Loading...
HomeMy WebLinkAbout12. 14-124 MARCH 25, 2014 14-124 RESOLUTION (CARRIED___7-0____ LOST _______ LAID OVER _______ WITHDRAWN _______) PURPOSE: AMEND ACCEPTANCE OF ECONOMIC DEVELOPMENT ADMINISTRATION (EDA) PUBLIC WORKS GRANT AWARD TO INCLUDE CONDITION RELATED TO ADJOINING PROPERTY – AVIATION BUSINESS PARK INITIATED BY: CITY ADMINISTRATION WHEREAS, the Common Council previously authorized the City to apply for and accept an Economic Development Administration (EDA) Public Works Grant in cooperation with Winnebago County for the financing and construction of the Aviation Business Park by Resolution 13-106 adopted on February 26, 2013; and WHEREAS, the City of Oshkosh and Winnebago County were awarded a grant to support the Oshkosh Aviation Business Park Project on September 25, 2013 which grant was accepted by the City and County in November 2013; and WHEREAS, the grant’s special award conditions require property value agreements for adjacent parcels that may benefit from the EDA grant stating that for a defined period after the construction of a grant funded project an adjoining parcel will not be sold at greater than the parcel’s pre-project appraised fair market value to ensure that EDA funds are not being used for private gain; and WHEREAS, the grant’s special award conditions specifically provide that prior to the disbursement of funds by EDA that EDA must be provided evidence that the private owner of two 40-acre parcels of land adjoining the proposed Aviation Business Park have entered into an agreement with the City that for a reasonable length of time this private owner will not sell the unoccupied land above the appraised fair market value prior to the Project; and WHEREAS, the private owner of the parcels has refused to sell the land for the appraised fair market value or enter into such an agreement; and WHEREAS, the property is located within the Town of Nekimi and is currently zoned Agricultural; and WHEREAS, annexation and rezoning of the property would be required if the property were to be redeveloped to commercial/industrial property to benefit from the EDA grant funded Aviation Business Park Project; and MARCH 25, 2014 14 -124 RESOLUTION CONT'D WHEREAS, EDA recognizes the City's difficulties in complying with the requirement of the specific provision and is willing to amend the condition of the grant award to assure compliance with their underlying concerns through agreement by the City that if the adjoining parcel is annexed to the City and rezoned for commercial or industrial use within the next four (4) years, that the City will repay the grant amount to EDA. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the City Manager and appropriate city staff are hereby authorized and directed to accept an Economic Development Administration Public Works Grant in the amount of two million dollars ($2,000,000) which the City will match with more than fifty percent (50 %) of the cost of the Project, which will be funded through the sale of general obligation bonds or the receipt of loan funds from the State of Wisconsin Land Trust to finance and construct the Oshkosh Aviation Business Park with the condition that the City will repay the grant amount to EDA if the City annexes, in whole or part, the property adjoining the Oshkosh Aviation Business Park, two 40 -acre parcels currently owned by the Glatz Family Trust, at any time within a four (4) year period from the date of passage of this Resolution. BE IT FURTHER RESOLVED that the City Manager and the appropriate city officials are hereby authorized and directed to execute and deliver any and all agreements and documents relating to said grant and required for purposes of the same. CITY HALL 215 Church Avenue P.O. Box 1130 Oshkosh, 54903-1130 City of Oshkosh -0— QJHKQIH TO: Honorable Mayor and Members of the Common Council FROM: Lynn A. Lorenson, City Attorney DATE: March 20, 2014 RE: AMEND ACCEPTANCE OF ECONOMIC DEVELOPMENT ADMINISTRATION (EDA) PUBLIC WORKS GRANT AWARD TO INCLUDE CONDITION RELATED TO ADJOINING PROPERTY By Resolution 13 -106 adopted on February 26, 2013, the Common Council authorized city staff to apply with Winnebago County for an Economic Development Administration (EDA) Public Works Grant for the purpose of financing the construction of the Oshkosh Aviation Business Park. EDA awarded the City and County a $2 million grant which the City and County accepted in November 2013. The grant's special award conditions require property value agreements for adjacent parcels that may benefit from EDA grant funded projects requiring that for a defined period after the construction of a grant funded project an adjoining parcel will not be sold at greater than the parcel's pre - project appraised fair market value to ensure that EDA funds are not being used for private gain. Specifically, special award condition number 19 requires that the private owner of two 40 -acre parcels of land adjoining the proposed Aviation Business Park (the Glatz Family Trust) enter into an agreement with the City that for a reasonable length. of time this private owner will not sell the unoccupied land above the appraised fair market value prior to the construction of the Aviation Business Park Project with EDA grant funds. The City approached the private owner of this property, however; the private owner has refused to sign the requested agreement. The City then contacted EDA and through discussions with representatives for EDA, it was determined that, in recognition of the property owner's refusal to enter into the requested agreement, EDA would accept an alternative arrangement to address their concerns related to private gain. The proposed resolution would amend the acceptance of the EDA Grant to include a condition that if the City should choose to annex the property owned by the Glatz Family Trust during the next four (4) years, the City must repay the grant amount to EDA. ANALYSIS The amendment to the acceptance of the grant would allow the City to meet the requirements of the grant. Because the Council cannot bind future councils, it cannot simply declare by resolution that it will not annex the property during the next four year period. The proposed resolution would allow the Council to consider annexation or rezoning of the property but would condition any such action upon repayment of the grant amount. At this time, staff does not anticipate annexation or rezoning of this property within the next four years. The City has a Cooperative Boundary Plan with the Town of Nekimi and although the Glatz property is identified within the City's Expansion Area within the Plan there are no immediate plans for this property. In order to develop as commercial or industrial property, sewer and water would need to be extended to the property. The City's five year Capital Improvement Plan does not include extension of utilities into this area. Annexation and rezoning would both require City approval and so are within the City's consideration and control as that relates to this requirement. FISCAL IMPACT Approval of the amendment to this condition would allow the City to accept the EDA grant funds. If at some time within four years from the date of adoption of this resolution, the City would annex or rezone the property to commercial or industrial, in whole or in part, the City would be obligated to repay the grant amount to EDA. Staff recommends that the Council accept the proposed condition. Re ectfully Submitted, 4P�bd�u� Lynn A. Lorenson City Attorney Approved: Mark A. Rohloff City Manager