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HomeMy WebLinkAbout07-R-24 Authorizing the City Manager to Negotiate and Execute a Contract for the Purchase of Real Property Located at 430 Asbury in an amount not to exceed $2,600,0001/22/2024 7-R-24 A RESOLUTION Authorizing the City Manager to Negotiate and Execute a Contract for the Purchase of Real Property Located at 430 Asbury Ave. in Evanston, Illinois WHEREAS, the City of Evanston seeks to purchase a vacant structure at 430 Asbury Ave., Evanston, Illinois, 60202 (the “Subject Property”); and WHEREAS, the Subject Property will be utilized as a recreation and children’s play space; and WHEREAS, the City Council hereby finds and determines that the best interests of the City of Evanston and its residents will be served by purchasing the aforesaid Subject Property, NOW BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS: SECTION 1: That the City Manager is hereby authorized and directed to negotiate all necessary terms, as they may determine to be in the best interests of the City, and which shall be approved as to form by the Corporation Counsel, of a contract for the purchase of real property, legally described in Exhibit A, attached hereto and made a part hereof, commonly known as 430 Asbury Ave., Evanston, Illinois, and execute said contract. ~ 1 ~ Page 1 of 15 Doc ID: 4aa3f9b9b9ae78fac1738d818e8969350ce0398d 7-R-24 ~ 2 ~ SECTION 2: That the purchase price for the Subject Property shall not exceed two million six hundred thousand dollars ($2,600,000). SECTION 3: That this Resolution 7-R-24 shall be in full force and effect from and after its passage and approval in the manner provided by law. _______________________________ Daniel Biss, Mayor Approved as to form: ______________________________ Alexandra B. Ruggie, Interim Corporation Counsel Page 2 of 15 Attest: ______________________________ Stephanie Mendoza, City Clerk Adopted: _____J_a_n_u_a_r _y _2_2____,2024 Doc ID: 4aa3f9b9b9ae78fac1738d818e8969350ce0398d 7-R-24 ~ 3 ~ EXHIBIT A LEGAL DESCRIPTION PARCEL 1: LOTS 1 AND 2 (EXCEPT THAT PART OF SAID LOTS LYING EAST OF A LINE 40 FEET WEST OF AND PARALLEL WITH THE EAST LINE OF SECTION 25) IN BLOCK 3 IN KELLY AND O’BRIEN’S SOUTH EVANSTON SUBDIVISION OF THE SOUTH 1/2 OF THE NORTH 1/2 OF THE NORTHEAST 1/4 OF THE NORTHEAST 1/4 OF SECTION 25, TOWNSHIP 41 NORTH, RANGE 13 EAST OF THE THIRD PRINCIPAL MERIDIAN IN COOK COUNTY, ILLINOIS. PARCEL 2: THAT PART OF THE NORTHEAST 1/4 OF THE NORTHEAST 1/4 OF THE NORTHEAST 1/4 OF SECTION 25, TOWNSHIP 41, RANGE 13, EAST OF THE THIRD PRINCIPAL MERIDIAN, IN COOK COUNTY, ILLINOIS DESCRIBED AS FOLLOWS: COMMENCING AT THE POINT OF INTERSECTION OF A LINE 33.0 FEET SOUTH OF AND PARALLEL WITH THE NORTH LINE OF THE NORTHEAST 1/4 OF SAID SECTION WITH A LINE 40.0 FEET WEST OF AND PARALLEL WITH THE EAST LINE OF THE NORTHEAST 1/4 OF SAID SECTION; THENCE SOUTH ALONG SAID PARALLEL LINE TO A POINT ON THE SOUTH LINE OF LOT 2 IN BLOCK 3 IN KELLY & O’BRIEN’S SOUTH EVANSTON SUBDIVISION OF THE SOUTH 1/2 OF THE NORTH HALF OF THE NORTHEAST 1/4 OF THE NORTHEAST 1/4 OF SAID SECTION; THENCE WEST ALONG SAID SOUTH LINE TO THE SOUTHWEST CORNER OF SAID LOT 2; THENCE NORTH ALONG THE WEST LINE OF LOTS 1 AND 2 AND BLOCK 3 IN SAID SUBDIVISION TO THE NORTHWEST CORNER OF LOT 1 IN SAID SUBDIVISION; THENCE WEST TO THE NORTHEAST CORNER OF LOT 15 IN BLOCK 3 IN SAID SUBDIVISION; THENCE SOUTH ALONG THE EAST LINE OF LOTS 14 AND 15 IN BLOCK 3 IN SAID SUBDIVISION TO THE SOUTH LINE OF THE NORTH 6 2/3 FEET OF SAID LOT 14; THENCE WEST ALONG SAID SOUTH LINE TO A POINT IN THE WEST LINE THEREOF; THENCE NORTH ALONG THE WEST LINE OF LOTS 14 AND 15 IN BLOCK 3 AND SAID WEST LINE EXTENDED NORTH TO A POINT ON A LINE 16.0 FEET NORTH OF AND PARALLEL WITH THE NORTH LINE OF SAID LOT 15; THENCE EAST ALONG SAID PARALLEL LINE TO A POINT ON A LINE 201.018 FEET (AS MEASURED ALONG SAID PARALLEL LINE) WEST OF AND PARALLEL WITH THE EAST LINE OF THE NORTHEAST 1/4 OF SAID SECTION; THENCE NORTH ALONG SAID PARALLEL LINE TO A POINT ON A LINE 185.014 FEET (AS MEASURED ALONG SAID PARALLEL LINE) SOUTH OF AND PARALLEL WITH THE NORTH LINE OF THE NORTHEAST 1/4 OF SAID SECTION; THENCE EAST PARALLEL WITH THE NORTH LINE OF THE NORTHEAST 1/4 OF SAID SECTION 30.65 FEET; THENCE NORTH PARALLEL WITH THE EAST LINE OF THE NORTHEAST 1/4 OF SAID SECTION 65.20 FEET; THENCE WEST PARALLEL WITH THE NORTH LINE OF THE NORTHEAST 1/4 OF SAID SECTION 1.65 FEET; THENCE NORTH PARALLEL WITH THE EAST LINE OF Page 3 of 15 Doc ID: 4aa3f9b9b9ae78fac1738d818e8969350ce0398d 7-R-24 ~ 4 ~ THE NORTHEAST ¼ OF SAID SECTION TO A POINT ON A LINE 33.00 FEET SOUTH AND PARALLEL WITH THE NORTH LINE OF THE NORTHEAST 1/4 OF SAID SECTION; THENCE EAST ALONG SAID PARALLEL LINE TO THE POINT OF BEGINNING, EXCLUDING THAT PART LYING WEST OF THE WEST LINE OF LOTS 1 AND 2 IN BLOCK 3 DESCRIBED ABOVE AS EXTENDED NORTH, ALL IN COOK COUNTY, ILLINOIS. EXCEPTING ALSO THAT PART OF THE ABOVE DESCRIBED PARCEL 2 FALLING WITHIN PARCEL 1. P.I.N.s: 10-25-203-011-0000 10-25-206-007-0000 10-25-206-008-0000 KNOWN AS: 430 ASBURY AVENUE, EVANSTON, ILLINOIS Page 4 of 15 Doc ID: 4aa3f9b9b9ae78fac1738d818e8969350ce0398d NEW 9 TH WARD COMMUNITY CENTER C ITY OF E VANSTON P ARKS , R ECREATION A ND COMMUNITY SERVICES New 9 th Ward Community Center Page 5 of 15 Doc ID: 4aa3f9b9b9ae78fac1738d818e8969350ce0398d N EW 9 TH WARD COMMUNITY C ENTER Business Plan Why an 8 th Community Center? While many could argue that investing in an 8 th community center is not necessary, the Parks and Recreation Department is certain that an additional community center would provide, what is now known across the country, a “third space” which is necessary for the overall well-being of all community members. In Sociology, the third space refers to social surroundings that are separate from our two usual social environments of home and work. There are so many positive benefits of community recreation centers. The ability to acquire Little Beans, a popular indoor playground, café and third space for over 13 years in the 9 th Ward, will ensure that those on the South End of Evanston will be provided core benefits that can only be found in a community recreation center. The acquisition of Little Beans Evanston will not only allow all families who have frequented this space for many years to return but will provide new families with the opportunity to take part in activities that were out of their financial reach. Families will now be able to take advantage of the City’s fee assistance programs, allowing them additional opportunities to learn gymnastics, participate in drop-in play and other recreational programming. Finally, the ability to grow the café in this space will provide long-term revenues for the Department as well as workforce development opportunities for community members throughout Evanston. The below chart illustrates the lack of amenities in the 9 th Ward. The acquisition of this Center will close the amenities gap by far. Evanston Community Amenities At-A-Glance Ward Beach Community Center Parks and Rec Field House Grocery Store 1 2 3 4 5 6 7 8 9 * * * Managed by Ridgeville Park District December 11, 2023 3 1. S UMMARY Page 6 of 15 Doc ID: 4aa3f9b9b9ae78fac1738d818e8969350ce0398d N EW 9 TH WARD COMMUNITY C ENTER Business Plan The Parks and Recreation Department believes in the many researched benefits of Community Recreation Centers. Those benefits include the following: Promoting Community Fitness; Increasing Educational Equity; Supporting Youth Development; Supporting Families; Increasing Cultural Awareness by Hosting Cultural Events; Boosting the Local Economy; Increasing Public Safety; Growing Awareness about Sustainability; Offering Mental Health Supports; and Promoting Overall Health. Through the acquisition of this center, the Parks and Recreation Department will accomplish these benefits through the following: ● Increased Gymnastics Programming – ability to remove participants from the waiting list and create a second space to concentrate more on beginner gymnasts. Department will also invite former participants of Little Beans Gymnastics Program to enroll in expanded Evanston program. ● Recreational Programming – offering catalog of programs to community members in the 9 th ward and complete surveys of additional desired programs. All Divisions will utilize new space to offer programs that currently have waiting lists. ● Camp – includes summer and school-day off care for kindergarten to 5 th grade. ● Drop-In Play - Based on current Little Beans operations, this play generates an excellent amount of revenue with the exception of the summer months (June-August). During these months, Department will offer additional early childhood development camps. ● Birthday Parties – there is an enormous demand for birthday parties. With the Ecology Center undergoing renovations, birthday parties will continue during renovations. Department will also be able to increase the number of gymnastics parties. ● Opening of the South Side 9 Café – initial operational hours from 6am – 2pm with increased hours as demand increases. ● A Permanent Home for Special Recreation Programming – in the history of this Department, Special Recreation Division programming has always been scattered across the city’s community center. This new center will provide a dedicated space for these programs. ● Early Childhood Development Programming – with the increased demand, the drop-in play and classroom areas will provide additional opportunities to provide a variety of programs for early childhood development. ● Licensed Preschool – this space will allow additional subsidized preschool services on the South side of Evanston. ● A Temporary Home for the Ecology Community Center Staff during Center Renovations – Key Ecology Center staff will be relocated to this new Center to reduce expenses while ensuring new center can be lucrative enough to break even or produce net positive revenues. New center also allows the Ecology Center to continue programs at or near pre-construction levels. Animals will also be relocated to this space. December 11, 2023 4 2. OVERVIEW AND DESCRIPTION Page 7 of 15 Doc ID: 4aa3f9b9b9ae78fac1738d818e8969350ce0398d N EW 9 TH WARD COMMUNITY C ENTER Business Plan ● Additional Special Events – catering to younger audiences and the creation of programming for parents to enjoy time off while children are entertained in a programmed and safe space. December 11, 2023 5 Page 8 of 15 Doc ID: 4aa3f9b9b9ae78fac1738d818e8969350ce0398d N EW 9 TH WARD COMMUNITY C ENTER Business Plan Marketing activities: The following promotional options and opportunities provide the Department with the best chance to promote the new Community Center. ● Media advertising (local and area newspapers, City e-newsletters, Department newsletters) ● Direct mail in water bills ● Advertisement of new programming in Parks and Recreation guides ● Direct mail and emails sent to former Little Beans customers ● Word of mouth and fixed signage across the community centers and bordering communities ● Business Districts ● Digital marketing such as social media, email marketing, etc. SWOT Analysis: STRENGTHS ● Expertise of current staff ● Financial support of City of Evanston ● Evidenced need for additional programs ● Limited start-up costs for staffing ● Affordable programs offered on a sliding scale ● Existing customers base WEAKNESSES ● Altering the mindset of the community to view earned revenue (profitability) also as a community good ● Perception that new community center will be the same as all others so why add another ● Expectations of former customers that all operations will remain the same ● Renting space vs. purchasing space will increase overall expenses OPPORTUNITIES ● New programming ● City-managed 9 th ward community center ● Dedicated home for Special Rec programs ● Workforce Development THREATS ● Market demand ● Economy movement ● Unforeseen repairs /equipment replacements of building ● Loss of key staff ● Timeframe for DCFS licensure ● Labor pool December 11, 2023 6 3. MARKETING PLAN Page 9 of 15 Doc ID: 4aa3f9b9b9ae78fac1738d818e8969350ce0398d N EW 9 TH WARD COMMUNITY C ENTER Business Plan ● Generate earned revenue to community good programs December 11, 2023 7 Page 10 of 15 Doc ID: 4aa3f9b9b9ae78fac1738d818e8969350ce0398d N EW 9 TH WARD COMMUNITY C ENTER Business Plan Projected start-up costs: The table below represents one-time start-up costs to purchase all furniture, equipment, including the technology utilized to manage all aspects of the building. Each cost represents the total amount of all items in each of the rooms. An attachment to this plan provides an itemization of what items exist in each of the rooms. Room Cost Depreciati on Reason Remaining Value from Original Total Value today Cafe $58,896.00 70% Purchased in 2015 30% $17,668.80 Big Beans $54,657.00 25% Purchased in 2022 75% $40,992.75 Little Beans $55,899.00 40% Various purchased dates between 2015-2020 60% $33,539.40 Preschool $4,825.00 20% Purchased in 2022 80% $3,860.00 General facility $57,649.42 40% Various purchased dates between 2015-2020 60% $34,589.65 Email list (16,000) $12,800.00 A business list costs $800 per thousand emails $12,800 $143,450.60 How do we fund 2024 start-up costs with additional funds for 2024/2025 contingent expenses: $35,000 Account 415.40.4123.65515.623021 Capital Improvement Fund 2023 General Obligation Bond Issue, Line Item for Parks Contingency. $300,000 Utilize remaining unallocated ARPA funds to provide a cushion for rent expenses for 2024 and 2025. December 11, 2023 8 4. FINANCIAL PLAN Page 11 of 15 Doc ID: 4aa3f9b9b9ae78fac1738d818e8969350ce0398d N EW 9 TH WARD COMMUNITY C ENTER Business Plan $200,000 Utilize $200,000 of restricted funds left in 100.41230.41230 With City Council approval, the above funds could be used for start-up costs associated with acquiring the building and any contingent expenses that might arise due to unforeseen circumstances for the first two years of operations. December 11, 2023 9 Page 12 of 15 Doc ID: 4aa3f9b9b9ae78fac1738d818e8969350ce0398d NEW 9 TH WARD COMMUNITY CENTER Business Plan Projected profit: The budget projections are based on the assumption that this faculty will not be under the control of the Parks and Recreation Department and operational until late March 2024. We can expect an increase in most revenue categories in 2025. The high season for this facility will be late Fall through late Spring. 2024 Re-Purposed Community Center First Year Projections FYI 2024 REVENUE JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD Estimated Café Sales $0 $0 $0 $15,000 $15,000 $15,000 $15,000 $15,000 $15,00 0 $15,000 $15,000 $15,000 $135,000 Drop-In Play $0 $0 $0 $20,000 $20,000 $5,000 $5,000 $5,000 $20,00 0 $20,000 $20,000 $20,000 $135,000 Gymnastics $0 $0 $0 $12,500 $12,500 $8,000 $8,000 $8,000 $12,50 0 $12,500 $12,500 $12,500 $99,000 B-Day Parties $0 $0 $0 $4,000 $4,000 $2,000 $2,000 $2,000 $4,000 $4,000 $4,000 $4,000 $30,000 Private Rentals $0 $0 $0 $1,000 $1,000 $1,000 $1000 $1,000 $1,000 $1,000 $1,000 $1,000 $9,000 Preschool $0 $0 $0 $0 $0 $0 $0 $0 $21,60 0 $21,600 $21,600 $21,600 $86,400 Camp $0 $0 $0 $6,000 $0 $0 $7600 $0 $4,000 $4,000 $4,000 $14,400 $40,000 Recreation Programs $0 $0 $0 $1,587 $1,587 $1,587 $1,587 $1,587 $1,587 $1,587 $1,587 $1,587 $14,283 Early Childhood Dev’t. $0 $0 $0 $1,000 $1,000 $1,000 $1000 $1,000 $1,000 $1,000 $1,000 $1,000 $9.000 Special Events $0 $0 $0 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $22,500 Total Revenue: $0 $0 $0 $63,587 $57,587 $36,087 $43,687 $36,087 $83,1 87 $83,18 7 $83,18 7 $93,58 7 $580,183 E XPENSES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD Salaries & Wages $0 $0 $3,125 $12,500 $12,500 $12,500 $12,500 $12,500 $12,5 00 $12,50 0 $12,50 0 $12,50 0 $115,625 Instructor Services $0 $0 0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,00 0 $1,000 $1,000 $1,000 $9,000 Seasonal Employees $0 $0 0 $2,000 $2,000 $2,000 $2,000 $2,000 $2,00 0 $2,000 $2,000 $2,000 $18,000 Food and Beverages $0 $0 5,000 10,000 10,000 10,000 10,000 10,000 10,00 0 10,000 10,000 10,000 $95,000 Contracts $0 $0 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,00 0 $2,000 $2,000 $2,000 $20,000 Rent $21,622 $21,622 $21,622 $21,622 $21,622 $21,622 $21,622 $21,622 $21,6 22 $21,62 2 $21,62 2 $21,62 2 $259,464 Utilities $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,50 0 $2,500 $2,500 $2,500 $30,000 Internet/Phone $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $9,996 Clothing $0 $0 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $4,000 Janitorial Supplies $0 $0 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $4,000 December 11, 2023 10 Page 13 of 15 Doc ID: 4aa3f9b9b9ae78fac1738d818e8969350ce0398d NEW 9 TH WARD COMMUNITY CENTER Business Plan Recreation Supplies $0 $0 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $9,000 Office Supplies $0 $0 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $1,250 Total Expenses $24,955 $24,955 $36,905 $54,280 $54,280 $54,280 $54,280 $54,280 $54,2 80 $54,28 0 $54,28 0 $54,28 0 $575,335 NET INCOME $4,848 Purchase of Building Inventory (to be deducted from contingent expense fund-Appendix A) *$143,451 2025 Re-Purposed Community Center Second Year Projections January through December 2025 REVENUE JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD Estimated Café Sales $15,750 $15,750 $15,750 $15,750 $15,750 $15,750 $15,750 $15,750 $15,75 0 $15,750 $15,750 $15,750 $189,000 Drop-In Play $21,000 $21,000 $21,000 $21,000 $21,000 $5,250 $5,250 $5,250 $21,00 0 $21,000 $21,000 $21,000 $204,750 Gymnastics $13,125 $13,125 $13,125 $13,125 $13,125 $8,400 $8,400 $8,400 $13,12 5 $13,125 $13,125 $13,125 $143,325 B-Day Parties $4,200 $4,200 $4,200 $4,200 $4,200 $2,100 $2,100 $2,100 $4,200 $4,200 $4,200 $4,200 $44,100 Private Rentals $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $12,600 Preschool $22,680 $22,680 $22,680 $22,680 $22,680 $11,340 $11,340 $11,340 $22,68 0 $22,680 $22,680 $22,680 $238,140 Camp $0 $0 $0 $6,300 $0 $0 $7,980 $0 $4,200 $4,200 $4,200 $15,120 $42,000 Recreation Programs $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $20,004 Early Childhood Dev’t. $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $12,600 Special Events $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $31,500 Total Revenue: $83,147 $83,147 $83,147 $89,447 $83,147 $49,232 $57,212 $49,232 $87,3 47 $87,34 7 $87,34 7 $98,26 7 $938,019 E XPENSES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD Salaries & Wages $23,097 $23,097 $23,097 $23,097 $23,097 $23,097 $23,097 $23,097 $23,0 97 $23,09 7 $23,09 7 $23,09 7 $277,164 Instructor Services $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,75 0 $3,750 $3,750 $3,750 $45,000 Seasonal Employees $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,50 0 $2,500 $2,500 $2,500 $30,000 Food and Beverages $10,000 $10,000 $10,000 10,000 10,000 10,000 10,000 10,000 10,00 0 10,000 10,000 10,000 $120,000 Contracts 2,000 2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,00 0 $2,000 $2,000 $2,000 $24,000 December 11, 2023 11 Page 14 of 15 Doc ID: 4aa3f9b9b9ae78fac1738d818e8969350ce0398d NEW 9 TH WARD COMMUNITY CENTER Business Plan *Rent $22,013 $22,013 $22,013 $22,013 $22,013 $22,013 $22,013 $22,013 $22,0 13 $22,01 3 $22,01 3 $22,01 3 $264,156* Utilities $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,50 0 $2,500 $2,500 $2,500 $30,000 Internet/Phone $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $9,996 Clothing $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $4,800 Janitorial Supplies $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $4,800 Recreation Supplies $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $8,400 Office Supplies $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $1,500 Total Expenses: $68,318 $68,318 $68,318 $68,318 $68,318 $68,318 $68,318 $68,318 $68,3 18 $68,31 8 $68,31 8 $68,31 8 $819,816 NET INCOME $118,203 *Represents 2% increase December 11, 2023 12 Page 15 of 15 Doc ID: 4aa3f9b9b9ae78fac1738d818e8969350ce0398d