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Home My WebLink About12.17.19 Full Agenda REDEVELOPMENT AUTHORITY of the City of Oshkosh c/o Community Development Department 215 Church Ave.,PO Box 1130 Oshkosh,WI 54902-1130 OA% (920)236-5055 H.ALLEN DAVIS (920)236-5053 FAX Executive Director cit" http://www.ci.oshkosh.wi.us Oct, �C15h LORIPairman JJt� 11 J Chairman REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH City Hall Room 404 12:00 p.m. December 17, 2019 1) ROLL CALL 2) CONSENT:Approve Minutes from November 20, 2019 and Closed Session November 20,2019 3) NEW BUSINESS ➢ 19-35 Approve Amendment to TID Development Agreement with Merge, LLC for Redevelopment of Parcels H, I and J within the Marion Road Redevelopment Area 4) ADJOURNMENT REDEVELOPMENT AUTHORITY MINUTES November 20,2019 PRESENT: Thomas Belter, Jack Bermingham Jason Lasky, Steve Hintz, Susan Panek, Archie Stam EXCUSED: Lori Palmeri STAFF: Allen Davis, Executive Director/Community Development Director; Darlene Brandt, Grants Coordinator;Andrea Flanigan, Recording Secretary Chairperson Belter called the meeting to order at 4:00 pm. Roll call was taken and a quorum declared present. The minutes of September 18, 2019 and September 18, 2019 Closed Session were approved as distributed. (Stam/Panek). Motion by Stam to convene into Closed Session related to the RFPs for 71n & 811,Avenue and a property in River East Neighborhood and pursuant to Section 19.85(1)(e) to discuss bargaining options, strategy, and parameters where competitive bargaining reasons require a closed session. Seconded by Panek Motion carried 6-0. RDA Open session reconvened at 5:08 PM. Roll call was taken and a quorum declared present. Res. 19-30 Approve Offer to Purchase Vacant Property on South Main Street between Th Avenue and 8th Avenue; Alexander Bishop Real Estate Capital Markets, LLC ($1.00) Motion by Hintz to move Res. 19-30. Seconded by Stam. There was no discussion. The item was called. Motion denied 0-6. Res. 19-31 Approve Offer to Purchase Vacant Property on South Main Street between Th Avenue and 81h Avenue; Oshkosh Bier&Brewing,LLC ($60,000.00) Motion by Stam to move Res. 19-31. Seconded by Bermingham. RDA Minutes November 20,2019 Page 1 There was no discussion. The item was called. Motion denied 0-6. Res. 19-32 Approve Offer to Purchase Vacant Property on South Main Street Between 71h Avenue and 81h Avenue; Sawdust District Lofts-Oshkosh,LLC ($1.00) Motion by Lasky to move Res. 19-32. Seconded by Hintz. There was no discussion. The item was called. Motion carried 6-0. Res. 19-33 Approve Offer to Purchase Vacant Property on South Main Street between 71h Avenue and 81h Avenue;Bridgeview Holdings,LLC ($55,802) Motion by Stam to move Res. 19-33. Seconded by Bermingham. There was no discussion. The item was called. Motion denied 0-6. Mr. Belter stated the presentations by all were very well put together and were all good uses for the site. The RDA chose the proposale that would be best use for this parcel. There are alternate sites in the Sawdust District Area for these types of projects that were not chosen tonight. Res. 19-34 Award Demolition Bid for 43 E. 7th Avenue Block to Linnco, Inc. ($467,714.50) Motion by Stam to move Res. 19-34. Seconded by Panek. Mr. Davis stated the City put out bids for demolition of 43 E. 711, Avenue and surrounding area as well as 710 and 716 South Main St. Four bids were received and Linnco, Inc. was the low bidder. After demolition is complete an RFP will be sent out for the RDA owned landed from South Main Street to the river. Once the buildings are down the City will be able to do the Phase II testing on the sites to get a better understanding of what remediation may need to be done. Mr. Lasky inquired what will be done with the vegetation. Ms. Brandt responded the City does not anticipate removing all of the trees in the area, but the impervious surface will be removed and grass planted. RDA Minutes November 20,2019 Page 2 Mr. Lasky inquire if there is contamination under the impervious surface. Mr.Davis responded yes there is likely contamination,but they City has not tested it since recently acquiring the land. The item was called. Motion carried 6-0. Discussion Long Term Community Garden Mr. Davis stated the RDA has granted the use of Community Gardens on RDA lots on a temporary basis.Residents have taken advantage of these in the past but since time and materials are invested in these, some of the neighborhoods are looking for something more permanent. Mr. Davis recommended deferring action at this time since Mayor Palmeri has been involved in these discussions. The RDA can begin thinking about if permanent sites would be allowed and what terms would be placed on the Community Garden. Staff will keep this item on the next agenda. Executive Director's Report Mr. Davis reviewed the funding for acquisition/demolition policy and new programs for 2020 that were provided in the RDA packet. The goal is to acquire and demolish 10-12 projects per year which is about double what was done in the past. New City programs include an incentive of up to $15,000 to build on a vacant RDA lot,Historic Restoration and a Code Compliance program to help with bringing properties up to code that may not be able to afford it. Ms. Panek requested a financial report of available funds for acquisition demolition so there is a sense of funds available when deciding on acquiring properties. Mr. Davis provided updates to the RDA on the Executive Director's Report. There was no further discussion. The meeting adjourned at approximately 5:31 PM. (Panek/Stam) Respectfully submitted, Allen Davis Executive Director RDA Minutes November 20,2019 Page 3 CITY OF OSHKOSH REDEVELOPMENT AUTHORITY City Hall Room 404 November 20, 2019 CLOSED SESSION MINUTES CALL TO ORDER (Vice Chairperson Belter) 4:02 pm ROLL CALL _X—Thomas Belter _X_Jack Bermingham Lori Palmeri X Steve Hintz _X_Jason Lasky _X—Sue Panek X Archie Stam ALSO PRESENT: Allen Davis, Executive Director/Community Development Director;Darlene Brandt, Grants Coordinator; Kelly Nieforth, Economic Development Services Manager;Andrea Flanigan Recording Secretary Discussion held regarding negotiations for slum and blight elimination in a property in the River East Neighborhood and Request for Proposals for 7'h &811,Avenue property. A motion was made and seconded to adjourn. Carried by voice vote. The closed session meeting adjourned at approximately 5:08 PM. Respectfully submitted, Allen Davis Executive Director/ Community Development Director REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH,WISCONSIN DECEMBER 17, 2019 19-35 RESOLUTION (CARRIED LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE AMENDMENT TO TID DEVELOPMENT AGREEMENT WITH MERGE, LLC FOR REDEVELOPMENT OF PARCELS H, I AND J WITHIN THE MARION ROAD REDEVELOPMENT AREA WHEREAS, the City of Oshkosh created Tax Incremental District (TID) #36 and approved the Development Agreement with Merge, LLC ; and WHEREAS, Merge, LLC has requested an amendment to the Development Agreement to extend the deadline to transfer property for Parcels H, I and J within Marion Road Redevelopment area; and NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Authority of the City of Oshkosh that the proper City officials are hereby authorized and directed to enter into an Amendment to the TID Developer Agreement with Merge, LLC for redevelopment of the Parcels, H, I and J within Marion Road Redevelopment area, to extend the date for the Property Acquisition Contingency within the Development Agreement from December 31, 2019 to March 31, 2020. All other Terms and Conditions of the Agreement shall remain the same. ^. �itY 0T Oshkosh TO: Honorable Mayor and Members of the Redevelopment Authority FROM: Allen Davis, Community Development Director DATE: December 12, 2019 RE: Approve Amendment to TID Development Agreement with Merge, LLC for Redevelopment of Parcels H, I &J within the Marion Road Redevelopment Area BACKGROUND The City Council approved the TID #36 creation on June 11, 2019 to assist Merge, LLC with the redevelopment of multiple parcels located within the Marion Road Redevelopment Area. The Development Agreement that the RDA and Council approved on August 13, 2019, included a contingency that the Developer was required to acquire the property from the Oshkosh Redevelopment Authority (RDA) on or before December 31, 2019. The land transfer has taken longer than anticipated due to specific exceptions from the title commitment that need to be removed and analyzing the contamination on the parcels. Merge, LLC has requested an amendment to the Development Agreement extending the contingency deadline to March 31, 2020. All other Terms and Conditions of the Agreement shall remain the same. ANALYSIS Following is a summary of the main provisions of the Development Agreement: • Provision for the development of the property in 3 phases with the initial phase beginning construction on or before June 30, 2020 and completion of all 3 phases on or before December 31, 2023 • Payment of 90% of the available tax increment from the property through paygo financing to a maximum principal amount equal to 25% of the total project costs expended by the Developer; no interest will accrue on the principal due • A lookback clause in year 10 of the Agreement allowing the City to review the actual IRR and adjust the City Contribution should the project achieve a 15% annual IRR over the payment term • Payment of the full amount to the Developer is anticipated to occur in 2038 (The TIF District could remain open through 2047 to allow for additional public projects if desired) • During the term of the Development Agreement the Developer agrees to provide the City an annual report setting forth general rental amounts as well as information pertaining to occupancy and vacancy City Nall,215 Church Avenue P.O.Box 1 130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us • Provisions related to existing environmental conditions on the property which will be addressed by Merge during project construction, including appropriate liability protections for the City • Provisions requiring Merge to be retained as the manager of the property during the term of the Agreement or approval of assignments of the Agreement to non-affiliated entities The proposed Amendment to the Development Agreement extends the deadline for the land acquisition between the RDA and Merge LLC to March 31,2020. All other Terms and Conditions of the Agreement shall remain the same. FISCAL IMPACT There is no anticipated impact from approval of the resolution and the extension of this deadline. RECOMMENDATION The RDA approves the Resolution. Submitted, Allen Davis Community Development Director City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us