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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />NOVEMBER 20, 2018 <br />TITLE: <br />AUTHORIZATION TO NEGOTIATE AN <br />EXCLUSIVE NEGOTIATING AGREEMENT <br />WITH CARIBOU INDUSTRIES FOR <br />RENOVATION AND REUSE OF THE Y.M.C.A. <br />PROPERTY LOCATED AT 203-205 W. CIVIC <br />CENTER DRIVE <br />(STRATEGIC PLAN NO. 3,5A) <br />t <br />CI MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1� Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager to negotiate an Exclusive Negotiating Agreement (ENA) for the reuse <br />of the YMCA property with Caribou Industries, subject to non -substantive changes approved by <br />the City Manager and City Attorney. <br />DISCUSSION <br />The YMCA building located at 203-205 West Civic Center Drive (Site) was purchased by the City <br />in 1992. The building has been vacant since that time and has been in serious disrepair due to <br />age and vandalism. Recent efforts have been taken to remediate several outstanding issues <br />such as asbestos clean-up and the placement of security cameras at the site. Over $1 million <br />dollars in funding was used to remediate these issues. <br />Over the years, the City has made several attempts to market/entertain proposals for the site but <br />the substantial City subsidy required by developers and end users has been an issue. To bring <br />the building up to current City codes, there would be an anticipated investment of up to $5 million <br />dollars for seismic retrofit, fire suppression, electrical/plumbing to current code, and other <br />structural improvements. In November 2015, the City Council approved an option agreement for <br />the sale and renovation of the YMCA with St. Joseph's Health System for the development of a <br />fitness center/community venue for the underserved population living near the downtown. <br />Unfortunately, citing ever-changing dynamics of health and fitness businesses in downtown and <br />an unforeseen project cost estimate over $5 million higher than anticipated, St. Joseph's Health <br />System requested to terminate the Agreement to purchase and rehabilitate the YMCA in <br />December 2017. <br />19E-1 <br />