ITEM 5.2 Outlot D-AshwoodF
Otsego
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Administration
City Planner Licht
12 August 2019
PRESENTER(s)
REVIEWED BY:
ITEM #:
City Planner Licht
City Administrator/Finance Director Flaherty
City Attorney MacArthur
City Engineer Wagner
5.2 — Outlot D, Ashwood
STRATEGIC VISION
MEETS:
THE CITY OF OTSEGO:
of a portion of the property acquired by the City for construction of a future fire station.
Is a strong organization that is committed to leading the community through innovative
communication.
X
Has proactively expanded infrastructure to responsibly provide core services.
X
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
X
Is a social community with diverse housing, service options, and employment opportunities.
2019.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends approval of a Request for Proposals to solicit offers for acquisition and development
of a portion of the property acquired by the City for construction of a future fire station.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
ISA PUBLIC HEARING REQUIRED?
No
No
BACKGROU ND/J USTIFICATION:
The City acquired Outlot D, Ashwood on 15 July 2019 for the purpose of constructing a future fire station in
accordance with the final report of the Fire Services and Response Time Model study dated October 22,
2019.
The property is approximately 20 acres in area. City staff, working in consultation with the Albertville Fire
Chief, developed a preliminary site layout for a fire station facility on the property generally defined as the
area of the property east of future O'Day Avenue with an area of approximately 9 acres (City Retained
Parcel). The remaining parcel of approximately 11 acres is intended to be sold by the for development to a
private entity (Development Parcel).
City staff has drafted a Request for Proposals to solicit offers for acquisition of the Development Parcel that
outlines the following:
■ The development is to consist of single family, single family villa, or two family dwellings developed
in accordance with the Comprehensive Plan and requirements of the R-5 District.
■ Proposals are to include a sketch plan of the proposed subdivision design, example building plans,
and references to similar developments.
■ The developer will be responsible for preparing plans and processing applications for a Zoning Map
amendment, preliminary plat, and final plat that will separate the City Retained Parcel from the
Development Parcel. The developer will also pay all development fees as required by the City Code
related to the Development Parcel.
■ The developer will be responsible for construction of streets and utilities within O'Day Avenue
from the north property line to the south property line abutting the City Retained Parcel.
■ The installation of utilities by the developer within O'Day Avenue is to include sewer and water
connections such that the City Retained Parcel may be further subdivided in the future with single
family, single family, or two family lots (based on use of the Development Parcel) along the east
side of O'Day Avenue. There is also potential to subdivide the City retained parcel with additional
residential lots along a future street extension west of Odean Avenue abutting the south property
line at such time as the property to the south is developed.
■ The RFP does not state a minimum requested price for the Development Parcel.
■ City staff proposes that the RFP be posted on the League of Minnesota Cities website, City Website
and distributed to the following developers directly based on current development in the area
o Benzinger Homes
o Christian Builders
o DR Horton
o Lennar
o M-1 Homes
o VHF Investments LLC (Henry Hanson)
Responses to the RFP are requested by 17 September 2019. City staff will review the submitted proposals
and provide recommendations to the City Council at a closed meeting on 23 September 2019 as to whether
to proceed with one or more of the developers to negotiate a purchase agreement. The purchase
agreement would again be presented to the City Council at a closed meeting to determine if it is acceptable
or if a counter offer is to be made. Final approval of a purchase agreement would occur at an open City
Council meeting after which closing would be scheduled.
The City retains the right to reject any and all proposals at its sole discretion.
SUPPORTING DOCUMENTS ATTACHED:
■ Site location map
■ Request for Proposals
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES:
Motion to approve a Request for Proposals to solicit offers for acquisition and development of a portion of
Outlot D, Ashwood and authorize the City Administrator to distribute the RFP accordingly.
BUDGET INFORMATION
FUNDING: BUDGETED:
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CITY OF
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MINNESOTA
Request for Proposals
Sale and Development
Of Residential Property
PID 118-326-000040
Proposals Due:
September 17, 2019
By 4:00 PM
Request
The City of Otsego is requesting proposals for the sale and development of the property located west of
Odean Avenue and south of 75th Street within the City of Otsego, Minnesota. The City seeks a qualified
developer to purchase and improve the property. To be considered, interested parties must submit a
purchase offer and concept development proposal in response to this Request for Proposal (RFP).
City Overview
Located at the northwest corner of the Twin Cities metropolitan area, the City of Otsego covers an area
of approximately 30 square miles. The City was incorporated in 1990 after being an established
township since 1958. Since incorporation, the City has experienced significant growth and is the fastest
growing City in Wright County and among the top 10 for new development within the greater Twin
Cities metropolitan area. The City has averaged 265 new residential dwelling units per year for the last
five years. The City issued 300 building permits for new residential dwellings in 2018 and is on pace for
at least 300 building permits again this year. The State Demographer's most recent population estimate
is 16,605. Current growth forecasts anticipate the City's population to increase to 25,000 within the next
20 years, and anticipate a final build -out population in excess of 60,000.
Property Description
The property is identified as Outlot D, Ashwood, PID 118-326-000040 with an area of 21.06 acres. The
property is currently zoned A-1, Agricultural -Rural Service Area. The property has historically been used
for agricultural purposes, including a farmstead that was razed approximately ten years ago. The 2012
Otsego Comprehensive Plan guides this property for low density residential uses.
Location/Neighborhood
The property is located at the southwest quadrant of'Odean Avenue and 75th Street, both of which are
major collector streets. The property is located within the boundaries of the East Sanitary Sewer District.
Public water and. sewer utility infrastructure are located nearby and are expected to be available to the
property in 2020. The property lies within the boundaries of Independent School District 728, with
elementary and middle school locations within Otsego.
The property is surrounded` with single family residential uses to the north and east, and agricultural
uses to the south and west. The property will be served by a future neighborhood park, approximately
mile to the north and west, with construction being included within the City's Capital Improvement Plan.
The property is well served by the City's trail system, with paved trails along both 75th Street and Odean
Avenue.
Background & Project Goals
In 2018, the City Council commissioned a Response Time Improvement & Fire Service Model, in part to
provide a planning tool for use in determining the number of and location of future fire stations within
the City. As a result, the City acquired the property in July 2019 for future construction of the City's first
fire station.
The City is also currently undertaking a Water System Master Plan to determine future infrastructure
and service areas for the City's municipal water utility. The City has made a.oreliminary analysis of
future water tower locations that may be required for expansion of the lwater utility system as
development continues. The property has been identified as a potential location fo a future 1.5 million
gallon water tower.
The City's goal is to retain a +/- 8.80 acre outlot at the northeast corner of the existing el for public
safety and utility purposes, while selling the balance of the property with the intent of developing a
residential subdivision complimentary to the surrounding Uighborhoo.ds end consistent with the City's
Comprehensive Plan.
Development Process & Requirements
Any development or subdivision of the property jdentified as the Dev opment Parcel will be required to
pay all applicable application fees, development flees, and utility connection charges in accordance with
the fee schedule and the standard City of Otsego development review process to obtain the necessary
recommendations and approvals from the Planning Commission and City Council.
The development of the p"Ywillquired to,,in�lluude the following:
• Developer, at their cost, r- , eliminafy and final plat(s) including the outlot being
retained by the Cit'
• Developed with single family, single family villa, or two family attached dwelling units subject to
the lot requirements of theRS, Residential Single and Two Family Zoning District.
• All lots to be accessed by public.streets and served by City water and sewer utilities.
• Developer, at their,cost, construct all public infrastructure within the plat.
• , beveloper, at their cost, provide water and sewer stubs to the eastern right-of-way of O'Day
E
'Avenue to allow foripotential subdivision of the City retained outlot, should the City determine
the,fire'station or piility needs do not require the full +/- 8.80 acres.
BackgroundInformation Available
The City has conducted a wetland delineation, a Phase 1 Environmental Site Assessment and
geotechnical explorations of the site. The City will provide this information upon request.
Proposal Format
Proposals should include the following:
1. Transmittal Letter — The transmittal letter shall include the legal name of your firm, address,
contact person, telephone number, email address and proposed purchase price and terms.
2. Development Concept — a sketch plan indicating the proposed lot and street layout of the
property.
3. Project Approach — Provide a brief written description of the general, approach that the
developer believes will best achieve the objectives specified in this RFP for the project.
4. Financial Capacity — Provide qualifying background experience with housing development
demonstrating sufficient financial resources to complete the purchase and project development.
5. Project Schedule — Include a preliminary time -line for the development of the site, including
application for preliminary plat and final plat approval.
6. Statement of Qualifications — Include descriptions of relevant examples of housing projects
completed within the past five years that are comparable in scope to the project.
Selection Process and Proposal Evaluation Criteria
Proposals will be evaluated using the following criteria:
1. Purchase price
2. Terms of the purchase offer
3. Proposed manner and quality of development of the property
4. Capability and experience to accomplish the development
5. Schedule to complete the development
6. Determination of which rproposal will be most beneficial to the City of Otsego
Following the opening of the proposals, the City intends to select one or more proposers to discuss their
submittal in more detail. Next, the City will present to one of the proposers a written purchase
agreement for the sale, purchase and development of the property which, if accepted by the proposer,
will be submitted to the City Council for its consideration and, if acceptable, its approval. If the City
determines that a purchase agreement that is mutually agreeable to the proposer and the City cannot
be entered into, the City would present to one or more of the other proposers a written purchase
agreement for the sale, purchase and development of the property until a purchase agreement that is
mutually agreeable to the City and one of the proposers is entered into.
The City reserves the right to: (a) accept and reject any and all proposals and/or any part or parts
thereof, (b) negotiate modifications of proposals submitted, (c) negotiate terms and conditions with
proposers that are different than those specified in this RFP, (d) discontinue, suspend or abandon the
proposed sale, purchase and/or development of the property, (e) amend or withdraw this RFP at any
time, and/or (f) terminate this RFP and proceed with the sale and/or development of the property in
some other manner as the City determines to be appropriate.
The sale of the property is subject to approval of the Otsego City Council. No purchase or other
agreement shall be binding until and unless it has been approved and authorized by a resolution of the
City Council and a purchase agreement has been signed by the necessary officials of the City.
The closing on the purchase agreement shall be subject to the buyer applying for and receiving all
necessary governmental permits including but not limited to a preliminary and final plat and entering
into a development agreement satisfactory to the City of Otsego.
No municipal financial incentives to assist with land development are included with this RFP.
This will be an arms -length transaction with a willing seller and a willing buyer. The City will not consider
a proposal from anyone who has a perceived conflict of interest.
Each proposer shall be responsible for understanding the terms of this RFP, the conditions of the
property and any other factors that bear upon successful purchase and development of the subject
property. The proposer's failure or neglect to review any stipulationsoVa purchase agreement,
development contract and the provisions of this RFP will not relieve,the proposer of, any contractual
obligations contained in a purchase agreement, a development contract or requirementsunder the RFP.
The proposer shall have no claim for relief based on a lack of knowledge of the content or legal effect of
any such provision.
All Proposals and other information submitted by a propose�`shall be treated as non-public data until
the proposals are opened for review by the City. Once theyibposals are opened, their content will
become available to the public as provided by the Minnesota Government Data Practices Act except for
information that the proposer claims at of its submittal\to be a trade secret and it is
determined as such.
The City of Otsego shall not be liable for an pe Inc rred ,by a proposer in relation to the
preparation or submittal of a proposal; including but�not limited to expenses incurred by the proposer in
preparing a proposal or related informat`on in response to the RFP, negotiating with the City on any
matter related to the RFP, and costs) associated wit interviews, meetings, travel or presentations.
Additionally, the City shall. not be liable for expense 'urred as a result of the City's rejection of any
proposals made in respo.to this Rip ,
This RFP is intended sol
development of the -prop(
obliF
a pu
resu
as a 'request for proposers to submit proposals for the purchase and
This'RFP is not a tender of, nor an offer by, the City, and there shall be no
the City to, consider a proposal or enter into negotiations for, or enter into
e sale, purchase and/or development of the property with any proposer
.this RFP.
Questions
Any and all questions relating to this request for proposals should be directed via email to Adam
Flaherty, City Administrator. Email contact information is indicated below.
Proposal Submission
Complete responses to this RFP can be submitted electronically (PDF format) or in a sealed envelope to:
City of Otsego
Attn: Adam Flaherty, City Administrator
13400 901h Street NE
Otsego, MN 55330
Email: aflahertv@ci.otsego.mn.us
PROPOSALS DUE;
Septe er 1.X2019
By
LATE PROPOSALS WILL NOT BE ACCEPTED