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HomeMy WebLinkAbout10-199JUNE 22, 2010 10 -199 RESOLUTION (CARRIED 7 -0 LOST LAID OVER WITHDRAWN ) PURPOSE: RESOLUTION DESIGNATING SPOT BLIGHT OF PROJECT SITE LOCATED AT LOTS 3 AND 5 OF THE UNIVERSAL BUSINESS PARK (DERMATOLOGY ASSOCIATES OF WISCONSIN, S. C PROJECT) WHEREAS, the Redevelopment Authority of the City of Oshkosh, Wisconsin (the "Authority ") is a public body and a body corporate and politic duly organized by the City of Oshkosh, Wisconsin (the "City ") and is authorized by Section 66.1333 of the Wisconsin Statutes, as amended (hereinafter sometimes referred to as the "Act ") to prepare redevelopment plans and urban renewal plans and undertake and carry out redevelopment and urban renewal projects within the corporate limits of the City, including but not limited to: (a) to acquire property necessary or incidental to an urban renewal program and to lease, sell or otherwise transfer such property to a public body or private party for use in accordance with a redevelopment plan and to assist private acquisition, improvement and development of blighted property for the purpose of eliminating its status as blighted property; (b) to enter into contracts determined to be necessary to effectuate the purposes of the Act; and (c) to issue revenue bonds to finance its activities; and WHEREAS, the City and the Authority have been provided with information regarding existing conditions located at Lots 3 and 5 of the Universal Business Park in the City of Oshkosh, Wisconsin (the "Property ") owned by DAW Buildings LLC, a Wisconsin limited liability company, attached hereto as Exhibit A (the "Blight Report "); and WHEREAS, the Property has been preliminarily identified as blighted property in need of rehabilitation and blight elimination in accordance with the Act; and WHEREAS, a notice of public hearing in the form attached as Exhibit B was published and the Authority held a public hearing in accordance with Section 66.1333(5)(c)(2) of the Wisconsin Statutes on June 21, 2010; and WHEREAS, following the public hearing, the Authority found that (a) conditions of blight exist at the Property and (b) development of the Property will alleviate blight, in accordance with Section 66.1333(6) of the Wisconsin Statutes and submitted its findings to the City Council; and WHEREAS, pursuant to Section 66.0301 of the Wisconsin Statutes, a "municipality" as defined in Section 66.0301(1)(a), including any city or redevelopment authority or community development authority created under Sections 66.1333 or 66.1335, may contract with other municipalities for the joint exercise of any power or duty required or authorized by law; WHEREAS, in consideration of the benefits that will result from the issuance of the Bonds and the multi - jurisdictional Project, the Authority, the City, the City of Manitowoc, Wisconsin and the Community Development Authority of the City of Manitowoc, Wisconsin desire to enter into an Intergovernmental Agreement (the "Intergovernmental Agreement ") pursuant to Section 66.0301(2) of the Wisconsin Statutes to evidence their cooperation with respect to the matters set forth therein. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Oshkosh, Winnebago County, Wisconsin that: 1. Findings and Determinations It has been found and determined and is hereby declared that: (a) conditions of blight exist at the Property; and (b) development of the Property would act as an inducement for alleviation of blight and further development of the Property, thereby making more likely the accomplishment of the public purpose objectives set forth in the Act; (c) the City has reviewed the Blight Report and finds that blight existed and continues to exist on the Property; and (d) a comprehensive plan of redevelopment is not necessary with respect to the private redevelopment of the Property or the relation of the redevelopment of the Property to other property redevelopment by the Authority. 2. Spot Blight Designation The City Council hereby finds that the Property is a blighted property in need of rehabilitation and blight elimination in accordance with the Act. 3. Waiver of Sole Property Owner The sole owner of the Property has executed a waiver in the form attached as Exhibit C , waiving the twenty (20) day notice of hearing requirements set forth in Section 66.1333 of the Wisconsin Statutes. 4. Intergovernmental Agreement The form, terms and provisions of the Intergovernmental Agreement are hereby approved. The Mayor and the City Clerk are hereby authorized to execute and deliver the Intergovernmental Agreement for, in the name and on behalf of the City. 5. General Authorizations The Mayor and the City Clerk and the appropriate deputies and officials of the City, in accordance with their assigned responsibilities are hereby each authorized to execute, deliver, publish, file and record such other documents, instruments, notices and records and to take such other actions as shall be necessary or desirable to accomplish the purposes of this Resolution. Any actions taken by the Mayor and the City Clerk consistent with this Resolution are hereby ratified and confirmed. 6. TEFRA Hearing; Approval of Highest Elected Official A notice of public hearing relating to the proposed issuance of revenue bonds on behalf of Dermatology Associates of Wisconsin, S.C. (the " TEFRA Hearing ") has been properly noticed and the TEFRA Hearing was held by the Authority on June 21, 1010. No persons objected to the project or the issuance of the bonds or otherwise responded to the notice of the TEFRA Hearing. The Mayor is authorized to execute an Approval of Highest Elected Official for the purposes of Section 147(f) of the Internal Revenue Code of 1986, as amended, with respect to the issuance of the bonds. 6. Effective Date; Conformity This Resolution shall be effective immediately upon its passage and approval. To the extent that any prior resolutions of the City are inconsistent with the provisions hereof, this Resolution shall control and such prior resolutions shall be deemed amended to such extent as may be necessary to bring them in conformity with this Resolution. EXHIBIT A BLIGHT REPORT OF PROPERTY LOCATED AT LOTS 3 AND 5 OF THE UNIVERSAL BUSINESS PARK IN THE CITY OF OSHKOSH (the "Property ") (Dermatology Associates of Wisconsin, S.C. Project) Statutory Definitions of "Blight" Section 66.1333(2m)(bm) of the Wisconsin Statutes provides a definition of "blight" and cites certain examples of conditions of blight. Both the broad statutory definition and the blight finding which have been made by municipalities throughout the State are much broader than the classic dictionary definition of blight. Essentially the Statute provides three (3) separate routes to identify blight: 1. Property which by reason of dilapidation, deterioration, age or obsolescence, inadequate provisions of ventilation, light, air or sanitation, high density of population and overcrowding, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency or crime, and is detrimental to the public health, safety, morals or welfare; or 2. Property which by reason of faulty lot layout in relation to size, adequacy, accessibility of usefulness, unsanitary or unsafe conditions, deterioration of site or other improvements, diversity of ownership, tax or special assessment delinquency exceeding the fair market value of the land, defective or unusual conditions of title, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, substantially impairs or arrests the sound growth of a village, retards the provisions of housing accommodations or constitutes an economic or social liability and is a menace to the public health, safety, morals or welfare in its present condition and use; or 3. Property which is predominantly open and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements or otherwise, substantially impairs or arrests the sound growth of the community. Narrative Description of Blight Conditions at the Property Dermatology Associates of Wisconsin, S.C. represents that the following conditions of blight currently exist and will be corrected with completion of the project to be financed with the proceeds of conduit tax - exempt Bonds, which project consists of the (i) remodeling and refurbishment of an existing approximately 5,000 square foot clinic facility located at 1515 Randolph Court in the City of Manitowoc, Wisconsin, (ii) construction of an approximately 50,000 square foot addition to an existing approximately 5,000 square foot facility located at 801 York Street in the City of Manitowoc, Wisconsin, (iii) acquisition of approximately 2.5 acres of land located at Lots 3 and 5 of the Universal Business Park in the City of Oshkosh, Wisconsin and construction of an approximately 8,000 square foot clinic and surgery facility and (iv) payment of certain costs related to the issuance of the Bonds (the "Project "). The subject property for spot blight consideration is located at Lots 3 and 5 of the Universal Business Park. CONDITIONS OF BLIGHT The Project Site suffers from significant challenges that impair efficient economic development of the site and which will require rehabilitation and or remediation, including: ➢ The lots available for development had remained undeveloped since the Business Park was created in 1989 ➢ Lots ultimately developed by the Borrower were small and irregularly shaped which necessitated the acquisition of more than one lot to accommodate reasonable development on the site ➢ The height restrictions existing on development also served to necessitate the purchase of two lots to allow for sufficient development ➢ The storm water management plan for the site was insufficient and required redesign of storm water management plan EXHIBIT B NOTICE OF PUBLIC HEARING PROPOSED DESIGNATION OF SPOT BLIGHT BY THE REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH The Redevelopment Authority of the City of Oshkosh, Wisconsin (the "Redevelopment Authority ") has proposed to designate the property located at Lots 3 and 5 of the Universal Business Park in the City of Oshkosh, Wisconsin (the "Property ") as blighted Property in need of rehabilitation and blight elimination in accordance with Section 66.1333 of the Wisconsin Statutes. The Redevelopment Authority will hold a public hearing at 4:00 p.m. on June 21, 2010, at City Hall located at 215 Church Avenue, Oshkosh, Wisconsin. The purpose of this public hearing is to allow all interested parties a full opportunity to express their views with respect to the proposed designation of blight with respect to the Property in order to assist the Redevelopment Authority in making its determination. Copies of the Blight Report are available from the Executive Director at 215 Church Avenue, Oshkosh, Wisconsin, weekdays from 8:00 a.m. to 4:30 p.m. or by mail. Publish above as Class 2 Notice on: June 4 and June 11, 2010 Executive Director Redevelopment Authority of the City of Oshkosh EXHIBIT C WAIVER OF NOTICE OF PROPOSED DESIGNATION OF SPOT BLIGHT BY THE REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH The Redevelopment Authority of the City of Oshkosh, Wisconsin (the "Redevelopment Authority ") has proposed to designate the property located at Lots 3 and 5 of the Universal Business Park in the City of Oshkosh, Wisconsin (the "Property ") as blighted property in need of rehabilitation and blight elimination in accordance with Section 66.1333 of the Wisconsin Statutes (the "Act "). The Redevelopment Authority will hold a public hearing at 4:00 p.m. on June 21, 2010, at City Hall located at 215 Church Avenue, Oshkosh, Wisconsin. The purpose of this public hearing is to allow all interested parties a full opportunity to express their views with respect to the proposed designation of spot blight of the Property in order to assist the Redevelopment Authority in making its determination. Copies of the Blight Report with respect to the Property are available from the Executive Director at 215 Church Avenue, Oshkosh, Wisconsin, weekdays from 8:00 a.m. to 4:30 p.m. or by mail. The undersigned, as the owner of the Property, hereby waives the twenty (20) day notice of hearing requirements set forth in Section 66.1333(5)(c)(2) of the Wisconsin Statutes. The owner further acknowledges that the Property is "Blighted Property" within the meaning of the Act, for the reasons set forth in the Blight Report. Executed this day of , 2010. DAW BUILDINGS LLC By: Title: ®r .IHKOlH ON THE WATER TO: Honorable Mayor and Members of the Common Council FROM: Allen Davis #441— Director of Community Development DATE: April 18, 2010 RE: Resolution Approving $4,705,000 Redevelopment Authority of the City of Oshkosh, Wisconsin Redevelopment Revenue Bonds, Series 2010 (Dermatology Associates of Wisconsin S.C. Project) BACKGROUND /ANALYSIS The City Council is being asked to consider a Resolution which ratifies and confirms the findings of the Redevelopment Authority with respect to a blight finding on Lots 3 and 5 of the Universal Business Park. This finding was a necessary prerequisite to the Authority issuing conduit bonds to assist DAW Buildings, LLC and Dermatology Associates of Wisconsin, S.C. for a multi jurisdictional project to be owned by DAW Buildings LLC, and /or Dermatology Associates of Wisconsin, S.C.,, consisting of (i) remodeling and refurbishment of an existing approximately 5,000 square foot clinic facility located at 1515 Randolph Court in the City of Manitowoc, Wisconsin, (ii) construction of an approximately 50,000 square foot addition to an existing approximately 5,000 square foot facility located at 801 York Street in the City of Manitowoc, Wisconsin, (iii) acquisition of approximately 2.5 acres of land located at Lots 3 and 5 of the Universal Business Park in the City of Oshkosh, Wisconsin and construction of an approximately 8,000 square foot clinic and surgery facility and (iv) payment of certain costs related to the issuance of the Bonds (the "Project "), all of which would contribute to the well -being of the City. The Resolution also makes a finding that the necessary public hearing, known as a TEFRA hearing, was held by the Authority as a requirement of Federal tax law. The law requires that the formal finding that the hearing was held must be signed by the "highest elected official" of the municipality. Since the Authority Board members are appointed, rather than elected, the Council is being asked to authorize execution and delivery of the finding. The Authority held the public hearing at its June 21st meeting. Because the project is a multi jurisdictional project and the Borrower is financing projects in both Oshkosh and Manitowoc, the statutes provide a mechanism to allow the Borrower to use a single bond issue to finance projects located in different municipalities. Section 66.0301 of the Wisconsin Statutes, a "municipality" as defined in Section 66.0301(1)(a), including any city or redevelopment authority or community development authority created under Sections 66.1333 or 66.1335, may contract with other municipalities for the joint exercise of any power or duty required or authorized by law. The Resolution also approves the execution of an Intergovernmental Agreement that confirms this joint exercise of power pursuant to Section 66.0301(2) of the Wisconsin Statutes. The City's bond counsel, Chapman and Cutler has requested that we document the joint exercise in this way. The Authority and the City of Manitowoc and the Community Development Authority of the City of Manitowoc have each approved Resolutions providing that they are agreeable to the Redevelopment Authority of the City of Oshkosh being the issuer of the Bonds and approving the execution of this Intergovernmental Agreement. The Bonds shall be special, limited obligations of the Authority. The Bonds shall not be the debt or obligation of the Authority, the City of Oshkosh, the County of Winnebago, the State of Wisconsin or any political subdivision thereof, do not constitute or give rise to charges against the general credit or taxing powers, if any, of any of them, are not payable in any manner from revenues raised by taxation, do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction of the Authority, the City of Oshkosh, the County of Winnebago, the State of Wisconsin or any political subdivision or public body thereof. Attorney Lynda Templen, Bond Counsel, will attend the meeting to answer any questions. FISCAL IMPACT None RECOMMENDATION At its June 21st meeting, the Redevelopment Authority approved of the final blight designation for Lots 3 & 5 in the Universal Business Park as well as issuing $4,705,000 in redevelopment revenue bonds. Approved, �C�'t Mph ger - -/.