ACTION REQUESTED:
Title
Communication from the City Manager with a Request to Approve the Sale of 839 W. MOSS AVE to MONTESSORI CHILDREN'S HOUSE OF PEORIA and 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.
In October 2013 the City released its first RFP on this project. While the process yielded one proposal, that proposal was withdrawn before a purchase contract could be finalized. In March 2014 the City re-released its RFP with a deadline of June 13, 2014. The City received two proposals, one of which was subsequently withdrawn. The remaining proposal is from the Montessori Children's Home of Peoria (MCHP). MCHP has offered to purchase the property for $150,000 (meeting the District's minimum asking price). They intend to use the building as it was intended when built, as a school. Starting in the 2015-2016 school year, MCHP intends to operate its K-6 school in the facility. Their proposal is attached. They plan to make some modest improvements to the buildings and grounds and would hope to eventually expand their program offerings to higher grades. In the first few years, they might also rent unused classroom space to other community and educational groups.
Per the Intergovernmental Agreement between the City and District 150, it is the City's responsibility to sell the property to MCHP and give the proceeds, minus any closing costs, to the District. MCHP has requested 120 days to close so that they can perform additional due diligence on the building. District 150 Superintendent Grenita Lathan 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 MCHP. 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.
NEIGHBORHOOD CONCERNS: A special meeting of the Moss-Bradley Residential Association (MBRA) was held on July 9, 2014 to discuss this proposal. MCHP leadership presented their concept and answered questions from the audience. At the conclusion of the meeting, the MBRA voted unanimously to recommend sale of the property to MCHP. It should be noted that this action by the Council is limited to the sale; approval of the property's use as a school requires a special use that will be the subject of a separate future process.
There was some concern mentioned during the meeting regarding two items. First, some wanted assurances that any exterior changes to the property would meet the standards of being in a local historic district. Mr. Cox, the head of school for MCHP, indicated that they fully intended to comply with those standards. Additionally, any exterior improvements or changes would need the approval of the City and its Historic Preservation Commission. Second, there was some concern regarding how the building might be used by groups other than MCHP. Since the use of this property by MCHP will require a special use, staff indicated that certain restrictions (such as time of operation) could be conditions presented to the Planning and Zoning Commission and eventually the City Council. This process will also include an additional opportunity for citizen input.
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. MCHP will have 120 days to close and will take possession with the intent of opening in the summer of 2015.
IMPACT IF DENIED: The MCHP proposal would be rejected. The current Agreement between the City and District 150 expires on August 31, 2014 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