FULL-RFP-PACKET-CARNEGIE-BLDG

Request for Redevelopment Proposals and Offers to Purchase Carnegie Building, 111 Main Avenue, Kaukauna Issue Date: December 2, 2019 Due Date: February 7, 2020 Submit To: Robert Jakel, AICP Director of Planning and Community Development submittals@kaukauna-wi.org www.cityofkaukauna.com PURPOSE OF RFP The purpose of this Request for Proposal (RFP) is to solicit offers to purchase and proposals for redevelopment of the Historic Carnegie Building. Background information on the history and present condition of this property is included as Addendum A-E at the conclusion of this file. SPECIFICATIONS OF RFP PURPOSE 1. The Redevelopment Authority of the City of Kaukauna (RACK) requests redevelopment proposals from qualified parties for the preservation and redevelopment of the Historic Carnegie Building. 2. The primary goals/objectives to be achieved through this Request for Proposal include, but are not limited to: a. Preservation – RACK seeks to ensure the continued preservation of a National Register-Listed Historic Property with significant emotional importance for residents of the City. b. Redevelopment – RACK seeks to ensure that the property is adaptively reused for private use and is added to the municipal tax rolls. c. Develop an Anchor for the Commercial Core District – The redevelopment of this property, concurrent with redevelopment of the Cops Building at 101 Main Avenue will create an anchor development in the City’s downtown area. d. Identify New Activation Opportunities for Central Park – The adjacent municipal park and greenspace (Central Park) to the Carnegie Building is underutilized and offers an opportunity for creative activation of the space. e. Endorsement – The proposal must be authentic and resonate with RACK leadership. ELIGIBILITY 1. Proposal respondents should have experience in property redevelopment, adaptive reuse of historic properties and preservation experience. 2. The City of Kaukauna desires to enter into a redevelopment agreement and offer to purchase with a single entity to lead the project. Proposals based on a consortium approach where multiple parties will be engaged in the redevelopment process are acceptable with a single project manager point of contact for the purchasing entity. SCOPE OF WORK Proposals and offers to purchase should include the following: 1. A letter stating an offer price for the purchase of the Historic Carnegie Building. 2. Intentions for the future commercial or mixed use redevelopment of the Historic Carnegie Building. 3. A summary list of proposed improvements and their estimated costs (we understand that at this time, these are likely to be just rough estimates). 4. A draft proforma indicating expected cash flow for the building. 5. Demonstration of financial capability to proceed with a redevelopment project, indicated by a bank letter. 6. If the proposed commercial tenants are an existing business, please share some brief background information on the nature of the business, its history and ownership. 7. Suggested, but not required: Activation ideas for the adjacent Central Park property and how this will tie into the redevelopment of the Historic Carnegie Building 8. Redevelopment Timeline: An estimated timeline for acquisition, improvements for the redevelopment and tenant occupancy. Redevelopment Authority Financial Assistance and Tax Incremental Finance Expenditure Eligibility 1. RACK has the lending capacity to offer low interest (starting at 2%) loans as gap financing for projects located within the Downtown Redevelopment Area. Gap financing means that the applicant should pursue a mixed financing strategy (conventional financing + personal leverage + RACK financing). Loans can be used for expenditures like acquisition of buildings, fixed equipment, internal or external building improvements and soft costs (like engineering, architectural/surveying work performed prior to construction). 2. The Historic Carnegie Building is located within Tax Increment District #4 and certain expenditures may be eligible for Tax Incremental Financing. These expenditures would be highlighted in a redevelopment agreement and subject to Common Council approval. Questions related to RACK Loans and Tax Incremental Financing should be directed to the Planning and Community Development Department. SPECIFIC PROPOSAL PREPARATION INSTRUCTIONS Proposals should be as thorough and detailed as possible so that RACK may properly evaluate the capabilities of the firm to provide the required Services and Results. Planning and Community Development Staff are able to provide on-site tours of the facility and additional background information on the building (such as building condition reports) upon request. Respondents shall submit one (1) electronic copy by email to submittals@kaukauna-wi.org with the subject line Carnegie Building RFP (and the name of your firm), or by emailing a link to a file sharing platform. If you send an email auto-generated from a file sharing platform, please also send a separate email from your firm confirming receipt. Please do not send hard (paper) copies by mail. Submissions are due by 4:30 PM (CST) on Friday, February 7, 2020. EVALUATION CRITERIA Proposals will be evaluated by the Redevelopment Authority of the City of Kaukauna (RACK) using the following criteria: 1. Preservation, adaptive reuse, and redevelopment experience of the respondent in other historic preservation projects. 2. Intended future use of commercial / mixed use space of Historic Carnegie Building. 3. Estimated value of proposed improvements to the property. 4. Respondents’ financial capability to invest personal finances and access conventional financing to fund a portion of the redevelopment project as demonstrated by a bank note. 5. A well-structured proforma for the redevelopment expenditures and future cash flow for the commercial property. 6. All qualified submissions received by the deadline will be analyzed by the City according to the criteria outlined in this RFP. Failure to comply with the provisions of the RFP may cause a proposal to be rejected. 7. RACK reserves the right to (a) accept or reject any/or all submissions of proposals; (b) to waive any irregularity, technicality, informality or discrepancy in a proposal; (c) accept any alternative submission of proposals presented, which in its opinion, would best serve the interests of the City; (d) give full and proper evaluation of the Vendor or team presenting the proposal. 8. RACK shall be the sole judge of the proposals, and the resulting negotiated agreement that is in its best interest, and its decision shall be final. A White Paper on the Redevelopment of the Island Street Municipal Complex / Central Park Area Prepared by the Planning and Community Development Department, July 2019 Target Redevelopment Properties The target properties include the former City of Kaukauna Municipal Building (“Cops Building”, Parcel 323041000) and the former City of Kaukauna Carnegie Library (“Carnegie Building”, Parcel 323040900). These adjoining properties make up approximately 6.17 acres in the middle of the Fox River along the major North/South thoroughfare of Lawe Street/Crooks Avenue/State Highway 55. These properties stand out as an excellent candidate for a joint redevelopment effort. The underutilized properties will be addressed individually below: Cops Building, 101 Main Avenue, Kaukauna The Cops Building served as the City of Kaukauna Municipal Building from 1918 to the mid-1970s. The two story building (excluding the basement) is currently underutilized with two tenants: Linked Living Homes, a pre-fabricated construction contracting company building additions to single-family homes for senior living, and the Kaukauna Clinic, which uses an upstairs office for file storage. The structure is located directly on Crooks Avenue, with only 18-35’ of distance between the façade and the street. An on-site (shared) parking lot between the Cops Building and the Carnegie Building provides parking for 36 vehicles and 3 handicap parking spaces. Unstriped space on the rear of the Cops Building could accommodate additional parking. The small setback detracts from the buildings success in one regard, in that the very busy North/South thoroughfare, while offering high visibility, also creates a busy street presence for access to the front of the building. The building does not take (presently) advantage of its proximity to the Fox River or the greenspace of Central Park and the views it offers to the rear/west of the building. The parcel is 1.54 acres, zoned “Commercial Corridor”, the zoning layer applied to the downtown district of the City of Kaukauna. This island area bridges, quite literally, the Uptown Wisconsin Avenue commercial district and Downtown Second and Third Street commercial districts. Existing improvements include a two-story 25,000 SF structure (with full basement) with parking in front and along its side and rear. The property is currently owned by Tom and Monica Cops of Kaukauna, and is assessed at $197,800 for tax purposes with the land assessed at $52,100 (26.3%) and improvements at $145,700 (73.7%). The property owners are interested in selling the property for redevelopment and can be contacted directly with questions regarding the property or to arrange a tour of the property. Mr. Tom Cops can be reached through his business Linked Living, his contact information is listed on their business website: www.linkedlivinghomes.com . The property is ideally located for a mixed use development that takes advantage of its proximity to the Uptown and Downtown Commercial districts, and views and access to the Fox River. Since the property is located on Crooks Avenue, it has the advantage of the high visibility and high traffic count of 14,000 cars per day traveling this major arterial through Kaukauna. Unlike much of the rest of Downtown Kaukauna, this property offers easy on/off access from State Highway 55 to the property and unmatched high visibility. This would be an ideal space for a mix of commercial office space tenants and perhaps a bar/restaurant/brewery on the lower level. This use could maximize the underutilized opportunity for river views and access with a rear patio. The current overhead garage doors in the space could be modified to a glass door, fitting the current trend popular in bar and restaurant design. Zoning and the City of Kaukauna Comprehensive Plan encourages mixed use development and could accommodate residential apartments on floor 2, which would offer commanding views of the Fox River, downtown district and the nearby Central Park. Surface parking for residents could be accommodated on-site behind the building. Public parking is available on site for employees and customers, as well as additional parking a short walk across the pedestrian bridge in the 2nd Street lot. The pedestrian bridge connection offers a future multi-modal connection to the in-development Fox River Heritage Trail, which will connect to the Village of Little Chute and greater Fox Cities area. Before purchasing the subject property, due diligence would be completed to develop a comprehensive picture of the physical, financial, legal and environmental condition of both the site and structure, such as: • Title search, deed, existing loan documents • Document review (e.g. lease, permits, financial statements, insurance, etc.) • Site inspection and survey • Phase I environmental study, followed by phase II if indicated The site is located in a Special Flood Hazard Area (SFHA) that has a 1% annual chance (100-year flood) and is recognized as Zone AE (Base Flood Elevation) on the most recently issued Flood Insurance Rate Map issued by FEMA. The map is attached as an exhibit. This property owner would need to hold flood insurance on this property, an added cost of redevelopment that should be factored. The building façade is largely unchanged from the original in the early 20th century and may qualify for National Register for Historic Places listing. Such a listing would qualify a redevelopment project for historic tax credits, a potentially significant source of funding for a redevelopment effort. Notably, the property is located adjacent to, but not within, the Badger Hydroelectric Historic District, designated by the National Park Service in 1986. Carnegie Building, 111 Main Avenue, Kaukauna The Carnegie Building was originally constructed in 1906 for the purpose of serving as Kaukauna’s public library. This was one of more than 2,500 Carnegie libraries funded by the Carnegie Corporation of New York across the United States, and one of the 63 libraries that received funding in Wisconsin. Grants totaling more than $1.15 million dollars were contributed to dozens of libraries between 1901-1915. The original grant to Kaukauna was for $12,000 in December 1902. The Carnegie Building served as home to the Kaukauna Public Library until 2016, when the library relocated to its new location in the Grand Kakalin Development. The Carnegie Building was used by City recreational programs until spring 2019, when programs moved into the recently completed Streets Parks and Recreation building in Reaume Avenue. The original Carnegie Library structure was a two story building of approximately 5,000 SF. The modified arts and crafts style architecture features a limestone base, red brickwork and leaded glass windows. The unique architectural feature of the property are the flanking buttresses at the entry porch. The original building features large windows with ample natural lighting on the second story. The rooms are compartmentalized into separate sections for different parts of the library collection. The lower level features rooms used as offices, storage, a kitchen area and restrooms. The historic section of the structure is not ADA-accessible. A 6,800 SF two story addition was constructed seventy years later (1976) on the rear of the original structure at a cost of $167,600. The addition features an elevator, providing ADA-accessibility to the second story and a more open-concept space. The lower level is almost entirely open and the second story features a wrap-around balcony overlooking the open first floor. The design does not incorporate a great deal of natural lighting. The addition does not contribute to the historic architecture of the original structure. While the original structure is listed on the National Register of Historic Places and in the State of Wisconsin register, the 1976 addition is not a contributing feature to the building and could be removed if desired for future redevelopment. An on-site (shared) parking lot between the Carnegie Building and the Cops Building provides parking for 36 vehicles and 3 handicap parking spaces. A reconfiguration of the site could include additional paved surface for parking as needed. The Carnegie Building is sited at the termination of Main Avenue, across the street from the historic Kaukauna Post Office, a privately owned building which is operating as a church. The property shares the same high visibility as the Cops Building, including proximity to the Uptown and Downtown Commercial districts, and views and access to the Fox River, as well as the advantages of the high visibility and high traffic count of 14,000 cars per day on Crooks Avenue. Being located slightly off-street, the building façade is still highly visible, but not located quite as close to traffic. The building is located on two parcels of land (323041100 and 323040900). The building portion of the parcel is 1.1 acres, zoned “Commercial Corridor”, the zoning layer applied to the downtown district of the City of Kaukauna. The parcels will be formally reconfigured at the time of redevelopment by certified survey map to separate one parcel with the entire building footprint from the parcel containing Central Park. This island area bridges, quite literally, the Uptown Wisconsin Avenue commercial district and Downtown Second and Third Street commercial districts. Existing improvements include a two-story 11,300 SF structure with parking along its side. The parcel currently contains the entirety of Central Park – a municipally-owned natural open space in the heart of the downtown area. The property is currently owned by the City of Kaukauna, and as such, does not have assessment data at this time. Central Park, a municipally-owned natural space is presently used for passive recreation – such as wildlife viewing, fishing. The park’s future is integrally tied to the redevelopment of the Carnegie Building and the Cops Building. Future redevelopments may depend on some of the current park acreage to meet property expansion needs or parking needs. The City-owned greenspace is an asset to the redevelopment of these properties and the future use of this land will be largely informed by the redevelopment prospects of these properties. The property is ideally located for a commercial development that takes advantage of its proximity to the Uptown and Downtown Commercial districts, and views and access to the Fox River, as well as the unique charm of an historic building with cultural significance in the community. This would be an ideal space for a mix of commercial office space tenants and perhaps even a bar/restaurant/brewery on the lower level. This use could maximize the underutilized opportunity for river views and access with a rear patio. A residential redevelopment or mixed use redevelopment incorporating residential use is possible, but has some challenges to it with the layout of the building presently. Surface parking is available on site for employees and customers, as well as additional parking a short walk across the pedestrian bridge in the 2nd Street lot. The pedestrian bridge connection offers a future multi-modal connection to the in-development Fox River Heritage Trail, which will connect to the Village of Little Chute and greater Fox Cities area. An exhaustive review of the accessibility and design of the property was completed in 2005, at the time when the Kaukauna Public Library was exploring a potential remodel and expansion of the property. Some of the high level findings from that study include: • The shared parking lot with the Cops Building may not be adequate for a fully-occupied redevelopment of both buildings. • Installing an accessible ramp on the front of the building would detract from the architectural and historic character of the façade – ramp access would need to be made to the South or West of the building. • The roof was replaced in 2003 and utilized a 50-year shingle which emulates the original slate roof. • The 1906 Carnegie Building was identified to be structurally sound at the time of the audit in 2005, but for use as a library – it was determined to pose challenges for staff to program the space and provide adequate climate control and security. • The 1976 addition to the Carnegie Building has some issues with moisture on the interior surface of concrete walls, as well as several cracks in masonry block joints. The flat roof likely requires replacement, as does the HVAC system (most recently work was completed in 2011). The 1976 addition is not a contributing factor to the building’s historic designation and could be removed in a future use. • None of the four restrooms in the building comply with ADA standards in terms of door and widths. Cosmetic accessibility features such as grab bars, lower mirror heights, lower towel and soap dispensers and lever or automatic faucets should be made in a redevelopment plan. • Stairs do not have appropriate handrail extensions, edge protection or tactile warning devices. • The building also does not contain audible and visible fire alarms. • The elevator was most recently installed in 2002, but has not been in use since the building use ceased use as a library in 2016. • Electrical improvements were made on the site in 2007 and 2011. With this being a National Register-Listed Historic Property, it is necessary that the historic façade of the library be maintained and that the steps to the front porch (currently removed) be reintroduced as a testament to the original architectural integrity. Presently the 30+ year old landscaping has grown to a height where it masks much of the architectural character of the façade – a redevelopment and future landscaping plan could incorporate a landscaping plan that highlights, rather than masks, the original façade of the Carnegie Building. Notably, the property is located adjacent to, but not within, the Badger Hydroelectric Historic District, designated by the National Park Service in 1986. The site is located in a Special Flood Hazard Area (SFHA) that has a 1% annual chance (100-year flood) and is recognized as Zone AE (Base Flood Elevation) on the most recently issued Flood Insurance Rate Map issued by FEMA. The map is attached as an exhibit. FLOOD INSURANCE RATE MAP, ISSUED BY FEMA, REFLECTING SITE LOCATION 300ft2001000 DISCLAIMER: This map is not guaranteed to be accurate, correct, current, or complete and conclusions drawn are the responsibility of the user. MAP OF PARCEL 323041100 - ONE OF CARNEGIE LIBRARY PARCELS 300ft2001000 DISCLAIMER: This map is not guaranteed to be accurate, correct, current, or complete and conclusions drawn are the responsibility of the user. MAP OF PARCEL 323040900 - ONE OF CARNEGIE LIBRARY PARCELS CONTAINING CENTRAL PARK 300ft2001000 DISCLAIMER: This map is not guaranteed to be accurate, correct, current, or complete and conclusions drawn are the responsibility of the user. MAP OF PARCEL 323041000 - COPS BUILDING PARCEL