CBRE: Strong market interest for Klein’s Lot and 415 West Washington; council to receive more details before September resolutions

City staff and CBRE presented summary results of a competitive solicitation for two city parcels — the downtown Klein’s Lot (six parcels managed as surface parking by the DDA) and 415 West Washington (a PUD site on the Old West Side) — and told the work session the administration will return in September with resolutions to authorize final negotiations.

Milton Dehoney, the city administrator, said the presentation was informational and the administration was not asking the council to decide tonight. "We're not asking you to make any decisions tonight," he said. CBRE representatives said they marketed the properties broadly (to roughly 33,000 recipients) and received nine offers for Klein’s Lot and five for 415 West Washington; the broker team shortlisted four qualified offers for Klein’s Lot and three for 415 West Washington.

Klein’s Lot (marketed without a fixed entitlement): CBRE summarized four shortlisted offers after best‑and‑final rounds. Key representative figures reported to council (each offer anonymous in the staff deck): • Offer A: $12,000,000 purchase price; $325,000 earnest; 60‑day due diligence; estimated city approval window 605 days; 45‑day closing after approvals; proposed ~272 multifamily units, ~12,000 sq ft retail, ~200 parking stalls (plus discussion of 125 public stalls). Contingency: Brownfield/property tax abatement; sustainability: moderate; local experience: yes. • Offer B: $15,000,000 purchase price; $1,250,000 earnest; broad unit range of 280–340 units; sustainability: high; no local experience claimed; no contingencies listed. • Offer C: $15,000,000 purchase price; $375,000 earnest; longer due diligence and approval windows; proposed ~350 units and ~7,500 sq ft retail; structured parking; no contingencies; local experience present. • Offer D: Per‑door pricing structure (example: roughly $31,500 per door), a maximum price example of about $17,000,451 if fully entitled to 554 units; two‑phase buildout (south tower then north); high sustainability; local experience present.

CBRE told council that sustainability expectations for Klein’s Lot include all‑electric baseline; proposals rated “moderate” met that baseline and “high” meant additional features (e.g., solar, green roofs). Council members asked for more detail on unit counts, bedroom/bath mixes, parking ratios and projected ground‑floor retail types; CBRE said more granular pro formas, unit mixes and sustainability specifics will be provided as part of next steps.

415 West Washington (site with an existing PUD): CBRE noted that this parcel has a pre‑approved PUD concept (not a final site plan) and that city expectations in the PUD include environmental remediation of brownfields, a segment of the Tree Line Trail, open space, at least 15% affordable units and preservation of the chimney swift habitat.

Three offers for 415 West Washington, summarized anonymously: • Offer A: $1,000,000 purchase price; $125,000 earnest; due diligence 365 days; government approvals 540 days; contingency: low‑income housing tax credit financing (100% affordable, 30%–80% AMI); sustainability: moderate; local experience: yes. • Offer B: $1,700,000 purchase price; $60,000 earnest; shorter total timeline (~630 days); no contingencies; proposes 20% of units at 60% AMI with the remainder market rate. • Offer C: $2,000,000 purchase price; $100,000 earnest; two‑phase mixed‑income project (net‑zero‑ready design) and contingencies asking for city deliveries including environmental remediation, floodplain mitigation and tree‑line construction; sustainability: high; local experience: no.

Council asked specific questions about floodplain constraints (public commenter Tom Solberg warned against building residential development in the floodplain and noted a portion of the site lies in the floodway), historic‑district review (Solberg and others noted the PUD is a concept approval and that a formal site plan must go to the Historic District Commission), brownfield requests (cited primarily by applicants proposing subterranean parking), and public parking retention. CBRE and staff said all such matters — floodplain remediation, brownfield cleanup, historic district review, parking and affordable‑housing commitments — will be part of the due‑diligence and entitlement process and that more detailed pro formas and design materials will be provided to council in advance of any September resolutions.

Nut graf: The market produced multiple competitive offers for both sites. The administration and CBRE emphasized that tonight’s presentation was a narrowed, anonymous summary and that staff will funnel council questions through the administrator’s office; the administration expects to return in September seeking authorization to enter final negotiations and to present more detailed financial and design information.

Ending: Staff and CBRE asked council members to submit written questions through the administrator’s office; CBRE said it could provide more detailed unit mixes, bed/bath counts, sustainability specifics and projected retail types within a short turn‑around. No purchase decision or final negotiations were authorized at the July 28 work session.