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HomeMy WebLinkAboutMinutes from 3/24/2009PROCEEDINGS OF THE COMMON COUNCIL CITY OF OSHKOSH, WISCONSIN 01HKQIH ON THE WATER REGULAR MEETING held Tuesday, March 24, 2009 at 6:00 p.m. in the Council Chambers, City Hall. Mayor Tower presided. PRESENT: Council Members Paul Esslinger, Tony Palmeri, Burk Tower, Dennis McHugh and Mayor Frank Tower EXCUSED: Council Member Bryan Bain. Council Member Jessica King arrived at 6:46 pm. ALSO PRESENT: Mark Rohloff, City Manager, Pamela Ubrig, City Clerk, Lynn Lorenson, City Attorney, and Dave Patek, Director of Public Works Council Member Esslinger read the Invocation. The Pledge of Allegiance was led by Cassie Laibly and Jared Erdman from Jacob Shapiro Elementary; and, David Anderson and Matthew Ludwig from Oakwood Elementary School. The Mayor presented the following proclamations declaring: 1. The month of April as "Buy American Month" in the City of Oshkosh. 2. April 5 through April 11 as "Oshkosh Auxiliary Police Week" in the City of Oshkosh. Public Hearing Ordinance 09 -76 Approve Zone Change from A -2 General Agriculture Extraterritorial Zoning to C -1 Neighborhood Business Extraterritorial Zoning, Southeast Corner of Clairville Road and 9th Street Road, Town of Algoma (Joint Extraterritorial Zoning Committee Recommends Approval) FIRST READING; LAID OVER UNDER THE RULES Kathleen Ochowicz, 1233 Ceape Avenue, stated her opposition to the ordinance. She stated that she had a disabled sister that lived in the area and this would increase the chance for her to be in an accident. There was no other appearance and the Public Hearing was CLOSED. PROCEEDINGS OF THE COMMON COUNCIL - MARCH 24, 2009 Consent Agenda Approval of March 10, 2009 Council Minutes. Approval of Bills Presented by the Finance Director. Receipt and Filing of Museum Board Minutes from February 5, 2009. Approval to Oshkosh Yacht Club / Utilize Menominee Park for National "E" Scow Championship / September 13, 2009. Approval to Volunteer Center of East Central Wisconsin / Utilize Menominee Park for the Human Race / May 2, 2009. Kathleen Ochowicz, 1233 Ceape Avenue, stated her support. Approval to Oaklawn School / Utilize Viola Street for their Annual Walk -A -Thou / April 20, 2009. Approval to Rotary Club / Utilize City Streets for their 4 th Annual Conquer the Concrete Wiffle Ball /May 2, 2009. Approval to Community Blood Center / Utilize Opera House Square for their 4 th Annual Operation Donation Event/ June 18, 2009. Kathleen Ochowicz, 1233 Ceape Avenue, stated her approval. Receipt of Claim filed with the City's Insurance Company / Eric Edgerly for damage to his vehicle from snow plow allegedly hitting side mirror. Receipt of Claim filed with the City's Insurance Company / Scott Sch u h art- Homestead Mutual Insurance for property damage allegedly from a water and sewage backup. Resolution 09 -77 Award Bid / Cleaning One Digester for Wastewater Treatment Plant to Synagro Central LLC ($63,450.00) Resolution 09 -78 Award Bid for Various Road Materials for 2009 to: Michels Materials Northeast Asphalt Inc. Vulcan Materials Co. Crew Concrete Lycon Inc. 4x Concrete Resolution 09 -79 Waive Bids and Contract for Repair of Clarifiers for Wastewater Treatment Plant ($224,294.00) 61 PROCEEDINGS OF THE COMMON COUNCIL - MARCH 24, 2009 Resolution 09 -80 Authorize Grant Application to the Wisconsin Department of Natural Resources for Storm Water Grant Program Kathleen Ochowicz, 1233 Ceape Avenue, questioned why it was not completed correct the first time. She questioned what the top priorities were. Resolution 09 -81 Approve and Submit Storm Water Program Annual Report Resolution 09 -82 Approve Accepting Sanitary Sewer and Water Main Easement at 3524 West County Road K Resolution 09 -83 Approve Amendment No. 2 / Gremmer and Associates, Inc. / Engineering Services for Design of Utility Relocations at US Highway 41 ($6,000.00) Resolution 09 -84 Approve Agreement with Wisconsin Department of Commerce; Designate Redevelopment Authority as Recipient / Neighborhood Improvements at 303 Oxford Avenue Resolution 09 -85 Rescind Personal Property Taxes (2nd Wind Exercise Equipment Inc.) Resolution 09 -86 Disallow Claim by Jane Putnam (snowplow truck allegedly threw an ice chunk and damaged siding) Resolution 09 -87 Disallow Claim by Jason Welty (damage allegedly to vehicle while impounded) Resolution 09 -88 Approval of Special Class B License and Operator's Licenses MOTION: ADOPT CONSENT AGENDA (Esslinger; second, McHugh) CARRIED: Ayes (5) Esslinger, Palmeri, Tower, McHugh, Mayor Tower ACTION TAKEN ON ORDINANCES AND RESOLUTIONS Ordinance 09 -89 Repeal and Recreate Ordinance Establishing the Energy and Environment Advisory Board to Create Sustainability Advisory Board (Energy and Environment Board Recommends Approval) FIRST READING; LAID OVER UNDER THE RULES Ordinance 09 -90 Approval of Loading Zone Changes on Kentucky Street and Parking Regulations Changes on Kentucky Street, Meadow Street, Pearl Avenue and 17th Avenue FIRST READING; LAID OVER UNDER THE RULES 3 PROCEEDINGS OF THE COMMON COUNCIL - MARCH 24, 2009 Ordinance 09 -91 Repeal and Recreate Section 23 -9 / Solid Waste Disposal — General Requirements / Elimination of Requirements Related to Blue Bag Recycling FIRST READING; LAID OVER UNDER THE RULES Resolution 09 -92 Amend Development Agreement Terms with Oshkosh River Development LLC - Marion Road /Pearl Avenue Redevelopment Project Area (RDA Recommends Approval) MOTION: ADOPT (Esslinger; second, McHugh) MOTION: AMEND TO REMOVE DEVELOPMENTS ONE AND TWO FROM THE PROPOSED AGREEMENT (Esslinger; second, Palmeri) LOST: Ayes (3) Esslinger, Palmeri, McHugh; Noes (3) King, Tower, Mayor Tower VOTE ON ORIGINAL RESOLUTION CARRIED: Ayes (4) King, Tower, McHugh, Mayor Tower; Noes (2) Esslinger, Palmeri Council Member Esslinger stated that he had spoken with Mr. Dumke regarding the properties north of Marion Road. Mr. Kinney, Director of Community Development, stated that he had several conversations with the Group and they wanted to work on the entire area. Council Member Esslinger questioned what would be developed on the parcel if the City was not successful with a hotel. Mr. Kinney stated that it would be residential or commercial development. Council Member Esslinger questioned what the assessed value amount would be for the parcel if a hotel was not developed and valuations needed to be made up elsewhere. Mr. Kinney stated that the minimum value on the parcel would be $6 million. He explained that the hotel held a higher value. He explained that the first agreement stated the amount after completion would be $33 million; however, due to changes which allowed for less to be borrowed the amount after completion would be $28.3 million. Council Member Esslinger questioned if the agreement dissolves at the end of June if no development was started on the south side of Marion Road. Mr. Kinney explained that the developers would decide to move forward or not at the end of their due diligence. He stated that the developers would determine if they would continue to pursue market opportunities. 4 PROCEEDINGS OF THE COMMON COUNCIL - MARCH 24, 2009 Council Member Palmeri questioned how long the developers had to develop the South side of the property. Mr. Kinney explained that the agreement stated there needed to be $3 million in the ground by the end of 2009; $10 million at the end of 2010; another $5 million at the end of 2011 and $10.3 by the end of 2012. Council Member Esslinger questioned what the penalty would be if valuations were not in the ground at time stated. Mr. Kinney stated that the agreement could be terminated. He explained that the Council and the Redevelopment Group could modify changes if needed. Council Member Esslinger questioned the time crunch if that would be put on the TIF. Mr. Kinney explained that the City would work closely with the development group to determine if the level of development would be met or not. He stated the City would be back to square one. He stated that the group had experience, knowledge and connections to proceed with the development. Council Member Esslinger questioned if the Dumkes would develop the area north of Marion Road if the other areas were not included in the plan. Andy Dumke, 2030 Menominee Drive, stated that they would like to develop the entire property. He stated that they would continue to develop the area north of Marion Road if the south side was removed from the plan. Council Member Esslinger questioned what the Dumkes would like to see develop, if a hotel would not be developed on the parcel. Mr. Dumke stated that he would like to vision condos in that area; however, with the economy the way it is that would not succeed currently. He explained that to build condos the group needed to have 75% sold prior to construction. He stated that the condos would range from $300,000 to $400,000. He stated that he would like residential developed on that parcel. Council Member Tower questioned the decrease in the amount of $5 million. Mr. Kinney explained that since the fall of 2008 there was a reduction in the overall cost. He stated that the plan had more detail design work than general design with decreased the cost. Mr. Rohloff explained that the riverfront cost decreased approximately $1.2 million which affected the valuation to generate tax increment dollars. Council Member Tower questioned the compatibility with the developments. 5 PROCEEDINGS OF THE COMMON COUNCIL - MARCH 24, 2009 Mr. Dumke explained that the building would be constructed of brick with balconies. He stated that the rent would be controlled by average income of the residents that were 55 years of age or older. He stated that the building would not be lower -end looking. Mr. Rohloff explained that the cost for construction of the building was more than the valuation. Mr. Dumke stated that the cost of the building was $7 million and the generated tax would be less than half the cost. Council Member Tower questioned the utilization of tax credits. Mr. Dumke explained that tax credits set the rent rates. He stated that it would be approximately $600 to $700 a month to rent the senior apartment. Mr. Rohloff stated that the cost impact of development had been considered. He stated that it took down the available valuation which allowed cost to be absorbed in other areas. Mr. Dumke stated that there had been $40 million of WHEDA money available through an application which allowed for development to take advantage of within a two year time period. Council Member Tower questioned what the retail expectations were. Mr. Dumke explained it would be similar to the Buffalo Wild Wings strip mall. He stated that there would be 4,000 square feet of restaurant space with a couple of 2,000 square feet spaces available that would be retail or offices. Council Member Palmeri questioned if the senior housing was on the water. Mr. Dumke stated that it would be. Council Member Palmeri stated that at the Redevelopment Authority meeting, Mr. Dumke stated that the housing would be off of the water. Art Dumke, 2020 Menominee Drive, explained that they had approval to develop on or off the water. He stated that at the current time to build off the water would be a higher risk. Council Member Palmeri questioned if the restaurant would be relocated from another place in town. Mr. Dumke stated that on the north side of the road they had been in contact with a restaurant that would be relocating. He stated that the restaurant would move from 1,500 square feet to 4,000 square feet. Council Member Palmeri questioned if Discovery Properties were partners with Dumkes. 2 PROCEEDINGS OF THE COMMON COUNCIL - MARCH 24, 2009 Mike Goudreau, 230 Ohio Street, stated that he himself was a partner; however, Discovery Properties was not. Council Member Palmeri stated that Discovery Properties had been charged over $2,300 from the City for snow removal. He questioned the assurance that the snow removal problem would not repeat with this property. Mr. Goudreau explained that the properties that had been charged were leased to college students. He stated that in their lease it stated that the tenant was responsible for snow removal. He stated that all the charges had been paid. He explained that in rental units consisting of four or more apartments the removal of snow was taken care of by the owner of the building. Council Member Palmeri suggested that the snow removal should be removed by the owner prior to the City having to do it. He stated that the project was substantially different from what had been proposed from the two previous developers. He stated that for fairness there should be another request for proposals. Mr. Rohloff stated that it would be unlikely to have another developer that would be as effective as the Fox River Group. He stated that they had identified the market issues and were requesting more flexibility after compiling all of their research. Council Member Palmeri stated that three or five years ago had senior housing been an option of development there may have been more developers coming forth; however, that was not what was proposed. He stated that the City looked for quality development. Mr. Kinney stated that it was not a drastic change from what the previous developer had proposed, as the land use frame work was the same. He stated that the Five Rivers project was a different scenario. Council Member Palmeri stated that he thought the changes were different. He questioned how the process would begin if the proposal was turned down. Mr. Rohloff stated that it would be a radical step back as the City would need to decide how to pay off the TIF. He stated that with the WHEDA route it was a high quality investment. Council Member McHugh questioned if the $28.3 included the hotel development. Mr. Kinney stated that the $28.3 million included the entire development of the 14.3 acres. Council Member McHugh question why the proposal had gone from steel to rip rap. Mr. Kinney explained that the steel proposal was in the original design and was needed for 90 -100 boat slips so the slips were not out in the water too far. He stated that the design had changed so steel was not a requirement. 7 PROCEEDINGS OF THE COMMON COUNCIL - MARCH 24, 2009 Council Member McHugh questioned if the current proposal included a marina. Mr. Kinney stated that the permit allowed for 47 slips. He stated that the development included 15 transient slips and the rest would be left to the developer for private use. Council Member McHugh stated that the previous developers had believed the development to be an extension of downtown. He stated that Neighborworks had wanted to reduce low income housing in the downtown area. He questioned the justification to cutting off the downtown when prior to this it had been a key selling point for the development of the property. Mr. Kinney stated that the downtown was not being cut off. He explained that the development was in the heart of UWO and the downtown. He stated that there was nothing wrong with mixed income housing. Council Member McHugh stated that the direction the development had taken was related to housing. Mr. Kinney stated that there would be a four mile extension of the WIOUWASH trail which tied everything together. Council Member McHugh questioned if citizens could anticipate student housing within the development. Mr. Kinney explained that Mr. Jungbacker would like to extend some of his apartment complexes in that area; however, it would not be on the 14.3 acres being discussed. He stated that it would be on the south side of Pearl Avenue. Council Member Esslinger questioned where the park space was. Mr. Kinney stated that there was a revision and rather than a park there was enhanced green space. He stated that the green space was between Marion Road and the riverwalk. He explained that constructed in this way, it was a gain for the City without the responsibility of maintaining it. Council Member Esslinger questioned if the docking system was going to be developed. Mr. Kinney stated that there would be 47 slips that would run parallel to the riverwalk. Council Member Esslinger stated that if the housing was for seniors with limited income they probably would not have a boat. Council Member McHugh questioned if having to develop the entire project would be more of a hindrance or a benefit. PROCEEDINGS OF THE COMMON COUNCIL - MARCH 24, 2009 Mr. Dumke stated that their company had spent time and money in this project already so they were ready to move forward. He stated that they would like to develop the entire area; however if it was part or none they would develop part. Mr. Rohloff questioned what the intent for the rest of the development would be. Mr. Dumke stated that in other communities office buildings had gone for over $200 a square foot. Council Member Esslinger stated that offices and condos were not exciting and would like to see other development. Council Member Tower questioned if Dumkes would rather have the entire acreage to develop or the two parcels. Mr. Dumke stated that they wished to develop the entire acreage. He explained that if a developer were to have an idea for developing a project that was better they would have no problem backing off and letting someone else take the project over. Resolution 09 -93 Approve Land Purchase at 1805 Jackson Street and Relocation of the KFC Restaurant / Jackson Street and Murdock Avenue Intersection Improvement Project ($1,517,500.00) MOTION: ADOPT (Esslinger; second, Palmeri) CARRIED: Ayes (4) King, Palmeri, Tower, Mayor Tower; Noes (2) Esslinger, McHugh Thomas Miller, 200 Josslyn Street, questioned where KFC was going to relocate. Mayor Tower stated that there had not been a location selected. Jeff Wicinsky, 6529 Lasley Shore, Winneconne, owner of the car wash at 502 West Murdock Avenue, stated that his concern was how much money the City was spending to create the roundabout. He stated that by taking six feet of his frontage would cause a problem for resale. He urged the City to fix the streets and the sewer problems prior to spending money purchasing property. He stated that he was concerned for the safety of bicyclists and pedestrians trying to cross the street. He stated that truckers had problems with roundabouts and that the existing businesses were not approving of it. Steve Barney, 1335 Summit Avenue, stated that the offer to KFC from the City was 43% more than the market value and with the fixtures relocation cost it was 67% more than the fair market value. He questioned what the cost was if an eminent domain offer was suggested. He stated that he was concerned that the City was purchasing the property for too much money. 0 PROCEEDINGS OF THE COMMON COUNCIL - MARCH 24, 2009 Kevin Karow, 681 West 5 th Avenue, questioned if the $141,000 for relocation fees could be removed until it was decided where they would relocate to. Kathleen Ochowicz, 1233 Ceape Avenue, stated that she was against the roundabout. Lois Luebke, 619 Division Street, suggested KFC to relocate into the college area. Carl Sosnoski, 2475 Knapp Street Road, stated that the City needed to purchase 23 parcels for the roundabout and KFC was only one of them. He stated that businesses in the area were not pleased to have a roundabout. Mr. Rohloff explained that the purchase was reached through an eminent domain process. He stated that the DOT had estimated the price of $1.4 million and it was purchased for $1.3 million. He stated that it was not at 100% of the assessed value. Mayor Tower questioned if the relocation price dropped to $20,000 if relocation was not decided on within one year. Mr. Patek stated that the fee would be $20,000 if there was no relocation. He explained that KFC had one year to notify the City of the relocation area and then a year from that to complete the relocation. Council Member Tower questioned if KFC needed to relocate within the City limits. Mr. Rohloff stated that there were no restrictions as to the relocation. Mr. Patek stated that the City had no authority as to where KFC would relocate. Mr. Rohloff stated that there were no restrictions as to where KFC would relocate. He stated that the relocation was an estimate of $141,000 and that the cost would vary. Mr. Patek stated that the City had to pay a relocation fee no matter where they relocated. Council Member Tower stated that they could open a new store and call it a relocation and the City would have to pay for it. Mr. Rohloff stated that the hope of the City was that they would relocate within the City. Council Member Tower questioned the $90,000 cost for fixtures and if that amount was typical. Mr. Patek explained that it was done differently because of having a land owner and a renter. He stated that the parties involved had different interests. 10 PROCEEDINGS OF THE COMMON COUNCIL - MARCH 24, 2009 Council Member Esslinger stated the City took a business off of the tax rolls, paid $1.5 million, the business could relocate out of Oshkosh and that it was all for a roundabout that no one wanted for an intersection that did not need improvements. He stated that the plan angered business owners in the area and that it was a waste of money. Resolution 09 -94 Reauthorization of Self- Insurance for Worker's Compensation MOTION: ADOPT (Esslinger; second, Palmeri) CARRIED: Ayes (6) Esslinger, King, Palmeri, Tower, McHugh, Mayor Tower CITIZEN STATEMENTS Lois Luebke, 619 Division Street, stated that the whole shore line on Marion Road needed to be developed. She urged the Council to develop a place for teens to gather. She stated that the agenda needed to be completed a week earlier. She urged Media Services to view the audience frequently and more close ups. Steve Barney, 1335 Summit Avenue, stated that it was unfortunate that the City had missed opportunities to reduce greenhouse gases. He stated that the policies needed to be revised. Todd Sohr, 530 Grand Street, stated that he had urged the Energy and Environment Board to create a water quality subcommittee. He was disappointed that there was no public comment at the last workshop regarding sustainability. He stated that the EPA would meet in Oshkosh this coming summer. He stated that there was a federal superfund site between Main Street and the railroad bridge that had been created May 5, 2006. Kevin Karow, 681 West 5 th Avenue, provided Council with pictures of standing water in his neighborhood. He explained that recent homes built were built too high which caused the water to be trapped in the yards. He urged the City to put in a drain to help control the flooding. Carl Sosnoski, 2475 Knapp Street, stated that he had concerns with the development in the City. He explained that Community Development had struggled to meet the needs of the citizens. He stated that there needed to be development to bring people into the community. He stated that the City needed transparency and sustainability. Kathleen Ochowicz, 1233 Ceape Avenue, stated that she agreed with Mr. Sosnoski. COUNCIL MEMBER ANNOUNCEMENTS, STATEMENTS AND DISCUSSION Mayor Tower announced for Deputy Mayor Bain that the "Fifth Tuesday Forum" would be held on March 31 with the location to be announced. Ms. Ubrig stated that the meeting would be held in the Community Room at the Police Department at 6 pm. 11 PROCEEDINGS OF THE COMMON COUNCIL - MARCH 24, 2009 Council Member Esslinger announced on March 28 at the Senior Center North (formerly the Annex) the Oshkosh Memorabilia Club would hold its 7 th antique appraisal show from 9 am to 2 pm. He stated that they bought, sold and appraised pieces and it was free to the public to attend. Mayor Tower stated that there were no workshops scheduled. CITY MANAGER ANNOUNCEMENTS, STATEMENTS AND DISCUSSION Mr. Rohloff stated that the City renewed the contract with the League of Wisconsin Municipal Insurance. He stated that two other companies had been reviewed. Council Member Palmeri questioned the length of the contract. He stated that League of Wisconsin Municipal Insurance handled the claim process through their claim adjusters. Mr. Rohloff stated that it was an annual renewal and that the City would review it again in five years. Council Member Palmeri questioned what was meant that the other two companies had the municipality review claims. Ms. Lorenson explained that Cities had administrative assistants and other committees review and process claims. Council Member Palmeri stated that it was more of a citizen friendly process to review claims from the City level. Mr. Rohloff stated that the service regarding claims had lacked and needed attention and that the company had reviewed how the claims were handled and made appropriate changes. Mr. Rohloff stated that the goal for the 400 Block parking lot was to begin by the end of July. He stated that the design would be completed by two different groups. He stated that the two groups were Tom Karrels and ACOM (formerly STS). He stated that the Grand Opera House had structure issues regarding the trusses. He explained that the floor joists had failed and the ceiling plaster was failing. He stated that he had directed Mr. Karrels to complete a full analysis of all the trusses and to remove the ceiling as an emergency measure. He stated that when reconstruction begins they will work with the historical society as 80% of the ceiling had been original. He stated that the City appreciated the work of the engineer and CR Meyer. He stated that the City had spent $48,000 on the investigation and shoring up the structure. He explained that there had been $235,000 budgeted for the sprinkler system. He stated that there has been a request for an estimated cost of the repairs. He stated that the media and the Council were invited to review the structure of the Grand Opera House the following day. Council Member Tower suggested scheduling the organization meeting. 12 PROCEEDINGS OF THE COMMON COUNCIL - MARCH 24, 2009 Mayor Tower stated that the election was April 7 the next Council Meeting was April 14 and the organization meeting would be held on April 21 MOTION: CONVENE INTO CLOSED SESSION FOLLOWING THE ADJOURNMENT OF THIS MEETING TO DISCUSS THE PERFORMANCE EVALUATION REGARDING THE CITY MANAGER, AN EMPLOYEE OVER WHICH THE COMMON COUNCIL HAS JURISDICTION AND EXERCISES RESPONSIBILITY PURSUANT TO SECTION 19.85(1)(c) OF THE WISCONSIN STATE STATUTES. (Tower; second, Esslinger) CARRIED: Ayes (6) Esslinger, King, Palmeri, Tower, McHugh, Mayor Tower MOTION: ADJOURN ( Esslinger; second, Palmeri) CARRIED: VOICE VOTE The meeting adjourned at 8:22 p.m. PAMELA R. UBRIG CITY CLERK 13