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Home My WebLink About1988-05-03 Public hearingNOTICE OF RELIC NEARING NOTICE OF PUBLIC NEARING ON THE PROPOSED SALE AM CONNEYPNCE OF TWO PARCELS OF LAM MOM AS PARCELS B AND D, LOCATED IN THE LOWER RALSICN Cf®C AREA OF IOWA CITY, IOWA, FOR PRIVATE REDEVELOPNENr, The City of Iowa City hereby gives notice that a public hearing on the proposed sale and conveyance of the parcels of land know as Parcels 8 and D, located in the Loner Ralston Creek Area of Ioys City, Iova, for private redevelopment, will be held May 3, 1988, at 7:30 p.m. in the Council Chambers, Iowa City Civic Center, 410 East Washington Street, Ina City, Ian. The sale and conveyance of said parcels is pro- posed as follaa: Parcel 8 to Doug Fisher for $9,100 to construct rental storage units. Parcel D to Benjamin Chait for $70,000 for multi- family units and/or parking for residential conver- sion of the fonrer Regina Elenentary School. Thereafter, the City of Ina City may enter into such contract for sale of land for private redevel- opment of said Parcels B and D as it deers appropri- ate in the public interest. MARIAN K. KARR, CITY CLEW NOTICE OF RELIC NEARING NOTICE OF PUBLIC NEARING ON THE PROPOSED SALE AM CONNEYPNCE OF TWO PARCELS OF LAM MOM AS PARCELS B AND D, LOCATED IN THE LOWER RALSICN Cf®C AREA OF IOWA CITY, IOWA, FOR PRIVATE REDEVELOPNENr, The City of Iowa City hereby gives notice that a public hearing on the proposed sale and conveyance of the parcels of land know as Parcels 8 and D, located in the Loner Ralston Creek Area of Ioys City, Iova, for private redevelopment, will be held May 3, 1988, at 7:30 p.m. in the Council Chambers, Iowa City Civic Center, 410 East Washington Street, Ina City, Ian. The sale and conveyance of said parcels is pro- posed as follaa: Parcel 8 to Doug Fisher for $9,100 to construct rental storage units. Parcel D to Benjamin Chait for $70,000 for multi- family units and/or parking for residential conver- sion of the fonrer Regina Elenentary School. Thereafter, the City of Ina City may enter into such contract for sale of land for private redevel- opment of said Parcels B and D as it deers appropri- ate in the public interest. MARIAN K. KARR, CITY CLEW = MEMORANDUM Iowa City Date: April 26, 1988 To: City Council and City Manager From: 0 Marianne Milkman, CDBG Program Coordinator Re: Sale of Lower Ralston Creek Parcels B, C and D Back�ro=nd I In 196o-81, the City acquired parcels of land along Ralston Creek (between Kirkwood Avenue Court the creek, remove and the west bank of Lower area. CDBG funds structures in Street) in order completed were used for the floodway, and reduce flood to widen the remaining this purpose. After the g in the ening land was assembled into creek widening ilopmen was Because CDBG funds for redevelopment. designated a were used for the project, the n urban revitalization area and, area had to be Urban Renewal Law (Chapter 403 as such officially been followingof the Code of Iowa falls under the State's A2 and A3 have already procedures require)' As a result, we y been sold. y this Chapter. have Parcels Al, Council approved the solicitation of offers for Lower B. C and D on February 9, 1988, with offers to be March 14, 198g. Ralston Creek parcels as well , the The attached maps show the received b Y plat for general location o y 1:30 p,m „ each parcel. f the parcels, Advert�4 Parcels advertised Availability follows: B, 1) anoffic•for P blchase and was advertised Citizen. 2) Large ad Official redevelopment section "Lots for yin the Iowa City Press -C Notice in Iowa City press - 1988 and and others persons who8had3)is Letters were 13 3toxes between February March Real were all adjacentlandowners these part-time gns were es. sPost persoed On n Informed lots a5)stMaryin thLee Dixon Propertie(realtor"and realtors of the availability of Bids -Bids Race= Bids for the parcels were received on March 14, 1988 the PPD staff for completeness and compliance with local ordinances. A very rough estimate of the e , and were reviewed by was also made. Staff hen ran annual tax revenue from each developed parcel then ranked the bids for Parcel. 0 Page 2 The following bids were received: ROUGH ESTIMATE NAME BID OF ANNUAL PROPOSED USE TAX REVENUE I i PARCEL B Fisher Const. $9,100 Storage units (approximately $588 Company 1400 sq. ft.) i Duffey Brothers $3,000 Cabinet manufacturing; con- $554 Construction Co. struction company office i (approximately 1500 sq. ft.) Clark deVries $1,375 Storage units for vehicles (approximately 2,750 sq, ft.) $1,445 PARCEL D ++j S&M Properties $30,550 9 -unit apartment building $3580 ) John Moreland , i Benjamin Chait $70,000 Parking and 8 residential units $3,580 (for in conjunction with conversion parking and 8 of Regina Elementary School to units only; apartments and townhouses additional revenue from i Regina School conversion.) I The top bid for Parcel B is close to the appraised value. The top bid for Parcel D is above the appraised value. No bids were received for Parcel C. This parcel is much larger than the other two and has very poor exposure and Poor street access. It is located adjacent to Ralston Creek on Lafayette Street (an unpaved street), behind the old Cartwright's Carpets building on South Dubuque Street. Shortly after the bidding period closed, we received calls from three businesses, all of which stated they were interested in bidding on Parcel C, but had for one reason or another, not been able to submit a bid. Council approved the reopening of bids for Parcel C on April 5, 1988. Bids for this parcel are due May 6, 1988, and a public hearing on disposition of Parcel C will be held May 17, 1988. Recommendations for Sale Staff ranked all proposals and recommends sale as follows: PARCEL B to Fisher Construction Com an . I Mr. Fisher owns the adjacent property to the north, on which he is currently constructing his construction company office/shop. He then plans to develop Parcel B for different sizes of rental storage units and some additional parking (see attached letter). i G53 Page 3 PARCEL D to Benjamin Chait. Staff recommends sale of Parcel D to Mr. Chait not only because his purchase offer for the land is more than double Mr. Moreland's, but also because it allows for the preservation and conversion of Regina Elementary School, and the considerable tax revenues that that property could contribute. Mr. Moreland's proposal is, however, also acceptable with regard to purchase price and redevelopment plan. Mr. Moreland has his financing in place and could start development almost immediately. Mr. Chait proposes to use Parcel D to provide parking for the Regina Elemen- tary School property which tie plans to convert to townhouses. In addition, he will construct eight residential units above the parking on Parcel D (see attached description). Mr. Chait's offer to purchase the school property is contingent upon his purchase of Parcel D; he is still negotiating design and financing of this development. Mr. Chait will address these issues at the informal Council meeting on Monday, May 2, 1988. If the Regina property conversion does not prove feasible, Mr. Chait has no interest in Parcel D. Council should be aware that there is no other vacant land within 300 feet of Regina Elementary School which could be used for parking. Regina Elementary School cannot be converted for another use without additional parking, since St. Patrick's Church needs to retain the parking lot adjacent to the school. (See Mr. Chait's statement which is attached.) Contract for Sale The contract for sale for all Lower Ralston Creek parcels includes a 20' access easement adjacent to the creek which can be used for parking, but cannot have any structures on it. Because these parcels are "urban renewal" land, purchasers are bound by numerous conditions of a very detailed contract, which shall be executed within 60 days of Council approval of the conveyance of the property. Conditions of the contract include requirements for development within the stated time period and development according to the plans approved by the City. Any changes in plans must also be approved by the City. The redeveloper cannot transfer ownership without approval of the City and all covenants are binding on any successors. In case of default by the redeveloper, the property may revert to the City. There are numerous other requirements and safeguards in the contract. Action Council should take no action at the May 3, 1988, meeting. Resolutions on the conveyance and sale of Parcels B and D will be on the agenda at the May 17, 1988, Council meeting. If you have any questions, please call Don Schmeiser at 356-5232. bj/pc2 G53 i 0 O O Q9 O IIa T. R>♦ Z 11110111W W C V Z 0 H J Q I= W 3 O wina BURLINGTON L J COURT ST. PAST QFFICE HARRISON I ST.E, I FwJ SABIN Z SCHOOL I-PRENTISS� X ST. w Z m Z I z m U j II = Z LLJ M B BENTON A -T II ST. 1 LEGEND [LM [Rove A' i LOWER RALSTON CREEK P°"X NEIGHBORHOOD -g REVITALIZATION PROJECT / project boundary IJ ®VACAnO STL. OO BLOCK NUwnR KIRKW ' i i[T. CLOSIO TO TRAFFIC L I REDEVELOPMENT PARCELS: Note: Parcel Location and I j� B,C,D... etc. Size are Approximate. l� See Lot Surveys. / CITY OF IOWA CITY { .••• SCAL[, as.•••• FYI o�V I•f0 12 G 51 0ul I yBa's\'13"E __�� Ioo YEAR FLOooPLLIN ea I /U� A N D fr- ice/ FWoDwAy 6oJNOPRY LI z I I.A I 1 1• I W d I L. o'T N I m 0.00 ZC. S FWT wIOE G'�C LCV SE2VGTION • I Q U �T.iru c EGSEMEcJT it I ul FW..; _= io_ y ^ V' I` a �J I.�T14T4� I V p� SVV1 Po�.E.�.I :kl 13 Q vov.{E2 L.c n: Fes•+ i LjL- a I1 4o i Sw Coe. BL1C Lt, CouuTY SG✓aT i`NL R•OW AGK�..a. I ��ad•. ��. 2. �, . LL i IlouC ;+ S3.00 PCwT CF 3 . PCXW-r of E5S< Ii w,Nca I�� EE�INNIN4. 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PATRICK'S GRADE SCHOOL RE -DEVELOPMENT P1 The St. Patrick's Grade School re -development project consists of two basic components: the acquisition of the existing, now vacant, St. Patrick's grade school and the acquisition of the property at the southeast corner of Linn and Harrison Streets adjacent to Ralston Creek (Parcel "D"). The project, if fully implemented, will include approximately 35,000 square feet of land and will include between 32 I and 44 residential units with parking for between 46 and 62 automobiles. The offerer and the St. Patrick's Parish Council have negotiated and executed an agreement for the offerer to purchase the St. Patrick's grade school and are now working, cooperatively, to implement the j terms and conditions of that agreement. A Ii primary contingency ihe agreement is the ability of the offerer to secure adequatelandfor parking for the project which complies with housing and zoning regulations of the City of Iowa City. The purchase of Parcel "D" will insure that there is adquate land available for the offerer to satisfy the parking requirements of this project. A primary objective of the offerer and the St. Patrick's Parish Council is to save the old St. Patrick's grade school structure and upgrade and redevelop this property and parcel "D" into a mix of apartment and townhouse units, consisting of low, moderate, middle f income and upscale housing, together with parking. The offerer was 1 chosen by the St. Patrick's Parish Council to purchase the property, based, in the opinion of the offerer, on the ability of the offerer and the Council to work together and based, in part, on the quality of work done by the offerer on the 401 S. Gilbert Street conversion, recently completed. The St. Patrick's Parish Council has carefully evaluated the conversion proposal for the St. Patrick's grade school. Conversion of the St. Patrick's grade school is preferable to { demolition of the existing structure and clearing the land for additional church parking. Sale of the existing school will enable St. Patrick's Parish to purchase other adjacent, more suitable Property for additional parking. Re -development of the St. Patrick's grade school, however, cannot occur without the acquisition of additional land which would be available for parking, inasmuch as the St. Patrick's Parish is not able or willing to sell the land adjacent to the St. Patrick's grade school for parking. The best and most i reasonable option for land which could supply the parking at this time is Parcel "D", In addition to the cultural and historic preservation of the St. Patrick's grade school, the re -development of the school will place an additional property with an estimated completion value of $1,500,000 on the tax rolls by returning both the school parcel and Parcel "D" to the private sector. Razing the existing school for additional church parking would retain the existing tar, base of zero for the City of Iowa City. G53 ; dp2 The impact of this proposed development project is wholly consistent with the City of Iowa City's stated desire to "see the lower Ralston Creek area maintained and upgraded through rehabilitation and reinvestment", thus improving the quality of life in this Iowa City neighborhood. Additionally, this project specifically responds to the objectives stated in the lower Ralston Creek re-development plan, amended in 1981, by providing "expanded opportunities for low and moderate income households." Furthermore, this proposed project is consistent with the objectives of the 1983 update of the Iowa City Comprehensive Plan with regard to land use, development density and historic preservation of significant structures, such as the St. Patrick's grade school. I goes without saying, but say it we will, that this project will be undertaken in close cooperation with all neighborhood interests including the St. Patrick's Parish Council and all residential and commercial property owners and in strict compliance with all applicable zoning and building ordinances and codes. The commencement of actual construction is anticipated to be on or before November 1, 1988. Gs3 1 ri 0/1-0