will be reviewed by an ap- pointed subcommittee for eyaluanon and recommendation to the Gty Council. The City Council's approval of a specific proposal is subject to successful negotiation of a Developees Agreement. ** . Proposal submission documents must be completed in its entirety listing the [Otal pur~ chase price for the property. ,-\ proposed development concept plan must also be in~ eluded \\ith the submission. . Closing date must be on or before December 30, 2004, with payment in full provided at the time of dosing. . City shall allow buyer and its agents access to the subject property \vithout charge and at all reasonable times for the purpose of im'esrigation and testing with said costs and expenses solely the responsibility of the buyer. . AU rdevam and customary de\-elopment related fees and development requirements will be required for the proposed development of the property. . The City reserves the right to reiee[ all proposals and offers for the subject property. . The City of SarreU will be reraining the fencing located on the property. *-*Proposals will be c\-aluated on a number of criteria including (but not limited to:) 1. Ecunomic and community benefit to Sa nett 2. Impact on adjacent proper~'. 3. Aesthetics of the de'\.e1opmcnt. including site and building plans. 4. Intended development [imelinc. 5. Responsiveness to requirements of [he Request for Proposals. , Council Work Session Agenda Item 20 February 20, 2007 ATTACHMENT B CIIT OF OAKDALE, MINNESOTA REQUEST FOR SITE-SPECIFIC PROPOSALS THE DEVELOPMENT OF THE OAKS BUSINESS PARK LOCATED ON 4TH AVENUE NORTH AND HELMO A VENUE TABLE OF CONTENTS I. Introduction II. Development Guidelines III. General Instructions IV. Land Price V. Performance Guarantee VI. Selection Process 1 , I. INTRODUGrION Congratulations! You have met all of the requirements in your Request for Qualifications and have subsequently moved foreword to the proposal stage. In keeping with our application process we now invite you to submit your Request for Proposal. As you know the parcel of land designated for this project is what the City refers to as The Oaks Business Park ("The Oaks") located on 4th Avenue North at Helmo Avenue in Oakdale, Minnesota. The property is excess property from the improvement to 1-94 sometime ago. The total site is located south of 4th Avenue North at Helmo, north of 1- 94 and west of 1-694, all \~ithin the City of Oakdale, Minnesota. The parcel has extensive visibility to 1-94. It is the City's hope that this visibility will be taken into consideration with the development ideas of The Oaks. The site is approximately 22.5 acres and is currently in the process of being purchased from the Minnesota Department of Transportation (MNDOT). With this in mind we ask that all submissions be in-depth, site-specific proposals. II. DEVELOPMENT GUIDELINES ~ Provide for a business and office park with a variety of office/industrial uses. The City does not envision any residential development taking place with in the office/industrial park. ~ Maintain high architectural standards with specific reference to sites with a view of 1-94. 2 , ~ Provide for an overall plan of development with public streets and open space to facilitate the development of the parcel in accordance with a master plan for The Oaks. The roadway plan must also provide for right-of-way for an overpass at the Helmo Avenue extension. ~ Provide for at least one major business center to focus on the vision of the overall business park development. ~ Ensure that signage, character of the building design and the selections of all building materials reflect the overall theme and upscale nature of The Oaks. ~ Provide maximum creation of green space areas, fountains and other amenities such as plazas and other architecturally pleasing features that will add to the overall upscale nature of The Oaks. NOTE: The city has a comprehensive plan, as well as extensive zoning ordinances with requirements that must be met. It is anticipated that this development would be a planned unit development (PUD), which would allow for flexibility in the design, character and nature of the overall business park. These plans are available at City Hall and should be considered a part of this Request for Proposal. III. GENERAL INSTRUCTIONS Candidates should supply to the City their signed proposal and at least eight copies with all supportive documentation that they desire to submit in a sealed envelope by the specific date and time noted below. Candidates may provide whatever information they so deem for consideration of their 3 < proposal. The City shall not return any materials provided. The City reserves the right to reject any or all of these proposals. Proposals must be delivered to the City on or before 4:30 p.m. local time, January 30, 2004. They shall be delivered to Oakdale City Hall, 1584 Hadley Avenue North, Oakdale, Minnesota 55128. The envelope should be marked as a proposal for The Oaks and should be at the attention of Dan Hartman, Assistant City Administrator. Each proposal must contain: 1. A completed "offer to purchase" for the property that the City is in the process of purchasing from MNDOT (legal description provided with the required financial guarantee). 2. A narrative description of the developer's concept for the development of The Oaks. In addition the description should be expanded to entail an entire master site overview specifically noting where individual facilities, developments and roads will go. The developer must also provide a timetable for the development noting specific items such as the purchase of the neighboring property, the development of the public improvement infrastructure and the marketing of the appropriate sites within the development. The City also requests an alternative plan in the instance that the neighboring property remains unavailable for purchase in a timely manner. It would be appropriate to provide schedules and drawings showing site 4 , development for the specific areas within The Oaks with a sell out or lease up plan for the business park. Please provide descriptions of the type of uses on the property including an estimation of value at completion. The City will take retum on investment in terms of the development of the business/office park, creation of jobs, types of jobs with anticipated wage level (both as construction and final built out stage) into consider as a part of its review. 3. A site plan design consisting of drawings and maps showing building locations, building elevations, parking areas, etc., should be provided for the City's review. A specific note as to how and where Helmo Ave. will be integrated should also be provided for the overpass. The City Engineer will provided a topographic map of the site and should be ~ \ J consulted in terms of public improvement to the property. 4. A statement must be provided describing the project financing, including sources and use of funds indicating equity participation from private sources. In addition, a breakdown of how much public and private financing will be involved should also be included. It would also be appropriate to note in what ways the City Of Oakdale will be asked to help with the funding. It is appropriate to provide a preliminary development pro forma. It would also be appropriate to show rationale for any City assistance asked for in the land acquisition/construction of public facilities or for the approval of tax- 5 '. exempt revenue bonds financing. It is important for the City to create its own equity position in the development of The Oaks if public financial assistance is required for the development. 5. The City is willing to consider the use of public funds on this project through the issuance of tax-exempt revenue bonds, the opportunity for grant programs at the federal and state level, as well as the use of tax increment financing or tax abatement financing to develop the site. The use of public funds can be used only for public improvements required of the business park. It is important to note that the city, through the use of direct or indirect financial assistance, will require some type of equity position in the development. The equity will provide the City with security for its public assistance and make sure that the development is constructed according to the overall design and planning requirements ofthe developer. IV. LAND PRICE The City shall ask a fair market value for the purchase of the parcel it is purchasing from MNDOT. The City shall sell the parcel at this time but will require that the developer provide a funding guarantee to make sure the overall site will be obtained and the development is in accordance with the site-specific master plan. The land price will be determined by an 6 . independent appraisal performed for the City. An Environmental Impact Phase I Study has been completed and win be made available. V. PERFORMANCE GUARANfEE A development agreement win require to be entered into by the successful developer and the City with adequate guarantees and security for the planned development of The Oaks. The contract will require evidence of financial commitment in the form of financial commitments from equity sources and lenders prior to the sale of the property to the developer and before the City provides public improvements to the site. VI. SELEGrION PROCESS 1. The developers that met the Request for Qualifications are subsequently, moved foreword to the proposal stage. 2. The Advisory Committee meets to be apprised of which developers met the qualifications. 3. The developers that met the qualifications win be asked to develop a comprehensive proposal. This will include items ranging from the site plan to the expected financing scenario. 4. The Advisory Committee reviews and subsequently, ranks the proposals. The City Council win than approve the ranking. 7 , 6. Staff proceeds to formulate a development agreement with preferred developer. 7. Subsequent to the signing of the development agreement, the City effectuates the letter of credit or check and, in effect, is taken out of the MnDOT costs. The developer's financial viability and previous track record will also be considered in terms of implementation of the project. Financial viability will include the nature of private financing, the amount of public expenditures required, the basis of recaptured funds of the City's expenditures, schedule of commencement and completion of the development itself and the security to be provided to assure successful completion of the development. NOTE: When proposals are received, it may become clear that additional information is required for the analysis. City staff reserves the right to require additional data, if needed, to be able to complete its analysis. Questions regarding this RFP should be addressed to: Dan Hartman, ACA City of Oakdale, MN 1584 Hadley Avenue North Oakdale, MN 55128 (651) 730-2809 email: dan\a>ci.oakdale.mn.us 8