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HomeMy WebLinkAbout12. 20-102 MARCH 10, 2020 20-102 RESOLUTION (CARRIED 6-0 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE DETERMINATION OF NECESSITY; APPROVE BUDGET AMENDMENT; AUTHORIZE REDEVELOPMENT AUTHORITY TO ACQUIRE 706 SOUTH MAIN STREET ($908,000) INITIATED BY: COMMUNITY DEVELOPMENT REDEVELOPMENT AUTHORITY RECOMMENDATION: RDA Action March 9th WHEREAS, the Redevelopment Authority and Common Council previously approved the South Shore Redevelopment Project Area; and WHEREAS, it is in the best interests of the citizens of the City of Oshkosh to acquire property to improve residential neighborhoods and eliminate blighting conditions within said Redevelopment Area; and WHEREAS, the owner of the 706 South Main Street, is willing to sell the property to the Redevelopment Authority; and WHEREAS, at its March 9, 2020 meeting the Redevelopment Authority approved acquiring said property for $908,000.00 and entering into an escrow agreement with the seller for environmental related expenditures in the amount of$25,000; and WHEREAS, the Common Council has previously approved the City's Capital Improvement Budget for 2019 and 2020 and it is necessary to amend such Budgets for the purpose of funding the purchase of this property; and amend the Redevelopment Authority's 2020 budget to allocate$25,000 for said escrow agreement. MARCH 10, 2020 20-102 RESOLUTION CONT'D NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the Common Council certifies it is necessary for the Redevelopment Authority to acquire 706 South Main Street pursuant to the provisions of Chapter 66 of the Wisconsin Statutes. BE IT FURTHER RESOLVED that the following 2019 Capital Improvements Budgets are hereby amended to fund said land purchase: 0534-1040-7216-67903 $412,000 2019 CIP 7th& 8th Ave Remediation 0534-1040-7216-67904 $300,000 2019 CIP 1 E. 8th Ave Remediation BE IT FURTHER RESOLVED that the following 2020 Redevelopment Authority Budget is hereby amended for the purpose of establishing a $25,000 escrow account as noted above: 0901-0999-xxx $25,000 2020 Redevelopment Authority BE IT FURTHER RESOLVED that the proper Redevelopment Authority officials are authorized and directed to purchase said property for a total of $908,000.00 and execute all documents necessary to consummate this transaction. Money for this purpose is hereby appropriated from the following accounts: 0534-1040-7216-67903 $412,000 7tn &8th Ave Remediation 0534-1040-7216-67904 $300,000 1 E. 8th Ave Remediation 0323-0740-6401-63920 $96,000 2019 CIP Scattered Site 0534-1040-7216-67004 $100,000 2020 South Shore Redevelopment BE IT FURTHER RESOLVED that the proper City officials are hereby authorized and directed to enter into an appropriate escrow agreement and any and all documents necessary for this transaction. of Oshkosh TO: Honorable Mayor and Members of the Common Council FROM: Allen Davis, Community Development Director DATE: March 5, 2020 RE: Approve Determination of Necessity; Approve Budget Amendment; Authorize Redevelopment Authority to Acquire 706 South Main Street ($908,000) BACKGROUND The City and RDA has acquired most of the property in the Sawdust District, north of 9th Avenue and east of Main Street, for future redevelopment in conformance with the South Shore Redevelopment District Plan. The City is in the process of demolishing 43 E. 7"' 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 council recently approved the Sawdust District Plan. The City is also planning to convert Pioneer Drive into a riverwalk and extend 9t Ave. east to the CN railroad tracks when development warrants the investment. 706 S. Main St. remains at the center of all these efforts. At the Council's direction, the RDA had issued a 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 at the time—CN, Decade and 706 S. of Oshkosh Main St. included. Since that time, the City/RDA has obtained the CN and Decade properties. The 706 S. Main St. property is the last remaining, un-acquired parcel. The previous owners, Lueck's Hardware, has already relocated to Harrison Street. Mr. Dumke is prepared to offer the property to the City/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 706 S. Main Street site will also generate greater interest for potential respondents to the RFP. FISCAL IMPACT The proposed purchase price can be accomplished using existing City Capital Improvement Program funds and TIF #20 funds appropriated in 2019 and 2020. The purpose of the Budget Amendment is to re-allocate existing funds from remediation in the Sawdust District to acquisition in the Sawdust District. RECOMMENDTION The Council approves the Determination of Necessity, approves the Budget Amendment, and authorizes the Redevelopment Authority to acquire 706 S. Main Street for $908,000. Respectfully Submitted, Approved, VI: U(414 ,Cr/v ,.i Allen Davis ohn Fitzpatrick Community Development Director Assistant City Manager L_ 1 o/ �l -6T.H Au \ aTH-Au X sT-H-au 8T-H a- I -� _ I — LI I I -! I ❑o _ Z ao�H Au 14DT-H-au — - FF Fi 1 1:1 1 1 1-1 1-11 I , _ N / c � J IjI J n , -. A 1 in = 0.04mi r 1 in = 200ft 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 Printing Date: 3/4/2020 information.Those using the information are responsible for verifying accuracy.For Oshkosh full disclaimer please go to www.ci.oshkosh.wi.us/GlSdisclaimer Prepared by:City of Oshkosh,WI L:\GIS-Maps\Planning Base Map-For Windows 10.mxd User:andreaf ntll®�_ Jtll � LO .it .I�iI�1:■r e� � I a i 62.10' I -T.A%/ (� o t 200.00, — lu inn 1 1' ' SA'''At - MAP ip IT - i ..`tA _ N 1 in =0.01 mi 1 in = 50ft 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 Printing Date: 3/4/2020 Oshkosh full disclaimer please go to www.ci.oshkosh.wi.us/GlSdisclaimer Prepared by:City of Oshkosh,WI LAGIS_MapsTlanning Base Map-For Windows 10.mxd User:andreaf Retail Property 706 S.Main Street, Oshkosh,Wisconsin T ^.J i e " C � N O ai o_ o � U a C a J O C (a -O — J � 6 — a � p a._— N N E n Q. C O ._ O tl a/ ✓�i C N N e, u a Eo �a v a aLCN � E E n c in ap • .�, U -O as v E L O V Q on v a, °i a, o � • VI N U CO D_ - fD 1 ° v C N � U u •� � to ` � � aD U � Q V Ct V � o� via oa x Q > c w In f0 •O 07 m OCO W C Q � � c � O .-iNOm • N C C C O v N O_ N °a fB � � r Q u E ° j • � a co c ° " m • U V a LL O � u0 Q C ra � � U � �c E � • fD C C v ° LU • m c Ea m Ew c /o 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 p h 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. � g g P P Y q 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 I 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 i 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. i 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.