HomeMy WebLinkAbout34. 19-501 AUGUST 27, 2019 19-501 RESOLUTION
(CARRIED 5-1-1P LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE LAND DISPOSITION OF SURPLUS PROPERTY TO
PRIME SPACE, LLC; NORTHEAST CORNER OF RATH LANE
AND NORTH KOELLER STREET
INITIATED BY: CITY ADMINISTRATION
PLAN COMMISSION RECOMMENDATION: Approved w/ conditions
BE IT RESOLVED by the Common Council of the City of Oshkosh that the proper
City officials are hereby authorized and directed to execute any and all documents
necessary to consummate the disposition of property located at the Northeast corner of
Rath Lane and N. Koeller Street, per the attached, to Prime Space, LLC with the following
conditions:
1. City approves the street vacation request for a portion of Rath Lane;
2. The proposed outlot will be combined with the privately-owned lots in a future
Certified Survey Map for a new lot configuration and removal of the outlot status;
3. The zoning designation of proposed Outlot 2 shall be changed from Institutional
(I) to Corporate Business Park with a Planned Development Overlay (CBP-PD);
4. City approves the right of way dedication on N. Koeller Street.
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Printing Date:6/27/2019
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TO: Honorable Mayor and Members of the Common Council
FROM: Kelly Nieforth
Economic Development Services Manager
DATE: August 22, 2019
RE: Approve Land Disposition of Surplus Property to Prime Space, LLC; Northeast
Corner of Rath Lane and N. Koeller Street (Plan Commission Recommends
Approval)
BACKGROUND
In 2018, the city dedicated street right of way to extend N. Koeller Street and connect to the N.
Westfield Street extension in order to serve Oshkosh Corporation's new global headquarters and
the Oshkosh Avenue redevelopment. The street extensions were designed using the
recommendations from traffic impact analysis that KL Engineering completed and to avoid the
existing wetlands on the city property. The street design left excess land south of the newly
extended N. Koeller Street and north of the existing Rath Lane right of way. A private property
owner owns the land south of Rath Lane and has submitted a petition to vacate a portion of the
existing Rath Lane right of way which the Common Council will consider at their August 27th,
2019 meeting.
The area in this request involves a 0.307 acre irregular-shaped outlot which increases in size to
0.545 acres if/when Rath Lane is vacated as shown on the attached map. The general area is
undergoing major redevelopment in terms of new commercial development along the north side
of Oshkosh Avenue, the repurposing of the former Lakeshore Municipal Golf Course to a multi-
use community park and Oshkosh Corporation's new global headquarters.
ANALYSIS
From a commercial development aspect, Outlot 2 and the vacated right of way is undevelopable
due to the irregular shape and setback restrictions so therefore cannot be sold on its own. The
private property owner to the south has requested that the existing Rath Lane cul-de-sac be
vacated since the cul-de-sac only serves his properties and if it were vacated, he would be able
to expand his developable footprint. By law, part of the vacated street will be returned to the
private property owner and the other portion will be returned to the city. Should Council
approve the request to vacate a portion of Rath Lane, the private developer requested that the
City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
city dispose of the 0.545 acre outlot. The developer would like to combine the additional acreage
to his site and develop it in exchange for dedicating .10 acres of right of way on N.Koeller Street
that the city may need in the future for traffic improvements. The land that the developer is
dedicating is much higher in value than the land that the city is proposing to dispose of.
Should the city elect to retain Outlot 2, it will be subject to following the zoning requirements
set in the city's zoning code. This includes up to 30' setbacks, landscaping and storm water
requirements, and will need to provide vehicular access from N. Koeller and Rath Lane to the
private property to the south due to the WisDOT access restrictions as an option for access to
the private site. The City Parks Department or City Public Works Department will be required
to maintain the infrastructure on a year round basis to provide access. Multiple easements will
need to be granted to allow the developer to connect to the city's utilities as well. An analysis
may need to be completed in order to properly provide pedestrian access across N.Koeller Street
or Rath Lane to the park. At this time, traffic on N. Koeller Street does not stop per
recommendations in the city's traffic impact analysis so a plan would need to be established in
order to safely allow pedestrian traffic.
The land is also located in TID #35 and will create additional increment that can be used for
public improvements along the Oshkosh Avenue corridor. The Advisory Park Board reviewed
and recommended approval of the disposition of this property at its August 12, 2019 meeting.
FISCAL IMPACT
The land disposition can be viewed as a land swap for Prime Space, LLC with no funds
exchanged. There was surplus land (Outlot 1 which was swapped with a developer who
dedicated right of way on N. Westfield in 2018, and Outlot 2 which is being requested to be
swapped with right of way being dedicated on N. Koeller) created from the street design. In
exchange, the city would dispose of Outlot 2 and will receive right of way dedicated on a highly
valuable intersection that the city would otherwise have had to purchase.
The disposition of Outlot 2 will add land assessment value to the proposed redevelopment south
of N. Koeller Street. The land is also located in Tax Increment District #35 and will create
additional increment that can be used for public improvements along the Oshkosh Avenue
corridor.
RECOMMENDATION
The Plan Commission recommended approval of the land disposition with conditions at its
August 20, 2019 meeting.
Respectfully Submitted, Approved:
721,C-k67
Kelly Nieforth Mark A. Rohloff
Economic Development Services Manager City Manager
City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
ITEM: LAND DISPOSITION OF PROPERTY LOCATED ON THE NORTHEAST
CORNER OF RATH LANE AND N.KOELLER STREET
Plan Commission meeting of August 20, 2019.
I
GENERAL INFORMATION
Applicant/Owner: City of Oshkosh
I
Actions Requested:
The City requests a land disposition of Outlot 2 at the northeast corner of Rath Lane and N.
Koeller Street which currently is 0.307 acres but will increase in size to a 0.545 acre outlot if/when
Rath Lane is vacated.
i
Applicable Ordinance Provisions:
II
N/A
Property Location and Background Information:
In 2018, the city dedicated street right of way to extend N. Koeller Street and connect to the N.
Westfield Street extension in order to serve Oshkosh Corporation's new global headquarters and
the Oshkosh Avenue redevelopment. The street extensions were designed using the
recommendations from traffic impact analysis that KL Engineering completed and to avoid the
existing wetlands on the city property. The street design left excess land south of the newly
extended N. Koeller Street and north of the existing Rath Lane right of way. A private property
owner owns the land south of Rath Lane and has submitted a petition to vacate a portion of the
existing Rath Lane right of way which the Common Council will consider at their August 27th,
2019 meeting.
The area in this request involves a 0.307 acre irregular-shaped outlot with wetlands on site. The
general area is undergoing major redevelopment in terms of new commercial development along
the north side of Oshkosh Avenue, the repurposing of the former Lakeshore Municipal Golf
Course to a multi-use community park and Oshkosh Corporation's new global headquarters.
ANALYSIS
From a commercial development aspect,Outlot 2 is undevelopable due to the irregular shape and
setback restrictions so therefore cannot be sold on its own. The private property owner to the
south has requested that the existing Rath Lane cul-de-sac be vacated as the cul-de-sac only serves
his properties and if it were vacated,he would be able to expand his developable footprint. By
law,part of the vacated street will be returned to the private property owner and the other
portion will be returned to the city. Should Council approve the request to vacate a portion of
Rath Lane, the private developer requested that the city dispose of the 0.545 acre outlot. The
developer would like to combine the additional acreage to his site and develop it in exchange for
i
dedicating right of way on N. Koeller Street to the city.
Should the city elect to retain Outlot 2,it will be subject to following the zoning requirements set
in the city's zoning code. This includes up to 30' setbacks,landscaping and storm water
requirements, and will be required to provide vehicular access from N. Koeller and Rath Lane to
the private property to the south due to the WisDOT access restrictions. The City Parks
Department or City Public Works Department will be required to maintain the infrastructure on a
year round basis to provide access. Multiple easements will need to be granted to allow the
developer to connect to the city's utilities as well. An analysis may need to be completed in order
to properly provide pedestrian access across N. Koeller Street or Rath Lane to the park. At this
time,traffic on N.Koeller Street does not stop per recommendations in the city's traffic impact
analysis so a plan would need to be established in order to safely allow pedestrian traffic.
j
The approval of the land disposition will need to be approved b pp P Pp Y the Plan Commission and
Common Council. The disposition of Outlot 2 may add land assessment value to the proposed
redevelopment south of N. Koeller Street. The land is also located in TID#35 and will create
additional increment that can be used for public improvements along the Oshkosh Avenue
corridor.
The Advisory Park Board reviewed and recommended approval of the disposition of this
property at its August 12, 2019 meeting.
RECOMMENDATION/CONDITIONS
Staff recommends approval of the land disposition of Outlot 2 at the northeast corner of Rath
Lane and N. Koeller Street which currently is 0.307 acres but will increase in size to a 0.545 acre
parcel if/when Rath Lane is vacated as proposed with the following conditions:
1. City approves the street vacation request for a portion of Rath Lane;
2. The proposed outlot will be combined with the privately-owned lots in a future Certified
Survey Map for a new lot configuration and removal of the outlot status;
3. The zoning designation of proposed Outlot 2 shall be changed from Institutional(I) to
Corporate Business Park with a Planned Development Overlay(CBP-PD);
4. City approves the right of way dedication on N. Koeller Street.
The Plan Commission approved of the land disposition as requested with conditions noted. The
following is the Plan Commissions discussion on this item.
Site Inspections: Report:Mr. Hinz, Mr. Fojtik,Ms. Palermi and Ms. Propp reported visiting the
site.
Staff report accepted as part of the record.
Item—Land Disposition—N.Koeller Street 2
The City requests a land disposition of Outlot 2 at the northeast corner of Rath Lane and N.
Koeller Street which currently is 0.307 acres but will increase in size to a 0.545 acre outlot if/when
Rath Lane is vacated.
Mr. Nau presented the item and reviewed the site and surrounding area as well as the land use
and zoning classifications in this area. From a commercial development aspect, Outlot 2 is
undevelopable due to the irregular shape and setback restrictions so therefore cannot be sold on
its own. The private property owner to the south has requested that the existing Rath Lane cul-
de-sac be vacated as the cul-de-sac only serves his properties and if it were vacated,he would be
able to expand his developable footprint. By law,part of the vacated street will be returned to the
private property owner and the other portion will be returned to the city. Should Council
approve the request to vacate a portion of Rath Lane,the private developer requested that the city
dispose of the 0.545 acre outlot. The developer would like to combine the additional acreage to
his site and develop it in exchange for dedicating right of way on N. Koeller Street to the city. Ms.
Nieforth added the Advisory Park Board reviewed and recommended approval of the disposition
of this property at its August 12,2019 meeting. She said there was an analysis completed to
determine the land disposition as the better alternative. Mr. Nau said staff recommends approval
of the land disposition of Outlot 2 at the northeast corner of Rath Lane and N. Koeller Street
which currently is 0.307 acres but will increase in size to a 0.545 acre parcel if/when Rath Lane is
vacated as proposed with the conditions as stated in the staff report.
Mr. Fojtik opened technical questions to staff.
Ms. Palmeri pointed out in the staff report that it states the lot is undevelopable due to the shape
and restrictions. She questioned how the applicant would expand the developable footprint if
they were to own it.
Ms. Nieforth answered the developable footprint would expand once all the lots have been
combined.
Mr.Mitchell said this may be the fourth time this intersection has been on the Plan Commission
agenda since he has been on the board. He stated it feels like the area has been piecemealed and
not planned out. He questioned if there was a broader plan he should know about to help guide
Plan Commission decisions.
Ms. Nieforth explained the reason for multiple request is that certain steps have to be made
before others can start. She said there are also time requirements for notices and public hearings.
She said as far as a plan,Mr. Nau showed three different concepts for the park. She said they did
work with a park consultant and Mr. Maurer about disposing of the land in case they needed it in
the future. She explained disposing of Outlot 1 last year somewhat set a standard that the City
did not need the land. She said they did an analysis on Outlot 1 as well. She said it is a small
piece of land, irregular-shaped and consist of wetlands which make it hard to develop.
Mr. Mitchell asked if there is a plan the City has in mind for the area,if they could share it so it
does not feel like the area is being piecemealed together.
Item—Land Disposition:—N.Koeller Street 3
Ms. Nieforth reiterated there is a sequence to be followed before other things can start. She said
for example, once Plan Commission and Common Council approve the land disposition, the
petitioner will then have to file for a CSM to combine the lots.
I
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Mr.Mitchell said it would be nice to see the City's vision for the area to help Plan Commission
make informed decisions. He said when they were doing the vacation,he did not know the City
was already planning on disposing the land afterwards. He stated it would be nice to have a
comprehensive vision of the area and he would greatly appreciate if it were shared with Plan
i
Commission.
Mr. Nau commented there is still one more piece to the puzzle and it is the dedication of the east
side of N.Koeller Street to widen N. Koeller Street.
Mr. Fojtik inquired if there was already something approved for that area.
I
Mr. Nau responded it was the official mapping which preserves/protect the land. He said
unfortunately there are several steps sometimes.
Ms. Propp questioned how people were going to access the property once the entirety of Rath
Lane is vacated.
Ms. Nieforth explained when the DOT reconstructed the 21 interchange, they put an access
restriction on N.Koeller Street. She said the applicant would need to have access off of Rath Lane
which the City is working with them on. She stated if Rath Lane was vacated or only a portion
was vacated, there would have to be access provided to the private developer.
Ms. Propp asked if the access would be at Rath Lane. She also asked if the vacated portion at the
end of Rath Lane would go to the developer.
Ms. Nieforth confirmed it would.
Ms. Propp said she made a comment during the vacation that she did not want the property
disposed of because it could be utilized for parking. She said she appreciates that staff made an
attempt to see what kind of parking would be allowed at the property. She commented on the
parking lot image and said the setbacks are excessive but did not know if there were wetlands
underneath.
Ms. Nieforth said there are wetlands that do infringe on the parcel. She said the setbacks are
what is stated in the code.
Ms. Propp said there are mechanisms and Base Standard Modifications to decrease the setbacks.
She said the problem with the potential parking, as Ms. Nieforth stated,is getting access to it.
Item—Land Disposition—N.Koeller Street 4
Ms. Nieforth commented we need to make sure we have access for petitioner. She said there are
some resections from the DOT on N.Koeller Street. She said it is a Planned Development and
Plan Commission will work through some of the kinks with the developer when they submit a
plan. She forewarned Plan Commission that the access is something the city would have to
provide for during this project.
Mr. Fojtik questioned who the City would helping to accommodate access for.
Ms. Nieforth replied the petitioner.
Ms. Palmeri said Council stated the remaining acreage after the Oshkosh Corporation
development was to remain part of Lakeshore Park. She said she knows they have disposed of
another outlot. She stated it feels like we have been scope creeping. She said she understands
some of the challenges but with the vacation it seems doable to allow access off of Rath Lane since
the vacation is takinglace without having to dispose of the half acre land. She asked if that was
p
correct.
Ms. Nieforth replied Ms. Palmeri is correct in the sense that the city would get a part of the
vacated area. She said in terms of excess land,this is the only other piece staff was not able to
work around. She said staff tried the hardest to follow the property lines and make it work but
due to wetlands and environmental concerns, they could not make it work.
Mr. Mitchell inquired if the lot had already been disposed of in all three conceptual plans of the
park. He said he wants to make sure the land is not disposed of before the park space plan is
complete.
Ms. Nieforth explained they worked with a consultant and the Parks department to inform them
that there was land. She said as far as the flow of the park and where they were encouraging
people to park,everything was north of Koeller Street. She said they did not want to have people
crossing a busy street. She said it was probably not worth it to put a small parking space on the
south side of Koeller Street. She pointed out the multiple parking lots in the park conceptual
plans and said they did try utilizing existing areas for parking areas.
Mr. Ford asked if there has been any discussion about what would go in the developable area
once the lots have been combined.
Ms. Nieforth replied the developer is looking at multiple uses which would come back to Plan
Commission because it is zoned with a Planned Development Overlay.
Mr. Ford asked if the petitioner could demolish the vacated area.
Ms. Nieforth replied they could if Council decides to vacate Rath Lane.
Item—Land Disposition—N.Koeller Street 5
Mr. Ford asked if the City could have done the same thing or if there were restrictions. He asked
as part of the cost-benefit analysis, did the City take into account combing the land with the
vacated area.
Ms. Nieforth showed the conceptual plan of parking the City would be allowed to build based on
restrictions and setbacks.
Mr. Ford asked if they considered other uses besides parking.
Ms. Nieforth said they did look at other uses but as far as what the park needed,parking was the
main driver for what they could potentially use it for. She said they did not need the land for
storm water or anything else that would serve the park.
Mr. Mitchell inquired about the wetlands and the impact it would make on developments.
Ms. Nieforth said if the land disposition and vacation are approved,the area would most likely
be used for the storm water quality and greenspace requirement.
Ms. Palmeri asked if there was someone here that could answer that question.
Mr.Fojtik asked if there were any public comments.
Will Steiner(applicant),3232 Shorewood Drive, said he is representing the owner,Prime Space
LLC. He explained they have owned the houses to the south for a few months. He said it has
been a long process that has multiple steps. He said they are equally as frustrated. He explained
because they do not know the layout of the land, they have not been able to develop good concept
plans. He stated they do not have much to show for concept plans because it is difficult not
knowing the boundaries or access points. He said they are open to all types of uses.
Ms.Palermi asked if the land were swapped, would Mr. Steiner plan to do impervious
development in that northern half acre or would he commit to maintaining it as green
infrastructure or storm water.
Mr. Steiner explained a portion of it is undevelopable due to the 30 feet setback and the northeast
portion is wetlands which has to be mitigated. He said the overall site will need greenspace. He
said the land is the least valuable part because it is the furthest from the intersection. He said it is
most likely where much of the greenspace requirement would be met. He commented the plans
would need to be approved by Plan Commission when there is a plan.
There were no other public comments on this item.
Mr. Fojtik closed public comments.
Motion by Hinz to adopt the findings and recommendation as stated in the staff report.
Item—Land Disposition—N.Koeller Street 6
Conditions:
1. City approves the street vacation request for a portion of Rath Lane;
2. The proposed outlot will be combined with the privately-owned lots in a future Certified
Survey Map for a new lot configuration and removal of the outlot status;
3. The zoning designation of proposed Outlot 2 shall be changed from Institutional (I) to
Corporate Business Park with a Planned Development Overlay (CBP-PD);
4. City approves the right of way dedication on N. Koeller Street.
Seconded by Kiefer.
Mr. Fo'tik asked if there was any discussion on the motion.
1
Mr. Perry stated he continues to be disappointed in the effort to try and redevelop that land. He
said he feels there are plenty of opportunities for the City to maintain those lots to utilize for the
good of the community. He said the land could be used not only for park space but a specialized
garden, for people with specialized disabilities or non-profits to utilize through the Community
Development Block Grant program. He said this is a wasted opportunity to dispose of the lot
when there are plenty of opportunities that could be available with some proper planning for the
future and betterment of the city as a whole.
Ms.Propp said she is frustrated as well with nibbling away at the park. She stated there is less
and less park left. She said she does recognize that difficulties in developing the parking area.
She said the lot is not as useful as she hoped it would be.
I
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Mr. Ford said he understand that problems arise and that it is inevitable during a process like
this. He said if we dispose of land it is something we cannot take back. He said Plan
Commission does not feel like a deliberative body involved in planning but have become an
affirmative body that just signs off on plans once the decisions have already been made. He said
just to keep in mind that may be where some of the frustration is coming from.
Mr.Mitchell inquired about the land swap and what would happen if the land was not disposed.
He asked if the City would pay for the acquisition.
I
Ms. Nieforth replied that is correct.
Mr.Mitchell asked if it were comparable land space.
Ms. Nieforth answered it is a little bit less. She explained the land that is being dedicated is much
more valuable than the land that is being disposed. She said staff would work the assessors or do
an appraisal to figure out what the value would be for the land that needs to be acquired.
Ms. Palmeri said she is guessing that the increment that could potentially be added here because
the nature of the restrictions would be pretty minimal. She stated just because we can does not
mean we should. She stated she is going to lean on the preservation side.
Item—Land Disposition—N.Koeller Street 7
Motion carried 5-4 (Ayes:Fojtik, Ford,Hinz, Kiefer and Propp. Nays:Erickson, Palmeri, Perry and
Mitchell).
Item—Land Disposition—N.Koeller Street 8
LAND DISP CITY OF OSHKOSH HIGHWAY 21 HOSPITALITY GROUP LLC
NE CORNER OF RATH LN&N KOELLER ST PO BOX 1130 5108 I AH MAY TAH RD
PC:08-20-19 OSHKOSH WI 54903 OSHKOSH WI 54901
LAKE SHORE DEVELOPMENT OF OSHKOSH LLC PRIME SPACE LLC
230 OHIO ST 200 1325 N SUMMER RANGE RD
OSHKOSH WI 54902 DE PERE WI 54115
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