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HomeMy WebLinkAbout24. 20-124 MARCH 24, 2020 20-124 RESOLUTION (CARRIED 7-0 LOST LAID OVER WITHDRAWN ) PURPOSE: AUTHORIZE THE SUBMISSION OF A WISCONSIN ECONOMIC DEVELOPMENT CORPORATION GRANT APPLICATION FOR THE COMMUNITY DEVELOPMENT INVESTMENT GRANT PROGRAM ON BEHALF OF MERGE URBAN DEVELOPMENT GROUP AND ERIC HOOPMAN OF GIBSON SOCIAL CLUB; ACCEPT FUNDS INITIATED BY: COMMUNITY DEVELOPMENT DEPARTMENT WHEREAS, the Wisconsin Economic Development Corporation (WEDC) has grant funds available for projects to support local initiatives with a downtown emphasis by providing financial incentives for projects that are downtown community driven; and WHEREAS, local municipalities are an eligible applicant and can apply for said grant funds; and WHEREAS, the City is applying for said grant funds for the proposed mixed use project at the southwest corner of Marion Road and Jackson Street and the historical renovation of 527 N. Main Street to offset costs incurred by the private developer. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the proper City officials are hereby authorized to submit a Community Development Investment grant application to Wisconsin Economic Development Corporation to obtain funds for said purpose. BE IT FURTHER RESOLVED that if said grant funds are awarded, the proper City officials are hereby authorized and directed to accept said funds, pursuant to the terms of the grant application, and to execute any and all documents and assurances which may be required for purposes of same. WE City of Oshkosh TO: Honorable Mayor and Members of the Common Council FROM: Kelly Nieforth, Economic Development Services Manager DATE: March 17, 2020 RE: Authorize the Submission of a Wisconsin Economic Development Corporation Grant Applications for the Community Development Investment Grant Program on Behalf of Merge Urban Development Group and Eric Hoopman for Gibson Social Club;Accept Funds BACKGROUND Staff is proposing to submit a CDI grant application to WEDC on behalf of the owners of Merge Urban Development and Gibson Social Club.The grant amount for each project shall not exceed $250,000 each and the funds will be used for redeveloping a parcel within the Marion Road Redevelopment Area and completing a historical renovation of a building on N. Main Street respectively. Merge Development Group, who will be closing on the last three RDA-owned parcels in the Marion Road Redevelopment Area, is proposing to construct a 200,000 sq ft multi-level, mixed use development that may include a restaurant, office space, retail, and residential. Gibson Social Club, owned by Eric Hoopman, is located at 537 N. Main in the city's downtown. The proposed historical renovation will convert the existing retail space into an event venue to be rented out for weddings, meetings, and other gatherings. ANALYSIS Merge Development Group will utilize the WEDC funds and the Opportunity Zone designation to assist with the redevelopment of Parcel J in the Marion Road Redevelopment Area. The proposed mixed use development aligns with the city's Comprehensive Plan and the Imagine Oshkosh Plan. The contaminated parcel has sat vacant for over fifteen years. City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us Gibson Social Club will utilize the WEDC funds and historical tax credits to assist with the historical renovation of 537 N. Main Street. The building will be converted to a gathering space in the city's downtown while paying homage to the historical use of the building, Gibson s Tire Co. and Gibson s Chevrolet and Cadillac.The intended use aligns with the city's Comprehensive Plan and Imagine Oshkosh Plan. City staff has worked with representatives of both projects in preparing the grant applications. A grant development agreement with each developer will need to be approved by Common Council at a future meeting which will outline how the grant funds will be disbursed and other WEDC grant requirements that need to be followed by the City and the property owners. FISCAL IMPACT There are no City funds included in the WEDC CDI grant applications or implementation. The property owners will be paying the City's staff time for grant administration, mainly the grant draws. RECOMMENDATION The Oshkosh Common Council approves the submission of the WEDC CDI grant applications and accepts the WEDC CDI grant funds should they be awarded to the City. Respectfully Submitted, Approved: Kelly Nieforth Mark A. 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