TO: Mayor Thomas J. Weisner
FROM: Daniel Barriero, Chief Community Services Officer
DATE: October 14, 2013
SUBJECT: title
Recommendation to Authorize of a Request for Proposal (RFP) to Dispose of 83 North Avenue as a Historic Preservation Opportunity
body
PURPOSE:
This report requests a Recommendation to authorize the disposal of 83 North Avenue (Pin# 15-27-105-001)("Property") as a historic preservation opportunity under a Request for Proposal (RFP) process. Staff has drafted the attached RFP for this purpose. The goal of the RFP is to dispose of the Property for the sum of $1 (One Dollar) in exchange for a substantial rehabilitation of the building to be financed by the new owner. A successful respondent to the RFP will have the background, skills, and financial capability to execute a difficult renovation/restoration project. The City could additionally grant funds from the Historic Preservation Grant and Residential Restoration Programs for the Property as an incentive. A successful respondent to the RFP will be brought back before the City Council for final approval at a later date.
This project is currently held under the Neighborhood Stabilization Program (NSP), and is subject to federal regulations that govern the NSP program. If the RFP has a successful respondent, at that time the City Council would be asked to approve the successful bidder, and approve the approximately $59,282 required to "buy out" the Property from the NSP program so that the house could be freed from federal regulations and disposed of for the purposes of historic preservation.
BACKGROUND:
In April of 2010, the City of Aurora authorized the purchase the Property (R10-165) under the NSP program. The original intent of the home was to have a single family homeownership reuse. The Property was rezoned from a Business/Wholesale use to Single Family (O10-042) for the end purpose of having a fully rehabilitated single family house.
The 2006 City of Aurora Historic Districts and Landmarks Guidelines describes this "octagon" style of house as "rare," but this particular example suffers from substantial renovations that have occurred to the structure over its 120+ year existence. The Property is listed as a structure of local historic merit, and is eligible for National Register consideration. Pictures and maps of the Property are attached.
DISCUSSION:
In September of 2012, Staff executed a public bid to rehabilitate the Property as a single family house, and the lowest responsible bidder was approximately $198,440. In 2013, the City asked its non-profit partners (Fox Valley Habitat, Community Housing Advocacy and Development, Joseph Corporation, and the Association for Individual Development) to rebid the Project as a single family home restoration. Non-Profit partner bids ranged from approximately $200,000-$240,000. Given the estimated $200,000+ expense required to rehabilitate the property and its placement on a major street and in a transitional business/residential area, staff does not believe this property is suitable candidate for municipal rehabilitation under the NSP program and is requesting to utilize an RFP to dispose of the Property.
Generally, this means that the Property could have two disposition scenarios at this time:
a. If there are no responsible bidders to this RFP, the Property would be sent back to the City Council with alternative disposition strategies, both under NSP and as a City project;
b. If the City does receive a responsible proposal from the RFP, the City would be required to spend approximately $59,282 for the NSP buy-out, and dispose of the Property under the guidelines set by the RFP.
IMPACT STATEMENT:
This property is currently owned by the City. There are no staff or fiscal impacts at this time.
RECOMMENDATIONS:
ยง Authorize a Recommendation approving the attached RFP that seeks to dispose of 83 North Avenue for the sum of $1 in exchange for a substantial historic rehabilitation of the Property.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Peters, Alternate