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RDA Minutes June 6, 2005 Page 1 CITY OF OSHKOSH REDEVELOPMENT AUTHORITY MINUTES June 6, 2005 8:00 AM PRESENT: Tom Belter, John Bermingham Jr., William Castle, Steve Hintz, Robert Pung,
John Ruppenthal EXCUSED: Sheldon Lasky STAFF: Jackson Kinney, Executive Director /Director of Community Development; Susan Kepplinger and Kristi Bales, Principal Planners; Darlene Brandt,
Recording Secretary The meeting was called to order at 8:00 AM by Chairman Ruppenthal. Approval of Consent Agenda Mr. Pung asked that the May 18 closed session minutes be changed to
reflect he was not in attendance. Motion by Bermingham, seconded by Castle, to approve the Consent Agenda as amended. Motion carried by voice vote. PUBLIC HEARING /Proposed Acquisition
of Property – 362 Michigan Street Chairman Ruppenthal opened the public hearing portion of the meeting. No one appeared before the Authority. The public hearing was closed. (Mr. Belter
arrived at this time.) 05-07 Finding the Property at 362 Michigan St. to be Blighted and Authorize Acquisition Mr. Kinney stated the property in question is known as the Boat Works property
at 362 Michigan Street. This action is similar to what was taken when the RDA acquired properties on Dawes St. and Campus Place prior to their being included within the boundaries of
the redevelopment area. The owner of the Boat Works property, Mr. Oskar, would like to close on the property prior to July 1st. Mr. Ruppenthal inquired if there are any tenants at this
time? Mr. Kinney replied no. Mr. Kinney did note, however, there may be special circumstances, such as Mr. Oskar being able to use a portion of the property for a limited time and a
special compensation of $225,000 when the property would be sold by the City, that the City and Mr. Oskar are working out the details on. Staff will be working on development guidelines
for this property due to its uniqueness. Mr. Kinney also noted the City has done some environmental testing on the property and there is nothing of significance. Motion by Bermingham
to move approval of Res. 05-07 finding the property at 362 Michigan Street to be blighted and authorize acquisition. Seconded by Belter. Motion carried 6-0. 05-08 Accept Land /362 Michigan
Street Motion by Castle, seconded by Belter to move approval of Res. 05-08 to accept the land at 362 Michigan Street.
RDA Minutes June 6, 2005 Page 2 Prior to the vote, Mr. Hintz inquired if the City was sure the property would sell for at least $225,000 to cover the compensation Mr. Oskar is requesting.
He understands there are no guarantees, but felt the City/RDA needs to cover themselves for this cost. Should an insurance policy be taken out or perhaps language included in the agreement
for compensation of an amount up to the $225,000. Mr. Hintz would hate to see the City/RDA have to use TIF or bond dollars to make up the difference. Mr. Kinney noted that Mr. Oskar
has obtained Atty. Chuck Hertel as his legal counsel and the City is working on the terms of the agreement. He noted earlier this year the City had a conversation with a perspective
developer who is interested in this site who was willing to pay more than what Mr. Oskar is requesting for compensation. Also staff has received several calls of interest on this property.
Staff does not believe Mr. Oskar’s terms are unreasonable. The owner did not want to sell the property on the market, but instead approached the City with a very generous offer. Mr.
Hintz inquired do we want the liability this could expose us to? Mr. Bermingham inquired what would be insured? Mr. Hintz replied the unlikely risk that we would not receive $225,000
when the property is sold. Mr. Belter felt it would be similar to a letter of credit. Mr. Kinney stated he has had discussions with the DNR on several issues relative to this property,
and there is no limitation on the number of dock slips that could be built because the area is inside the bulkhead line. One scenario being looked at is combining the Boat Works property
with a piece of the Jeld-Wen property, which the City would not purchase, and work with a developer on a development plan. This is a very viable property and Mr. Kinney felt the RDA/City
could sell the property and readily cover the $225,000 payment obligation. Referring to the draft agreement, Mr. Kinney noted the $225,000 is not payable unless the property is sold
to a third party or the City develops the property. The City would have the option of accepting a bid on the property that will meet or exceed any compensation required in the proposed
agreement. Mr. Hintz reiterated that even though the risk is low, we do not want to put ourselves in that position. Ms. Kepplinger stated she could speak with Atty. Hertel to see if
language could be inserted that if a catastrophic situation occurred that the price could be reduced accordingly. Mr. Ruppenthal felt that if the offer is conditioned too much, Mr. Oskar
could withdraw his very generous offer. Mr. Belter called for the question. Motion carried 6-0. Motion by Pung that following the adjournment of this meeting, the Redevelopment Authority
convene into closed session in Room 204 at City Hall to discuss the status present and perspective for deliberating and negotiating land acquisitions and/or sales in the Marion Road/Pearl
Ave. Redevelopment Area, pursuant to Section 19.85(1)(e) of the Wisconsin Statutes. Seconded by Bermingham. Carried by voice vote. A motion was made, seconded and unanimously approved
to adjourn. Meeting adjourned at approximately 8:20 am. Respectfully submitted, Jackson R. Kinney Executive Director/Director of Community Development