Minneapolis Park & Recreation Board

Resolution
2013-108

Resolution Authorizing the Superintendent to Enter into a Purchase Agreement to Dispose of the Land and Building at 2529 13Th Avenue South to the Banyan Community, Inc. Contingent on District Court Approval; and Declaring the Property at 2529 13Th Avenue South as Surplus Property and Directing Legal Counsel to Obtain District Court Approval of Disposition of Same

Information

Department:Strategic PlanningSponsors:
Category:ContractProjects:No Project

Item Discussion

Whereas, The Minneapolis Park & Recreation Board (MPRB) is the steward of the Minneapolis Parks;

 

Whereas, The MPRB is the fee title owner of the land and building at 2529 13th Avenue South, Minneapolis, Minnesota;

 

Whereas, The land and building were leased to Pillsbury United Communities from September 1, 1970, to May 31, 2012;

 

Whereas, The land and building are an important asset to the community;

 

Whereas, The MPRB authorized the Midtown Phillips Neighborhood Association to establish a Reuse Committee and charged the committee with managing a property reuse proposal solicitation and recommendation process;

 

Whereas, The Reuse Committee received two proposals and rated the one received by Banyan Community, Inc. the highest;

 

Whereas, Based on the recommendation of its Reuse Committee and a vote of the general membership, Midtown Phillips Neighborhood Association also recommends the Banyan Community, Inc. proposal; and

 

Whereas, This resolution is supported by the MPRB 2007-2020 Comprehensive Plan, which envisions “Dynamic parks that shape city character and meet diverse community needs”;

 

RESOLVED, That the Board of Commissioners authorize the Superintendent to enter into a purchase agreement to dispose of the property and building at 2529 13th Avenue South to the Banyan Community, Inc. contingent on District Court approval;

 

RESOLVED, That the Board declare the property at 2529 13th Avenue South as surplus property and directs legal counsel to obtain District Court approval of disposal of same; and

 

RESOLVED, That the President of the Board and Secretary to the Board are authorized to take all necessary administrative actions to implement this resolution.

 

 

 

Body

BACKGROUND

 

The Minneapolis Park & Recreation Board (MPRB) is the fee title owner of the land and building at 2539 13th Avenue South formerly known as the Waite House. The property was leased to Pillsbury United Communities, who operated The Waite House from September 1, 1970 to May 31, 2012, at which time the Waite House moved into the Phillips Community Center. 

 

In May 2012, the MPRB charged the Midtown Phillips Neighborhood Association with establishing a Reuse Committee for the 2539 13th Avenue South property, managing a property reuse proposal solicitation process and recommending a preferred proposal to the MPRB. Based on the Reuse Committee recommendation and a neighborhood vote, Banyan Community, Inc. is the Midtown Phillips Neighborhood Association’s preferred proposal.

 

The building at 2529 13th Avenue South was constructed in the late 1960’s using federal funds.  The MPRB has never occupied the building and the federal funds were essentially “pass through” funding for the construction of the Waite House building for Pillsbury United. Planning staff researched the requirements of the federal funding used to construct the Waite House and found that the MPRB could dispose of the building and property as all federal requirements have been met.  The building is over 40 years old and there are deferred maintenance items that need to be addressed. 

 

To inform the process, a building condition assessment was completed by ICS Consulting and an appraisal of the property was completed by Walker Appraisal.  Three levels of renovation were outlined in the report; level one – needs to be done within 3 years ($175,000), level two – needs to be done within 4-7 years ($65,000) and level three – needs to be done in the next 8+ years ($320,000). The appraisal valued the 38,794 square feet of property and the 9,775 square foot building at $250,000.  The land only was valued at $154,000.  These valuations would result in the value of the land at $3.97 a square foot and the building at $9.82 a square foot.

 

The Reuse Committee Process

 

The MPRB approved a resolution on May 16, 2012, that the Midtown Phillips Neighborhood Association be charged with establishing a Reuse Committee, managing a property reuse RFP solicitation process for the property and recommending a preferred proposal for the MPRB. In addition the Reuse Committee was charged with providing a process that is inclusive and fair and recommends a proposal that best meets the needs of the neighborhood while also meeting the financial interests of the MPRB.

 

The Midtown Phillips Neighborhood Association approved establishing a Reuse Committee on June 12, 2012 and charged the committee with the following tasks:

 

Ø      Creating a list of possible reuse options for the property,

Ø      Developing comprehensive communications tools,

Ø      Soliciting input from near neighbors to the site and the neighborhood at large,

Ø      Creating the language for the RFP and publishing it with the assistance of the MPRB,

Ø      Hosting a series of neighborhood informational meetings, and

Ø      Proposing best options from the search at the MPNA general membership meeting.

 

The Midtown Phillips Neighborhood Association searched for potential committee members until early September.  The first meeting of the Reuse Committee was held on September 13.  The Reuse Committee reviewed the charge from the MRPB, discussed any potential conflicts of interest, discussed the community engagement process, reviewed a draft process and timeline, reviewed a draft request for proposals, reviewed a draft community survey, and listened to public comments.

 

The next meeting was held on September 27 and the Reuse Committee discussed and approved the process and timeline, discussed and approved the request for proposals, reviewed and discussed the community survey, reviewed and approved the community engagement plan, and listened to comments from the public. The request for proposals was issued on October 1 and proposals were due on November 8. 

 

An open house was held by Midtown Phillips Neighborhood Association on October 9 at its regular meeting.  The open house format allowed for public input on the reuse of the property.  Volunteers put flyers for the meeting on houses in a three block radius from the property.

 

The community survey was online at the MPRB website from October 1 through October 31 in English, Somali and Spanish. Surveys were also located at the recreation centers in the area in English, Somali and Spanish.  A copy of all the survey results with the open ended questions included is attached.  A summary of the survey responses is shown in Attachment 1.

 

The Reuse Committee met on November 1 to develop a rating system for proposals based on the comments received through the community survey and the open house.  The rating system was finalized at the November 15 meeting prior to the Reuse Committee seeing the two proposals. The rating system is shown in Attachment 2.

 

The Proposals

 

Two proposals were received in response to the request for proposals.  The two proposers are both currently working in the Phillips area.  Both organizations are well established and well respected non-profits.  Both organizations signed a release that allowed their proposals to become public information prior to a decision being made on the proposal selection.  An overview of each organization’s proposal is shown in Attachment 3.

 

 

Proposal Presentations

 

The Reuse Committee met on November 20 to allow each organization to present their proposals.  Each of the groups was allowed 20 minutes for presentation and 10 minutes for questions and answers.  The public that attended the meeting were allowed to ask questions of each of the presenters. Just as the written proposals were reflective of the high quality of each organization, the oral presentations were both thorough and professional.

 

 

The Rating Process

 

The Reuse Committee met on November 29 to finalize the ratings for each proposal. The goal of the Reuse Committee was to have an objective system of rating the proposals.  In four of the rating dimensions (1, 2, 3 and 5) the ratings were formulaic and driven by the maximum points and established method of scoring. Criteria 4 was based on survey questions two, three and five as well as each Reuse Committee member’s assessment of “fit” with the neighborhood.

 

The Reuse Committee voted to recommend Banyan Community to the Minneapolis Park and Recreation Board as the highest rated proposal (see Attachment 4 for rating). Both organizations attended the Reuse Committee meeting where the ratings were finalized and were asked if they had any concerns or issues with the ratings or the criteria.  There were no concerns expressed at the meeting by either party.

 

Midtown Phillips Neighborhood Association General Membership Vote

 

The Midtown Phillips Neighborhood Association held a general membership meeting on December 11 to vote on a community preference for the reuse of 2529 13th Avenue South.  Both of the organizations were provided 10 minutes to present their proposal and 10 minutes of questions and answers from the public.  Over 75 people attended the meeting.   The general membership vote was 56 for Banyan Community and 12 for In the Heart of the Beast.

 

RELATED BOARD ACTIONS

 

1970                                          Original Lease Approval

 

September 1, 2010              Lease Extension

 

February 15, 2012              Resolution 2012-123, Resolution Authorizing Staff to Extend the Lease with Pillsbury United Communities of the Land and Building at 2529 13Th Avenue South, Currently Known as the Waite House, Under Existing Terms and Conditions, to May 31, 2012

 

May 16, 2012              Resolution 2012 – 186, Resolution Authorizing the Midtown Phillips Neighborhood Association to Establish the Waite House Reuse Committee and Charging Committee with Managing a Property Reuse RFP Solicitation Process for the Waite House Property at 2529 13Th Avenue South and Recommending a Preferred Proposal to the MPRB

 

 

RECOMMENDATION

Staff recommends authorizing the Superintendent to enter into a purchase agreement to dispose of the property and building at 2529 13th Avenue South with Banyan Community, Inc. contingent on District Court approval. Staff further recommends declaring the property at 2529 13th Avenue South as surplus property and directing legal counsel to obtain District Court approval of property disposal.

 

This action is supported by the following vision and goal statements in the MPRB 2007-2020 Comprehensive Plan.

Vision Theme 3:              Dynamic Parks that shape city character and meet diverse community needs.

Goal:              Focused land management supports current and future generations.

Goal:              Financially independent and sustainable parks prosper.

 

 

Meeting History

Jan 16, 2013 5:10 PM  Administration & Finance Committee Committee Meeting
RESULT:ADOPTED [2 TO 0]
MOVER:Liz Wielinski, Commissioner District 1
AYES:Anita Tabb, Liz Wielinski
ABSTAIN:Scott Vreeland
ABSENT:Bob Fine, Jon Olson
Feb 6, 2013 4:30 PM  Minneapolis Park and Recreation Board Regular Meeting

_______

President Erwin stated for the record that he received a letter from The Heart of the Beast withdrawing their response to the RFP. Copy of letter placed on file.

Passed as Amended.

RESULT:ADOPTED [UNANIMOUS]
MOVER:Scott Vreeland, Commissioner District 3
SECONDER:Bob Fine, Commissioner At Large
AYES:Brad Bourn, John Erwin, Bob Fine, Carol A. Kummer, Anita Tabb, Scott Vreeland, Liz Wielinski, Annie Young
ABSENT:Jon Olson
Feb 6, 2013 4:30 PM  Minneapolis Park and Recreation Board Regular Meeting

Amend:

Resolution Authorizing the Superintendent to Enter into a Purchase Agreement, Contingent on Board Approval of the Purchase Agreement, to Dispose of the Land and Building at 2529 13th Avenue South to the Banyan Community, Inc. Contingent on District Court Approval; and Declaring the Property at 2529 13th Avenue South as Surplus Property and Directing Legal Counsel to Obtain District Court Approval of Disposition of Same, Furthermore that the proceeds from the sale of this property shall be allocated into the Land Acquisition Fund

RESULT:ADOPTED [UNANIMOUS]
MOVER:Scott Vreeland, Commissioner District 3
SECONDER:Liz Wielinski, Vice President, Commissioner District 1
AYES:Brad Bourn, John Erwin, Bob Fine, Carol A. Kummer, Anita Tabb, Scott Vreeland, Liz Wielinski, Annie Young
ABSENT:Jon Olson