Submitted By
Tammie Grossman, Director of Development Customer Services
Reviewed By
LKS
Agenda Item Title
Title
Motion to Concur with the Oak Park Economic Development Corporation (Oak Park EDC) Recommendation to Name Jupiter Realty Company, LLC (Jupiter) as the Preferred Developer for 700-728 Madison and Direct Staff to Negotiate a Redevelopment Agreement.
End
Overview
Overview
After reviewing responses to the Village’s Amended Request for Proposals dated May 25, 2018, the Oak Park EDC is recommending that the Village name Jupiter Realty Company as the preferred developer for the Village Owned parcels at 700-728 Madison. If approved, staff will negotiate a redevelopment agreement (RDA) and present it to the Village Board for approval at a later date.
Body
Staff Recommendation
Discussion.
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.
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.
Citizen Advisory Commission Action
N/A.
Anticipated Future Actions/Commitments
If the motion is approved, staff will present a Redevelopment Agreement with the developer for approval.
Intergovernmental Cooperation Opportunities
N/A.
Performance Management (MAP) Alignment
A governance priority for the Development Customer Service Department is Economic Development Management.