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HomeMy WebLinkAbout03.09.20 RDA Full AgendaREDEVELOPMENT AUTHORITY of the City of Oshkosh c/o Community Development Department 215 Church Ave., PO Box 1130 Oshkosh, WI 54902-1130 (920) 236-5055 (920) 236-5053 FAX �'' �f http://www.ci.oshkosh.wi.us Oshkosh 0 a 1] REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH City Hall Room 404 4:00 p.m. March 9, 2020 ROLL CALL H. ALLEN DAVIS Executive Director LORI PALMERI Chairman CONSENT: Approve Minutes from January 15, 2020 and Closed Session January 15, 2020 Minutes NEW BUSINESS: 20-06 Determination of Necessity; Establish Fair Market Value; Authorize Purchase of 706 South Main Street ($908,000) ➢ ADJOURNMENT REDEVELOPMENT AUTHORITY MINUTES January 15, 2020 PRESENT: Thomas Belter, Steve Hintz, Jason Lasky, Susan Panek EXCUSED: Jack Bermingham, Lori Palmeri, Archie Stam STAFF: Allen Davis, Executive Director/Community Development Director; Darlene Brandt, Grants Coordinator; Andrea Flanigan, Recording Secretary Vice Chairman Belter called the meeting to order at 4:00 pm. Roll call was taken and a quorum declared present. The minutes of December 17, 2019 and Closed Session December 17, 2019 were approved as distributed. (Lasky/Panek). 20-01 Approve Zone Change from Urban Mixed Use District (UMU) to Urban Mixed Use District with a Planned Development Overlay (UMU-PD); 700 Block of South Main Street Motion by Panek to move Res. 20-01 Seconded by Hintz. The City is zoning the parcel with a Planned Development overlay so when the plan comes back, Mr. Dumke and his team will have the correct zoning for his project and help achieve redevelopment of that site. Mr. Belter inquired who would approve the planned development when it comes time. Mr. Davis stated RDA, Plan Commission and Council would all review and vote to approve the planned development for the site. Mr. Davis stated Mr. Hess presented the project to Council last night for TIF financing which the RDA could become involved in. Also in order for this project to go through, the LIHTC (Low Income Housing Tax Credits) funds would need to be awarded to Mr. Durnke. Ms. Panek inquired what would happen if they were not awarded the LIHTC funds. Mr. Davis stated they would likely try again for funding next year. The item was called. Motion carried 4-0. RDA Minutes January 15, 2020 Page 1 20-02 Approve Continuing Urban Green Space Use; Northeast Corner of Central Street and West Parkway Avenue Motion by Panek to move Res. 20-02 Seconded by Laskey. Mr. Hintz inquired if this was a year by year approval. Mr. Davis stated this would be approved each year to ensure that everyone is satisfied with the project and maintenance of the site. Ms. Panek asked if there was any reason to not do a longer term approval. Mr. Davis stated if someone would approach the RDA and want to build on it, the RDA may consider not renewing the property as green space. The RDA does hold the property for future redevelopment. Mr. Hintz inquired if anyone used the green space. Ms. Brandt responded the neighborhood uses it. There are children s parties and an education area is available for gardening. If the RDA would want to approve it for more than one year, it would need to go back to Plan Commission and Council since it was approved by both boards as a conditional use permit under the condition it would be approve by the RDA annually. Mr. Lasky inquired if it were to be permanent can the property be assessed through the neighborhood association. Mr. Davis stated the neighborhood association would not be able to asses for this if it were to become permanent. The item was called. Motion carried 4-0. 20-03 Approve Continuing Urban Green Space Use; Southeast Corner of Ida Avenue and Franklin Street Motion by Lasky to move Res. 20-03 Seconded by Panek. Mr. Lasky inquired if it is typical of the RDA to create a green space on individual parcels such as this property. Mr. Davis responded it is unique to these two properties. The item was called. Motion carried 4-0. RDA Minutes January 15, 2020 Page 2 20-04 Declare and Approve Disposition of Surplus Property for Future Redevelopment Authority Acquisitions to Habitat for Humanity of Oshkosh Restore Motion by Lasky to move Res. 20-04 Seconded by Panek. Mr. Davis stated this relationship between Habitat for Humanity and the City allows Habitat to salvage property from the residential and commercial properties acquired by the RDA. This ends up saving the RDA money on demolition costs and reduces waste. Mr. Hintz inquired if this applies to any RDA property in the City. Mr. Davis confirmed the agreement applies to all RDA property. Ms. Panek inquired if Habitat could refuse to salvage from a property. Ms. Brandt stated Habitat can refuse and there are some law as to what they can salvage which they are aware of. The item was called. Motion carried 4-0. 20-05 Approve 2020 Pilot Housing Stock Improvement Programs: New Construction, Code Compliance, and Historic Preservation Motion by Panek to move Res. 20-05 Seconded by Lasky. Mr. Davis stated three new programs were created at the direction of Council to staff which includes a Code Compliance program, Historic Preservation Program and a New Construction program. The RDA may play a role in some of these programs, especially the New Construction program which helps fund development on residential RDA lots in the City. Mr. Hintz inquired with these 10-12 properties the RDA would acquire each year in targeted areas, is it possible we would have to initiate the offer instead of waiting for the owner to approach the City. Mr. Davis stated a draft letter is in the process of being created to send to property owners that the RDA may be interested in. This approach would be more proactive as opposed to the reactive approach taken in the past. The board discussed the Quality of Life map which shows areas of the City that are in need of housing improvements and blight removal. Mr. Belter stated these maps and programs gives clear direction to staff about what properties to pursue. RDA Minutes January 15, 2020 Page 3 Mr. Hintz stated we have an idea of where the rougher areas are but we there is still a mixed view on targeted areas as well as owners approaching the City and the City sending out letters to individuals. Mr. Davis stated the City will consider properties that are offered by the owner. The blocks identified on the map are target areas but there are also corridors and redevelopment areas that will be a priority for acquisitions and blight removal. The item was called. Motion carried 4-0. Discussion Long Term Community Garden Since Mayor Palmeri was not in attendance for the meeting, the board decided to lay over the discussion until the March meeting. EXECUTIVE DIRECTOR'S REPORT Mr. Davis provided the Executive Director's update. Motion by Panek to convene into Closed Session related to the negotiation of land for slum and blight elimination at 1628 Liberty Street and 1004 South Main Street 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 Lasky Motion carried 4-0. There was no further discussion. The meeting adjourned at approximately 4:35 PM. (Panek/Lasky) Respectfully submitted, Allen Davis Executive Director RDA Minutes January IS, 2020 Page 4 CITY OF OSHKOSH REDEVELOPMENT AUTHORITY City Hall Room 404 January 15, 2020 CLOSED SESSION MINUTES CALL TO ORDER (Vice Chairperson Belter) 4:35 pm ROLL CALL _X_Thomas Belter _ Jack Bermingham Lori Palmeri X Steve Hintz _X_Jason Lasky _X_Sue Panek Archie Stam ALSO PRESENT: Allen Davis, Executive Director / Community Development Director; Darlene Brandt, Grants Coordinator; Andrea Flanigan Recording Secretary Discussion held regarding negotiations for slum and blight elimination at 1628 Liberty and 1004 South Main Street. A motion was made and seconded to adjourn. Carried by voice vote. The closed session meeting adjourned at approximately 5:04 PM. Respectfully submitted, Allen Davis Executive Director/ Community Development Director REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH, WISCONSIN MARCH 9, 2020 20-06 RESOLUTION (CARRIED LOST LAID OVER WITHDRAWN ) PURPOSE: DETERMINATION OF NECESSITY; ESTABLISH FAIR MARKET VALUE; AUTHORIZE PURCHASE OF 706 SOUTH MAIN STREET ($908,000) WHEREAS, the Redevelopment Authority previously approved the South Shore Redevelopment Area; and WHEREAS, it is in the best interests of the citizens of the City of Oshkosh to acquire property within the boundaries of said Redevelopment Area to assist in the elimination and prevention of blighting influences and promote urban renewal; and WHEREAS, the property and interest to be acquired includes land and buildings, if any, exclusive of equipment and fixtures both movable and immovable, and is described as: 706 S. MAIN STREET LOTS 1, 2, 3, 4 ALSO LOT 12 EXCLUDING WEST 20 FEET OF SOUTH 70 FEET ALSO ALL OF LOT 13 BLOCK 12 PLAT OF ORIGINAL 3RD WARD, CITY OF OSHKOSH, WINNEBAGO COUNTY, WISCONSIN (TAX #903-0138-0000) NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Authority of the City of Oshkosh that the Authority certifies that in order for said purpose to be accomplished, it is necessary for the property described above to be acquired. It is further determined by the Authority that acquisition of said property is hereby determined necessary pursuant to the provisions of Chapters 32 and 66 of the Wisconsin Statutes. BE IT FURTHER RESOLVED that the value of the property to be acquired, as described above, is hereby established at Nine Hundred Eight Thousand Dollars ($908,000.00). Money for this purpose is appropriated from City of Oshkosh Capital Improvement Program Funds. MARCH 9, 2020 20-06 RESOLUTION CONT'D BE IT FURTHER RESOLVED that the Redevelopment Authority approves entering into an appropriate escrow agreement with the seller for environmental related expenditures in the amount of $25,000. Money for this purpose is appropriated from the Redevelopment Authority's City funds. BE IT FURTHER RESOLVED that the proper Redevelopment Authority officials are authorized and directed to purchase said property and execute all documents necessary to consummate this transaction. TO: City of Oshkosh Redevelopment Authority FROM: Allen Davis, Community Development Director DATE: March 4, 2020 SUBJECT: March 9, 2020 Agenda Item BACKGROUND Since 2003, the RDA has been working to implement the South Shore Redevelopment Plan and acquired most of the property in the Sawdust District, north of 91h Avenue and east of Main Street, for future redevelopment. The City is in the process of demolishing 43 E. 71h this winter, with the demolition of Rec Lanes and the pro shop to follow this spring. At the same time, Art Dumke is working on the redevelopment of the Pioneer Island and Marina. Mr. Dumke has stressed how important the redevelopment of this part of the Sawdust District is for his plans for the Pioneer redevelopment. To that end, Mr. Dumke has acquired 706 S. Main Street, Lueck's Hardware, and is prepared to offer the property to the City/RDA for $908,000. ANALYSIS The 706 S. Main Street property was included in the South Shore Redevelopment District Plan and the RDA has acquired all of the surrounding parcels in conformance with the Redevelopment Plan. In addition, the City has continued work on refining the Sawdust District Plan, and this area is planned for redevelopment with mixed commercial/office and residential uses. The City is also planning to convert Pioneer Drive into a river walk and extend 91h Ave. east to the CN railroad tracks when development warrants the investment. 706 S. Main St. remains at the center of all these efforts. The RDA had issued the Request for Proposals (RFP) for the area in 2018, without the 706 S. Main St. property. The City/RDA received no proposals. Developers had indicated that they did not respond to the RFP because there were too many unknowns with the surrounding properties — CN, Decade and 706 S. Main St. included. Since that time, the City/RDA has obtained the CN and Decades properties. The 706 S. Main St. property is the last remaining parcel. The Luecks have already relocated their business to Harrison St. Mr. Dumke is prepared to offer the property to the RDA as a vacant property for his costs, which is $908,000. The $25,000 in segregated funds will be set aside in the RDA account to cover any costs related to environmental liability until a Voluntary Party Liability Exemption (VPLE) is obtained for the property. The segregated funds come from previous RDA property rents and sales. If there are no issues, the $25,000 would be made available for other RDA activities upon issuance of the VPLE. The recently adopted Acquisition/Disposition policy is attached and the process to be followed is highlighted. After acquisition and demolition, the RDA plans to issue a new, updated RFP later this spring. Staff believes the acquisition of the Lueck's site will also generate greater interest for potential respondents to the RFP. FISCAL IMPACT The proposed purchase price can be accomplished with existing City Capital Improvement Program funds and TIF #20 funds appropriated in 2019 and 2020. RECOMMENDTION The RDA approves the Determination of Necessity, Establishes Fair Market Value, and Authorizes the Purchase of 706 S. Main Street for $908,000. 10U J, J'An Jr City of Oshkosh maps and data are intended to be used for general identification purposes only, and the City of Oshkosh assumes no liability for the accuracy of the information. Those using the information are responsible for verifying accuracy. For full disclaimer please go to www.ci.oshkosh.wi.us/GlSdisclaimer N 1 in=0.04mi 1 in = 200 ft Printing Date: 3/4/2020 Prepared by: City of Oshkosh, WI Oshkosh lanning Base Map - For User: andrea 1� J J, 1�J1 1 J t1 J r City of Oshkosh maps and data are intended to be used for general identification purposes only, and the City of Oshkosh assumes no liability for the accuracy of the information. Those using the information are responsible for verifying accuracy. For full disclaimer please go to www.ci.oshkosh.wi.us/GlSdisclaimer N 1 in = 0.01 mi A, 1 in=50ft Printing Date: 3/4/2020 Prepared by: City of Oshkosh, WI of Oshkosh Base Map - For Windows Retail Property 706 S. Main Street, Oshkosh, Wisconsin L V) N U O 1 d Q1 V7 C O .t L 73 CY U Q J N 2 Q V7 (B U O U Lai C � N /0 N O O Y O U E Q N Q O E •� L'o o � u° u c O c a m C J - - J � V6 > O O a a— C ON U C Y -O al c 0 J Q T ,Y Q Y Q u 4 to T v 0 N N— E �- bD — O !� C O. C C rC n] 7 N O '_ U N N C N CL Y > O N N W N d tea, ai N 'us o�-oa v u E� E o Q aY cN oENo E E� 0E'° 3v° 3pa v02vp>�'; E E _ `Yocsu u00Q u c O pK ra o a o N a p 0 E N mo CL Ea U a F m E: p L E o o u Q V Q � � C al N O N � N aw m p p c ._ c .... 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Q O- o LL 0> a) N C 2uE°1 Q („ ) av c GpQ " C W O Q O N > F+ U O_ N Q—> p al C 3LL_ E 0o in 2i O u oo O V1 W Q u F- N Y o OaaJ Q E a m aj E aa) uz c J 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. 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. 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.