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HomeMy WebLinkAboutminutesPROCEEDINGS OF THE COMMON COUNCIL CITY OF OSHKOSH, WISCONSIN OlHKOlH ON THE WATER REGULAR MEETING held Tuesday, October 28, 2008, at 6:00 p.m. in the Council Chambers, City Hall. Mayor Tower presided. PRESENT: Council Members Jessica King, Tony Palmeri, Burk Tower, Dennis McHugh, Paul Esslinger, Bryan Bain and Mayor Frank Tower ALSO PRESENT: Mark Rohloff, City Manager, Pamela Ubrig, City Clerk, Lynn Lorenson, City Attorney, and David Patek, Director of Public Works Council Member King read the Invocation. The Pledge of Allegiance was led by Edward Sweet and Kendall Hibbs from St. Elizabeth Ann Seton Elementary School; and, Liam Boehm and Julia Dudenas from St. Frances Cabrini Elementary School Public Hearings Mayor Tower ordered the following Public Hearing: Ordinance 08-397 Amend Chapter 30 Zoning Ordinance /Amend Sections on Required Improvements to Subdivisions -Sanitary Sewers, Water, Storm Sewers, Street Widths (Plan Commission Recommends Approval) There were no appearances and the Public Hearing was CLOSED. FIRST READING; LAID OVER UNDER THE RULES Consent Agenda The minutes of the October 14, 2008 meeting were approved as presented. Resolution 08-398 Approval of Revised Conditional Use Permit; Planned Developmentfora New Driveway off Pearl Avenue at Radford Square, 30-90 Wisconsin Street (Plan Commission Recommends Approval with Conditions) Resolution 08-399 Approval of Revised Conditional Use Permit; Planned Development for Installation of Ground Signage and Canopy Signs; Grant Privilege in Street to Permit Existing Building Canopy to Encroach into Hazel Street - 631 Hazel Street (Plan Commission Recommends Approval with Conditions) Proceedings of the Common Council -October 28, 2008 Jesse Ray, 1980 Silver Street, Manitowoc, representing Ganther Construction, stated that he agreed with all of the recommendations and to answer questions of Council. Resolution 08-400 Approve Extraterritorial Preliminary Plat Known as Ormand Beach Heights First Addition; North of Leonard Point Road, East of Swallow Banks Lane, Town of Omro (Plan Commission Recommends Approval) Resolution 08-401 Approval of Change Order No. 1 /Public Works Contract No. 07-15 Four-Way Construction of WI, Inc. /Paving and Sanitary Sewer / (-$1,668.42) Resolution 08-402 Approval of Change Order No. 1 /Wastewater Treatment Plant Digester Cleaning / Synagro Central, LLC / ($13,647.20) Resolution 08-403 Approval of Bid for Furniture for Oshkosh Fire Department /Corporate Express ($34,480.05) Resolution 08-404 Disallow Claim by Players Pizza and Pub, LLP (sewer backup) Resolution 08-405 Approval of Agent Change -Class "B" Fermented Malt/Class "C" Wine and Operator's License's MOTION: ADOPT CONSENT AGENDA (Bain; second, Esslinger) CARRIED: Ayes (7) King, Palmeri, Tower, McHugh, Esslinger, Bain, Mayor Tower Action Taken on Ordinances and Resolutions Ordinance 08-406 Approval of Zone Change from R-1 to M-3 / 3156 Algoma Boulevard (Plan Commission Recommends Approval) MOTION: ADOPT (Palmeri; second, Esslinger) CARRIED: Ayes (7) King, Palmeri, Tower, McHugh, Esslinger, Bain, Mayor Tower Ordinance 08-407 Approval of Official Mapping of the Extension of Progress Drive from its Current Terminus Southeasterly to Vinland Street (Plan Commission Recommends Approval) MOTION: ADOPT (Esslinger; second, Bain) CARRIED: Ayes (7) King, Palmeri, Tower, McHugh, Esslinger, Bain, Mayor Tower Ordinance 08-408 Approval of Southwest Industrial Park /YMCA Attachment MOTION: ADOPT (Bain; second, Esslinger) CARRIED: Ayes (7) King, Palmeri, Tower, McHugh, Esslinger, Bain, Mayor Tower 2 Proceedings of the Common Council -October 28, 2008 Ordinance 08-409 Approval of Speed Limit Changes on Algoma Boulevard (correction of highway designation only) and Parking Regulations Changes on Bauman Street, Bismarck Avenue, Logan Drive, Smith Avenue and 5th Avenue FIRST READING; LAID OVER UNDER THE RULES Robert Cornell, 548 West Smith Avenue, stated that during school hours parking was a concern and the ordinance would improve the area. Ordinance 08-410 Approval of an Ordinance Prohibiting the Use of Bikes, Scooters, Motorized Vehicles or Other Wheeled Devices (Except for Skateboards or In-Line Skates) at the Red Arrow Skate Park (Advisory Parks Board Recommends Approval) FIRST READING; LAID OVER UNDER THE RULES Resolution 08-411 Approve Assignment of Development Agreement by Akcess Acquisition Group to Oshkosh River Development LLC; Approve Term Sheet for Revised Development Agreement with Oshkosh River Development LLC (Redevelopment Authority Recommends Approval) MOTION: ADOPT (Bain; second, Esslinger) CARRIED: Ayes (5) King, Tower, McHugh, Bain, Mayor Tower; Noes (2) Palmeri, Esslinger Council Member Esslinger questioned why there was a tax payment guarantee with Akcess and not with the Dumke Group. Jackson Kinney, Director of Community Development, stated that the Dumke Group was not willing to provide the tax guarantee due to the basic format change regarding the parcels that would be developed. Council Member Esslinger questioned if it was possible to have a guarantee for the parcels that the Dumke's would develop. Mr. Kinney stated that he thought it was highly unlikely to find any developer to agree to the tax guarantee. He explained the provision intent for the Akcess group. Art Dumke, 2020 Menominee Drive, stated that the Dumke group was convinced their development would be successful for many reasons. He explained they were motivated due to they resided in the community and were eager to develop the riverfront. He stated that they were not going to risk their companies financial situation on a project that would not succeed. 3 Proceedings of the Common Council -October 28, 2008 Deputy Mayor Bain stated that on page two of the term sheet item number three, the developer exercised the option to develop land north of Marion Road and the developer was committed to have $27 million in the ground by December 31, 2012. He questioned if the year was correct or if it should be 2013. Mr. Kinney stated that the year was correct. He stated that the extra year was a fallback in case they chose not to exercise that option. Deputy Mayor Bain questioned if area five would have a total of $27 million. Mr. Kinney explained that the total amount of $27 million was the area north and south of Marion Road. He stated that the value could be driven by developing either side. Deputy Mayor Bain questioned when the development of the park was to be completed. Mr. Kinney explained the park would be developed in conjunction with the riverwalk. Deputy Mayor Bain questioned if the development agreement would come before the Council for approval. Mr. Kinney stated that the agreement would be approved by staff and the Redevelopment Authority. Council Member McHugh questioned how much of the riverwalkwould be completed in 2009. Mr. Kinney explained the circumstances and portion of the riverwalk to be completed next year. Council Member McHugh questioned what the source of funding was for the project. Mr. Kinney stated that the riverwalk and seawall were TIF money to fund the area by the old Mercury building. He stated that the area west was subject to another lease revenue bond. He stated that there was an option to apply for funding from the DNR for a green space grant. Council Member McHugh questioned if this could be completed with TIF money in less than 20 years. Mr. Kinney stated that TID 21 was the district that overlapped that area and had a life of 27 years according to what the statutes stipulate. He explained when it was created it was created with a 20 year life. Council Member McHugh stated that there were many concerned citizens in regards to the 4 length of the bonds. Council Member Tower questioned what the vote was in the Redevelopment Authority. Mr. Kinney stated that the vote was 6-0 and one person had been absent. Proceedings of the Common Council -October 28, 2008 Council Member Tower questioned what the architecture plan was. Mr. Dumke showed some photos of the layout and stated that they would start developing one of the two 25,000 square foot office buildings; however, there would be ground work put in for both, there would be a restaurant and residential units. He explained that residential units would be developed to be sold in the future as condos. He explained they have had contact with enough potential tenants to fill up 3/4 of the retail space north of Marion Road. He stated that the building would be facing the water, 90% brick with step up landscaping. He stated it would be an accomplishment to be proud of as all of their work was first class. Mr. Kinney stated that the Dumke's would need to bring their design plan in for review to assure quality and that it was appropriate for the area. Council Member Tower stated that the consistency of architecture was important along the riverfront and he was not convinced that apartment buildings would fit well in the development. Mr. Dumke stated that the apartment building would be created in a manner so once the economy changed they could be sold as condos. He explained that each unit would be two or three bedrooms and approximately 1500 square feet. Council Member Tower questioned what the factors were that would determine the development of the area north of Marion Road. Mr. Dumke stated that tenants coming forward inquiring about the space. He stated that currently they were having better luck north of the river than on the river. Council Member Tower questioned the financing. Mr. Dumke stated that there were a few different options from multiple banks, for each project. Mr. Kinney explained that they would need to come forward and provide proof of finance. Council Member Palmeri stated that there had been talk about bringing the Chamber building forward again and questioned if there was any truth regarding that. Mr. Kinney stated that there were no recommendations to bring the Chamber building forward. 5 Council Member Palmeri questioned why Dumkes thought they would be successful when Mr. Rikkers stated that they needed to step down due to the economy. Mr. Dumke explained that they had no vacancies in their buildings and have had success with other projects throughout the state. Proceedings of the Common Council -October 28, 2008 Council Member Palmeri questioned the reason to move forward only if handed over the project. Mr. Dumke explained that they were not set up to go through TIF's. He stated that 90% of the river was under-developed and this project was the hope to get other river projects going. Council Member McHugh stated that prime riverfront was a waste for student housing. Andy Dumke, 2030 Menominee Drive, stated that the goal was to bring downtown closer to the university by closing the gap. He stated that his potential tenants saw the university as a positive to their business. Council Member King questioned if the City would continue to develop the park and docks if the developer chose the option to extend the due diligence period and took the extension of two additional 30 day deferrals. Mr. Kinney stated that some of the design work had been started and construction was not allowed to take place on the river from March 1St through the end of May. Council Member King questioned where the funding would come from if the project would not take place and if the City would be responsible for the debt. Mr. Kinney stated that the project would start over from square one. He explained that the capitalized interest was covered through 2009 and there were additional funds to cover through 2010. He stated that a 2"d bond would not be issued and the City would not accrue any additional debt. Mr. Rohloff stated that timing for borrowing funds was important and that the development would follow. Council Member McHugh questioned if the tax increment exceeded the expectations would the developer have the access to the funds or would it automatically increase the payment on the debt. Mr. Kinney stated that the funds would pay on the debt and there was no developer's assistance grant. Mr. Dumke questioned if the liquor license was included in the development of that area. 6 Mayor Tower stated that Mr. Supple would relinquish the license. Council Member Tower questioned if the license was currently held by the Supple's and if they had the right to keep the license. Ms. Ubrig stated the license was held by Jay Supple and would not have to give the license up. Proceedings of the Common Council -October 28, 2008 Deputy Mayor Bain stated that the resolution to approve that license had been amended to keep the liquor license in that area and that Mr. Supple would not be allowed to use the license in another location. Ms. Lorenson stated that Mr. Supple would have to request Council to lift that condition. Council Member Esslinger stated that he had concern for the constituents regarding the risks. He was concerned that funding was provided without guarantees. He explained that the Dumke's proposal started with $12 million and that was no where near the $33 million. He stated that another concern was there had not been enough public input on the proposal. Council Member Palmeri stated that he would not support the resolution due to lack of public input. Council Member McHugh stated there should have been workshops and more public input. He expressed he was interested in more details from the developers. Deputy Mayor Bain stated that the project had been scaled back to make it more realistic and positive and that the Dumke group was investing their own money and there was no investment from the City. Council Member Tower stated that Dumkes have a great history with their projects and this project on the river was needed to move Oshkosh forward. Mayor Tower stated that he would support the resolution as the overall concept fit the mixed use. He stated that he was hopeful to have a small grocery store involved and that the development seemed like a reasonable approach. Council Member King stated that the Dumkes were dependable, trustworthy and have had success with their other developments. Resolution 08-412 Approve Tax Increment District No. 22 Project Plan; Designate Tax Increment District No. 22 Boundaries; Create Tax Increment District No. 22 Fair Acres Development Area Project (Plan Commission 7 Recommends Approval) MOTION: ADOPT (Esslinger; second, Bain) CARRIED: Ayes (4) King, Tower, Bain, Mayor Tower; Noes (3) Palmeri, McHugh, Esslinger Dick O'Day, 713 Hazel Street, stated that this was no benefit to the City. Steve Barney, 1216 Elmwood Avenue, stated that it was a good idea and he urged the Council to require the building to be Energy Star compliant. Proceedings of the Common Council -October 28, 2008 David Borsuk, 1970 Cliffview Court, stated that the City should not subsidize retail enterprise. He stated that this was taking business away from the downtown. He questioned how many jobs would be created and what the benefits were. He stated that this was a dangerous precedent to set. Doug Pearson, 2445 Hearthstone Drive, stated that he advises communities to use TIF and he was in support of Shopko and the TIF being used. Carl Sosnoski, 2574 Knapp Street, stated that this was a dangerous precedent to set and that "but for" had never been used in Oshkosh. He stated that the area was not blighted and the City should not be a partner in developing the project. Bernie Pitz, 617 West Irving Avenue, urged the Council not to allow the use of a TIF, as it was unfair to competition. Robert Cornell, 548 West Smith Street, stated that TIF's were available for a purpose and the north side was in need for development. John Casper, representing the Chamber of Commerce, urged the Council to support the resolution due to the north side being underserved and without the TIF the north side would remain vacant. He explained that TIF's had created tax increments for the City. He stated that within a ten year time frame five TIF's will close and create $213 million additional tax revenue dollars. Lisa Stibbs, 1924 Fairview Street, urged Council to support the project. She stated that some revenue was better than none and the kids on that side of the community needed jobs. Mayor Tower questioned what the development consisted of other than Shopko. Mr. Kinney stated that there were two buildings with two units in each creating four residential units that were necessary for the mixed use project. He stated that there was potential for street scaping and future use of money to enhance the area. 8 Mayor Tower stated that he had received 51 positive e-mails regarding the project and 12 against it. He explained that his concern was if it would have any negative effect on Shopko on the west side. Mr. Dumke stated that in June of 2006 Shopko signed a 20 year lease agreement and they would be subject to a $15 to $20 million contingent liability. Mayor Tower questioned if a TIF could be closed out earlier than the 20 year life. Mr. Kinney stated that if the TIF was generating sufficient increments to pay off bond it could be closed out early. Mr. Dumke explained the reasoning between the 7% return and the 10% return. He stated that if all went well the hope was to have the TIF paid off within 10 to 12 years. Proceedings of the Common Council -October 28, 2008 Mayor Tower questioned what the other retail was. Mr. Dumke stated that there could possibly be a shoe store, restaurant, and an automotive parts store. Mayor Tower explained that tax money would be collected during the life of the TIF and once the TIF was closed it would create taxable income. Deputy Mayor Bain questioned when groundbreaking would start for the construction with Shopko opening the summer of 2009. Mr. Dumke stated that the tenants were contingent with Shopko and would be developed in the summer. Council Member McHugh expressed his concerns for using TIF for retail and once the "but for" was used he questioned how the City could deny any developer a TIF setting precedent with the "but for". Mr. Kinney stated that every TIF ever used had a "but for" assistance. He explained that each location was examined to see if the project could succeed with or without a TIF. He explained that the review included location of the property and review of the financial circumstances associated with it. Mr. Rohloff stated that all "but for" TIF's require a financial analysis and the intent was not to set a precedent but to provide the north side with Shopko. Council Member Palmeri questioned if a retailer was to take over the Copps space on Jackson Street would they be granted a TIF. Mr. Rohloff stated that the property would need to be evaluated to see if it was worthy of a TIF. 9 Council Member Palmeri questioned if the Suamico Shopko had received a TIF. Mr. Dumke stated that he did not believe so, however, one of their other developments had participated in a TIF in the past. Council Member Palmeri stated that he had been reading about retail and that the market was creating smaller neighborhood stores. He questioned if cities were going to subsidize this with TIF's. Mr. Dumke stated that a precedent had already been set in the Fox Valley and showed examples of where TIF's were used in different locations of the area. Council Member Tower stated that he was concerned about the survival of the west side Shopko and questioned if there was a way to protect its disappearance. Proceedings of the Common Council -October 28, 2008 Mr. Dumke stated that Shopko had made their commitment in 2006 when they signed a 20 year lease. Council Member Esslinger questioned how it was determined that the highway 41 area would not be granted a TIF when there had been stores that had vacated buildings. Mr. Rohloff stated that TIF's need to be done on a case by case basis and that to say there would never be one granted for that area was inaccurate. He stated that in that area there were several developments that had proven to be successful without the use of a TIF. Council Member Esslinger explained that he was for the Shopko development on the north side; however, was not sure he could support it due to everything else that came with it. He stated that the lease for the westside Shopko did not list all of the options and there was no guarantee the store to remain open. Mr. Dumke stated that his concern as developers was to have a successful store. He stated that there was nothing that guaranteed the future for Shopko. Council Member Esslinger questioned if the TIF could be reduced to have a life of 10 years. Mr. Dumke explained that if things go well and they were closer to the 10% cap the TIF would be paid off much earlier than the life expectancy, if things would not go well, the 10% cap was needed for income to pay the bank. Council Member Esslinger questioned if the building was built and things would not go well, would the Dumkes come before Council and request to lower the assessment value. Mr. Kinney explained that this was a pay go bond and not a developer grant therefore; if the developer was not creating revenue the developer would not get paid. He stated that the 10 existing tax base would be frozen while the property generated tax dollars and there would be an obligation to pay taxes on what increments were generated. Council Member McHugh requested a clarification on the process to determine if a TIF would be granted. Mr. Kinney explained a hired firm would look at the financial circumstances associated with the property and the situation of the project. Council Member King questioned how the construction of the roundabout may or may not play part in success of the development. Mr. Dumke stated that the construction was going to be difficult on all the business in that area. He urged the Council to make a decision without regards to who the developer was. Proceedings of the Common Council -October 28, 2008 Deputy Mayor Bain stated that there was confusion regarding what allows for a TIF or not. He explained that there was a Wisconsin Law stating that TIF's could be created if an area was blighted, to improve business, to create mixed use development and/or for industrial sites. He stated "but for" had always been used in all TIF's. He stated that the City would continue to receive tax payments and the benefit was, if tax value increased the City would receive additional value amount. He stated that there was no cost to the City and taxpayers. He explained the City would only provide funding if actual value were to come through. He stated he would support the resolution. Council Member Tower stated he would support the resolution in order to move forward, risks needed to be taken. Council Member Palmeri stated that his concern was if it was proper for government to finance competition. He stated that he would like to require more green standards put in place and more assurance that the westside Shopko would not close. Council Member McHugh stated that 1 /3 of the constituents that contacted him were opposed to TIF's in general and specifically for big box stores. He stated that the developers received the profit and they should have to take the risk. He stated that he believed the project would work without the TIF. Council Member Esslinger stated that due to the length of the TIF and no guarantee that the west side Shopko would not close he would not support the resolution. Resolution 08-413 Approval of a Conditional Use Permit; Planned DevelopmentforaMlxed Commercial/Residential Development -Fair Acres Shopping Center Expansion; 1900 Jackson Street (Plan Commission Recommends Approval with Conditions) 11 MOTION: ADOPT (Bain; second, Esslinger) CARRIED: Ayes (6) King, Tower, McHugh, Esslinger, Bain, Mayor Tower; Noes (1) Palmeri Council Member Palmeri questioned why there was no traffic study completed. Darryn Burich, Director of Planning, stated that there would be no traffic impact analysis required due to the land being partially developed and there was good access with all the arterial streets surrounding the three sides. Council Member Palmeri questioned the impact of traffic if Shopko was to do well. Mr. Burich stated that the three surrounding arterial streets would accommodate traffic and the roundabout would increase the efficiency of traffic. Proceedings of the Common Council -October 28, 2008 Resolution 08-414 Approval of Amending Conditions on Previously Approved Conditional Use Permit; Planned Development - Near East Neighborhood Redevelopment Area (Plan Commission Recommends Denial) MOTION: ADOPT (Esslinger; second, Bain) CARRIED: Ayes (4) King, Palmeri, McHugh, Esslinger; Noes (3) Tower, Bain, Mayor Tower Robert Cornell, 548 West Smith Avenue, commended the Plan Commission for denying the request and questioned why Council voted the opposite way of the majority of the people. He urged the Council to vote while considering all areas. Mike Bonartz, Executive Director of Advocap, 2929 Harrison Street, stated that most of what has happened in the near east neighborhood was working and there were some things that needed to be changed. He expressed that he believed the action taken by Council at the September 11t" meeting made some individuals in the area feel that they had a voice. Polly Briley, 1249 Merritt Avenue, stated that an appeal was a judicial issue and should not become a political one. She stated that if committees and boards had no final decision then they should be dissolved and have all issues come before Council. Todd Sohr, 530 Grand Street, stated that he was pleased with the discussion at the September 11 meeting. He urged Council to allow the resolution as there should be another option if a citizen was not satisfied with the one they received. Thatcher Peterson, 527 Madison Street, urged Council to vote against the resolution. He 12 stated that Council should do legislative decisions, make ordinances and review the budget. He stated that if Council was to hear an appeal they should hear all appeals. Council Member Esslinger stated that the majority of people he had received e-mails from or had discussions with were not satisfied with the near east neighborhood plan. He stated that he agreed that it was a political issue and that is why an elected political board should have a voice in an appeal. He stated that if boards and committees were to make all final decisions that the Council should be dissolved. Council Member King urged Council to vote in favor of the resolution. She explained that if the Plan Commission made an objective decision and a citizen was not satisfied with it they could bring the appeal before the Council and then the Council would make an objective decision. She stated that this was an additional process if the citizen felt the Commission had made a subjective decision rather than an objective one. Council Member Tower stated that the Council Members were no more objective than the members of the Plan Commission. He explained that if there was a problem with the standard then the standards needed to be reviewed. Deputy Mayor Bain stated that he would not support the resolution due to lack of establishing where the current appeal process was problematic. Proceedings of the Common Council -October 28, 2008 Resolution 08-415 Approval of Conditional Use Permit; Planned DevelopmentforOperation of a Repair /Service Facility and Truck Stop/Temporary Storage Business - 1701 Fountain Avenue (Plan Commission Recommends Approval w/Conditions) MOTION: ADOPT (Esslinger; second, Bain) MOTION: LAYOVER UNTIL NOVEMBER 25, 2008 (Bain; second, Esslinger) CARRIED: Ayes (7) King, Palmeri, Tower, McHugh, Esslinger, Bain, Mayor Tower Council Member McHugh urged Mr. Rohloff to help resolve the issues that have been escalading among the citizen and the Commission. Citizen Statements Robert Cornell, 548 West Smith Avenue, urged all Council Members, staff and citizens to support the Oshkosh Seniors Center by joining the Friends of the Oshkosh Seniors Center. He explained there were no commitments to be made only a fee of $15 per year for a single person and $20 per year for a couple. He stated that an individual of any age could be a Friend of the Senior Center. Council Member announcements, Statements and Discussion Mayor Tower announced that there was a workshop on November 6t" to review the balance of 13 the operating budget; on November 18t" the workshop was regarding CIP and any additions to the operating budget. MOTION: CONVENE INTO EXECUTIVE SESSION PURSUANT TO SECTION 19.85 (1) and (E) OF THE WISCONSIN STATE STATUTES TO DISCUSS NEGOTIATION AND STRATEGY FOR THE LAND ACQUISITION REGARDING JACKSON STREET AND MURDOCK AVENUE INTERSECTION IMPROVEMENT WHERE COMPETITIVE AND BARGAINING REASON REQUIRE A CLOSED SESSION (Bain; second, Esslinger) CARRIED: Ayes (7) King, Palmeri, Tower, McHugh, Esslinger, Bain, Mayor Tower MOTION: ADJOURN (Bain; second, Esslinger) CARRIED: VOICE VOTE The meeting adjourned at 9:33 p.m. PAMELA R. UBRIG CITY CLERK 14