Request for Proposals Redevelopment of 133 W. Jackson St. City of Macomb, Illinois
133 W. Jackson St. Request for Proposals Date of Issue: 08/09/2017 Due Date: Thursday, September, 28 th, 2017 at 10:00 A.M. Issuer: City of Macomb Name of Development Project: 133 W. Jackson St. Location: The project site is located at 133 W. Jackson St. in Macomb, IL. The building is situated at the southeast corner of W. Jackson St. and S. McArthur St. Introduction/Background: The City of Macomb, Illinois (pop. 21,516) is the county seat of McDonough County, Illinois and serves as the commercial and economic hub for west central Illinois. Macomb is the proud home of several dynamic centers of employment such as Western Illinois University, McDonough District Hospital, NTN- Bower, and Pella Windows, among others. The City is served by several transportation routes and modes including U.S. Highway 67, U.S. Highway 136, Amtrak service on the BNSF railway, and Go West bus transit. Detailed demographics and other community information can be found in the Macomb Economic Development Profile (available at http://www.maedco.org/demographics/). Downtown Macomb is currently undergoing an exciting revitalization. In 2016, Downtown Macomb saw over $5.5 million in value added construction. A new senior living facility at the City s old LaMoine Hotel building, which will bring 40 new living units to Downtown, is expected to be completed in late 2017. The City is also investing approximately $1.5 million in Downtown street infrastructure improvements. Additionally, the City is working with Downtown business owners and stakeholders to start a new housing program that will create additional upscale apartments within the City s many historic downtown buildings. 2 P a g e
Macomb s Downtown is a destination for higher density, pedestrian oriented retail, office, residential, and entertainment offerings. Mixed-uses that cater to a variety of patrons are highly encouraged to promote and sustain vibrancy. Project Description: The City of Macomb is soliciting proposals from qualified developers and/or organizations willing to either: 1) Purchase and remodel the existing building 2) Purchase and demolish the existing structure and construct a new building that will integrate well into the neighborhood. Built in 1950, the building was originally an auto dealership, and has since been used as a restaurant/nightclub and as a furniture store. The building is approximately 19,920 square feet in size. The property is currently zoned B-3 (Downtown Business District), however, introduction of new uses to the existing building may also require planned use zoning approval. It will be the responsibility of the selected developer to obtain any and all necessary zoning changes, variances, building permits, and other approvals to facilitate the development of this property. 3 P a g e
Ongoing public improvements in the immediate vicinity of this property include: New street resurfacing on the 100 block of W. Jackson St. (August 2017) New storm water line installed in the alley to the south of the building (June 2017) Planned new sidewalks and streetscaping elements in 2018 or 2019 A variety of retail/office/residential uses would be appropriate for this site, given its B-3 Downtown Business District zoning. Any demolition of the current structure will require approval from the Macomb Historic Preservation Commission. A 13 wide alley is located south of the building, extending eastward to an 8 wide alley that runs north/south between W. Jackson and W. Washington Streets. The City is aware that new construction on this site will likely increase parking demand in the area. In conjunction with the current Downtown Revitalization Streets project, the inner square will soon have an increase of approximately 65 parking spaces. There are currently 73 City-owned parking spaces located across the street from the project site that would be available for tenants and customers at the redeveloped building. Proposals that can somehow include on-site parking are encouraged but not required, as the City feels that the Downtown area has enough parking to accommodate increased demand created at the proposed site. Tax Increment Financing and Other Incentives: The building is located inside the Downtown TIF district which was renewed for 12 additional years in December of 2009. As publicly-owned property, the site has no Equalized Assessed Value, which allows all property taxes collected to be considered increment. The selected developer will be eligible to receive a substantial portion of increment generated by the property. The building site also falls within the City s Enterprise Zone. This zone allows for various tax exemptions and deductions including utility tax, sales tax, and machinery sales tax. Additional information on enterprise zone benefits can be found at https://www.illinois.gov/dceo/expandrelocate/incentives/taxassistance/documents/ezqa%202014.pdf. The building is also eligible for funding from the City s two revolving loan funds. The Downtown revolving loan fund is a low interest rate loan (typically less than 3%) that can be used for working capital or other building improvements. The Downtown Revolving Loan fund is currently capped at $20,000 per loan. The City s general CDAP loan is another low interest loan, but has no maximum loan amount. The awarding of funds from both of these loans is contingent upon fund availability. The City also maintains a façade improvement program, which is designed to fund improvements to exterior facades on downtown buildings, provided that the buildings devote 50% of gross floor space to commercial uses. Funding from the program is capped at the lesser of $20,000 or 2/3 the cost of project improvement. 4 P a g e
Building Condition: The building was sold to the City as is and is encumbered with a number of environmental hazards. Hazards that the City is cognizant of include the following: Rotten and deteriorated wooden window frames on the building s south side Deteriorated mortar on all sides of the building Collapsed sky-light in the center of the building Evidence of leaking roof throughout the building Missing handrails and guardrails on the south side of the building Missing and falling gutters Deteriorated window frames on the west side of the building Damaged siding with a hole on the east side of the building Missing attic exhaust fan guard Benton & Associates, Inc. recently completed a structural analysis of the building. The City can furnish the results of that study upon request. The majority of the building s eastern wall is attached to the building to the east at 123 E. Jackson St. The City encourages prospective bidders to visit the site for a walk-through before preparing a formal bid. Developer Responsibilities & Submission Requirements: Developers submitting a response to this Request for Proposals will be expected to address the following issues or topics in their written proposals: A written narrative describing the developer s vision of the project along with details on proposed uses. Provide a general site plan and/or architectural plan with photographic examples to show the quality and style of construction proposed. Provide estimated project budget, including property acquisition and need for TIF assistance. Submit a project timetable for the construction and completion of improvements. The City anticipates that the selected developer would be given six months to secure tenants and initiate zoning approvals, if necessary. This period of time may be extended for an additional six months if approved by the City. Ability to obtain any and all necessary zoning changes, variances, special use permits, building permits, certificates of occupancy, or other approvals from the City of Macomb to accommodate or facilitate the development of this property. Acceptance of a sale contract by the Macomb City Council does not explicitly ensure approvals from other boards, commissions, or other governmental entities having appropriate jurisdiction over development of the property, and the City specifically disclaims any such representation or understandings to the contrary. The City accepts no liability for the costs and expenses incurred by the Proposers with any activities performed in connection with this RFP process, including preparing their Proposals, preparing responses for clarification, conducting due diligence investigations and/or attending meetings and presentations required for the contract approval process. Each Proposer that enters into the RFP process shall prepare the required materials and submittals at its own expense and with the express understanding that they cannot make any claims whatsoever for reimbursement from the City for the costs and expenses associated with the RFP process. 5 P a g e
Developer s Qualifications: Those developers interested in responding to this Request for Proposals will be required to demonstrate an ability to meet the following criteria: Developer s anticipated project team (engineer, designer/architect, legal, builder/contractors, other). Portfolio of similar/past development projects with background information. Current in the payment of real estate taxes to McDonough County for all tax parcels owned in whole or part by the developer or any related or affiliated entity. Current in any amounts or accounts due to the City of Macomb. No significant code violations (past, present or pending) within the City of Macomb. No bankruptcy, receivership, conservatorship or other type of insolvency in the last seven (7) years for either developer or any related or affiliated entity or equity investor. If the developer has ever received a judgment against them for deficient performance under a contract, the developer must disclose this information to the City. Purchase Price: When evaluating proposals, the City will consider the final price offered for the property in conjunction with the quality of the redevelopment proposal, compatibility with the surrounding neighborhood, and overall benefit to Downtown Macomb. Questions/Requests for Information: Any questions or requests for further information pertaining to this RFP or development project should be submitted in writing to Ray Heitner, Community Development Coordinator, at cdc@cityofmacomb.com. Building Walk Through: The City highly recommends that parties interested in renovating the existing building conduct a walkthrough of the property before submitting a proposal. To schedule a tour, contact Mitch Flynn at mflynn@cityofmacomb.com. Submission of Proposals and Deadline: Interested developers are asked to submit an electronic copy (PDF format on a flash drive or CD) and two hard copies of their proposal in a sealed envelope no later than 10:00 A.M. on Thursday, September 28, 2017. Please be sure to mark the envelope RFP 133 W. Jackson St. Confidential Do not Open. Proposals should be submitted to: Melanie Falk City Clerk Re: RFP 133 W. Jackson St., Macomb, IL 61455 A Proposer may withdraw a Proposal up to the Proposal submission date provided that a written request to withdraw the Proposal is hand delivered to the City by or on behalf of an authorized representative of the Proposer, or the request is delivered by certified mail. Evaluation Criteria: The City will evaluate proposals submitted in response to this RFP and make an award in its sole discretion based on criteria including the following: 6 P a g e
1. Type of use proposed and compatibility with neighborhood; 2. Past success with similar developments; 3. Amount of tax revenues projected from the development; 4. Developer s qualifications and financial capabilities; 5. Price offered for real estate; 6. Other evaluative criteria as required and/or permitted by law. 7. The amount of gap financing required and the degree to which any requested gap financing is deemed imperative Review and Selection Process: During the City s review process, the City may request informal follow-up conversations and/or meetings with individual developers to seek clarification or better understanding of their respective proposals. The City expects to enter into exclusive negotiations on a sale contract with the preferred developer after making its selection. The City will notify bidders within 30 days of the bid opening date to either formally accept or reject developer bid proposals. City of Macomb Disclaimer: The City of Macomb reserves the right to reject without explanation any or all proposals, to alter specifications contained in the RFP, and to waive requirements and technicalities. The City of Macomb reserves the right to cancel and withdraw the RFP at any time. Offerors may be eliminated from consideration for failure to fully comply with the requirements within this RFP. Offerors submitting proposals in response to the RFP will be given notification of the results of the selection process. The contents of this packet are for informational purposes only and the statements made herein, although thought to be accurate, are without warranty or representation of accuracy. Offerors should rely exclusively on their own investigations and analyses. The City of Macomb will honor confidentiality requests to the extent permitted by law. If portions of your proposal are proprietary, please mark items as such. The City reserves the right to negotiate with any and all Offerors in order to obtain terms most beneficial to the City. The City reserves the right to accept the proposal from the most responsive and responsible offeror which is most advantageous to the City as it, in its sole and exclusive discretion, determines. Conflict of Interest: Developers submitting a response to this Request for Proposals are asked to include a signed statement indicating that no official or employee of the City of Macomb has an interest in the developer s business 7 P a g e
nor in this development project as it pertains to the purchase of the property or transfer of the ownership thereof. Confidentiality: The City recognizes the developer may, as part of the RFP, submit to the City financial or other information which the developer deems to be of a sensitive nature. Such information may be submitted under a separate cover and labeled Confidential at the developer s discretion. This information will be used by City staff only for the purpose of evaluation and kept confidential to the extent allowed by the Illinois Freedom of Information Act, 5 ILCS 140/1 et. seq. and the Illinois Open Meetings Act, 5 ILCS 120/1 et. seq. Certification in Compliance With 720 ILCS 5/33E-11Illinois Compiled Statute: Interested developers are asked to prepare and sign such a statement as part of their proposal. The undersigned individual certifies that he or she is not barred from submitting a response to this 133 W. Jackson St. Request for Proposals (RFP) as a result of a violation or either 720 ILCS 5/33e-3 or 720 ILCS 5/33e-4, bid-rigging or bidrotating. Signature of Individual: Type of Business Entity (e.g. Corporation, LLC, etc): Business Address: Business Phone Number: SUBSCRIBED AND SWORN to before me on this day of, 201_. (seal) Notary 8 P a g e