HomeMy WebLinkAbout09-84MARCH 24, 2009
09 -84 RESOLUTION
(CARRIED 5 -0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE AGREEMENT WITH WISCONSIN DEPARTMENT
OF COMMERCE; DESIGNATE REDEVELOPMENT AUTHORITY
AS RECIPIENT / NEIGHBORHOOD IMPROVEMENTS AT
303 OXFORD AVENUE
INITIATED BY: DEPARTMENT OF COMMUNITY DEVELOPMENT
REDEVELOPMENT AUTHORITY ACTION: Approved
WHEREAS, the 2007 Biennial State Budget contained a $25,000 earmark for the
City of Oshkosh to be used for neighborhood improvement and stabilization; and
WHEREAS, it is proposed to use these funds to offset the sale price of a home
being constructed at 303 Oxford Avenue, which property is owned by the
Redevelopment Authority of the City of Oshkosh; and
WHEREAS, Department of Commerce regulations stipulate the grant funds must
be awarded to the City of Oshkosh; and
WHEREAS, the Redevelopment Authority of the City of Oshkosh approves
accepting said grant funds for the improvement project at 303 Oxford Avenue and
requests that the City designate the Redevelopment Authority as the recipient of all
notices for said grant.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the City hereby accepts grant funds from the Wisconsin Department of
Commerce for neighborhood improvements at 303 Oxford Avenue.
BE IT FURTHER RESOLVED that the City hereby designates the
Redevelopment Authority of the City of Oshkosh as the recipient of all notices relative to
this grant.
BE IT FURTHER RESOLVED that the proper City officials are hereby authorized
to execute and deliver the attached agreement in substantially the same form as
attached hereto, any changes in the execution copy being deemed approved by their
respective signatures, and said officials are authorized and directed to take those steps
necessary to implement the terms and conditions of the Agreement.
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OJHKOIH
ON THE WATER
TO: Honorable Mayor and Members of the Common Council
FROM: Jackson Kinn
Director of Co ity Development
DATE: March 16, 2009
RE: Assignment of Legislative Award to the Redevelopment Authority
BACKGROUND
The current State Biennial Budget contains a $25,000 earmark specifically identified for use in a
single family infill construction project in the Near East that is affordable to a low to moderate
income buyer.
The State Budget earmark was in the name of the City of Oshkosh, but the project is under the
jurisdiction of the Redevelopment Authority. The requested Council action is the transfer of the
earmarked funds from the City of Oshkosh to the Redevelopment Authority for the purpose of
fulfilling the conditions of the earmark.
The Redevelopment Authority (RDA) authorized the purchase of 303 Oxford at a Sheriff's Sale
as part of the blight elimination effort in the Near East Neighborhood. The house was razed and
the RDA partnered with the Oshkosh Area School District construction training program on the
construction of a new single family home on that site. The RDA also partnered with the
Winnebago County Housing Authority First Time Homebuyer program for assistance in finding
a qualified buyer. The home is coming along well and will be ready for purchase and occupancy
in June. A qualified buyer has been trained and is ready for purchase.
ANALYSIS
Removal of blighted properties and infill construction of new single family homes where
possible are activities identified as necessary in the Near East Redevelopment Plan previously
adopted by the Common Council.
Not only does this project address goals identified in the Near East Plan, it also will benefit the
City by increasing the assessed value of the property from $48,000 at the time of purchase to an
estimated assessed value of $100,000 and it involves a working partnership between the
Redevelopment Authority, School District, Winnebago County Housing Authority and the State
of Wisconsin. Finally, a low to moderate income household is being provided the benefits of
homeownership.
FISCAL IMPACT
303 Oxford was purchased by the Redevelopment Authority in April of 2006 at a Sheriff's Sale.
Expenses incurred to date by the City have all been funded through the Community
Development Block Grant (CDBG) program and are as follows:
Expense
CDBG Funds Used
Acquisition price
$27,901.00
Transfer tax
83.70
2006 prorated taxes
1,051.64
New door lock/keys
24.39
Letter report
55.00
Asbestos testing and abatement monitoring
1,334.25
Asbestos abatement
1,225.00
Demolition
7,500.00
Contract mowing and shoveling
1,366.00
Storm water charges
130.36
Total Expenditures through 3/13/09
1 40,671.34
The cost of construction is covered by School District funds and is recouped at the time of sale.
The earmark funds will be provided as a deferred payment loan to be used for down payment
assistance to make the home affordable to the income qualified purchaser. The loan will be
secured by a second mortgage and will be recovered at such time the house is sold by the buyer.
Recovered funds will be reprogrammed into future neighborhood improvement efforts.
At the time of RDA purchase at the Sheriff's Sale, the assessed value of 303 Oxford was
$48,000. After a preliminary review of the building plans and elevations, the Assessors Office
estimates the new assessed value to be at least $100,000.
RECOMMENDATION
Staff recommends approval of the transfer of $25,000 in earmark funds for the construction of a
single family home in the Near East Neighborhood from the City of Oshkosh to the
Redevelopment Authority of the City of Oshkosh for use as a deferred payment loan for down
payment assistance.
Approved,
City Manager
COOPERATOIN AGREEMENT BETWEEN RDAOF OSHKOSH
AND
OSHKOSH AREA SCHOOL DISTRICT
303 Oxford Street, Oshkosh, Wisconsin
THIS AGREEMENT, by and between the REDEVELOPMENT AUTHORITY OF THE
CITY OF OSHKOSH, a Wisconsin municipal corporation located in Winnebago County,
Wisconsin, hereinafter referred to as "RDA" and OSHKOSH AREA' SCHOOL DISTRICT,
hereinafter referred to as "SCHOOL DISTRICT."
Whereas, the RDA owns the property at 303 Oxford Street in the REDEVELOPMENT
AUTHORITY OF THE CITY OF OSHKOSH on which there is a garage but no home or other
structure; and
Whereas, the RDA and the SCHOOL DISTRICT desire to cooperate in the construction
of a single family home on the aforementioned property in conjunction with the SCHOOL
DISTRICT'S construction education program; and
Whereas, the CITY has funding available in the amount of $20,000 it has received from
the State of Wisconsin Division of Housing for a new construction project in the Near East
Neighborhood.
NOW, therefore, the parties agree as follows:
1. Purpose of Agreement .
The SCHOOL DISTRICT and the RDA agree to cooperate in the construction of an
affordable single family home under Department of Housing and Urban Development (HUD)
guidelines, and the rehabilitation of an existing garage, at 303 Oxford Street,
REDEVELOPMENT AUTHORITY OF THE RDAOF OSHKOSH, and its sale to a low to
moderate income household.
3. SCHOOL DISTRICT Responsibilities and Authority
The OSHKOSH AREA SCHOOL DISTRICT hereby agrees:
A. to construct a single family home and rehabilitate the existing garage, at its own cost
except for the funds /work to be contributed by the RDA as identified herein, per
approved plans and to code and in a timely manner;
B. that the cost of construction and rehabilitation will not exceed $105,000.00;
C. that the home will be ready for occupancy on or before July 1, 2009. If the work is not
completed in a timely manner, the RDA reserves the right to complete the work and any
additional costs incurred by the RDA for completion of the work under this paragraph
will be deducted from the share to be received by the SCHOOL DISTRICT upon the sale
of the property;
D. to maintain the site, including but not limited to the sidewalk, lawn, and yard, beginning
the date this document is executed through the day of sale;
E. to pay all utility costs incurred prior to sale of house;
F. to pay for all waste removal from the site; and,
G. to carry necessary liability and other necessary insurance on the property until it is sold.
4. RDA Responsibilities and Authority
The REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH hereby agrees:
A. to review and approve building design and construction plans pursuant to its normal and
usual standards and procedures;
B. to coordinate with Winnebago County Housing Authority First Time Homebuyer
Program to secure a buyer able to purchase the home on or before June 15, 2009;
C. to Provide funds to cover the cost of providing utilities to the building; and,
D. Contribute $20,000 in funding from the Division of Housing to offset construction costs
to ensure affordability.
5. Indemnification
The RDA agrees to indemnify and hold harmless the SCHOOL DISTRICT (including its
Board members, directors, officers, employees, ,agents, shareholders, insurers, successors and
assigns) from and against any and all claims, demands, penalties, fees, fines causes of action,
liabilities, settlements, damages, costs and expenses, including without limitation, attorneys and
consultants fees, investigation fees, court costs, and litigation expenses, and other costs of
defense, known or unknown, contingent or otherwise, arising out of or in any way related to the
negligence of any employee of the REDEVELOPMENT AUTHORITY OF THE CITY OF
OSHKOSH in the performance of its duties under the terms of this agreement, including, but not
limited to liability for:
A. Any personal injury or bodily injury (including wrongful death) or property damage (real
or personal);
B. Any lawsuit brought or threatened, settlement reached, or local, state or federal
government or agency order, including, but not limited to claims costs, liabilities, or
expenses, arising under federal, state or local law;
C. Any violation of laws, orders, regulations, requirements, or demands of any
governmental authorities; and
D. Any breach or violation of any contractual provision of whatever kind with any third
Ply
The SCHOOL DISTRICT agrees to indemnify and hold harmless the RDA (including its
Board members, directors, officers, employees, agents, shareholders, insurers, successors and
assigns) from and against any and all claims, demands, penalties, fees, fines causes of action,
liabilities, settlements, damages, costs and expenses, including without limitation, attorneys and
consultants fees, investigation fees, court costs, and litigation expenses, and other costs of
defense, known or unknown, contingent or otherwise, arising out of or in any way related to the
negligence of any employee of the SCHOOL DISTRICT in the performance of its duties under
the terms of this agreement, including, but not limited to liability for:
A. Any personal injury or bodily injury (including wrongful death) or property damage (real
or personal);
B. Any lawsuit brought or threatened, settlement reached, or local, state or federal
government or agency order, including, but not limited to claims costs, liabilities, or
expenses, arising under federal, state or local law; '
C. Any violation of laws, orders, regulations, requirements, or demands of any
governmental authorities; and
D. Any breach or violation of any contractual provision of whatever kind with any third
ply.
6. Compensation and Insurance
Each party hereunder shall be responsible for the compensation and coverage of its own
employees, including liability and workers compensation coverage. Additionally, the. SCHOOL
DISTRICT shall insure the property improvements and their contents.
Dated this 4 day of September, 2008.
OSH OSH A SCHOOL DISTRICT
By.
Scott Altmann, Director of Business Services
Dated this day of September, 2008.
REDEYE MENT ORITY OF THE CITY OF OSHKOSH
By:
Thomas Belter, hair
and
By:
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