In 2015, staff developed an RFP seeking proposals for the redevelopment of City owned property located at 719 SW 3rd Street in Uptown.  After extensive direct mailings to developers in and around the Des Moines Metro and news coverage of the project, four proposals were submitted. At its August 17, 2015 meeting, the Council selected 98 Investments, LLC, the majority owner of Uptown Ankeny Partners, L.L.C., as the preferred developer for this redevelopment project. 

Since this time, the developer has worked to secure financing to complete this project, while the City has prepared the property for redevelopment by removing the dilapidated buildings. 

The terms of the sale of property and development agreement include:

• The purchase price of the City owned property shall be $100,000, with $50,000 due to the City at closing.
• The remaining $50,000 shall be due to the City within 24 months after closing, unless the developer qualifies for forgiveness.  This remaining $50,000 shall be secured by an irrevocable letter of credit.
• Forgiveness shall occur if the developer acquires 709 SW Third Street and razes the existing structures and prepares the land for redevelopment with 24 months of closing on the City property.
• The developer agrees to construct minimum improvements with a total investment of no less than $4 million.
• This investment shall include an approximately 31,000 square foot, three story apartment building, consisting of 20 one-bedroom units, 10 two-bedroom units, and six (6) live work units on the first floor facing SW 3rd Street.  In addition to the main building, an additional 85 parking stalls shall be constructed on the property, as well as Type C screening along the south property line.
• The building shall look identical, or substantially similar, to the attached rendering.
• Improvements shall be completed no later than December 31, 2018.
• The City shall construct angle parking stalls (approx. 21) and sidewalk, as well as plant street trees along the north side of the property in the public right-of-way (the south side of SW 3rd Street).

Construction on this project is expected to begin this fall and be completed by October 1, 2018.

The City intends to sell City owned property and require, through a development agreement, the buyer to make a significant investment in redeveloping the property into a mixed-use residential building with surface parking.  The minimum total investment will be no less than $4 million.  Public improvements (angle parking, sidewalk, and street trees) are estimated to cost approx. $125,000.  Funding for the public improvements will be added to the 2018 CIP.  The property is currently tax exempt, but is expected to have an assessed value of approx. $2.8 million upon project completion.  The developer is eligible to apply for 10-year sliding scale tax abatement for this project, as it is located in an existing urban revitalization area which provides tax abatement for projects increasing taxable value by 15% or more.   

At it's August 17, 2015 meeting, the City Council selected Uptown Ankeny Partners, L.L.C., as the preferred developer for this project.  

At it's October 2, 2017 meeting, the City Council approved setting the date of the public for the sale of this property and the development agreement for this redevelopment project.

Action: Consider motion to close public hearing 2017-55.