R2022-72 Resolution Authorizing City Manager to Purchase Property Located at 333 E. Macon Street, along with 3 Additional Adjoining Parcels, Decatur, Illinois

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OFFICE OF THE CITY MANAGER DATE: April 14, 2022 TO: Honorable Mayor Julie Moore Wolfe and City Council Members FROM: Scott Wrighton, City Manager Jon Kindseth, Deputy City Manager Lacie Elzy, Acting Transit Administrator SUBJECT: Resolution Authorizing the City Manager to Purchase Property located at 333 E. Macon St, along with 3 additional adjoining parcels. RECOMMENDATION: Staff recommends approval of this Resolution authorizing the purchase of these four properties. BACKGROUND: The City of Decatur applied for the Illinois Rebuild II Public Transportation Capital Assistance Grant and was awarded a total of$3.7 million. The funds were awarded for the purchase of four hybrid buses in the amount of$2.7 million and the construction of a new bus barn for our paratransit fleet in the amount of$1 million. Rather than build a brand new building on property already owned, the City will purchase an existing building that can be rehabbed for less than this amount. The properties at 333 E. Macon & 339 E. Washington are listed for$500,000 but with the demolition and repairs needed the City is has negotiated a contract for$310,000.00. The remaining$690,000 will be utilized for demolition and other repairs as needed. With the current inflation on steel, concrete, and labor for construction projects, the rehabilitation on an existing industrial building will provide cost savings and will keep us within our current grant award budget. Prior to being listed for sale, the properties were used as a car repair and tire storage facility. Which make it conducive for our proposed use also. This property is approximately 3.6 acres and has approximately 30K square feet of existing usable space. There are multiple large buildings on the property. According to our staff Buildings Inspector, one building will require partial demolition and we would frame and sheet it in to preserve and use the rest of the building. Another building will require tuck-pointing and retaining wall work. The other four(4)buildings are in relative good repair structurally and could be utilized as a bus barn immediately with minor repair work. An aerial view of the properties is attached with this item. STAFF REFERENCE: Should the City Council have any questions, they may contact Jon Kindseth at 217.450.2323 orjkincitetii(ci,(iecaturii Dov, Lacie Elzy at 217.542.3559 or Lelzy@decaturil.gov BUDGET/TIME IMPLICATIONS: This acquisition is entirely funded by a Rebuild Capital grant, not yet included in our City budget for 2022.