ACTION REQUESTED:
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Communication from the City Manager with a Request for the Following:
A. APPROVE a CONTRACT with JIMAX LANDSCAPE LLC for $54,450.87 to Provide Debris Removal Services for 1318 SW ADAMS.
B. ADOPT an ORDINANCE Amending the City of Peoria 2016-2017 BIENNIAL BUDGET Relating to the Use of the Warehouse District TIF Fund Balance.
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BACKGROUND: The City has acquired judicial title through the abandoned property process to 1318 SW Adams. The property, which last was a single-room occupancy residential complex for low income individuals, has been vacant for years. The property includes a multi-story building (partly 2-story, partly 3 story) that is likely around 40,000 square feet of space. The structure sits on a parcel that is 0.62 acres in size and includes a small surface parking lot. (See attached location information.)
While the building appears structurally sound, its interior is in terrible condition. The basement alone is filled with hundreds of mattresses and television sets. The upper floors consist of a series of small rooms that are littered with trash. The City would like to market the property to potential developers, but feels that the building needs to be cleaned first. The City issued a Request for Bid for debris removal services on July 28, 2016. While two bids were returned, one company withdrew their bid. The lone remaining bid from JIMAX was for $54,450.87. That bid included $28,674.87 to clean the basement and remove all mattresses and televisions, and $25,776.00 to remove debris from the rest of building.
Once the debris is removed, staff plans to issue a Request for Proposal for potential development of the property. Like the RFP for Washington School, the request would set a minimum bidding price of $100,000 that would cover the cost of debris removal. The RFP would consider multiple factors including bidding price, overall redevelopment plan, financial capacity and developer track record. Any resulting contract with a developer would include assurances that the project would be completed or the property would revert to City ownership.
FINANCIAL IMPACT: $54,450.87 would be allocated from the unobligated balance in the Warehouse District TIF. A successful redevelopment of the property would yield revenue from the sale price as well as increases in property taxes.
NEIGHBORHOOD CONCERNS: Redevelopment of the Warehouse District is a widely held community goal. The property is currently a blighting influence on its neighbors.
IMPACT IF APPROVED: JIMAX will be hired to remove debris from the property.
IMPACT IF DENIED: The property will remain in its current condition.
ALTERNATIVES: The property could be listed as available in its current condition, but staff believes that its state would not yield competitive offers.
EEO CERTIFICATION NUMBER: 03104-1170331
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Vibrant Downtown: Riverfront/ Central Business District/ Warehouse District
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
DEPARTMENT: City Manager's Office