Submitted By
Tammie Grossman, Director of Development Customer Services
Reviewed By
LKS
Agenda Item Title
Title
An Ordinance Approving a Redevelopment Agreement for the 700-728 Madison Street Redevelopment Project Consistent with the Oak Park Economic Development Corporation’s (Oak Park EDC) Recommendation between the Village of Oak Park and Jupiter Realty Company, LLC (Jupiter), Oak Park Madison Street LLC (Pete’s) and 711 Madison Senior Living, LLC and Authorizing its Execution
End
Overview
Overview
On October 29, 2018, the Board named Jupiter as the preferred developer based on the Oak Park EDC recommendation after their review of responses to the Village’s Amended Request for Proposals dated May 25, 2018 and directed to negotiate a redevelopment agreement (RDA). Jupiter as preferred developer has control over non-Village owned property and is partnering with Pete’s Fresh Market and Paragon to fully develop the Village owned site and the private parcels. Staff is now presenting the Redevelopment Agreement for the Board’s review and consideration.
Body
Staff Recommendation
Approve the Ordinance.
Fiscal Impact
The Oak Park EDC provided the attached financial analysis of the proposals.
Background
Pursuant to State Law, property owned by a Village and located within the boundaries of a TIF District may only be conveyed or sold following public disclosure of all proposals received in response to a competitive Request for Proposal (RFP) process.
Between 2001 and 2005, the Village purchased the properties located at 710-728 Madison for a total for $2,206,500. After acquisition and demolition of existing structures, the Village has operated a parking lot on the site. In 2009, the Village entered into a lease with Fenwick High School. In anticipation of a proposed development, the Village did not renew its lease with Fenwick for the 2018-2019 school year.
On September 16, 2018, the Village issued an RFP for the property at 710-728 Madison and on December 5, 2016, Jupiter Realty Company was named the preferred developer. The RDA between the Village and Jupiter, for the 710-728 Madison properties, was never finalized.
Subsequently, on November 2, 2017, the Village acquired the adjacent parcel at 700 Madison (Former CarX) for the purchase price of $1.2 million. With the addition of the new parcel, staff communicated to Jupiter that a new RFP for the combined parcels would be issued and that their existing preferred developer status would not automatically apply to the new RFP process.
On May 18, 2018, the Village issued a new RFP for the properties on the north side of Madison between Oak Park Avenue and Euclid. On May 25, 2018, the Village issued an amended RFP extending the due date to July 6, 2018, clarifying the Village’s potential willingness to allow a cul-de-sac at Euclid Avenue.
The Oak Park EDC reviewed the submissions to the revised RFP and presented a recommendation to enter into a redevelopment agreement with Jupiter to combine the Village owned parcel at Oak Park and Madison with the property located at 644-640 Madison to partner with Pete’s Fresh Market to build a grocery store and the property located at 725 and 711 Madison to construct a Senior Living Facility.
Alternatives
Refer the matter back to the Oak Park EDC for additional information and/or further review.
Previous Board Action
On September 6, 2016, the Village Board directed staff to issue a RFP for the Village owned parcel at the corner of Madison and Oak Park Avenue (710-728 Madison).
On December 5, 2016, the Village Board approved a motion to designate Jupiter Realty Company, LLC (Jupiter) as the preferred developer for the redevelopment of 710-728 Madison Street as recommended by the Oak Park EDC and directed staff to negotiate a redevelopment agreement.
On September 5, 2017, the Village Board authorized the purchase of 700 Madison, Oak Park, Illinois.
On May 7, 2018, the Village Board approved a motion to direct the issuance of an RFP for 700 - 728 Madison. A draft document was submitted to the Village Board for comment and amendments were made.
On October 1, 2018, the Village Board approved a resolution for an independent contractor agreement with Delta Demolition, Inc. for the demolition of 700 Madison Street, in an amount not to exceed $141,425.
On October 29, 2018, the Village Board approved a motion to name Jupiter as the preferred developer and directed staff to negotiate a redevelopment agreement consistent with that recommendation.
Citizen Advisory Commission Action
Both of the developers for the grocery store development and the senior housing development will need to submit applications for a planned development that will be reviewed by the Plan Commission.
Anticipated Future Actions/Commitments
The Village Board will review any recommendations made by the Plan Commission.
Intergovernmental Cooperation Opportunities
N/A.
Performance Management (MAP) Alignment
A governance priority for the Development Customer Service Department is Economic Development Management.