MEMORANDUM. Administration. John Lobaito. From: Peter Vadopalas. Date: Monday, September 04, 2017

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1 8.C.a To: John Lobaito From: Peter Vadopalas Administration Date: Monday, September 04, 2017 Re: MEMORANDUM Sale of Former Village Hall Property, 440 East Hawley Street Attached is a Request for Proposals (RFP) that staff is prepared to issue regarding the sale of the former Village Hall property located at 440 East Hawley Street. This document was prepared with input from the Building Department and Community Development Department. If the Village Board authorizes the sale of this surplus real estate, the RFP document will be issued in September. The anticipated milestones of this RFP process are as follows: Sign posted on-site, and RFP issued and posted to website in September 2017 Concept Proposal submittal deadline of November 30, 2017 Selection Committee to review proposals December 2017 through January 2018 Report and recommendation to the Village Board in February 2018 As written, the RFP provides options to submit development proposals that result in either the renovation and reuse of the existing Village Hall building, or the complete redevelopment of the property. Prospective buyers are encouraged to evaluate opportunities to preserve the existing building, but site redevelopment proposals are also invited. The RFP notes that the property was appraised in May of this year, and the estimated market value is $380,000. The Illinois Municipal Code requires that municipalities sell surplus real estate for no less than 80% of appraised value. Therefore, acceptable offers must exceed $304,000. The purchase offer will be one of several evaluation factors considered during the proposal review process, and will be considered within the context of each proposed redevelopment concept. In addition, the property is being sold as is, with no commitments from the Village regarding the condition or potential re-use of the building. Walk-through inspections of the building will be made available by appointment during the RFP process. The RFP requires that any questions regarding the property or the RFP process be submitted via only. Answers to all questions will be posted on the Village s website for all interested parties to view. The RFP will be promoted via press release, the Village website, and direct distribution to the Community Development Department database of real estate investors and developers. Should any additional information be helpful, please let me know. Attachment: Memorandum regarding Village Hall RFP (2637 : RESOLUTION AUTHORIZING THE VILLAGE ADMINISTRATOR TO OFFER FOR SALE Packet Pg. 101

2 1 Packet Pg. 102

3 REQUEST FOR PROPOSALS SALE OF VILLAGE HALL PROPERTY The Village of Mundelein requests proposals for the sale and redevelopment of real property, owned by the Village, located at 440 East Hawley Street. This is a unique opportunity for qualified investors or developers to acquire the property, redevelop the historic Mundelein Village Hall (circa 1929) and transform the site into a dynamic asset for the Downtown. The project site includes a vacant, multi-story, 8,500 square-foot office building, on a 32,816 square foot lot. The site is bordered by commercially zoned properties on the north, south and east, and residential on the west. In the end, the final selection will be based in part on the project proposal that achieves the highest and best use of the site, with a creative, marketbased design. Respondents are encouraged to pursue opportunities for partnerships with adjoining property owners, if doing so creates a more economically feasible project. A variety of economic incentives are available from the Village to enhance the project. The amount and type of incentives allocated by the Village will be dependent on the scope and desirability of the proposed project. This process is intended to identify a respondent with the best qualifications, relevant project experience, elevated design concepts, and sound economic vision for the site that is acceptable to the Village. The final selection will be based in part on the project proposal that achieves the highest and best use of the site, with a creative, market-based design. The Village reserves the right to reject all proposals and to negotiate with any respondent to obtain an agreement that is in the best interests of the Village. To be considered, proposals must be received in the Office of the Village Administrator no later than 5:00 pm, November 30, All information contained in this RFP is available online at 1 Packet Pg. 103

4 INTRODUCTION The Project Site: 440 East Hawley Street The project site is located in the Downtown C-5-C Zoning District, within the Downtown subarea plan of the Comprehensive Plan of 2011, and within the Downtown North Implementation Plan study area. Additionally, the project site is located within the Downtown TIF I boundary. The building is 8,500 square feet on a 32,816 square foot lot. The site has 275 feet of frontage on East Hawley Street and is 140 feet deep. There is an alley to the rear of the property, and utilities are readily available. The building and site were used as the administrative and executive offices of Village Government for 86 years. The original 6,000 square foot, 2-story structure, built in 1929, served as the municipal jail, fire station, Mayor and Clerk s offices, and community center. A 2,500 square-foot office expansion was added in Numerous conversions and upgrades were added over the years. The Village offices moved to a new facility in the summer of Since then, a portion of the lower floor has been leased as a construction field office. The building is not registered as a historic structure; however, the exterior of the original 1929 building has historical value for the Village. The building contains an electrical system that spans the history of electrical wiring. Friable asbestos within the building has been removed. Asbestos is present in the roof tiles of the original building. A full report on the Old Village Hall structure can be accessed in the Links section of this document. 2 Packet Pg. 104

5 PROPERTY APPRAISAL A professional appraisal of the property was completed in May The appraised value of the property is $380,000. The appraisal is available for public inspection at Mundelein Village Hall, 300 Plaza Circle. The Illinois Municipal Code requires that the corporate authorities who are selling surplus public real estate may not accept any contract proposal for less that 80% of the appraised value. Therefore, the Village of Mundelein can accept an offer of $304,000 or higher for this property. The property is located within a TIF District and the Village is able to offer incentives for desired development projects within the District. SITE INSPECTION OPPORTUNITY Interested parties will rely upon their own investigation and review of the physical conditions of the property and building, and will not rely on any representations or warranties made by the Village of Mundelein or anyone claiming to act on its behalf. The Village of Mundelein will only agree to sell the property on an As-is, Where is basis. The Village Hall Building will be made available for walk-through inspections by appointment only. Interested parties are encouraged to visit the property prior to submitting a proposal in response to this RFP. Contact Assistant Village Administrator Peter Vadopalas to schedule an appointment. ABOUT DOWNTOWN MUNDELEIN MUNDELEIN DEMOGRAPHICS Population ,792 Median Age 36.1 Average Household Income $107,656 Median Household Income $83,170 Median Home Value $246,103 Average Home Value $278,645 Number of Housing Units 11,294 3 The Village of Mundelein is located in Lake County, approximately 10 miles from the western shores of Lake Michigan. Adjacent communities include Grayslake to the north, Libertyville to the east, Vernon Hills to the southeast, Long Grove to the south, and Wauconda to the west. Packet Pg. 105

6 North Lake Street/U.S. Route 45 passes through its center (approx. 22,000 ADT), acting as the primary north/south arterial. Maple Avenue/Illinois Route 176 passes east/west through the Village on the northern edge of its Downtown. The Metra North Central Line includes a station in Mundelein. Ridership statistics show a steady increase in passengers between 1997 (approximately 225 riders/day) and 2014 (approximately 304 riders/day). Additionally, PACE fixed route and paratransit service operates in the area. Three significant recreational trails converge on downtown Mundelein, with each currently terminating at the approximate edges of the Downtown. The Millennium Trail connects west and north with one terminus at Fieldbrook Park and the other at Chardon Road in Round Lake, IL or west with a terminus in Lakewood Forest Preserve in Wauconda, IL. The North Shore Bike Path connects the Des Plaines River Trail with Lake Bluff, IL to the east and branches onto the Robert McClory Bike Path paralleling the Lake Michigan waterfront to head north to Wisconsin or south to Chicago. The Prairie Crossing Bike Path is 3/4 of a mile west of the Downtown at Midlothian Road and West Hawley Street. It extends north to Rt. 120 in Grayslake, IL. Recent public initiatives: New Metra Station construction (2001) Created Tax Increment Financing (TIF) District (2005) Purchased industrial Anatol building (2005) Redevelopment Agreement Cardinal Square (9 buildings, 590+ units)(2005) Cardinal Square Building A Complete (2007) Downtown Development Review Business Districts Inc. (2010) Purchased industrial Sigma building (2010) Comprehensive Plan Houseal Lavigne Associates (2011) Strategically enhanced infrastructure and amenities including streetscape, traffic, lighting, and transit (2011 and ongoing) Master Redevelopment Implementation Plan Farr Associates (2012) Zoning Ordinance Rewrite Camiros (2012) Purchased land for future Mundelein Public Works relocation (2013) Municipal Rebranding Initiative BDI & Wohltgroup (2014) New Village Hall and Plaza (2014) Implementation of Business Incentive Grant (BIG) Program (2014) New Sign Ordinance Camiros (2015) 4 Tighthead Brewing Co. Adaptive Reuse of Industrial Property Cardinal Square Building C Market Rate Apartments (2015) Packet Pg. 106

7 Cardinal Square Building C Complete (2015) Amended TIF District I and created a TIF District II in the Downtown (2016) Secured grant funding for McKinley Avenue improvements (2016) Established the Mundelein Arts Commission (2016) Complete renovation of Hawley Lake Plaza (2016) Launched North Lake Façade Project w/ Lake County Grant (2016) Fairhaven Crossing Complete (2016) Downtown North Implementation Plan Farr Associates (2017) 2 Development Concept Presentations (2017) Purchase and removal of industrial uses for redevelopment (ongoing) Transit-Oriented Development In 2004, the Regional Transportation Authority (RTA) funded a Transit-Oriented Development Plan, created by URS (now AECOM), which focused on high level planning for the area around the Metra train station and nearby PACE bus service effectively opening the gates for development. The 2004 TOD Plan, was the impetus for a strengthened initiative that fortified the Village s commitment to the Downtown and led to a number of implementation directives taken on by the Village, to date. This plan marked the creation of the Village s vision and prompted more than a decade of strategic work focused on bringing people, jobs, businesses, and density to the area surrounding Mundelein s Metra train station. Density is not a negative word provided it is logically implemented. Village Hall Plaza The Master Redevelopment Implementation Plan (2012) redefined a former 10.5 acre industrial site in the heart of Mundelein s Downtown and adjacent to the Metra Station. After purchasing and clearing the site, a new Village Hall was constructed to serve as a catalyst for Downtown development. The new Village Hall sits on a plaza comprised of several shovel-ready lots purposefully planned to Village Hall Plaza and Cardinal Square Condominiums become an arrangement of mixed-use blocks surrounding a vibrant gathering center, commonly known now as the Plaza. In order to utilize the space as intended, the Village has begun programming the Plaza with community events such as the annual Craft Beer Festival and Santa s Cottage events. 5 Mundelein Craft Beer Festival Village Hall Plaza Private Parking Lot Improvements BIG Program (2016) Packet Pg. 107

8 Public-Private Partnership Innovation in Action To help fund the construction of the new Village Hall, the Village employed a unique financing mechanism. Mundelein entered into a Public-Private Partnership (PPP) with Weston Solutions, an engineering firm. Under the PPP Agreement, the Village occupies 16,000 square feet of space on the ground floor, and Weston Solutions occupies 16,000 square feet of leased office space on the upper level. The PPP greatly benefits the community in that there were no increased property taxes for the ten million dollar building. Village financial reserves, lease payments, grant proceeds, and recycled material revenues funded the building. Zoning Ordinance (2012) and Sign Ordinance (2015) Rewrite Progressing forward with a long-term vision for a new Downtown and utilizing Mundelein s strategic planning documents as a play book, the Zoning Ordinance and Sign Ordinance were both given a complete overhaul. Both documents are now modernized, user-friendly, relevant, and will serve as a comprehensive planning guidebook for next phases of downtown redevelopment. The new Zoning Ordinance provided for an evolving Downtown Mundelein, encouraging higher densities, a connected street grid, build-to zones instead of setbacks, reduced parking requirements, and ground floor transparency in order to encourage a more urban environment. Multiple large residential projects and commercial projects have come to Fairhaven Crossing Downtown Affordable Housing Development and Repurposed Industrial Structure (Completed in 2017) fruition in the Downtown since the adoption of the new Zoning Ordinance in All were built with the new standards encouraging an urban environment parking to the rear, minimal setbacks along the road, and architectural features oriented toward the road. One of the projects, Fairhaven Crossing, an affordable housing development with a focus on accessibility for persons with disabilities, was constructed entirely by-right without any variations or special permissions. Municipal Branding Initiative (2014) The Village embarked on an initiative to develop a fresh brand as part of Mundelein s ongoing promotional efforts. This branding included not only a new logo, but a brand promise : 6 Packet Pg. 108

9 Mundelein will be central Lake County s premier location for entrepreneurs and known as a welcoming community. Since its adoption, the brand has helped to foster a stronger sense of community pride as well as a cohesive look to Village informational materials. Business Incentive Grant (BIG) Program (2014) Cabinet Creations Before Cabinet Creations After 7 The Village created a Business Incentive Grant (BIG) Program to provide financial assistance for financial assistance for property improvements in This program evolved from an objective of the Downtown Development Review by BDI to support property reinvestment. The Village reimburses 50% of eligible costs for exterior, interior, and sign improvements, up to a maximum. Thus far, 19 business have been granted funding for improvements, several of which are located within Mundelein s Downtown. Private investment made possible by the program has far exceeded Village contributions. Downtown North Implementation Plan (Old Village Hall Planning Area) Since the Master Redevelopment Implementation Plan focused on the Village Hall Subdivision, a need for a subarea plan was identified to guide future development for the Downtown North area, which captures the Downtown area north of Hawley Street. The plan focuses on incremental development, reuse, and revitalization of the existing structures as opposed to the Packet Pg. 109

10 development style at the Village Hall Plaza. The Village articulated and the consultants agreed, that the Downtown North should have its own cohesive identity and should complement, but not compete, with the Village Hall Plaza area. The Downtown North plan addresses many implementation strategies such as: increased density, the connection of two separate bike path networks, streetscaping elements to improve walkability and pedestrian comfort, adaptive reuse of the existing building stock, and plans to accommodate future parking needs. Village Administrator John Lobaito Addressing Public at Downtown North Implementation Plan Workshop 8 Packet Pg. 110

11 Links Village Hall Study Report & Photographs Village Hall Floor Plans Plat of Survey 440 East Hawley Street Utility Map Residential Demographics Business Demographics Comprehensive Plan, Adopted 2011 Zoning Ordinance Full Downtown Zoning Ordinance Chapter Downtown Master Redevelopment Implementation Plan, Adopted 2012 Downtown North Implementation Plan, Adopted 2017 Village of Mundelein Economic Development Summit 2017 RTA Implementation Report 2016 TOD Success Story SITE DEVELOPMENT GOALS Proposals to redevelop the former Village Hall site must address either of the following options. Proposals for both options are encouraged, but if Option #2 is the only option provided, the proposal should address why Option #1 is not being considered. Option #1: Save the original structure and add density to the site. The intrinsic value of the building to the Village is the original structure. Removing the 1974 addition, and renovating the exterior to closely approximate the façade of 1929 would be a desirable project. Office, commercial (such as a restaurant), residential, or mixed-use are all acceptable uses. Adding a second building to the west, or an addition to the rear of the original structure are acceptable options to increase density on the site. A second building should be visually consistent with the existing building and consistent with the Village zoning ordinance. Option #2: Demolish the entire building and start with a clear site. Develop the site to its highest and best use as a mixed commercial, office, and/or residential development. The construction of multiple buildings on the site is acceptable. A maximum height of 3-stories is preferred, but the Village may consider an increased height if the financial feasibility of the project requires increased density. All buildings should enhance the architectural diversity of the Downtown and be consistent with the underlying zoning. The final design should present a unified appearance along Hawley Street that is architecturally inviting, and pedestrian friendly, with parking provided in the rear, off the alley. The properties to the east and west are potential acquisitions that could be added to the scope of work. 9 Packet Pg. 111

12 Acquisition of these properties would be the responsibility of the developer, but a project proposal that includes the redevelopment of these properties will be given priority. CONCEPT PROPOSAL SUBMISSION REQUIREMENTS Initial, conceptual proposals must include the items listed in this section to be deemed complete and responsive. The information being requested through this RFP is necessary for the Village to responsibly evaluate all proposals. Failure to supply the requested information may result in rejection of a proposal. Select items must be presented in the format as noted. The Village is not responsible for the costs incurred by respondents or their subcontractors in connection with this RFP process, including, but not limited to those associated with preparation or presentation of, or negotiations related to, proposal submittals. A. A cover page that includes: 1. Developer s name and mailing address. 2. Contact person s name, title, phone number, and e mail address. 3. Brief overview of the proposed project, and description of experience with relevant development projects. 4. Signature of authorized corporate officer for each entity proposing as a partnership or team. B. Project narrative, including the following information: 1. Offer to Purchase. 2. Uses on the Site and adjacent properties, if appropriate; proposed users/potential tenants of the Site. 3. Improvements made to the Site including square footage of specific components, anticipated materials, and design style. 4. Plan for transportation access, including parking needs. 5. Description of any green building features, techniques, and/or certifications. 6. Proposed site plan showing scope of the project, new and remaining buildings, access drives, parking, landscaping, and lighting renovation or site redevelopment, as appropriate. 7. Preliminary elevations of all buildings for Option #1 and/or Option #2, as appropriate. 10 Packet Pg. 112

13 8. Description of public benefits resulting from the proposed project. Examples of public benefits include jobs created, streetscape improvements, provision of needed goods and services, and/or property value enhancement. 9. If site re-development is proposed, include narrative regarding why building renovation was not considered. C. Preliminary timeframe for redevelopment. Including: the time needed to finalize financing, complete construction design, secure permits and approvals, prepare the site, start and complete construction, and start and complete occupancy or lease up. Identify any conditions that must be met before the proposal can become a reality. PROPOSAL SUBMISSION DIRECTIONS 1. Proposers must submit, on or before 5:00 pm, November 30, 2017: i. Seven copies of the completed proposal ii. One electronic version in Microsoft compatible or PDF format on CD or USB Drive, including Excel files for project financial information as described above. 2. Proposals must be on standard 8 ½ by 11 paper. Foldouts containing charts, spreadsheets and oversized exhibits are permissible as long as they are packaged with the proposal. 3. Proposals and supporting documentation must be submitted in a sealed envelope labeled Old Village Hall Site Proposal and sent or delivered to: Village of Mundelein Attention: Assistant Village Administrator 300 Plaza Circle Mundelein, IL Faxed proposals will not be accepted. Proposers may choose to provide additional copies if and when invited to do so for presentation purposes. Submissions will not be returned. 5. Proposals may be hand-delivered to the Village on or before 5:00 pm, November 30, Proposals received after the deadline may not be accepted. It is neither the Village s responsibility nor practice to acknowledge receipt of any proposal. It is the proposer s responsibility to assure that a proposal is received in a timely manner. SUPPLEMENTAL PROPOSAL SUBMISSION REQUIREMENTS It is contemplated that a limited number of proposals will be recommended for further evaluation by a Selection Committee tasked to review submitted proposals. Respondents who are invited to further refine the details of their proposal will be informed of their selection in writing. A supplemental submittal will be requested to provide additional detail about the respondent s project experience, financing capability, and project timeline. 11 Packet Pg. 113

14 The Village will identify the preferred proposal, and that proposer will be selected to negotiate a sale of the property. The Village further anticipates that it will enter into a Letter of Intent with the selected respondent, followed by negotiation of redevelopment and sales agreements. EVALUATION CRITERIA In reviewing proposals, the following criteria are among those that will be considered by the Selection Committee in no particular order: 1. Fulfillment of the site development goals identified in this RFP. 2. Form and function of site design and building architecture. 3. Adherence to the Village of Mundelein Comprehensive Plan, Zoning Code, and other relevant policy documents and Village ordinances. 4. Track record and financial capacity of the development team to complete the proposed redevelopment project. 5. Financial feasibility of the project and the ability of the project to secure necessary financing. 6. Proposed project timeframe. 7. Public benefits from the project. 8. Sum and categories of Village incentives requested. 9. Degree of green building techniques and features incorporated into proposed design. 10. Overall quality of the submission, adherence to the proposal content requirements, and responsiveness during the review process. PROPOSAL REVIEW AND SELECTION PROCESS The selection Committee will review proposals that are received by the due date. The Committee may also seek neighborhood and other stakeholder input. Some or all of the respondents may be requested to present their proposals to the Selection Committee. It is expected that the review process will occur in December 2017 and January 2018, and that the Selection Committee will make a recommendation to the Village Board in February The Village reserves the right to reject any or all proposals or parts of proposals, to negotiate modifications of submitted proposals, and to negotiate specific work elements with a proposer into a project of lesser or greater magnitude than described in this RFP or the proposer s reply. 12 Packet Pg. 114

15 RFP INQUIRIES Prospective respondents may only direct questions by to the Village point of contact: Peter Vadopalas Assistant Village Administrator Village of Mundelein 300 Plaza Circle Mundelein, IL All questions are due no later than 5:00 p.m. on November 15, Questions will be answered in writing and posted on the RFP website: Potential respondents are encouraged to periodically check the website for new information on this RFP and for answers to questions regarding the RFP posed by other respondents. The point of contact is the only person authorized to discuss the RFP before the deadline. The Village contact may not vary the terms of the RFP. 13 Packet Pg. 115