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Post office - Federal Bldg. 350 W. 6th, City Interest DU~%duE ~<!k-~ MEMORANDUM c March 2, 2005 TO: The Honorable Mayor and City Council Members Vc' FROM: Michael C. Van Milligen, City Manager SUBJECT: City Interest in Disposition of the Federal Building/350 W. 6th Street The City has received official notice from the General Services Administration (GSA) of its intent to dispose of the Federal Building. A notice of the City's intent must be filed with the GSA by March 18, 2005. The City's expression of interest in the Federal Building at this time would not be binding. It would allow the City time to explore possible options for the reuse of the building during a formal application process. This City has already initiated discussions with Dubuque Initiatives about possible partnership options. Acting Economic Development Director Pam Myhre requests City Council approval of correspondence with the GSA expressing the City's interest in pursuing acquisition of the Federal Building at 350 W. 6th Street for public purposes. I concur with the recommendation and respectfully request Mayor and City Council approval. r)'l (t' LL ! i " / ,) i I, cL' I}l}, l > MichAel C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Pamela Myhre, Acting Economic Development Director CITY OF DUBUQUE, IOWA MEMORANDUM March 2, 2005 TO: FROM: Michael Van Milligen, City Manager, ~ J ,~/~ Pamela Myhre, Acting Economrevelopment Dir tor City Interest in Disposition of the Federal Building/350 W. 6th Street SUBJECT: Introduction This memorandum asks City Council approval of correspondence with the General Services Administration (GSA) expressing the City's interest in pursuing acquisition of the Federal Building at 350 W. 6th Street for public purposes. Background The City has received official notice from the GSA of its intent to dispose of the Federal Building. The notice provides instructions and a time limit for interested public bodies and eligible nonprofit organizations to apply for the property. A notice of intent must be filed with the GSA by March 18, 2005. The City's expression of interest in the Federal Building at this time would not be binding. It would allow the City time to explore possible purchase and reuse options for the building during a formal application process. The City has already initiated discussions with Dubuque Initiatives about possible ownership options. Discussion The first determination will be whether the property can be acquired for free (public benefit conveyance) or whether is must be acquired through a negotiated sale at fair market value. Both the City and Dubuque Initiatives, as a nonprofit organization, qualify to acquire surplus property. Generally, public reuse of the facility is required in both conveyance options. In the case of Historical Monument conveyance (which would likely qualify in the "free" category), the property "may under certain circumstances be used for revenue producing activities to support the historic monument." Even if the City were to pay fair market value for the property, negotiated sales must be for a public purpose. Economic development activities, however, are considered a public purpose. The building is in very good condition overall. Estimated costs to renovate the building range from $700,000 - $2 million. Financing the renovations might be possible through the use of tax increment financing (would require adding the property to the Greater Downtown Urban Renewal District), federal tax credits (if Dubuque Initiatives were the owner/developer), federal earmark, incremental improvements to the building through individual tenant improvements or through a multi-year Capital Improvement Program process. Recommendation I recommend that the City express its interest in acquiring the Federal Building through notice thereof to the GSA by the March 18, 2005 deadline. After that, a formal application will be required, giving the City time to determine final reuse, financing and ownership strategies. Action Step The action step is for the City Council to authorize the City Manager to give written notice to the GSA of the City of Dubuque's interest in acquiring the Federal Building for public purpose. attachment F:\USERS\Pmyhre\WPDOCS\Dubuque fnitiatives\Fedbuildingdisposition.doc II GSA Greater Southwest Region February 15, 2005 Case No. 7-G-IA-0495-1 NOTICE OF SURPLUS DETERMINATION - GOVERNMENT PROPERTY Federal Building, U. S. Post Office, and Courthouse 350 W. 6th Street Dubuque, Dubuque County, Iowa Notice is hereby given that the following described property has been determined to be surplus Government property and available for disposal: Property consists of a 4-story, 80,762 gross square foot masonry building on approximately 47,526 gross square feet of land. A map is attached showing the location of the property. This property is surplus property available for disposal pursuant to 40 USC 541, et seq.. and applicable regulations. The applicable regulations provide that public agencies (non- Federal) shall be allowed a reasonable period of time to submit a notice of interest in the surplus real property. Disposal of this property, or portions thereof, may be made to public agencies for the public uses stated below whenever the Government determines that the property is available for such use and that disposal thereof is authorized by the statute cited and applicable regulations. HUD has determined the property suitable for use for facilities to assist the homeless under the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11411), as amended. Suitability determination was published in the Federal Register on February 11, 2005. Statute Tvpe of DisDosal Negotiated sale to public bodies for use for public purposes generally 40 USC 545(b)(8) 40 use 550(d) 40 use 553 40 use 550(c) 40 USC 550(e) Health purposes Correctional facilitY use School, classroom or other educational purpose Public Park or recreation use U.S. General Services Administration 819 Taylor Str..t Fort Worth, TX 76102-6195 www.gsa.gov 40 use 553(b)(2) LawEm~cementandEmergen~ Management Response Purposes (including fire and rescue services) Hist~ical Monument 40 use 55O(h) If any public agen~ desires to acquire the property under cited statutes, notice thereof in writing must be filed with General Services Administration, Real Property Disposal Division (7PR-6), 1500 E. Bannister Road, Kansas eitY, MO 64131, before 9:00 a.m., March 18, 2005. Such notice shall: 1. Disclose the contemplated use of the property. 2. Contain a citation of the applicable statue(s) under which the public agen~ desires to procure the property. 3. Disclose the nature of the interest if an interest less than the fee title to the property is contemplated. 4. Stale the length of time required to develop and submit a f~al application for the property (where payment to the Government is required under the statute, include a statement as to whether funds are available and, if not, the period required to obtain funds); and 5. Give the reason for the time required to develop and submit a formal application. Any planning for a public health use of the property sought to be acquired subject to a public benefit allowance must be coordinated with Ms. Heather Ransom, Director, Department of Health and Human Services, Division of Property Management, Program Support Center, Room No. 5B-17, Parklawn Building, 5600 Fishers Lane, Rockville, MD 20857, telephone 301-443-2265. An application form to acquire property for public health and drug rehabilitation purposes and instructions f~ preparation and submission of such applications may be obtained from that office. Any planning for a correctional facilitY use or law enforcement purposes of the property sought to be acquired subject to a public benefit allowance must be coordinated with Ms. Janet Quist, U. S. Department of Justice, Bureau of Justice Assistance, Special Programs Division, 810 Seventh Street, N. W., Room 4413, Washington, DC 20531, telephone 202-616-3214. An application form to acquire the property for a correctional facility requirement and instructions for preparation and submission of such application may be obtained from that office. Any planning for an educational use of the property sought to be acquired subject to a public benefit allowance must be coordinated with Mr. David Hakola, Director, Real Property Group, U. S. Department of Education, 400 Maryland Avenue, SW, Room 2C107, Washington, DC 20202-4553, telephone number 202-401-0506. An application form to acquire property for an educational requirement and instructions for preparation and submission of such application may be obtained from that office. Any planning f~ park or recreational use of the property sought to be acquired subject to a public benefit allowance must be coordinated with Ms. Elyse LaF~est, N~st Region, National Park Service, 15 State Street, Boston, MA 02109, telephone 617-223-5190. An application f~ to acquire property for park or recreational requirement and instructions for preparation and submission of such application may be obtained from that office. Any planning to acquire the property for emerge~ management response use sought through a public benefit allowance must be coordinated with the Federal Emerg~ Management Ag~ (FEMA), Mrs. Cheri Smith, Program Analyst, FEMA AR-FM-SL, 500 C Street, SW, Suite 5050, Washington, DC 20472, telephone 202-646-3383. An application form to acquire the property f~ historical monument purposes and instructions f~ preparation and submission of such application may be obtained from Real Property Disposal Division (7PR-6), General Services Administration, 1500 E. Bannister Rd., Kansas City, MO 64131. Application forms or instructions to acquire property for all other public use requirements may be obtained from the Real Property Disposal Division (7PR-6), General Services Administration, 1500 E. Bannister Rd., Kansas City, MO 64131. If any public agen~ considers the proposed disposal of the property to be incompatible with its development plans and programs, notice of such incompatibility must be forwarded to Real Property Disposal Division (7PR-6), General Services Administration, 1500 E. Bannister Rd., Kansas City, MO 64131, within the same time frame prescribed above. Upon receipt of such written notice, the public agen~ will be promptly informed concerning the period of time that will be allowed for submission of a formal application. In the absence of such written notice, or in the event a public use proposal is not approved, the regulations issued pursuant to the authority contained in 40 USC 541, at seq., and applicable regulations provide f~ offering the property for competitive public sale. This building is occupied by Federal Tenants. The tenants will relocate within two years. MORE INFORMATION ABOUT THIS PROPERTY MAY BE OBTAINED BY CONTACTING LAURA MCGINNIS, REALTY OFFICER, REAL PROPERTY DISPOSAL DIVISION (7PR-6) , 1500 E. BANNISTER RD., KANSAS CITY, MISSOURI, TELEPHONE 816-823-5355. 40 USCS ~ 904 (a) Notice to local govemment. Before offering real property situated in an urban area for sale, the Administrator of General Services shall give reasonable notice to the unit of general local govemment exercising zoning and land use jurisdiction in order to provide an opportunity for zoning so that the property is used in accordance with local comprehensive planning described in subsection (c). (b) Notice to prospective purchasers. To the greatest extent practicable, the Administrator shall fumish to all prospective purchasers of real property situated in an urban area complete information conceming- (1) current zoning regulations, prospective zoning requirements, and objectives for property if it is unzoned; and (2) (A) the current availability of streets, sidewalks, sewers, water, street lights, and other service facilities; and (B) the prospective availability of those service facilities if the property is included in local comprehensive planning described in subsection (c). (c) Local comprehensive planning. Local comprehensive planning referred to in subsections (a) and (b) includes any of the following activities, to the extent the activity is directly related to the needs of a unit of general local government: (1) As a guide for government policy and action, preparing general plans related to- (A) the pattern and intensity of land use; (8) the provision of public facilities (including transportation facilities) and other govemment services; and (C) the effective development and use of human and natural resources. (2) Preparing long-range physical and fiscal plans for govemment action. (3) Programming capital improvements and other major expenditures, based on a determination of relative urgency, together with definitive financial planning for expenditures in the earlier years of a program. (4) Coordinating related plans and activities of state and local govemments and agencies. (5) Preparing regulatory and administrative measures to support activities described in this subsection.