HomeMy WebLinkAbout~Master - Reimbursement to JCorp, Inc. for 321 State Ave RFP in the amount of $293.10 RESOLUTION NO. 18-664
RESOLUTION APPROVING REIMBURSEMENT
TO JCORP FOR THE AMOUNT OF THE PLAN USED
IN REGARDS TO THE 321 STATE AVENUE RFP
FOR THE CITY OF AMES
WHEREAS, the City issued a request for proposals (RFP) in the Spring of 2017 to solicit
interest in a development partnership for the City's property at 321 State Avenue; and,
WHEREAS,the RFP outlined the City's development interests, developer obligations, and
City funding assistance; and,
WHEREAS, the City intended to financially assist in the development of the site with the
donation of the land and use of CDBG funding for the construction of infrastructure; and,
WHEREAS,the RFP indicated the developer's responsibility would include costs related to
the preparation of all subdivision and improvement plans for development of the site; and,
WHEREAS, JCorp, Inc. submitted the only response to the RFP, and City Council first
reviewed the proposal at its June 13, 2018, meeting and determined the initial proposal was not
workable due to cost, but was interested in alternative plans; and,
WHEREAS, at the July 11, 2018 meeting,the City Council reviewed an alternative design
provided by JCorp and staff discussed the overall layout and the presumed financial gap related to
the funding identified in the RFP and the cost estimates provided by the developer for the revised
plan; and,
WHEREAS, the City Council directed staff to proceed with negotiating a Development
Agreement with JCorp for a plan that included 35-37 homes as the first phase, despite known
concerns about the cost estimates for the project; and,
WHEREAS, with the direction from City Council to negotiate a Development Agreement
consistent with the RFP and the concept presented in July, staff began to work with the developer
on the language of an Agreement that included a stated cap on the City's financial involvement of
the project; and,
WHEREAS, the draft agreement included language requiring that any costs exceeding the
agreed-upon amount of City funding highlighted in the RFP would be the responsibility of the
developer; and,
WHEREAS, it became clear to staff and the developer that without specific plans and a
construction bid for the project, the overall costs would be unknown and a risk for the developer;
and,
WHEREAS, through conversations with the developer and email correspondence, it was
determined that rather than ask City Council to fund engineering work for public improvement
plants, JCorp would work with Fox Engineering to prepare subdivision plans that included public
improvement plans; and,
WHEREAS, staff received plans from Fox Engineering and worked to prepare plans and
specifications,and the City Manager's recommendation on proceeding with plans and specifications
noted at that time was that work by JCorp and Fox Engineering had been at risk while continuing
to negotiate a development agreement; and,
WHEREAS, the contract for public improvement construction was not awarded and the
process of negotiating a Development Agreement ended in January 2018; and,
WHEREAS,at that time Duane Jensen,on behalf of JCorp,asked if there was an opportunity
for reimbursement of costs expended in the RFP process.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that reimbursement to JCorp for the amount of the plan that was used to create the vertical profile
for the Tripp Street Extension,which is $293.10, is hereby approved.
ADOPTED THIS 18th day of December, 2018.
Diane R. Voss, City Clerk John . Haila, Mayor
Introduced by: Betcher
Seconded by: Beatty-Hansen
Voting aye: Beatty-Hansen, Betcher, Corrieri,Nelson
Voting nay: Gartin, Martin Absent: None
Resolution declared adopted and signed by the Mayor this 18th day of December, 2018.