Loading...
HomeMy WebLinkAboutPublic Hearing for Sale of Downtown Parking Garage_7 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Finance Director James Goehrung, Superintendent of Facilities Chris Kukulski, City Manager SUBJECT: Public Hearing for Sale of Downtown Parking Garage Retail Space. MEETING DATE: July 2, 2007 BACKGROUND: The City’s Downtown Parking Garage project contains approximately 10,000 square feet of retail space. It was anticipated that this space would be sold, after the garage was constructed, and proceeds returned to the Downtown Tax Increment District. The Garage base bid project contains approximately 337 spaces. The bid “Alternate 1” encompasses an additional level of parking (approximately 100 spaces). TIF Bonds and Federal dollars will only cover the Garage Base bid. In order to be able to fund the additional parking, the retail space needs to be sold this summer. The Parking Commission and the Downtown TIF District Board are in support of this plan. Once a sales commitment is in place, we would return to the Commission to award the bids for the Alternate, hopefully in August 2007. Based on this limited time frame, a Request for Proposals for the Purchase of Retail Condominium Space has been prepared and advertised. The preferred deadline for reply is July 13, 2007. Criteria to evaluate purchase proposals is attached. 104 Bozeman Municipal Code Chapter 2.05.040 Acquisition and Transfer of City Property, requires a public hearing and commission finding that the property is “no longer needed” and that the “property may be sold by bid, auction with reserve, or negotiated sale of exchange.” RECOMMENDATION: Now that the city knows the total costs of the Garage base bid and alternate, we are in need of additional funding in order to construct the Alternate 1 parking level. The Parking Commission and TIF Board recommend that the Commission move forward with the sale of the retail space in order to fund this additional level. Staff recommends the following commission action: determine, after public hearing, that the property is no longer needed by the city and that the property may be sold by negotiated sale. FISCAL EFFECTS: This action will bring about the sale of the garage retail space and provide funding for the additional level of parking in the structure. ALTERNATIVES: The City could restrict the size of the garage project to only the base bid amounts of 337 parking spaces. However, the city would still need to sell or lease the retail space to businesses, in the future, in order to fully utilize the facility. Respectfully submitted, Anna Rosenberry, Finance Director James Goehrung, Superintendent of Facilities Chris A. Kukulski, City Manager Attachment: Request for Proposals for Purchase of Retail Condominium Space Supplemental drawings and documentation of the site Sale Evaluation Criteria 105 City of Bozeman Request for Proposals for Purchase of Retail Condominiums The City of Bozeman is accepting proposals for the purchase of retail condominium space adjoining the Bozeman Downtown Intermodal Parking Facility located at 26 East Mendenhall Street. To meet the deadline for initial consideration, hand delivered proposals must be received no later than 5:00 P.M., MDT, Friday, July 13, 2007, at the office of the City Clerk, 411 East Main Street, Bozeman, MT 59771. 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 59771. Please state “Retail Condominium Proposal” on the outside of the package. No faxed or electronic submissions will be accepted. Six (6) copies, (one original and five copies), of each proposal must be submitted. Copies of the Request for Proposals (RFP) may be obtained from the Office of the City Clerk, 411 East Main Street, Bozeman, MT. Additionally, the complete RFP, addendums, if any, and evaluation criteria may be obtained from the Office of the City Clerk or on the City of Bozeman 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: James Goehrung, Superintendent of Facilities and Lands, City of Bozeman, P.O. Box 1230, Bozeman, MT 59771. Telephone number is: (406) 582-3232. E-mail address is: jgoehrung@bozeman.net. The City requests that interested individuals or firms limit their contacts to the City Project Manager listed above in the interest of maintaining a consistency of response and fairness to all respondents. PROJECT DESCRIPTION: The City of Bozeman and the Downtown Tax Increment Finance District are offering for sale approximately 10,070 square feet of “cold shell” street frontage commercial space on the ground level of the Downtown Parking Garage. The spaces front Mendenhall Street and the unit block of North Tracy Avenue. The units will be stubbed out for plumbing and electrical, rooftop mechanical units, unfinished ceilings and walls and concrete floors. The buyer will be responsible for all power and communications wiring and all interior finishes. 1 106 The condominium spaces are currently Zoned B-3, (Central Business District). The development is part of a ½ block site of Parcel C, COS C-1-F (Lots 13 through 24, Block F, Original Plan of Bozeman). The boundaries are Mendenhall Street, North Black and North Tracy Avenues and the east/west alley to the south of Mendenhall. Construction on the Downtown Bozeman Intermodal Facility is expected to start August 2007 with an opening in late summer early fall of 2008. Occupancy will be tied to the opening of the garage with the owner’s ability to begin finish work of the commercial space to be negotiated. INTENT OF RFP: The City of Bozeman will evaluate the proposals 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 or lease will be negotiated with the successful applicant. The property is currently B-3. Any proposed use of the property that does not meet the current zoning designation 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 define clearly which condominium units[s]the party wishes to purchase of those units described on the RFP Attachments. 3. Proposals will provide a detailed description of the expectations, responsibilities or actions of the City of Bozeman necessary for the sale of the property. Any anticipated special conditions related to the Condominium Association Agreement will be listed in the proposal. 4. 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 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. 2 107 In all cases, proposals will include a Buyer’s full financial disclosure addressing Buyer’s ability to perform on the purchase offer. c. Accepted proposals will be transformed into formal Buy-Sell offers within 7 business days of City acceptance. d. 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[ies] to conduct its due diligence. A Buyer’s due diligence contingency shall have a release date 30 days past the Project Completion Date. GENERAL Proposals should be clear and concise and will be evaluated using the above criteria. Selection of the finalist(s) will be completed by a selection committee representing the City of Bozeman. 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 of Bozeman. Proposals entailing the purchase of all condominiums will be given preferred consideration. If no successful proposals for purchase of all condominiums are received, sale of individual condominiums will be considered. All proposals must be submitted complete and contain the information required as stated in the Request for Proposals. 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. 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. 3 108 109 110 111 112 113 114 115 116 117 118 119 120 121 R F P Evaluation Criteria Sale of the Retail Component of the Downtown Intermodal Facility Total Score____________ Date_________________ NAME OF RESPONDENT:______________________________________________________ Application Complete: YES____________ NO____________ COMMENTS: Application is for the Full Block of Retail: YES___________ NO__________ COMMENTS: I. Proposal Clearly States the Purchase Price and the Square Foot Equivalent ( 50 points possible) 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: 122 II. Expectations and Responsibilities of the City ( 100 points possible) 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 operation of the garage or transit component of the Intermodal facility. D. Special conditions outlined for the Condominium Association 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) 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 ________________________________________________________ 123