ACTION REQUESTED:
Title
Communication from the City Manager and the Community Development Director with a Request to Receive and File the Request for a PROPOSAL PROCESS for CITY-OWNED PROPERTY.
Body
BACKGROUND: At the request of Council, Community Development and Economic Development staff have been working to create a process to ensure structures are only demolished as a measure of last resort. The new process will allow interested parties an opportunity to submit a proposal to the City for rehabilitation of the structure.
Through the abandoned property process, the City of Peoria has been acquiring structures slated for demolition. The State of Illinois statute permits the City to request ownership of a structure if the property has two or more years of unpaid taxes or two or more years of unpaid water invoices. If the property owner does not contest the demolition order or the request from the City to receive ownership of the structure, a judicial deed is awarded to the City. The City has not taken any property through the abandoned property process that does not have a demolition order on the structure. These properties are typically in such a state of disrepair that demolition is the only feasible solution.
Staff assesses the condition of the structure from the street level to determine the structural integrity, roof condition, siding and windows. Through this assessment, staff is able to determine if there are major damages to the house that would prevent a practical rehabilitation. Staff will also conduct a real estate market analysis on the home values in the surrounding areas to determine the potential value of the structure if successfully rehabilitated.
If a property passes the visual assessment and real estate market analysis, staff will enter the structure to evaluate the interior condition of the structure. Should the interior of the structure be found in a state that allows for a successful rehabilitation of the property, a Request for Proposals (RFP) will be issued. If the property is not suitable for rehab, the demolition process would continue and one of the salvage contractors would enter to salvage material before the demolition.
The intent of the RFP will be to find an individual, development firm, neighborhood association, etc. to properly rehabilitate the structure for occupancy. Proposals will be evaluated based on qualifications, scope of work and financial ability of the applicant. After selecting a winning proposal, the City will agree to enter into a contract that allows the winning proposal to get proper permits and begin work. The City will hold the deed to the property until a Certificate of Occupancy is issued to ensure that the work is done properly and in a timely manner.
FINANCIAL IMPACT: On average, $8,000 in demolition funds will be saved for each house that is rehabilitated instead of demolished.
NEIGHBORHOOD CONCERNS: Structures that are properly rehabbed will be an improvement to a neighborhood.
IMPACT IF APPROVED: RFPs would be issued for qualified structures.
IMPACT IF DENIED: All houses received through the abandoned property process would be demolished.
ALTERNATIVES: None
EEO CERTIFICATION NUMBER: Not applicable
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Attractive Neighborhoods with Character: Safe and Livable
2. Financially Sound City Government, Effective City Organization
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
2. Have an efficient government.
3. Support sustainability.
DEPARTMENT: Community Development