HomeMy WebLinkAbout11-18JANUARY 25, 2011 11 -18 RESOLUTION
(CARRIED 7 -0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE AGREEMENT WITH OSHKOSH AREA ECONOMIC
DEVELOPMENT CORP. FOR DEVELOPMENT OF BUSINESS
PARKLAND
INITIATED BY: PUBLIC WORKS DEPARTMENT
BE IT RESOLVED by the Common Council of the City of Oshkosh that the attached
Agreement with Oshkosh Area Economic Development Corp. for development of Business
Park Land, is hereby approved and the proper City officials are hereby authorized to
execute and deliver the agreement in substantially the same form as attached hereto, any
changes in the execution copy being deemed approved by their respective signatures, and
said City officials are authorized and directed to take those steps necessary to implement
the terms and conditions of the Agreement.
AGREEMENT
WHEREAS, the City of Oshkosh owns certain lands within the corporate limits of the City of
Oshkosh and desires to sell such lands for business park development; and
WHEREAS, the Oshkosh Area Economic Development Corporation, is a non - profit Wisconsin
corporation committed to the economic development of the City of Oshkosh and having the means
and ability to work toward the development of land for business park uses;
NOW, THEREFORE, the City of Oshkosh, hereinafter referred to as the "CITY ", and the
Oshkosh Area Economic Development Corporation, hereinafter referred to as " OAEDC," in order to
work towards the commercial development of the following described properties, hereinafter referred
to as the " BUSINESS PARK ", viz:
A. Universal Business Park
agree as follows:
1. The City agrees that by these presents, for and in consideration of Ten Dollars ($10.00)
in hand paid, receipt of which is hereby acknowledged from OAEDC, has agreed and does agree to
hold until the thirty -first (31st) day of January, 2013 at 12:00 PM, time being of the essence of this
agreement, an option to purchase all of the premises owned by the City of Oshkosh known as and
consisting of the following:
A. Universal Business Park
and the City of Oshkosh covenants to convey by Warranty Deed any portion of said property thereof at
any time within the above time prescribed, to OAEDC or such person or persons as OAEDC may
direct for and at the price as shown on "Attachment B ", payable on delivery of a Warranty Deed by the
City, subject, however, to the further requirement that this option shall be of no effect and no rights
shall inure to OAEDC or any other person or persons hereunder or by any purported exercise of this
option, unless within the time written, notice of exercise of this option shall be delivered to the City
Attorney of the City. The purchase price attached hereto includes, for all the premises, graded,
graveled and paved streets, street lights, sanitary sewer, water mains and storm sewers, as needed,
and the extension of gas and electrical service, excluding laterals.
2. OAEDC a non - profit organization, agrees:
(a) To attempt to work toward the commercial development of the land which is the
subject matter of this agreement.
(b) To sell land for uses as permitted in the approved Protective Covenants and in
accordance with the "Business Park Sales Policies and Guidelines" (see
Attachment A ").
(c) That they have adopted Protective Covenants for land sold hereunder and before
any changes to said covenants are adopted, they will be submitted to the
Oshkosh Common Council for review. OAEDC shall monitor the enforcement of
these Covenants and if a breach occurs which requires repurchase, then in that
event, OAEDC shall assign its right to repurchase to the City.
3. This Agreement may be assigned to a successor organization with written consent of the
City, which shall be given by the City Manager.
4. This agreement shall be terminable by either party by giving to the other party six (6)
months written notice of its desire to terminate.
1
IN WITNESS WHEREOF, the City of Oshkosh, Wisconsin, and OAEDC have respectively
caused this Agreement to be duly executed on this day of 12011.
CITY OF OSHKOSH
a
Mark A. Rohloff, City Manager
And:
Pamela R. Ubrig, City Clerk
STATE OF WISCONSIN )
ss.
WINNEBAGO COUNTY )
OSHKOSH AREA ECONOMIC
DEVELOPMENT CORPORATION
Rob P. Kleman, Executive Director
And:
Thomas Belter, President
Personally came before me this day of , 2011, the above named Rob P.
Kleman, Executive Director, and Thomas Belter, President, of OAEDC, to me known to be the
persons who executed the foregoing instrument and acknowledged same as and for said corporation.
STATE OF WISCONSIN )
)ss.
WINNEBAGO COUNTY )
Notary Public, Winnebago County, WI
My Commission Expires:
Personally came before me this day of , 2011 the above named Mark A,
Rohloff, City Manager, and Pamela R. Ubrig, City Clerk, of the City of Oshkosh, to me known to be the
persons who executed the foregoing instrument and acknowledged same as and for said corporation,
by its authority.
Notary Public, Winnebago County, WI
My Commission Expires:
Approved as to form:
Lynn Lorenson, City Attorney, Oshkosh, WI
2
"ATTACHMENT A"
CITY OF OSHKOSH BUSINESS PARK
SALES POLICIES AND GUIDELINES
The development of the Business Park within the City of Oshkosh is a continuance of a successful
public - private partnership working for the communities benefit -- through job creation, economic
growth, and expanded tax base. It represents the commitment by the community to provide a suitable
setting for planned, orderly Business Park development to occur.
The sales policies and guidelines described herein will be followed when land sales are considered in
the City's Business Park. These policies and guidelines in combination with the Protective Covenants,
are intended to promote the overall quality of development, to attract high quality, service related
businesses, and to ensure that the Business Park remains a successful public investment.
1) OAEDC is designated as the exclusive agent regarding the sale of property in the City's
Business Park.
2) All contacts and communications with prospects will be handled on a confidential basis.
3) Sales proposals will be considered for approval if, in the opinion of OAEDC, the project fits the
development objectives of the City and OAEDC.
4) Land sales should be undertaken in such a manner so as to promote and encourage compact
and orderly development of the business park and each individual parcel. The identification of
sites should be done as to avoid the creation of remnant parcels and areas of irregular shape
and size. OAEDC shall consult with City staff in the delineation of sites.
5) Any real estate broker, licensed to conduct business in the State of Wisconsin, who represents
a prospect, shall become eligible for a sales commission not to exceed four percent (4 %) of the
sale price, deducted from the commission paid to OAEDC, subject to the following terms:
A. The Broker and prospect shall register in writing with OAEDC at 120 Jackson Street,
Oshkosh, Wisconsin 54901, prior to any land sale negotiations.
B. No commission will be paid to any broker for sale of land to a prospect who registered
directly with OAEDC prior to contact with a broker.
C. All land sale proposals and broker commission payments shall be approved by
OAEDC.
D. A broker - registered prospect shall remain on the active list for a period of six months,
unless renewal is requested by the broker.
3
"ATTACHMENT B"
UNIVERSAL BUSINESS PARK
PRICING STRUCTURE
LOT
NO.
PRICE PER
SQ. FT.
LOT AREA
LOT
NO.
PRICE PER
SQ. FT.
LOT AREA
1
SOLD
93,596.24 sq.ft
17
SOLD
79,613.31
sq.ft
2
SOLD
54,617.38 sq.ft.
18
SOLD
127,079.51
sq.ft
3
SOLD
48,212.12 sq ft
19
SOLD
57,611.33
sq.ft
4
SOLD
54,532.03 sq ft
A .
20
SOLD
37,108.27
sq.ft
5
SOLD
51,829.53 sq.ft
21
SOLD
54,225.81
sq.ft
6
SOLD
54,670.34 sq.ft
22
SOLD
43,561.12
sq.ft
7
1.25
54,147.24 sq.ft
23
SOLD
39,321.52
sq.ft
8
SOLD
58,864.21 sq.ft
24
SOLD
41,937.01
sq.ft
9
SOLD
70,781.86 sq.ft
25
SOLD
42,313.52
sq.ft
10
1.25
67,070.86 sq.ft
26
SOLD
125,297.10
sq.ft
11
SOLD
51,254.46 sq.ft
27
SOLD
91,481.68
sq.ft
12
SOLD
42,463.25 sq.ft
28
SOLD
101,583.51
sq.ft
13
SOLD
43,067.93 sq.ft
29
SOLD
91,819.60
sq.ft
14
SOLD
53,746.26 sq.ft
30
SOLD
97,220.87
sq.ft
15
SOLD
53,819.25 sq.ft
31
2.50
294,030 sq.ft
16
SOLD
85,344.97 sq.ft
NOTE: In the disposition of property in the Universal Business Park, lot lines and lot configurations may be
adjusted from those shown on the attached site plan map.
The City of Oshkosh reserves the right to reduce the prices herein established for individual parcels for good
and sufficient reasons as determined by said City. OAEDC shall have the right to sell properties which are
the subject matter of this agreement and shall receive sixteen percent (16 %) commission plus any
reasonable costs for incidental expenses including land survey fees, attorney fees, engineering studies and
soil tests, excluding environmental studies. Associated with said sale.
Should the City determine to sell land for less than the scheduled price, then OAEDC's sixteen percent (16 %)
shall be determined by the actual selling price.
When land is repurchased by the City, due to nonimplementation of the project that had been proposed per
its initial sale, OAEDC will be entitled, upon the resale of said land, to a sixteen percent (16 %) commission
figured on the value of any increment that exists between the original sale price and the resale price, plus any
reasonable costs for incidental expenses associated with said resale.
The above schedule shall be in effect until January 31, 2013. However, the above price structure may be
reviewed and adjusted prior to January 31, 2013 by the City, in consultation with OAEDC, and upon approval
of the Oshkosh Common Council.
4
"ATTACHMENT C"
The "City of Oshkosh, Universal Business Park, Covenants and
Restrictions" as on file in the Department of Community Development.
OAEDC Business Park Agreement
revised: 1/05; 1/07;1/09; 1/11
5
0MJ -- ----- "
LL g
m 4 2
co
.... ....... ......... ........ ..........
\\I\— V 3ONVHOSNI
LO
cq
cq
to
c o—
. .
014 c
^
^ ` `
^
'
^
ml
ml
TO: Honorable Mayor and members of the Common Council
FROM: Allen Davis, Community Development Director
DATE: January 20, 2011
SUBJECT: Oshkosh Area Economic Development Corporation ( OAEDC) Agreement
for Business Park Land Sales
BACKGROUND
OAEDC has provided the City with land marketing, sales and administrative services for
the City's Universal Business Park. This agreement is a 2 -year renewal of that
arrangement. This arrangement is a classic example of a public - private economic
development partnership.
ANALYSIS
OAEDC has provided marketing, sales, and administrative services for the City's
business park for many years. OAEDC is compensated for their efforts with a 16%
commission on lot sales.
OAEDC works closely with prospects and City -staff regarding site planning, permitting,
financing and closings. OAEDC also administers the restrictive covenants in the
business park regarding appearance, building additions and possible accessory uses.
OAEDC has provided this service for many years and the proposed agreement does not
change the terms of the land sales. The previous agreements have run for two years and
the proposed agreement runs for 2011 and 2012.
FISCAL IMPACT
OAEDC earns commissions only on lot sales and is not included in the 2011 budget.
RECOMMENDATION
The City Council approves the Agreement as presented.
Approved,
City Manager
OSHK CHAMBER OF CO MMERCE
ADVOCACY COMMUNITY DEVELOPMENT LEADERSHIP
MEMORANDUM
TO:
FROM
DATE:
RE:
City Manager Mark Rohloff and Members of the Oshkosh Common Council
Rob Kiernan, Executive Director, Oshkosh Area Economic Development
Corporation ( OAEDC)
January 19, 2011
Universal Business Park Update
I want to thank you for giving the Oshkosh Area Economic Development Corporation ( OAEDC) the opportunity to
partner with the City of Oshkosh over the past seventeen years in the development of Universal Business Park (UBP).
Universal Business Park has become recognized as one of the highest quality professional office parks in the New North
region. I will briefly summarize our efforts to date, along with the current developments in the park. OAEDC staff met
recently with City staff and reviewed the past sales activity, market activity, and current pricing. We are making the
following recommendations:
LOTS IN BUSINESS PARK
• That the pricing on lots 7 and 10 remain at $1.25 per square foot until January 31, 2013. However, the price
structure may be reviewed and adjusted prior to January 31, 2013 by the City, in consultation with OAEDC, and
upon approval of the Oshkosh Common Council.
EXTERNAL BUSINESS PARK LOTS (HIGHWAY 44/91)
• That the pricing on Lot 31 remain at $2.50 per square foot until January 31, 2013. However, the price structure
may be reviewed and adjusted prior to January 31, 2013 by the City, in consultation with OAEDC, and upon
approval of the Oshkosh Common Council.
We believe that it would be prudent to maintain the current pricing levels given the current state of the economy and
market activity, but we will continue to monitor market activity and recommend price adjustments accordingly.
RECENT ACTIVITY
The OAEDC Business Park Committee and Board are happy to report strong sales activity in the park over the past four
years. While we did not record any land sales in the park over the past year, we did see a significant amount of private
sector construction within the park. Following is a review of some of the recent activity in the park:
OAEDC closed a 3.83 acre (Lots 16 and 17) sale on March 30, 2007 with Thomas James Real Estate for
$166,564. Thomas James Real Estate has had excellent success with its Highway 44 Business Place development
along Highway 44 and purchased these lots inside the Business Park to be positioned for future growth
opportunities.
OAEDC closed a 1.02 acre parcel for $44,403 on April 20, 2007 with Huckleberry, LLC which resulted in the
construction of a new 3,731 square foot office building for Ameriprise Financial. This project added $434,000 to
the City's tax base.
OAEDC closed a 1.56 acre sale on June 8, 2007 with BCG Properties for $169,730 which resulted in the
�u,e �tG2 �cc�ecP,�tecP L� h e� (�9tce
Ito JACKSON STREET • OS HKOSH, WI 5490I • 920 -303 -2266 • FAX: 920-303-2263 • info @oshhoshchamber.com
construction of a new 7,400 square foot Chiemsee Castle day care center at the corner of Highways 44/91. This
project added $838,000 to the City's tax base.
• OAEDC closed a 1 acre sale with AlexMadison, LLC on October 31, 2008 for $57,132 for the future
construction of a new office building.
• Construction was completed on a new 37,600 square foot Corporate Headquarters office for CitizensFirst Credit
Union in August of 2010. This project has added over $5 million to the City's tax base. This project was an
expansion from the original branch office that was built in UBP in 1993.
• Construction was completed on a new 8,717 square foot office building for Dermatology Associates of
Wisconsin in September of 2010. This project has added over $1.5 million to the City's tax base and will create
up to 10 new jobs.
• WisDOT located its Highway 41 construction project offices in Universal Business Park in the office building
located at the corner of Universal and Highway 44.
In summary, over the past four years, our efforts resulted in land sale revenue to the city of $437,829 and added almost $8
million to the City's tax base. To date, OAEDC has sold 42 of the 50 acres available in Universal Business Park with a
total tax base of $19.5 million. Since 2003, we have sold over 28 acres with land sale revenue approaching $1.5 million.
Since 1993, when the park opened, we have realized almost $2.2 million in land sale revenue with 16 Class A office
buildings being constructed. Two new Class A office building were constructed in 2010. Over 250 new jobs have been
created in Oshkosh as a result of the Universal Business Park.
BUSINESS PARK GOALS
The OAEDC Business Park committee has taken a patient and consistent approach to the development of the park, and in
certain instances has turned deals away because they have not met the standards outlined in the Protective Covenants.
The City's stated goal was for OAEDC to sell on average one parcel per year. Over the past seventeen years, we have
sold 28 parcels totaling 42 acres. The 42 acres have produced land sale proceeds to the City of nearly $2.2 million for an
average per acre price of $52,370 or $1.20 per square foot. The Universal Business Park is now home to over 40
businesses located in sixteen Class A office buildings. Over 136,000 square feet of space has been developed that has
added over $19.5 million to the City's tax base.
BUSINESS PARK HISTORY
In 1992, the City approached OAEDC regarding our interest in assisting with the marketing of the land behind the
Horizon Outlet Mall. This land had been part of the Southwest Industrial Park and was selling for $25,000 per acre.
Because of the commercial developments that were springing up in the area, the City determined that the highest and best
use for this land was commercially oriented. So, in partnership with City staff, we formed the OAEDC Business Park
Committee and began researching other community's office park developments. We found that other communities were
having success in this area, with examples being Park Place in Appleton and the Waukesha Area Business Park. In 1992,
Oshkosh had very few office park options, Bridgeview Center being the only dedicated office development in the City,
which was considerably smaller than developments such as Park Place in Appleton. After surveying local businesses, it
was confirmed that there was a need for a large -scale dedicated office park development to maintain a competitive
balance with our neighboring communities.
We then worked with a number of communities that had established a set of Protective Covenants for a Business Park
similar in size to what we were planning. The idea behind the Protective Covenants was to create and maintain a long
term -high quality environment that the tenants in the park could count on in the future. We ultimately worked very
closely with the City of Waukesha and the Protective Covenants that they had established for their office park. The
covenants, for example, require that all buildings be of masonry construction, require additional landscaping
requirements, require higher setbacks than normal commercial or industrial zoning, and only allow specific office and
business services types of uses. The covenants do restrict our tenant possibilities to a very narrow range of potential
tenants. An example would be that the Universal Business Park covenants prohibit senior retirement complexes, or any
type of retail or manufacturing use. This is being done to maintain the integrity of the park and create a high quality
image for the park.
The OAEDC Business Park Committee then began analyzing the office market to determine the pricing structure for the
park. The Business Park Committee is made up of volunteers who have committed many hours during our contract years
with the City to assure that the Universal Business Park is a high quality development. Parcels in the park are currently
priced anywhere from $1.25 per square foot to $2.50 per square foot depending on location. This translates into a per
acre price of $54,450 - $108,900.
MARKETING
I would briefly like to explain our marketing efforts. When we began marketing the park in 1993, the City indicated that
they would like to see OAEDC take a patient and orderly approach to marketing the park in the local Oshkosh area.
Therefore, the majority of our marketing efforts have been geared towards businesses from outside of the Oshkosh area.
It is not the City's or OAEDC's sole intent to move businesses from one location in the City to another. The Universal
Business park location is good for some businesses that are located in Oshkosh and may not be good for others. It is true
that 80 percent of all economic development growth and expansion comes from within the local community. The
Universal Business Park is no exception to this trend. Over time, we have seen a number of businesses locate in the park
from outside of the Oshkosh area. This trend has continued with the construction of office space with "incubator type
space" options ranging from 100 — 1,000 square feet in a number of Universal Business park buildings.
We have also developed a business park brochure that we distribute to potential prospects. Over the past eight years, we
distributed nearly 5,000 of these brochures throughout the state of Wisconsin and Midwest through direct mail. We have
also utilized telemarketing efforts and actual sales calls to promote the park.
We have had on -going discussions with all of the commercial brokers in the Oshkosh area to make them aware of the
development. In order to strike a strategic partnership with the brokerage community, any broker who brings a prospect
forward to OAEDC is eligible for a share of the OAEDC Commission. This co- broker arrangement, which offers the
broker 4% of the land sale, has been well received and has already been utilized on seven occasions.
OAEDC upgraded our advertising signage in the business park in 2009 at a cost of approximately $2,000. We have also
advertised our available sites in a number of trade publications.
SUMMARY
In summary, OAEDC feels very fortunate to be involved with this development. We have received many positive
comments regarding the high quality of this park from prospects and economic development officials from throughout the
state of Wisconsin. We look forward to our continued partnership with the City of Oshkosh along with our other
economic development efforts. If you have any questions or comments, please feel free to give me a call at 303 -2265,
extension 14. Thank you.
Cc: Tom Better, President, OAEDC
Mike Dempsey, OAEDC Business Park Committee Chairman
OAEDC Board of Directors
Allen Davis, City of Oshkosh