Kewaunee RFQ Downtown Property Redevelopment.pdf

REQUEST FOR

QUALIFICATIONS

Downtown Property Redevelopment

Kewaunee, WI

City of Kewaunee

401 5th Street Kewaunee, WI 54216

All RFQ submittals must be received no later than 4:30 p.m.

January 28, 2022 to be considered for the first round of reviews

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Purpose The City of Kewaunee (“City”) is seeking statements of qualifications from developers (individuals, firms, or teams) interested in presenting a viable design and redevelopment concept for the former Hamacheck/Klockner Property located within the “Ellis Point” development area in downtown Kewaunee, along the Kewaunee River. This process is seeking financially viable project(s) that are aligned with the City’s vision for the site as stated in the City’s Waterfront and Integrated Planning Documents. The City will select, through this RFQ process and interview, finalists for further consideration under a subsequent Request for Proposal (RFP) process, which will be aimed toward awarding a development agreement for the redevelopment of the Site.

Location The City of Kewaunee is located in the eastern portion of Kewaunee County along the northwestern shores of Lake Michigan and is the county seat of Kewaunee County.

Kewaunee straddles the mouth of the Kewaunee River as it runs into Lake Michigan. The community sits just 30 miles south of Door County and 30 miles east of Green Bay and is situated at the crossroads of STH 29 and STH 42. The community encompasses an area of approximately 3.7 square miles with a population of 2,848 based on the 2021 census

Kewaunee County has noted strong and steady growth in the tourism sector due to some of the best and scenic recreational opportunities in the state of Wisconsin including the best deep-water fishing on Lake Michigan, two challenging golf courses, two craft breweries, and three growing wineries. In addition, Kewaunee County has 23 acres of park land per 1,000 residents and 2.6 miles of bike and hiking trail per 1,000 residents (not including trails/land within incorporated areas). According to the Wisconsin Department of Tourism Kewaunee County saw $24.5 million in direct visitor spending and $41.7 million in total business sales in 2019. The County did see a drop in both categories $22 million and $37 million respectively in 2020 due to the economic impacts from the pandemic.

The City of Kewaunee has also become an increasingly popular wedding destination (Lakehaven Hall, Barnsite Retreat and Events Center and The Hollyhock House and Gardens). The City provides waterfront access to Lake Michigan that supports boating, fishing, kayaking, and other water-based opportunities throughout the City. These multiple access points include:

• Public and private boating access are available at marinas located in the City’s inner harbor.

• A boat launch is located on the north side of the Kewaunee River at Kewaunee Landing.

• The south side of the City’s inner harbor provides water access following the replacement of the seawall in 2017.

• Lake Michigan State Water Trail is an aquatic pathway identified along the shore of Lake Michigan. Water trails are primarily oriented around non-motorized boating such as kayaking and canoeing. The City has water trail public access points at Selner, Pioneer, and Father Marquette parks.

• Selner, Pioneer, and Father Marquette parks include amenities such as beaches, picnic tables, and playground equipment.

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General Site Information The project site is located within Kewaunee’s downtown business district and sits between the Kewaunee River to the north and Ellis Street to the south, falling within the Ellis Point planning area.

The site overlooks the Kewaunee River and has extensive views of the Kewaunee Harbor which attracts visitors for the water access, amenities, and is an economic driver for the City.

The Kewaunee Harbor consists of:

1. The inner harbor contains all the existing dock and mooring facilities and is separated from the outer harbor by a peninsula. The seawall was replaced on the south side of the City’s inner harbor in 2017.

2. The outer harbor is formed by two projecting breakwaters and is the location of the deep-water harbor.

The property has direct access to the Kewaunee River and sits steps from the Kewaunee Harbor, where a $4.2 million harbor improvement project was completed in June of 2017.

Harbor improvements include an aesthetically enhanced public park, fishing platforms, 850 feet of seawall replacement, a renovated lighthouse, and more than 1,300 feet of new pedestrian boardwalk creating a seamless pedestrian route from Harbor Park to the Kewaunee lighthouse, passing directly in front of this property. In addition, the park is home to the historic WWII Tug Ludington positioned along the dock wall. Guided tours of the tug are available during the summer months.

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Current Site Conditions

i. Former uses and Ownership

The project site is ±139,392 Sq. Ft. (3.2 acres) and was formerly owned by the Hamacheck/Klockner company, a food processing machinery facility. The property is vacant and cleared of buildings. The site is owned by the City of Kewaunee and bordered by Ellis Street on the south side and the Kewaunee River on the north. The Site has direct access to the river and is clearly visible from the Kewaunee River by the boating community that traverse the river to and from the City’s Harbor and Lake Michigan.

ii. Zoning

The property is zoned B-2 Community Business District and is ideally suited for a mixed-use development. The City’s Comprehensive Plan outlines opportunity to increase growth in the core Central Business District. The City of Kewaunee’s current zoning ordinances can be found online (http://www.cityofkewaunee.org/).

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iii. Flood Plain The Project site is a FEMA Flood Zone with the northern portion closest to the river wall being a B Zone and the southern portion of the property being an C Zone.

The zones are defined, in general terms, as:

• B Zone: Designated base flood plains of lesser hazards, such as areas protected by levees from 100-year flood.

• C Zone: Areas of minimal flood hazard.

The project site is currently under a FEMA remapping process and in draft form.

FEMA is expecting to have the area in preliminary form by October 2021. As of this RFQ, we have not been provided a date for final mapping.

iv. Environmental Condition of Site

The Project Site received a Final Closure with Continuing Obligations letter on June 7, 2018, from The Wisconsin Department of Natural Resources (“DNR”). No further investigation or remediation is required at this time. However, future property owners and occupants of the property must comply with the continuing obligations as explained in the conditions of closure letter and summarized as follows:

The continuing obligations for this site are summarized below. Further details on actions required are found in the Final Closure with Continuing Obligations letter from

DNR.

• Groundwater contamination is present at or above ch.NR 140, Wis. Adm. Code enforcement standards.

• Residual soil contamination exists that must be properly managed should it be excavated or removed.

• One or more monitoring wells were not located and must be properly filled and sealed if found.

• A clay soil cover with topsoil and vegetation, gravel, or a concrete boardwalk must be maintained over contaminated soil, and the DNR must be notified and approve any changes to this barrier.

• Remaining contamination could result in vapor intrusion if future construction activities occur. Future construction includes expansion or partial removal of current buildings as well as construction of new buildings. Vapor control technologies will be required for occupied buildings, unless the property owner assesses the potential for vapor intrusion, and the DNR agrees that vapor control technologies are not needed.

Any changes to the site that directly or indirectly impacts the barrier including, but not limited to, construction or placement of a building or structure on the barrier cannot occur unless prior written approval is obtained by DNR.

THE CITY MAKES NO REPRESENTATIONS OR WARRANTIES

CONCERNING THE ENVIRONMENTAL CONDITION OF THE PROPERTY

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v. Uses and Activities As mentioned previously, the City of Kewaunee adopted a Waterfront Plan in 2009 (available online at http://www.cityofkewaunee.org/). The Kewaunee Harbor contains a mix of commercial, some industrial, recreational, and residential. The plan identifies goals and strategies for improving Kewaunee’s harbor and the surrounding Central Business District.

The property was identified as one of the key redevelopment sites. The City of Kewaunee is open to proposals that provide for the following uses for the property.

• Service

• Retail

• Residential (market rate)

• Lodging

• Commercial

• Ancillary Residential

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Desired Development and Ongoing Planning Efforts The City is seeking private mixed-use hospitality/commercial development on the site as reflected in the City’s planning documents, specifically, the City’s Waterfront and Integrated Planning Documents. The City has been very active in promoting development of its waterfront district through various planning efforts. These include:

City of Kewaunee 20 Year Comprehensive Plan (2009) The Kewaunee Comprehensive Plan provides the City with guidance regarding future growth, land use, and overall physical development. The Comprehensive Plan identified opportunities for redevelopment in the downtown business district and encouraged maintaining overall building character, scale, and architectural style. In addition, the Comprehensive Plan prompted the importance of developing a waterfront plan to enhance the harbor area, lakefront, and Kewaunee River.

City of Kewaunee Initial Waterfront Plan, 2009 The City of Kewaunee prepared and adopted a Waterfront Plan in 2009 and an updated plan in 2018. The plan indicated that the waterfront should be a destination that attracts both Kewaunee residents and visitors alike. The waterfront is an important part of the local “quality of place” as well as an enriching component of the visitor experience. The plan identified improvements for the Kewaunee River Harbor and Lake Michigan waterfront, as well as revitalization opportunities for the Central Business District.

Focused on strengthening the connection between the waterfront and the Central Business District, the recommendations of the plan included adopting the following:

• Consistent signage and design standards

• Enhanced pedestrian crossings and streetscaping amenities

• A continuous pedestrian pathway from Pioneer and Selner Parks to Harbor Park

• More connectivity between city-owned green spaces, as well as additional seating

• Increased recreational amenities like kayaking, sailboats, and transients boating

The 2009 Waterfront Plan also encouraged the City to continue redevelopment opportunities within waterfront and central business district.

Kewaunee Outdoor Recreation Plan (2012) The plan provides detailed descriptions of current public recreation and open spaces within the City of Kewaunee. The plan provides recommendations that guide the City of Kewaunee with acquisition, preservation, development, and improvement of recreation and open space facilities. Much of the focus is on the City’s recreational facilities over the next five years. The future goals of City of Kewaunee’s outdoor recreation activities include developing a long range strategy for acquisition and development of new parks, public trails, access, and related outdoor recreation facilities that are consistent with promoting the City.

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City of Kewaunee Updated Waterfront Plan, May 14, 2018 The Waterfront Plan has a number of recommendations related to the project site.

• Recommendation 3: Rebrand the Hamacheck/Klockner site development and surround area as “Ellis Point”. The Hamacheck/Klockner Property is 3.2 acres and currently owned by the City. It sits adjacent to city-owned 77 Ellis which houses the municipal well. It is across the street from the Lakehaven Hall event space. These properties form a strategic location and, for development purposes, could be rebranded and actively marketed as Ellis Point. Ellis Point benefits from its spectacular views of the harbor, Lake Michigan, the Old Coast Guard Station, and the Lighthouse, and its proximity to existing civic buildings, retail, infrastructure, and boardwalk. The surveys and visioning workshop called for this area to become a pedestrian-friendly mixed-use district blending retail, residential, public amenities, and open space. There is a strong potential for adaptive reuse of the city garage located near the city well house. The “yellow” building behind Lakehaven Hall could become a community signature and replicated elsewhere in the community. With careful programming, location, and design, Ellis Point could be transformed into a civic core that addresses the community’s needs.

• Recommendation 4: Support mixed-use development of Ellis Point which may include lodging. A strong community core requires people. Ellis Point could provide temporary and permanent lodging for visitors and second home owners in order to support a wide range of activities….

• Recommendation 5: Repurpose 77 Ellis Street for private hospitality business Destination Food and Beverage Experience: The surveys and visioning workshop identified a need for more dining options and perhaps one that could serve as a destination for visitors. The City should consider preparing the old city garage, which is located at 77 Ellis Street, for redevelopment as a restaurant, brew pub, distillery, and/or other destination food and drink experience. This is a strategic location that makes a significant contribution to the rest of the Ellis Point development, Lakehaven Hall, and the downtown.

Tax Incremental Plan, Tax Incremental District #3, May 2020 The City created Tax Incremental District #3 (TID#3) as a Mixed-Use District to foster the development and/or redevelopment of strategic sites in the Kewaunee. The City expects to implement a number of public project improvements in conjunction with other public infrastructure development opportunities in support of private development opportunities on vacant parcels within TID#3’s boundary. The City has listed the Project Site as a qualifying site and eligible for TID funding as Developer Assistance. The City is open to amending TID#3 to allow for alternative uses.

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City Expectations The City desires to see the City parcel redeveloped in a manner, that at a minimum:

1) Redevelops the former Hamacheck/Klockner Property as mixed use commercial development that may include, but not limited to, hotel, retail, restaurant, and/or ancillary residential uses as appropriate.

2) Supports the health and vibrance of the downtown.

3) Considers the surrounding uses and fits within the architectural nature of the existing structures.

4) Ties into existing and proposed pedestrian connections as appropriate.

The City is open to the developer using private sites adjacent to the City controlled sites to meet support the project as appropriate, so long as the developer controls those sites, and they are integrated into the master concept. Finally, the City is open to vacating public rights-of-way as long as overall traffic capacity is not impacted.

Tax Increment Financing Understanding that projects on occasion need public support, the City is open to using Tax Increment Financing via the recently created mixed use TID#3 and/or working to secure other public funding sources as appropriate and deemed necessary to assist with a project that meets the City’s goals and objectives.

Selection of Respondents to Receive a Request for Proposals This RFQ process is intended to give the City the opportunity to develop a short list of respondents who will be invited to respond to a Request for Proposals to be issued by the City for selection of a developer for the Site. Responses to this RFQ are required in order to be considered for invitation to the future RFP. The City reserves the right to contact respondents for clarification or additional information.

Schedule The following is a list of dates for certain activities related to the RFQ process:

Release of RFQ……………………………………………………...……... October 15, 2021 Deadline for Initial Respondents to submit RFQ response………….…. January 28, 2022 Initial review by The Committee of the Whole ……………………………February 28, 2022

RFQ Location This RFQ is posted on the City of Kewaunee’s website. The address is:

https://www.cityofkewaunee.org/

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Contact Regarding Questions The single point of contact listed below may be contacted to discuss this RFQ.

Name: Fred Schnook Title: City Administrator Phone: (920) 388-5000 Email: fschnook@cityofkewaunee.org

Presentations, Questions, and Iterative Development No contract, development agreement, or other award will be made as a result of this RFQ. The City’s objective in this process is to better understand the interests, abilities, and constraints of potential respondents to a future RFP, and to better understand the information that potential respondents will need in order to provide high-quality proposals. Therefore, informal, iterative communication between potential respondents and the City will be permitted to the extent that the volume of requests is reasonable and manageable. Formal written responses by any interested respondent are strongly encouraged, but allowed communication is not limited to that channel. Additionally, the opportunity for one-on-one meetings to ask preliminary questions and to tour the sites will be made available as requested and as time permits.

Ownership of Submittals Submittals shall become the property of the City and shall not be returned to the respondents. By submitting, the respondent agrees that the City may copy the submittal for purposes of facilitating the City’s evaluation.

Amendments to the RFQ The City reserves the right to amend this RFQ, including dates, at any time. In the event it becomes necessary to amend, alter, or delete any part of the RFQ, changes to the RFQ will be posted on the City’s website. It is the Respondent’s responsibility to be aware of amendments that are posted on the website. The address is:

https://www.cityofkewaunee.org/

Public View of RFQs To the extent permitted by law, it is the intention of the City to withhold the contents of the RFQ from public view until such times as competitive reasons no longer require non-disclosure, in the opinion of the City. At that time, all submittals will be made available in accordance with the Wisconsin Public Records Law. It is intended that submittals will be withheld until after the RFP process has been completed. The RFP process will follow this RFQ process.

Incurred Costs The City is not responsible for any costs incurred by the Respondent in the preparation of the response to this RFQ.

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Information Requested in this RFQ Provide all information identified below in an organized and precise manner.

Development Team A. Brief description of key project team members backgrounds and history B. Identify the legal name of the Respondent and affiliates who would become directly responsible for the various aspects of a proposed development C. Describe the proposed organizational structure for the project team, their roles, reporting responsibilities, and team interface with the City D. Please include in any written communications a contact person for the response, including name, address, phone number, and email

Experience A. Demonstrate the team’s experience in urban design, site planning, and building design B. Demonstrate the team’s experience in place making and community engagement to developing and refine a final product that is embraced and supported by the community

C. Demonstrate the team’s experience with public/private partnerships; include brief examples that list project size in total land and building area, project scope, project location, and development value

D. Discuss work experience in the local market, the State of Wisconsin, State of Minnesota, and/or the Midwest

E. Include a list of contacts from a minimum of three (3) similar redevelopment projects that provide evidence of the Respondent’s ability to plan and complete this project

Financial Capability A. Provide evidence that the proposed venture has the financial stability and capability to undertake the project B. To the extent possible, the development venture should provide the financing approach(s) it wishes to use and the financial role(s), if any, it expects the City to have

C. Describe the team’s experience in structuring and financing public/private development projects

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Conceptual Proposal A. Provide conceptual site layout showing proposed building locations and percent of uses B. Show estimated heights of buildings C. Show parking locations and total number of parking by type; proposed public parking and parking in support of the new development D. Show the vacation or relocation of any impacted City right-of-way if needed to support the project

Other A. Provide any other information that will help the City understand the capabilities, advantages, and limitations of respondents, including financial, technical, and administrative dimensions

B. Include information about what kind(s) of arrangements may be most attractive and any potential barriers, and how those might be mitigated

C. Respondents may submit any other information that is not described in this RFQ that would be beneficial to the City.

D. If, in the Respondent’s opinion, the City has overlooked anything material or relevant, such item(s) may be brought to the City’s attention and be included in the

RFQ.

Submission of Qualifications Responses shall be submitted in complete original form. Submittals shall be sealed and marked “Downtown Redevelopment RFQ.” Respondents shall submit ten (10) stapled copies of their RFQ in paper form and one (1) in an electronic format via email.

To be considered for the first round of reviews, submittals must be received no later than 4:30 p.m., January 28, 2022 to:

RE: Kewaunee Downtown Property Redevelopment Name: Jason Jelinek Title: Mayor Phone: (920) 388-5000 Email: JJelinek@cityofkewaunee.org