HomeMy WebLinkAbout19-35 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(CARRIED LOST LAID OVER WITHDRAWN )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.
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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