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(CARRIED LOST LAID OVER WITHDRAWN )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.
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information. Those using the information are responsible for verifying accuracy. For
full disclaimer please go to www.ci.oshkosh.wi.us/GlSdisclaimer
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full disclaimer please go to www.ci.oshkosh.wi.us/GlSdisclaimer
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Retail Property
706 S. Main Street, Oshkosh, Wisconsin
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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.