HomeMy WebLinkAboutDetermination re: City Hall facilityCommission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Chris Kukulski, City Manager
SUBJECT: Determination whether or not real property owned by the City of
Bozeman, known as the current City Hall facility located at 411 East Main
Street, is necessary to the conduct of City business
MEETING DATE: July 14, 2008
RECOMMENDATION: Conduct a public hearing. If the Commission determines the
subject property is not necessary to the conduct of City business, find that the property
may be disposed of by negotiated sale. If such a finding is made, direct staff to proceed
with the Request for Proposal process and eventual negotiated sale of the subject property
under the provisions of Chapter 2.05 of the Bozeman Municipal Code.
BACKGROUND: The City is in the process of renovating the old Bozeman Public Library
into a new City Hall facility. Expected completion date for the project is mid-September, 2008.
If the Commission determines the subject property is not necessary to the conduct of City
business, the City intends to offer for sale the current City Hall building which consists of
approximately 13,160 sq. ft. (6,790sq. ft. above grade and 6,370 sq. ft. below grade) of
commercial space located on lots 10-14 in Rouse's 1st Addition to Bozeman, Block F, Section
7T2S R6E; Bozeman, Gallatin Co., Montana. The aggregate square footage of lots 10 – 14 is
20,625 sq. ft. The space fronts Main Street to the south and Rouse Avenue to the west with
parking to the north and lawn to the east. The subject property is currently Zoned B-3, Central
Business District.
Presently, the current City Hall facility shares utility feeds, including electrical, heating and
ventilation services with adjacent property to the north, Bozeman Fire Station No. 1. Domestic
water, electrical service, steam heating lines, and cooling well water for the air conditioning
system run through a north/south access tunnel beneath the north parking areas and physically
connect the current City Hall facility and Bozeman Fire Station # 1. The eventual buyer will be
responsible for severing, relocating and reestablishing all services currently shared. The
severance and reestablishment of services will be coordinated between the buyer and appropriate
City staff so that activities in Bozeman Fire Station # 1 will continue without interruption of
services or suffer adverse impacts.
FISCAL EFFECTS: Action on this item is necessary in order to sell the current City
Hall facility. The FY08 budget anticipated $1.68 Million would come from the sale of the
current City Hall facility and/or the Story Mansion in order to fund the remodel of the old library
building on Lamme Street into the new City Hall. The new City Hall remodel budget
authorization is for up to $2.1 million for phase I renovations to the old library/new City Hall
facility.
Since the FY08 budget was adopted, the Commission took action retain the Story Mansion
leaving the sale of the current City Hall facility as the remaining source of funding for the
remodel of the old library into the new City Hall facility. The new City Hall facility remodel
project is scheduled for completion in mid-September 2008 and is currently on schedule to meet
this completion deadline.
ALTERNATIVES: As suggested by the City Commission
Respectfully submitted,
__________________________
Chris A. Kukulski, City Manager
Attachments: (1) Request for Proposals for purchase of the sale of the old City Hall located at
411 East Main Street; (2) Sale Evaluation Criteria; (3) current City Hall floor plans; and (4)
current City Hall parcel map
City of Bozeman
Request for Proposals for Purchase of the current City Hall
building located at 411 East Main Street, Bozeman, Montana
The City of Bozeman (City) is accepting proposals for the purchase of the current City Hall building
located at 411 East Main Street.
To meet the deadline for initial consideration, hand delivered proposals must be received no later
than 5:00 P.M., MDT, Friday, August 1, 2008, at the office of the City Clerk, 411 East Main Street,
Bozeman, MT 59715. Mailed proposals must be received by this time and date for initial
consideration. However, proposals will be accepted and considered until a successful proposal is
selected. The U.S.P.S. mailing address for proposals is: City Clerk, City of Bozeman, P.O. Box 1230,
Bozeman, MT 59771. The physical address, for express deliveries, is 411 East Main Street,
Bozeman, MT 59715. Please state “Current City Hall Purchase Proposal” on the outside of the
package. No faxed or electronic submissions will be accepted. Seven (7) copies, (one original and six
copies), of each proposal must be submitted.
Copies of building photos, floor plans and/or the current lot layout may be obtained from the Office
of the City Clerk, 411 East Main Street, Bozeman, MT. Additionally, addendums, if any, and
evaluation criteria may be obtained from the Office of the City Clerk or on the City website at
www.bozeman.net. Addendums, if necessary, will be posted on the City website as soon as possible.
After obtaining a package please direct all questions to the City of Bozeman, Attention: Brit
Fontenot, Assistant to the City Manager, City of Bozeman, P.O. Box 1230, Bozeman, MT 59771, or
by phone at (406) 582-2258 or e-mail at bfontenot@bozeman.net .
The City requests that interested individuals or firms limit their contacts to the Assistant to the City
Manager listed above in the interest of maintaining a consistency of response and fairness to all
respondents.
PROJECT DESCRIPTION: The City is in the process of renovating the old Bozeman Public
Library into a new City Hall facility. Expected completion date for the project is mid-September,
2008. The City is offering for sale the current City Hall building consisting of approximately
13,160 sq. ft. (6,790sq. ft. above grade and 6,370 sq. ft. below grade) of commercial space
located on lots 10-14 in Rouse's 1st Addition to Bozeman, Block F, Section 7T2S R6E;
Bozeman, Gallatin Co., Montana. The aggregate square footage of lots 10 – 14 is 20,625 sq. ft.
The space fronts Main Street to the south and Rouse Avenue to the west with parking to the
north and lawn to the east. Currently, the facility shares electrical, heating and ventilation
services with adjacent property to the north (Bozeman Fire Station No. 1). The buyer will be
responsible for severing, relocating and reestablishing all services currently shared. The facility
is currently Zoned B-3, (Central Business District).
SPECIAL CONDITIONS: Utility feeds for the current City Hall run through the property to the
North (Bozeman Fire Station #1). Domestic water, electrical service, steam heating lines, and
cooling well water for the air conditioning system run through a North/South access tunnel
connecting the current City Hall and Bozeman Fire Station # 1beneath the north parking areas.
Proposals should clearly state any anticipated utility needs for the current City Hall property. The
City’s preference is to sever the conjoined connections and , once sold, re-establish new services for
the current City Hall building. This work should be coordinated with the seller (City) so that
activities in Bozeman Fire Station # 1 will continue without interruption of services. The buyer will
be responsible for severing, relocating and reestablishing all services currently shared with Bozeman
Fire Station # 1. Additionally, the North/South tunnel shall be demolished and filled in an
appropriate manner.
INTENT OF RFP: The City of Bozeman will evaluate each qualifying proposal based on the total
purchase price and proposed financing terms. The City seeks proposals that maximize the sales price
for the property and expedite the related sales process. Final terms and conditions of the sale will be
negotiated with the successful applicant.
Any proposed use of the property that does not meet the current zoning designation (B-3) may be
conditionally accepted pending City Commission consideration and approval of a formal request for
rezoning through the regular review process outlined in the City’s Unified Development Ordinance
(Title 18 of the Bozeman Municipal Code). Any parking needs related to the proposed uses of the
property will need to be provided according to City regulations.
PROPOSAL CONTENT AND INSTRUCTIONS TO RESPONDENTS (PURCHASE):
1. Proposals will clearly state total purchase price offered, and dollars-per-square-foot
equivalent.
2. Proposals will provide a detailed description of the expectations, responsibilities or actions
of the City of Bozeman necessary for the sale of the property and any anticipated special
conditions related to the sale.
3. The successful proposal for purchase of the property must demonstrate progress in
concluding the transaction according to the following schedule:
a. Earnest money in an amount representing three [3%] percent of the total purchase
price offer shall be deposited into an interest-bearing escrow within five (5) working
days of proposal selection. The escrow agent shall be Insured Titles of Bozeman,
Montana.
b. If the project is to be financed, Buyer shall provide a lender’s letter of loan approval
within 21 calendar days of a purchase offer accepted by the City.
c. In all cases, proposals will include a Buyer’s full financial disclosure addressing
Buyer’s ability to perform on the purchase offer.
d. Accepted proposals will be transformed into formal Buy-Sell offers within 7 business
days of City acceptance.
4. Final closing will occur at the stipulated title company within forty-five (45) days of the
City’s formal approval of project completion after which time, but prior to closing, Buyer
shall have access to the subject property to conduct its due diligence. A Buyer’s due
diligence contingency shall have a release date 30 days past the date of selection by the City
of Bozeman.
5. The City welcomes offers from real estate professionals but will not be responsible for a
sales commission payment.
GENERAL
1. Proposals should be clear and concise and will be evaluated using the above criteria.
2. Selection of the finalist(s) will be completed by a selection committee representing the City.
The selection will be based on an evaluation of the written responses to the Request for
Proposals. The award will be made following contract negotiations with the respondent
whose proposal is deemed most advantageous to the City.
3. All proposals must be submitted complete and contain the information required as stated in
this Request for Proposals.
4. Interested parties may request an inspection and walk-through of the building and property
by contacting the Assistant to the City Manager at (406) 582-2258 or via e-mail at
bfontenot@bozeman.net
5. The City of Bozeman reserves the right to reject any and all responses and/or to sell or lease
the property to the party submitting a proposal for the use and development of the property
which provides the greatest benefit to the City.
6. The City of Bozeman does not discriminate on the basis of race, color, religion, creed, sex,
age, marital status, national origin, political ideas, or disability in employment or the
provision of services.
Publish:
Sunday, July 20, 2008
Sunday, July 27, 2008
R F P Evaluation Criteria
Sale of the current City Hall
411 East Main Street
Bozeman, Montana
Total Score____________
Date_________________
NAME OF RESPONDENT: ______________________________________________________
Application Complete: YES____________ NO____________
COMMENTS:
I. Proposal Clearly States the Purchase Price and the Square Foot Equivalent (50 points
possible) Points Received_____
a. Stated offer clearly indicates the purchase price and square foot equivalent
b. States prices are within the range of estimates.
c. Terms of the sale are clearly stated and meet the needs of the City’s schedule.
COMMENTS:
II. Expectations and Responsibilities of the City (100 points possible) Points Received_____
a. All special conditions are clearly identified and explained.
b. Conditions outlined are reasonable and will not have an undue burden on the City.
c. Conditions will not have a negative impact on the relocation of City Hall to the new
City Hall facility or adversely impact Bozeman Fire Station # 1.
d. Any special conditions outlined by the potential buyers are reasonable and
acceptable.
e. Proposed sale does not include any expectations, requested responsibilities or further
action by the City of Bozeman in order to complete the sale.
COMMENTS:
III. Timeline for Development (50 points possible) Points Received_____
a. Timeline for the sale has clearly stated dates.
b. Timeline is reasonable and allows for a clear change of ownership and development
in a timely fashion.
COMMENTS:
Reviewer’s Name ________________________________________________________
ROUSE ADDITION TO BOZEMAN
BlockF Lot LOTS 10-14
Township0799 Section07 Quarter Section1
Geocode06079907109010000
TaxcodeRGH33774
Zoning B-3
Legal 1ROUSES 1ST LOTS 10-19 BLOCK
F
Legal 2CITY HALL
Legal 3 Owner CITY OF
BOZEMAN
Mailing AddressPO BOX 1230
CityBOZEMAN
StateMT
Zip59771
Physical Address411 E MAIN ST