CITY OF WASHINGTON, IOWA

Request for Developer Qualifications and Proposals

207, 209 and 211 South Marion Avenue
Washington, Iowa
_______________________

November 4, 2010

SUBMIT TO:
David Plyman, City Administrator
City of Washington, Iowa
215 E. Washington Street
Washington, IA 52353
(319) 653-6584
dplyman@washingtoniowa.net

SUBMITTAL DEADLINE:
December 15, 2010 at 3:00 p.m.
 City of Washington, Iowa
Request for Developer Qualifications/Proposals

INTRODUCTION
The City of Washington, Iowa is seeking a developer or development team to
undertake the redevelopment of 207, 209 and 211 South Marion Avenue in
downtown Washington. Three buildings collapsed and experienced significant
damage during a remodeling project three years ago. The City acquired the
properties this year from the former owners in order to accelerate the
redevelopment process.

The City hopes that it will select a proposal and reach a development agreement
with the respective developer during the upcoming months so that the properties
will be ready for redevelopment in time for a Spring 2011 project. The City is
prepared to offer subsidies to facilitate the redevelopment of the properties in a
manner that is compatible with Washington’s historic square.

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The City of Washington has been designated by the Iowa Department of
Economic Development as a “Main Street” community. Washington Main Street
is a non-profit organization that can be used as a resource for potential
developers. In particular, Main Street offers business development and façade
design assistance to downtown property owners. Washington Main Street also
coordinates the Washington Incentive Fund (“WIF”) grant program. The state has
also designated Washington as a “Certified Local Government”, which is required
for some forms of state development assistance grants.

The City’s objective is for the site to be redeveloped for a mix of uses in a manner
that maximizes tax revenue generation while enhancing the overall character of
the City’s downtown and surrounding area. While the City prefers a two-story,
mixed use building(s), developers are encouraged to be creative in their
approach. The City does not preclude the possibility that the existing buildings
and/or their facades can be saved and reused. In fact, according to the
Washington Historic Preservation Commission there may be state and federal tax
credits or other incentives offered to the developer in the event the project entails
restoring the existing structures. In addition, the City expects that any
development should be sensitive to and complement the existing adjacent uses
and the surrounding neighborhoods.

The following sections provide information on the properties, including

development guidelines and submission requirements.

DEVELOPMENT SITE LOCATION MAP AND DESCRIPTION

The properties are located at 207, 209 and 211 S. Marion and comprise 5,896
square feet in land area. The site is bordered on the north by a two story, brick
structure that is being used as a dental clinic. The building at 207 S. Marion Ave.
shares a common wall with this building. On the south, the site is bordered by a
small, one story structure owned by Marion Avenue Baptist Church and is being
used for church-related purposes. The site is currently zoned B-1 Retail Business
District.

The City can provide a structural engineer’s report and drawings on how to best
preserve the existing building facades if the developer is interested in pursuing a
renovation project.

A map of the site is shown as Figure 1 and a parcel map with dimensions is
shown as Figure 2.

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FIGURE 1: Map of the City of Washington with parcel location noted:

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FIGURE 2: Parcel map, including dimensions (existing building layout is marked)

207, 209 and 211 South Marion Avenue

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ABOUT THE COMMUNITY
The City of Washington, Iowa is a county-seat community of approximately 7,100
residents located 30 miles south of Iowa City. The City is located in Washington
County and is designated as part of the Johnson-Washington county Metropolitan
Statistical Area.

The Development Site is located on South Marion Avenue in Washington’s

historic downtown, between Washington Street and Jefferson Street. The site is
located two blocks north of Iowa Highway 92 (Madison Street) and one-half block
west of the City’s new library. Central Park, including the new bandstand, can be
seen from the site.

The City hosts many special events in its downtown throughout the year. Most
notably, the Washington Farmers’ Market is held every Thursday evening from
Spring to Fall in Central Park. The Washington Municipal Band performs during
the summer months under the bandstand, which similarly attracts crowds
downtown. Downtown Washington is a vibrant, busy place and continues to be
the hub of our community.

Washington’s Downtown is home to a wide variety of retail, restaurants and

service businesses. Three banks (Federation Bank, US Bank and Washington
State Bank) are located downtown, as well as insurance, real estate, and law
offices. It is also home to medical and dental offices. Furthermore, many of the
buildings downtown are mixed uses, with residential apartments or office uses
located above ground level commercial uses. As such, we believe the subject
property is well suited for a wide mixture of uses.

CITY FINANCIAL ASSISTANCE AND TAX INCREMENT FINANCING (TIF)

The Washington City Council has established an Urban Renewal Area to assist
with redevelopment projects located downtown. Accordingly, the City Council is
authorized under state law to establish a Tax Increment Financing (TIF) District
on the subject site and intends to do so. The City Council is willing to consider
proposals that seek TIF funding provided adequate justification is demonstrated
to warrant such funding and that the proposed development is consistent with the
stated development goals of the City.

The Washington Historic Preservation Commission has expressed its desire that
any developer for the site consider the viability of saving the existing buildings
and/or facades. The City is not requiring any developer to reuse the existing
structures, but will offer an incentive package for renovation that would be similar
to the package offered for new construction.

Subject to the establishment of a TIF district and a developer agreement, the City
is willing to contribute up to $50,000 in cash (estimated cost of demolition) if the
developer opts to save the existing facades. However, if the developer
determines that saving the existing structures is not feasible, the City will
demolish the structures at its expense to ready the site for a new building. The
City is also willing to abate future incremental property taxes for the development
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in accordance with the Property Tax Abatement Schedule in Figures 3 and 4.
Finally, the City is willing to sell the development site as part of a development
agreement at favorable terms.

Washington County Assessor’s Office has a current assessed value of the

properties of ZERO dollars.

Figure 3: TIF projects types classified by attributes

TIF #1 TIF #2 TIF #3
Min. Increase in 25% 40% 51%
Assessed Value
Active use of all x x
above ground
floors (no storage)
Façade x x x
Enhancement

New construction x
or complete
renovation

Figure 4: Property tax increment rebates by TIF project type

Year Current TIF TIF TIF
Program Alternate Alternate Alternate
#1 #2 #3
1 80% 75% 100% 100%
2 70% 75% 100% 100%
3 60% 60% 100% 100%
4 50% 60% 75% 100%
5 40% 45% 75% 100%
6 40% 45% 75% 75%
7 30% 30% 60% 75%
8 30% 30% 60% 75%
9 20% 15% 60% 75%
10 20% 15% 60% 75%
11- 60%
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PRELIMINARY DESIGN AND DEVELOPMENT PARAMETERS

OVERALL DESIGN/DEVELOPMENT OBJECTIVE:
The City is seeking a mixed-use, multi-story development for the properties
located at 207, 209 and 211 South Marion Avenue. The City of Washington
currently owns the subject properties. Adjoining properties may also become part
of any development, depending on the ability of the development team to reach
acceptable terms with the respective owners.

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The basic design/development parameters are indicated below:

Use: Mixed-Use – retail, restaurant, and service uses on the ground floor with
office and/or residential uses on the upper floor(s). The City’s preference is for
retail and restaurant uses on the ground floor, although office or other commercial
uses are acceptable. City Code Sec. 165.15 (3) prohibits ground floor residential
use on this property.

Height: Currently, the maximum allowable building height allow on the site is forty
five (45) feet.

Setbacks: no setbacks required along Marion Avenue.

Façade: If the developer proposes to construct a new building, the City desires
that the building be designed and constructed to be architecturally compatible
with the existing buildings around the Square. In particular, the building should be
constructed with the following characteristics:
• two or three story in height
• a traditional brick façade
• sidewalk-level entrances and ground floor design that incorporate a long-
term perspective on future ground floor use of the structure. The City
encourages that the façade of the ground floor be designed (initially or
easily modifiable later) to allow for three separate tenancies having
separate entrances.
• windows and window sills that are similar in type, size, shape and
placement as in other buildings in the downtown area (non-tinted, double
hung on second floor, etc.).

Access: Access to site from Marion Avenue, with limited access available from
the east-west alley located south of the site. No direct vehicular site access from
the alley is currently provided.

Parking: Adjacent on-street parking is available.

Property Inclusion Considerations: It is highly desirable that the entire site be

developed at one time.

ADDITIONAL INFORMATION

SALE OF PROPERTY
Selected developers will be required to indicate a land price as a component of a
formalized proposal in the next stage of the process.

CITY/DEVELOPER RELATIONSHIP
The selected developer or development team will be given exclusive rights to
purchase land for development. The City may assist with any private property

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land acquisition adjacent to the subject site.

SUBMISSION REQUIREMENTS
Development submittals must provide the following information:

1. Identification of lead developer and principal firms to be involved in the project

including their roles and responsibilities.

2. The relevance and quality of the development team’s prior experience.

3. Purchase offer price for properties.

4. Development Plan: A preliminary development plan should be submitted that

describes enough detail to communicate the developer’s vision, construction
concepts, intended uses, timetable, etc. to allow the City to understand and make
an informed judgment about the project.

5. Demonstration of developer’s ability to provide equity and obtain construction

and permanent financing. This would include proposed sources of financing.

6. List of pending litigation or disputes with which the developer or development

team are involved and the current status. This includes bankruptcies,
foreclosures, or projects in which lenders took back the development.

7. Anticipated financial incentives to be provided by the City of Washington and

any demands on the City to accommodate the developer prior to beginning
construction or during the development process.

8. References from financial institutions with which the developer has an existing
relationship should be provided.

9. Contact information for the developer or key members of the development

team.

SELECTION PROCESS
The City will review submittals and will select a developer or developers to
present formal proposals at the next stage of the process. The number of
developers or development teams invited to submit formal proposals will be
dependent upon the quality and the number of submittals received.

The criteria used to select the developer or development team will be based on
information provided in this submittal as well as additional information provided in
a formal proposal prior to negotiation in the next stage of the process. This will
include additional financial statements, negotiation of land value, and a detailed
development plan.

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TIMELINE
The City is pursuing a fairly aggressive timeline for this RFP in the expectation
that the site may be redeveloped next year. The City will work diligently to
expedite all stages of the RFQ/RFP process.

SUBMISSION PROCEDURES
One paper copy and one electronic copy, consisting of a digitally prepared PDF
with “searchable” text, of all submittal documents outlined above must be
received by December 15, 2010 at 3:00 p.m. The City of Washington reserves
the right, at its sole discretion to reject any or all submittals or to cancel, revise or
extend the solicitation. This Request for Developer Qualifications does not
obligate the City of Washington to pay any costs incurred by any respondent in
the submission of a proposal or in preparing or contracting for services to be
furnished under this Request for Developer Qualifications.

Responses should be sealed and marked DEVELOPMENT PROPOSAL-S.

MARION AVENUE PROPERTIES.

All submissions should be sent to:

David Plyman, City Administrator
City of Washington
215 E. Washington Street
Washington, IA 52353

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