Real Estate

720 MUSEUM DRIVE

View Bid For This Property

Offering Summary	The City of Mobile (City) owns a parcel of improved real property that was previously used as a City facility and as an armory prior to City usage, but is no longer needed by the City. The City of Mobile seeks proposals to purchase with the intent with for a qualified developer to create an impact to the community through residential development. Multifamily dwellings are of interest to support the residential housing demand.
Property Location	The property is located at 720 Museum Drive. The property is located in the Spring Hill Avenue area of the City and is surrounded by neighborhood businesses, recreational facilities, public safety facilities, and residential neighborhoods. The selected developer could show community impact intent by also enhancing the area of N. McGregor Blvd from the round-about to Springhill Avenue.
Site / Zoning	The site is 4.33+ acres and the building is 16,400+ SF, Lot 2, with the existing structures are to be demolished by the developer. It currently falls within R1 residential zoning. However, the property can be considered for rezoning to a more suitable category, depending on the plans. It is expected that the selected respondent will rezone the property as needed, with city staff support.
Utilities	Existing utilities on site include Alabama Power (electrical), Spire Energy (natural gas) and Mobile Area Water and Sewer System (water and sanitary sewer).
Pricing	The City of Mobile is required to obtain a minimum of fair market value for the sale of its real property. Proposals less than $820,000 will not be considered. Broker fees will be paid by the buyer – line item included on the respondent form attached.

Existing Survey	Deed Restrictions	Utilities to Site	Floodplain	ROW/Traffic	Environmental

SUBJECT PROPERTY
LOCATION: 720 Museum Drive

LEGAL DESCRIPTION

STATE OF ALABAMA
COUNTY OF MOBILE
BEGINNING AT A CAPPED REBAR (R&C) AT THE SOUTHEAST CORNER OF LOT 1, ST. AUGUSTINE RESUBDIVISION, AS RECORDED IN MAP BOOK 121, PAGE 13 OF THE RECORDS IN THE OFFICE OF THE JUDGE OF PROBATE, MOBILE COUNTY, ALABAMA; THENCE RUN SOUTH 00o-03’-46” EAST ALONG THE WEST RIGHT-OF-WAY LINE OF MCGREGOR AVENUE (VARIABLE R/W) A DISTANCE OF 423.60 FEET TO A NAIL & DISK (WATTIER) IN CONCRETE; THENCE RUN NORTH 89o-42’-46” EAST ALONG SAID RIGHT- OF-WAY LINE A DISTANCE OF 13.68 FEET TO A NAIL & DISK (WATTIER) IN CONCRETE; THENCE RUN SOUTH 00o-41’-41” EAST ALONG SAID RIGHT-OF-WAY LINE A DISTANCE OF 399.87 FEET TO THE NORTHEAST RIGHT-OF-WAY LINE OF MUSEUM DRIVE (80’ R/W); THENCE RUN NORTHWESTWARDLY ALONG SAID NORTHEAST RIGHT-OF-WAY LINE AND ALONG THE ARC OF A CURVE TO THE LEFT (HAVING A DELTA OF 56o-01’-09”, A RADIUS OF 840.15 FEET; A CHORD BEARING OF NORTH 48o-20’-47” WEST, AND A CHORD LENGTH OF 789.10) AN ARC DISTANCE OF 821.43 FEET TO A CRIMP TOP PIPE; THENCE RUN NORTH 00o-20’-02” WEST A DISTANCE OF 301.92 FEET TO A 2” OPEN TOP PIPE; THENCE RUN SOUTH 89o-42’-46” EAST A DISTANCE OF 572.37 FEET TO THE POINT OF BEGINNING. THE DESCRIBED PARCEL CONTAINS 6.21 ACRES, MORE OR LESS.

SITE AND BUILDING INFORMATION:

The Site is a total of 4.33+ acres, or 188,508+ square feet; the building is 16,400+ square feet. The building is a brick and metal structure built on concrete slab foundation and has a built-up flat and metal roof. The City is seeking a developer to demolition existing structures on the property to create new construction multifamily residential.

SURROUNDING AREA:

The property of 720 Museum Drive is in the beautiful Spring Hill area. It is close to medical facilities, shopping, banking, and has residential neighborhoods to the north and east of the property. The area boasts of nearby parks, museums, community theater, and more. It is surrounded immediately by recreational, commercial, and a brand-new state-of-the-art fire station.

The site is currently zoned R-1, single family residential. However, there are both single family neighborhoods and multi-family complexes within a quarter of a mile away. Development would be required to fully comply with applicable City of Mobile zoning regulations to include (but not limited to) parking and circulation, setbacks and buffering, and landscaping and tree planting requirements. Depending on the proposed occupancy, providing the required number of parking spaces, with circulation, should be planned according to City ordinance and code.

Additionally, the site will need to comply with City Engineering/Right of Way requirements and the building, with Build Mobile/Permitting building code requirements.

The Selected respondent will be responsible for any needed rezoning of this parcel.

PRESENT CONDITION OF THE PROPERTY:
The information below is for informational purposes only and in no way should be used, without further inspection, to construct a response to this RFP.

• The Property is being sold as-is. No warranties or representations of any kind are being made by the City of Mobile, its agents or assigns.
• The buildings on this site were built in 1966; these are to be demolished by the buyer.
• The site has been determined to be outside the 500-year FEMA floodplain. The site is
• designated as Flood Zone X.
• All major public utilities are available to the site.
• Based on the age of the building and the materials used in its construction, it is possible that there may be asbestos containing materials, lead base paint, or other hazardous materials present in the building. Respondents will be responsible for conducting their own environmental assessment and testing and will be responsible for any required environmental remediation.

CITY OBJECTIVES

The City of Mobile seeks to select a developer to purchase the property at 720 Museum Drive to accomplish the following objectives:

• Residential development for a community impact to substantially commence within a 12- month timeframe. The deed to the awarded qualified developer will include the restriction(s).
• Undertake the rezoning and approvals process to convert property to the acceptable residential development planned;
• Create an aesthetic and safe community impact for residents along Museum Drive and near Langan Park, blending well with commercial activity along Museum Drive and Spring Hill Avenue, and to contribute to the amenities in the neighborhood by providing a residential development;
• Return the property to the tax rolls.

PROPOSALS, ELIGIBILITY, AND SELECTION

PROPOSALS
In addition to meeting the above threshold requirements, the Respondent must submit a complete response to this Request for Proposals. The Response must contain the following information:

• The price the Respondent is willing to pay for the Property in its “as-is” condition. The City is required to obtain at least Fair Market Value for the sale of its real property. The minimum bid is $820,000;
• A conceptual plan for rezoning of the property and residential development;
• Identify and describe in detail future occupancy plans for the Property once the redesign has been completed, including any re-zoning or conditional use permits that would be
• required.
• Provide a detailed timeline for the entire rehabilitation project, including completion dates that include the following milestones:
  • Rezoningthesitefortheproposeduse;
  • Procuringbuildingpermits;
  • Startofconstruction;
  • CertificateofOccupancy.
  • Place offer in a closed opaque envelope labeled “SEALED PROPOSAL”.
  • If bidder desires that payment of any broker fee be disbursed as a closing cost from the gross sale proceeds, then the amount of the fee shall be plainly disclosed in the bid and the bid amount should be increased accordingly so that the net proceeds to the City of Mobile is not reduced.

All questions must be sent in writing by mail to Carleen Stout-Clark at the address listed under “Proposal Submission” below or by email to carleen.stout@cityofmobile.org / RE: PROPOSAL-720 Museum Dr., REAL ESTATE DEPARTMENT. Questions must be received no later than three (3) business days prior to the date for receipt of Proposals. All responses will be in writing in the form of an Addendum to the Request for Bids.

FINANCIAL CAPABILITY

In addition to the above, the successful Respondent must demonstrate the financial capacity to undertake the proposed redevelopment and will be required to submit the following upon selection:

• Potential investors or contractors: a line of credit availability OR proof of funds letter from a lending institution and most recent corporate financial statement OR other evidence acceptable to the City;
• If an investor or contractor, please provide three references or examples of similar, previous projects.

RESPONDENT ELIGIBLITY

Selection will be based on the highest responsible and responsive proposal that best satisfies the objectives of the City for the development of this Property. Conceptual plans will be considered.

Respondent must meet the following threshold requirements in order to be eligible to respond to this RFP:

• The Respondent or a related entity may not own any real property within the City of Mobile that has any unresolved citation or violation of any local codes and/or ordinances.
• The Respondent may not own any real property within the City of Mobile, Mobile County or the State of Alabama that is tax delinquent.
• The Respondent must not have been the prior owner of any real property in the City of Mobile that was transferred to the State Land Commissioner as a result of tax delinquency.

 

PURCHASE AGREEMENT

Following selection, the selected respondent will be required to enter into a Purchase Agreement with the City. The Purchase Agreement shall incorporate the following: A Scope of Work and/or Construction Plans and Specifications as deemed acceptable by the City based on the conceptual plans proposed by the Respondent, the Project Timeline, including performance milestones such as close of due diligence and issuance time of closing; and a reversion clause.

The specific terms of the Purchase Agreement will be negotiated between the City and the successful respondent upon selection.

The City will be responsible for the cost of the preparation of the deed and Title Insurance. The deed will include restriction(s) regarding the residential requirement for this development. All other closing costs as well as the costs for additional surveys or inspections shall be the responsibility of the selected respondent.

The selected respondent will have thirty (30) days from selection to execute a Purchase Agreement with the City.

PROPOSAL SUBMISSION

RESPONSES ARE DUE: Responses must be received on or before Wednesday, April 5, 2023, at 2:00 p.m. CST.
All Proposals shall be submitted on the Response Form provided with this Request for Proposals. Proposals may be delivered or mailed to the following:

Physical Address:

City of Mobile
Government Plaza (Drop off – 9th Floor South Tower “City of Mobile Bids”)
City Clerk’s Office 9th Floor, South Tower
RE: Sealed Proposal for 720 Museum Drive Property
205 Government Street
Mobile, AL 36602

Mailing Address:

City of Mobile
City Clerk’s Office – 9th Floor, South Tower
RE: Sealed Proposal for 720 Museum Drive Property
P.O. Box 1827
Mobile, AL 36633

If Proposal Delivered in person: Enter Government Plaza, take the South Tower elevators to the 9th Floor, and leave sealed Proposal in the box, marked “City of Mobile Bids”, no later than Wednesday, April 5, 2023 @ 2:00 PM local time. Proposals Will Not Be Accepted in the Real Estate Department.

PROPOSAL OPENING and SELECTION

Proposals will be opened at 2:30 pm on April 5, 2023. All responsible and responsive Proposals will be forwarded to a real estate committee for review and recommendation for award.

The City may reject any or all Proposals or may make awards to the highest and most responsive Respondent. In determining the most responsive proposal, the City shall take into consideration the Respondent’s proposal and the following factors:

• The price the Respondent is willing to pay for the parcel;
• The proposed use and rehabilitation plan;
• The Respondent’s financial capacity to undertake the project(s) in a timely manner (to be reviewed upon selection).

Selection of successful Respondent will not be based solely on high bid, but rather on the complete proposal package. It is anticipated that a selection would be made by April 14, 2023.

RESERVATION OF RIGHTS
The City reserves the right to:

• Amend, modify, or withdraw this RFP;
• Revise any requirements under this RFP;
• Accept any proposal deemed to be in the best interests of the City, and to reject any and
• all proposals;
• Require supplemental or clarifying information from any responding party, without having
• been deemed to have changed the terms of the RFP;
• Extend the deadline for submissions of responses;
• Negotiate or hold discussions with any Respondent to supplement responses.
• Include deed restriction(s) regarding residential development.

Additionally:

The City may exercise all rights at any time without notice and without liability for expenses incurred in responding to any changes in the RFP. Responses are prepared at the sole cost and expense of the respondent. Responses are submitted for the benefit of the party identified on the Proposal Form and are non-assignable.

Nothing stated at any time by any City agent or representative will effect a change or addition to the RFP, unless confirmed in writing by the City and distributed to all responders.

All information submitted in response to this RFP shall become the property of the City, and as such, may be subject to public review as public records. Any responder who submits records of sensitive internal business affairs, proprietary information, or information that could potentially be used by competitors to achieve an unfair business advantage must identify the information as confidential at the time it is submitted to the City. The City will not release appropriately designated confidential information. If the City finds that the information is not confidential for purposes of the Alabama Open Records Act, it will consult with the responder before releasing it to the public.

Respondents acknowledge and agree that the City will not be liable for any costs, expenses, losses, damages (including damages for loss of anticipated profit) or liability incurred by the respondent as a result of, or arising out of, responding to this RFP.

This proposal uses the gender-neutral words “it” and “its” in place of “he” and “she” and “his” and “her,” etc., merely for the sake of brevity or to include the possibility that a consulting firm might submit a proposal.

DISCLAIMERS

The Property is being sold “as is, where is.”

APPENDICES

1. Property Survey*
2. Site Plan*
*The attached drawings are intended only for respondents’ general information in preparing their proposals. No guarantee is given as to the accuracy of these documents. Respondents shall be responsible for verifying all information and for preparing their own surveys in preparation of their proposal and for documents required at closing.