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HomeMy WebLinkAboutAddendum to RFP for Fire Station 1 SaleAddendum to the Call for Offers for the Sale of Fire Station 1 Property February 2, 2022 The City of Bozeman (“City”) issues this Addendum to its Call for Offers for the Sale of Fire Station 1 issued in August, 2021. The City is currently seeking approval from the Downtown Urban Renewal Board, the Bozeman Transportation Board (acting as the Parking Commission), and the City Commission to offer two incentives to ensure the long-term availability of affordable housing units on the Fire Station 1 property (the “Property”). At this time, neither of the potential incentives described below have received final approval but the City Manager anticipates the approval processes will be completed prior to the City entering into a purchase and sale agreement. If the City’s selected proposal relies on the incentives described below these items will be included in the purchase and sale agreement. The City requests responses to this Addendum no later than 12:00 PM (noon) on Tuesday, February 22, 2022. Responses to this Addendum should address how a buyer would provide affordable housing on the Property in consideration of the following incentives. The incentives the City Manager is currently seeking approval to provide at the time of future development of the Property include: • $1.6 million in project subsidies from the Downtown Bozeman Tax Increment Financing District for eligible project related expenses as provided for in 7-15-4288, MCA. • The City would provide the opportunity to enter into long-term leases for up to twelve (12) off-site parking spaces in a City operated parking facility as allowed by Sec. 38.540.070, BMC. At the discretion of the City, the spaces may be available in the Rouse Ave. lot, and the City may also consider allowing a shared parking agreement for spaces at Bozeman City Hall. Lease payments would be the responsibility of the owner at rates normally charged the public, which are currently $60/month and are subject to annual increases. Leases would not be for dedicated spaces in these facilities. Lease payments would begin at the time of occupancy of future development on the property. The parking lease incentive will only be available if redevelopment of the Property requires the use of these spaces. In addition, these spaces are only available as the “last in” spaces; meaning, other reductions from minimum parking requirements must be considered and, if possible, used prior to reliance on the parking spaces available under this incentive. The above incentives, if approved, would be available at the time of occupancy of redevelopment of the Property subject to the City and buyer entering into an agreement that would reimburse the purchaser/developer for the costs of installation of public infrastructure or other coats authorized by 7-15-4288, MCA at the time of submission of a site plan application for redevelopment of the Property. If redevelopment does not occur within two years from the date of closing, the above incentives will expire. In considering the above possible incentives, the City requests you indicate in your response how many affordable housing units you would provide, at which price points, and for what duration. In your response, please clearly describe the proposed deed restriction or covenant commitments. Specifically, the City requests you provide sample language that would ensure the long-term affordability of these housing units and how the units will be managed and resident eligibility verified. The deed restriction or covenant will be a requirement of the purchase and sale agreement and must be executed and be recorded at the time of closing. Any proposal under this addendum must also recognize the City may not sell real property for less than 90% of the appraised value; as such, the proposal must include a cash purchase component for at least 90% of appraised value. The appraisal for the Property can be found here or available from Ryan Springer at the contact information provided below. The City Commission must approve the purchase and sale agreement by ordinance. The Commission’s consideration of the ordinance will occur on Tuesday, March 8, 2022. The City will allow a limited due diligence period after the effective date of the ordinance approval the purchase and sale agreement not to exceed 45 days with closing to occur on or about June 15, 2022. The City reserves the right to consider submissions to its original Call for Offers in addition to any submissions under this Addendum. The City may reject any offer or negotiate with any person or entity who has submitted an offer under this Addendum or prior to the issuance of this Addendum or after the issuance of this Addendum. The City reserves the right to negotiate a cash-only agreement with any person or entity submitting under the original Call for Offers or this Addendum that does not include an affordable housing component in reliance on the incentives described above. All materials in response to this Addendum must be emailed to Ryan Springer, Sterling CRE Advisors, at Ryan.Springer@SterlingCREadvisors.com by 12:00PM (noon) on Tuesday, FEBRUARY 22, 2022. All submissions are considered public information and subject to public disclosure. Questions about this process may be directed to Mr. Springer at this email address or 406-579-5586.