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Davenport City staff proposes RFP to attract restaurant tenant for former diner at Freight House
Summary
City staff reported on a commercial brokerrecommendation to keep the former diner as one unit and issue an RFP targeting established restaurants, noting major repair needs including $45,000 in flooring work and elevator and tuckpointing costs.
City staff reported that a commercial broker recommended keeping the former diner at the Freight House as a single rental unit and issuing a request for proposals (RFP) aimed at established restaurants.
The staff member who presented the item said the broker(identified in the meeting only as a staff member) told the group "it's obviously a really great space as far as, you know, size, location." The presenter said the brokeradvised the city to keep first and second floors together because of elevator access and the lack of a first-floor restroom, and to seek a tenant that could absorb build-out costs.
Why it matters: the Freight House space sits in a high-visibility downtown location, and the city's choice of leasing strategy will affect downtown foot traffic, tenant mix and near-term capital spending.
The staff member outlined repairs and costs the city has already identified: a flooring replacement for first and second floors estimated at $45,000 based on a quote; additional work on the elevator, interior tuckpointing on a brick wall, stair repairs and other refurbishment needs. The presenter also said the city has incurred cleanup costs (including a deep clean of the kitchen and a door rekey) and staff labor to prepare the unit.
The broker suggested the city consider an RFP targeted to known restaurant operators from the local region and larger nearby markets (Iowa City, Des Moines and possibly Chicago) rather than a general retail solicitation. The broker also proposed that, given the unique interior configuration, the Farmers Market might be a potential user if the city chose to knock out a wall and create more of an all-indoor market adjacent to existing tenants such as Antonella's and the brewery.
Commissioners and participants discussed options for how much work the city should complete before issuing an RFP. One participant asked whether the city should defer floor replacement so a successful proposer could specify finishes; another suggested removing existing floor coverings and leaving a subfloor so a tenant could perform their chosen build-out or offer to pay for the finish as part of a lease negotiation. A presenter summarized standard procurement practice: issue an RFI or request for qualifications first to collect market input, host an industry day if needed, then issue a final RFP with a typical 30-day response window.
The group also discussed engaging commercial brokers or developers to run the outreach and whether the city should expect trade-offs such as a lower rent in exchange for a tenant-funded remodel. One participant noted a procurement constraint raised at the meeting: "if you have to make a purchase over $50,000, you've gotta go get it approved by city council," underscoring that larger up-front capital outlays could require council action.
Next steps identified during the meeting: staff will gather more firm quotes (Eric Sands was noted as having gathered pricing but unavailable at the time), consider issuing an RFI/request for qualifications to potential brokers or developers, and return with a recommended outreach approach and cost estimates for council review.
No formal motion or vote on a leasing strategy or capital expenditure took place; the discussion produced direction for staff to solicit proposals and refine cost estimates.
