HomeMy WebLinkAboutDecision on Request for Proposals to Purchase or Obtain by Gift the Story Mansion Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Chris Kukulski, City Manager SUBJECT: Request for Proposals to Purchase or Obtain by Gift the Story Mansion
DATE: May 20, 2013
RECOMMENDED MOTION: I move to authorize the City Manager to release the proposed request for proposals to purchase or obtain by gift the Story Mansion and associated property
located at 811 South Willson Avenue.
BACKGROUND: The attached request for proposals (RFP) is consistent with the City Commission’s direction during the April 8, 2013 public hearing. The RFP emphasizes the acceptance of proposals from individuals and groups who propose to purchase the property at a
"market price" (no less than 90% of its appraised value) AND groups seeking to purchase the
property under the historic preservation criteria pursuant to Chapter 2, Article 6, Division 5 of
the Bozeman Municipal Code. Section 2.06.870 D states “If the city owns property containing a historically significant building or monument, the city may sell or give the property to nonprofit organizations or groups that agree to restore or preserve the property.”
Proposals will be accepted until the City Commission selects a suitable buyer for continued
negotiation. Initial review by the City Commission will take place on proposals received by 5 p.m. on June 28, 2013 with review taking place within sixty days.
UNRESOLVED ISSUES: The timing and need for an appraisal of the property is unresolved.
I suggest we DO NOT get an appraisal until after the Commission determines the winning
bidder. I believe the market value is best determined by an appraiser AFTER we receive a market offer on the property, and if the commission chooses to transfer the ownership of the property to an individual or group who commits to protect and preserve the historic asset, an
appraisal will not be necessary.
FISCAL EFFECTS: Once sold the revenue from the sale can be utilized to help pay for expenses facing the city’s general fund. I recommend the money be earmarked to help pay for the replacement of Bogert Pool or the new Police Station and Municipal Court facility.
ALTERNATIVES: As determined by the City Commission.
ATTACHMENTS: Draft Request for Proposals
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City of Bozeman, Montana
Request for Proposals to Purchase or Obtain by Gift the Story Mansion
The City of Bozeman (City) is currently accepting proposals from individuals or groups seeking to
purchase or obtain by gift the historic Story Mansion located at 811 South Willson Avenue and
associated real property (Property) pursuant to Chapter 2, Article 6, Division 5 of the Bozeman
Municipal Code. Under municipal code the City can transfer ownership of the Property through one of two approaches. The first approach is to receive proposals to purchase the Property at “Market” (for no less than 90% of the appraised value) and the second approach seeks proposals to purchase the Property
or receive it by gift at below appraised value for purposes of historic restoration and or preservation.
The City Commission reserves the right to accept, add conditions to, or reject any proposal. A purchase and sale agreement for transfer of the property must be negotiated and entered into by the City and the selected entity.
Proposals will be accepted until a suitable buyer is selected for continued negotiation. Initial review of
proposals will take place on proposals received no later than 5:00 P.M. June 28, 2013 at the office of the City Clerk, 121 North Rouse Ave., Bozeman, MT 59715. The mailing address is: City Clerk, City
of Bozeman, P.O. Box 1230, Bozeman, MT 59771. Electronic submissions may be sent to
agenda@bozeman.net. Please state “Story Mansion Purchase Proposal 2013” on the outside of the
submittal or the subject line. Submissions will be accepted after this date but may not receive review.
Documents related to the Property are available for review at the City Clerk’s office, 121 North Rouse Avenue, Bozeman, MT and on the City of Bozeman’s web page at www.bozeman.net. Please direct all
questions regarding this RFP to Chris Kukulski, City Manager, City of Bozeman, P.O. Box 1230,
Bozeman, MT 59771. Telephone: (406) 582-2306. Email: ckukulski@bozeman.net. For serious
inquiries only, tour of the Property may be arranged by contacting James Goehrung, Director of Facilities, at jgoehrung@bozeman.net or by calling (406) 582-3232.
Further Details:
The Property is listed on the National Register of Historic Places and was built by T.B. Story in 1910 and purchased by the City in 2004 for $1,316,489. The Property consists of grounds, a Mansion building and an accessory detached Carriage House and is zoned R-1 (residential single-household low density).
Currently, the first floor of the Mansion is operated as a community center pursuant to an approved
conditional use permit.
Since the purchase in 2004, the City has invested approximately $2.2 million into restoring the Property including renovations to the first floor, basement, and exterior of the Mansion. The funds used for
restoration have included various federal and state historic preservation grants. As a condition of these
grants, the selected purchaser must comply with all requirements of two easements that have been
placed on the property. The first is a 50-year easement (Gallatin County Clerk and Recorder document number 2338483) with approximately 46 years remaining and the second is a five-year historic
preservation easement with the State of Montana with approximately one year remaining.
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In addition to the easements, for submissions seeking to obtain the property by gift or reduced price the
selected entity will be required purchase the Property subject to a reversion to the City for
noncompliance with conditions attached to its transfer.
The City makes no representations or assurances regarding any aspect or condition of the Property. The buildings may contain asbestos or other environmentally sensitive substances. Subject to applicable
law, the purchaser or grantee will be solely responsible for compliance with all federal, state and local
laws concerning these substances, if any. Interested parties must perform their own due diligence to
ascertain Property condition. Each entity interested in obtaining the Property must submit a written proposal and provide or
demonstrate the following:
1. A narrative describing the purchaser or entity’s legal name, primary contact person, address, telephone number and email address.
2. The submitting entities suggested purchase price and whether the submitting entity proposes to
purchase the Property at a market price or seeks to obtain the Property as a gift or upon reduced
purchase price. 3. A detailed plan for current and future use of the Carriage House, the Mansion, and the grounds
within the confines of existing zoning requirements. The plan must include how the Property will
be preserved and restored and a timeline for restoration accompanied by a statement indicating
the submitting entity agrees to restore and preserve the Property subject to all federal, state, and local easements or restrictions for historic preservation and all applicable building codes.
4. The submitting entity has sufficient funds to obtain ownership of and preserve the Property, and
restore the Carriage House and the second and third floors of the Mansion.
5. That the submitting entity agrees to enter into good faith negotiations regarding a purchase and sale agreement that will include terms as identified herein and those established by the Bozeman
City Commission.
The City Commission will evaluate all proposals and may select a proposal that will best serve and further the public interest.
Evaluation Process
The City will evaluate each proposal on the information provided therein. The City Commission will
review proposals within sixty days. Respondents will be notified by email of the date of the
Commission’s consideration. The City Commission will then determine whether to direct the City Manager pursue additional negotiation with one or more respondents.
Confidentiality and Disclosure of Information
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Each entity submitting under this RFP agrees the information it submits is a public record. Submitting
entities should take appropriate steps to limit information it considers confidential. Each respondent
agrees the City shall not be liable for disclosures of confidential information if disclosure of such
information is required by law. Reservation of Rights
The issuance of this RFP and the receipt of proposals by the City shall not constitute an agreement
or representation by the City that a contract for the purchase of the Property will actually be
entered into by the City. Through this RFP the City is only soliciting proposals from interested
parties regarding their interest in purchasing the Property – this RFP is not to be construed as an offer by the City to sell the Property.
The City reserves the right to issue written notice of changes to the submittal process should the
City determines in its sole and absolute discretion that such changes are necessary or desirable.
In addition and notwithstanding any other provision of this RFP, the City reserves the right to:
a. Waive any immaterial defect or informality in a submittal;
b. Extend or otherwise revise the submittal date;
c. Reject any or all submissions or portions thereof;
d. Select proposals that are in the best interest of the City considering price, nature of the interests, and other factors;
e. Negotiate terms and conditions of eventual sale;
f. Reissue a new or revised RFP or cancel this RFP; and g. Request additional information from one or more respondents.
No Partnership/Business Organization
Nothing in this RFP or in any subsequent agreement, or any other contract entered into as a result of this
RFP, shall constitute, create, give rise to or otherwise be recognized as a partnership or formal business organization of any kind between or among the City or the respondent.
Employment Restriction and Indemnity
No person who is an owner, officer, employee, contractor or consultant of a respondent shall be an officer or employee of the City. No rights of the City’s retirement or personnel rules accrue to a
respondent, its officers, employees, contractors, or consultants. Respondents shall have the responsibility
of all salaries, wages, bonuses, retirement, withholdings, worker’s compensation and occupational
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disease compensation, insurance, unemployment compensation other benefits and taxes and premiums
appurtenant thereto concerning its officers, employees, contractors, and consultants. Each respondent
shall save and hold the City harmless with respect to any and all claims for payment, compensation,
salary, wages, bonuses, retirement, withholdings, worker’s compensation and occupational disease compensation, insurance, unemployment compensation other benefits and taxes and premiums in any way related to each respondent’s officers, employees, contractors and consultants.
Property Rights
All materials submitted in response to this RFP and submittals subsequent thereto, shall become the property of the City upon delivery. Submittal Rejection/Right to Disqualify Submittal of terms, condition and/or agreements may result in rejection if such terms, conditions, or
agreements are deemed unacceptable by the City in its sole discretion. The City reserves the right to
disqualify any respondent who fails to provide information or data specifically requested herein or who
provides materially inaccurate or misleading information or data or who attempts to influence the selection process outside the procedures established herein. The City reserves the right to disqualify any respondent on the basis of any real or apparent conflict of interest. This disqualification is at the sole
discretion of the City.
Discrimination
Discrimination in the performance of any agreement awarded under this RFP on the basis of race, color, religion, creed, sex, age, marital status, national origin, or actual or perceived sexual orientation, gender
identity or disability is prohibited. This prohibition shall apply to the hiring and treatment of the
awarded entity’s employees and to all subcontracts.
As such, each entity submitting under this notice shall include a provision wherein the submitting entity, or entities, affirms in writing it will not discriminate on the basis of race, color, religion, creed, sex, age,
marital status, national origin, or because of actual or perceived sexual orientation, gender identity or
disability and which also recognizes the eventual contract will contain a provision prohibiting
discrimination as described above and that this prohibition on discrimination shall apply to the hiring
and treatment of the submitting entity’s employees and to all subcontracts.
Failure to comply with the above shall be cause for the City to deem the submittal non-responsive.
Accessibility
Upon reasonable notice, the City will provide assistance for those persons with sensory impairments. For further information please contact the ADA Coordinator James Goehrung at 406-582-3232 (TDD
406-582-2301).
Governing Law
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This RFP and any disputes arising hereunder or under any future agreement for the sale and purchase of
shares, interests, or rights shall be governed hereafter and construed and enforced in accordance with the
laws of the State of Montana, without reference to principles of choice or conflicts of laws.
Miscellaneous No conversations or agreements with any officer, employee, or agent of the City shall affect or modify
any term of this RFP. Oral communications or any written/email communication between any person
and the designated contact City staff shall not be considered binding.
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