HomeMy WebLinkAbout06. 13-52FEBRUARY 12, 2013 13 -52 RESOLUTION
(CARRIED 6 -0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE WAIVER OF PURCHASING REQUIREMENTS &
APPROVE REIMBURSEMENT FOR PARKING GARAGE REPAIRS
IN THE AMOUNT OF $149,765.00
INITIATED BY: CITY ADMINISTRATION
WHEREAS, the City of Oshkosh is responsible for the maintenance of the parking
garage attached to the hotel formerly known as the City Center Hotel; and
WHEREAS, Oshkosh Investors, LLC purchased the Hotel and is in the process of
renovating the hotel facility; and
WHEREAS, during the renovation of the hotel facility, it was necessary and
expedient to carry some of the work out into the common areas including the parking
garage; and
WHEREAS, it was more efficient and cost effective to include this work within the
bids solicited by Oshkosh Investors, LLC; and
WHEREAS, Oshkosh Investors, LLC and the City previously entered into an
agreement providing for a per room surcharge to be collected to fund maintenance of the
parking garage; and
WHEREAS, additional funding is available for this purpose in TIF districts 15, 17
and 25.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the waiver of the purchasing requirements is hereby approved and that the
proper City officials are hereby authorized to reimburse Oshkosh Investors, LLC for
parking garage maintenance and repairs as shown on the attached spreadsheet in the
amount of one hundred forty -nine thousand seven hundred sixty -five dollars
($149,765.00).
BE IT FURTHER RESOLVED that money for this purpose is hereby appropriated
from the following:
Acct. No. 506 - 1040 - 6426 -00000 Parking Ramp Fund — Maintenance of Structures
502 - 1040 - 6426 -00000 TIF #25 Fund
530 - 1040 - 7216 -07280 TIF #17 Fund
502 - 1040 - 7216 -00000 TIF #25 Fund
502 - 1040 - 7218 -00000 TIF #25 Fund
524 - 1040 - 7218 -00000 TIF #15 Fund
530 - 1040 - 7218 -00000 TIF #17 Fund
Maintenance of Structures
Riverwalk
Riverwalk
Road Improvements
Road Improvements
Road Improvements
CITY HALL
215 Church Avenue
P.O.Box 1130
Oshkosh,Wisconsin
54903-1130 City of Oshkosh
MEMORANDUM
OIHKO!H
Date: February 6, 2013
To: Mayor& City Council
From: Mark A. Robloff, City Manager
Subject: WAIVER OF PURCHASING REQUIREMENTS FOR PARKING GARAGE REPAIRS
BACKGROUND
As the Council is aware, the City Center parking garage is owned by Oshkosh Investors LLC, the owners of the
soon-to-be-refurbished Oshkosh Premier Waterfront Hotel, formerly known as City Center Hotel. Council has
previously approved an agreement in which the city maintains the parking garage on behalf of the hotel owners.
This relationship dates back to when the City Center office complex and the hotel were owned by one entity, but
the city provided maintenance services due to the use of a federal grant to build the parking structure and maintain
its availability for the general public. Although the city has agreed to maintain the structure, Council approved an
agreement in which the hotel would begin collecting a per-room-night surcharge to fund improvements of the
parking structure. Additionally, Tax Incremental Financing District #25 also provided for improvements to the
parking structure. Furthermore, there were also funds identified in other available TIF Districts in this vicinity that
could also be used for parking lot improvements. The intent of these funding sources is to provide city funding for
improvements that did not take place in previous years. Between these TIF funds and the per-room-night
surcharge, the idea is to complete garage repairs that had been identified in the Walker Study, which was completed
several years ago.
ANALYSIS
Over the course of the hotel reconstruction, the lines have become blurred between repairs that are related to the
hotel and those that are related to the parking structure. I have had numerous discussions with the hotel owners,
and they have asked for some latitude in being able to make repairs to the hotel that also carry out into the public
common areas. In keeping with our agreement, the city would have eventually done these repairs ourselves,
however, the hotel secured bids to make improvements to various areas including the landscaped areas leading from
the garage to the hotel, the parking ramp, elevator, and stairwell. Additionally, there were other repairs done by the
hotel that were to the benefit of some of the utility improvements in the immediate area. Due to scheduling needs
to keep the hotel on track for its May, 2013 opening, we agreed that there were several items that could be done
more efficiently by the hotel in order to keep them on their schedule, and to be more cost effective in getting this
work done.
The attached sheet identifies parking ramp repairs and site improvement costs that have been incurred by Oshkosh
investors LLC. The costs total $230,799, of which the hotel is responsible for $81,034. The remainder of the
approximate $150,000 in costs is intended to be paid for with a variety of funding sources, depending upon the
repairs in question. Specifically, the parking ramp repairs are intended to be funded through the surcharge to be
collected by the hotel and paid to the city. The elevator and river walk improvements are intended to be paid for by
the Tax Incremental Districts impacting the hotel and City Center area. The utility site improvements were done
for the utilities, but are intended to be paid for with TIF funds. All of the repairs have been identified in various
TIF plans, or in maintenance agreements for the parking garage.
b«?
FISCAL IMPACT
Of the $230,799 in costs identified by Oshkosh Investors LLC, $81,034 will be assumed by the hotel, with the
remaining $149,765 assumed by the city. Of this amount, $24,319 will be paid for out of the Convention Center
parking ramp fund that is being established between the city and Oshkosh Investors LLC. A total of$3,896 will be
assumed by the River Walk Project, with the remaining$121,550 assumed by the Tax Incremental Districts(TID #s
15, 17, and 25) associated with the hotel and the City Center Project. All of these funds will be borrowed by the
city in 2013, with each of the respective funds being charged back for repaying the debt on these improvements.
Respectfully submitted,
Mark A. Rohloff
City Manager
MAR/jdc
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