City Council

River Heights City COUNCIL MEETING AGENDA Tuesday, Februarj' 18,2020 Notice is hereby given that the River Heights City Council will hold its regular council meeting beginning at 6:30 p.m. in the River Heights City Office Building at 520 S 500 E. Opening Remarks(Clausen) and Pledge of Allegiance (Milbank) Adoption of Previous Minutes and Agenda Reports and Approval ofPayments(Mayor, Council, Staff) Public Comment Review REP for Old Church Submitted by Tony Johnson Adjourn Posted this 13^ day of February' 2020 Wendy-Wllker, Treasurer Attachments tor this meeting and previous meeting minutes can be found on the State's Public Notice Website (pmn.utah.gov). In compliance with the American Disabilities Act. individuals needing special accommodations (including auxiliarj communicative aids and services) during this meeting should notify Sheila Lind,(435)770-2061 at least 24 hours before the meeting. 520 South 500 East River Heights, Utah 84321 Phone & Fax (435) 752-2646  River Heights City 3 Council Meeting 4 5 Februaiy 18, 2020 6 7 8 Present: Mayor Todd Rasmussen 9 Council members: Doug Clausen 10 Sharlie Gallup 11 Chris Milbank 12 Elaine Thatcher 13 Blake Wright 14 15 Public Works Director Clayten Nelson 16 Treasurer Wendy Wilker 17 18 Excused: Recorder Sheila Lind 19 Finance Director Cliff Grover 20 21 Others Present: Joe Ames 22 Cindy Schaub Heather Lehnig 25 26 The following motions were made during the meeting: 27 28 Motion #1 29 Councilmember Thatcher moved to "adopt the minutes of the council meeting of February 4, 30 2020 and the evening's agenda." Councilmember Milbank seconded the motion, which passed with 31 Clausen, Gallup, Milbank, Thatcher, and Wright in favor. No one opposed. 32 33 Motion #2 34 Councilmember Clausen moved to "pay the bills as listed." Councilmember Thatcher 35 seconded the motion, which passed with Clausen, Gallup, Milbank, Thatcher and Wright in favor. No 36 one opposed. 37 38 Proceedings ofthe Meeting: 39 40 The River Heights City Council met at 6:30 p.m. in the Ervin R. Crosbie Council Chambers in 41 the River Heights City Building on Tuesday, February 18, 2020 for their regular council meeting. In 42 the absence of Recorder Lind, Joe Ames took the minutes. 43 Opening Remarks and Pledge of Allegiance: Councilmember Clausen opened the meeting with 44 a thought and Councilmember Milbank led the group in the Pledge of Allegiance. Adoption ofPrevious Minutes and Agenda: Minutes for the February 4, 2020 meeting were reviewed. I IlflifehtO HilOGtillgl 520 South 500 East River Heights, Utah 84321 Phone & Fax (435)752-2646 47 Councilmember Thatcher moved to "adopt the minutes ofthe council meeting of 48 February 4,2020 and the evening's agenda." Councilmember Milbank seconded the motion, 49 which passed with Clausen, Gallup, Milbank,Thatcher, and Wright in favor. No one opposed. 50 51 Reports and Approval ofPayments(Mayor. Council. Staff): 52 Public Works Director Nelson 53 • Before the meeting some discussion was held regarding a city truck that has a diesel storage 54 tank in the back. 55 • 400 South update- City Engineer Craig Rasmussen had a death in the family so he has been 56 out, but the project will be posted in a week or so. 57 • Years ago a bid was put in for a screen and projector in the city building to show what was 58 being looked at by the council, but at that time it was too expensive to proceed. PWD Nelson 59 ■ had Lynn's Audio and Video provide a bid to install a 75 inch TV on the wall with the 60 associated equipment to connect wirelessly, plus two other units that could be connected by 61 wire. The bid which includes install and equipment is $2,638.98. Previously was over $7,000. 62 FD Grover has another vendor he'd like to get a quote from. Mayor Rasmussen asked about a 63 projector instead of a TV.PWD Nelson shared that there are lighting issues with a projector, 64 where with a TV you don't need to tum the lights off. Also, with a TV there is more ease of 65 access and less time to connect. 66 67 Finance Director Grover 68 • Question from the last council meeting about the reason why the sewer fund was under budget 69 on expenditures - we have about $238,000 unspent on capital projects, which is why it is low. 70 There are no anomalies, other than planning and zoning is close to budget because ofa pass- 71 through expense. Councilmember Wright asked when the Dan Hogan item is supposed to be 72 paid. PWD Nelson talked to Mr. Hogan on the phone and he indicated he would submit a 73 check. The city has already paid the bill so he needs to pay. A check has not yet been received. 74 The city is waiting to receive the funds - the council will give it one more council meeting and 75 see if it has been received. 76 77 Treasurer Wilker 78 • She presented and answered questions regarding the list of bills to be paid. 79 80 Councilmember Clausen moved to "pay the bills as listed." Councilmember Thatcher 81 seconded the motion, which passed with Clausen, Gallup, Milbank,Thatcher and Wright in 82 favor. No one opposed. 83 84 Councilmember Thatcher had nothing to report. 85 86 Councilmember Milbank had nothing to report. 87 88 Councilmember Clausen had nothing to report. 89 90 Councilmember Gallup had nothing to report. 91 92 Councilmember Wright River Heights City Council Meeting, 2/18/20  • The Planning Commission has agreed to hold meetings at 6:30 instead of7. It would be nice to have both council and planning commission meetings at the same time. Councilmember Wright 95 doesn't think there is a defined meeting time in the code like the City Council Meeting, but we 96 probably need to provide notice ofthe change publicly. When Recorder Lind gets back they 97 will review. The new start time will start in March. 98 99 Recorder Lind was absent. 100 101 Mayor Rasmussen 102 • Mayor Rasmussen brought up the status of the old church. Shared past thoughts from the 103 council. City had felt to keep the building and not demolish. Tony Johnson's proposal was to 104 renovate the building with some sort of housing/work/live space. That is what his proposal 105 request includes. Mr. Johnson's was the only proposal submitted that fit the criteria. No more 106 than 12 units. Councilmember Gallup asked about the square footage per unit. Councilmember 107 Thatcher would like to press for condos instead of apartments so that there is ownership pride 108 in property. Mr. Johnson wants to rent them. Mayor suggested reviewing line item by line item. 109 Councilmember Thatcher mentioned that 55+ type units were discussed. Property has approx 110 1.2 acres. 111 112 $200,000 was offered by Mr. Johnson for the property. He has proposed to pay for half now 113 and half later. Councilmember Wright suggested asking for the whole amount up front. Council 114 felt that asking for the whole amount has less risk for the city. City could ask for an appraisal. Councilmember Thatcher in favor of an appraisal. Resident Cindy Schaub said a commercial appraisal would be about $3000. The Tony Johnson offer is good until March 5th. 117 Councilmember Thatcher asked if anyone has a sense of whether an appraisal would come in 118 significantly higher than $200,000. Is it worth time and money to get the appraisal, vrith only 119 the one proposal? Councilmember Clausen said there will likely be some discussions about the 120 price, etc. Mayor feels if we do an appraisal it should start now. Councilmember Thatcher 121 mentioned that in the proposal it talks about the historical register. PWD Nelson wondering if 122 renegotiation, agreements and stipulations can take place later. It was answered that, yes, we 123 can. Councilmember Thatcher pointed out on the last page some items regarding museum, 124 stage or gym, which could be made available to city residents at no or reduced cost on a 125 scheduled use. Councilmember Thatcher would like to know ifthere would be handicapped 126 accessibility for all units. Developer wants to keep a community space with separate 127 community restrooms. Also wants to make the parking area and whole place look nicer in the 128 community. Proposal indicates 12 units - Mayor asked Councilmember Thatcher if she wants to 129 limit the size of the units in square feet. Councilmember Wright suggests letting the developer 130 explain his proposal in more detail. He also says there could be a zoning restriction. 131 Councilmember Wright would like to see what this building could look like, not a building 132 from Provo, as pictured in the proposal. He feels we need more information. Mayor 133 Rasmussen is wondering if 12 units is satisfactory for the city? Councilmember Clausen wants 134 to know ifthey will be sold or rented? Councilmember Milbank asked ifthe city wants to sell 135 and if it costs the city money to rent? Councilmember Clausen said it is an eyesore and we want 136 to do something with it before it continues to deteriorate. Councilmember Thatcher feels 137 homeowners would be a more desirable demographic than renters. Community sentiment will probably be mixed. It will probably end up like the old gas station where we will get more River Heights City Council Meeting, 2/18/20 139 residents coming to these discussions once there is more to talk about. Councilmember Wright 140 doesn't have a problem with 12 residential units, but wants to know what kind of units: college 141 students, over 55, what is the target market? How to deal with parking? What would the 142 neighborhood want? Mayor Rasmussen shared that this is all contingent on approval ofthe 143 project. Mayor could share that the council is concerned about a lot of things, and ask if Mr. 144 Johnson is willing to risk that? Resident Schaub asked if Mr. Johnson is looking to add on to 145 the building?(the vacant lot) Councilmember Thatcher would like to see garages and parking 146 overflow for the city. Councilmember Wright would want a stipulation that the city get parking 147 overflow for the park, such as for Apple Days. This would have to go through zoning approval. 148 Councilmember Wright mentioned that if he were the buyer he'd want confirmation that what 149 he wants to do will fly. So he should want to have more of these things nailed down. 150 Councilmember Wright and Thatcher have a list of things. Wants $200,000 up front. Mr. 151 Johnson is a busy man with a lot of projects going on. This could be under construction for a 152 long time. We ought to require a security of performance, such as we do with a subdivider or 153 developer, and include some milestone dates. This gives the city some ability to go in and wrap 154 something up if it isn't done in a timely manner. We ought to have first right to purchase the 155 property back or take it back ifthings don't work out. Councilmember Clausen also brought up 156 that if things do work out do we have the option to buy it back at some time in the future. 157 Consensus is that the city wouldn't buy back if things work out, but it may be something to 158 consider. Mayor Rasmussen feels that there needs to be a clause that if the city ever feels the 159 direction is going in a direction they don't like they can have first choice to buy it back. 160 Councilmember Wright's list also included that he likes the over 55 status. Mayor Rasmussen 161 asked how you would control demographics ofsome apartments and not for others? 162 Councilmember Wright said state law defines a family as a certain number of individuals 163 related by blood, adoption or marriage. Parking concerns - garage vs. covered/uncovered. 164 Making sure the city gets use rights to part of the parking lot. Would like to see images specific 165 to this project. Councilmember Thatcher would also like to know: Number and size of units, 166 Handicapped accessible. Public space and how it is organized - the city doesn't need a museum 167 - larger public meeting space that could be rented out would be nice. Councilmember Wright 168 feels that if we sell to Mr. Johnson we can't have all control over the public meeting space, we 169 need to give him some decision power. We also have the old school we can use for some of 170 these things. Councilmember Milbank asked ifthe city will do a counter proposal? Mayor 171 Rasmussen mentioned all ofthis needs to be in writing. Councilmember Clausen feels we need 172 to feel him out before some of these decisions can be made. We want more specificity. Mayor 173 Rasmussen could go back to him to state that the council has a lot of questions - and ask if he 174 would you like to receive a written response, or come discuss with the council in person? 175 Councilmember Clausen asked about a clause regarding "current tenants" - what does that 176 mean? Further clarification needed. Mayor Rasmussen to take these concerns to Mr. Johnson 177 and ask if he can extend the date of March 5th. Councilmember Wright asked if the financial 178 statement was required by the city. Feels we need an updated financial statement from the 179 entity purchasing the property. Councilmember Clausen feels this could be a really good thing 180 for the city to get $200,000, and get something we like. If we tear it down or rehabilitate it 181 could cost more than that. Councilmember Wright suggests telling him that the council wants 182 to work this out with him and make it work. It will have a historical preservation feel. He also 183 talked about a live/work situation where some people could have an office/living quarters in 184 their unit. Mayor Rasmussen mentioned that we can't tax some services that use a live/work River Heights City Council Meeting, 2/18/20  unit. Mayor Rasmussen will bring that up with Mr. Johnson. Councilmember Wright went back to the appraisal - if we can get something as nice as the images he sent he would be fine with 187 the $200,000. Wants to do what is right for the city, rather than worry about a completion 188 deadline. Mayor Rasmussen feels that we can forgo the estimate and stay with the $200,000, 189 since we have a lot of stipulations. Discussed closing costs: Resident Schaub feels there would 190 be under $2000 for closing costs. No realtor would need to be involved. The city's lawyer 191 could represent the city. Felt that this is a good start - council doesn't feel we need the appraisal 192 and that we are interested in making this work. Will request a follow-up proposal from Mr. 193 Johnson. 194 195 Public Comment: Resident Cindy Schaub addressed PWD Nelson asking if curbs can be 196 painted in the spring and additional signs installed that indicate no parking, and where additional 197 parking is, across the street from Ryan's Place Park. 198 The meeting adjourned at 7:42 p.m. 199 200 201 202 Joe Ames, Minute Taker 203 204 Todd A. Rasmussen, Mayor River Heights City Council Meeting, 2/18/20  River Heights City Bills To Be Paid 2/18/2020 Payee Description Admin.' P&Z Parks/Rec Pub. Safety Com. AfT. Roads Water Sewer Total 1 A-1 Automotive 2004 Chevy Truck Repairs $747.-24 $373.62 $373.62 $1,494.48 2 Bear River Health Department Water Coliform Testing $40.00 $40.00 3 Caselle, Inc., Monthly Contract Support $91.69 $91.66 $91.65 $275.00 4 Daines & Jenkins Legal Fees $985.50 $985.50 5 Discount Tire New tires for trailer $44.14 $44.14 $44.15 $132.43 6 Forsgren Associates, Inc. 400 South to 600 East, General Consultin; $130.00 $280.00 $410.00 7 Freedom Mailing Services, Inc. Bill Processing Monthly $143.14 $47.71 $47.71 $238.56 8 Heather Lehnig Minutes at P & Z $90.00 $90.00 9 Logan City Water Consumption $140.77 $140.77 10 National Equipment Services Plow Repairs $1,628.52 $1,628.52 11 Rocky Mountain Power Electricity 1.35 $58.03 $26.11 $1,184.29 $1,750.33 $24.62 $3,131.73 12 Thomas Petroleum Fuel for City Vehicles $71.89 $71.90 $71.90 $71.90 $287.59 13 Thrucon, Inc. Water Main Repair 715 East 350 South $1,370.00 $1,370.00 14 Xerox Copies Fee Printer $43.57 $43.57 15 16 17 *- 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Page 1 SubTotals $1,572.25 $129.92 $26.11 $3,956.09 $3,930.13 $653.65 $10,268.15 Page 1 Total Amount to bi $10,268.15 River Heights City Financial Summary January 31,2020 Cash Balance Bv Fund 12/31/19 01/31/20 Net Change % of Total General Fund (29,755.82) (82,471.83) (52,716.01) -4.33% Capital Projects Fund 315,559.67 315,559.67 - 16.58% Water Fund 730,677.61 736,007.49 5,329.88 38.68% Sewer Fund 937,281.35 933,957.72 (3,323.63) 49.08% Total Cash Balance 1,953,762.81 1,903,053.05 (50,709.76) 100.00% %0f %0f Unexpended Budget Time YTD Actual Annual Budget Budget Incurred Incurred .General Fund- Revenue 536,947.36 809,270.00 272,322.64 66.35% 58.90% Expenditures Administrative 48,874.80 164,060.00 115,185.20 29.79% 58.90% Office 9,167.19 19,570.00 10,402.81 46.84% 58.90% Community Affairs 9,304.39 20,750.00 11,445.61 44.84% 58.90% Planning & Zoning 6,823.31 7,270.00 446.69 93.86% 58.90% Public Safety 71,011.07 86,400.00 15,388.93 82.19% 58.90% Roads 51,189.66 114,200.00 63,010.34 44.82% 58.90% Parks & Recreation 35,743.03 90,550.00 54,806.97 39.47% 58.90% Sanitation 101,970.35 150,000.00 48,029.65 67.98% 58.90% Transfer To CP Fund - 220,000.00 220,000.00 0.00% Total Expenditures 334,083.80 872,800.00 538,716.20 38.28% 58.90% Net Revenue Over Expenditures 202,863.56 (63,530.00) (266,393.56) ^pital Projects Fund ' >• Revenue 1,423.31 3,000.00 1,576.69 58.90% Reimbursement Income 234,000.00 234,000.00 Transfer From General Fund 240,000.00 240,000.00 Expenditures Administrative - - 58.90% Parks & Recreation 35,907.86 85,400.00 49,492.14 58.90% Roads 64,750.81 570,000.00 505,249.19 58.90% - - - 58.90% Total Expenditures 100,658.67 655,400.00 554,741.33 58.90% Net Revenue Over Expenditures (99,235.36) (178,400.00) (79,164.64) Water Fund . ' ' "- ■ T. ' ■ Revenue 223,080.11 361,350.00 138,269.89 61.74% 58.90% Expenditures 102,263.24 544,200.00 441,936.76 18.79% 58.90% Net Revenue Over Expenditures 120,816.87 (182,850.00) (303,666.87) { Sewer Fund Revenue 194,160.76 312,800.00 118,639.24 62.07% 58.90% Expenditures 120,421.00 333,500.00 213,079.00 36.11% 58.90% Net Revenue Over Expenditures 73,739.76 (20,700.00) (94,439.76) [ Combined - All Funds Net Revenue Over Expenditures - Combined 298,184.83 (445,480.00) (743,664.83)  CITY OF RIVER HEIGHTS REQUESTS FOR PROPOSALS River Heights City is now accepting proposals at the City Office Building until 2:30 p.m. December 31, 2019 for development, renovation and/or rehabilitation of a former church building structure that would include a transfer ofthe building and real property to the successful applicant: Approximately 1.2 acre 1930's era church building. Building must remain on the property and the general historical nature must be maintained. Proposed uses would not include industrial use. Residential, including multifamily and/or commercial use for restaurant, services, and retail will be considered. The City Recorder shall have possession ofthe RFP. Any proposal in route, either in the mail or at other locations in the city, may not be considered timely and may at the city's sole discretion be returned unopened. Interested applicants can obtain a copy of the RFP Application by emailing. office@riverheights.org or picking up a copy at the City offices. RFP's can be submitted by email to Sheila Lind at office@rlverheights.org or by fax.435-213-2125 or mailed or delivered to the city office at 520 South 500 East,River Heights, Utah 84321 between the hours of9:30 a.m. to 2:30 p.m., Monday-Thursday. Questions regarding the RFP should be directed to Mayor Todd Rasmussen, at toddrasmussen@riverheights.org up until December 15. River Heights City reserves the right to reject any or all proposals; or to accept or reject the whole or any part ofthe proposal; or to waive any informality or technicality in the interest ofRiver Heights City. Sheila Lind, City Recorder Publication Dates: November 7,9 and 12 I. INTRODUCTION River Heights City is a growing municipality located in Cache County. River Heights is soliciting written proposals for qualified individuals or developers to provide a plan for renovation and continuing use for a historical church structure and approximately 1.2 acres parcel of property with property description of lots 1,2,19,20 blk 2 river heights town survey sit NE/4SEC3T11NR1E The successful proposal would result in the property being transferred from the city to the applicant. The potential proposed uses for the structure could include residential, multifamily, commercial or mixed use. At the end of the submission period on December 31,2019, an evaluation committee will evaluate all submitted proposals. The evaluation committee may select one or more finalists for interview by the evaluation committee or may select one proposal to be forward to the River Heights City Council for approval and final negotiations. Upon completion ofthe evaluation process by the evaluation committee, the City Treasurer will advise the applicants of the selection and negotiation of a final agreement based upon the submitted proposal. The River Heights City Council shall make a final decision and approval of any contracts. n. SCOPE OF PROPOSAL River Heights City seeks to enter into a contract for the sale of the historic building and real property that would include conditions for the proposed party to renovate the building into a feasible use that may include residential uses, commercial uses, multi family uses or mixed uses. The applicant would submit renderings along with a detailed description oftheir proposal that would list what use or uses the applicant would make ofthe building, how the applicant would configure the building along with any ancillary structures, and what amount the applicant would propose to pay to River Heights City for the property and structure. III. MINIMUM EXPERIENCE AND QUALITIFACTIONS Each applicant must meet the following minimum qualifications. 1. Possess relevant commercial or residential experience in building renovation / rehabilitation or real estate development. 2. Be familiar with state and local building codes. 3. Be familiar with and capable ofsubmitting a qualified and complete application for rezone of the property. 4. Be available to meet with River Heights City to discuss and negotiate terms and conditions for the renovation and title transfer of the property. 5. Possess enough net worth or creditworthiness to finance renovation ofthe property. IV. FORMAT AND CONTENT OF PROPOSALS. Proposals shall provide a straightforward, concise description ofthe applicant's capabilities and concepts to meet and carry out the requirements ofthis RFP. Emphasis should be on completeness and clarity ofthe proposal and qualifications ofthe applicant along with anticipated purchase price for the property and an estimate of the cost ofrenovation. All proposals shall be valid and binding for sixty(60) days following the proposal due date and may become part of the contract that is negotiated with the City. The information requested below is a requirement for submitting a complete proposal. At the sole option ofthe City, incomplete or improperly submitted proposal may not be considered. The City reserves the right to seek additional or clarifying information for the applicants. The deadline for submitting proposals is December 31, 2019, at 2:30 PM.Proposals must be formatted, addressed, and delivered as follows: • Format: PDF format • Delivery: By email or mail as addressed below • Address: To: office@riverheights.org 520 South 500 East, River Heights, Utah 84321 Subject: RFP for Renovation of Historic Church in River Heights The anticipated RFP schedule is as follows: • Request for Proposals Issued: November 7, 2019 • Deadline for Questions Regarding RFP: By December 15, 2019 at 5:00 p.m. ■ Submissions Accepted: Before December 31,2019 at 2:30 PM • Possible Interviews of Selected Applicants: Between January 15,2020 and February 1, 2020 • Selection of Candidate and City Council Approval: March 1, 2020 • Anticipated Effective Date of Contract: July 1, 2020 The City reserves the right to require other evidence of technical, managerial,financial, or other abilities prior to selection. Further, the City reserves the right to waive formalities in the proposal process; to accept or reject any or all proposals received as a result of this request; to request additional information concerning any proposal; to accept or negotiate modifications to any proposal; to request final and best offers; to negotiate with qualified attorneys; to interview any proposer; to cancel, in part or in its entirety, the request for proposals; or to waive any irregularities in any proposal following the proposal submission deadline date; in order to serve the best interests of the City. The City also reserves the right to negotiate separately with any proposer whatsoever, in any manner necessary to serve the best interests ofthe City. This request for proposals does not commit the City to pay any costs incurred in the preparation of a proposal, nor will any such costs be paid by the City. To; Mayor Todd Rasmussen-^ver Heights City From; Tony Johnson RFPDate: November?,2019 Re; RFP For Renovation ofHistoric Church - River Heights City 1. EXPERIENCF AND QUALIFICATIONS: 1. Experience;. We are cpminerci^ and residential developer with'aprini^focus on historic preservation. Currently we own and man^e over 250 residential units over 50,000 sq. ft.ofcommercial space.. We have three(3J large restoration projects in process: a. Borden Milk Plant. A,50,000'sq.ft.historic preservation (consistent wthNPS standards)ofa factory building built in the early 1900s. The project isscheduled to be completed in Spring of2020 and will consist of51 urban loft style residential units. b. Logan Cold Storage Building. The historic i^teeryation ofthe old Logan Cold Storage Building located at 64 East Federal Avenue was recently completed. It contains Lucky Slice Pizza, Achievement Realty, The Ice Box Event center and The Blue Eehguinlce.Cream Parlor(setto,open January 2020). c. Mann Theater.. Rehabilitation ofthe old Man Theater building located at 1250 North 200 Eastj.Logan. Rehabilitation has recently commenced and should be completed in the Fall of2020. The building will contain two(2)restaurants and a beauty salon oh the main floor with a large event'center on the upper floor along ■' with an adjacent erferipr deck. The event center wll be able to accommodate groups up to 600+. 2. Building CodeSi We own a construction company, Techone Construction, LLC, which is licensed in the State of Utah as a BIOO. We only build and/or rehabilitate structures/projects for which we maintain an ownership interest.- Through our construction and rehabilitation efforts, we have a thorougli imderstanding of state and local building codes.  3. Zoning. Our development company, Alliance Acquisitions, LLC ("Alliance") has extensive experience with the negotiation and the obtaining of zoning approvals and matters related thereto. Alliance worked with River Heights City to secure the Historic Overlay Zone structure that allowed for the commercial occupancy ofthe old Sinclair Gas Station located a 594 South 400 East. 4. AvaOabilitv. Alliance is ready willing and able to meet with River Heights City officials to negotiate tenns and conditions for the renovation and transfer of the property. Tony Johnson, as the sole principal of Alliance, is authorized to bind the company. 5. Financial Capacity. Tony Johnson will provide a copy of his December 31, 2019 Personal Financial Statement wliich should provide adequate assurance of our financial capacity to complete die project 11. PROPOSAL: 1. LOl. See the attachedLOl dated December 15,2019. The offer to purchase contained therein shall remain open througli March 5,2020 consistent with requirements ofthe RFP. End 9 Page 2  TONY R. JOHNSON statement of Financial Position As of 31-Dec-18 Assets: Current Assets Cash on Hand 11,525 Checking Accounts 25,062 Checking • Ardent Management 298,261 Savings-401(i<) 44,262 Accounts Recelvabie • 549,952 Notes Recelvabie Indlviduals/Enlilies; 119,628 Total Current Assets 1,048,670 Real Estate Assets Landfflentai Propers/Homes held for Investment 4,031,651 Real Estate Investment 350,000 Venture Capital investment 1,101,525 Total Real Estate Assets 5,433,176 Other Assets Personal Assets 24,000 Rumar Trust 10,735,720 Total Other Assets $ 10.759,720 Total Assets $ 17.291,566 Liabilities: Current Uablilties; Accounts Payable Credit Cards Total Other Assets Long Term Liabilities: Notes Payable investment Properties 1,918,821 Cache V^ley Bank (Techone) 40,000 1,958,821 Total Long Term Lfabiiitles: Total Liabilities: 1,958,821 Owners Equity: Tony R. Johnson Ov/ners Equity 15,332,746 Total Owners Equi^^ $ 15,332,746 Total Liabilities & Owners Equity $ 17,291.566  ALLIANCE ACQUISITIONS,LLC 255 South Main Logan,LT 84321 (435)764-2200 December 15,2019 Honorable Todd Rasmussen River Heights City 520 South 500 East Logan, Utah 84321 RE: RFP(November 7, 2019)for Renovation ofthe Historic Church in River Heights Dear Mayor Rasmussen: The purpose of this agreement is to evidence our interest in acquiring the above referenced property. This binding proposal is further detailed as follows: Purchaser: Alliance Acquisitions, LLC or assigns Seller: River Heights City Property: Building and property located at 495 East 500 South Lots 1,2,19 and 20 BLK 2 River Heights Town Survey SIT NE/4 SEC 3 T 1 IN R 1E Purchase Price: $200,000.00. Terms: $100,000.00 through closing and $100,000.00 upon completion of rehabilitation. Earnest Money: One tltousand dollars($1,000.00) will be placed in an interest-bearing account witli Hickman Land Title Company within five(5) days after execution of this agreement. The Earnest Money plus interest earned shall be applied to the Purchase Price. Inspection Period: Purchaser will have sixty (60)days fi'om the effective date of the agreement ('inspection Period") to obtain approvals from the National Park Service and to verify site conditions, structure conditions and any such other studies, as Purchaser deems necessary. Seller agrees to cooperate with Purchaser in its investigation and make available to Purchaser any studies, reports, leases, plans, etc., if any, in Seller's possession concerning the Property. Title: Seller at Its expense shall provide a preliminary commitment for title insurance within ten(10)days after the date of this agreement. Purchaser will have twenty (20)days after receipt of such commitment to object to any items contained therein. Seller will have thirty (30) days to cure such objections. Survey: Reserved. /Uscrs/tonyjolinson/Documenis/D DrK-c/IDstoric/lUv-e/ HeifihtsChurcli/LOl -City.Wn 12.l5.l9.d9C Closing: Closing shall occur thirty (30)days after the end ofthe Inspection Period and Purchaser's approval of title policy. Typical and customary pfofatiOns for taxes, escrow fees, title insurance and other closing costs shall be utilized through Closing. Purchaser shall have one(1)option to extend Closing for thirty (30)days upon payment ofan additional one thousand dollars($I,000.00) of Earnest Money, which amount shall be credited against the Purchase Price through Closing. Unless otherwise agreed to by Purchaser, Closing to be extended as necessary for Seller to cause the existing tenants to vacate the building. Zoning/Uses: Consistent with the zoning approval process utilized through the completion of the Sinclair Station, Purchaser suggests use of the Historic Overlay Zone. The approved uses will be as directed by the River Heights City Council. Purchaser shall agree that through the rehabilitation ofthe building, no more than twelve(12) residential units shall be contained within the building. Purchaser may consider: a) locating a small museum inside tlie building and/or b)maintaining the stage/gymnasium which could be made available to River Heights city residents for,reduced or no cost on a schedule/use structure as would be agreed by Purchaser and Seller. Current Tenant(s): Purchaser shall work with Seller to extend Closing for the time necessaty for existing tenants to vacate the Property. Should it meet with Seller approved uses. Purchaser would be willing to,negotiate with chrrent tenant(s) to maintain tenancy in certain portions ofthe building. Rehabilitation: As required by National Park Service requirements, Purchaser shall fully rehabilitate the building to applicable building code which shall include but not be limited to: a) rehabiliiation of exterior facades and systems including new roofing, window and door repairs/replacement; b) complete interior upgrades including structural improvements(as required), electrical, plumbing and HVAC updates. Exterior landscaping shall be updated as is appropriate with city ordinances and shall include automatic sprinkler,system. The building will have curb appeal and be an asset for the community. See the attached pictures ofthe restoration of a church building in Provo, Utah. Purchaser intends to rehabilitate this building to a similar finish. Commissions: Seller will be responsible forlhe payment ofall real estate commissions, if any, related to this transaction. This agreement is intended to be binding upon the parties and to serve as the instructions for title company to close escrow. This letter^wtt-SBSjeld Open through 5:00 PM on March 5,2020. SipC^ely, onnson, manager Seller: Accepted by: Name: Title:- Date: /Usen/lonyjohnsoiUDocumcnts/D Diive/Historic/Wver HeighwChurth/LOl- City.002.12.1 S.I9.doc Old Chapel Apartments ALL 360^ VIEW  13 ?|rK)Hi!S.!0 VfK)HII?g mm\^ 3'w5ir7 v<. a'tiv -. -. TIV ^nisui vnni