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HomeMy WebLinkAbout18. 19-551 OCTOBER 8, 2019 19-551 RESOLUTION (CARRIED 7-0 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE LAND ACQUISITION AND DISPOSITION POLICY INITIATED BY: COMMON COUNCIL WHEREAS, the Common Council desires to create a land acquisition and disposition policy for land in the City which is transparent, accountable and effective and which complies with existing city codes, state statutes and federal laws and funding requirements. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the attached "Land Acquisition and Disposition Policy" is hereby approved and the proper City officials are hereby authorized and directed to take those steps necessary to carry out the City's responsibilities under the Policy. Cit yf Oshkosh TO: Honorable Mayor and Members of the Common Council FROM: Allen Davis, Community Development Director DATE: October 1, 2019 RE: Approve Land Acquisition and Disposition Policy BACKGROUND The Council directed the City Manager and staff to create a process and policy for acquiring and disposing of land for the City. The process and policy was then divided into a Residential land process and a Commercial and Surplus land process. Staff drafted the material earlier this year and Council received the drafts in mid-July, 2019. Council then held a workshop regarding the draft process and policies on August 13, 2019. ANALYSIS The flowcharts and policy attachment encompasses the typical land acquisitions and dispositions the City considers on a regular basis. The residential land is typically blight removal and redevelopment. The commercial land is typically industrial and business parks and the disposition of surplus land. The various processes and policies identify the staff responsibilities and the roles of the respective boards and commissions in the review of the proposed land acquisitions and dispositions. FISCAL IMPACT The process and policy for each type of land acquisition and disposition is consistent with existing city codes and policies for funding these types of actions. RECOMMENDATION The Council approves the proposed Land Acquisition and Disposition Policy. Submitted, Approved: 4t/to,y-1 Allen Davis Mark A. Rohloff Community Development Director City Manager City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 hffp://www.ci.oshkosh.wi.us City , o r Oshkosh Land Acquisition and Disposition Policy DRAFT 7.17.19 City Residential Land Acquisition and Sale Process CDBG Pro ram Healthy Neighborhoods Capital Improvement g Program Program Low to Moderate Affordable Housing Income Housing Redevelopment Authority approves Redevelopment Authority approves Redevelopment Authority approves acquisition No acquisition based on determination of blight No No based on determination of blight or property is or property is within a Redevelopment Area blight or property is within a within a Redevelopment Area Redevelopment Area Common Council concurs with blight Common Council concurs with blight determination determination and approves funding for Common Council concurs with blight and approves funding for acquisition acquisition determination and approves funding for acquisition Yes 41 City staff determines conditions for sale Redevelopment Authority Common Council Staff conditions for sale: are consistent with policy and zoning Conditions for Sale -New Affordable House -Fair Market Value or LMI Housing -Subsidize new construction Partner with: -CDBG funds not eli Ible for new construction -No fair market value requirement Private Sale- g -Habitat for Humanity-new -No income limit -Sell to adjacent property affordable residential -Mow to Own construction Partner with: -Advocap—new affordable Private Sale Partner with: Private Sale -Sell to private owner for residential construction -Habitatfor Humanity: residential construction -Sell to adjacent -Habitatfor Humanity: -SE to adjacent new affordable -GO-HNI:Rehab home or property—Land sold at new affordable residential property—combine OtS residential construction build new affordable fair market construction -Advocap—new residential construction -Advoca new affordable -MOW to OWn affordable residential -Sell to private owner P for residential residential construction -Sell to private OWner construction construction -GO-HNI:Rehab home or for affordable residential -GO-HNI:Rehab home —Sold for fair market or build Affordable construction or build new affordable affordable housing residential construction residential construction RDA Approves: 1.Sale Price-No fair RDA Approves: market value RDA Approves: 2.sale Price requirements 2.Design ap proval 2.Design ap proval of 1.Sale Price of residential esidential consrruction 2.Design approval of constre�tion residential construction DRAFT DRAFT 7/17/19 Residential Land Acquisition and Sales Process -Community Development Block Grant (CDBG) Purchase The RDA has jurisdiction over spot-blighted properties and properties within redevelopment districts. The purpose of this policy is to establish a transparent, accountable and effective residential land sales process that is consistent with state and federal requirements. The RDA reserves the right to deviate from this process when in the opinion of the RDA it is in the best interests of the City. Actions Required: The RDA first makes determinations related to land acquisition and sales transactions for spot-blighted properties and properties within redevelopment districts, including but not limited to entering into options and accepting offers. The RDA and Council share responsibility for approval. Land Acquisition. The City Council adopts a Redevelopment Plan or designates a blighted property in order for the RDA to acquire a blighted parcel. The RDA acquires and holds the title to the parcel. Determination whether to offer land for sale/redevelopment. The RDA determines if land will be made available for sale or redevelopment and may consider all relevant information including but not limited to the following factors - any Redevelopment Plan, other City plans, environmental assessment and remediation needs,building demolition requirements, and potential combination with other parcels in the future. The RDA may determine that the land should be banked until a future date, or may determine that the land should be made available for more immediate redevelopment. If the land is made available for sale, then the following general process shall apply. Conditions for Sale CDBG rules require that the land be sold for Fair Market Value or to a Low to Moderate Income Household (based on household income by household size) DRAFT Marketing—Private Sales The RDA determines the type of marketing to be used for selling the land. Staff shall place a "for sale" sign on the land. Staff shall list the available land on free or low-cost websites. Marketing -Affordable Housing Partners The RDA may also enter into an agreement with an affordable housing partner for the development of a residential project on the property, either a new construction or a rehabilitation of the existing structure. Review and Approval of the Sales Price and Building Design The RDA shall review offers received based on signs, websites, and other common means on a first-come, first-served basis. The RDA may grant Options on land as circumstances dictate. The RDA may also review the design of any structures proposed for the land as part of their deliberation Public Notice: RDA and City Council agendas, packets and minutes are posted to the City's website. Closed sessions are noticed as required by Wisconsin State Statutes. DRAFT DRAFT 7/17/19 Residential Land Acquisition and Sales Process - Healthy Neighborhoods Initiative (HNI) Purchase The RDA has jurisdiction over spot-blighted properties and properties within redevelopment districts. The purpose of this policy is to establish a transparent, accountable and effective residential land sales process that is consistent with state and federal requirements. The RDA reserves the right to deviate from this process when in the opinion of the RDA it is in the best interests of the City. Actions Required: The RDA first makes determinations related to land acquisition and sales transactions for spot-blighted properties and properties within redevelopment districts, including but not limited to entering into options and accepting offers. The RDA and Council share responsibility for approval. Land Acquisition. The City Council adopts a Redevelopment Plan or designates a blighted property in order for the RDA to acquire a blighted parcel. The RDA acquires and holds the title to the parcel. Determination whether to offer land for sale/redevelopment. The RDA determines if land will be made available for sale or redevelopment and may consider all relevant information including but not limited to the following factors - any Redevelopment Plan, other City plans, environmental assessment and remediation needs,building demolition requirements, and potential combination with other parcels in the future. The RDA may determine that the land should be banked until a future date, or may determine that the land should be made available for more immediate redevelopment. If the land is made available for sale, then the following general process shall apply. Conditions for Sale HNI has no Fair Market Value or LMI benefit requirement. HNI requires the residential unit(s)be affordable. The affordability of the unit is based on a 30% maximum of the occupant's annual household income spent of housing-related expenses. DRAFT Marketing—Private Sales The RDA determines the type of marketing to be used for selling the land. Staff shall place a "for sale" sign on the land. Staff shall list the available land on free or low-cost websites. Marketing -Affordable Housing Partners The RDA may also enter into an agreement with an affordable housing partner for the development of a residential project on the property, either a new construction or a rehabilitation of the existing structure. Review and Approval of the Sales Price and Building Design The RDA shall review offers received based on signs, websites, and other common means on a first-come, first-served basis. The RDA may grant Options on land as circumstances dictate. The RDA may also review the design of any structures proposed for the land as part of their deliberation Public Notice: RDA and City Council agendas, packets and minutes are posted to the City's website. Closed sessions are noticed as required by Wisconsin State Statutes. DRAFT DRAFT 7/17/19 Residential Land Acquisition and Sales Process -Capital Improvement Program Purchase The RDA has jurisdiction over spot-blighted properties and properties within redevelopment districts. The purpose of this policy is to establish a transparent, accountable and effective residential land sales process that is consistent with state and federal requirements. The RDA reserves the right to deviate from this process when in the opinion of the RDA it is in the best interests of the City. Actions Required: The RDA first makes determinations related to land acquisition and sales transactions for spot-blighted properties and properties within redevelopment districts, including but not limited to entering into options and accepting offers. The RDA and Council share responsibility for approval. Land Acquisition. The City Council adopts a Redevelopment Plan or designates a blighted property in order for the RDA to acquire a blighted parcel. The RDA acquires and holds the title to the parcel. Determination whether to offer land for sale/redevelopment. The RDA determines if land will be made available for sale or redevelopment and may consider all relevant information including but not limited to the following factors - any Redevelopment Plan, other City plans, environmental assessment and remediation needs,building demolition requirements, and potential combination with other parcels in the future. The RDA may determine that the land should be banked until a future date, or may determine that the land should be made available for more immediate redevelopment. If the land is made available for sale, then the following general process shall apply. Conditions for Sale CIP funding has no mandated conditions for sale. Staff recommendations for policies for conditions for sale include: DRAFT 1. Proposed redevelopment of the lot meets zoning and design requirements for the lot. 2. Condition of the land and/or structure. 3. Estimated rehabilitation cost and proposed sale price of the lot. 4. The potential impact on the neighborhood as a result of the project. 5. Potential redevelopment in combination with adjoining properties. 6. Projected Assessed Value of the new residential structures. Marketing—Private Sales The RDA determines the type of marketing to be used for selling the land. Staff shall place a "for sale" sign on the land. Staff shall list the available land on free or low-cost websites. Marketing -Affordable Housing Partners The RDA may also enter into an agreement with an affordable housing partner for the development of a residential project on the property, either a new construction or a rehabilitation of the existing structure. Review and Approval of the Sales Price and Building Design The RDA shall review offers received based on signs, websites, and other common means on a first-come, first-served basis. The RDA may grant Options on land as circumstances dictate. The RDA may also review the design of any structures proposed for the land as part of their deliberation. Public Notice: RDA and City Council agendas, packets and minutes are posted to the City's website. Closed sessions are noticed as required by Wisconsin State Statutes. DRAFT" • City Commercial and Surplus Land Acquisition and Sale Process Industrial/Business Park Land other city-owned Land Acquisition RDA Land Acquisition Acquisition and Sales Process and Sales Process and Sale Process Common Council Approves Land Common Council Approves Common Council Approves Purchase and Acquisition of Other City Owned Land Redevelopment Plan and Spot Development for Industrial/Business Park Responsibility Blight Designation Land Staff reviews land Ongoing Marketing: holdings R DA Acquires Land for 1.Signs Blight Removal on z.website periodically— Behalf of the City 3.other Entities ex:�o-EDc may recommend surplus/disposal RDA determines if land should go -Standard O tion to -Standard Offer to - to land bank p Purchase Factors: Purchase Land Bank GrantTem ora No -Environmental Assessment -Grant Temporary - p ry ._ithplans -Building Demolition Access for Due Access for Due No F— YES -Environmental Remediation Diligence Diligence Common Council Common determines if land Ongoing Marketing: Common Council Council Action is surplus RDA Drafts, action on option to on Offer to 1.signs Purchase purchase 2.Website Solicits and - Reviews RFPs ar a in 3.Other Entities g Transfer property Re uest for such as Go-EDc Draft 1.Websites to other pro osals Buyer Executes Development government entity p 2.For Sale Process RDAA roves: Option Agreement if Sin such as State or Sale PPce& needed county Development Agreement common council Approval of Common Council Approval If Development Common Needed:TIF,Development Agreement Council Action Agreement,CI. DRAFT DRAFT 7/17/19 RDA Land Acquisition and Sales Process - Redevelopment Authority (RDA) owned land The RDA has jurisdiction over spot-blighted properties and properties within redevelopment districts The purpose of this policy is to establish a transparent, accountable and effective land sales process that is consistent with state law requirements. The RDA reserves the right to deviate from this process when in the opinion of the RDA it is in the best interests of the RDA and/or City. RDA Actions Required: The RDA and Council share responsibility related to the acquisition of property and The RDA makes final determinations related to land disposition for spot-blighted properties and properties within redevelopment districts, including but not limited to entering into options and accepting offers. The RDA and Council share responsibility for approval of Development Agreements and Development Plans. Land Acquisition. The Common Council adopts a Redevelopment Plan or designates a blighted property in order for the RDA to acquire a blighted parcel. The RDA acquires and holds the title to the parcel. Determination whether to offer land for sale/redevelopment. The RDA determines if land will be made available for sale or redevelopment and may consider all relevant information including but not limited to the following factors - any Redevelopment Plan, the City's Comprehensive Plan other City plans, environmental assessment and remediation needs, building demolition requirements, and potential combination with other parcels in the future. The RDA may determine that the land should be banked until a future date, or may determine that the land should be made available for more immediate redevelopment. If the land is made available for sale, then the following general process shall apply. DRAFT Marketing Request for Proposals RDA determines whether a Request for Proposals (RFP) should be developed and distributed. Staff would develop the elements of the RFP including the existing land conditions, the City's future plans, potential costs of redevelopment, and desired redevelopment goals, including tax base and employment. RDA issues the RFP and reviews Proposals accepted in response to the RFP. The RDA determines which,if any,proposal is accepted. The RDA may meet in closed session when needed to discuss terms and bargaining strategy or for other purposes permitted by Wisconsin Statutes. The RDA selects the Proposal best judged to meet the City's goals or the RDA or may reject all proposals and reevaluate options related to the property or seek new or additional proposals. Staff drafts closing and other documents as needed. General Marketing The RDA determines the type of marketing to be used for selling the land. Staff shall place a "for sale" sign on the land. Staff shall list the available land on free or low-cost websites. Other economic development entities such as GOEDC and WEDC shall be alerted to the availability of the land. Review of Offers. The RDA will review any offers received based on signs, websites, and other common means on a first-come, first-served basis. The RDA may grant Options on land as circumstances dictate. Development or other Agreement, if required. Elements that typically require a formal Agreement include, but are not limited to: Tax Increment Financing (TIF)/Development Agreement, Capital Improvement Plans (CIP) and City investments, Leasing Agreements, Development Plans, etc. If an Agreement is required,the RDA and Common Council, if required,will review and approve the Agreement by resolution and may meet in closed session to discuss the terms and bargaining strategy, if necessary. DRAFT Review and Approval of the General Development and Specific Implementation Plans for Planned Developments. Upon approval of the Development Agreement by the RDA and Common Council, if the proposed project involves a Planned Development,the Developer shall submit the proposed General Development Plan and Specific Implementation Plans to the City for review by the RDA and Plan Commission and approval by the Common Council. Public Notice: RDA, Plan Commission and Common Council agendas, packets and minutes are posted to the City's website. Closed sessions are noticed as required by Wisconsin State Statutes. DRAFT DRAFT 7/17/19 City Industrial & Business Park Land Acquisition and Sales Process The City has created Industrial and Business Parks as part of the City's Economic Development Strategy. Sales of lands within the Industrial and Business Parks help retain and expand existing businesses and attract new businesses to Oshkosh. The purpose of this policy is to establish a transparent, accountable and effective land sales process that is consistent with state law requirements.The Council reserves the right to deviate from this process when in the opinion of the Council it is in the best interests of the City. Common Council Actions Required: The Common Council makes all final determinations related to Industrial and Business Park Land Acquisition and Sales transactions, including but not limited to entering into options, accepting offers and approval of Development Agreements and Development Plans. The Common Council determines if land should be acquired and developed for future Industrial and Commercial Development. The Council may consider all relevant information including but not limited to: the City's Comprehensive Plan, the City's Economic Development Plans, Environmental assessment and remediation needs of the property proposed to be acquired and developed, and potential expansion prospects with other parcels in the future. The City Council may determine that land which is acquired should be banked until a future date, or may determine that the land should be made available for more immediate development. If the land is made available for development, then the following general process shall apply. Marketing. Staff shall place a "for sale" sign on the land. Staff shall list the available land on free or low-cost websites. Other economic development entities such as GOEDC and WEDC shall be alerted to the availability of the land. Review of Offers —The City will review offers received based on signs, websites, and other common means on a first-come, first-served basis. Staff coordinates site plan and restrictive covenant review with GOEDC. The Common Council may grant an "Option for Purchase" or accept an "Offer to Purchase" on land when in the sole discretion of the Council it is in the best interests of the City to do so. DRAFT Development or other Agreement, if required. Elements that typically require a formal Agreement include, but are not limited to: Tax Increment Financing (TIF)/Development Agreement, Capital Improvement Plans (CIP) and City investments, Leasing Agreements, Development Plans, etc. If an Agreement is required, the Common Council will review and approve the Agreement by resolution at a council meeting and may meet in closed session to discuss the terms and bargaining strategy, if necessary. Review and Approval of the General Development and Specific Implementation Plans for Planned Developments. Upon approval of the Development Agreement by the Common Council, if the proposed project involves a Planned Development, the Developer shall submit the proposed General Development Plan and Specific Implementation Plans to the City for review by the Plan Commission and approval by the City Council. Public Notice: Plan Commission and Common Council agendas, packets and minutes are posted to the City's website. Closed sessions are noticed as required by Wisconsin State Statutes. DRAFT DRAFT 7/17/19 Surplus City Land Acquisition and Sales Process City property may at times be determined to no longer be convenient or necessary for continued city use, such as when a utility facility may be removed or replaced. In addition, City departments such as Public Works,Parks and Transportation may identify a need for land acquisitions for City projects—such as streets, stormwater facilities,parks and parking lots. In some cases,there may be land that can be sold for development after the City project is completed. The purpose of this policy is to establish a transparent, accountable and effective land sales process that is consistent with state law requirements for property formerly used by the City or acquired for city projects but which is determined to be excess or no longer necessary for city use and declared surplus. The Council reserves the right to deviate from this process when in the opinion of the Council it is in the best interests of the City. Common Council Actions Required: The Common Council makes all final determinations related to Land Acquisition and Sales transactions for these types of property,including but not limited to determinations to acquire property,determinations whether property is surplus, and accepting offers for purchase. Land Acquisition. City Departments identify the need for a project requiring land acquisition and budget for such acquisition in the City Capital Improvements Plan (CIP). The Common Council approves the Capital Project, budget, and land acquisition for a City project. The City Department implements the land acquisition and constructs the project as approved by the Common Council. Recommendation of Surplus Property. City Departments shall at the completion of a project for land acquired for projects and at least annually for all real property under their Department control review and determine if any property is surplus and could be sold. The determination whether property is surplus should be based on all relevant information and consider —the potential for future needs by any City Department or Division, Redevelopment or other City Plans, environmental assessment and remediation needs, and potential combination with other parcels in the future. The City Department may also consider whether the land should be made available to another City, County or State department or entity. DRAFT Common Council determines if the land should be retained by the City or sold. The Council shall review all property recommended for consideration as surplus by Departments and may consider all relevant information including but not limited to: the City's Comprehensive Plan, the City's CIP and Facilities Plans, Environmental assessment and remediation needs of the property proposed to be acquired and developed, and potential expansion prospects with other parcels in the future. The Common Council may determine that land should be banked until a future date or may determine that the land should be made available for sale or disposition to a State, County or other entity. If the land is made available for sale, then the following general process shall apply. Marketing for selling the land. Proposals Process A Request for Proposals (RFP) or Response to Development Proposal may be developed. Staff would develop the elements of an RFP requesting proposals including the existing land conditions, the City's future plans, potential costs of redevelopment, and desired redevelopment goals, including tax base and employment. Review of Proposals. Council will approve responses to Development Proposals. The Common Council determines which Request for Proposals, if any, proposal is accepted. The City Council may meet in closed session when needed. The Common Council selects the Proposal best judged to meet the City's goals or may reject all proposals and reevaluate options related to the property or seek new or additional proposals. Staff draft closing documents as needed to discuss terms and bargaining strategy or for other purposes permitted by Wisconsin Statutes. General Marketing - Staff shall place a "for sale" sign on the land. Staff shall list the available land on free or low-cost websites. Other economic development entities such as GOEDC and WEDC shall be alerted to the availability of the land. If the location or other characteristics of the property make it of interest or use to a limited market, such as an adjoining property owner or GO-HNI or other similar organization, staff may approach such person/organization(s) for the purpose of determining their interest in the property and proceed on that basis. DRAFT Review of Offers. The City will review offers received based on signs, websites, and other common means on a first-come,first-served basis.The Common Council may grant Options on land or accept an Offer to Purchase on land when in the sole discretion of the Council it is in the best interests of the City to do so. The Plan Commission considers the land disposition. The Plan Commission reviews the proposed land disposal and makes a land disposition recommendation to the City Council. Factors the Plan Commission considers include but are not limited to: the City's Comprehensive Plan, special area plans, Redevelopment Plans, Utility and Public Works Plans and other City needs. Common Council takes action on the proposed land disposition. Public Notice: Plan Commission and Common Council agendas, packets and minutes are posted to the City's website. Closed sessions are noticed as required by Wisconsin State Statutes.