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HomeMy WebLinkAbout20-06 706 S. MainREDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH, WISCONSIN MARCH 9, 2020 20-06 RESOLUTION (CARRIED LOST LAID OVER WITHDRAWN ) PURPOSE: DETERMINATION OF NECESSITY; ESTABLISH FAIR MARKET VALUE; AUTHORIZE PURCHASE OF 706 SOUTH MAIN STREET ($908,000) WHEREAS, the Redevelopment Authority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. 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 9thAvenue and east of Main Street, for future redevelopment. The City is in the process of demolishing 43 E. 7th 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. J'A alJr� 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=200ft Printing Date: 3/4/2020 Prepared by: City of Oshkosh, WI JI" Oshkosh _AGIS Mans\Planning Base Mao -For 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 1 in=50ft Printing Date: 3/4/2020 Prepared by: City of Oshkosh, WI �u Oshkosh Map - For Windows 10.mxd User: andrea Retail Property 706 S. Main Street, Oshkosh, Wisconsin V) N v U O L fo V) c m O N U Q m J N Q D 'O cB (B U 41 E E O U L oN 0 a o o E a ai Q O 3 p E _ o C L O a U O a uo O C - a3 'D J � > 3 OO C C To c C O 0)- c Yaal HCa •N�,N" C O E Oo 07 OON c mocE aNNv QQOB EQC Y vQ�c3 LoY O O d O E N i E0 O O L,ov N.� u aO Uarp c O-O V pK m O_m 4 A To E O Y c> 0 O �� a v Y C C N E N O M a u a/ F- 0 m L E ti o O O u Q Q m v a c Y m - n c `o i-, � N O C w u p C '- C Y w O = C O i� .. lu aJ E ai a) O O aCj C U Rti E N a p OQ Eames ` s p E-o O v c o' a0 o v ai F o a, 0 c O V a ai v c E as > n`o O^ C v r C U v c C L a/ o u a m Q E Q U Q U al pa O 7 m N J U U— Y d N n to O -0 - Q) In Q. u; 7 N a) Q — CD C \ U C p op — C 9 f60 u O 3 7 C O ti N m N Q E O 0 _ 0> C ? O o C o� y 7 u C U v O v O ° u n N o N O L.Q E o o� o v p a a, E a E '6 0 C O U Q m in 3 l7 u LL r O O-0 o > o C cm p 3 o C c o Vl N a: N � C C in cr ua Q C c) a- aO J > a/ oc `� w O� _ N c E .2 - O C al O al Q p V- a c `—° Q m o; tO V) E Y u s $ c E c 'a C a s Q oo C E Q @E O O.� aCOCO w mE — al CO � oo O` oo j N E> O-p oc C c wm IY w vua v p U Y ,., 0 > (w c a— V -W cO 0 , E w E aa) v c • m ,- a d D a) 'u cu p c c v `0 a— Qj v v as in O u O v� a1 Q U H W O .� ry m vOi O O v c E m E v o c �o J U Z 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 Retlitest 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.