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File #:
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23-6184
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Name:
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DIRECTION ON LETTER OF INTEREST/BEST AND FINAL OFFER FOR WELLINGTON GREEN PARK AND AUTHORIZATION TO EXECUTE A PURCHASE AND SALE AGREEMENT FOR WELLINGTON GREEN PARK
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Type:
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Purchasing/Contract
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Agenda Date:
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11/7/2023
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Final action:
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Title:
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ITEM: DIRECTION ON LETTER OF INTEREST/BEST AND FINAL OFFER FOR WELLINGTON GREEN PARK AND AUTHORIZATION TO EXECUTE A PURCHASE AND SALE AGREEMENT FOR WELLINGTON GREEN PARK
REQUEST: Direction on Letter of Interest/Best and Final Offer for Wellington Green Park and authorization to execute a purchase and sale agreement for Wellington Green Park with the selected proposer.
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…title
ITEM: DIRECTION ON LETTER OF INTEREST/BEST AND FINAL OFFER FOR WELLINGTON GREEN PARK AND AUTHORIZATION TO EXECUTE A PURCHASE AND SALE AGREEMENT FOR WELLINGTON GREEN PARK
REQUEST: Direction on Letter of Interest/Best and Final Offer for Wellington Green Park and authorization to execute a purchase and sale agreement for Wellington Green Park with the selected proposer.
…body
EXPLANATION: On May 30, 2023 the Village Council authorized staff to issue a Letters of Interest (LOI) solicitation seeking firms or individuals interested in purchasing the Wellington Green Park site. On July 24, 2023, the Village received six such proposals. On August 8, 2023, the Council authorized staff to seek Best and Final Offers (BAFO) from all six proposers. On September 27, 2023 we received the best and final offers from each proposer as summarized below:
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Proposer |
Bainbridge Companies LLC Brefrank Enterprises, LLC |
Blue Road |
Dan Enterprises Team LLC |
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Methods of Compensation and Development Program |
A. $11,000,000: 220 units B. $15,000,000: 300 units |
A. $15,000,000 1. 300 units 2. 1,500 seat performing arts center 3. Up to 80,000 sf mixed-use commercial B. $20,000,000 1. 480 units (30% workforce) 2. 1,500 seat performing arts center 3. Up to 80,000 sf mixed-use commercial |
$9,000,000 10% profit sharing of entire project Taxes and business licenses 180 Units 50,000 sf commercial |
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Terms |
Purchase Terms not defined in proposal, but expect at finalization of entitlements |
• Initial down payment: $5,000,000 • Remainder at time of building permit |
A. 10% of the net income of the development during the second and third years (as per expected profit and Loss development, projection, see below around $13.5 Million USD) B. Cash from sale of lost $ 9,000,000. C. Taxes from retail and apartments, including a restaurant at the club approximately $ 140,000/ year at current rate of $ 0.1338/100) |
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Density/Intensity |
• 22 - 30 units per acre |
• 30-48 dwelling units per acre • 0.22 FAR: retail/office + assumed 20,000 sf PAC |
• 18 dwelling units per acre • 0.11 FAR |
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Architectural Intent Site Plan/Elevations |
5-story buildings Oriented to take advantage of water views Concept site plan and elevations included |
Provided narrative of different uses in terms of experience Provided renderings of potential concept |
Smart town project “blends the equestrian passion with modern energy efficient technology” |
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Community Benefit(s) |
• Relocation and development of new soccer fields to replace The Village Green Park soccer fields. Costs netted out of the best and final offer amount of $15 million noted above. |
• Potential workforce housing • Performing arts center |
• Conserve 60% of site as open space • Employment and shopping |
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Potential Issues |
• Costs for public benefit netted out of offer |
• Very intense project options • Ensuring future of performing arts center |
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Proposer |
Inter Related Construction Services Corp. |
RD Investment Properties, LLC (“Related Group”) |
W & W VIII LLC |
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Method of Compensation and Development Program |
$22,660,603 Multi-family: 62 Apartments (avg. 750 sf) • 24% Workforce Housing • Amenities Retail/Office: 158,472 sf Hotel - 248 Rooms • Conference / Venue 130-260 guests • Restaurants • Bar entertainment facility |
$7,333,333 ($33,333/unit) 220 residential apartment units • 5, 4 story buildings • 2 story clubhouse • Swimming pool, amenity deck Up to 5,000 sf commercial |
$8,800,000 220 residential apartment units • 4, 5 story buildings • 1-story clubhouse Note: Intended use presented differs slightly from development information provided in Sec. 4.1 |
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Terms |
• $50,000 deposit upon entering into a comprehensive agreement with 90 days due diligence • closing 180 days from site plan approval for the proposed development • with 2 (9) months extension options with $50,000 each additional deposit for each • closing with the balance for the total purchase price of: $22,660,603.00 |
• $300,000 within three days of contract execution, non-refundable at end of Inspection Period • Inspection Period: 90 days from contract execution • Closing: 60 days after obtaining building permits |
a. $50,000 Upon execution of the LOI b. $200,000 After the end of the Investigation Period c. Both applied to the purchase price at closing and fully refundable if prior to the end of the investigation Period W & W VIII LLC decided not to move forward with the project. |
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Density/Intensity |
6.2 dwelling units per acre FAR: Hotel - undetermined; need hotel SF to calculate Retail/Office: 0.36 FAR |
22 dwelling units per acre |
22 dwelling units per acre |
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Architectural Intent Site Plan/Elevations |
Section 4 |
Recent development examples provided; Narrative provided |
Concept images provided |
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Community Benefit |
N/A |
N/A |
N/A |
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Potential Issues |
Very intense project Closing date may be 24 months after site plan approval with only $150,000 deposit |
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In June 2022 an appraisal of the property was performed based on an assumed mixed use plan development (MUPD). That appraisal valued the property at $5.7 Million.
Staff is seeking direction on the Letter of Interest/Best and Final Offer for the property and authorization for the Mayor and Manager to execute a purchase and sale agreement for the property with the selected proposer.
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: N/A
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Direction on Letter of Interest/Best and Final Offer for Wellington Green Park and authorization to execute a purchase and sale agreement for Wellington Green Park with the selected proposer.
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