R2022-180 Resolution Authorizing an Agreement Between the City of Decatur, Illinois, and Lindy Lu LLC., for the Sale of Retired Fire Station #3 Located at 1308 and 1316 West Eldorado St.

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MEMORANDUM DATE: October 13, 2022 TO: Honorable Mayor Julie Moore Wolfe and City Councilmembers FROM: Scot Wrighton, City Manger Jon Kindseth,Deputy City Manger SUBJECT: Resolution Authorizing An Agreement Between the City of Decatur, Illinois, and Lindy Lu LLC., for the Sale of Retired Fire Station#3 Located at 1308 and 1316 West Eldorado St. SUMMARY RECOMMENDATION: Staff recommends City Council approve this Resolution for the sale of this property as presented BACKGROUND: Late last year the city solicited proposals for the sale of old Fire Station 3, by encouraging a planned use that would add value to the neighborhood and community. There were eight proposals submitted ranging in uses and offer prices. An evaluation committee reviewed and ranked these based on the combination of these factors. The staff recommended to Council that the site be sold to the corn hole business. Since that time this business proposal has fallen apart due to the buyer's inability to obtain adequate financing. The city reopened invitations for proposals last month and hosted several property showings. The city received two proposals that were renewals of previous proposals updated, with new materials and revised offers and proposed uses. The property is currently zoned R-6 residential. The property has commercial zoning on two sides of it and residential adjoining. During the evaluation of these proposals the second time, consideration was given to the size and ability of the proposed buyer to take on and manage this project. One proposal came from a local church; they want to create a student housing center, serve as a safe place for Millikin students and influencers to mingle and/or live. This proposal would likely be tax exempt. The proposal did not indicate level of investment they are willing to make in the facility for remodeling and modernization. The second proposal is from Mark Allen, owner of Lindy Lu LLC. Mr.Allen is proposing to build an addition on to the facility and add residential apartments above as described in the attached proposal and drawings. City staff believes this proposed use is a good fit for this property, and the level of investment($750K+)in the property makes this proposal stand above any others. It is recommended that the Lindy Lu LLC proposal be approved. The sale proceeds of$115,000 will be used to cover the construction costs of the new fire station #7 currently being completed. INPUT FROM OTHER SOURCES: Proposal and rendering provided by proposer are attached. STAFF REFERENCE: City Manager, Scot Wrighton or Deputy City Manager, Jon Kindseth can address any questions related to the sale of this property.