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HomeMy WebLinkAbout2018-05-02 - Agenda Packet - SpecialMAY 2,2018-3:30 PM SPECIAL MEETING AGENDA CITY COUNCIL WORKSHOP City Hall I Tri -Communities Room 10500 Civic Center Drive I Rancho Cucamonga, CA 91730 Pledge of Allegiance Roll Call: Mayor Michael Mayor Pro Tem Kennedy Council Members Alexander, Spagnolo and Williams This is the time and place for the general public to address the City Council on any item listed on the agenda. State law prohibits the City Council from addressing any issue not previously included on the Agenda. The City Council may receive testimony and set the matter for a subsequent meeting. Comments are to be limited to five minutes per individual or less, as deemed necessary by the Mayor, depending upon the number of individuals desiring to speak. All communications are to be addressed directly to the City Council not to the members of the audience. This is a professional business meeting and courtesy and decorum are expected. Please refrain from any debate between audience and speaker, making loud noises, or engaging in any activity which might be disruptive to the decorum of the meeting. C1. ETIWANDA TRAIN DEPOT PRESERVATION & RESTORATION PROJECT UPDATE. CERTIFICATION I, Linda A. Troyan, MMC, City Clerk Services Director of the City of Rancho Cucamonga, or my designee, hereby certify under penalty of perjury that a true, accurate copy of the foregoing agenda was posted on at least twenty -our (24) hours prior to the meeting per Government Code 54954.2 at 10500 Civic Center Drive, Rancho Cucamonga, California and on the City's website. Linda A. Troyan City Clerk Services Director Page 3 DATE: May 2, 2018 TO: Mayor and Members of the City Council FROM: John R. Gillison, City Manager INITIATED BY: Lori Sassoon, Deputy City Manager/Administrative Services SUBJECT: ETIWANDA TRAIN DEPOT PRESERVATION & RESTORATION PROJECT UPDATE. RECOMMENDATION: Staff recommends that the City Council consider the draft outline of the Request for Proposals for the restoration and adaptive reuse of the Etiwanda Train Depot and provide related direction to staff. BACKGROUND: The Etiwanda Train Depot was built in 1914 and is one of the first tilt -up concrete buildings constructed in the region. The Depot is listed on the National Register of Historic Places, and is owned by the City. The City's longtime goal for the Depot has been to facilitate its restoration and preservation through adaptive reuse, and for the Depot and its site to serve as an eastern trailhead for the Pacific Electric Trail. A number of community groups and volunteers have been partners in these efforts through the years, including and especially the Friends of the Pacific Electric Trail. At a workshop on November 15, 2017, staff presented a summary of the work on the Depot up to that date. That work has been focused on stabilizing the condition of the structure and beginning some restoration work using CDBG funds as they become available. The City Council was also updated regarding plans to construct a restroom building adjacent to the Depot and make other public improvements, and to issue a Request for Proposals (RFP) for the restoration and adaptive reuse. The Council directed that the RFP be brought back to the Council in Spring 2018 for further discussion and consideration. ANALYSIS: Since the November workshop, a team of staff from various departments has been working to prepare for the RFP release and for the next phase of the CDBG-funded public improvement projects as further discussed below. Depot RFP Attachment A summarizes the key points of the Request for Proposals (RFP) for the Council's consideration. Page 5 The recommended goal of this RFP is to create a public-private partnership that will fund the restoration, adaptive reuse, and long-term preservation of the Etiwanda Depot site. It is recognized that the City's allocation of CDBG funds to pay for the restoration is extremely limited, and perhaps more significantly, the potential elimination of the CDBG program seems to be a subject of annual discussion at the Federal level. With the City's budget appropriately focused on core services such as public safety and infrastructure, a creative new approach to meeting the Depot site goals is needed. To that end, this RFP envisions that the selected partner will bring private funds to the table for the restoration and preservation work, to include private funding of future maintenance and operations of the Depot. In exchange, the City will provide a long-term lease agreement for the property. The RFP requests that the responding partner propose lease terms, including the lease payment structure. The intention of a long-term lease agreement for the site is to provide the selected partner with time to see a return on the investment in the restoration work. Given the constraints of the site in terms of building size and location, permitted uses, and the need to preserve the historic fabric of the building, a longer return on the investment is to be anticipated as compared to a site that might have fewer constraints and be located in a retail or commercial corridor. The long-term lease may also make the partner eligible for federal historic preservation tax incentives of up to 20% of the cost of the restoration. Staff has had a preliminary discussion regarding the Depot project with the California State Office of Historic Preservation, which administers the tax credit program on behalf of the federal government. The RFP envisions that the City will work with the selected partner to apply for these tax credits if they so desire. In order to attract the largest possible pool of qualified potential partners to this project, the RFP encourages, but does not require, a proposed use that will provide some level of public access to the interior of the Depot and/or provide some sort historic display or interpretive exhibits. These types of uses are certainly highly desirable and would be in keeping with the City's overarching goals for the site. However, to require them would be to place another limitation on what is likely to be a challenging project from a market feasibility perspective. It is hoped that responding partners may bring creative and unexpected ideas that might meet this challenge. You will note that the RFP outline proposes a fairly lengthy timeline for the RFP process. This timeline is recommended in order to allow sufficient time for the RFP opportunity to be marketed to potential partners, and for those partners to assemble their teams, develop adaptive reuse concepts, prepare their pro forma financial analyses, and to begin due diligence on the site. Research into similar adaptive reuse projects indicates that a more lengthy timeline for the RFP that allows for these steps may actually yield a more timely project in the long run. Planned Public Improvements At the November 2017 workshop, staff presented a plan for a next phase of public improvements that included construction of a restroom building, parking lot improvements, and the installation of windows and doors. These projects have been planned using CDBG funds that have been previously allocated. Since that time, and based on further research and analysis regarding how to best position the Depot for the public-private partnership, this next phase of improvements has been modified. First, it was recognized that if the doors and windows were replaced before the Depot were to be occupied by a tenant, there would be a high probability that they would be damaged by vandalism in a short period of time. It is now anticipated that the doors and windows project will be postponed until the RFP process is completed and the private partner is identified, so that the City's project can be coordinated with the private partner's restoration and occupancy of the space. The planned public restroom building has also been removed from the next phase of the public improvements and will instead be considered at a later date. The planned restroom building would have been located to the east of the Depot building and would serve both the Depot as well as users oWhe 6 Pacific Electric Trail. However, based on some feedback from commercial real estate professionals, it was recognized that placing this structure on the Depot site might be viewed as a further constraint to potential partners. There are also other options for locating a public restroom in the area in the future, such as on the south side of the trail or further to the east on the property the City leases from SBCTA. By postponing the construction of the restroom, we can first further evaluate the need in light of the ultimate adaptive reuse plan, which may include the rehab of the restrooms that already exist inside the Depot. The first phase of the updated public improvement project will include the grading of the parking area to the north of the Depot and constructing an asphalt parking lot with ADA parking, redwood split rail fence, and concrete sidewalk from the parking lot to the building and along the south side leading to the east side of the Depot. Also, all on-site private utilities (water, sewer, electricity & internet) will be underground and extended from the street to the Depot building and further extended to the east side of the building. This first phase would be constructed in Fall 2018. In a second phase of public improvements, the public overhead utilities will be undergrounded along the Etiwanda Avenue street frontage, utility poles removed, and a street light installed on a concrete pole. This second phase would take place in Summer 2019. These timelines assume that these projects are exempt from further environmental review. Staff is in the process of analyzing these matters, but if further environmental review is needed, then these timelines for construction will be pushed out by approximately 6 to 9 months. FISCAL IMPACT: There is no immediate fiscal impact by the action to approve the RFP outline. One of the goals of this approach to the RFP is to ensure the restoration and continued operation of the Etiwanda Depot through a public-private partnership that has a cost neutral or net positive impact to the City's budget. The estimated cost of the first phase of public improvements at the Depot site is $165,000, plus the project contingency; the second phase has an estimated cost of $113,000. There are no further fiscal impacts at this time. COUNCIL GOAL(S) ADDRESSED: N/A ATTACHMENTS: Description Attachment 1 - Depot RFP Summary Attachment 2 - Site plan of public improvements Page 7 Etiwanda Depot RFP - Outline of Key Points Project Summary and Goal — 1. The goal of this Request for Proposals (RFP) is to identify and select a partner who will rehabilitate the historic Etiwanda Depot, ensure its adaptive reuse, and become financially responsible for the building's ongoing maintenance and operations, likely through a lease agreement with the City retaining ownership. 2. The partner may be the tenant, or the partner may propose to rehabilitate and then sublease the building to tenant(s). a. The City is open to all proposed reuses that would complement the adjacent Pacific -Electric Trail, nearby schools, and the surrounding neighborhoods. 3. Proposals are encouraged, although not required, to propose uses that will provide some level of ongoing public access to the Depot and/or amenities that complement the adjacent Pacific -Electric trail. Proposal contents: 1. Cover letter — Executive summary, project title, partner name 2. Qualifications — a. Type of firm/organization b. Key partners/staff team members involved c. Resume of team leader d. Other recent projects that are similar e. Financial qualifications f. Experience with restoration/rehab of historic structures g. Client references 3. Approach to project — a. Summary of proposal b. Staffing plan c. Preliminary financial analysis (pro forma) d. Preliminary concept plans; describe in detail the proposed use of the property e. Proposed lease terms (length, lease payment, other terms) f. Proposed role of City/city staff. 4. This RFP seeks to give proposers the flexibility to submit proposals that meet their specific needs. However, the City is generally interested in the following key points in the approach to the project: a. City expects to enter into a lease and improvement agreement with a partner 1 Page 8 b. Partner will repair and/or construct improvements, to be approved by the City; all design, construction, and related costs are responsibility of the partner. c. Ongoing operations and maintenance of the facility will be the responsibility of the partner. Selection Process: Team of City staff will review based on proposer's knowledge, skills, experience, past performance, and quality of proposal. Will also consider: 1. Quality of rehabilitation and adaptive reuse concept design; level of detail included in the project proposal. Proposals that are more fully developed (for example, have project teams identified; have architectural concepts and/or drawings; have determined financing and financial terms) will be considered more responsive than more general, conceptual proposals. 2. Financial terms and financial capacity of the proposer. The City will give high priority to the proposal that offers the highest rent, both in terms of monthly payments as well as total payments over the term of the lease. Financial capacity of the partner will also be evaluated based on financial statements provided by the partner. 3. Quality of the proposed use and/or proposed tenant 4. Project feasibility and proposed timeline, including process following selection. 5. Partner reputation, and quality of past professional experiences; demonstrated professional skill and credentials of staff and/or consultants assigned to the project. a. Experience in rehabilitation of historic facilities is highly preferred, as is experience with meeting the Secretary of the Interior's Standards for historic preservation and adaptive reuse. 6. Consideration of public access and enjoyment of the Depot at some level, and/or uses the complement that PE Trail The top proposers will be invited interview with the City. Tentative Timeline: June 1 — RFP Release June/July — RFP marketing and outreach August (2 dates TBD) — Pre -submittal conference and site tours September (2 dates TBD) — Pre -submittal meetings with Planning staff to discuss concepts/issues November 1 — Deadline for written questions November 15 — Proposals due 2 Page 9 November/December — RFP evaluations, interviews, and selection Process followina selection: 1. Enter into negotiations with the selected partner; partner will be required to make a good faith initial deposit of $5,000, and then another $20,000 in 60 days. 2. Due diligence period for partner to investigate the building and obtain entitlements. Refundable if they do not obtain entitlements. 3. Lease and improvement agreement executed at conclusion of due diligence period. 4. Proposer can suggest another process following selection other than that outlined here. Page 10 —R WOOD PP W L 3 1 IG' jy W SMH I � L 0 1 AC •ill`'' m (PROPOSEW 1 %� s is DQPOT r < a < REDWOOD FENCE (PROPOSED) OUTILITY STUB OUT (PROPOSED) DECOMPOSED GRANITE HISTORICAL SIDEWALK RAILROAD (PROPOSED) LI \ \� \� PCC SIDEWALK w (PROPOSED) I o I ETIWANDA DEPOT •M CONCEPTUAL SITE IMPROVEMENTS N Page 11 ETIWANDATRAIN DEPOT PRESERVATION & RESTORATION P ROJ ECT U P DATE City Council Special Meeting May 2, 2018 BACKGROUND • Depot built in 1914 and owned by the City • Historic restoration and adaptive reuse of the Depot has been a longtime goal • The property would also serve as a trailhead for the Pacific Electric Inland Trail, a 21 -mile long regional trail that runs through Rancho Cucamonga. • Council last updated at November 2017 workshop; staff directed to prepare an RFP for restoration and reuse for consideration in Spring 2018 RFP Goals • Public-private partnership is sought • Fiscal sustainability is key —RFP seeks private dollars to fund restoration in exchange for a lease agreement • Partner may be tenant, or may sublease, or both • Proposals are encouraged to propose uses that will provide some ongoing public access and/or include amenities to complement PE Trail Requirements • Cover letter and summary • Qualifications of proposer, including financial and historic restoration experience • Approach to project • Summary of intended uses • Financial analysis • Concept plans • Proposed lease terms Selection Criteria • Quality of rehab and adaptive reuse concept design • Financial terms and financial capacity of the proposer; fiscal sustainability of the proposal • Quality of proposed use and/or tenant • Project feasibility and timeline • Partner reputation and professional experiences; skills/credentials of project team. • Experience in rehab of historic facilities preferred • Consideration of public access and/or uses that complement the PE Trail Timeline W_ M =_ June 1 RFP release June —July RFP marketing and outreach August Pre -submittal conference and site tours September Pre -submittal meetings with development staff November 1 Deadline for written questions November 15 Proposals due November — Proposal evaluation period; results and next steps December reported to City Council for consideration Update on Public Improvements • Doors and windows project postponed until RFP project is completed • Planned public restroom building removed from plans, can be considered at a later date if needed — restroom can be restored in the Depot • Parking lot paving, sidewalk installation, utilities to the building, and undergrounding of overhead utilities to take place over the next 12 months • CDBG-funded project • Timing pending environmental review ETIWANDATRAIN DEPOT PRESERVATION & RESTORATION P ROJ ECT U P DATE City Council Special Meeting May 2, 2018