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HomeMy WebLinkAboutMemo -------------------------------------RDA memo 6/21/2010 meeting 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: Allen Davis Executive Director/Community Development Director DATE: June 15, 2010 RE: June 21st Special Meeting Agenda Items A special meeting of the RDA is scheduled for Monday, June 21, 2010 at 4 pm. in Room 404 at the Oshkosh City Hall. The following items are scheduled for action: Res. 10-14 Public Hearing and Final Resolution Designating Spot Blight /Lots 3 & 5, Universal Business Park (2351 State Road 44) – Dermatology Associates of Wisconsin Project Res. 10-15 Public Hearing and Final Resolution Regarding Redevelopment Revenue Bond Financing for Dermatology Associates of Wisconsin Project The Redevelopment Authority is being asked to consider two Resolutions. The first Resolution ratifies and confirms the blight finding with respect to a blight finding on 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 second Resolution approves the sale of the Bonds and lays out the parameters for that sale. Also, 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 -------------------------------------RDA memo 6/21/2010 meeting 2 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 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 Oshkosh City Council will consider a parallel Resolution at its June 22nd meeting. 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. The RDA is only assisting the owner in obtaining favorable financing for the redevelopment sites. Res. 10-16 Determination of Necessity; Establish Fair Market Value; Authorize Purchase – 669 Jefferson Street Over the past couple of years, the RDA has purchased several properties in the 600 Block of Jefferson Street, north of 645 Jefferson Street, as they became available for future assemblage of a redevelopment site. The block in question is is within the Near East Neighborhood Redevelopment Area. Of the two remaining residential lots in this area, the owner of 669 Jefferson Street approached staff to inquire if we were interested in purchasing his property. This is a single family rental property that is currently vacant and consists of a single story 960 square foot home with no basement. The property is currently assessed at $52,700. The owner obtained an appraisal, which assessed the property at $58,000. The owner is asking $56,500. The Assessor’s Office reviewed the appraisal and confirms the validity of this value. Community Development Block Grant funds are available for acquisition and demolition related costs. Staff requests the RDA approve purchasing 669 Jefferson Street for $56,500 for the purpose of demolition and lot assembly for future redevelopment.