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HomeMy WebLinkAbout09.21.2022 Minutes__________________________________ Redevelopment Authority Minutes 1 September 21, 2022 REDEVELOPMENT AUTHORITY MINUTES September 21, 2022 PRESENT: Lori Palmeri, Thomas Belter, Steve Hintz, Archie Stam, Susan Panek, Todd Hutchison EXCUSED: Jack Bermingham STAFF: Kelly Nieforth, Executive Director/Community Development Director; Jason Pausma; Economic Development Services Manager Belter called the meeting to order at 4:00pm. Roll call was taken and a quorum declared present. The minutes of May 18, 2022 were approved as written. (Belter, Stam) 22-06 Approve Offer to Purchase 0 West Custer Avenue; Steven Dubinksi ($10,000.00) Motion by Hintz to approve 22-06. Seconded by Stam. Pausma stated the RDA acquired the vacant lot in 2013 from Winnebago County for $3,000 using Community Development Block Grant (CDBG) funds. It has been vacant for a long time and there are no utilities. The offer to purchase is from the property owner to the east who proposed a purchase price of $10,000. The Assessor verified that $10,000 is the fair market value for a property like this without utilities. Palmeri asked why the price is $10,000 instead of the typical $5,000 amount. Nieforth replied when they acquire properties using CDBG funds, they need to sell them at a fair market value if it’s not for an LMI purpose. Pausma replied the buyer’s intent is to incorporate it into their property and not build on it. Stam asked if the city owned the lot next to it. Nieforth replied it is privately owned. Motion carried 6-0. 22-07 Authorize Transfer of Properties Located at 0 Pioneer Drive and 0 East 7th Avenue to City of Oshkosh __________________________________ Redevelopment Authority Minutes 2 September 21, 2022 Motion by Belter to approve 22-07. Seconded by Hintz. Nieforth stated this is a cleanup of remnant pieces from the multiple parcels RDA owns. They’re combining parcels now for the Mill on Main project. They need to transfer parcels from RDA to the City of Oshkosh and the Parks Department will then maintain the parcels moving forward. This will also go to Council for formal approval. Motion carried 6-0. 22-08 Approve Determination of Necessity; Establish Fair Market Value; Authorize Purchase; 211 High Avenue ($139,900.00) Motion by Panek to approve 22-08. Seconded by Belter. Nieforth stated the property is located in an area targeted for redevelopment by several city plans. Staff saw an opportunity to acquire this property with the previous direction from RDA to be more strategic with their acquisitions. The property has had code violations in the past. It’s the property right behind the Town Motel on High Avenue. Palmeri asked how many units are in the building and if it could be rehabilitated for housing. Nieforth replied there are two units and it would likely be a large investment to rehabilitate the property. Hintz asked what other properties are there and how likely it is that those are going to be for sale. Nieforth replied sometimes it might take twenty years to acquire all the property needed for redevelopment in an area. She can’t guarantee that the surrounding properties will be for sale in the near future, but the Bella Cosmetology building along Pearl Avenue is available now. They’ve had conversations with owners of other properties on Pearl Avenue as well. They don’t get many opportunities to acquire properties in areas like this. Hintz asked if the seller has any other opportunities. Nieforth replied affirmatively. Stam asked for the listing amount. Nieforth replied $139,900. __________________________________ Redevelopment Authority Minutes 3 September 21, 2022 Palmeri asked if the fair market value is $131,000. Nieforth replied affirmatively. Hutchison asked what amount the RDA was offering to purchase the property. Nieforth replied $139,900. They have acquired properties for less in the past, but she thinks they should be prepared to offer asking price for properties in opportunity zones. Hintz asked what they have in mind for future development. Nieforth replied the Imagine Oshkosh Plan identified the area for mixed-use development. Palmeri asked for confirmation that they haven’t established a redevelopment plan or area there. Nieforth replied affirmatively. Hutchison asked if Nieforth was referring to the entire block as the redevelopment area. Nieforth replied the whole block is included in the Imagine Oshkosh Plan, but there are other opportunities for redevelopment in the area. Hutchison asked if RDA owns any other properties on the block. Nieforth replied no. Hintz stated we’re assuming the Town Motel would be there forever though. Panek asked if they would demolish the building. Nieforth replied affirmatively, adding there would be an additional cost for asbestos removal and tipping fees. Panek asked if the building to the right is a home. Nieforth replied the first floor is commercial. There might be units on the second floor, but she would have to check on that. Belter asked if they could try to offer a lower price. It’s not a $140,000 property with two rentals and needed repairs trying to get a 10% ROI. He asked if they think someone will buy it for $140,000. Nieforth replied they had an offer. She thinks it could be more expensive in the future if the RDA does not purchase it now. __________________________________ Redevelopment Authority Minutes 4 September 21, 2022 Belter replied it has an assessed value of $109,000. He doesn’t know if the price will necessarily go up with the multiple code violations. Nieforth replied she would look at the fair market value as they’re on the clock for a revaluation right now. Panek asked if they have the money. Nieforth replied affirmatively. Palmeri asked how much is in the Scattered Sites account. Nieforth replied close to $1,000,000. Panek asked if there is a timeline for using the funds. Nieforth replied no, but they would like to use it. The balance is higher now because they haven’t had many acquisitions in the last few years. Palmeri asked if it is currently rented. Nieforth replied affirmatively, adding they wouldn’t close on it until the tenants had secured another place to live. Hintz asked if any developers have expressed interest in the area. Nieforth replied they’ve talked with multiple people who have interest. Hintz asked what type of developments they’re interested in. Nieforth replied mixed use and commercial. They’ve also talked with people interested in Bella Cosmetology who need more room. Belter asked if they are going to scrape the building. Nieforth replied affirmatively. Belter asked if RDA would be paying $40 per foot for the dirt. Nieforth replied affirmatively. Belter replied it seems a little high. Nieforth replied staff could go back and renegotiate, but she can’t guarantee anything. __________________________________ Redevelopment Authority Minutes 5 September 21, 2022 Palmeri stated it’s not in a redevelopment plan. It’s in the older Imagine Oshkosh Plan, but she is concerned about the relocation of the existing tenants. It’s an opportunity, but she’s not usually in favor unless they have a specific vision. It’s also a bit costly. Panek stated it would make more senses if the RDA owned more property on that block. Belter replied it would make more sense if it was the final piece and not the first piece. Nieforth replied they have to start somewhere and this is an area that everyone talks about for redevelopment. They wanted to take advantage of the opportunity because they don’t come up very often. Hutchison asked if they were pursuing the Bella building. Nieforth replied they haven’t been because there’s been a lot of interest from the market. Palmeri asked what they’re asking for the Bella property. Nieforth replied she’s not sure. Hintz stated he doesn’t think it’s an awful investment, but it’s a long term investment. He questions whether it’s the best investment of $140,000 right now. Palmeri replied plus demolition and tipping fees. Nieforth replied the city would handle the demolition, so it’s just tipping fees. Hintz replied they’re banking on something happening in the very long term that might come along. Nieforth replied that’s what they’ve done in a lot of their redevelopment areas. Palmeri replied they have a lot of those sitting still with Jefferson Street being one of them. Hintz replied they need to acquire a lot of property there to redevelop the area and this would only be the first piece of property. Palmeri asked if the vacant lot behind it is privately owned. Nieforth replied affirmatively. The owner also has two properties on Pearl Avenue. Panek asked if acquiring this property might incentive nearby property owners to sell their properties to the RDA. Nieforth replied absolutely. __________________________________ Redevelopment Authority Minutes 6 September 21, 2022 Panek asked if that happens regularly. Pausma replied affirmatively, adding it’s what happened with 122 West 9th Avenue earlier this year. Belter stated they’re also establishing a comparable value of around $280,000 for the adjacent lots which are twice as big, so you’d have between $600,000 and $700,000 for a smallish lot on High Avenue. Motion failed 0-6. 22-09 Grant Municipal Easement Located South of Fox River and East of South Main Street Motion by Stam to approve 22-09. Seconded by Belter. Nieforth stated it is in the Sawdust District area. They want to ensure city easements are protected as they move forward with the Mill on Main development. They need to grant the city an easement for the municipal utilities. Motion carried 6-0. 22-10 Approve Right-of-Way Dedication Located along East 9th Avenue and South Main Street Motion by Belter to approve 22-10. Seconded by Hintz. Nieforth stated this is also part of the Mill on Main project. They are dedicating RDA property for future right-of-way for the extension of East 9th Avenue and also on the east side of South Main Street as part of the widening of South Main Street. There is a little bit of right-of-way to dedicate by Sixth Ave and South Main Street by the Riverwalk as well. Motion carried 6-0. Presentations – 0 West 8th Avenue Jake Bunz, T. Wall Enterprises, stated they’re envisioning something similar to the Mill on Main development for the site. They’re thinking it would be a four or five story multi-family building with the potential for retail on the first floor with underground parking. The site is 1.4 acres, so they think they can get 70-90 units on the site with a four or five story structure. They’re flexible in terms of the design and the type of units. It could be similar to the Mill on Main or they could have more studio and one bedroom units depending on demand. Putting another building on the other __________________________________ Redevelopment Authority Minutes 7 September 21, 2022 side of the street would create an entrance to the Sawdust District to facilitate the urban feel they’re trying to accomplish. They’re trying to create an environment and appeal around Main Street. Stam asked about the timeframe. Bunz replied it really depends. They could fast forward construction if they’re doing more studios and one bedrooms, but they wouldn’t want to build at the same time as the Mill on Main phases because they don’t want to saturate the market. Palmeri asked about the two 60 day extensions. Bunz replied they put those in as a buffer. They want to make sure they can get plans and approvals before they take ownership of the property. The same terms were in the Mill on Main agreement which they actually needed to use for environmental issues. Belter asked about absorption and demand, how they determine 380 units are needed, and how their market feasibility study shows that. Bunz replied they built apartments in Neenah in a similar location last year. They built 71 units and leased 40% of the units right away in March and 90% three months later. Oshkosh has the demand for these units, but they don’t want to bring them in all at once because the market won’t be able to absorb them. Hutchison asked about the status of the Mill on Main project. Bunz replied they’re finishing up the site plan review process and construction documents. They’ll be submitting to the city for reviews and permits. Hutchison asked if that was just for phase one. Bunz replied affirmatively. Hutchison asked how many units that is. Bunz replied 109 units. Hutchison asked about how long it would be before phases two and three were completed. Bunz replied they would be either a year or two years after phase one depending on how many they lease out. Hintz asked what their expectations are with regard to tax incremental financing. Nieforth replied the request is 90% which aligns with what they’re receiving for the east side of Main Street. __________________________________ Redevelopment Authority Minutes 8 September 21, 2022 Tim Hess, 2645 Templeton Place, stated they have a bit of a different approach. They’re trying to provide workforce affordable units. Their one bedroom would be affordable for someone making $36,000 per year and their two bedroom would be affordable for someone making $44,000 per year. It is very similar in design to what they’re proposing at the Boatworks site. They’re hoping that they can finish Boatworks and then immediately follow with the contractors for this building. It would be 34 apartments. They appreciate there are some environmental issues there so their site plan has the parking lot there. It has a park-like feel for the parking on South Main Street because they know that’s where the issues are. They’re looking at taking on some substantial investors to move this project forward. They’re asking for six months to figure out if they could make it work financially and then they would be able to start in the summer. Belter asked for a definition of workforce affordable versus upper end and lower end. Hess replied low income is 60%-80% of the median income. Workforce affordable is the next range of 80%-%120. Belter asked what the rent would be for a one bedroom. Hess replied $900 for a one bedroom and $1,100 for a two bedroom. Palmeri asked if that included utilities. Hess replied no. Palmeri stated she appreciates the park design along Main Street with the parking lot. She asked if the parking lot is for the purpose of capping those environmental issues or if that’s what they feel is needed for the 34 units. Wesenberg replied it’s the appropriate amount of parking stalls and they put it over the contaminated property for that reason. He knows there’s debate over the number of parking stalls per unit in an urban environment, but this is what they feel comfortable with for this site. It’s a sweet spot where they’re able to keep their costs in line and make a sellable product with no underground parking, two stories, and no elevator. He also thinks it will diversify the neighborhood which is a good thing to do. Palmeri asked for the square footage for the one and two bedrooms. Wesenberg replied the one bedrooms were around 650 square feet and the two bedroom were around 300 square feet. 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 for __________________________________ Redevelopment Authority Minutes 9 September 21, 2022 the redevelopment of 0 West 8th Avenue pursuant to Section 19.85(1)(e) of the Wisconsin State Statutes where competitive bargaining reasons require a closed session. Seconded by Hintz. Motion carried 6-0. 22-11 Approve Offer to Purchase 0 West 8th Avenue; The Mill on Main, LLC ($1.00) Motion by Belter to approve 22-11. Seconded by Panek. Belter stated that Nieforth will follow up as discussed in closed session. Motion failed 0-5. 22-12 Approve Option to Purchase 0 West 8th Avenue; Wesenberg Architects ($1.00) Motion by Belter to approve 22-12. Seconded by Stam. Palmeri stated that Nieforth will follow up on this as well. Motion failed 0-5. City Housing Study Nieforth stated there was a Council workshop to discuss the implementation of housing study recommendations. They’re looking at doing some adjustments to their zoning code and housing programs. They’re also looking at working with Neighborworks to help with rehab an infill development in the city. Belter asked if they discussed any subsidies for lower income housing. Nieforth replied affirmatively, adding they know they’re going to need to partner with other organizations for that. They’re looking at CDBG and HOME funds for LMI housing. Belter asked if they could use Scattered Sites for affordable housing. Nieforth replied they have some limitations on what they can and can use the funding for, but they know that they desperately need low income housing. __________________________________ Redevelopment Authority Minutes 10 September 21, 2022 Palmeri stated she thought they kept tax incremental districts open for an additional year for affordable housing. Nieforth replied the extensions fund their housing programs through Healthy Neighborhood Initiatives (HNI). Palmeri asked if HNI could fund capital projects. Nieforth replied they don’t have enough for that, but there will be several districts closing in the next ten years. Panek asked if Neighborworks was in the community previously. Nieforth replied they worked with the Neighborworks out of Racine around ten years ago. It didn’t go the direction they wanted it to, which is when they setup GO-HNI. They still need an organization for infill development and rehab. The Green Bay chapter has the capacity to work with them now. Potential Future Agenda Items Palmeri stated she wanted to discuss Jefferson Street because it’s been around ten years since they began acquiring properties. Nieforth replied they haven’t had much movement in terms of acquiring more. There is a developer with multiple properties on Main Street. They have talked with the owner of 664 North Main Street. The property on the corner of Irving and Jefferson is for sale right now, but the RDA declined moving forward with that. Neighborworks is very interested in townhouses for the area. Belter asked if they could do a driveway off of Main Street. Nieforth replied they’d have to confirm with Public Works. Palmeri asked if there is forward movement with the owner of Pedestrian Arts. Nieforth replied she has talked with the owner multiple times. They do live at the property, so they have concerns about finding a new home. Executive Director’s Report Nieforth provided updates to the RDA. Adjournment There was no further discussion. The meeting adjourned at approximately 5:52pm. (Panek, Belter) __________________________________ Redevelopment Authority Minutes 11 September 21, 2022 Respectfully Submitted, Kelly Nieforth Executive Director