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HomeMy WebLinkAbout29. 13-362 JULY 23, 2013 13-362 RESOLUTION (CARRIED__7-0_____LOST_______LAID OVER_______WITHDRAWN_______) PURPOSE: APPROVE LAND ACQUISITION / DONATION FOR PARK PURPOSES / RIVERWALK IMPROVEMENTS ALONG THE FOX RIVER FROM SIX RIVERS INVESTMENT LLC; AUTHORIZE REDEVELOPMENT AUTHORITY TO ACQUIRE INITIATED BY: SIX RIVERS INVESTMENT LLC PLAN COMMISSION RECOMMENDATION: Approved WHEREAS, Six Rivers Investments LLC have generously offered to donate to the City the riverfront portion of the property formerly known as Jeld-Wen on West 6th Avenue for park purposes that will allow the City to construct a public riverwalk/pedestrian trail from the Oregon Street bridge westerly to the former Boat Works property, as well as riverfront lands along the parcel east of and adjacent to the Oregon Street bridge; and WHEREAS, the proposed donation is conditioned upon the City proceeding with construction of the RIverwalk and upon the availability of TIF Financing for the City match for WisDNR grants for construction of the Riverwalk; and WHEREAS, the City of Oshkosh expresses its utmost gratitude and appreciation to Six Rivers Investments LLC for its generous donation. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the City hereby accepts said conveyance of land for riverwalk purposes upon the conditions that an option be granted to the donor to repurchase the property for $1 if the Riverwalk is not constructed and if the City is unable to provide TIF financing for the City match for WisDNR grants for construction of the Riverwalk. BE IT FURTHER RESOLVED that the Common Council authorizes the Redevelopment Authority to acquire/accept said lands for riverwalk/park purposes. BE IT FURTHER RESOLVED that the proper City officials are hereby authorized and directed to execute any and all documents necessary for purposes of same. QJHKOIH ov M worn TO: Honorable Mayor and members of the Common Council FROM: Allen Davis, Community Development Director DATE: July 16, 2013 SUBJECT: Accept Donation from Six Rivers LLC for Development of Riverwalk on the former Jeld -Wen Property (421 and 424 Oregon St.) BACKGROUND The new owners of the Jeld -Wen property have been discussing the alternative development plans for the site. It appears that the new owners support the extension of the riverwalk and are willing to donate the land necessary for the extension of the riverwalk. Preliminary design and initial consultation with permitting agencies have been completed. The City has submitted riverwalk grant applications for 2 sections of the Jeld -Wen riverfront that depend on the City owning the property. This donation meets that requirement. The Option to Repurchase the land is based on the developer's concern that the City may not proceed with the construction of the riverwalk. The Option is to be granted to the developers in case the City does not receive the riverwalk grants or Tax Increment Financing for the City match does not come to pass. ANALYSIS The City received donations of the north shore riverwalk through the City Center property and then the Hotel property prior to constructing the riverwalk and docks. WisDNR grants require the City to control the property, either in ownership of the land or with an easement. It appears the Jeld -Wen developers have reached the same conclusion as the north shore owners, that land donation is the best alternative. The land donation appears to have two potential advantages for the owners: recreational immunity and a possible tax deduction. If the City owns the riverwalk, then the developers would not the same potential liability if the access was granted via easement. The City is also protected by recreational immunity. The tax deduction is based on the owner's appraisal of the donation, and is between the owners and the taxing jurisdiction. The proposed Option to Repurchase is based on the owner's desire to ensure that in the event the City does not build the riverwalk, that the owners/developers can obtain title to the property in the future. WisDNR requires the City to own the property for the riverwalk or own an easement for the riverwalk. If the WisDNR does not grant partial funding for the project, then the City would not proceed with the next phase of the riverwalk. In addition, if the City does not create a TIF district or amend the existing TID #20 for the possible redevelopment of the Jeld- Wen site, then the owners have the option to repurchase the riverwalk area. The City will likely not proceed with the riverwalk unless the City obtained a substantial WisDNR grant. Likewise, the use of TIF funding for the local match is also pledged for the local match. Both the grant and the approved TID Plan must be created, or the owners have the right to repurchase the property. FISCAL IMPACT The City would not be spending any money on the donation. The City will be responsible for construction and maintenance of the riverwalk. The donation is consistent with the other riverwalk segment donations and consistent with the Riverwalk Plan. RECOMMENDATION The City Council accepts the donation for the Riverwalk and approves the Option to Repurchase. Approved, 7e(&---te,/-aL City Manager ITEM: ACCEPT LAND DONATION (LAND ACQUISITION) FOR RIVERW_ALK DEVELOPMENT ALONG THE FORMER JELD -WEN PROPERTY (421 OREGON STREET & 424 OREGON STREET) ^ Plan Commission meeting of July 16, 2013 GENERAL INFORMATION Petitioner: City Administration Owner: Six Rivers Investments, LLC Action(s) Requested: City Administration is requesting acceptance of two separate land donations related to development of the riverwalk system. The first request involves acceptance of approximately 1,300 lineal feet of land along the south shore of the Fox River west of Oregon Street. The second acceptance involves approximately 340 lineal feet along the south shore of the Fox River east of Oregon Street. Both land donations are part of the former Jeld -Wen Manufacturing facility which ceased operation in the late 2000's. Background: In 2006 the City adopted the Fox River Corridor Riverwalk Plan that called for development of a looped riverwalk system along both banks of the Fox River that would also include docking facilities. Since adoption, the city has completed all the riverwalk segments along the north side of the Fox River as well as William Steiger Park on the south shore of the Fox River, east of Ohio Street. City staff has been working with the owners of the former Jeld -Wen property on development of the riverwalk and the owners have agreed to dedicate lands that will eventually allow for construction of the riverwalk. Property Location and Type: The subject actions take place in the segment identified in the Fox River Corridor Riverwalk Plan and Design Guidelines as the Jeld -Wen Area and the South Shore Central Zone which contained the former Jeld -Wen wood products manufacturing facility which is now in the early phases of redevelopment. The area of acquisition is approximately 2.40 acres on the west side of Oregon Street and 0.32 acres on the east side of Oregon Street and is split between actual land area along the river frontage and Iand under the river to the U.S. Army Corps of Engineers harbor line. Analysis: Acceptance of the land donation will allow the City to continue with its efforts to develop the riverwalk system. This donation will secure all the lands needed for riverwalk construction from the eastern edge of William Steiger Park to the cast end of the Jeld -Wen property, east of Oregon Street. The South Shore West Zone (former Boat Works property) is slated for construction during 2013- 2014 and will coincide with construction of a western portion of the Jeld -Wen Area. The remainder of the Jeld -Wen Area up to Oregon Street is scheduled for construction in 2015. Riverwalk construction on the Jeld -Wen property east of Oregon Street is undetermined at this time. RECOMMENDATION Staff recommends approval of the land acquisitions as proposed. The Plan Commission approved of the land acquisition as requested. The following is the Plan Commission's discussion on this item. Mr. Nau presented the item and reviewed the site and surrounding area and the history of the completion of the riverwalk on the north side of the Pox River. He stated that this land donation was for the riverwalk on the south side and that the Jeld Wen site had been purchased by new owners and was currently in the process of demolition of the manufacturing facilities on the site. Parts of the riverwalk on the south side will be constructed in 2014 and 2015 and he reviewed a site plan of the areas scheduled for completion, Ms. Propp questioned why the staff report referred to it as a land acquisition if the land was donated. Mr. Burich responded that the land was still acquired however in this case it was donated by the new property owners. Mr. Borsuk inquired if this was the last piece of land that the City needs to control to complete the remaining riverwalk on the south side. Allen Davis, Director of Community Development, indicated that the area adjacent to the Dockside Tavern & Restaurant and the Sweetwater Performance Center have not yet been acquired however the City has had discussions with them regarding the matter. Both entities seem to be agreeable but formal documentation has not yet been completed. Mr. Cummings questioned the width of the land acquisition. Mr. Davis responded that it would be 30 feet although the walkway itself is only 12 feet wide the additional area along the shoreline was necessary for construction purposes. Both Mr. Nollenberger and Mr. Fcjtik expressed their support of this project and their satisfaction with the portions that have been completed thus far. Motion by Vcjgrt to approve the land donation (acquisition) for riverwalk development along the former Jeld -Y en property located at 421 & 424 Oregon Street. Seconded by Borsuk. Motion carried 9 -0. Item -Land DonadonlJerd -Wen Oregon S1 § m � /2 i/| 2 S ! � 2 S z 0 w in X o� 2 3 � ~ '01 G { 1,Y11 i l i lj f flifw'ifif !l, � � �11 ltjlt i 1 {! 1 lr�i�, r..f:f {ff fr .ijr ! r ir iI J { }f', r �a t f C 4 AM a rj I 1 ! 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They may shots the approximate relative location of property, boundaries and other feature from a variety of sources. These map(s)ldatasets are provided for information purposes only and may not be suffrrient or appropriate for legal, engineering, or surveying purposes, They are provided 'AS-16' without warranties of any find and the City of Oshkosh assumes no Lability for use or misuse. I- V,MPIanni —n Pl— r'.nmmrcinn C P. Plan U- Tam NAtPAPlan fnmmi:clnn ii P. Plan Vpn Temn!nta. mid 0 F MEWS] ran MIWE. N I in = 0,06 mi 1 in = 300 ft Printing Date: 7/11/2013 Prepared by: City of Oshkosh, M OfHKO.f H 4N THE WATER I I—r fafn J The City of Oshkosh creates and maintains GIS maps and data for f s own use. They mayshart the appfoximale relative location of property, boundaries and other feature from a variety of sources. These map(sydatasets are provided for information purposes only and may not be suffiaent of appropriate for legal, engineering, or surveying purposes. They are provded `AS-V ~fti out warranties of any kind and the City of Oshkosh assumes no tabifty for use or msuse. JAGISWlanningMan Commission Site Plan Map Temp.ateLPlan Commsslon Site Plan Mq Template.mxd N 1 in = 0.09 ml 1 in = 500 ft Printing Date: 7/11/2013 Prepared by: City of Oshkosh, W) QJHK0fH 034 THE WATER User. The City of Oshkosh cwtes and maintains GIS maps and data for its gran use. They may sham the approximate relative locaton of property, boundaries and other feature from a variety of sources. These map{sy datasels are provided for information purposes only and may not be sufficient or appropriate for legal, engineering, or surveying purposes. They are provided `AS -IS' without viarranties of any kind and the City of Oshkosh assumes no liability for use of misuse. Printing Date: 7/11/2013 of HKO.IH ON THE WATER d ![i151NlanninglPran C.ommIssion Sate Plan Map Temp!ale!Plan Commssion Site Fan A"ap Temrate.mxd User: jeffn 1 CITY HALL 215 Church Avenue P.O.Box 1130 Oshkosh,54903-1130 City of Oshkosh OIH KO/H TO: Honorable Mayor and Members of the Common Council FROM: Mark A Rohloff, City Manager re( DATE: July 23, 2013 ����` RE: Amendment to Resolution to Approve Land Acquisition/Donation for Park Purposes/Riverwalk Improvements along the Fox River from Six Rivers Investment LLC; Authorize Redevelopment Authority to Acquire Since publication of the Council Agenda the proposed Option Agreement with Six Rivers Investment LLC related to the donation of property for the Riverwalk has been finalized. Attached to this memorandum is a copy of the final Option Agreement for Council's review. Through the negotiation process, the parties' understanding relative to the conditions of the option were clarified which also necessitated a revision to the Council resolution to more accurately reflect the understanding of the parties. Even with these changes, I am comfortable that we have sufficient protections ih place to ensure that the City has the land for the Riverwalk in the future. A marked version of the revised resolution is also attached to the memorandum. The City Clerk will provide revised versions of the Resolution for each council member. n OPTION TO PURCHASE This OPTION TO PURCHASE ("option") made and entered into this day of , 2013, by the Redevelopment Authority for the City of Oshkosh, (the "Optioner") and Six Rivers Investments LLC (the "The Optionee"). Recitals The Optionee owns and desires to redevelop the property commonly known as the former Jeld Wen property, located generally between the terminus of W. 4th and 5th Avenues to the west and Oregon Street to the east, and W. 6th Avenue to the south and the Fox River to the North and encompassing parcel identification numbers 90900010100, 90900010000, 90902390000 and 90300010000, all located in the City of Oshkosh as shown on the attached Exhibit "A" to this Agreement; and Optionee has given to the Redevelopment Authority for the City of Oshkosh a donation of land adjacent to Optionee's property shown on Exhibit "A" along the Fox River for the purpose of constructing a portion of the City's proposed Riverwalk System ("the Property"), as shown on the attached Exhibit "B" to this Agreement, with the conditions that Optionee be given this Option to repurchase the Property for $1 if the City of Oshkosh is unable to obtain certain grants for the construction of the Riverwalk or if the City of Oshkosh fails to either amend the existing TIF District or create a new TIF District encompassing the property owned by Optionee on or before December 31, 2013. NOW, THEREFORE, in consideration of the premises herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged it is agreed as follows: Agreement 1. Optioner hereby grants Optionee an exclusive Option to Purchase the Property upon the terms and conditions contained herein, if the City of Oshkosh is unable to obtain grants for the construction of the Riverwalk or if the City of Oshkosh fails to either amend the existing TIF district or create a new TIF District encompassing the adjacent property owned by Optionee on or before December 31, 2013, which TIF will be on terms and conditions acceptable to Optionee (the obtaining of grants and the TIF District actions are together referred to as the "Conditions"). If both of the Conditions are satisfied, the Optioner will give written notice to Optionee of such fact on or before January 3, 2014. 2. Optionee shall have the right and option to purchase the Property if the conditions specified in paragraph 1 above are not fulfilled in accordance with paragraph 1 above, or if Optioner fails to deliver the notice required of it under paragraph 1 above, but only if Optionee provides written notice of the intent to exercise this Option on or before January 15, 2014. If Optionee fails to provide such written notice to Optioner by January 15, 2014, then this Option shall expire and shall be of no further force or effect. 3. If Optionee choses to exercise this Option, the following shall be the terms of Purchase: a. the purchase price shall be one dollar ($1.00) paid in cash at closing b. Upon payment of the purchase price, Optioner shall convey the Property by deed in the same form as the Property was conveyed to Optioner by Optionee, provided that if the Optioner has imposed any liens, or conditions, covenants or restrictions on the property, they will be released of record at the same time as the deed is delivered. c. Closing shall occur within 30 days of the exercise of the Option. d. The Optioner will not, and will not permit, improvements to be made to the property prior to the date on which this Option terminates, or if the Option is exercised then the date on which Optionee closes on the repurchase of the property. 4. This Agreement and the rights and terms hereunder are binding only upon the parties to this Agreement and neither this Agreement, nor any rights created hereunder shall be transferred or assigned to any third party. IN WITNESS WHEREOF, the parties have executed this Option Agreement as of the date first above written. OPTIONER: REDEVEOPMENT AUTHORITY FOR THE CITY OF OSHKOSH By: Thomas Belter, Chair H. Allen Davis, Executive Director 2 OPTIONEE: Six Rivers Investments LLC By: Grant Schwab, Manager ACKNOWLEDGEMENTS STATE OF WISCONSIN ) )SS. WINNEBAGO COUNTY) Personally came before me on this day of , 2013, the above-named Thomas Belter and H. Allen Davis, respectively the Chair and Executive Director of the Redevelopment Authority for the City of Oshkosh, to me known to be the person(s) who executed the foregoing instrument and acknowledged the same. Notary Public State of Wisconsin Winnebago County My Commission expires: ACKNOWLEDGEMENTS STATE OF WISCONSIN ) )SS. WINNEBAGO COUNTY) Personally came before me on this day of , 2013, the above-named Grant Schwab to me known to be the person(s) who executed the foregoing instrument and acknowledged the same. Notary Public State of Wisconsin Winnebago County My Commission expires: 3