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Date
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March 8,
2010
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Agenda
Item No. 31 Roll
Call No. 10- Communication No. 10-133 Submitted by:
Merrill Stanley, |
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AGENDA
HEADING:
Resolution
granting an extension on the time allowed to negotiate
a contract for the sale and redevelopment of
SYNOPSIS:
By Roll
Call 09-2306, dated December 21, 2009, the City Council selected a group
comprised of the Community Foundation of Greater Des Moines, Des Moines Area
Community College (DMACC) and Save Stores, LLC, as the Preferred Redeveloper of
the property located at 801 University Avenue (formerly occupied by Top Value Foods), and authorized the City Manager
or his designee to negotiate with the Preferred Redeveloper over the next 60
days on a contract for the disposition and redevelopment of the property in
substantial compliance with the terms submitted in the Letter of Intent To
Redevelop Property.
The chosen Redeveloper has requested an extension to March 31, 2010 to
negotiate a contract for the sale and redevelopment of the property to complete
the following items: (1) environmental
review of the property, and (2) finalization of its financial arrangements in
order to provide the City with evidence of financing commitments to complete the
redevelopment proposal.
FISCAL
IMPACT:
Amount: Preferred Redeveloper is expected to fully pay the outstanding
balance ($1,780,957) of the Housing and Urban Development (HUD) Section 108 Loan Guarantee Note within 60 days after execution of the formal
agreement. Additionally, upon
completion of the disposition of the property to the Developer, the portion of
the site that contains retail uses will become taxable.
Funding Source: HUD Section 108 Loan to be paid; does not
impact City funds.
ADDITIONAL
INFORMATION:
Staff’s recommendation to select a group comprised of the
Community Foundation of Greater Des Moines, DMACC and Save Stores, LLC as the
Preferred Redeveloper of the Property was based on the evaluation that their
proposal most closely fulfills the City’s goals for redevelopment of the
site.
The recommended
proposal provides that 66% of the building will be dedicated to retail services
by providing:
(1)
a 17,200 square foot Save-A-Lot grocery store offering fresh meats, breads,
dairy, frozen and fresh fruits and vegetables, private and national label non-perishable
goods and general household items; and
(2)
a 5,000 square foot Dollar Plus Store offering housewares,
baby supplies, health and beauty and office and school supplies.
Both
of these retail outlets will be owned and operated by Save Stores, LLC, with
Ray Brown as general manager.
The
remaining 12,800 square feet will house the Evelyn Davis Workforce/Re-engagement
Center. The
Both
the retail operator and the
In the
recommended proposal, DMACC has expressed its interest to purchase any vacant
space that may come available, if the retail ventures are not successful. Further, DMACC commits to make every attempt
to seek out and occupy that space with new commercial retail outlets.
PREVIOUS
COUNCIL ACTION(S):
Date: December 21,
2009
Roll Call Number: 09-2306
Action: Approving City Manager recommendation on redevelopment
proposal for
BOARD/COMMISSION
ACTION(S): NONE
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS:
Approval of the Redevelopment Agreement stipulating
the terms and conditions required to convey title to the property at
For more information on this and other agenda items,
please call the City Clerk’s Office at 515-283-4209 or visit the Clerk’s Office
on the second floor of City Hall,