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Home My WebLink AboutCouncil Packet - 4/23/2012BUILDING & GROUNDS COMMITTEE April 23, 2011 4:55 p.m. Council Chambers Roll Call: Members: Chairperson Harold Getty Ron Welper Bob Greenwood Approval of Agenda, as proposed. NEW BUSINESS 1. Authorization of Request by Ryan Madison to lease city owned vacant property atthe corner of Broadway and Conger Streets for $1.00 per year — Submitted by Noel Anderson, Community Planning & Development Director. ADJOURNMENT Suzy Schares City Clerk MEMBERS # of Attachments: DAVID JONES Ward l CAROLYN COLE Ward 2 HAROLD GETTY Ward 3 QUENTIN HART Ward 4 RON WELPER Ward 5 CITY OF WATERLOO, IOWA COMMUNITY PLANNING AND DEVELOPMENT 715 Mulberry Street • Waterloo, Iowa 50703-5783 • (319) 291-4366 Fax (319) 291-4262 NOEL C. ANDERSON, Community Planning & Development Director CITY OF WATERLOO Mayor BUCK Building and Grounds Communication CLARK Building and Grounds Meeting: April 23, 2012 Prepared: April 20, 2012 COUNCIL Dept. Head Signature: Noel Anderson Community Planning & Development Director SUBJECT: Request to lease vacant city owned lot at the corner of Broadway and Conger Streets for $1.00 a year. Submitted by: Noel Anderson, Community Planning & Development Director Recommended Committee Action: To review the request lease city owned property and make recommendation to staff and City Council Summary Statement: Staff has received a request from Ryan Madison to lease City owned property located at the southeast corner of Broadway and Conger Streets. It is Mr. Madison intentions to use the site to operate a vendor's trailer where he will sell ice cream. He is proposing to lease the property at one-year increments for $1.00 per year. The property was acquired in 1991 and has been vacant since. It is not immediately known as to the circumstances related to the acquisition of this property. The lot dimensions are 49' x 130' or 6,370 sq ft. The property is zoned C-1 Commercial Zoning District which would allow for the requested use of selling ice BOB cream. GREENWOOD At -Large STEVE SCHMITT At -Large Expenditure Required N/A Source of Funds N/A Policy Issue Property lease Alternative N/A Background Information: CITY WEBSITE: wwwci.waterloo.ia.us WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer Printable Map Output Page 1 of 1 Black Hawk County Parcel Map Parcel ID: 8913-23-204-001 Deed Holder: CITY OF WATERLOO Legal: RICKER AND BRATNOBER LAND CO ADD LOT 6 BLK 6 MegI... FeaMas M1wVlml alryert firedept parks_ parks =Wlq Railroads row,unlp. Section. •Section. —I Parcels , wWdaarweYEl Township /.`'1 Gra Lime railroad Nm roeddim wammamu_ W bums_ Mrl 1 notes Mace lmwCo. yS{ ieE 5t.t ¢ a - ij t tr Aa ' t L< G I ti e,e� +trn5 F b § t a i r'h 6' "�� ( . Y r .z i(at"rl° qi a s` { r p ; qT+ r i S Logan _•: J Y k M 1t yv 3 % + 4i yy .. yq/r'��"• ITS.•_ 4�n; � a'akrd alkh A, 1• t e, r• R yt rk�/,Y § s y�{�et• �Y I� An� '7 � �tl lr .'.tip S-C....-' \ t xs P r'l" t SY a pp d t •w.lrp.,.s r c �t s y R Its"Fji i P £R Y egyKlweigfia( ••" t Y iS'"�'"x� � l}y1 I tSS7tl k,c. ..' Black Hawk County, lowa Map Disclaimer This map does not represent a survey. No liability is assumed for the 316 East 5th Street ccuracy of the data delineated herein, either expressed or implied by Black Hawk County, Waterloo, Iowa 50703-4774 he Black Hawk County Assessor or their employees. This map is compiled from official Phone: (319) 833-3002 records, including plats, surveys, recorded deeds, and contracts, and only contains Fax: (319) 833-3070 information required for local government purposes. See the recorded documents for more E-mail: auditor •a coblack-ha wk.ia.us.or• etailed legal information. http://www2.co.black-hawkaa.us/servlet/com.esri.esrimap, Esrimap?ServiceName=bhov&., . 4/20/2012 Black Hawk County Detailed Parcel Report Page 1 of 2 BLACK HAWK COUNTY REAL ESTATE ASSESSMENT AND TAX INFORMATION Parcel ID 8913-23-204-001 Deed Holder ITY OF WATERLOO PDF iivlap Area No. 13 E WATERLOO-C 1 Property Address 00000 00000-0000 Contract Buyer Tax Mail to Address CITY OF WATERLOO 715 MULBERRY ST CITY OWNED WATERLOO, IA 50703-0000 Current Recorded Transfer Date Drawn Date Filed Recorded Document 1/28/1991 11/28/1991 CLD 617588 Type D ASSESSED VALUES/CREDITS Year Class 12012 Proposed Values Subject to Board of Review Action E 100% alue Land Dwelling Building M/E Total [Acres 12,010 0 f0 12,010 0 axable alue Land Dwelling Building M/E Total 12,010 10 0 j0 112,010 Year Class 2011 1E 100% alue Land Dwelling Building M/E Total (Acres 12,010 0 0 (0 12,010 0 axable alue Land Dwelling Buildings; M/E Total 12,010 0 0 112,010 Year Class 2010 1100% Value 13,090 jTaxable Land alue 13,090 Land 1E Dwelling, 0 Building 0 M/E 10 Total Acres 13,090 (0 ;Dwelling 0 Building, b M/E 1Total 10 113,090 Year Class 2009 1100%0 slue axable slue Land Dwelling , Building 13,090 10 p and 13,090 10 Dwelling Building 0 M/E 'Total 0 13,090 Acres 0 M/E Total 113,090 TAX INFORMATION ASSESSMENT YEAR 2010 PAYABLE 2011/2012 ax District orp;_ Nocorp 940001 - WATERLOO Gross Value Taxable Value 0 0 Homestead Credit Corp , $0.00 Nocorp, b l0 Military Exemption 0 Disabled Veteran Credit $0.00 Levy Rate Gross Tax 2.69322 $0.00 Property Tax Relief jCred it $0.00 Net Tax $0.00 $o.00 1 Credit $0.00 Family Farm Credit $0.00 http://www2. co.black-hawk. ia.us/website/bhmap/bhRepDet.asp?apn=891323204001 4/20/2012 Black Hawk County Detailed Parcel Report Page 2 of 2 LEGAL RICKER AND BRATNOBER LAND CO ADD LOT 6 BLK 6 LAND Basis Front Rear Side 1' Side 2 �0�370 Front Foot 130 130 0.146 'Totals; 6370 0.146 http://www2.co.black-hawk.ia.us/website/bhmap/bhRepDet. asp?apn=891323204001 4/20/2012 i To: City Waterloo From: Ryan D. Madison Date March 23, 2012 Dear City of Waterloo I've been scouting for the possibility of locating Arctic Snow to a visible location for the ability of serving potential consumers. As a small business owner who has lived in this city for over sixteen years, I've witnessed the growth of the businesses as well as this city's potential, and I believe the time has come where I must make a bold move, in this case a literal one, in contributing positive growth to the Northeast side of Waterloo or that opportunity face being squeezed out of this area. I do understand that what I am asking is a serious undertaking for this city. I also understand the risks and the expenses involved, and given the potential make of this area, you may be hesitant to make this gamble. However I think you will be excited about the new commercial lease I am proposing. Not only will this opportunity allow you to expand positive commercial growth in an area that much needs it, but it will also provide jobs and service to our community that has never had this type of chance. As per our conversation last week, 'took the liberty to draw up a proposal that is adequate for this area and will bring some renew excitement to the Riverfront community. Sincerely, Ryan D. Madison 2 Table Of Content Executive Summary 4 Opportunities 5 Company Description 6 Location Analysis 7 Plot 8 Land Detail and improvements 9 Concession Stand 10 Concession Decal 11 3 Executive Summary The Objective... Develop a new experience and business opportunity, with high profitability. ➢ Need #1: Location in high traffic area, with the potential of positive growth. ➢ Need#2: Easily accessible location with room for growth. ➢ Need#3: 1 year lease with the exclusive option to purchase if successful. The Opportunity... To become a respected brand, and favorable corporate citizen we need location that carry and compliment the nostalgia of our company. ➢ Goal#1: To locate our company within the corridor of the Riverfront community. ➢ Goal#2: To increase client base by locating in a visible high traffic area. ➢ Goal#3: To expand the business by 25% by year 3and by 50% by year 5. The Solution... A new commercial lease space is required in order to start our new venture. ➢ Recommendation#1: Examine space at Parcel 1D 8913-23-204-001. > Recommendation#2: Respond to initial lease by option by April l4, 2012. ➢ Complete lease negotiation and signing by April 31,2012 4 Opportunity The opportunities created by this location to the proposed commercial lease will allow Arctic Snow in a positive direction and become a staple of the community. Opportunity# 1 High Traffic area The new location will help establish our company branding, as thousands of commuters traveling on Broadway and Conger are able to see our shave ice stand and its signs from the roadway. Opportuniy#2 Provide a strong Customer base With this location, we will hire 4 employees. This coupled with high visibility will lead to more sales and therefore, higher profits. Even at a low average of 2200 sales per month for average price shaved ice ($2.00), this results in profit of $21,000.00 per year for Arctic Snow. In addition, we can expect to increase profit by 25% by the following year as well as employment. Opportunity #3 Increase Future growing Opportunity High visibility coupled with high sales allows the company to consider and afford opening new location in different area or diversifying our company's structure and business model. 5 Company Description Overview The Shave Ice Beverage Segment contributed $717.7 million to a $2.4 billion ice cream industry in 1995. This segment provides low to middle income consumers who wanted to have a high quality dessert for a moderate price. Arctic Snow will provide consumers with 24 traditional flavors ranging from Banana, Grape, Orange, and Tigers Blood with additional four revolving flavors that customer will get a chance to vote in or out. In our first year we are estimating on a worst case scenario of selling 80 units per day and on good case 200 units per day. The shave ice business is not new to the Waterloo area. Competitors in this type of business sell sno-cones or slushy and do not focus on shave ice market. One of our major competitors is "Tropical Sno" located on Main Street in Cedar Falls, Iowa. Tropical Sno sells an identical product through a small shed operated by mainly by college students. There are two major differences between Tropical Sno & Arctic Snow one is the flavor concentrates. Tropical Sno originate from a powder format and ours is already in a liquid form which is then combine with our simple syrup base. In our opinion, you will receive a higher quality product and richer tasting experience when consuming one of our shave ices. The second difference is we provide the customer with additional optional toppings such as fruit topping, cinnamon & sugar, whip cream, creamers and much more this gives the consumer the ability to more creative when designing their desert. Our company has nostalgia feelings of the 1960's, when kids were kids. A time where you could turn on the radio and hear Chubby Checker sing that hit phenomenon that took America by storm "The Twist". The location of our business is ultimately important and set the precedent for maintain that environment that we are trying to create. We feel that the location on Broadway and Conger will provide our company with the good footfall we need to thrive. 6 Location Analysis The Cost of doing business The Northeast Side of Waterloo has the lowest household median income and median housing value. Northeast side residents have income on average of 37% less and have homes valued 28% less than the state. The accessibility of the Conger and Broadway area is what make this location attractive it is an easy connection to two interstate highways with high traffic levels. Due to the location direct connection to several city sport facilities this location best suites our business needs but also provides direct relationship with our target market. 7 8 Land Detail and improvements Plot Parcel ID 8913-23-204-001 Size 130' X 49' Total sq 6370 Foundation type brick paver Foundation 8'x10'x 2" Walkway 15'x 2'x 2" Electrical Current 40 amp Updated 60 amp Aesthetics Edger Natural stone Indigenous flowers and shrubbery 9 10 11 To: City Waterloo From: Ryan D. Madison Date March 23, 2012 Dear City of Waterloo I've been scouting for the possibility of locating Arctic Snow to a visible location for the ability of serving potential consumers. As a small business owner who has lived in this city for over sixteen years, I've witnessed the growth of the businesses as well as this city's potential, and I believe the time has come where I must make a bold move, in this case a literal one, in contributing positive growth to the Northeast side of Waterloo or that opportunity face being squeezed out of this area. I do understand that what I am asking is a serious undertaking for this city. I also understand the risks and the expenses involved, and given the potential make of this area, you may be hesitant to make this gamble. However I think you will be excited about the new commercial lease I am proposing. Not only will this opportunity allow you to expand positive commercial growth in an area that much needs it, but it will also provide jobs and service to our community that has never had this type of chance. As per our conversation last week, I took the liberty to draw up a proposal that is adequate for this area and will bring some renew excitement to the Riverfront community. Sincerely, Ryan D. Madison 2 Table Of Content Executive Summary 4 Opportunities 5 Company Description 6 Location Analysis 7 Plot 8 Land Detail and improvements 9 Concession Stand 10 Concession Decal 11 3 Executive Summary The Objective... Develop a new experience and business opportunity, with high profitability. > Need #1: Location in high traffic area, with the potential of positive growth. > Need#2: Easily accessible location with room for growth. > Need#3: 1 year lease with the exclusive option to purchase if successful. The Opportunity... To become a respected brand, and favorable corporate citizen we need location that carry and compliment the nostalgia of our company. > Goal#1: To locate our company within the corridor of the Riverfront community. > Goal#2: To increase client base by locating in a visible high traffic area. > Goal#3: To expand the business by 25% by year 3and by 50% by year 5. The Solution... A new commercial lease space is required in order to start our new venture. > Recommendation#1: Examine space at Parcel ID 8913-23-204-001. > Recommendation#2: Respond to initial lease by option by Apri114, 2012. > Complete lease negotiation and signing by April 31,2012 4 Opportunity The opportunities created by this location to the proposed commercial lease will allow Arctic Snow in a positive direction and become a staple of the community. Opportunity#1 High Traffic area The new location will help establish our company branding, as thousands of commuters traveling on Broadway and Conger are able to see our shave ice stand and its signs from the roadway. Opportuniy#2 Provide a strong Customer base With this location, we will hire 4 employees. This coupled with high visibility will lead to more sales and therefore, higher profits. Even at a low average of 2200 sales per month for average price shaved ice ($2.00), this results in profit of $21,000.00 per year for Arctic Snow. In addition, we can expect to increase profit by 25% by the following year as well as employment. Opportunity #3 Increase Future growing Opportunity High visibility coupled with high sales allows the company to consider and afford opening new location in different area or diversifying our company's structure and business model. 5 Company Description Overview The Shave Ice Beverage Segment contributed $717.7 million to a $2.4 billion ice cream industry in 1995. This segment provides low to middle income consumers who wanted to have a high quality dessert for a moderate price. Arctic Snow will provide consumers with 24 traditional flavors ranging from Banana, Grape, Orange, and Tigers Blood with additional four revolving flavors that customer will get a chance to vote in or out. In our first year we are estimating on a worst case scenario of selling 80 units per day and on good case 200 units per day. The shave ice business is not new to the Waterloo area. Competitors in this type of business sell sno-cones or slushy and do not focus on shave ice market. One of our major competitors is "Tropical Sno" located on Main Street in Cedar Falls, Iowa. Tropical Sno sells an identical product through a small shed operated by mainly by college students. There are two major differences between Tropical Sno & Arctic Snow one is the flavor concentrates. Tropical Sno originate from a powder format and ours is already in a liquid form which is then combine with our simple syrup base. In our opinion, you will receive a higher quality product and richer tasting experience when consuming one of our shave ices. The second difference is we provide the customer with additional optional toppings such as fruit topping, cinnamon & sugar, whip cream, creamers and much more this gives the consumer the ability to more creative when designing their desert. Our company has nostalgia feelings of the 1960's, when kids were kids. A time where you could turn on the radio and hear Chubby Checker sing that hit phenomenon that took America by storm "The Twist". The location of our business is ultimately important and set the precedent for maintain that environment that we are trying to create. We feel that the location on Broadway and Conger will provide our company with the good footfall we need to thrive. 6 Location Analysis The Cost of doing business The Northeast Side of Waterloo has the lowest household median income and median housing value. Northeast side residents have income on average of 37% less and have homes valued 28% less than the state. The accessibility of the Conger and Broadway area is what make this location attractive it is an easy connection to two interstate highways with high traffic levels. Due to the location direct connection to several city sport facilities this location best suites our business needs but also provides direct relationship with our target market. 7 8 Land Detail and improvements Plot Parcel ID 8913-23-204-001 Size 130' X 49' Total sq 6370 Foundation type brick paver Foundation 8'x10'x 2" Walkway 15'x 2'x 2" Electrical Current 40 amp Updated 60 amp Aesthetics Edger Natural stone Indigenous flowers and shrubbery 9 10 11 MARIA ARMSTRONG From: CHRIS WESTERN Sent: Wednesday, April 18, 2012 10:03 AM To: MARIA ARMSTRONG Subject: Building And Grounds The request by Ryan Madison to lease city owned vacant property at the corner of Broadway and Conger Streets for $1 per year. Chris W. Western Planner II/Brownfield Coordinator City of Waterloo Office 319-291-4366 Fax 319-291-4262 4/18/2012 MARIA ARMSTRONG From: CHRIS WESTERN Sent: Wednesday, April 18, 2012 10:00 AM To: MARIA ARMSTRONG Subject: Building And Grounds The request by Ryan Madison to lease city owned vacant property for $1 per year. Chris W. Western Planner II/Brownfield Coordinator City of Waterloo Office 319-291-4366 Fax 319-291-4262 4/18/2012