ACTION REQUESTED:
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Communication from the City Manager and Community Development Director with a Recommendation to Enter into a One-Year AGREEMENT with WHISKEY CITY SALVAGE, LLC for the Salvage of Materials from Structures Slated for Demolition (City-Wide).
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BACKGROUND: On January 27, 2015, the City entered into an agreement with Peoria Architectural Salvage, LLC for the salvage of architectural elements from houses that were slated for demolition. The purpose of that agreement was to enable the recovery and reuse of some elements of structures rather than simply sending the entire structure to the landfill. While this was not fully functional de-construction, the City believed at the time that it was a good introduction to the concept and a reasonable way to test the market.
The past year of work with Peoria Architectural Salvage, LLC has been very successful and has shown that there is a market for salvaged materials. The plan is to send an extension of the one-year agreement with Peoria Architectural Salvage, LLC to Council for renewal before the end of the year.
A second salvage company, Whiskey City Salvage recently contacted the City about entering the salvage business. As discussed when the City entered into the agreement with Peoria Architectural Salvage, the City is open to agreements with other salvage companies, as long as they can show that they have the necessary insurance coverage and ability to properly complete the salvage process.
Whiskey City Salvage has provided the required insurance documentation and information on their business and business plan. If approved by Council, the houses on the City demolition list will be divided up between the two salvage companies in an equitable manner. We believe that there is sufficient work going forward to provide salvage opportunities for both companies. We would want to conduct a complete review if a third company requested access to the properties.
FINANCIAL IMPACT: NA...
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