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HomeMy WebLinkAbout07-239 AUGUST 28,2007 07-239 RESOLUTION (CARRIED 7 -0 LOST LAID OVER WITHDRAWN PURPOSE: APPROVE PROJECT; AUTHORIZE BORROWING; APPROVE AGREEMENT; AUTHORIZE REIMBURSEMENT / OSHKOSH CENTER RENOVATION INITIATED BY: CITY ADMINISTRATION WHEREAS, expenditures relating to the renovation of the Oshkosh Convention Center project will be paid on or after the passage of this resolution and the City reasonably expects to reimburse itself for these expenditures in the future by incurring debt, and the maximum amount of this project is $2.4 Million; and WHEREAS, it is necessary to transfer funds from General Fund Equity to finance the project until such time as said borrowed funds are received; and WHEREAS, this Resolution is a declaration of official intent under Treasury Regulation Section 1.103-18, or amendment thereto, and shall be made available for public inspection pursuant to Chapter 19, of the Wisconsin Statutes; and NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh as follows: 1. That the proposed renovation project of the Oshkosh Convention Center is approved, subject to final approval of the construction bids, and the proper city officials are authorized and directed to retain the architectural services of Kubala Washatko Architects in the amount of $237,628 for preparation of architectural plans, construction drawings and bid documents for said proposed project; a) Money for this purpose is appropriated from: Accl. No. 503-1040-1703-00000 Convention Center- Buildings; to be reimbursed by the Oshkosh Area Community Foundation, pursuant to the agreement approved in paragraph (4) of this Resolution. 2. That the proper city officials take those steps necessary to secure borrowing for $1.4 million, the actual borrowing subject to final Council approval; 3. That the proper City officials are authorized and directed to transfer the sum of One Million Four Hundred Thousand and no/100 Dollars ($1,400,000.00) from Account No.1 00-0071-3460-00000 General Fund Equity to Account No. 503- 1040-1703-00000 Convention Center - Buildings; and AUGUST 28,2007 07-239 RESOLUTION CONT'D 4. That the City hereby accepts a $1 million dollar loan from the Oshkosh Area Community Foundation for the Convention Center renovation project and that the proper city officials are authorized and directed to enter into an appropriate agreement with the Oshkosh Area Community Foundation, Inc., and to execute and deliver an agreement that substantially conforms to the terms contained in the attached letter, any changes in the execution copy being deemed approved by their respective signatures, and said City officials are authorized and directed to take those steps necessary to implement the terms and conditions of the Agreement. ~ -+ OSHKOSH AREA COMMUNITY FOUNDATION August 23rd, 2007 City of Oshkosh Jackson Kinney 215 Church Street OsWcosh, VVl54901 RE EiE Dear Jackson: AUG 2 3 2Q07 DEPARTMENT OF COMMUNITY DEVELOPMENT . The Oshkosh Area Community Foundation would be pleased to enter into an agreement with the City of Oshkosh to renovate the Convention Center. As you know, we paid for the study ofthe Convention Center earlier this year. The study showed that $2.4 million could renovate and update the existing Convention Center. The Community Foundation will make a $1 million dollar loan for the Convention Center if the City agrees with the following terms and conditions: . The City of Oshkosh must commit $1.4 million for the Convention Center retrofit prior to the Oshkosh Area Community Foundation providing $1 million loan for this proj ect. . The Oshkosh Area Community Foundation will be paid back $1.25 million due to the loss of investments of the original $1 million dollars. If the Foundation did not provide the loan and the funds were to stay invested with a 7% return, in 20 years we would have over $3.8 million. Therefore we feel the additional $250,000 for the use of the money is more than fair. . The loan shall be paid back by two sources of revenue: 1) 10% annually from the new Convention and Visitors Bureau Tourism Development Fund ( the CVI3 board has already approved the use of 10% of the fund for this purpose) 2) A minimum of 1 % of gross food and beverage sales from the Convention Center at the time the City replaces the current agreement with whoever managers the Center. . The City agrees to retain Kubala Washatko Architects, Inc. to prepare the architectural plans, constructions drawings, and bid documents for the project. As part ofthe$lmillion dollar loan the Foundation will advance dollars for the purpose ofthese services. VV e believe it makes sense to utilize the firm who prepared the proposed improvement concepts and architectural report for the renovation of the center which was funded by the Community Foundation. For good. For ever. SM 404 N. Main St., Suite 205 Oshkosh, WI 54901 Phone 920.426.3993 Fax 920.426.6997 www.OshkoshAreaCEorg Serving Winnebago, Green Lake, and ~ushara Counties ~ OSHKOSH AREA COMMUNITY FOUNDATION . The City agrees to proceed through the construction phase of the proj ect. . If the City receives a donation of$l million dollars for the Convention Center in the first 4 years of this project and pays the Oshkosh Area Community Foundation loan in full, there will be no interest charged. In the eventthe City would close or sell the Convention Center prior to the $1.25 million being paid off, the City would immediately pay the remaining debt to the Community Foundation in whole. . The City of Oshkosh agrees to pay directly to the Oshkosh Area Community Foundation $40,000 annually of room tax dollars that will be directed to a fund for the maintenance of the Convention Center. Theses funds will be paid to the Community Foundation when the City is no longer paying a management fee for the operation of the Center. Ftmdagreement shall detail what constitutes maintenance of the center that these funds would support and the person(s) who will have the authority to request distributions from the fund. The agreement will be written at a later date. . VVhen possible and appropriate, representatives from the Oshkosh Area Community Foundation should be present for negotiations between the City of Oshkosh and hotel owner(s) or the entity that the City of Oshkosh will contract with for the Convention Center's food and beverage service or the opportunity to review such contract before they are final. S~y, n } 2,'~<r^ loVl~~~=k Eileen Connolly-Keesler Executive Director For good. For ever. SM 404 N. Main St., Suire 205 Oshkosh, WI 54901 Phone 920.426.3993 Fax 920.426.6997 www.OshkoshAreaCEorg Serving Winnebago, Green Lake, and ~ushara Counties