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HomeMy WebLinkAboutItem 06.r Date: Item No. KEOKUK AVENUE PROPERTY REQUEST FOR PROPOSALS Proposed Action Staff recommends adoption of the following motion: Move to authorize requests for proposals to be distributed for the development of the Keokuk Avenue property. Overview In 2014 the city purchased 4.57 acres (Lots 2 and 3 of the Lakeville Commerce Center plat) for the future construction of a fourth liquor store along Keokuk Avenue in the northwest corner of Interstate 35 and County Road 70. Earlier this year the city initiated a market study, completed by the Shenehon Company, that recommended the city move forward with constructing a store at this location. The City Council at their August 26th work session reviewed the market study and directed staff to prepare an RFP with the following development options: • Own/Sell: The city would construct and retain ownership of a 12,500 square foot stand-alone store on a separate parcel and sell the remainder of the property for private development. • Own/Sell/Partnership: The city would partner with a developer to construct the liquor store and an attached retail center through a CIC plat, condominium or zero lot line type development. The developer would retain ownership of the retail center and the city would retain ownership of the municipal liquor store area. • Sale/Leaseback: The city would sell both parcels to a developer who would build the municipal liquor store and an attached retail center, and the city would enter a long-term lease for the liquor store space. Staff recommends the distribution of the RFP to obtain proposals for the development of the Keokuk property including a location for a municipal liquor store. Primary Issues to Consider • Is the city required to choose a proposal? • Who will receive a request for a proposal? Supporting Information • Keokuk Avenue RFP Financial Impact: $ Budgeted: Y☐ N☐ Source: Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Allyn G. Kuennen, Assistant City Administrator October 7, 2019 0 n/a SUPPORTING INFORMATION - Is the city required to choose a proposal? • The RFP includes flexibility for the city to: (a) accept or reject any and all proposals and/or any part or parts thereof, (b) negotiate modifications of proposals submitted, (c) negotiate terms and conditions with proposers which are different than those specified in this RFP, (d) discontinue, suspend or abandon the proposed sale, purchase and/or development of the property, (e) amend or withdraw the RFP at any time, and/or (f) terminate the RFP and proceed with the sale and/or development of the property in some other manner. Who will receive the RFP? • The city will use our various written and digital media outlets to notify the development community regarding the RFP. In addition, a letter will be sent to a list of developers that have shown previous interest in the property or have previously completed development work within the city. City of Lakeville Request for Proposals for the Development of Commercial Property Contact: Allyn Kuennen Assistant City Administrator City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 (952) 985-4402 akuennen@lakevillemn.gov Dated: October 8, 2019 Responses Due: 4:30 p.m. November 8, 2019 Page 2 of 7 Introduction The City of Lakeville currently operates three municipal liquor stores and is the largest and most profitable municipal liquor operation in the State of Minnesota. In 2018 the three current stores had gross sales of over $15.2 million and the city’s operation is consistently recognized for its excellence in customer service, low operating costs, community service and revenues. Lakeville is an actively developing city encompassing 38 square miles with a vibrant historic downtown, residential neighborhoods, premier retail areas and businesses, and a growing and diverse corporate and industrial base. With a current population of over 63,000, Lakeville continues to be one of the fastest growing communities in the Twin Cities metro area. The city provides a full range of public services including police and fire protection, construction and maintenance of streets, infrastructure and public utilities, cultural and recreational activities, and administration. The Lakeville City Council is the final review and approval authority regarding all contracts, payments, plans, improvements, policies, procedures and other business of the city. The City Council is composed of the Mayor and four Council members. The Council is the legislative and policy making body of the city. The Mayor, who presides over the City Council meetings, is elected at large for a four-year term. Council members are also elected at large for a four-year term. The current council is as follows: Name Title Term Expires Doug Anderson Mayor 12-31-22 Luke Hellier Council Member 12-31-20 Joshua Lee Council Member 12-31-22 Michelle Volk Council Member 12-31-22 Brian Wheeler Council Member 12-31-20 The city also has a Liquor Operations Committee comprised of Council Members Wheeler and Lee. The Liquor Operations Committee is responsible for reviewing policies related to operating the liquor stores and making recommendations to the full City Council. Scope of Services In 2014 the city purchased 4.57 acres (Lots 2 and 3 of the Lakeville Commerce Center plat) for the future construction of a fourth liquor store along Keokuk Avenue in the northwest corner of Interstate 35 and County Road 70. It is not anticipated this store would encompass the entire 4.57 acres. Therefore, the city is requesting proposals for the following development options: 1. Own/Sell: The city would construct and retain ownership of a 12,500 square foot stand-alone store on a separate parcel and sell the remainder of the property for private development. 2. Own/Sell/Partnership: The city would partner with a developer to construct the liquor store and an attached retail center through a CIC plat, condominium, or zero lot line Page 3 of 7 type development. The developer would retain ownership of the retail center and the city would retain ownership of the municipal liquor store area. 3. Sale/Leaseback: The city would sell both parcels to a developer who would build the municipal liquor store and an attached retail center, and the city would enter a long- term lease for the liquor store space. The overall goal in partnering with a developer is to reduce overall construction and operational costs, add complimentary adjacent retail uses that will mutually benefit all tenants within the retail center and to have an operational municipal liquor store by no later than October 1, 2021. Respondents may submit scenarios for one or any of the above outlined options. Proposal Review Schedule The following is a tentative schedule for review of the proposals:  Send out request for proposals: October 8, 2019  Proposal submittal due date: November 8, 2019  Liquor Committee review proposals and  determine finalist(s): November 18, 2019  CC review proposal finalist(s): November 25, 2019  Negotiate development details and contract: December 2019/January 2020  City Council approve final contract with developer: February 2020 Location/Property Description The two parcels (4.57 acres) are located in the northwest quadrant of the I-35 and CR- 70/210th Street interchange and is zoned C-3, General Commercial (PID Numbers 224434001031 and 224434001020). The surrounding uses include Emagine Movie Theater, Walmart Super Center, Aldi’s Grocery Store, Hampton Inn, Candle Wood Suites, Compeer Financial, Speedway Gas Station, Harry’s Restaurant, and other multi-tenant office buildings and retail uses. The site is also surround by high, medium and low-density residential neighborhoods. Access to the property would be from Keokuk Avenue. Traffic counts taken in 2018 adjacent to the site indicated 5,900 average daily trips on Keokuk Avenue, and 20,500 average daily trips on CR-70/210th Street. The site is also visible and directly adjacent to Interstate-35 which has an average daily traffic of over 69,000 trips. It is anticipated the Keokuk municipal liquor store will have nearly 3.5 million dollars in gross sales revenue within the first year and attract over 175,000 customers annually to this location. Page 4 of 7 Development Process Any development or subdivision of the property will be required to pay all applicable development/building permit fees and connection charges and follow the standard City of Lakeville development review process to obtain the necessary approvals and permits from the Planning Commission and City Council. The City acknowledges any purchase agreement will be contingent upon the buyer obtaining the necessary approvals. Design and construction of the development must be consistent with the City of Lakeville Zoning and Subdivision Ordinances and the plat’s underlying Declaration of Restrictions dated June 25, 2003. Attached Exhibits: The following exhibits have been attached for your consideration:  Location Map  Zoning Map  Business Map  C-3 Zoning District Development Standards  Underlying Declaration of Restrictions  Geotechnical Evaluation Reports Proposal Format Proposals should include the following information: 1. Transmittal Letter – The transmittal letter shall include the legal name of your firm, address, contact person, telephone number, email address, proposed purchase price for the property, and lease terms for the liquor store space, if applicable. 2. Development Concept – a sketch plan indicating the proposed layout of the property. 3. Project Approach – Provide a brief written description of the general approach that will best achieve the objectives specified in this RFP for the project. 4. Financial Capacity – Provide qualifying background experience with commercial/retail development demonstrating sufficient financial resources to complete the purchase and project development. 5. Project Schedule – Include a preliminary timeline for the development of the site to ensure the municipal liquor store is operational as soon as possible and no later than October 1, 2021. 6. Statement of Qualifications – Include descriptions of relevant examples of commercial/retail projects completed within the past five years that are comparable in scope to the project. Page 5 of 7 Selection Process Proposals will be evaluated using the following criteria: 1. Purchase price and/or lease terms, as applicable 2. Terms of the purchase offer and proposed lease rate, if applicable 3. Proposed manner and quality of site design and development of the property 4. Capability and experience to accomplish the development 5. Schedule to complete the development 6. Determination of which proposal will be most beneficial to the City of Lakeville Following the opening of the proposals, the City intends to select one or more proposers to discuss their submittal in more detail. Next, the City will present to one of the proposers a written purchase agreement for the sale, purchase and/or development of the property which, if accepted by the proposer, will be submitted to the City Council for consideration. Any sale of the property is subject to approval of the Lakeville City Council. No purchase or other agreement shall be binding until and unless it has been approved and authorized by a resolution of the City Council, and a purchase agreement has been signed by the necessary officials of the City. The City reserves the right to: (a) accept and reject any and all proposals and/or any part or parts thereof, (b) negotiate modifications of proposals submitted, (c) negotiate terms and conditions with proposers which are different than those specified in this RFP, (d) discontinue, suspend or abandon the proposed sale, purchase and/or development of the property, (e) amend or withdraw this RFP at any time, and/or (f) terminate this RFP and proceed with the sale and/or development of the property in some other manner. The city may, at its option, request interviews/oral presentations prior to selection. No public bid opening will be held. A listing of firms presenting proposals will be available. As primary contact, Allyn Kuennen will coordinate appointments with staff and/or the selection committee to answer any questions or set up interviews. Communications with other city staff or elected officials of the city will constitute automatic rejection of that firm’s proposal. The city reserves the right to request clarification of the information submitted and to request additional information of one or more applicants. The closing on the purchase agreement shall be subject to the buyer applying for and receiving all necessary governmental permits including but not limited to Planning Commission and City Council approval. No municipal financial incentives to assist with land development will be considered with this RFP. No brokers fees or commissions will be paid by the City. Page 6 of 7 This will be an arms-length transaction with a willing seller and a willing buyer. The City will not consider a proposal from anyone who has a perceived conflict of interest. If you are in doubt about whether such a conflict exists for you, please call Assistant City Administrator, Allyn Kuennen at 952.985.4402 or contact by email at akuennen@lakevillemn.gov. Terms & Conditions By submitting a proposal in response to this request you agree to the following terms and conditions: 1. Each proposer shall be responsible for understanding the terms of this RFP, the conditions of the property and any other factors that bear upon successful purchase and development of the subject property. The proposer’s failure or neglect to review any stipulations of a purchase agreement, development contract and the provisions of this RFP will not relieve the proposer of any contractual obligations contained in a purchase agreement, a development contract or requirements under the RFP. The proposer shall have no claim for relief based on a lack of knowledge of the content or legal effect of any such provision. 2. Public records - all proposals and other information submitted by a proposer shall be treated as non-public data until the proposals are opened for review by the City. Once the proposals are opened, their content will become available to the public as provided by the Minnesota Government Data Practices Act, except for information that the proposer claims at the time of its submittal to be a trade secret and it is determined as such. 3. The City of Lakeville shall not be liable for any expenses incurred by a proposer in relation to the preparation or submittal of a proposal, including but not limited to: expenses incurred by the proposer in preparing a proposal or related information in response to the RFP, negotiating with the City on any matter related to the RFP, and costs associated with interviews, meetings, travel or presentations. Additionally, the City shall not be liable for expenses incurred as a result of the City’s rejection of any proposals made in response to this RFP. 4. This RFP is intended solely as a request for proposers to submit proposals for the purchase and development of the property. This RFP is not a tender of, nor an offer by, the City, and there shall be no obligation or commitment by the City to consider a proposal or enter into negotiations for, or enter into a purchase agreement for the sale, purchase and/or development of the property with any proposer resulting from the issuance of this RFP. 5. Any proposal may be withdrawn up to the proposal deadline. 6. Any agreement or contract resulting from the acceptance of a proposal shall be on forms either supplied by or approved by the city and shall contain, at a minimum, applicable provisions of the request for proposals and other terms to be negotiated between the parties. The City reserves the right to reject any agreement that does not conform to the request for proposals, additional city requirements, or any standard city terms for the relevant agreements and contracts. Page 7 of 7 7. The selected proposer shall not subcontract or assign any interest in the any final agreement between the City and the selected proposer and shall not transfer any interest in the agreement without prior written consent of the city. 8. No reports, information, or data given to or prepared by the selected proposer shall be made available to any individual or organization by the firm without the prior written approval of the city. 9. All data, documents and other information provided to the city by the proposer as a result of this request for proposals shall become the property of the city. Proposal Submittal: Proposals are to be emailed to Allyn Kuennen at akuennen@lakevillemn.gov no later than 4:30 p.m. on November 8, 2019. Multiple emails are acceptable if required for file size. Electronic copies of the proposal should be in a PDF format. If you have questions regarding this RFP, or if you wish to visit the site, please contact Allyn Kuennen at 952.985.4402 or at akuennen@lakevillemn.gov.