REQUEST FOR PROPOSAL Development Opportunity

Muskego, Wisconsin

The of Muskego Community Development Authority invites proposals for the purchase and development of a prime real estate parcel along the Janesville Road corridor in the City’s downtown. The parcel is within the City’s Redevelopment District #2 and Tax Increment Finance District #8 allowing various incentive opportunities including a very low purchase price option.

City of Muskego W182 S8200 Racine Avenue PO Box 749 Muskego, WI 53150-0749 @cityofmuskego.org (262) 679-4136 Intro The City of Muskego Community Development Authority (CDA) is soliciting proposals for the purchase and development of a prime real estate parcel located on the SW corner of Janesville Road and Lannon Drive. The site offers a unique opportunity to create innovative commercial development within an approved Redevelopment District and TIF District.

The Janesville Road corridor is “The” main street running through the City of Muskego and is also a central thoroughfare housing many of the community’s commercial lands. The parcel within this RFP is on a prime corner of the City’s downtown and Janesville Road. Further the parcel is centrally located in the area where the city has invested over $3 million in streetscaping and beautification improvements. A development of modern architecture and design that is built within a year of approval is desired. The city has the ability to aid in financing and incentives in order to have the parcel developed due to the parcel residing in a TIF District.

Property The parcel consists of approximately 13,871 square feet (0.318 acres) and is located on the southwest corner of Janesville Road and Lannon Drive in an established commercial area of Muskego. The vacant site contains flat topography, provides over 100 feet of frontage along Janesville Road and another 100+ feet of frontage on Lannon Drive. See the site survey and overview of the property in the attachments to this document.

The property is situated in an extremely strong market for commercial uses. The site offers frontage along the main corridor in the City of Muskego made up of community and various commercial, , and professional offices.

Overall the site is pad-ready with city sewer and water service and will not require any further stormwater management needs (pond, etc.) under MMSD. The site was a former gas station and does have WDNR closure for soil contamination. More info regarding the contamination is found below in the remediation section as well as the attachments showing the exact known contamination issues from the past. As discussed below, the city has intentions to aid in any cleanup of contaminated soils should a proposed development have to run into contaminated areas.

The site allows an excellent opportunity for a development to have instant equity as the land was formally assessed at over $150,000 when it was being fully utilized.

The parcel has been vacated in order for the Janesville Road reconstruction project. This reconstruction project will be mostly complete in front of the property by winter 2013 other than remaining landscaping and streetscaping

2 items to occur in the spring of 2014. When fully complete the parcel’s doorstep will first rate with sidewalks, landscaping, and various beatification items along the roadway and parcel frontage. Just look east to see the quality that the city has implemented for Janesville Road streetscaping thus far.

The access to the parcel is regulated so that no access is allowed off of Janesville Road. However, access points can be allowed off of Lannon Drive subject to city approval. Further, the possibility to establish cross access easements with the parcel to the west and south is strongly encouraged which could help to open up more development and parking opportunities on the proposal site.

Purchase Price The City is prepared to sell the land at a price not to exceed their expenses in order to get this parcel producing on the tax rolls and in order to promote a quality development. To date the city has approximately $8,000, plus miscellaneous staff and attorney fees, associated with the parcel. It is not expected that city costs will total more than $10,000 to $15,000.

A development proposal should state a threshold cost they are willing to pay, or simply state you are willing to pay the costs the city has incurred to the date of the closing. See incentives and remediation sections below for other factors related to reimbursements the city is willing to give during development. No brokerage fees will be paid.

Incentives As mentioned this parcel resides in the City’s Tax Incremental Finance District #8 (TIF #8). The city has monies available in TIF 8 in which they could aid an applicant in low interest financing if necessary. Further, the city already has a few loan and grant programs in place that an applicant may wish to use (see links below).

Due to the TIF #8 inclusion the city can effectively “think outside the box” in relation to an applicant’s possible incentive need. Further, this allows the city to expound upon the existing incentive programs found below should an applicant need/desire. An applicant wishing to utilize a new or existing incentive as part of their proposal should first discuss their desires with Community Development Director Jeff Muenkel, prior to submittal so the desired incentive parameters are properly articulated when the proposal is submitted.

Commercial Grant Program- http://www.cityofmuskego.org/DocumentCenter/View/245 App: http://www.cityofmuskego.org/DocumentCenter/View/244 Commercial Loan Program- http://www.cityofmuskego.org/DocumentCenter/View/247

3 App: http://www.cityofmuskego.org/DocumentCenter/View/246

Revolving Loan Fund- http://www.cityofmuskego.org/DocumentCenter/View/248

Remediation & Costs This parcel was a former gas station and has known petroleum contaminants on parts of the property as indicated in the attached maps. The city intends to aid in the removal of any soils disturbed as part of a development that the city approves. An applicant should review the contaminant maps attached and assess their possible need for reimbursement of costs compared to the development they propose.

An applicant should assess the amount of soil removal that may be required based upon the type of development proposed in the given area of possible contamination. Should a parking lot be found in the possible contaminated area they might assume that only two feet of excavation is required OR if a be found in a portion of the possible contaminated area they might assume that upwards of ten feet of excavation is required. In any event, the applicant should assess what amount of soils might be needed to be removed as part of their project and then determine what that threshold of costs might be to have it properly removed. That expected monetary amount should be included in the submittal. The city intends to outline the cost reimbursal to an approved developer in the future developer’s agreement based on actual invoiced costs.

NOTE: The city strongly encourages a development proposal that disturbs minimal soils in the areas of possible contamination on the attached maps. Parking lots, greenspaces, or landscape beds in these areas will reduce the soil removal need and may also eliminate any vapor intrusion mitigation need to a structure.

As mentioned previously the site is pad-ready, however, there is minimal residual impervious surfaces leftover from the parking lot of the former gas station. Applicant should also note any site costs they may want reimbursed associated with removing any impervious surfaces on the site.

Proposal Process Proposals will be reviewed on a first come first serve basis and should be submitted at the Community Development Department in the Muskego City Hall, W182 S8200 Racine Avenue.

Submitted items must include:  Project narrative discussing the details of the proposed project and how the project relates to the various adopted city documents discussed herein  Development team and experience

4  Preliminary architectural plans , elevations, and site plan  Business description and narrative of how operations will occur on site.  Offering Price, Financing Strategy, and any requests for aid in financing or remediation cost reimbursal needs.  Project Schedule

Additional info on the submission is located within Attachment A.

Preferred Use The property is zoned B-3 General Business Zoning District which opens up a variety of commercial uses for the parcel under the B-3 District as well as the B-2 and B-1 zoning districts (See also the Zoning Criteria section below which discusses another possible zoning district of uses a developer may desire). The “B” zoning districts discuss general uses such as the following:

 General merchandising and establishments  Drive-in establishments providing service without the necessity of customer entry into (inside) the building.  Hotels and motels  Building supply stores.  Retail stores and shops.  Community and customer service establishments such as, but not limited to, the following: (i) Business, professional, public service, banking and savings and loan offices. (ii) Restaurants, taverns and other commercial entertainment facilities. (iii) Laundromats, coin operated dry cleaning establishments and laundry or dry cleaning pick-up stations. (iv) Dental and medical clinics.  Commercial studios, display galleries and training schools.

Being in the heart of the City’s downtown and due to the constraints of the parcel relating to size the city would like to see a development orientated toward general merchandising, restaurant, office, or community and customer service establishments. However, any proposal will be looked upon based on its own merits.

Redevelopment Plan Design Criteria The City’s Redevelopment District #2 Plan calls for general design criteria the city would like to see as the downtown area develops. RFP submissions should try to adhere to RD #2 design guidelines listed below. Developers may bring forth a development that doesn’t meet the following criteria; however, factual information should be presented as why that is the case; such as market conditions, etc. The overall Redevelopment District #2 Plan can be found here: http://www.cityofmuskego.org/DocumentCenter/View/532

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Design Character  Buildings squarely facing the street  Pedestrian scale – walkable, accented storefronts  Variable roof-lines.  Transitional massing blending with surrounding architecture  Sense of place/identity

Use Mix  Upper end condos and above retail/office (professionals & ‘empty nesters’)  Destination and convenience retail  Orientation to service industries such as insurance offices, salons, and restaurants  Shared parking  Multiple purpose trips  Convenience

Density  Mid-Rise  Built-in consumer market for downtown businesses  More efficient public services/utilities  Interconnected activity centers

Zoning Criteria As previously stated, the zoning of the parcel is B-3 General Business Zoning District. The general uses allowed in this district are discussed further above and the general requirements for the B-3 zoning are found below. The Chapter 17 zoning code can be found here: http://www.cityofmuskego.org/DocumentCenter/View/240 . The zoning code also regulates various internal access, parking, lighting, refuse and other site plan related requirements for a proposed development.

B-3 General Business Zoning District Building (4) (3) Location Building (6) Height Size Min. Minimum Floor Max. Permitted Set Offset (In Feet) Back One All other Area Principal Accessory Side sides structure structure (In Feet) (In Feet) (In Feet) Ratio 40 10 15 40% 30 15

It should be noted that the city does have a zoning district entitled Downtown Revival (DR-1) that was put in place specifically for parcels in the downtown along Janesville Road. The DR-1 district may be desirable to an applicant due a few more uses that are allowed (including mixed use 6 residential) and the less restrictive setbacks that are required. An applicant can feel free to propose a development utilizing the auspices of the DR-1 zoning district if they desire, however they must be aware that a future approval would be contingent on getting a rezoning approval as part of the process. Please find the DR-1 uses and restrictions found here:

DR-1 Downtown Revival Zoning District Building (4) (3) Location Building (6) Height Size Min. Minimum Floor Max. Permitted Set Offset (In Feet) Back One All other Area Principal Accessory Side sides structure structure (In Feet) (In Feet) (In Feet) Ratio 10 5 10 40% 35 15

A. PERMITTED USES BY RIGHT 1. Single-family detached dwellings. 2. The following subject to approval by the Plan Commission of building, site and operational plans: a. Single-family attached, Duplex, or Townhouse structures. b. Retail stores and shops. c. Public administration offices and public service buildings. d. Community and customer service establishments such as, but not limited to, the following: i. Business, professional, public service, banking and savings and loan offices. ii. Delicatessen, Produce/Meat Market iii. Clothing Store iv. Restaurants, taverns and other commercial entertainment facilities v. Hotels vi. Laundry/Dry Cleaning Services. vii. Specialty Foods (Bakeries, Confectionaries, etc.) viii. Specialty Store (Books, Music, Toys, Sporting Goods, Stationery, etc.) ix. Variety Store x. Commercial studios, display galleries and training schools. xi. Public utility offices and installations xii. Accounting, Auditing, Bookkeeping, and Tax Preparation xiii. Architectural, Engineering, Planning & Surveying Services xiv. Barber/Beauty/Hair Salon & Related Personal Care xv. Bed and Breakfast Establishments xvi. Café, Coffee Shop, Diner, Restaurant xvii. Desktop Publishing & Graphic Design xviii. Legal Services xix. Lessons (Art, Dance, Music, etc.) xx. Medical/Dental Offices, including Veterinary xxi. Photography Studio xxii. Real estate xxiii. Tax Preparation xxiv. General Merchandising and wholesaling establishments 7

Design Guide Criteria The parcel is within the guidelines regulated by the adopted General Design Guide and the Downtown Design Guide of the City of Muskego. The below criteria is commercial development specific items commonly found in the Downtown Design Guide. In all, the city wishes to have a four sided modern architecture development for the downtown.

The General Design Guide can be found here: http://www.cityofmuskego.org/DocumentCenter/View/516

The Downtown Design Guide can be found here: http://www.cityofmuskego.org/DocumentCenter/View/514

 Four-sided architecture which utilizes similar building materials and design for all sides of a proposed structure is required.  50% masonry products required  Pitched roofs such as hip, gambrel, gable, etc. utilizing cedar or architectural asphalt shingles, raised steel seamed panels, or other similar materials shall be highly required. In the case of strip malls and shopping centers, developers shall provide elevations, which reflect these standards through facade or parapet wall presentations.  Roof top mechanical installations shall be appropriately screened so as to block the view from adjacent streets and properties. Such screening shall match or compliment the overall theme of the building.  Earth tones such as grays, greens, browns, burgundies, and tans are required. However, all proposed color schemes shall be reviewed on their individual merit.  Parking areas shall be designed to avoid a "sea of asphalt" syndrome.  Landscaping shall be designed to compliment the built and natural environment of the subject project and adjacent sites.  Signage shall be designed in unity with the building design through the use of the same or similar materials and colors. Ground or monument signs shall be strongly encouraged.  Lighting shall be down cast, cutoff, sodium fixtures not exceeding 15 feet in height (including the light pole base and/or pedestal).  Cross-access to and between neighboring properties shall be implemented wherever possible.  Minimum drive isle width should be no less than 24 feet.  Corporate identity shall not be prohibited yet the Plan Commission shall not recognize same as the driving factor in the design of the facility. Corporate identity shall be apparent yet reserved in its display.

Market Data Current Muskego market data including demographics, retail market overviews, and future projections can all be found on the City’s economic development website. Some direct links are as follows:

8 Demographic Quickfacts: http://www.cityofmuskego.org/index.aspx?NID=593

Muskego Marketing and Economic Development Plans: http://www.cityofmuskego.org/index.aspx?NID=424

Review Proposals will be reviewed in terms of:  Completeness of submittal  Proposed use  Quality and appropriateness of the building design and site improvements  Feasibility of the project  Offering price  Needs for incentives and remediation costs  Contribution to the City’s tax base  Developer’s expertise  Adaptability to Redevelopment Plan and City’s Downtown visions

City staff will initially review all proposals and forward them to the CDA for review and approval along with a possible recommendation based on the criteria above. Applicant will then proceed to the Common Council for approval of a developer’s agreement outlining the requirements needed to get a development started.

Planning Commission approval will be needed for a Building, Site, and Operation Plan as well as formal building permits from the Community Development Department.

Closing Applicant will be given three months after selection to obtain final plans and financing. Closing is contingent on the Planning Commission’s final approval of a Building, Site, and Operation Plan. Information on the option to purchase and closing can be found in Attachment A.

A closing will occur once all project elements (final plan approval, building permits, and financing) are in place. The City will then convey title by Warranty Deed and will provide the buyer with a title commitment.

The buyer will be expected to commence within 45 days of closing and be finished within 12 months.

Other Approvals Buyer shall be solely responsible for obtaining approvals for any uses or required licenses (rezonings, liquor permits, etc.). Further, buyer will be solely responsible for any other investigative needs in relation to the history of the parcel and contamination related issues. The parcel is sold as is subject to the approvals of the city for any aids in relation to incentives and remediation expenses.

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Tax and Code Policy Proposals will be rejected from any party who is delinquent in the payment of real estate taxes to the City of Muskego (as an individual or as part of a partnership or corporation); who has been convicted of violating an order of the Building Inspector; or who has been convicted of a felony crime affecting property or neighborhood stability. Tax and court records may be checked prior to closing.

Attachments The following documents are included for additional information: A. Submittal Requirements and Sale Processes B. Overview Map C. Pictures of Parcel D. Current Environmental Assessment & Map of Possible contamination E. Plat of Survey

Questions The city assumes that questions and requests for further information and clarifications will be needed depending on the type of development proposed. All questions should be directed to Community Development Director Jeff Muenkel at [email protected] or (262) 679-4136.

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The Community Development Authority and Common Council reserves the right to reject any and all proposals for any reason at its sole discretion, to negotiate terms and conditions of the eventual contract with the developer awarded the purchase and development rights, and to impose additional use restrictions, if necessary.

The contents of this packet are for informational purposes only and the representations made herein, though thought to be accurate, are without warranty. Development teams should rely exclusively on their own investigations and analyses.

The Community Development Authority and Common Council will honor confidentiality requests to the extent possible. If portions of your proposal are proprietary, please mark items as such.

Note: Unauthorized contact regarding this Request for Proposals with any City staff, Elected Officials, Community Development Authority, or Planning Commission may result in disqualification (This statement relates to contact used to gain an unprofessional advantage).

10 ATTACHMENT A: Submittal Requirements and Sale Process

Step 1: Prepare a Proposal Package with the Following Items:  Project narrative discussing the details of the proposed project and how the project relates to the various adopted City documents discussed herein  Development team and experience  Preliminary architectural plans , elevations, and site plan  Business description and narrative of how operations will occur on site  Offering Price, Financing Strategy, and any requests for aid in financing or remediation cost reimbursal needs.  Project Schedule

Step 2: Proposal Submission Address and deliver, or drop-off, to the Muskego Community Development Department at W182 S8200 Racine Avenue, Muskego, WI 53150. Please deliver two hard copy originals and a digital form of the submittal.

Step 3: Proposal Review and Buyer Selection City staff will initially review all proposals and forward them to the CDA for review and approval along with a possible recommendation based on the criteria herein. Applicant will then proceed to the Common Council for approval of a developer’s agreement outlining the requirements needed to get a development started.

Step 4: Plan Preparation A $3,000 to $5,000 developer’s deposit will be required to be submitted if an applicant is awarded the RFP. The deposit will go towards costs associated with the formal development approval process with the City’s Planning Commission. A bond of some sort, outlined in the developer’s agreement, may be required so that the city has some surety that the development will be completed as originally proposed.

Step 5: Closing To buy the property, a buyer will need to:  Submit final Building, Site, and Operation Plans for approval by the City’s Planning Commission. Final plans must be consistent with the preliminary drawings and concepts approved by the Community Development Authority RFP process. The appropriate fees, including developer’s deposits must all be paid.  Provide evidence of firm financing and/or equity  Execute a Developer’s Agreement outlining Approved Plans  Submit a bond to guarantee satisfactory completion  Pay the purchase price  Submit for applicable building permits  Be ready to start construction within forty-five days of closing

The City will convey property by Warranty Deed. Tax, Building Inspection, and court records will be checked prior to closing to ensure the buyer is not violating the City’s sales policies for tax delinquent, code violations, etc..

11 ATTACHMENT B: Overview Map NOTE: Property lines on this map are former property lines and the Plat of Survey should be used for true and accurate dimensions. ATTACHMENT C: Pictures of Parcel/Surroundings