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HomeMy WebLinkAbout09.15.2021 RDA Minutes 1 REDEVELOPMENT AUTHORITY MEETING MINUTES September 15, 2021 PRESENT: Lori Palmeri, Susan Panek, Thomas Belter, Archie Stam, Steve Hintz, Jack Bermingham EXCUSED: Jason Lasky STAFF: Kelly Nieforth, Executive Director/Community Development Director; Mark Lyons, Planning Services Manager; Steven Wiley, Associate Planner Chairperson Palmeri called the meeting to order at 4:03pm. Roll call was taken and a quorum declared present. The minutes and closed session minutes of August 19, 2021 were approved as written. (Belter, Stam) 21-16 Approve Appointment of Secretary/Executive Director for the Redevelopment Authority of the City of Oshkosh Motion by Belter to approve 21-16. Seconded by Panek. Ms. Palmeri stated that the Executive Director has traditionally been the Community Development Director. She noticed in the bylaws that they do not have a fixed term in there and she would leave that to the group to discuss if that needs to be added or not. Mr. Hintz stated that he did not think a term needed to be added given that the Executive Director role is linked to the Community Development Director position. Motion carried 6-0. 21-17 Approve Offer to Purchase 1024 Windsor Street; Vienola Properties LLC ($20,000.00) Motion by Stam to approve 21-17. Seconded by Belter. Ms. Nieforth stated that the City was approached by multiple organizations last year or the year before because the owner of this property needed some assistance. The RDA declared the home blighted due to the condition and contents of the home at that time. RDA purchased and razed the home and they now have an offer for the property. Mr. Lyons stated that Healthy Neighborhoods Initiative established the New Homes in Your Neighborhood program in 2020 to provide a cash grant for in-fill properties. If someone was 2 willing to buy an RDA property and build a new owner-occupied home on it, the City would provide a cash grant to help offset that cost and encourage in-fill development. Mr. Wiley stated that it is a $15,000 reimbursable grant that is reimbursed upon issuance of a certificate of occupancy. The applicant presented plans for a single family ranch home that staff feel is appropriate architecturally for the neighborhood. If RDA approves the offer to purchase, they will enter into a development agreement with the applicant and move forward with the project. Ms. Nieforth stated that they are excited about this proposal and they are hoping that the program will take off and more developers will utilize it. Ms. Panek asked if the estimated value in the letter is for the home they are planning. Ms. Nieforth replied affirmatively. Ms. Palmeri asked how much has been invested for demolition and cleanup so far. Ms. Nieforth replied that the razing was done by the Streets Department, so they would have to pay for any tipping fees as well as maintenance for snow removal and grass cutting. Ms. Palmeri asked if that was charged directly to the RDA. Ms. Nieforth replied affirmatively. Motion carried 6-0. Michigan Street and West 4th Avenue Developer Presentations Mr. Todd Hutchison, Wisconsin Redevelopment, LLC stated that he moved to Oshkosh six years ago. At that time, he saw the site and was interested in developing something on it, but it was under option then. Their proposal is for 29 single-family zero lot line homes that wrap around the site. The units have two car attached garages and balconies overlooking the river area with a common area in the middle and a private drive down the center to access homes on either side of the street. Each home is owned by the homeowner and there’s a homeowner association to take care of common areas. It is a $10,000,000 project and they are not asking for any assistance from the City at this point. They don’t know what the soil conditions are and could need City assistance if any extraordinary conditions are present. They are looking at a 10% return in addition to the developer fee by selling the homes for $25,000 more or through a reduction in purchase price for some of the holding costs. They have a two year holding period, which they might be able to modify as they work through the market study. They provided an outline of the work they would be doing during the option period. Mr. Stam asked if there are shared walls between the units. 3 Mr. Hutchison replied that there are double walls with a one to two inch air gap between and a cap on the top of the wall. The same architect they’re working with is under construction right now for a similar project in Fort Washington and is working through approvals in Ashwaubenon. It is a pretty new home style for the state of Wisconsin, but they think that people are going to appreciate having direct ownership instead of being a part of a condo association. Ms. Palmeri asked how this was different from a condo association. Mr. Hutchison replied that they would own the roof and infrastructure and be responsible for that instead of the association. Mr. Hintz asked if they anticipated full construction at the same time. Mr. Hutchison replied that they can phase it depending on demand, which is one of the nice things about the project. Mr. Hintz asked how long the phasing periods would be and what their expectation for completion would be. Mr. Hutchison replied that they would need to figure that out during the option period and market study. Ms. Palmeri asked if they have any concerns about the flood zone. Mr. Hutchison replied that they would need to make sure they’re out of the flood zone, but that’s one of the things they would work out with the DNR during the option period. Mr. Tim Hess, Wesenberg Architects, stated that they had it under option previously. They initially proposed something similar to what they provided today. They previously proposed something with more density per guidance from City staff, meaning they needed to build up and provide underground parking. It turned the project into a four or five story building. The phase two was completed and there is definitely fill on there. There’s contamination, soil issues, and the entire Boatworks site is in the floodplain. Dredging and docks would cost around $2,000,000 because of impacted petroleum. They thought this would be a good site for workforce affordable housing. Mr. Chet Wesenberg stated that they know there’s a market for workforce affordable apartments. They can provide quality units with this type of construction. They have preliminary estimates for the geopiers from two contactors. From an architectural standpoint, they purposely held the street edge and created a framed entrance into the kayak park. They want to enhance the connection to the Riverwalk. They are thinking of units to serve people with bicycles and kayaks and are envisioning incorporating storage for those in cool architectural ways. They will look around the neighborhood for design ideas and put one together that fits the site. They are taking the concept of formal square architecture, putting it askew, and then moving to a more natural landscaped edge that will flow into the waterway. 4 Mr. Hintz asked if they have any estimate right now for rents. Mr. Wesenberg replied that workforce affordable is 120% of the county median income by definition. The one bedroom is $900, a one bedroom with a den is $1,000, and a two bedroom is $1,100. Utilities are factored in as well, so they’ll be substantially below the 30% mark. Mr. Stam asked how many units are proposed. Mr. Hess replied that there are 26 on the Boatworks site and 30 on the opposite site, so 56 total units. Mr. Hintz asked if they would start on the Boatworks site. Mr. Hess replied affirmatively. They know a lot about the Boatworks site and virtually nothing about the other site. The prior phase two was before PFAS, so they know they need to retest there. Ms. Palmeri asked if they are looking at PACE. Mr. Hess replied that they don’t think they are above and beyond what PACE would ask for right now. They’d need to look at energy efficiency and make sure that the cost savings could support the additional financing. Ms. Panek asked if the units are one or two story units. Mr. Wesenberg replied that the units themselves are one story. All of the first floor units will be fully accessible and there will be stairs to the second story. Ms. Panek asked Mr. Wesenberg and Mr. Hutchison how much taller these buildings would be than the average home. Mr. Wesenberg and Mr. Hutchison both replied that they will be similar to the average two story home. MOTION TO GO INTO CLOSED SESSION Motion by Belter for the Redevelopment Authority to convene into Closed Session to discuss bargaining options, strategy, parameters, and terms related to the negotiation of an agreement to potentially purchase 1203 South Main Street and options for the purchase of the vacant property on Michigan Street and West 4th Avenue pursuant to the authority for closed sessions pursuant to Section 19.85(1)(e) of the Wisconsin State Statutes where competitive and/or bargaining reasons require a closed session. Seconded by Panek. The Redevelopment Authority reconvened into open session at 5:00pm. 5 21-18 Approve Option to Purchase Vacant Property on Michigan Street and West 4th Avenue; Wisconsin Redevelopment, LLC ($1.00) Motion by Belter to approve 21-18. Seconded by Bermingham. Motion failed 0-6. 21-19 Approve Option to Purchase Vacant Property on Michigan Street and West 4th Avenue; Wesenberg Architects ($1.00) Motion by Belter to approve 21-18. Seconded by Stam. Motion carried 6-0. Executive Director’s Report Ms. Nieforth provided updates to the RDA. Future Agenda Items Ms. Palmeri stated that she had requested a planning update for some of the RDA properties as well as periodic financial reporting, which has not been a consistent practice for the RDA. Ms. Panek stated that there is a lot of gender-specific terminology in the bylaws that needs to be updated. Ms. Nieforth replied that bylaw revisions will be returning to RDA for approval and they provide financials at the next meeting. Ms. Palmeri asked if they could also revisit the 2006 Near East Redevelopment and Neighborhood Plans. Ms. Nieforth replied affirmatively, adding that they will have some staff and neighborhood association feedback to discuss. Adjournment There was no further discussion. The meeting adjourned at approximately 5:07pm. (Belter, Bermingham) Respectfully Submitted, Kelly Nieforth Executive Director