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Midwest Restoration & Preservation PO Box 6157

Madison, WI 53716-0157 608-222-3823 (f) o 608-222-1155 (t)

608-772-KUNZ (5869) (c)

A. Transmittal Acknowledgement Letter

Subject: City of Madison 704 East Gorham Street Request for Proposals

The undersigned has read the City of Madison’s Request for Proposals for the re-use and rehabilitation of 704 East Gorham Street. I agree to and accept the terms, specific limitations, and conditions expressed herein. WE HAVE READ, RELY UPON ACKNOWLEDGE, AND ACCEPT THE CITY OF MADISON’S DISCLOSURE AND DISCLAIMER, AS PROVIDER IN THIS RFP, HERETO FULLY EXECUTED AND FULLY INCORPORATED INTO THIS LETTER.

Sincerely

(SIGNATURE)

Jeff Kunz, CEO (NAME AND TITLE)

Midwest Medical Management, Inc. dba Midwest Restoration & Preservation (ORGANIZATION)

Midwest Restoration & Preservation/Jeff Kunz (PROPOSER NAME)

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B. Project Concept Statement

1. We (Midwest Restoration & Preservation) propose that 704 East Gorham (Collins House) be restored, rehabilitated and then house the Madison European-American International Center (Foundation), a new foundation organized and governed under appropriate Internal Revenue Service (IRS) provisions. The Foundation will collaborate with existing centers in Madison, WI and beyond, including the University of Wisconsin Division of International Studies, the UW Center for European Studies, and the UW’s programs in International Studies, Scandinavian Studies, and all European languages.

The Collins House (704 East Gorham) shall house the above named public research and educational center that also provides programs of public service promoting international cooperation and understanding to the citizens of Wisconsin and the world. It also shall provide residential housing to scholars and students who share this commitment to international scholarship and goodwill.

A main goal of the Foundation is to promote international public education and its access, scholarship, and collaboration. A proposed list of initial public access is attached but will serve as a floor rather than a ceiling (Attachment A). In short, public access, collaboration, and participation in its local and wider community are to be welcomed and encouraged.

The existing Collins House will require minimal adaptation but much restoration and rehabilitation to house the Center and its Foundation. Tuck-pointing, roofing, flashing, and gutter repair/replacement, along with other building envelope issues including water infiltration/damage will be addressed immediately upon successful closing

All mechanicals including HVAC, electrical, plumbing, etc., and the building envelope (roof, shell, insulation) will be tested for structural and operational function, and at least brought up to code if not exceeding it. The landscape will be spruced up and maintained in an attractive manner with input from the neighborhood and the City of Madison. At this point all parking areas and the relatively impervious heard surface of the existing walkways are anticipated to be maintained.

All five existing bedrooms on the second and third floors will tastefully be restored, decorated, and furnished with prairie-school “Stickley” compatible chests, beds, desks, lighting, rugs, etc. The existing public areas on the 1st floor carefully will be restored and furnished with appropriate living and dining room prairie furniture, lamps, rugs, etc. A period compatible (early 20th

century) but modern (early 21st century) kitchen (quarter-sawn oak, etc., with energy saving appliances) will be constructed in the existing kitchen preparation and storage rooms located in the NE corner of the 1st floor.

We are committed to finishing this high quality restoration (Phase I) by September 1, 2012 assuming favorable selection of our proposal to this RFP by the City of Madison selection committee, ratification by the Madison Common Council, and voter approval in April 2012. We understand that a closing will then occur quickly, which would maximize our best restoration season and allow building occupancy permits by September 1, 2012.

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Phase II The existing basement commercial kitchen and catering areas, now largely devoid of all fixtures, equipment, etc., will be converted into a period-appropriate (circa 1911) meeting room, prep kitchen, and bathrooms following the testing, repair, and restoration of the upper floors, mechanicals, building envelope, and landscaping. We also will investigate the feasibility of renewable energy sources (e.g., wind, solar, hydronic systems, geothermal, etc) as is practicable and compatible with Madison codes and neighborhood wishes.

Our demonstrated commitment to preservation and restoration of the Collins House is paramount and entirely compatible with its use as public foundation and cultural residential center. It is estimated that this rehabilitation project will cost in excess of $300,000.00, and sufficient cash funds are in hand to pay for this extensive effort to preserve this important structure.

We are absolutely committed to the rehabilitation of this City of Madison Landmark, to its historic neighborhood, and to its historic standards. All projects will be completed in accordance with the City of Madison Landmarks Ordinance and the US Secretary of the Interior’s Standards.

C. Development Team Information

Midwest Restoration and Preservation (Midwest) is the property restoration and rehabilitation division of Midwest Medical Management, Inc., an existing registered corporation in Wisconsin with a more than two decade history of rehabilitation, renovation, and rental success.

It’s CEO Jeff Kunz has lived in the Madison area for more than five decades. A Wisconsin native, he has been educated in public schools with additional fellowship programs in Chicago, Washington, Oslo, Glasgow, and London. He spent summers in his youth on his family’s land grant farm in Wisconsin where he learned to appreciate the conservation and beauty of Wisconsin’s land and water. As a George C. Marshall Scholar to Glasgow University and later University College London in public health, he learned about famous turn of the 20th century European arts and crafts designers, especially Charles Rennie Mackintosh and William Morris.

While on a fellowship in London he read about a devastating electrical fire that damaged his US National Landmark designated fraternity house (Bradley-Sigma Phi House, 106 N. Prospect in Madison). Upon completion of his spring term, he returned to Madison where along with a small group of fraternity brothers, supportive neighbors, and experts, he was able to restore this Madison landmark (designed by Louis Sullivan) and readapt its basement storage quarters to student use to reduce its ongoing wear and tear. Included is a handout from a group that Kunz helped found and continues its preservation efforts on behalf of this designated US National Landmark (Attachment B).

Later as a faculty member at Northwestern University in Illinois, he and his family lived in Riverside, Illinois, a designated US National Landmark suburb of Chicago designed by Frederick Law Olmsted. Along with his wife, they restored in 1981-82 a circa 1915 prairie home there designed by one of Frank Lloyd Wright’s colleagues before their returning to Madison permanently in 1987.

Kunz has three degrees from UW-Madison: BA (history); MD, and MA (public policy & health administration); he has substantial management and funding experience having served as managing editor of JAMA (budget $42 Mn), Assistant Dean of the UW Medical School ($350 Mn), VP of Northwestern’s Rehabilitation Institute of Chicago ($35 Mn), CEO of Monona Grove Clinic ($3 Mn), Deputy Secretary of WI Department of Health & Social Services ($1.3 Bn), UW

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Associate Professor of Health Administration, and CEO of Midwest Medical Management, Inc ($3 Mn) and its associated divisions (particularly its rental and restoration businesses). He is a founder of the Monona Chamber of Commerce, Monona Grove Educational Foundation, and a two term elected member of the Monona Grove School Board as its treasurer. He has also has served 2 terms as Treasurer of the Sigma Phi Educational Foundation of New York, longtime treasurer and current member of the Alpha of Wisconsin board of trustees that owns the restored house at 106 N. Prospect in Madison since 1915.

Jeff also is Principal of the Kunz Family Trust at the Madison Community Foundation, a member of the Bascom Hill Fund at the UW Foundation, and actively serves on the Madison based board of trustees of the Brittingham Viking Scholars. He is a member of the Sierra Club, Great Lakes Coalition, and a 30+ year trustee and immediate past Chair of the Wisconsin Union during the 4 years when the brand new $95 Mn UW Union South was approved and then constructed. Finally, he currently sits on the Midwest Selection Committee of the George C. Marshall Scholarship Commission as appointed by HRH Queen Elizabeth II.

Now retired as an administrator from UW-Madison, he and his wife Lawren, a retired public school teacher, have continued their substantial involvement with international cultural and educational efforts through their own trusts, the Brittingham Viking Foundation, and the Bradley-Sigma Phi trusts. They both are actively involved with their ongoing medical, restoration, and rental businesses founded decades ago.

They have owned and restored more than a dozen commercial and residential properties ranging from $100K to more than $1+ Mn in the Madison area. They are familiar with the services of restoration architects, artisans, other preservation-minded professionals around Madison as well as the substantial expertise of the Prairie Archives (Milwaukee), Wisconsin Historical Society in Madison, and the US National Landmarks Commission in Washington, D.C., among others.

They are aided by a whole team of restoration and building professionals with whom they have worked including Ben Conklin, their son-in-law who is an architecture school graduate of UW-Milwaukee with a Master’s in Urban & Regional Planning from UW-Madison, and President of Madison Property Preservation, a collaborative restoration and maintenance business that he runs.

In summary, Jeff Kunz will be the individual authorized to negotiate and bind this proposal and its project. However, he will be aided by a number of preservation professionals and subcontractors including experienced architects whose expertise and services will be employed if this proposal is successful. Moreover, Midwest Restoration & Preservation (Midwest) pledges to utilize skilled, local union tradesmen and women. Whenever possible it will hire and buy locally.

Should Midwest’s proposal be selected, more detail and investment in subcontracted expertise will be forthcoming.

Jeff’s significant restoration experience includes:

1972-73 Restoration of Bradley Sigma Phi House, Madison, WI $1 MN; 1977 Restoration of 3629 Wisconsin Ave residence, Berwyn, IL $75K; 1981-82 Restoration and addition to the Buckley House, Riverside, IL $225K; 1982-83 Restoration/redecoration Rehabilitation Institute of Chicago $2+Mn; 1983-84 Restoration of Lake Monona residence, Monona, WI $350K 1887 Restoration/redevelopment of Monona Grove Clinic, WI $1+Mn; 1997 Restoration/redevelop Monona Rehabilitation Services clinic $100K;

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1997 Restoration of residential rental housing at 1324 Milton, Madison $250K; 1998 Restoration of residential rental housing at 1544 Adams, Madison $175K; 1999 Restoration of residential rental housing at 1425 Mound, Madison $400K; 2000 Restoration of residential rental housing at 711 E Gorham, Madison $500K; 2001 Restoration of residential rental housing at 108 S. Orchard, Madison $200K; 2002 Restoration of residential rental housing at 205 S. Mills, Madison $300K; 2003 Restoration of Schroeder Lane Flambeau property (circa 1935) $400K; 2004 Restoration of BoDiLac Dr. 1927 compound, Minocqua $600K; 2007 Rehabilitation of Femrite Road residential property, Monona $225K; 2008-Present restoration of W Squaw Lake Rd property, Minocqua $250K; 2011 Restoration/property mgt of Herfurth House, 711 E. Gorham ongoing

D. Costs

As mentioned above, it reliably is estimated that total preservation costs including restoration, rehabilitation, adaptation (1st floor kitchen & basement) will exceed $300,000.00. Moreover, the long-term lease of the land (99 years) and its related payment in lieu of taxes (PILOT) of at least $15K in 2012-13, plus its ongoing repair and maintenance expenses budgeted for $3K in its first year (see Attachment C), all will be paid by Midwest. These costs would be even higher were it not for the care that has been given previously. Many thanks are due to the Pratzel family and the Madison Park Commission for their previous restoration, obvious commitment, and maintenance of this architectural gem over many years.

Given our late discovery of this RFP just before the Independence Day weekend and its 7/7/11 deadline, no commitment from bondable general and subcontractors has been included. However, Midwest has utilized the following contractors/subcontractors in its previous projects in the Madison area, and will approach them or others as appropriate for precise bidding and commitments to this project if Midwest is short-listed by the selection committee and once the dates of work are known:

JH Findorf & Son, Inc. Madison, WI Sweeney Construction Corporation Madison, WI Chase Lumber Cottage Grove, WI McCormick Lumber Madison, WI Menard’s Corporation Eau Claire, WI Abner Boiler, Furnace & Air Conditioning Madison, WI Warren Heating & Air Conditioning Madison, WI Madison Block & Stone Madison, WI Homburg Contractors, Inc. Monona, WI DRS, Asphalt Paving Ltd. Madison, WI Hansen & Sons Masonry Madison, WI Design Coalition Madison, WI JD Ash, Architect Madison, WI John W. Thompson, Architect Madison, WI Linville Architects, LLC Madison, WI Will Hasbrouck, Architect Chicago, IL H&H Electric Contractors Madison, WI Jacobs Electric, Inc. Madison, WI Amp Electric Co. McFarland, WI Hellenbrand Brothers, Inc Middleton, WI Action Fence Fitchburg, WI

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Qual Line Fence Corp Waunakee, WI Struck & Irwin Fence, Inc Madison, WI Capitol Lock, Inc Madison, WI J&K Security Madison, WI M&M Flooring Madison, WI Renz Tile & Floors Sun Prairie, WI Sergenian’s Floor Coverings Madison, WI Kelly Gallagher, Inc Cottage Grove, WI Gulesserian’s Rugs Madison, WI Badger Pro Landscapes, Inc Madison, WI The Bruce Company Middleton, WI Dane County Tree Service Madison, WI Johnson Tree Service Madison, WI McKay Nursery Company Waterloo,WI Bob Cooper Glass, Inc. Madison, WI Klein Dickert Co, Inc Madison, WI Martin Glass Co. Madison, WI Tom’s Painting Madison, WI Ahern Fire Protection Madison, WI JH Pertzborn Corp Madison, WI Zimmerman Plumbing Madison, WI Brown Roofing & Siding Madison, WI Sim’s Roofing Cottage Grove, WI Greater Insurance Service Corp Madison, WI Reinhart Boerner Van Deuren, SC Madison, WI Stafford Rosenbaum LLP Madison, WI William F Heibl Law Firm Madison, WI

E. Financial Plan

The proposer, Midwest Restoration & Preservation, a division of Midwest Medical Management, Inc, a Wisconsin Corporation and its agent/CEO, Jeff Kunz have sufficient cash reserves on hand at Anchor Bank and Monona State Bank to complete a $400,000.00 investment in the renovation, adaptation (1st floor kitchen & basement, etc.), and preservation of the property (Collins House) located at 704 E. Gorham in Madison.

The ground lease and payment in lieu of taxes (PILOT) for rent and lease of that property payable to the City of Madison (City) for twelve months in 2012-13 would be $15,000 ($1,250.00/month). This payment to the City would increase by 50% of the yearly Consumer Price Index (CPI) of All Urban Consumers in the Midwest as measured by the US Bureau of Labor Statistics. For example, should the noted CPI increase in a twelve month period be 4.4%, the PILOT would increase to $15,330.00 ($15,000 x 1.022 or $1,277.50 per month) beginning on the second anniversary renewal of the lease/PILOT. The lease/PILOT payments to the City would be for 99 years and would be revised upward each year per the CPI standard or its equivalent, if the US Bureau of Labor Statistics modifies these currently collected data.

Given the substantial investment in repairs and renovations for the building and its appurtenances, an additional but “goodwill” payment of $10,000.00 would be paid to the City at the time the closing of this “as is/shown” property. It is assumed that all window treatments, air conditioning units, other house equipment, etc. will remain.

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Midwest offers the City two other “sweetners”. First, at its own written and exercised option, the City could elect be paid either the 5 or 10 year present value of its lease upon closing in lieu of annual lease payments for the specified time; that present value to be determined to be $75,000 (5 years) or $150,000 (10 years), plus the $10K goodwill payment.

Finally, Midwest offers the City 50%, e.g. (25% to the Madison Parks and 25% financial support to the Tenny Lapham Neighborhood Association, TLNA, as is possible) of the auditable and easily verifiable net profit of the Madison American European International Center’s financial operations over the last 12 months.

A proposed budget for 2012-13 (Attachment C) is appended for your review.

F. Special Conditions There are no special conditions with this cash proposal both for the purchase/restoration of the building, and the 99 year ground lease/PILOT as proposed. If selected, this offer is contingent upon the property successfully passing a prompt environmental and building occupancy inspection at Midwest’s expense. Also at its expense, all documents for lease, sale, etc. will be prepared by Midwest’s attorneys in consultation with the City Attorney’s Office.

Midwest stands ready to honor all its commitments, answer any questions regarding its operation and management of the Collins House, is committed to public use and access, as well as to a genuine restoration and preservation of this wonderful building. Thank you for the opportunity to respond to your exciting request for proposal (RFP) to preserve this historic building for the present and future generations.

Attachment A

European-American International Center Collins House

704 East Gorham Madison, Wisconsin 53703 USA

Proposed public access dates (2012-13): Tenney-Lapham Neighborhood Association (TLNA) Block Party July 2012 TLNA Council Meeting August 2012 European-American Lecture & Discussion September 2012 TLNA Council Meeting September 2012 Fall Harvest Festival October 2012 European-American Lecture & Discussion October 2012 TLNA Council Meeting October 2012 European-American Lecture & Discussion November 2012 TLNA Council Meeting November 2012 European-American Lecture & Discussion December 2012 TLNA Council Meeting December 2012 New Year’s Eve (Hogmanay) Open House December 2012 TNLA Council Meeting January 2013 European-American Lecture & Discussion February 2013 TNLA Council Meeting February 2013 European-American Lecture & Discussion March 2013 TNLA Council Meeting March 2013 TLNA/EAIC Earth Day Clean-up & Symposium April 2013 TNLA Council Meeting April 2013 European-American Lecture & Discussion May 2013 TNLA Council Meeting May 2013 Mid Summer Celebration June 2013 TNLA Council Meeting June 2013

In addition the Collins House will be open for weddings, Bar/Bat Mitzvahs, etc., at a discounted rate for all TLNA members/families during 2012-13 and beyond.

The Collins House also will be made available for other TLNA-sponsored events including the ice cream social, spaghetti dinner, pancake supper and TLNA regular potlucks.

Madison European-American International Center Attachment C

Proposed Operating Budget for 12 months 2012-13

INCOME: Month YearRentBR 1 $700 $8,400BR 2 $500 $6,000BR 3 $500 $6,000BR 4 $500 $6,000BR 5 $500 $6,000

$2,700 sub total $32,400

Wedding/reception $2,000

$34,400 Total Rev

EXPENSESPILOT/lease $1,250 $15,000MG&E (est) $600 $7,200Water&Sewer $100 $1,200Cable/IT net $125 $1,500Newsp/media $50 $600Insurance $150 $1,800Repairs/Maint $250 $3,000Other $75 $900

$2,600 $31,200 $31,200 Total Exp

Net Profit $3,200 Net Divisable Profit

25% to CoM $80025% to TLNA $80050% to MRP $1,600