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HomeMy WebLinkAboutMinutes REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH MINUTES May 21, 2008 PRESENT: Thomas Belter, John Bermingham, Steve Hintz, Ben Schneider, Archie Stam, Frank Tower EXCUSED: Don Simons STAFF: Jackson Kinney, Director of Community Development; Darlene Brandt, Recording Secretary The meeting was called to order by Chairman Tom Belter at 4:00 pm. Consent Agenda Approval of Minutes: March 19, 2008 Treasurer's Report: None Secretary's Report: None. Motion by Bermingham. Seconded by Schneider. Carried by voice vote. Res. 08-05 Approve Change Order / Statewide Razing – Scattered Sites Motion by Bermingham. Seconded by Schneider. Motion carried 6-0 Res. 08-06 Finding That Redevelopment Plan is in Compliance with South Shore Redevelopment Project Plan / West 6th Avenue and S. Main Street Mr. Kinney indicated that Sweetwater is looking to improve their overall site, maintaining the existing marina and storage uses, and construction of a yacht club. This is a very visible site along the riverfront within the South Shore Redevelopment Area. Staff initiated a rezoning of the block between S. Main St. and Oregon St. along the Fox River to change the zoning from industrial to commercial with a planned development overlay. Mr. Kinney noted that commercial zoning is more flexible in terms of land uses that would be permitted, such as residential that are prohibited in industrial districts. The commercial zoning would be beneficial for future development of the block. The RDA is being asked to make a finding that Sweetwater's plan is consistent with the South Shore Redevelopment Project Plan. Motion by Tower. Seconded by Bermingham. Motion carried 6-0 RDA Minutes 1 May 21, 2008 Update on " The Waterfront Project" Mr. Tim Rikkers, Akcess Acquisition Group, indicated they have a signed letter of intent from the Chamber of Commerce to purchase approximately 9,000 sq. ft. of office space and a letter of intent from the law firm Davis & Kuelthau to lease approximately 9,000 sq. ft. of office space. It is the Chamber's intent to create a business assistance center that will house the Chamber, Chamco, OAEDC and possibly other business organizations. The Chamber's offer is contingent upon acquisition of their existing building by the City or another entity. The attorney's offer is contingent upon approval by their Board and the Chamber utilizing space in the building. Mr. Rikkers stated these commitments would be enough for Akcess to move forward. Mr. Jay Supple indicated they are looking to change the hotel chain to a Four Points Sheraton with around 108 rooms. This is the third location in the State that Sheraton is looking at. Sheraton has been working on a new urban design layout and it will be a better fit with the overall redevelopment area. Discussion ensued on the exterior design of a Sheraton. Mr. Supple reiterated that Sheraton is working on a new urban design to include brick that he believed is appropriate for the area. Sheraton also likes the water frontage aspect. He noted construction needs to be in conjunction with the office building to cut down on overall costs for both developments. Mr. Belter inquired about the riverwalk. Mr. Kinney noted that would still be done in conjunction with the overall construction of the hotel and office building. Mr. Schneider stated the Common Council voted 0-7 to not purchase the Chamber building. Tenancy of the office building seems to be an issue in proceeding with this project. Mr. Rikkers stated Davis & Kuelthau is looking to expand its occupancy. The Chamber is strapped for space and cannot expand at its present location. Mr. Supple noted it is their goal to fill all floors, but filling one floor with these two tenants will attract more tenants. Mr. Bermingham stated the leased space would be about one third of the overall building. What happens down the road – how long can Akcess exist that way? Mr. Rikkers replied most likely one and a half to two years. Akcess is committed to this project and has been for the past two years. Once construction starts, more people will come forward. Mr. Rikkers did not feel this project will fail. Mr. Tower inquired about tenancy for the rest of the building. Mr. Rikkers stated that could depend on what the market wants and needs. If there is more interest in condominiums versus leasing, then they would be open to that. Mr. Bermingham inquired what would prevent the hotel from going up? Mr. Supple stated once they sign with Sheraton it's ready to go. He reiterated there is a cost savings for both projects if construction occurs at the same time. Mr. Rikkers stated Akcess is committed to this project and wants to see it proceed. RDA Minutes 2 May 21, 2008 Res. 08-07 Authorize Transfer of Funds to City for Acquisition of Chamber Building Mr. Belter stated he would like to open the floor to public comments and limit it to about 20 minutes. There was no objection from the members present. Chancellor Richard Wells, UW-Oshkosh, stated his support of this project. The University increases students and staff annually and it has an interest in seeing this area along the riverfront developed. The City should move forward aggressively and support this request. Mr. Dennis Schwab, Coldwell Banker Real Estate, 601 Oregon Street, stated they have been working with Akcess since they came to Oshkosh. Mr. Schwab believed there is a need for Class A office space in the community. As Mr. Rikkers pointed out, once construction starts, people will come forward. Mr. Schwab noted he was the first to invest in this redevelopment area and he's glad he did. He also owns property adjacent to the Chamber building and he supports the City acquiring this property. Ms. Wendy Hielsberg, Convention and Visitors Bureau, stated the Bureau's support of this project, especially the hotel. Oshkosh is loosing so much money by not having hotel accommodations to support activities occurring in the community. These events would not be occurring without the support of surrounding communities. Mr. Edward Williams, Davis & Kuelthau, stated they have been working with Akcess since the beginning. Davis & Kuelthau have always been supportive of Oshkosh expanding. The idea of a linkage with the Chamber is not a linkage. If you are involved with your community, it is a commitment. Davis & Kuelthau are looking at the long term and need to expand. They have been approached by other real estate interests, but are committed to downtown Oshkosh. Mr. Randy Knudsen, Chairman, Chamber Board, stated the Board supports the Chamber’s move to the Akcess development. The move would improve traffic flow and pedestrian accessibility. This would be a win/win situation. Mr. John Casper, Executive Director of the Chamber, stated this is a great opportunity to kick start a large development along the riverfront. This would only enhance other development that has already taken place along the riverfront from the University area to the private developments in the redevelopment area. If you look at history, someone has to take the risk and others follow. Mr. Casper asked for the Authority's support. Mr. Bill Hare, Chamco Board, stated Chamco recently moved its offices to the Chamber building and they have very little room. That move, however, has been very well received by the community and has assisted in bringing new development to Oshkosh. Chamco asks for the Authority's support. Mr. Jason Monnett, OAEDC Board, stated their support of the business assistance center concept. To facilitate this concept, additional space is needed. Mrs. Melanie Bloechl, 2388 Abbey, did not support this project. If this is the best that can be done, the community is woefully inadequate in its vision quest. She felt there is no guarantee the hotel will be successful. She felt the Redevelopment Authority is supposed to look at the redevelopment of Oshkosh. She believed the comments being made today are the same as when she was on the Council and a decision was being made on the 100 block. Nothing came from the labor of a previous project that was proposed for this site. Mrs. Bloechl did not believe this is what the citizenry wants. What is Oshkosh doing different from any other community? Nothing. She felt this is cookie cutter development. Where is the $500,000 coming from for the purchase of the Chamber building. Mr. Kinney stated there was a road section that had been planned interior to the redevelopment area north of Marion Road and east of Riverway Drive that is not deemed to be needed, and funds that had been set aside for that project could now be utilized for the Marion Road/Division Street realignment project. RDA Minutes 3 May 21, 2008 Mrs. Bloechl inquired what will the funds be used for if not used to purchase the Chamber? Mr. Kinney stated the Authority would maximize the use of funds in support of public improvements in the redevelopment area. Mrs. Bloechl stated it sounds like there is a lot of support for this project here today, but from what she hears in the community, it sounds like a shell game. She asked the Authority to do what's best for the community. Mr. Andy Dumke, 2030 Menominee Dr., stated his support of the project. It is a calculated risk; people do not sign leases based on renderings. When the 4-Imprint project was done, it was a risk but it has brought a lot to the community. Mr. Jon Dell'Antonio, 1768 River Mill Rd., stated this is an opportunity to move this project forward. He believed if the project did not move forward, we will be looking at a grass lot for several years to come. There are comments that this is not what is needed, but no one has said what they want. Mr. Dell'Antonio stated he was on the Council when the first redevelopment project occurred on Division Street. There was objection to that as well. Now everyone is very supportive of that project. No matter what you do, you cannot make everyone happy. Mr. Belter asked for a show of hands from the audience in support of this project. Most of the audience raised their hands. Mr. Belter asked for a show of hands form the audience opposed to this project. One person raised their hand in opposition. Motion by Tower to authorize the transfer of funds to the City for acquisition of the Chamber building. Seconded by Hintz. Mr. Schneider inquired if this action is to purchase the Chamber building? Mr. Kinney replied no. The item before the Authority is to only transfer funds to the City in support of the City's acquisition of the Chamber for the proposed street improvement project. Mr. Schneider stated from his perspective, he saw a want not a need. This is just transferring occupancy from one space to another. He stated he could not support this request. Mr. Hintz stated he supports this worthwhile project. There are additional lands on the south side of the river that need redevelopment and the City and Authority need to keep a momentum going on the north side of the river to kick start any redevelopment on the south side. There needs to be a distinction between economic development and redevelopment. Mr. Hintz felt the concept of public and private partnership is very important. This project is a great opportunity for Oshkosh and the community and would raise the visibility of a one stop business center. Mr. Tower stated if this resolution is approved by the Authority today, he will ask the Council to reconsider the acquisition of the Chamber building. He stated he is excited about the overall development of the site and the proposed economic development center. He stated he supports this resolution. Roll call was taken. Motion carried 2-1-3. (Ayes: Hintz, Tower. Noes: Schneider. Abstain: Belter, Bermingham, Stam) Mr. Stam stated he abstained because he is a past President of the Chamber and a Chamber Board member. RDA Minutes 4 May 21, 2008 Mr. Bermingham stated he abstained because his wife is currently employed by the Chamber and he is a member of the Chamber. Mr. Belter stated he abstained because he is a past President of the Chamber and a Chamber Board member. There being no further business, the meeting adjourned at approximately 5:10 pm. Respectfully submitted, Jackson R. Kinney Executive Director/ Director of Community Development RDA Minutes 5 May 21, 2008