Loading...
HomeMy WebLinkAboutMemo _____________________________ RDA September 16, 2009 Memo 1 City of Oshkosh -Department of Community Development 215 Church Avenue Oshkosh, WI 54901 (920) 236-5055 (920) 236-5053 fax MEMORANDUM TO: City of Oshkosh Redevelopment Authority FROM: Jackson Kinney Director of Community Development/RDA Executive Director DATE: September 10, 2009 RE: September 16th Agenda Items Amendment to South Shore Redevelopment Area Project Plan The first item of business will be to hold a Public Hearing on Amendment #2 to the South Shore Redevelopment Area Project Plan. The proposed amendment will provide for the inclusion in the district of the main Jeld-Wen plant site at 421 Oregon Street and six adjoining residential properties, all of which are located east of Iowa Street and north of W. 6th Avenue next to the Jeld-Wen property. Portions of the Jeld-Wen property are already in the redevelopment district, with those being two parcels on either side of Oregon Street north of W. 6th Avenue, as well as an approximate 5 acre area on the northwest corner of their site next to the Fox River and adjacent to the former Boat Works property. The South Shore Redevelopment Area was created in 2003, and expanded in 2005. In June Jeld-Wen Corporation announced plans to close their Oshkosh operation in August, and at this point it appears primary manufacturing activities have ceased. By incorporating the main plant site in the South Shore Redevelopment Area, the City will be clearly stating that it finds the most desirable and appropriate uses for the area to be for non-industrial uses and activities. Also, in order for the community to pursue implementation of Redevelopment Objectives set forth in the amended Project Plan, it recommended that the subject area be rezoned to C-3 Central City Commercial with a “PD” Planned Development Overlay District. _____________________________ RDA September 16, 2009 Memo 2 In accordance with State Statutes regarding the proposed expansion of existing Redevelopment Areas, the RDA notified all existing property owners within both the existing district boundaries as well as in the expansion area of the proposed amendment. Resolution 09-17: Approval of Amendment #2 to South Shore Redevelopment Area Project Plan Attached to the Memo is the Project Plan document. The current schedule is for the RDA to take action on this Resolution at the September 16th meeting. The amendment will then be scheduled for review and action by the Common Council on September 22nd. With approval of the amendment to the Project Plan, the rezoning process of the subject area will be initiated in October (which will include the Jeld-Wen parcel on the west side of Oregon Street as well as the approximate 5 acre portion of the Jeld-Wen property to the west of the main plant site, and including the former Boat Works property and City owned property west of Michigan Street and north of W. 4th Avenue. At the same time the City will initiate the Official Mapping of the proposed riverwalk west of Oregon Street to W. 4th Avenue, and the Official Mapping of the extension of Iowa Street to the north to connect with the proposed Official Mapping of W. 4th Avenue to the east. Resolution 09-18: Establish Fair Market Value; Authorize Purchase – 1 East 8th Avenue The RDA is asked to approve Resolution 09-18 which will provide for the acquisition of the property at 1 E. 8th Avenue from Chamco for $785,000. The property at 1 E. 8th Avenue is the site of the former Miles Kimball distribution building located on the east side of S. Main Street between E. 8th and E. 9th Avenues. In May, 2005 the Council passed Resolution 05-153, which provided a guarantee that the City would fund the RDA’s acquisition of the property from Chamco. Chamco had agreed to purchase the property that had formerly been owned by Alberta Kimball (and was in the Anhaltzer Trust at the time of acquisition), to preserve the City/RDA’s ability to acquire the property at a future point for redevelopment, while enabling the property to be used in the short term for industrial purposes by H&M Commercial, which would be a lessee of Chamco. H&M Commercial is the parent company of Advanced Military Packaging (Ad Inc), which is the actual tenant in the building. Prior to Chamco’s purchase of the property, the City had been approached by representatives of the Kimball Trust who recognized that the City would possibly be interested in acquiring the property, given its strategic location in the South Shore Redevelopment Area. Two appraisals had been prepared on the property: one had set a market value of $1,128,000; while the second set a value of $800,000. Prior to the City/RDA taking action on the possible acquisition, H&M Commercial approached Chamco to seek Chamco’s assistance in acquiring the property at 1. E. 8th Avenue as part of Chamco’s Spec Building Program. H&M had previously acquired the former Universal Foundry property at 43 E. _____________________________ RDA September 16, 2009 Memo 3 7th Avenue, which is across the street from the building at 1. E. 8th Avenue. Chamco, recognizing H&M’s purchase of the property at 1. E. 8th Avenue could negatively impact the City/RDA’s future plans for the area, worked with the City/RDA on a plan to enable H&M to utilize the property in the immediate term as a lessee of Chamco (to meet short term needs associated with contracts with Oshkosh Truck), while preserving the City/RDA’s ability to acquire the property from Chamco at a future point at a reasonable cost and without having to bear significant relocation expenses. Based on a four year lease period, the City agreed to cover the cost of the acquisition at a purchase price of $785,000. The four year lease between Chamco and H&M expired in June. An extension was granted to H&M to continue Ad Inc’s occupancy until October 31, 2009, with the extension based on the City providing funds to the RDA to enable the RDA to complete the acquisition before the end of October. Council recently gave approval to a State Land Trust borrowing to cover the cost of acquiring 1 E. 8th Avenue as well as the funding for the demolition of the building. Preliminary Spot Blight Determinations/Initial Resolutions on Bond Financing for the Shops at Market Fair, 1508-1550 S. Koeller Street and for River Valley One Project at 524 N. Koeller Street The RDA is asked to approve Resolutions that provide Preliminary Blight Determinations and set Public Hearings on the Blight Determinations, as well as approving Initial Resolutions on issuance of Redevelopment Revenue Bond Financing for two separate commercial properties on Koeller Street. The properties include: • The Market Fair commercial center at 1508-1550 S. Koeller Street (see attached map) • A commercially zoned property at 524 N. Koeller Street (see attached map) Attached to this Memo are letters from J. Peter Jungbacker and Andy Dumke pertaining to the requested Resolutions. The resolutions that relate to spot blight determinations, and the associated resolutions on the issuance of bonds, are a necessary step in enabling the separate LLC’s to avail them of special bond financing in support of commercial projects on their respective properties. The September 16th actions set the stage for Preliminary Blight Resolutions to be presented to the Common Council on September 22nd, and on Final Blight Resolutions presented to the RDA at a special meeting on October 21st. If these approvals are received, the Council will need to act on a Final Blight Resolution on October 27th. Scheduling of Final Bond Resolutions will be set based on when the borrowers are ready to proceed with the financing, which may or may not occur at the October 21st meeting. _____________________________ RDA September 16, 2009 Memo 4 At the RDA’s August 13th meeting Initial Resolutions were also approved for Redevelopment Revenue Bond Financing on three projects to be undertaken in the Marion Road/Pearl Avenue Redevelopment Area by Oshkosh River Development. As noted in the above paragraph, the Final Bond Resolutions on the Marion Road/Pearl Avenue projects will also be brought forward when Oshkosh River Development is ready to proceed with the financing. The Redevelopment Revenue Bonds, if issued, would fall under the Midwestern Disaster Area Bond program authorized by Congress in October of 2008. Congress created the bond program through the Heartland Disaster Tax Relief Act of 2008 to assist states and designated counties within the states that sustained economic losses resulting from flooding that occurred in 2008. The program was modeled after a similar program put in place to address losses sustained from Hurricane Katrina. The bond program does not allocate actual federal dollars, or state dollars, but it provides parties with the ability to secure tax exempt financing/bonds in support of a wide variety of project activities, including commercial and residential developments. In order for parties to receive tax exempt financing from both federal and state taxes, it is necessary for projects to be located in either redevelopment districts or for properties to be found to have spot blight conditions. As noted, in the case of the Koeller Street properties, the avenue for securing the favorable tax exempt bond financing is for the RDA to find that the properties meet the definition of spot blight under the State Statutes. It’s also important to note that parties who participate in the program would not have had to actually sustained flood damage themselves to participate in the program. Essentially, the Midwestern Disaster Area Bond program recognizes that designated areas suffered some level of economic loss from the 2008 flood event, and projects that can be stimulated/enhanced and supported by the program in designated areas will add new economic value to the area, which helps address economic losses that occurred from the flood event. Resolution 09-19: Consideration of Resolution Preliminarily Determining Project Site to be Blighted and Providing for a Public Hearing with Respect to the Blight Determination for Property Located at 1508-1550 South Koeller Street (The Shops at Market Fair Project) Attached to the Resolution is a Blight Report which provides information to show how the property should be deemed to qualify as a spot blighted property under State Statutes. It should be recognized that the determination is liberally construed, and if approved by the RDA, is associated with assisting the LLC in obtaining favorable tax exempt financing, which in turn can enable the developer to provide a level of improvements and an overall investment in the property and area that may not otherwise be possible. _____________________________ RDA September 16, 2009 Memo 5 Resolution 09-20: Initial Resolution Regarding Redevelopment Revenue Bond Financing for The Shops at Market Fair Resolution 09-21: Consideration of Resolution Preliminarily Determining Project Site to be Blighted and Providing for a Public Hearing with Respect to the Blight Determination for Property Located at 524 North Koeller Street Attached to the Resolution is a Blight Report which provides information to show how the property should be deemed to qualify as a spot blighted property under State Statutes. It should be recognized that the determination is liberally construed, and if approved by the RDA, is associated with assisting the LLC in obtaining favorable tax exempt financing, which in turn can enable the developer to provide a level of improvements and an overall investment in the property and area that may not otherwise be possible. Resolution 09-22: Initial Resolution Regarding Redevelopment Revenue Bond Financing for River Valley One LLC If anyone has questions pertaining to the above noted agenda items, please feel free to contact me at your convenience.