HomeMy WebLinkAbout11. 13-548
DECEMBER 10, 2013 13-548 RESOLUTION
(CARRIED___7-0___LOST________LAID OVER________WITHDRAWN________)
PURPOSE: APPROVE AMENDMENT TO THE AMENDED DEVELOPMENT
AGREEMENT FOR STONEY BEACH WEST SUBDIVISION
INITIATED BY: CITY ADMINISTRATION
BE IT RESOLVED by the Common Council of the City of Oshkosh that the attached
Amendment to the Amended Development Agreement for Stoney Beach West Subdivision
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.
CITY HAIL
215 Church Avenue
PO. Box 1133
Oshkosh, Wisconsin City of Oshkosh
5�19a3 -113 I �(
OlHKO1H
TO: Honorable Mayor and Members of the Common Council
FROM: David J. Praska, Assistant City Attorney
DATE: December 5, 2013
RE: Amendment to Amended Stoney Beach West Development Agreement
BACKGROUND
The Stoney Beach West subdivision began construction around the year 2003. As in
other developments, the City expended funds in this development through the
installation of streets and utilities. After the development of a few lots, the special
assessment balance remaining due is approximately $141;000.00. In most instances
the City would receive payment for the City's expenses upon completion either directly
from the developer, or through special assessments from the individual parcels. The
Council at that time, however, decided to defer the assessments until the developer sold
each property. The subdivision has been slow to develop, and after a few houses were
constructed, the subdivision has been largely dormant. The developer is now selling
the remaining parcels to a new developer. The Amended Development Agreement in
its current form would cause this transaction to trigger the payment . of all unpaid
assessments. The new developer/owner of the undeveloped parcels has asked for
extra time to pay the special assessments. Staff has reached an agreement with the
new developer/owner to repay the special assessments over a period of five (5) years.
ANALYSIS
While it would be beneficial to the City to collect the entire $141,000.00 due at this time,
staff believes that this large lump sum along with the struggling housing market created
an impediment to the continued development of this subdivision. The new
developer/owner has asserted to staff that a payment plan over five (5) years will
reinvigorate activity at this development. In addition to the overall five (5) year.paymeni
plan, the special assessment for each lot will need to be paid in full when the
developer/owner sells it to third parties. The City will collect interest on the unpaid
balances.
R
FISCAL IMPACT
The compromise of allowing a five (5) year payment plan will enhance the City's ability
to collect unpaid assessments, as well as increasing the opportunity to add to the City's
tax base through new development at an otherwise dormant subdivision.
RECOMMENDATION
Staff recommends approval of the Amendment to the Amended Development
Agreement.
pectfull Submitted,
J'
David J. raska
Assistant City Attorney
A ENDMENT TO
AMENDED DEVELOPMENT
AGREEMENT
Daeument Mambrr Document Title
STONEY BEACH WEST SUBDIVISION
Lots 1 -22 and 1 Outlot
Amendment to the Amended Developer's N* me and Retarn Address
Agreement for Financing Immprovementa City Atfarney'a 001ce
Filed with the WinnebaSo County Register [Oshkosh W154903_1130
Of Deeds on Deaembes 9, 2004 as Document
Number 1338003
z7, 2013
AMENDMENT TO
AWNDED DEVELOPEWS AGREEMENT
FOR FINANCING IMPROVEMENTS
The City of Oshkosh, 215 Church Avenue, Oshkosh, Wisconsin (CITY) and CR Property Solutions, LLC, 1013 Tana
Court, Menasha, Wisconsin (CRPS) enter into this agreement for $ 1.00 and other good and valuable consideration.
1. The CITY previously entered into an Amended Developer's Agreement for Financing Improvements (Developers
Agreement) with Stoney Beach West, LLC, for the purpose of facilitating the development of the Stoney Beach West
subdivision. This Amended Developer's Agreement was recorded with the Winnebago County Register ofDeads on
December 9, 2004, as document number 1338006, and is attached as Exhibit B.
2. The Developers Agreement was assigned by Stoney Beach West, LLC to CAPS through a subsequent Assignment
Agreement, which was approved by the CITY on December 10, 2013 through Common Council Resolution . and
recorded with the Winnebago County RegisterofDeWs; on Dceember 2013, as document number
3. The CITY and CR PS now wish to modify the existing Developers Agreement to further facilitate the completion of this
development. It Is the intention of both pasties that the only changes to the Developers Agreement arc those explicitly
identified in this Amendment, and that the benefits, burdens, liabilities, terns, conditions, and covenants of the
Developers Agreement shall remain in effect.
4. The Parties agree to the following change of terms In the paragraph identified as "A. SPECIAL, ASSESSMENTS"
The followintt_term shall be deleted
Sidewalk and Concrete Paving
In installments pursuant to Sections 2583 through 89 of the Oshkosh Municipal Code in which case such
Installment payments are to bear interest at the rate of eight percent (8%,) per annum of the unpaid balance.
NoWthstanding the foregoing, Developer, Immediately upon divesture oftitle to anyofthe property heretofore
described, shall fully pay the outstanding assessments and anticipated future special assessments against the
particular parcel or portion thereofsubject to divesture. Divesture shall mean the transfer of legal title provding
Developer does not retain any lien or mortgage interest In such parcel.
With the followina new terms inserted to re viaoe the de leted "tins-
Sidewalks
In installments pursuant to Sections 25.83 through 89 of the Oshkosh Municipal Code in which case such
installment payments are to bear interest at the rate of eight percent (8 %) per annum of the unpaid balance.
Notwithstanding the foregoing, Developer, immediately upon divesture of title to any of the property heretofore
described, shall fully pay the outstanding assessments and anticipated future special assessments against the
particular parcel or portion thereof subject to divesture. Divesture shall mean the transfer of legal title
providing Developer does not retain any lien or mortgage interest in such parcel, but does not include the
assignment of rights and obligations in this Developer's Agreement.
5. The Parties agree to the fallowing change of terms in the paragraph Identified as "A. SPECIAL ASSESSMENTS"
The f llo s lie s reed immediately after "'I'h ever er Il clot as e m n
cost for:"
Concrete Paving
At the time of this Amendment, there are assessments totaling One Hundred Forty One Thousand One Hundred
Four and 25/100 Dollars ($141,104.25) due and owing. A spreadsheet identifying the assessment due far each
lot is attached as Exhibit A and fully incorporated herein. The outstanding assessmentsmay be paid in
Installments pursuant to Sections 25 -83 through 89 ofthe Oshkosh Municipal Code, except that the maximum
repayment period shall be no more than Five (5) years. Installment payments are to bear interest at the rate of
November 27, 2013 CR---
six percent (6°/u) per annum of the unpaid balance. Notwithstanding the foregoing payment terms, all
outstanding and anticipated future assessments for a property within this development is due and owing in full
at the time it is said, transferred, or conveyed to any third party, or immediately upon the Developer's divesture
of title to any of the property heretofore described.
6. The Parties agree to the following change of terms in the paragraph identified as "C. GRADING, GRAVEL1140 AND
PUBLIC UTILITIES 1 2816 Fond du Lac Road & 2782 Fond du Lac Road:"
The foil+a<vin existing terms shall be deleted
Pursuant to the determination of the Common Council that no benefit will accrue to the owners of2816 Fond du
Lac Road and that no benefit will accrue to the owners of 2782 Fond du Lac Road unlessluntil such time as the
property located at 2782 Fond du Lac Road may be subdivided, Developer shall pay all costs for grading,
graveling and public utilities along Gibson Court to a depth of 169.76 feet adjacent to 2816 Fond du Lac Road
and 2782 Fond du Lac Road. Developer shall pay all costs for grading, graveling and public utilities for the
remaining depth of 2782 Fond du Lac Road, which amount shall be refunded to Developer uponpayment to the
City of Oshkosh ofthe deferred special assessments per Resolution #04-I68 of the Oshkosh Common Council.
No interest shall accrue on the amount of the assessments.
W11h he following mc�y terms inserted to retrlaee thg„deleted terms
Pursuant to the determination ofthe Common Council that no benefit will accrue to the owners of2816 Fond du
Lac (toad and that no benefit will accrue to the owners of 2782 Fond du Lac Road unlessluntil such time as the
property located at 2782 Fond du Lac Road may be subdivided, Developer shall pay all costs for grading,
graveling and public utilities along Gibson Court to a depth of 169.76 feet adjacent to 2816 Fond du Lac Road
and 2782 Fond du Lac Road. Developer shall pay all costs for grading, graveling and public utilities for the
remaining depth of 2782 Fond du Lac Road.
7. The Parties agree to the following change of terms in the paragraph above the signatures on page 3 of the "WAIVEROF
SPECIAL ASSESSMENT NOTICES AND HEARING UNDER SECTION 66.0703, WISCONSIN STATUTES
T f gllowing exiging terms §hall a del fed:
Note: per Common Council action (City Resolution #04-168) special assessments for grading, graveling
and utilities were deferred without interest for 2782 Fond du Lac Road In the amount of $16,725.24, to be
paid by the Developer of Stoney Beach West Subdivision as part of the Developers Agreement for that
subdivision and to be reimbursed to the Dcveloper or his/her successor at the time of subdivision of 2782
Fond du Lite Road.
There shall be no an tarnts.inserted to reDlmg tag dole ed tm m .
8. This Amendment shall be recorded with the Winnebago County Register of Deeds and shall be considered to be
Incorporated into the Amended Developer's Agreement far Financing Improvements recorded on December 9, 2004 as
document number 133800% which is attached as Exhibit B.
9. Each term of the Amended Developer's Agreement for Financing Improvements recorded on December 9, 2009 as
document number 1338009 shall remain in full force and effect except where explicitly changed or altered in this
Amendment Agreement.
SIGNATURE PAGES FOLLOW
This Inslrumeai drafted by.
Auomey David I. Praske
Oshkash, Wl 54903 -1130
November 27, 2013 0 R..''
CITY OF OSHKOSH
By:
Mark A. Rohlofs', City Manager
By:
Pamela R. Ubrig, City Clerk
STATE OF WISCONSIN )
S9.
WINNEBAGO COUNTY )
Personally came before me this _ day of _ _ 2013, the above named Mark A. Rohioff and Pamela R.
Ubrig of the City of Oshkosh, to me known to be such persons who executed the foregoing Instrument and acknowledged the
same, for the purpose herein contained.
Notary Public, Winnebago County, Wisconsin
My Commission expires:
APPROVE15 AS TO FORM:
Lynn A. Lorenson, City Attormay
CP PROPERTY SOLUTIONS, LLC
By:
ad ]f��iaWt, Mans ' g Membe
STATE (Dr WISCONSIN
,.
WINNEBACIO COUNTY,):v
Personal yZ hme b me this y the above named Chad Relchelt
day of CSC , 2013, , to me known to be
such person who executed the foregoing instrument an a sa e, For the purpose herein contained.
Ido ' Pagic, VAtnebaij6 County, Wisconsin
My Commission expires: b AcL �20
November 27, 2013