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Monday, January 24, 2011

Update on VA homes

Cliff's Notes version:
  • Last fall the city met with engineers to inspect properties and solicit non-binding letters of interest bids from developers.
  • At least one letter was returned by the deadline date of last Friday.
  • At the next council meeting (Feb. 7), city staff will determine if there is enough evidence to proceed with development. If not, the homes will stay with the VA. (I'll be there to cover this)
  • If city staff deems that there is enough interest in the properties, they would request proposals from developers, which would include a right to purchase the land.
  • If a developer is found that will purchase the property, the city will buy it and immediately transfer it to the developer, which would have 2 years to complete the project.

Verbatim from the city website:

Update on Military Homes in Tower Park

On September 21, 2010 staff met with city engineers to conduct a cursory inspection of the
property. As a result of this inspection, at the November 1, 2010 city council meeting the Board
of Council directed staff to solicit “Letters of Interest to Bid” to determine if there was sufficient
interest by the development community before contracting with civil and environmental
engineers to prepare the necessary documents for inclusion in a bid packet. This step is
important to prevent spending funds unnecessarily for engineering work if it is determined that
developers are not interested in acquiring the properties.

On December 7, 2010 information was mailed to potential developers. Included in these packets
was a copy of a “Letter of Intent to Bid”. The developers were asked to complete this letter and
return it to the city no later than January 21, 2011 if they thought they might bid on the
acquisition of the properties.

At the February 7, 2011 council meeting, the Board of Council will discuss the “Letters of Intent
to Bid” to determine if there is sufficient interest to proceed. If council determines there is not sufficient interest to proceed, then the homes will remain in the possession of the VA.

If council determines there is sufficient interest to proceed, then staff would be directed to work
towards preparing a Request for Proposals (RFP) seeking interested developers to acquire and
develop the site in compliance with the environmental abatement requirements (both State and
Federal) and in accordance with the deed restrictions, covenants, design guidelines, etc.,
prepared by the engineer and approved by the city.

Under this scenario the city would not commit to purchasing the property (signing the MOA)
until we had a developer contracted to purchase the property from the city for more than the
predetermined minimum bid. If the city is successful in finding a developer who will pay the
minimum required bid, then the city would acquire the property and immediately transfer it to
the developer. The developer would then have two years to complete the infrastructure
improvements and rehab the exterior of the homes.

1 comment:

  1. I understand that the developer has to pay for all hazardous remediation (ie pay for the work without title to the properties) prior to the VA finalizing the sale so they can be assured the remediation has in fact been completed. If that is the case, the transfer would not be "immediate" as described. I believe that it took almost 10 years to get to this point so how long will it take for the VA to finalize the sale?