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HomeMy WebLinkAbout46-24 RESOLUTIONN 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 46-24 File Number: 2024-1664 SOUTH PLAZA PROPERTY LAND SALE (BUDGET ADJUSTMENT): A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,244,144.00 ALLOCATING PROCEEDS FROM THE SALE OF THE SOUTH PLAZA PROPERTY TO REINDL PROPERTIES INC. WHEREAS, on November 7, 2023, the City Council passed Resolution 251-23 authorizing Mayor Jordan to sell approximately 0.5 acres of City property at the south end of the Civic Plaza to Reindl Properties, Inc.; and WHEREAS, the closing occurred on December 22, 2023, and the City received funds in the amount of $1,244,144.00. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment in the amount of $1,244,144.00, a copy of which is attached to this Resolution, allocating proceeds from the sale of the South Plaza property to Reindl Properties, Inc. PASSED and APPROVED on February 6, 2024 Page 1 Attest: 01111 G�� K /+TR F � ��. • o1 Y p� gSr'•,� Kara Paxton, City ClTreasurer CITY OF FAYETTEVILLE ARKANSAS MEETING OF FEBRUARY 6, 2024 CITY COUNCIL MEMO 2024-1664 TO: Mayor Jordan and City Council THRU: Paul Becker, Chief Financial Officer FROM: Waylon Abernathy, Bond Projects & Construction Dir DATE: SUBJECT: Approval of a Budget Adjustment for the proceeds of the land sale with Reindl Properties Inc. per resolution 251-23 RECOMMENDATION: Staff recommends approval of a Budget Adjustment for allocation of the proceeds from the land sale with Reindl Properties Inc. for the South Plaza property per resolution 251-23 for approximately 0.5 acres in the amount of $1,244,144.00. BACKGROUND: In November 2023, council passed resolution 251-23 authorizing the Mayor to sign a real estate purchase contract with Reindl Properties Inc. for the sale of approximately 0.5 acres of City Property. DISCUSSION: As stated in the resolution 251-23 packet, the proceeds of the sale would be used for a trail easement purchase, public restrooms and parks storage within the hotel. Net proceeds would be used for the Plaza project. This budget adjustment places those funds in the project for disbursement. BUDGET/STAFF IMPACT: Funds to be transferred from the Sale of Assets Account 4470.001.9470-4881.02 to the Plaza Project Account 4470.140.8900-5804.00. ATTACHMENTS: SRF (#3), BA (#4), JE Land Sale Civic Plaza (#5) Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 == City of Fayetteville, Arkansas y 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 - Legislation Text File #: 2024-1664 Approval of a Budget Adjustment for the proceeds of the land sale with Reindl Properties Inc. per resolution 251-23 A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,244,144.00 ALLOCATING PROCEEDS FROM THE SALE OF THE SOUTH PLAZA PROPERTY TO REINDL PROPERTIES INC. WHEREAS, on November 7, 2023, the City Council passed Resolution 251-23 authorizing Mayor Jordan to sell approximately 0.5 acres of City property at the south end of the Civic Plaza to Reindl Properties, Inc.; and WHEREAS, the closing occurred on December 22, 2023, and the City received funds in the amount of $1,244,144.00. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment in the amount of $1,244,144.00, a copy of which is attached to this Resolution, allocating proceeds from the sale of the South Plaza property to Reindl Properties, Inc. Page 1 Wade Abernathy Submitted By City of Fayetteville Staff Review Form 2024-1664 Item ID Februrary 6, 2024 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 1/11/2024 FACILITIES MANAGEMENT (140) Submitted Date Division / Department Action Recommendation: Staff recomends approval of a Budget Adjustment for allocation of the proceeds from the land sale with Reindl Properties, Inc. for the south plaza property per resolution 251-23 for approximately .05 acres in the amount of $1, 244,144.00. 4470.140.8900-5804.00 Account Number 46080.7800 Project Number Budgeted Item? No Does item have a direct cost? No Is a Budget Adjustment attached? Yes Purchase Order Number: Change Order Number: Original Contract Number: Comments: Budget Impact: Sales Tax Capital Fund Arts Corridor Improvements Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget Project Title $ 1,244,144.00 1,244,144.00 V20221130 Previous Ordinance or Resolution # 251-23 Approval Date: City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division Adjustment Number FACILITIES MANAGEMENT (140) /Org2 2024 Requestor: Wade Abernathy BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Staff recomends approval of a Budget Adjustment for allocation of the proceeds from the land sale with Reindl Properties, Inc. for the South Plaza Property per resolution 251-23 for aproximately .05 acres in the amount of $1,244,144.00. COUNCIL DATE: 2/6/2024 ITEM ID#: 2024-1664 Kevin Springer 717712024 72: 52 PM RESOLUTION/ORDINANCE Budget Division Date TYPE: D - (City Council) JOURNAL#: GLDATE: CHKD/POSTED: TOTAL Account Number 1,244,144 1,244,144 Increase / (Decrease) Expense Revenue Project.Sub# Project Sub.Detl AT v.202413 Account Name 4470.001.9470-4881.02 - 1,244,144 46080 7800 RE Gain/Loss - Sale of Assets 4470.140.8900-5804.00 1,244,144 - 46080 7800 EX Building Costs I of 1 q -a 0 0 3 m E cn L 0 O L N 'O N l4 N a m N u7 N U) W of cu N c9 � � a � v o > o U o � � v c 0 co o � N N W m Y N m E G Z b Z` 0 w U ° K O 5 � N C � 0 o U Q QO m E m E O o 0 0 off[ k 0 .o cn a U O O --- u 0 o 00 r O oO O O V F-v W U O O � N O O v � N c 0 Q m W o 0 � N 0 0 � N 0 O O It It(O O co O � .O N m O O COD Cl)00 N O a0 V Z 0 O N 0 O tl- U Q O O a w rn 00 (0 0 00 c0 O v v CD v v fU6 U N O d O A L V) O U O N Q o N (n U O 0 J 0 E z o U Q c0o U O W w a 0 O O a c 7 W co U O N Q 0 U Q 12/29/23, 3:36 PM Checking Account History Checking Account History Enter criteria for an historical search and then click the Search button. Account: xxxxxx7280 -A Operating Clear 0 Previous Day's Transactions 0 Today's Transactions * History Search History Search Type: Deposit/Withdrawal: From Check: To Check: All All v From: To: Amount From: Amount To: 12/21/2023 12/28/2023 1,244,144.00 1,244,144.00 Search .._ Transactions Date Type Reference Number Description Credit Debit Running Balance 12/22/2023 Wire 12450 BRONSON ABSTRACT CO $1,244,144.00 $14,689,478.81 INCO829074 Totals: $1,244,144.00 1 $0.00 Copyright ©2018 Arvest Member FDIC. All Rights Reserved. https://ecash.arvest.com/CorporateBankingWeb/Core/informationReporting/AccountDetails.aspx?Acctindex=10 1/1 t} i 5z 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 251-23 File Number: 2023-1171 REINDL PROPERTIES, INC. (PURCHASE CONTRACT): A RESOLUTION TO AUTHORIZE THE MAYOR TO SIGN A REAL ESTATE PURCHASE CONTRACT WITH REINDL PROPERTIES, INC. FOR THE SALE OF APPROXIMATELY 0.5 ACRES OF CITY PROPERTY IN THE SOUTH END OF THE CIVIC PLAZA FOR THE AMOUNT OF $1,247,455.00 WHEREAS, in October 2022, the City Council approved Resolution 256-22 authorizing the Mayor to sign the Letter of Intent Defining Development Agreement terms with Reindl' Properties Inc. for a Public Private Partnership for Construction of the Mixed -Use building at the Ramble Civic Plaza; and WHEREAS, Mayor Jordan recommends that the City Council approve the terms of the sale set out in the real estate purchase contract negotiated with Reindl Property, Inc. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section I : That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign a real estate purchase contract with Reindl Properties, Inc., a copy of which is attached to this Resolution, for the Iand sale of approximately 0.5 acres in the amount of $1,247,455.00, and further authorizes the Mayor to execute all closing and other documents necessary to effectuate the sale. PASSED and APPROVED on November 7, 2023 Approved: Attest: rat' Lion Jordan, Mayor Kara Paxton, City I rk Treasurer Page 1 w CITY OF FAYETTEVI LLE ARKANSAS MEETING OF NOVEMBER 7, 2023 CITY COUNCIL MEMO 2023-1171 TO: Mayor Jordan and City Council THRU: Paul Becker, Chief Financial Officer FROM: Waylon Abernathy, Bond Projects & Construction Dir DATE: SUBJECT: Resolution authorizing a Real Estate Purchase Contract with Reindl Properties, Inc. for the Construction of a mixed -use building on the Ramble/Cultural Arts Corridor Civic Plaza RECOMMENDATION: Staff recommends approval of a resolution authorizing the mayor to sign the Real Estate Purchase Contract that includes terms of the development agreement with Reindl Properties, Inc., for the land sale of approximately .5 acres in the amount of $1,247,455.00 and authorize the mayor to execute all closing documents. BACKGROUND: Schematic design for the Ramble Civic Plaza, a 2019 voter approved downtown revitalization project, focused on the West Avenue civic space. The vision for the civic space was completed in January 2019, following a series of public design charettes. The design chosen by participants who engaged in the process consists of a gathering and event lawn, public plaza, garden spaces, and a civic promenade, with two buildings bordering the site on the north and south ends, as bookends of the plaza. The southern building will be integral to the site, as a backdrop for what will become a stage and performance area for the plaza. Additionally, the building will provide public restrooms accessible from the Razorback Greenway and Civic Plaza storage space within the ground floor. A Request for Proposals (RFP) process solicited competitive development proposals for a public private partnership to build the southern anchor building on the West Avenue Civic Plaza. The RFP asked for an approximately 14,300 square foot building footprint with a height limit of seven stories and three primary facades. Additionally, the city requested that the building be constructed of high -quality and lasting materials that are complimentary to the overall aesthetic of the site and the emergent Arts and Entertainment District. The RFP, issued in August 2021, was advertised on several platforms, including on the Costar website which provides market -leading research on commercial real estate properties in nearly all markets and sub -markets. The RFP was downloaded by over 100 interested parties. A non -mandatory pre -proposal conference held in September, 2021 was attended by over 30 participants. Additional Background: Key to the design and planning of the overall spaces are the public private partnerships that can help activate the space and provide a mixed use, sales tax generating, downtown development project to complement the city's investment in The Ramble. Partners are both private developers and philanthropic support efforts. Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Initial design for this transformative project was made possible by a 2017 grant from the Walton Family Foundation's Design Excellence Program. Award -winning landscape architects Nelson Byrd Woltz (NBW) were selected to design the corridor with the primary goals of: • Increasing public access and strengthening the surrounding neighborhood, • Leveraging the connected trail network, • Demonstrating a commitment to sustainability, and • Embodying an innovative spirit, encouraging visitors and residents to engage with the space in new ways. There are five primary elements included in plans for the Cultural Arts Corridor bond project: The West Avenue Civic Space, West Avenue streetscapes, The Fay Jones Woods, The Razorback Greenway, and a new parking deck one block north of the corner of West Ave. and Dickson Street. In April 2019, citizens of Fayetteville voted to authorize a $31,685,000 bond for construction of the Cultural Arts Corridor Improvements. Arts Corridor improvements to the Fay Jones Woods, the southern portion of the Razorback Regional Greenway, and the southern portion West Ave. began in September 2020 with construction completed in September, 2022. Construction of the new parking deck began in January 2022 with completion planned in October of 2023. In June 2021, after a 5-month public renaming process, the City announced The Ramble as the new name for the Cultural Arts Corridor. On October 26, 2021, the City of Fayetteville accepted proposals for the southern anchor building on the Civic Plaza. One proposal was received from Reindl Properties that included a project team with a passion for high - quality construction, human -scaled design, craftsmanship, efficiency, and love of community. Their team includes: • Brian Reindl - Developer and owner of the adjacent Metro Building along with several other properties in and around downtown Fayetteville. • Rob Sharp - Architect and designer of several Fayetteville projects including: Three Sisters Building, Mill District, The Dickson Building and most recently the Network Building, which was designed to be the first net zero mixed -use building in Fayetteville. The LOI specifies that the final development agreement includes a termination and buy back clause requiring Reindl properties to start construction on the new building within 12 months of the completion of the Civic Space. Also, Reindl Properties met with organizations for additional community input on the ways in which the proposed building will interact with the plaza and civic space. As indicated in the LOI renderings, the proposed mixed -use building will be substantial and striking. The building's proposed uses will increase the liveliness of the adjacent Civic Plaza and attract visitors to the downtown. Hotel guests will eat, shop and recreate in the area, providing benefit to many existing local businesses. Initial analysis shows that the project would provide approximately $300,000 per year in sales and HMR taxes to the City plus another $63,000 per year in property tax to the City of Fayetteville for the general fund, library and fire and police departments. The construction impact of this $40 million construction project will approximately yield another $175,000 in sales tax revenue. On October of 2022, Council passed Resolution 256-22 Authorizing the Mayor to Sign the Letter of Intent Defining Development Agreement terms with Reindl Properties Inc., for a Public Private Partnership for Construction of the Mixed -Use building at the Ramble Civic Plaza. DISCUSSION: Since the approval of the Resolution: Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 • City staff and design consultants with Nelson Byrd Woltz have worked with Reindl Properties to finalize the building footprint in relationship to the trail relocation and relative to the final design of the Civic Plaza. Staff has worked with Reindl Properties to secure independent third -party appraisals. The City provided to Reindl a list of 5 appraisal firms with experience in commercial real estate. From that list, Reindl selected three firms. The 3 firms provided certified property value reports. The average of the 3 was used for the agreed to values. Major terms and conditions for a proposed Agreement are included in this Real Estate contract as Drafted by Vicki Bronson of Connors and Winters Law Firm. BUDGET/STAFF IMPACT: Revenues will be recognized after the closings. Net proceeds from this real estate contract will be applied to the Restrooms/Storage located in the building, and Civic Plaza Improvements. ATTACHMENTS: Copy of SRF-Real Estate Purchase Agreement South Civic Plaza (#3), Real Estate Purchase Contract (City Reindl) Redline 9-27-23 (002) (#4), Exhibit 1 (#5), Apprasials and Summary South Civic Plaza (#6), 601 W Center St Deed (#7), 256-22 RESOLUTION (#8), Exhibit 2 South Elevation (#9), Exhibit 3 Fay Park Hotel - North Rendering (#10), Exhibit 3 Fay Park Hotel - City Storage (#11), Exhibit 3 Fay Park Hotel - City Toilets (#12), 20231012 REVISED Exhibit 3 Fay Park Hotel level 1 (#13), 20231012 REVISED Exhibit 3 Fay Park Hotel Level 2 (#14), 20231012 REVISED Exhibit 2 Fay Park Hotel - South Rendering (#15), 20231012 Attachment Fay Park Hotel Progression Summary (#16), REAL ESTATE PURCHASE CONTRACT - revised 10-12-23 (#17), COF Letter with Parking Study (#18), Hotel Valet Lot Layout (#19), Survival of Contractual Obligations, Representations, and Agreements as Restrictive Covenants (#20), REAL ESTATE PURCHASE CONTRACT (City Reindl) revised 10-17-23 clean (#21), Ramble Hotel Letter of Support (#22), Exhibit A Site Plan (#23), Exhibit B Floor Plans (#24), Exhibit C Conceptual Building Design and Materials (#25), Real Estate Purchase Contract (City Reindl) Revised 11-2-23 (#26), Letter of Support- Mycelium Networks (#27), Letter of Support- Acre Trader (#28), Letter of Support - Startup Junkie Consulting (#29), Letter of Support - Cato Springs Development (#30) Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701