ACTION REQUESTED:
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Communication from the City Manager with a Request to APPROVE the Sale of 839 W. MOSS AVE to SAM MACH and to Authorize the City Manager to Draft and Execute the Purchase CONTRACT (District 2).
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BACKGROUND: Since the fall of 2013, the City of Peoria has been partnering with Peoria Public Schools District 150 to sell District-owned property at 839 W. Moss Ave., often referred to as Old Washington School. This building last served as the District’s Alternative Education facility, but ceased operating as such at the conclusion of the 2010-2011 school year. The District has declared it as “excess property” and has been seeking a buyer for the last few years. At the request of the City, District 150 agreed to transfer the property to the City so it could create a public Request for Proposal (RFP) process that would both provide the District with at least its asking price of $150,000 and ensure that the new owner of the property used it in a manner consistent with the residential character of the surrounding neighborhood.
The City has issued three separate RFPs to attract a buyer for the property. The first two (October 2013 and March 2014) yielded viable proposals, but both were withdrawn by the buyers prior to purchase. In January 2015, the City issued its third RFP with a due date in April 2015. One responsive proposal was received from Sam Mach, a local businessman seeking to use the property as a Buddhist temple. Mr. Mach plans for some modest improvements to the building immediately, including transforming the gymnasium area into the worship area and making life-safety improvements. Over time, Mr. Mach would hope to utilize more of the building to add educational and language classes.
Per the Intergovernmental Agreement between the City and District 150, it is the City’s responsibility to sell the property to Mr. Mach and give the proceeds, minus any closing costs, to the District. Mr. Mach has requested 120 days to close so that he can perform additional due diligence on the building. The purchase contract will also contain a provision granting the right of first refusal to the City should Mr. Mach ever wish to sell the property. District 150 has indicated support for this purchase and its terms, but the City will also send written notice to the School Board, upon an affirmative vote of the City Council, as per the Agreement. Staff does not anticipate any further issues.
FINANCIAL IMPACT: Per the Agreement, the City is serving as a conduit between District 150 and Mr. Mach. That same Agreement outlines that the City is responsible for all costs associated with the building (i.e. utilities) during this period. While those costs are modest, it is in the City’s interest to find a qualified and acceptable buyer as soon as practical. There is not a Buddhist temple in the region; the closest is in Galesburg. It is likely that a temple in this location will draw visitors from a considerable distance.
NEIGHBORHOOD CONCERNS: Two meetings were held with neighborhood stakeholders, including the Moss-Bradley Residential Association (MBRA), to discuss the proposal. At the first meeting, some concerns were raised about the long term viability of the project and the size of the Buddhist community. At the second meeting, held on August 19, 2015, Mr. Mach was joined by a number of local Buddhist families, presented a petition with dozens of signatures, and answered questions about his future plans. At the conclusion of the meeting, the MBRA (who comprised the vast majority of those in attendance) voted overwhelmingly to recommend sale of the property to Mr. Mach. It should be noted that this action by the Council is limited to the sale; approval of the property’s use as a religious facility requires a special use that will be the subject of a separate future process.
IMPACT IF APPROVED: City staff will notify the District 150 Board in writing of the offer and terms, draft the purchase contract and execute the contract. Mr. Mach will have 120 days to close and will take possession.
IMPACT IF DENIED: Mr. Mach’s proposal would be rejected. The current Agreement between the City and District 150 expired on July 31, 2015 and would need to be extended. Alternately, District 150 could seek a buyer on its own based on the highest price offered.
ALTERNATIVES: None recommended.
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
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
DEPARTMENT: City Manager's Office