HomeMy WebLinkAbout41. 13-48
JANUARY 22, 2013 13-48 RESOLUTION
(CARRIED___7-0_____LOST________LAID OVER________WITHDRAWN________)
PURPOSE: APPROVE AGREEMENT WITH CHAMCO, INC. FOR THE SALE OF
INDUSTRIAL PARK LAND
INITIATED BY: CITY ADMINISTRATION
BE IT RESOLVED by the Common Council of the City of Oshkosh that the attached
Agreement for sale of lands for industrial development and development of an Aviation
Business Park between the City of Oshkosh and Chamco, Inc. is hereby approved. Any
changes in the execution copy being deemed approved by their respective signatures and
the proper City officials are authorized and directed to enter into same.
City of Oshkosh
Community Development Department O1HKO.IH
215 Church Avenue, Oshkosh, WI 54901 ON THE WATER
TO: Honorable Mayor and Members of the Common Council
FROM: Allen Davis, Community Development Director
DATE: January 16, 2013
SUBJECT: CHAMCO Inc. Agreement for Industrial Park Land Sales
BACKGROUND
CHAMCO provides the City with marketing, sales and administration services for the
City's Industrial Parks. This agreement is a 1 -year renewal of that arrangement for land
sales in the City's Industrial Parks with a 30 -day termination clause. In addition,
CHAMCO administers the restrictive covenants in all the industrial parks.
ANALYSIS
CHAMCO has provided marketing, sales, and administrative services for the City's
industrial parks for many years. The City's role has been to obtain and develop the
land, and CHAMCO would then market and sell the land. CHAMCO has been
compensated with a commission on the sale of the land of 16 %.
CHAMCO works closely with prospects and City -staff regarding site planning,
permitting, financing and closings. CHAMCO also administers the restrictive covenants
in all the existing Industrial Parks regarding appearance, building additions and possible
accessory uses. This agreement also anticipates the new Airport Business Park
planned at Wittman Airport. CHAMCO has provided this service for many years and
the proposed agreement does not change the terms of the land sales.
FISCAL.. IMPACT
CHAMCO commissions on lot sales are not a budget item.
RECOMMENDATION
The City Council approves the Agreement as presented.
Approved,
City Manager
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 industrial development; and
WHEREAS, the City periodically seeks to acquire additional lands for future industrial
development; and
WHEREAS, CHAMCO, Inc., is a nonprofit Wisconsin corporation interested in the
industrial development of the City of Oshkosh and having the means and ability to work toward
the acquisition, sale and development of land industrially.
NOW, THEREFORE, the City of Oshkosh, hereinafter referred to as the "CITY ", and
CHAMCO, Inc., hereinafter referred to as "CHAMCO ", in order to work towards the industrial
development of the following described property, viz:
A. AVIATION INDUSTRIAL PARK
B. NORTH INDUSTRIAL PARK
C. NORTHWEST INDUSTRIAL PARK
D. SOUTHWEST INDUSTRIAL PARK
E. AVIATION BUSINESS PARK (to be created)
agree as follows:
1. That by these presents, for and in consideration of Ten Dollars ($10.00) in hand paid,
receipt of which is hereby acknowledged, that CHAMCO does hold until the thirty -first (31st)
day of December, 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. AVIATION INDUSTRIAL PARK
B. NORTH INDUSTRIAL PARK
C. NORTHWEST INDUSTRIAL PARK
D. SOUTHWEST INDUSTRIAL PARK
E. AVIATION BUSINESS PARK (to be created)
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 CHAMCO or such person or persons
as CHAMCO 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 CHAMCO 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 industrial parks, graded, graveled and paved streets, street
lights, sanitary sewer, water mains and storm sewers, as needed.
2. CHAMCO, a non- profit organization, agrees:
(a) To attempt to work toward the industrial 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 "Industrial 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. CHAMCO shall monitor the enforcement of these Covenants and if a
breach occurs which requires repurchase, then in that event, CHAMCO shall assign its right to
repurchase to the City.
3. CHAMCO shall assist the City in acquisition of suitably identifiable lands for future
industrial development with the City reimbursing CHAMCO for its reasonable, out -of- pocket
expenses.
4. This Agreement may be assigned to a successor organization with written consent of
the City, which shall be given by the City Manager.
5. THIS AGREEMENT shall be terminable by either party by giving to the other party thirty
(30) days written notice of its desire to terminate. Within ten (10) days of receipt of written
notice to terminate from the City, CHAMCO shall provide to City a list of all prospective
industrial park land buyers with whom CHAMCO is working as of the date of termination
( "Prospective Buyers "). CHAMCO shall be entitled to commissions pursuant to the terms of
this Agreement on any consummated industrial park land sale to a Prospective Buyer within
one (1) year of termination of this Agreement; provided, however, that if notice to terminate
from the City is due to the creation of a new independent economic development organization
which would in effect succeed Chamco, that any commissions earned by CHAMCO after
termination of this Agreement shall be paid to the new organization.
IN WITNESS WHEREOF, the City of Oshkosh, Wisconsin, and CHAMCO, Inc. have
respectively caused this Agreement to be duly executed on this day of January, 2013.
CITY OF OSHKOSH
Mark Rohloff, City Manager
CHAMCO, INC.
in
And: And:
Pamela R. Ubrig, City Clerk
k)
Elizabeth Hartman, CEO
Steven R. Schmudlach, Chairperson
STATE OF WISCONSIN)
) ss.
WINNEBAGO COUNTY)
Personally came before me this day of , 2013, the above
named Elizabeth Hartman, CEO, and Steven R. Schmudlach, Chairperson, of CHAMCO, Inc.,
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:
STATE OF WISCONSIN)
) ss.
WINNEBAGO COUNTY)
Personally came before me this day of , 2013, the
above named Mark 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.
Approved as to form:
Lynn Lorenson, City Attorney
3
Notary Public, Winnebago County, WI
My Commission Expires:
"ATTACHMENT A"
CITY OF OSHKOSH
INDUSTRIAL PARK SALES POLICIES AND GUIDELINES
Industrial Parks within the City of Oshkosh have been developed as a result of a successful
public- private partnership working for the community 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 industrial development to occur.
The sales policies and guidelines described herein will be followed when land sales are
considered in each of the City's Industrial Parks. These policies and guidelines in combination
with the Protective Covenants, are intended to promote the overall quality of development, to
attract quality, labor intensive companies, and to ensure that the industrial parks remain
successful public investments.
1 } CHAMCO, Inc. is designated as the exclusive agent regarding the sale of property in
each of the City's Industrial Parks.
2) All contacts and communications with prospects will be handled by CHAMCO on a
confidential basis.
3) To be considered for approval, a project must produce certain public benefits including
quality job creation and addition to the tax base.
4) Land sales should be undertaken in such a manner so as to promote and encourage
compact and orderly development of each Park. The identification of sites should be
done so as to avoid the creation of remnant parcels and areas of irregular shape and
size. CHAMCO, Inc. shall consult with City staff in the delineation of sites.
5) Land sales may also be accomplished by an option for a maximum term of three (3) years
with the annual option payment equal to the amount of real estate property tax that would
accrue on the industrial park acreage if the optioned acreage is on the tax role. The
option money, less any reasonable costs for incidental expenses associated with creating
the option, would accrue directly to the City and would not be applied to the sales prices.
S) Offers to purchase shall contain a provision that the purchaser, if a not - for - profit or
otherwise tax exempt entity, shall make an annual payment to the City in lieu of property
taxes equal to the mill rate for City purposes multiplied by the assessed value of land and
improvements as estimated by the City Assessor.
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The Oshkosh fndusirio[ Development Corporolion
Elizabeth A. Hartman
CEO & General Counsel
Direct: 920- 232 -9427
ehartmanCgchanlco.or s
January 17, 2013
Mayor Burk Tower
Members of the Oshkosh Common Council
215 Church Avenue
Oshkosh, WI 54901
Dear Mayor Tower and Members of the Oshkosh Common Council:
This letter sets forth the request of Chamco, Inc. to extend the contract
between the City of Oshkosh ( "City ") and Chamco for the services Chamco
provides to the City in connection with the four (soon to be five) Oshkosh
industrial parks. We ask that the Council grant an extension of the
contract through December 31, 2013, with a thirty (30) day termination
clause and a "protected buyer" clause.
Chamco recognizes the current situation with respect to future economic
development structure in Oshkosh creates some uncertainty as to how the
industrial park services will be provided in the future. However, it is
critical that we continue to provide these services until if and when a new
economic development organization is created. Because transactions often
take months (and sometimes years) to complete it is important the contract
provide some certainty that Chamco can complete transactions and receive
commissions earned. The one year term and protected buyer clause
provide some of that certainty. In the event a new independent
organization is created which would in effect succeed Chamco, we would
expect to pay any commissions earned to the new organization (as set forth
in the contract).
We believe an extension until December 31, 2013 with a thirty day
termination clause will ensure services continue to be provided, but yet
allows for flexibility in the event circumstances change and the contact
needs to be terminated or assigned.
120 Jackson Street • Oshkosh, WI 54901 • 920.232.9786
Accompanying this letter you will find a report on the industrial parks which
sets forth the history of the parks and the role Chamco plays, the services we
provide and Chamco's recent work in connection with the parks as well as a
chart with an overview of the parks and a chart summarizing land sale
transactions from 2000 -2012. You will also find a printout of a power point
presentation which provides a more general overview of Chamco and our
projects and initiatives as well as a copy of our 50th Anniversary booklet
which contains historical information about Chamco (and Oshkosh) and
includes features on many of the companies we have helped throughout our
long history.
Chamco has worked with the City on the industrial parks (as well as on many
projects and initiatives) for over 50 years. It has been a successful
partnership. The Chamco Board has formally committed - and we look
forward to - working with the City to collectively build upon past successful
efforts and determine the best way to deliver economic development services
going forward to create an even better future for Oshkosh!
Thank you for your consideration of this request.
Very truly yours,
Elizabeth A. Hartman
2
CHAMCOINC.
The Oshkosh fndusfriol development Corporation
Chamco Report on Industrial Parks
January 17, 2013
History of the Industrial Parks
A special subcommittee of the City of Oshkosh ( "City ") undertook a comprehensive
study of industrial development in the early 1970s. This subcommittee concluded:
(1) the City should have a bank of suitable land reserved for industrial development;
(2) the developed land should include the installation of sewer, water and roadways
and (3) the City should leave the promotion of industrial development, including the
sale of land in the parks, to a group singly organized for this purpose. Oshkosh was
on the cutting edge in the 1970s with its development of industrial parks.
Since that time, Chamco and the City have partnered to create industrial parks,
develop and enforce covenants governing the parks, acquire land for park
development, and market and sell land in the parks to industrial businesses. The
industrial parks provide an appropriate home for our industrial businesses which in
turn create thousands of jobs and contribute to the tax base. The industrial parks
have been enormously successful in Oshkosh. Since our partnership, Chamco has
sold over 1200 acres of industrial park land - 203 acres since 2000 (see Attachment
B). The Southwest Industrial Park (SWIP) is nearly 800 acres, 90% full, employs
over 3500 people and has a current assessed value of over $100MM.
It is critical in today's competitive environment that we have ample "development -
ready" industrial park site choices at an attractive price. Our industrial park land
prices have consistently been lower than 80% of the parks from Fond du Lac to
Green Bay.
The Role Chamco Plays in Connection with the Parks
Chamco is a full service economic development organization with a licensed real
estate broker and attorney with real estate and business transaction expertise on
staff. We provide confidential services to our clients, including project analysis and
advice, assistance with site and building selection and access to financial and non-
financial resources to solve problems and get projects completed.
On land sale transactions, we may work with a prospect over the course of several
years on all aspects of their project, not just the land sale. Our commission is
performance based: if we do not sell land, we do not earn commission.
120 Jackson Street - Oshkosh, WI 54901 • 920.232.9786
Many transactions fall through after a significant amount of work. We have a
good relationship with local brokers and share commissions on land sales in the
industrial parks if they bring a buyer to the table. We also work to till vacant
buildings in the parks (as well as elsewhere in the City).
Chamco in its history has also built 9 buildings in the parks, with a current
assessed value of over $23MM. These buildings were part of our "spec" building
program which provides to our tenants low cost lease rates with little or no capital
tied up in their property and the benefit of property appreciation at the end of the
lease term when the tenant purchases the building at or near our cost to
construct. Some of our past and current tenants include: Bemis Company,
4imprint, Leeco Steel, AP Westshore, and Ad, Inc. We also used the spec
building program to assist the University of Wisconsin Oshkosh with the
relocation of facilities management to the former Cub Foods property on Witzel
Ave. to make room for Sage Hall.
Direct_ Services Provided by Chamco in Connection with the Industrial Parks
Industrial Park Development
• Consult with the City on industrial park development
• Help identify suitable sites for purchase, at times have conducted the
negotiations on the City's behalf
• Advocate for further park development (i.e., Aviation Business Park)
• Keep tabs on industrial park land prices in the area and consult with the
City on appropriate prices for land in the parks
Covenant Review and Enforcement
• Periodically review and update the covenants
• Review and act on requests for covenant waivers or variances
• Enforce covenants
• Attend site plan review meetings to ensure developments in the parks are
consistent with covenants
Tenant Relations
• Handle communications to and from park residents about any concerns or
issues in the parks
Land Sales
• Market industrial park land
• Handle the entire land sale transaction
• Site selection and development assistance
• Survey and title work
• Legal work — done in house, no charge to City
Value Added Services to Clients
• Work with the prospect on all aspects of their project not just land sale
including project analysis, access to financial and non - financial resources
2
Special Projects
• Establishment of the Foreign Trade Zone in the SWIP
• Work with the City to address infrastructure, transportation and wetlands
issues
Chamco Industrial Park Work — January 2011 to present
Park Development
• Chamco has worked with the City and Winnebago County for the last
several years through Chamco's Aviation Development Committee to
establish a true Aviation Business Park — land purchase in process.
• Chamco is working with the City, County and the University of Wisconsin
Oshkosh to establish a business accelerator program and support facility
at the Aviation Business Park.
Covenants
Chamco is currently working with the City to update covenants governing
all four parks.
Chamco internally reviewed site and building plans on 12 projects in the
parks.
Chamco took action on 15 requests for covenant waivers or variances.
.and Sales
Chamco worked with 16 prospects on potential industrial park land sales.
Chamco submitted industrial park sites in response to 4 RPFs from the
New North and Wisconsin Economic Development Corporation.
Special Projects
• Chamco is working with the City on establishment of a virtual building
program on three sites in the SWIP.
• Chamco and the City are in exploratory stages of evaluating whether we
can establish a wetlands bank for use in our parks.
• Chamco is working with the City on rail issues in the SWIP,
3
Attachment A: Overview of the Oshkosh Industrial Parks
North
Northwest
Aviation
Southwest
Year
1969
1989
Formerly South
1978
Opened
Industrial Park
(1967); expanded,
combined with
South and renamed
Aviation in 1991
Number
220 acres
150 acres in
290 acres
792 acres in
of Total
original park;
original park; 178
Acres
additional 80
in expansion
acquired in
area; additional
2009 for
80 acres acquired
development
in 2009 for
development
Acres
None
Development
Remnant or
Development
Available
ready: 1.77
landlocked parcels;
ready: 65 acres
for Sale
acres City
former landfill site
Not development
owned; 11.58
ready: 255 acres
privately
owned; Not
development
ready: 80
acres
Features
Railroad; access
Access to
Some parcels with
Railroad; access
to highways 76
highways 45
direct taxiway
to highways 41,
and 41
and 41;
access to the
91 and 44,
regional storm
airport
regional storm
water
water detention;
detention
foreign trade
zone
Price
Full
$17,500
Full
$26,000
Home to
Oshkosh Coil
Shallbetter,
Baldor Generators,
4imprint, Leeco
many,
Spring, WPS,
CREW, FedFx,
Bveo Plastics,
Steel, Bemis
here are a
CROWN
Corrim,
Marvel
Company, Pepsi,
few
Packaging,
Culligan, Ad,
Manufacturing,
Lapham Hickey,
Curwood /Bemis
Inc.
Basler Turbo
Jay
Companies,
Conversions,
Manufacturing,
PACUR
FVTGSpanbauer
Miles Kimball
Center, Lakeside
Company, Lee
Plastics, OFC
Beverage
Graphics
Current
Approx $46MM
Approx $16MM
Approx $34MM
Approx $110MM
Assessed
Value
Attachment B: City of Oshkosh Industrial Park Land Sales 2000 -2012
5
Company
Acres
Year
Park
Purchased
2000
SWIP
Continental Girbau
8.500
2000
Aviation
Scharpf's Embroidery
3.200
2000
SWIP
Lee Beverage
22.000
2000
SWIP
Oshkosh Architectural Door
4.300
2000
NWIP
Solid Waste Mgmt Board
5.500
2000
Aviation
FVTC
1.800
2001
SWIP
FN Sheppard
6.500
2002
Aviation
Evco Plastics
44.000
2002
SWIP
Fastenal
3.000
2002
SWIP
Block Iron Fastener Division
7.250
2003
Aviation
Competition Products
2.000
2004
NWIP
Fox Valley Tree Service
1.300
2004
NWIP
FedEx
7.400
2005
Aviation
Northwest Environfan
2.000
2006
SWIP
Outdoor Outlet
2.600
2006
NWIP
Shallbetter, Inc.IKoeppler
7.300
2006
SWIP
Leeco Steel
20.000
2007
NWIP
Crew
4.250
2007
SWIP
Viking Electric
5.000
2007
SWIP
Fastenal Project/Dowling
7.200
2007
NWIP
Culligan Distribution Facility
1.800
2007
SWIP
Rasmussen Project
5.250
2008
SWIP
4imprint
18.320
2009
SWIP
Jay Mfg
11.000
2010
NWIP
Marcoe Recycling
2.320
2011
No Sales
2012
No Sales
Total Acres Sold
203.790
5
What is arc®?
An independent, private, not - for - profit corporation
with a mission to sustain and expand industry in the
Oshkosh area
Created in 1960 to solve a problem in our community
- and still going strong
n A public /private partnership
Working with Local Businesses - City of Oshkosh- FVTC - New North - Oshkosh Chamber -
UW Oshkosh - Winnebago County • Wisconsin EConomfc Development Corp
111712013 w Together Hie Thrive &? 2
h® is h c®?
30+ member Board of Directors, representing:
• local industry
• government
• education
• banking
• economic development partners
2 person staff
CEO /General Counsel
• Attorney with 15 years real estate and business
transaction expertise
VP of Development Services
• Licensed real estate broker with over 15 years in
commercial and industrial real estate
1i17R013 cv Together Me Thrive bi) a
• Industrial businesses - existing and new -
which have projects: expansions; new
ventures; capital, training or machinery
and equipment needs
Our partners who rely on us for
assistance
• Oshkosh area residents and businesses a
who expect our community to be a
great place to live, work and do
business
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Our Focus
Economic development through industrial expansion
Industrial park development
Retention, expansion, recruitment of industry
Entrepreneurial support
Undertake and support initiatives to enhance
economic development
11172033 Ce Together Me Thrive 10 s
Our Focus: Industrial Park
Development
Owner's agent (City) for the parks
Industrial park development
Covenant review, variances and enforcement
® Tenant relations
® Land sales
Value added services
® Special projects
M W2ma &Y Together Me Thrive b �
Industrial Park Statistics
4 parks: North, Northwest, Aviation, Southwest -
working on 5th
0 2 parks full - North and Aviation
® 1209 acres sold
0 79 acres available for development
0 335 acres for future development
Total assessed value of $206MM
® Home to: Bemis, Miles Kimball, Jay Manufacturing,
Marvel Manufacturing, Lakeside Plastics, Pacur,
Shallbetter, Baldor Generators, Corrim Company
9 Chamco built buildings totaling $23MM in assessed
value
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Chamco "s Industrial Park
Mork 2011-2012
• Worked with 16 prospects interested in industrial park
land
• Updated covenants
• 12 staff review of site and buildings plans
• 15 Chamco committee /board reviews of variance
requests
• Virtual building program
• Aviation Business Park project
• Business Accelerator project
• Wetlands banking initiative
• Rail issues in the SWIP
111712013 cv Together Me Thrive � e
Our Focus: Retention, Expansion
Recruitment of Industry
• Confidential consultation and advice
• Project analysis
• Expertise with site and building selection and real estate
transactions
• Expertise obtaining financial and non - financial resources
0 Leverage relationships and resources
Advocate
v17J2013 C9 Together Me Thrive zw f0
Our Focus; undertake and Support
Initiatives to Enhance ,Development
• Angels on the Water
• Aviation Business Park
• Business Accelerator
• Virtual Building Program
• Spec Building Program
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ANGELS ° E WATER
Building Our Future.
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1MY2013
w Together Me Thrive R-)
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tz
FY13 Priorities
• Client project work
• Work with City and stakeholders on
economic development structure
• Work with the City on industrial park
development and marketing
• Secure funding for business accelerator
project and assist with design and
implementation of accelerator program
1l17R013 of Together Me Thrive R.) 13
FY13 Priorities
Continue Angels on the Water
management
Complete the virtual building project
and begin marketing it
Complete land purchase for Aviation
Business Park
® Obtain approvals for updated industrial
park covenants
MMM cz Together Me Thrive 14
Con tin uing Priorities
• Understand our strengths as a community and
capitalize on them
• Undertake initiatives to enhance development
• Build and enhance relationships and partnerships
• Remain responsive, creative, flexible,
entrepreneurial
• Foster a community environment friendly to
entrepreneurs, young professionals and business
• Remind everyone that Oshkosh is a great =T
place to live, work and do businessl
VM203 ce Together Me Thrive t5
In Our 53 Year History,
Chamco has ...
• Completed more than 500 projects for clients
needing assistance
• Worked with the City to establish and develop the
four Oshkosh area industrial parks (and working
with City and County on #51)
• Sold over 1200 acres of industrial park land
• Incentivized development through creative
programming 9960 -2090
• Increased access to capital through Angel:
on the Water collaboration
• Secured more than $50MM in financial
resources for clients needing assistance
ears
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Thank You!
Elizabeth Hartman
CEO 8t Genera[ Counsel
ehartman @chamco.org
Nancy Jo Dietzen
Vice President of Development Services
njdietzen @chamco.org
Chamcolnc
120 Jackson Street - Oshkosh, WI 54961
920 - 232 -9786
www.rhamco.org
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