Garage Redevelopment RFP
October 28, 2005
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT:
RFP for Former City Garage
Economic Development Director David Heiar recommends City Council approval to
distribute a Request for Proposals for redevelopment of the former City Operations and
Maintenance Garage offices located at 925 Kerper Boulevard.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
____________________________________
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
MEMORANDUM
November 4, 2005
TO:
Michael Van Milligen, City Manager
FROM:
David J. Heiar, Economic Development Director
SUBJECT:
RFP for Former City Garage
Introduction
Attached is an RFP for redevelopment of the former Operations and Maintenance
Garage and offices located at 925 Kerper Blvd.
Background
Now that the Public Works department has relocated to their new facility at 925 Kerper
Court, it is in the City’s interest to prevent the site from sitting idle. The site is
approximately 5.65 acres with a 41,432 square foot building. As we review potential
lease options our goals are to:
a. To create an attractive environment by improving the physical appearance of
the building and the site.
b. To achieve the restoration and occupancy of the building with appropriate
tenants as soon as possible.
A recent appraisal of the property (May 2005) indicates that the market value of the
property is $1,265,000. Based on this value, the RFP and proposed annual lease price
of $158,000 (12.5% of appraised value) triple net.
The site does have underground contamination and is part of a CERCLA (Superfund)
site. Approximately $28 million of remediation has taken place at this Property and
surrounding properties under the supervision of the United States Environmental
Protection Agency. The City plans to maintain ownership to insure control of any
development activities on the site which might impose liability on the City of Dubuque.
At this time, there are continuing environmental investigations and remediation
measures underway on the site at the expense of the previous owner MidAmerican
Energy, formerly Midwest Gas.
Due to environmental concerns and our goals in redevelopment of this site, the
following restrictions would be placed on the lessee:
1. There can be no substantial change in the use of the property without the
approval of the Iowa Department of Natural Resources. The City will seek
approval of the change of use with the lessee as appropriate. Approval of the
United States Environmental Protection Agency may also be required by the
City as a prerequisite to commencement of the lease.
2. There shall be no disturbance or excavation at a depth of six or more feet
without appropriate employee safety and health training. Any activity on the
Property involving soil disturbance or excavation at depths of six feet or more,
lessee must first contact MidAmerican Energy for guidance on employee
safety, health and matters relating to the environmental condition of the
Property. Disturbance or excavation at a depth of six or more feet can only be
authorized if the activity does not release or threaten release of hazardous
substances.
3. No water supply wells or private well installation shall be allowed on the site.
4. The Property can only be used for industrial or commercial purposes.
5. The site cannot be used by the general public or for residential use.
6. The lessee must allow access to MidAmerican Energy for potential future
work, the scope of which work is yet to be determined.
7. All operations and activities (other than during construction) on the property
shall be conducted or maintained within completely enclosed buildings,
except for off-street parking and loading facilities.
8. No exterior storage shall be permitted on the Property other than exterior
trash collection areas that meet strict containment standards.
9. Parking areas shall be paved.
10. The lessee will be required to begin the project within 12 months of closing
and to achieve initial occupancy of the building in accordance with a plan as
submitted by the lessee and approved by the City. This condition will be
included in the lease agreement for the property which will provide for a right
of termination of the lease should the lessee fail to achieve occupancy as
planned.
The proposed time frame for the solicitation, receipt, evaluation of proposals and
selection process is as follows:
November 7, 2005
Invite Proposals
January 10, 2006
Responses due
February 6, 2006
Recommendation to City Council to select a lessee
March, 2006
Lease negotiated/approved
Recommended Action
The recommended action is for the City Council to authorize the City Manager to
proceed with seeking RFP’s for the redevelopment of the former City Operations and
Maintenance Garage/offices.
November 7, 2005
Request for Proposals:
Redevelopment of the Former City of Dubuque
Operations and Maintenance Garage and Offices
Dubuque, Iowa
I
NTRODUCTION
The City of Dubuque, Iowa issues this Request for Proposals (RFP) for the
redevelopment and lease of the former City of Dubuque Operations and Maintenance
Garage and Offices and site (“Property”) to solicit qualified tenants. The RFP requests
the submittal of sufficient information regarding the development concept and financial
capability of the tenant to enable the City to select a preferred tenant to negotiate with
for a long-term lease and redevelopment of the property.
The Property located at 925 Kerper Boulevard includes a 41,432 square foot garage
building located on an irregularly shaped site measuring 246,168 square feet (or 5.65
acres). The Property was occupied by the City for use as the Operations and
Maintenance Garage and Offices. The site is currently zoned HI (Heavy Industrial). The
City will consider rezoning for commercial use as a condition to the lease. The annual
triple net lease price is $158,000.
The City’s goals are as follows:
a. To create an attractive environment by improving the physical appearance of
the building and the site.
b. To achieve the restoration and occupancy of the building with appropriate
tenants as soon as possible. Redevelopment should begin immediately and
proceed through occupancy. The building should not sit vacant for any
extended period of time.
In 2009, the City intends to replace the building roof ($240,000) and repair building walls
($191,000) as part of ongoing maintenance.
The Property has underground contamination and is part of a CERCLA (Superfund)
site. Approximately $28 million of remediation has taken place at this Property and
surrounding properties under the supervision of the United States Environmental
Protection Agency. The City plans to maintain ownership to insure control of any
development activities on the site which might impose liability on the City of Dubuque.
At this time, there are continuing environmental investigations and remediation
measures underway on the site at the expense of the previous owner MidAmerican
Energy, formerly Midwest Gas.
I
NCENTIVES
The property is eligible for financial assistance from the City of Dubuque
Commercial/Industrial Building Rehabilitation Loan Program. This program provides
low-interest (3%) loans for exterior and code compliance building rehabilitation.
RPD
ESTRICTIONS ON ROPERTY AND EVELOPMENT
1. There can be no substantial change in the use of the property without the
approval of the Iowa Department of Natural Resources. The City will seek
approval of the change of use with the lessee as appropriate. Approval of the
United States Environmental Protection Agency may also be required by the
City as a prerequisite to commencement of the lease.
2. There shall be no disturbance or excavation at a depth of six or more feet
without appropriate employee safety and health training. Any activity on the
Property involving soil disturbance or excavation at depths of six feet or more,
lessee must first contact MidAmerican Energy for guidance on employee
safety, health and matters relating to the environmental condition of the
Property. Disturbance or excavation at a depth of six or more feet can only be
authorized if the activity does not release or threaten release of hazardous
substances.
3. No water supply wells or private well installation shall be allowed on the site.
4. The Property can only be used for industrial or commercial purposes.
5. The site cannot be used by the general public or for residential use.
6. The lessee must allow access to MidAmerican Energy for potential future
work, the scope of which work is yet to be determined.
7. All operations and activities (other than during construction) on the property
shall be conducted or maintained within completely enclosed buildings,
except for off-street parking and loading facilities.
8. No exterior storage shall be permitted on the Property other than exterior
trash collection areas that meet strict containment standards.
9. Parking areas shall be paved.
10. The lessee will be required to begin the project within 12 months of closing
and to achieve initial occupancy of the building in accordance with a plan as
submitted by the lessee and approved by the City. This condition will be
included in the lease agreement for the property which will provide for a right
of termination of the lease should the lessee fail to achieve occupancy as
planned.
SR
UBMITTAL EQUIREMENTS
To assist the City in selecting the best development proposal, lease proposals shall be
written and presented in the following format, utilizing the headings presented below for
organization.
Lessee
Indicate the name, address and telephone number of the proposed lessee of the
project. Provide the name of one contact person authorized to represent the lessee.
Overview of Proposal
Present a statement of the proposed lease that provides a clear identification of the
project and indicates a clear understanding of the desired results and proposed
occupancy and ability to meet restrictions on use.
Timeline
Describe the anticipated timing of improvements, intended date of occupancy, and
proposed length of lease.
Development Costs
Provide estimated development costs for the proposed lease.
Financing of Project
Identify the type and method of financing, sources of funds and amounts from each
source. Provide evidence of financial commitments. If the City’s financial participation is
expected, describe what level of participation is anticipated and the proposed terms.
Impact of Proposal
Describe the probable economic impact of the proposal including the following: the
number of construction and permanent jobs to be created or retained; tax revenue to be
generated by the proposal; and the regional economic impact of the proposal if any.
Describe the probable impact of the proposal upon the environment, including, what, if
any, subsurface activity is expected as part of the construction and operation under the
lease.
A site plan for the property and or elevation drawings if changes to the building are
proposed is encouraged.
SC
ELECTION RITERIA
The City will use the following information to evaluate the proposals:
Lessee Expertise
?
Demonstrated ability to develop commercial/industrial projects.
?
Qualifications of the key individuals proposed for involvement in the
development.
Site Improvements and Planned Reuse
?
Proposed reuse of the building site.
?
Type and scope of proposed building/site improvements.
?
Compatibility with surrounding land uses, restrictions, vistas, vehicular activities
and future development of adjacent property.
?
The functional design of the site and structure.
?
The overall aesthetic improvement of the site quality of the development.
?
Proposed length of the lease.
Financial Resources
?
Firm financial commitments to undertake the project.
?
Ability to provide funding resources, including current relationships with major
lenders, past funding experience, and the knowledge of other funding sources or
mechanisms for the project.
SP
ELECTION ROCESS
The selection committee will review all responses to the RFP. The selection committee
may meet with any or all of the proposed lessees. The City reserves the right to request
additional information from applicants prior to making a recommendation; however,
special care must be taken to prepare and submit the best response as the City may not
permit additional information to be submitted after the submittal deadline. The City
reserves the right to reject any and all offers or to negotiate in any manner necessary to
serve the best interests of the City of Dubuque.
The recommendation of the selection committee will be forwarded to the City Manager
who will make a recommendation to the City Council for consideration and final
selection of the lessee.
A Lease Agreement will subsequently be negotiated with the selected lessee. Under the
terms of the Lease Agreement, the lessee will be required to submit the following:
?
detailed financial and development cost information relating to the lease
proposal;
?
project site plan, exterior elevations, and interior floor plans, if changes are
proposed.
?
site landscaping plan; and
?
site parking plan.
?
The Lease Agreement will provide for the final scope and design of development,
schedule for development, terms of the lease and terms and conditions for any
public financial participation in the project. A lease is subject to final approval by
the City Council following a public hearing.
PS
ROPOSED CHEDULE
The time frame for the solicitation, receipt, evaluation of proposals and selection
process is as follows:
November 7, 2005
Invite Proposals
January 10, 2006
Responses due
February 6, 2006
Recommendation to City Council to select a lessee
March, 2006
Lease negotiated/approved
AI
DDITIONAL NFORMATION
Interested lessees are encouraged to explore this unique opportunity by requesting a
tour of the site and existing building.
Additional Information may be requested by calling the Economic Development
Department at 563/589-4393 or emailing the Point of Contact listed below.
CDS
LOSING ATE FOR UBMITTALS
Seven (7) copies of the RFP response, plus an unbound original for copying purposes,
Tuesday, January 10,
must be received by the City no later than 12:00 p.m. noon on
th
2006
. All proposals shall be delivered to the City of Dubuque, City Hall, 50 W. 13
Street, Dubuque, Iowa 52001, Attention: Dave Heiar, Economic Development Director.
Responses arriving later than 12:00 p.m. noon or at a different location will not be
considered.
PC
OINT OF ONTACT
Dave Heiar is the sole point of contact for this solicitation. Questions regarding the RFP
should be submitted in writing to the address above or via email at
dheiar@cityofdubuque.org.
F:\USERS\Dheiar\RFP City Operations.doc