Loading...
HomeMy WebLinkAboutMinutes REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH SPECIAL MEETING MINUTES FEBRUARY 25, 2008 PRESENT: John Bermingham, Steve Hintz, Benedict Schneider, Donald Simons, Archie Stam, Frank Tower EXCUSED: Tom Belter STAFF: Jackson Kinney, Director of Community Development; Darlene Brandt, Recording Secretary The meeting was called to order at 4:00 pm. Frank Tower was selected to serve as Chairman pro-tem. Res. 08-03 Approve Master Developer Agreement Terms – South Shore Redevelopment Project Area / MK-1 LLC and MK-2 LLC Mr. Kinney stated the RDA has accepted the proposal submitted by Burns Development for redevelopment of the former Miles Kimball block on S. Main Street. (Archie Stam arrived at this time) Mr. Kinney stated the term sheet attached to the Resolution lays out the proposed parameters of the development agreement. He noted that staff is working with the Public Works Department, WPS, Time Warner and AT&T on the undergrounding of utilities on this block. Mr. Burns is proposing development of the block to occur in phases. Phase I will include construction of the townhouses; which will also be in phases. Phase II will be the renovation of the existing 4 story building. Mr. Burns is also requesting issuance of a pay-go bond not to exceed $375,316 as a developer assistant grant in support of Phase I activities. The term sheet notes that a pay go bond may be considered at a later date for the Phase II project. Mr. Kinney also noted that if for whatever reason Burns Development should decide not to start renovation on the 4 story building, the term sheet makes provisions for the RDA/City to grant an extension to Burns Development or solicit new proposals. Mr. Kinney noted the term sheet relates to both phases, but the pay go bond only relates to Phase I work. Mr. Brian Burns, Burns Development, stated the only change in his proposal, is that the project be completed in phases. Nothing has been finalized on the existing building so Mr. Burns noted he is unsure if he would ask for developer assistance on Phase II activities. Mr. Schneider inquired if the townhouses will be for low- to moderate-income tenants? Mr. Burns stated he is working with staff on obtaining State HOME rental rehab funds for 11 units in the four story building which would be for low- to moderate-income tenants. The townhouses would be market rate rents. Mr. Bermingham inquired if funds set aside for the riverwalk by the Pioneer are used for the Burns development, what becomes of the riverwalk project by the Pioneer? Mr. Kinney stated the funds for the Pioneer Island riverwalk were borrowed in 2005 in anticipation of a new development project occurring at that time by Decades Properties. Since that project did not proceed, and since it is apparent no project will be undertaken this year, it would be appropriate to utilize a portion of those funds for public improvement activities adjacent to the Miles Kimball block. Mr. Kinney indicated there are bonding requirements relative to the use of proceeds within a certain time frame. RDA Minutes 1 February 25, 2008 Motion by Hintz to move Res. 08-03. Seconded by Stam. Carried 5-0. Letter to Jeld-Wen Mr. Kinney updated the RDA on the status of negotiations with Jeld-Wen to obtain the necessary easements for the riverwalk expansion. He noted that staff has provided Jeld-Wen with schematics of how the riverwalk could be developed so as to not conflict with their operation – which was a big concern of Jeld-Wen's. There hasn't been any communication from Jeld-Wen for some time, except for a letter to the editor of which copies were forwarded to the Acting City Manager and Director of Community Development. Mr. Kinney noted in that letter, Jeld-Wen expressed a willingness to discuss how the company could work with Oshkosh on redevelopment matters. Staff has drafted a response letter to Jeld-Wen under the RDA's signature. Mr. Kinney noted that RDA member Steve Hintz was proposing a personal letter to Jeld-Wen. Mr. Schneider inquired if the RDA should be more firm? Are they in compliance with other City codes? He understands their importance to the community, but there is some point when we need to be firmer. Mr. Hintz felt the letter should be sent and see what the response is. Mr. Tower inquired what can the City/RDA compel Jeld-Wen to do. Mr. Kinney stated if we do not get a positive response, the City can officially map the riverwalk – there is an adopted Riverwalk Plan and the south side of the river is an important part of that plan. Discussion ensued on other planning type activities that could occur. Mr. Kinney noted he's hoping Jeld-Wen is sincere and wants to work with the RDA/City. Mr. Schneider felt the RDA/City needs to be firm in its commitment to go forward with the riverwalk. Motion by Bermingham to approve sending a letter to Jeld-Wen. Seconded by Schneider. Carried 6-0. Res. 08-04 Determination of Necessity; Establish Fair Market Value; Authorize Purchase – 633 Mt. Vernon Street Mr. Bermingham inquired what is the goal here? Ms. Kepplinger replied the primary goal is to have the home continue to contribute to the Near East Neighborhood with stable, responsible occupancy. Single occupancy may be difficult due to the size of the property and associated maintenance costs, but staff is considering all options at this time. Ms. Kepplinger continued the house was foreclosed on by the Department of Housing and Urban Development (HUD). If they are unable to sell the house after six months or more, the property can only be offered to the local government for $1.00. The overall condition of the property is good, but there are improvements that would be needed. If the RDA does not purchase it, it will continue to sit vacant. Mr. Hintz inquired about Advocap using the property. Ms. Kepplinger replied staff is looking at several avenues for the property, but Federal regulations may prohibit how the property could be resold. Staff has contacted HUD to get clarification on this issue. Mr. Tower stated he has some concern with the RDA getting into the real estate business. RDA Minutes 2 February 25, 2008 Mr. Kinney noted that this is part and parcel to what the City wants to do in the Near East Neighborhood. No decision has been made yet as to whether to proceed or not. If staff should proceed with the acquisition, RDA approval would be needed on the disposition of the property. Mr. Bermingham stated he is in favor of entrepreneurship. Mr. Tower stated he would support the acquisition. Motion by Bermingham. Seconded by Simons. Carried 6-0 Motion by Hintz that the Redevelopment Authority convene into closed session, pursuant to Wis. Stats. § 19.85(1)(g), to discuss the potential for settlement of potential litigation regarding real estate within the South Shore Redevelopment Project Area by conferring with legal counsel for the RDA that is rendering oral and/or written advice concerning strategy to be adopted by the RDA as to a request for assignment of a matter to the Circuit Court of Winnebago County for further assignment to the Winnebago County Condemnation Commission concerning a parcel of real estate within the South Shore Redevelopment Project Area. Seconded by Bermingham. Carried 6-0. There being no further business, the meeting adjourned at approximately 5:00 pm. Respectfully submitted, Jackson R. Kinney Executive Director/ Director of Community Development RDA Minutes 3 February 25, 2008