ACTION REQUESTED:
Title
Communication from the City Manager and Community Development Director with a Request to Approve the Purchase Contract between Access Peoria, LLC, an Illinois Limited Liability Company and the City of Peoria for Property Located at 1831 N. Peoria and 1634 N. Missouri for the Sale Price of $2,250.00. (District 3).
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BACKGROUND:
The City is a team member of the Partners for a Better East Bluff. This partnership was created as a result of the $3 million dollar grant award from the Illinois Attorney General Office (AG) to Local Initiatives Support Corporation (LISC) from the National Foreclosure Settlement funds.
Through the partnership, the City is able to provide various resources and assistance to accomplish neighborhood revitalization in the East Bluff, specifically in the East Village Growth Cell TIF. The City currently owns the property located at 1831 N. Peoria and 1634 N. Missouri. These sites have been identified by Access Peoria as possible locations for development.
Access Peoria, LLC was formed by Illinois Facilities Funds (IFF). IFF is team member of the Partners for a Better East Bluff and their role is for development of affordable, rental housing for low income households with disabilities. LISC will award Access Peoria $1 million of the AG funds for the development of eight (8) new construction duplexes that will provide a total of sixteen (16) rental units. Illinois Housing Development Authority (IHDA) will also provide $2,577,638 of funding for the project. The final funding source for the project, pending City Council approval, is the allocation of $408,827 in Federal grant funds (the City's HUD HOME grant funds). The total project funding is $3,986,465.
Currently, Access Peoria has acquired six (6) vacant lots from the County Trustee. If the purchase contract is approved, Access Peoria will have site control for all eight (8) lots needed for the development.
The City has owned the property at 1831 N. Peoria since April 1988. Recently the City has combined the two (2) vacant lots into one; the combination will be effective with the 2014 tax year.
In February 2014, the City took ownership of the property located at 1634 N Missouri by a court ordered Judicial Deed through the demolition process as an abandoned property. The draft purchase contract between the City and Access Peoria includes language regarding property demolition of the structure on 1634 N. Missouri prior to closing. The City will demolish this structure using its current demolition contractor and the funds to be provided by LISC through the AG grant.
The total sales price for the properties is $2,250. Additionally, Access Peoria will provide a closing cost allowance to the City in an amount not to exceed $500. The closing date is scheduled to occur on or before December 31, 2014. Attached to this Communication is a draft copy of the purchase contract (Attachment 1).
The properties at 1831 N. Peoria and 1634 N. Missouri are located in the East Village Growth Cell (EVCG) Tax Increment Financing District (TIF). Per State statue, before the City can agree to, convey or dispose of property located within a TIF, the City must provide a reasonable opportunity for alternative proposals to be submitted for the property. As such, the City published a legal notice in the Peoria Journal Star on October 4, 2014 stating its intention to convey the property to Access Peoria for the project. The notice allowed for other interested parties to submit alternative proposals or bids that would be accepted on or before October 21, 2014. No other proposals or bids were submitted to the City for the properties at 1831 N. Peoria and 1634 N. Missouri.
FINANCIAL IMPACT: The City will transfer the property at 1831 N. Peoria and 1634 N. Missouri to Access Peoria in the amount of $2,250. In addition, Access Peoria will provide a closing cost allowance to the City in an amount not to exceed $500.
NEIGHBORHOOD CONCERNS: The property transfer is a part of Access Peoria's total project under the Partners for a Better East Bluff initiative. Since the AG grant award announcement in 2013, the Partners for a Better East Bluff have actively engage residents and community leaders in the planning and development of activities funded under the AG grant. Residents have been supportive of the Partners' plans and proposed development.
IMPACT IF APPROVED: The City will transfer the property at 1831 N. Peoria and 1634 N. Missouri to Access Peoria to be developed as a part of the Partners for a Better East Bluff initiative.
IMPACT IF DENIED: The City will not transfer the property at 1831 N. Peoria and 1634 N. Missouri to Access Peoria to be developed as a part of the Partners for a Better East Bluff initiative. The City will retain ownership of the property and continue to seek development opportunities.
ALTERNATIVES: None.
EEO CERTIFICATION NUMBER: Access Peoria, LLC.: 03309-151231
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
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
DEPARTMENT: Community Development