City Council Agenda and Packet 2012 07 03

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City Council Meeting Minutes June 19, 2012 Page 6 of 20 Staff released an RFP in April 2012 to seek proposals from developers to partner with the City to preserve and redevelop the property. Proposals were due May 23, 2012. One proposal was received prior to the May 23 due date from Steve Poppitz. A second proposal was received two days later from Amterre Property Group. Given that Amterre currently has a purchase contract with the owners of the property it was deemed prudent to review this proposal, even though it was received after the submittal date. The City Manager created a recommendation team to review the proposals. Members of the team include; Heather Balser, Deputy City Manager Aaron DeJong, Economic Development Director Troy Russ, Planning Director Sean McCartney, Principal Planner Meredyth Muth, Public Relations Manager Jean Morgan, citizen Peter Stewart, Historic Preservation Commission Mike Koertje, Historic Preservation Commission The committee first reviewed the Poppitz proposal. Team members felt the proposal lacked significant detail regarding the costs of redeveloping the property. There is no quantitative analysis. The team presented in the proposal has significant experience in residential rehabilitation projects but lacks the commercial experience needed for the project. Much of the proposal is vague regarding the proposed use of the property. The positives of this proposal include a willingness to draw on multiple resources from many sources and a significant willingness to partner to make the project happen. The Amterre proposal is structured around three basic scenarios for possible preservation and redevelopment of the property: 1. Acquire the property and preserve the structure 2. Acquire the property and redevelop the Grain Elevator and former Napa building to commercial uses 3. Acquire the property and redevelop the Grain Elevator and former Napa building to a mix of retail, office and residential. Amterre's proposal contained a thorough analysis of the costs associated with the redevelopment of the property. Amterre has an active purchase contract for the property with a purchase price listed as $950,000. The selection team was drawn to scenarios 1 and 2 outlined in the Amterre proposal. Scenario 1 in its simplest form is a preservation of the structure by acquiring the property, performing the needed improvements outlined in the structural assessment report, and then essentially `moth balling' the structure until such a time market demand for retail or commercial will make the site viable with minimal city assistance. 18