HomeMy WebLinkAbout05-66.doc
MARCH 8, 2005
05-66
RESOLUTION
(CARRIED
7-0
LOST
LAID OVER
WITHDRAWN
PURPOSE:
AUTHORIZE BORROWING / CITY CENTER AND
UNIVERSITY PLAZA; APPROVE DEVELOPER
AGREEMENT TERMS
INITIATED BY:
DEPARTMENT OF COMMUNITY DEVELOPMENT
WHEREAS, the City of Oshkosh Common Council has created Tax Increment
District #13 Marion Road/Pearl Avenue Redevelopment Project, as amended, and Tax
Increment District #17 City Center Redevelopment Project, as amended, to eliminate
blighting conditions and promote economic development in the central city; and
WHEREAS, the project plans for the respective tax increment districts included
project costs attributable to developer rehabilitation of properties within said District; and
WHEREAS, the project plans for the respective tax increment districts identified
development assistance grants as eligible project costs; and
WHEREAS, City Center Associates LLC is requesting a development assistance
grant of up to $700,000 to facilitate the improvement of approximately 78,OOO.:!:: sq. ft. of
space within its facility under its existing developer agreement under TIF #17, as
amended; and
WHEREAS, Sara Investment Real Estate LLC is requesting a development
assistance grant of up to $463,000 to undertake a significant rehabilitation of both the
interior and exterior of 545 High Avenue, within TIF #13, as amended.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the proper City officials are hereby authorized and directed to borrow a
sum of up to One Million One Hundred Sixty-Three Thousand Dollars and NO/100
($1,163,000) for the purposes of implementing eligible project activities within TID #13
and TID #17 as noted above, and to execute any and all documents necessary for
purposes of same.
BE IT FURTHER RESOLVED by the Common Council of the City of Oshkosh
that the proper City officials are hereby authorized and directed to enter into a
Developer Agreement with Sara Investment Real Estate LLC for rehabilitation activities
at 545 High Avenue, with substantially the same terms as attached hereto, and to
extend or revise the existing Developer Agreement with City Center Associates LLC for
the proposed improvements at City Center, and to carry out all actions necessary to
implement the Developer Agreements.
I.
II.
III.
Term Sheet For University Plaza Development Agreement
By and Between
City of Oshkosh, Wisconsin
And
Sara Investment Real Estate LLC
Project
a)
Development Site: University Campus property generally located at 545
High Avenue generally bounded on the north by High Avenue and on the
south by Campus Place.
b)
Proiect Scope-Developer: Rehabilitation of the principal structure on the
property to include:
1) Exterior Rehabilitation
2) Interior Rehabilitation
3) Structural Repair
4) Parking Lot and Site Improvements
c)
Borrowing by City for Developer Proiects: City proposes to borrow up to
$463,000 to fund developer projects that will be repaid through increased
tax increment created by the project.
d)
City Approval of Developer Proiects: City must approve and authorize
any developer rehabilitation project for which the developer will request
financial reimbursement.
1) Reimbursement will not be provided for any developer project not
previously approved by the City.
City may require additional architectural treatments or
enhancements to the exterior of the structure to be reimbursed by
the developer through this ~ant.
2)
TIP Guarantee
a)
Developer will deliver to City a guarantee of sufficient revenue to pay
debt service on City borrowing for this project.
Revenue will consist of incremental taxes and, if necessary. additional
Developer payments.
City debt payable over 20 years.
Form of guarantee similar to guarantee delivered to City for other projects.
b)
c)
d)
Mortgage
a)
Deliver to City a mortgage interest in development to secure developer
performance under Agreement
Subordinate to primary lender(s)
b)
IV.
V.
VI.
Indemnity
a)
Mutual indemnities with respect to project
Nondiscrimination
a)
Developer agrees that it will not discriminate in construction. use and
operation of Development.
Insurance
a)
Developer agrees that it will insure project for such risks and in such
amounts as is customary for similar projects.