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HomeMy WebLinkAbout10-126APRIL 13, 2010 10 -126 RESOLUTION (CARRIED 7 -0 LOST LAID OVER WITHDRAWN ) PURPOSE: RATIFY EXECUTION OF LEASES AND ASSIGNMENTS AND AUTHORIZE FUTURE LEASES AND ASSIGNMENTS FOR PURPOSES OF SECURING FINANCING COMMITMENTS FOR THE MARION ROAD/ PEARL AVENUE REDEVELOPMENT AREA INITIATED BY: CITY ADMINISTRATION REDEVELOPMENT AUTHORITY ACTION: Approved WHEREAS, The Redevelopment Authority of the City of Oshkosh, the City of Oshkosh and Oshkosh River Development, LLC entered into a Second Amended and Restated Development Agreement dated July 29, 2009, for the purpose of developing the area known as the Marion Road /Pearl Avenue Redevelopment Area; and WHEREAS, the Second Amended and Restated Development Agreement anticipated the sale of the property to Oshkosh River Development prior to the start of construction activities upon each parcel within the Redevelopment Area; and WHEREAS, the City of Oshkosh applied for and received Grants for Environmental Remediation from the United States Environmental Protection Agency, the State of Wisconsin Department of Commerce and the State of Wisconsin Department of Natural Resources in the total amount of $1,000,000; and WHEREAS, the terms of the Grants require that the City of Oshkosh and Redevelopment Authority remain the owner of the property during the environmental remediation activities upon the property and during the life of the grant; and WHEREAS, the most efficient means of undertaking the environmental remediation activities upon the property is to do so in connection with the construction of the planned developments upon the individual parcels requiring the City and RDA to enter into lease agreements and assignments for the purpose of facilitating the construction and financing of the projects during the period prior to completion of the environmental remediation and transfer of the properties to Oshkosh River Development, LLC. WHEREAS, the leases and assignments are consistent with the terms of the Development Agreement; and WHEREAS, time was of the essence with regard to the execution of these documents. APRIL 13, 2010 10 -126 RESOLUTION CONT'D NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the actions of the City Manager, RDA Executive Director and other appropriate City officials signing and executing the lease and assignment of lease for purposes of facilitating the construction and financing of the projects in the Marion Road /Pearl Avenue Redevelopment Area are hereby ratified. BE IT FURTHER RESOLVED that the City Manager, RDA Executive Director and any other appropriate RDA and City officials are hereby authorized to sign and execute any additional leases and assignments of leases not inconsistent with the terms of the amended and Restated Development Agreement for the Marion Road /Pearl Avenue Redevelopment Area for the purpose of facilitating the construction and financing of the remaining projects. CITY HALL 215 Church Avenue P.O. Box 1130 Oshkosh, 54903-1130 City of Oshkosh 0 O.IHKOIH TO: Honorable Mayor and Members of the Common Council and Members of the Redevelopment Authority of the City of Oshkosh FROM: Lynn A. Lorenson, City Attorney DATE: March 23, 2010 RE: Resolution to Ratify the Execution of Leases and Assignments of Leases and Authorize Future Leases and Assignments of Leases for Purposes of Securing Financing Commitments for the Marion Road /Pearl Avenue Redevelopment Area BACKGROUND The City of Oshkosh and The Redevelopment Authority of the City of Oshkosh and Oshkosh River Development, LLC entered into a development agreement for the purpose of developing the area known as the Marion Road /Pearl Avenue Redevelopment area. The Second Amended and Restated Development Agreement between these parties was entered into on July 29, 2009, and anticipated the sale of individual parcels within the Redevelopment Area to Oshkosh River Development, LLC as Oshkosh River Development was prepared to commence construction on each parcel. The City applied for, and was awarded, several grants from the United States Environmental Protection Agency ($200,000.00), the State of Wisconsin Department of Commerce ($600,000.00) and the State of Wisconsin Department of Natural Resources ($200,000.00) to pay for the required environmental remediation on the site. The total amount of the grants awarded was $1,000,000 for this redevelopment area. ANALYSIS While the Development Agreement anticipated that the City would sell the individual parcels of land within the redevelopment area to Oshkosh River Development, LLC as Oshkosh River Development, LLC was prepared to commence construction on each parcel, the terms of the grants require that the 0 Ratify Leases and Assignment of Leases / Oshkosh River Development 3/23/10: Page 2 City maintain ownership of the property during the environmental remediationand life of the grant. In order to accommodate the grant requirements, city staff worked closely with Oshkosh River Development, LLC and it's bank to develop a Lease and Conditional Assignment of Lease which were consistent with the requirements of the Development Agreement and also met the needs of the bank for financing purposes. Because this situation was not anticipated at the time the parties entered into the Development Agreement, the Development Agreement did not address this issue specifically. Normally, the execution of documents such as these, which are consistent with the terms of the Agreement, would be considered administration of the agreement and within staff's authority without further approval by the RDA or Council. However, because this issue was not anticipated, we wanted to inform both the RDA and Council of the action taken and ask each of those bodies to ratify the action taken with regard to those parcels already under construction and to specifically authorize staff to sign similar documents necessary to carry out the terms of the Development Agreement. FISCAL IMPACT There is no anticipated Fiscal Impact from the requested action. RECOMMENDATION It is recommended that the Redevelopment Authority and the Common Council approve the resolution to ratify the execution of the leases and assignments and authorize future leases and assignments for purposes of securing financing commitments for the Marion Road/ Pearl Avenue Redevelopment Area. j ectfully Sub 'tted, A. Lore ttorney Approved: Mark A. Rohloff City Manager MARCH 30, 2010 RESOLUTION (CARRIED LOST LAID OVER WITHDRAWN ) PURPOSE: RATIFY EXECUTION OF LEASES AND ASSIGNMENTS AND AUTHORIZE FUTURE LEASES AND ASSIGNMENTS FOR PURPOSES OF SECURING FINANCING COMMITMENTS FOR THE MARION ROAD/ PEARL AVENUE REDEVELOPMENT AREA INITIATED BY: CITY ADMINISTRATION WHEREAS, The Redevelopment Authority of the City of Oshkosh, the City of Oshkosh and Oshkosh River Development, LLC entered into a Second Amended and Restated Development Agreement dated July 29, 2009, for the purpose of developing the area known as the Marion Road /Pearl Avenue Redevelopment Area; and WHEREAS, the Second Amended and Restated Development Agreement anticipated the sale of the property to Oshkosh River Development prior to the start of construction activities upon each parcel within the Redevelopment Area; and WHEREAS, the City of Oshkosh applied for and received Grants for Environmental Remediation from the United States Environmental Protection Agency, the State of Wisconsin Department of Commerce and the State of Wisconsin Department of Natural Resources in the total amount of $1,000,000; and WHEREAS, the terms of the Grants require that the City of Oshkosh remain the owner of the property during the environmental remediation activities upon the property and during the life of the grant; and WHEREAS, the most efficient means of undertaking the environmental remediation activities upon the property is to do so in connection with the construction of the planned developments upon the individual parcels requiring the City and RDA to enter into lease agreements and assignments for the purpose of facilitating the construction and financing of the projects during the period prior to completion of the environmental remediation and transfer of the properties to Oshkosh River Development, LLC. WHEREAS, the leases and assignments are consistent with the terms of the Development Agreement; and WHEREAS, time was of the essence with regard to the execution of these documents. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Authority of the City of Oshkosh that the actions of the City Manager and other appropriate City Officials signing and executing the lease and assignment of lease for purposes of facilitating the construction and financing of the projects in the Marion Road /Pearl Avenue Redevelopment Area are hereby ratified. BE IT FURTHER RESOLVED that the City Manager, Community Development Director and any other appropriate City Officials are hereby authorized to sign and execute any additional leases and assignments of leases not inconsistent with the terms of the amended and Restated Development Agreement for the Marion Road /Pearl Avenue Redevelopment Area for the purpose of facilitating the construction and financing of the remaining projects.