The city received this parcel on Rio Drive, south of Illinois Avenue, from the County in 2017. The County obtained the parcel though a donation from a bank, that had foreclosed on the parcel. At that time, the County was focusing on home rehabilitation, and offered the property to the CRA, which accepted the property.
The CRA issued a Request for Proposal (RFP) in order for the property to be developed. Desiring a good product and a homeowner to live on the property, the RFP required the develop to build a 3-bedroom, 2 bathroom, 2 car garage house at least 1,200 square feet in size.
The house must be finished within 18 months. The sales price of the lot will be $15,000. If the developer sells the property to an owner that homesteads the property, and a Certificate of Occupancy is issued within 18 months of sale, the $15,000 sales price will be returned to the developer.
The reason for the $15,000 subsidy was to encourage a developer to buy the property and develop it quickly. There never was a structure on this parcel, so all utility connections and impact fees are the responsibility of the developer.
Three developers submitted proposals:
Gary L. Blackwell Investments, Inc.
Sonia Cowan
Callco Homes
RECOMMENDATION:
Based on the proposals, neighborhood compatibility of the proposed structure, products already produced, and local economic impact, a selection committee of the Executive Director and the Planning and Development Director reviewed the proposals. Staff recommends that the property be sold to Gary L. Blackwell Investments, Inc., with the conditions listed above.
Approval is requested to allow the Executive Director to enter into an agreement to sell the Rio Drive property to Gary L. Blackwell Investments, Inc.
BUDGET / FISCAL IMPACT:
The budget impact would be $0, if developer sells the property with conditions. If not, $15,000 will be revenue to the CRA.