Requests for Proposals (RFPs)—First Round Pursuant to previous direction from the city council, the city issued a public request for proposals in November of 2013 for the use or redevelopment of the city-owned portion of the FRCDS prop- erty. The intent of the request for proposals was to identify qualified users or developers to utilize or redevelop the FRCDS property. The city received two responses to the request for proposals. One response was from the Elgin Charter School Initiative, also known as the Elgin Math and Science Academy. The second response was from Elgin Academy. The proposal from the Elgin Charter School Initiative was for a lease to utilize four of the buildings on the property for a charter school for grades kindergarten through eighth. The four buildings proposed to be leased were the Neil Building, the Dining Hall, the Administration Building and the gymnasium. The Elgin Math and Science Academy had partnered with the Expeditionary Learning Organization and proposed to establish a leading-edge math and science academy char- ter school. The proposal from Elgin Academy was for a lease to utilize several buildings on the FRCDS prop- erty for a variety of educational programs including a language immersion program for interna- tional students and a variety of other summer programs including summer residential camp pro- grams, summer day camp programs and environmental programs utilizing various natural fea- tures on the property. A proposed lease between the city and the Elgin Charter School Initiative was presented to the city council in March of 2014. The lease contemplated a shared use of the buildings between the Elgin Charter School and other tenants including potentially Elgin Academy. The proposed lease also contemplated that the city would be responsible for the maintenance and repairs of the subject buildings; that the city would be responsible for the payment of utilities, exterior ground maintenance and for snow removal; that the city would improve the subject buildings into move- in condition at the time of occupancy; and that the Elgin Charter School Initiative would pay an- nual rents commencing at $50,000 for year one with escalating rents thereafter. The proposed lease was also subject to and contingent upon the Elgin Charter School obtaining approval of the charter school from School District U-46 or from the State of Illinois Charter School Commission. Due in substantial part to the potential costs for the city under the proposed lease, including the costs to renovate the subject buildings, the city council did not take final action on the proposed lease with the Elgin Charter School Initiative for a portion of the former Fox River Country Day School property. The discussions with Elgin Academy regarding a proposed lease of the property did not result in a specific lease proposal from Elgin Academy for the use of the former Fox River Country Day School property. In October of 2014, the city council approved a letter of intent between the city and the Elgin Charter School Initiative for a lease of the Rakow School Building at 515 Sports Way. The terms of that proposed lease provided for free rent and for the Elgin Charter School to pay the cost of improving, repairing and maintaining that property and to pay the other costs of operating the site including utilities. The charter school application was ultimately denied by School District U- 46 and by the State of Illinois Charter School Commission. The letter of intent between the city 4 and the Elgin Charter School Initiative for the Rakow School Building was contingent upon the approval of the charter school and was therefore canceled and null and void. Requests for Proposals (RFPs)—Second Round The city issued a second public request for proposals in June of 2014 for the use of redevelop- ment of the city-owned portion of the FRCDS property. The city received two responses to this second request for proposals. One response was from B2b Convergence, Inc. The second re- sponse was from Restoration America, Inc. B2b Convergence proposed purchasing of the property for a kindergarten through twelfth grade private school with a focus on science and math. The organization included various foreign inves- tors and interests. The apparent emphasis for this proposed school was for international stu- dents. The proposal included an initial offer of $100,000 to the city for the purchase of the prop- erty. The discussions with B2b Convergence did not result in a specific contract for the sale of the property. The proposal from Restoration America was to acquire the property for a treatment center for various emotional and substance issues. The initial proposal included the request that the city donate the property without a monetary purchase price. The principal of Restoration America passed away after the proposal was submitted. The discussions with Restoration America did not result in a specific contract proposal for the conveyance of the property. In April of 2016, the city received a letter proposal from an organization identified as the Chicago Junior School proposing to lease the FRCDS property. The proposed lease was for eight of the buildings on the property, not including the Cox Cottage dormitory or Kilburn Hall dormitory, and proposed to utilize the property for a kindergarten through twelfth grade private school. The initial proposal included a request that the city provide funding as a challenge match to help secure the seed money necessary to initiate the preparation for the project. The proposal in- cluded free rent the first year, rent in year two in the amount of approximately $32,000 and rent in year ten of approximately $429,000. The proposal also provided for the city to be responsible for any environmental remediation including, but not limited to, mold, asbestos and any hazard- ous materials and for the city to deliver the property and the buildings in good working order and repair by June of the year they will be occupied. The proposal also provided that the city would be responsible for the demolition of the Cox Cottage dormitory and the Kilburn House dormitory. There were several concerns with the proposal including the costs to the city to renovate the buildings and building systems and the financial capacity of the entity to perform under the pro- posed lease. The discussions with the Chicago Junior School did not result in a specific lease for the property. In the past months, the city received a confidential inquiry from an organization regarding the FRCDS property. The organization was contemplating the consolidation of several existing school facilities and expressed a possible interest in the property. The organization was interested only in purchasing the property or a long-term (99-year) lease. That the organization has not made any decisions on whether it will be consolidating schools. Staff also advised the organization that 5 city council members had previously expressed a desire to lease the property rather than sell the property. The discussions with this organization have not resulted in a specific proposal for the property. This past weekend, the city received a proposal from an organization identified as the Evergreen Real Estate Group proposing to lease the property. The proposal is for a reuse of the property for 60 units of affordable housing. The proposal further requests a rezoning to allow up to 100 multi- family units on the site, a minimum 75-year lease with a term up to 99 years, a one-time lease payment for the long-term lease of the lesser of 50 percent of the appraised value of the property or $1,000,000, grants from the city of approximately $350,000 and waiver or reductions of build- ing permit fees and water tap fees. The proposal also contemplates obtaining Illinois affordable housing tax credits which is a competitive process requiring application to the Illinois Housing Development Authority. Although the proposal identifies a reuse of the property for 60 units of affordable housing, the proposal does not include any details regarding the proposed physical redevelopment of the property. Taking into account the requested incentives, the proposal would likely result in the city essentially giving the property to the developer rent free for the requested long term lease of 75 to 99 years, with the possibility of the city providing incentives in excess of the one-time lease payment. Given the circumstances and the terms of the proposal, staff is recommending that this proposal not receive further consideration at this time. Elgin Math and Science Academy Application with School District U-46 As the council is likely aware, the Elgin Math and Science Academy submitted on January 31, 2017 to School District U-46 a new application to establish a charter school at the FRCDS property. A copy of the Elgin Charter School Initiative application and proposal submitted to School District U-46 is attached (Attachment D). The proposed Elgin Math and Science Academy is for a kindergarten through eighth grade charter school. The school would open for the school in 2018 with grades kindergarten through third and a total of 200 students. At capacity in 2023 the school will operate with kindergarten through eighth grade with capacity of approximately 450 students. The Elgin Math and Science Academy has once again partnered with the Expeditionary Learning Organization and proposes to establish a leading-edge math and science academy charter school. The attached application includes an initial school overview section which describes among other matters the mission and vision of the charter school. School District U-46 will conduct a hearing on the application for the charter school on March 13, 2017. School District U-46 will decide whether to approve or disapprove the Elgin Math and Science Academy’s application on or before April 12, 2017.