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HomeMy WebLinkAbout03. 14-303 JULY 8, 2014 14-303 RESOLUTION (CARRIED___7-0___LOST_______LAID OVER_______WITHDRAWN_______) PURPOSE: APPROVE DISPOSITION OF SURPLUS PROPERTY TO RONALD & JANE JOHNSON LLC; LAND AND RAILROAD SPUR NORTH OF 3555 MOSER STREET INITIATED BY: COMMUNITY DEVELOPMENT PLAN COMMISSION RECOMMENDATION: Approved BE IT RESOLVED by the Common Council of the City of Oshkosh that the land and railroad spur north of 3555 Moser Street, per the attached, is hereby declared surplus and the proper City officials are hereby authorized and directed to execute any and all documents necessary to sell said property to Ronald & Jane Johnson LLC. (4) OJHKOf H ON THE WATER TO: Honorable Mayor and Members of the Common Council FROM: Allen Davis Community Development Director DATE: July 1, 2014 RE: Approve Disposition of Surplus Property for Ronald & Jane Johnson, LLC; Land and Railroad Spur North of 3555 Moser Street BACKGROUND The City owns and maintains a rail spur that was constructed for the industrial development known as Pacur. Pacur owns land on both sides of the rail spur, and have exclusively used the rail spur since it was constructed. Pacur approached the City in regard to their interest in purchasing the rail spur due to their desire to expand and the rail spur acquisition is critical to their planned expansion. City staff has examined the proposed sale and have prepared a Purchase Agreement to that end. ANALYSIS Pacur requires a controlled environment for their production and will need to build across the City property to maintain the controlled environment. There are no other expected users for the rail spur to the west of the property. The Plan Commission has reviewed the proposal and has also recommended approval. FISCAL IMPACT City staff has examined the value of industrial land in the North industrial park and determined the value to be $1.20 per square foot. The land would then be valued at $10,916. The rail spur improvement was installed by the City in 1991 for $4,260. Pacur would pay the City's cost of the rail spur. The total value for the land and spur would then be $15,176. RECOMMENDATION The City Council approves rail spur disposition as presented in the Purchase Agreement. Approved, • _ ,...e. ,emittw City Manager Purchase Agreement This Agreement, is made and entered into this day of 2014 by and between the following parties: Parties: The City of Oshkosh, a Wisconsin municipal corporation, 215 Church Avenue, Oshkosh, Wisconsin 54901 (hereinafter referred to as "Seller"). Ronald H. and Jane K Johnson LLC, or assigns, 3555 Moser Street, Oshkosh, Wisconsin 54901 (hereinafter referred to as"Buyer"). Intent of the Parties: It is the intention of both parties to convey to the Buyer a section of a rail road spur owned by the City of Oshkosh, and used by the Buyer, for the purpose of furthering business interests of the Buyer, and assisting with the development of a regional storm water detention facility, while eliminating the railroad maintenance and other ownership costs of the Seller. Agreement: In consideration of the purchase price hereinafter set forth, the terms of this agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Seller agrees to sell, and the Buyer agrees to purchase, the real property described in this Agreement along with all fixtures and improvements thereon pursuant to the terms described. The parties herby agree as follows. All Terms Material: Both parties agree that all terms identified in this agreement are material and the violation of any one term can be considered sufficient cause for declaring the other party to be in breach of this Agreement, if the non-breaching party elects to declare such breach. Property: Approximately 9,090 square feet of land in the City of Oshkosh, Winnebago County, Wisconsin, designated as Parcel A on the attached Exhibit 1 of this Agreement (hereinafter referred to as the "Property"),subject to the terms and conditions of the this Agreement. Items Included: This purchase shall apply to the Real Property described as well as all fixtures and improvements thereon, including the existing railroad spur and related appurtenances. Purchase Price:The purchase price of the Property shall be: Fifteen Thousand One Hundred Seventy Six and 46/100 Dollars($15,176.46) Prorations: There will be no prorations for any costs or expenses of any kind due at closing to either party. Property Condition: The Property is adjacent to the Buyers business, and the Property and its railroad spur have been under the sole observation and use of the Buyer, excepting any observation or use by the Railroad otherwise controlling the track. Therefore, the Buyer is in the best position to know and understand the status and condition of the property and improvements thereon. Therefore, The Buyer acknowledges that the Property, along with all improvements, fixtures, and any other item location on the Property, is purchased as is and the Seller has made no representation of property condition or warranties, whether express or implied, related to past or future use of the Property and/or railroad track. Annexation of Adjoining Property: The Buyer agrees to submit to the City a Petition for Annexation, and to subsequently consent to and facilitate the City of Oshkosh's annexation of the land owned by the Buyer in the Town of Oshkosh adjoining the Property's northern boundary prior to closing on the 1 Property, designated as Parcel B on the attached Exhibit 1 of this Agreement (herein after referred to as the "Annexing Property"). Right-of-way dedication: The Buyer agrees to donate to the City 40 feet along the Annexing Properties entire frontage of Snell Road for the purpose of dedicating right-of-way and to allow upgrading Snell Avenue to accommodate development on the Annexing Property. This donation for the dedication of right-of-way must occur prior to building on the Annexing Property, or on or before December 31, 2017, whichever is earliest. The Buyer agrees to pay all costs for surveying, mapping and recording the right- of-way dedication. The Annexing Property's Forty (40) foot right-of-way dedication includes both the existing Thirty-Three (33) feet currently used for Snell Road right-of-way but technically a part of the Annexing Property, along with an additional Seven (7)feet along the entire frontage of Snell Road. Railroad Spur Maintenance: The Buyer accepts the railroad spur and all appurtenant equipment in their current condition on an as-is basis. After the property is conveyed, the Buyer shall be wholly and solely responsible for all maintenance of the property and maintenance, repairs, and replacement of railroad spur, including tracks and all appurtenances, located on and within the Property Railroad: The Seller is unaware of any issues or liabilities of the Property and the subject railroad spur with the current operators of the railroad line, currently understood to be Wisconsin Central, Ltd and/or Canadian National. Upon the conveyance, Buyer assumes all responsibility for all issues related to the Property that pertain to the operator of the railroad, currently understood to be Wisconsin Central, Ltd. and/or Canadian National. Buyer agrees to assume primary responsibility for notifying the operator of the railroad and taking all actions to necessary to assume responsibility for the Property and the railroad spur thereon. The Seller agrees to cooperate in good faith with Buyer's efforts related to the railroad operator. Marketability of Title: Marketable title to the Property shall be held by the Seller free and clear from all liens and encumbrances, excepting: municipal and zoning ordinances, recorded easements for public utilities located adjacent to side and rear lot lines, recorded building and use restrictions and covenants, general taxes levied in the year of closing provided none of the foregoing prohibit present use. No tax liens of any nature whatsoever shall exist against the Property or Seller. If any defects are discovered, Seller shall take all reasonable steps to cure such defects prior to the date of closing for this transaction. Seller represents that no work or materials have been supplied to or incorporated into the Property, which could give rise to a lien of any kind, within six (6) months prior to the date of this Agreement, and that no such work or materials will be supplied to or incorporated into the Property prior to the date of closing, unless the same have been paid for by Seller and appropriate lien waivers have been provided to Buyer. Legal Defect in Title: The parties are entering into this transaction by agreeing to be responsible for their own costs and expenses, except where otherwise specifically agreed to in writing. Should Seller be unable to close the transaction described in this Agreement by reason of a valid legal defect in title which Buyer is unwilling to waive, there shall be no money due to be paid or returned to the other party and the purchase contract shall be null and void. Conveyance of Title: Seller shall, convey the Property by warranty deed, free and clear of all liens and encumbrances excepting, municipal zoning ordinances, recorded easements from public utilities located adjacent to side and rear lot lines, recorded building and use restrictions and covenants, and general taxes levied in the year of closing, provided none of the foregoing prohibit present use. 2 Title Evidence: Seller shall furnish and deliver to Buyer for examination at least Fifteen (15) days prior to the date set for closing, an owner's policy for title insurance in the amount of the full purchase price naming Buyers as the insured, written by a responsible title insurance company licensed in the State of Wisconsin, which policy shall guarantee seller's title to be in condition called for by this Agreement. A commitment by the title company agreeing to issue the required title policy upon the recording of the closing documents agreed herein shall be deemed sufficient performance. Closing: The closing of the purchase of the Property shall take place on or before June 30, 2014. The closing shall be conducted in the City of Oshkosh, at a location agreed upon by the parties. Buyer agrees that unless otherwise specified, Buyer will pay all costs of securing any financing obtained by Buyer, as well as all other usual and customary costs paid by buyers in similar transactions. Seller agrees that Seller will pay all usual and customary costs paid by seller in similar transactions. No Leases: Seller warrants and represents that the Property will not be subject to any lease as of the date of closing. Injunctive Relieve/Specific Performance: In the event of a breach or default with respect to any of the terms or provisions of this Agreement, the party not in default shall have the right to enforce the terms of this Agreement by injunctive relief or a decree of specific performance. Said remedies shall, however, be cumulative and nonexclusive and shall be in addition to any other remedies the party may have. Waiver: Each party may at their discretion or within their time frame elect to require full compliance with the terms and provisions of this Agreement. Any delay of enforcement or election to temporarily forego enforcement and insist upon full compliance with the terms and provisions of this Agreement shall not be constructed as waiver of the right to insist upon full compliance in the future. Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes any and all oral or written agreements previously made between the parties regarding its subject matter. No changes, modification or addition to this Agreement shall be valid unless in writing or signed by or on behalf of parties to this Agreement. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Wisconsin, and shall have a venue in Winnebago County, Wisconsin, or in any Federal Court District that includes Winnebago County,Wisconsin. Binding Effect: This Agreement shall be binding upon and inure to the benefit of each of the parties and his respective heirs, successors,transferees and assigns. In Witness Whereof, the undersigned parties have executed this Agreement as of the day and year first written above. 3 IN WITNESS WHEREOF, said Grantor has hereunto set their hand and seal the day and year first above written. RONALD H. AND JANE K.JOHNSON, LLC Ronald H.Johnson Jane K.Johnson STATE OF WISCONSIN ) ss. WINNEBAGO COUNTY ) Personally came before me this day of , 2014,the above named Ronald H.Johnson, to me known to be such person who executed the foregoing instrument and acknowledged the same, for the purpose herein contained. Notary Public,Winnebago County,Wisconsin My Commission expires: STATE OF WISCONSIN )ss. WINNEBAGO COUNTY Personally came before me this day of , 2014,the above named Jane K.Johnson,to me known to be such person who executed the foregoing instrument and acknowledged the same, for the purpose herein contained. Notary Public,Winnebago County,Wisconsin My Commission expires: 4 CITY OF OSHKOSH By: Mark A. Rohloff,City Manager By: Pamela R. Ubrig, City Clerk STATE OF WISCONSIN ) )ss. WINNEBAGO COUNTY ) Personally came before me this day of , 2014, the above named Mark A. Rohloff 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 expired: APPROVED AS TO FORM: Lynn A. Lorenson,City Attorney 5 CY \ 00 W0 w ,n Z I zco W � 00 O I 0_ c0 — rn U I Z W in Z z 04 uJJ a W CO W _W U X O N O Q E- l_ n iri d z O ON L z N2 E i o 0> at- o n Y° o e N w MOSER ST. °� \ ll . [ I i rZ I � Z o 0z Z Ws U� $ a J Ll I a = ¢ CD N I r-------r'- O �11 1 I I- o oSr- 0 co a o .-; w Lfp I a z /) ti _ z2 �/'� j� r J 1- S S z U F- F- N w w .m-i �J �..— --- Z Z vi z z O 7 w U 2 .� 1 CO (0 O 3 w x 0 0 3 w 0 _ \ O 0 0 = m H w S I— C0 CO Q o N N U N ~ W - ti LTI 9 Z LO V 0 2 m t ? 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I (n r co "h ITEM: LAND DISPOSITION OF PROPERTY LOCATED ADJACENT TO 3555 MOSER STREET Plan Commission meeting of May 6, 2014 GENERAL INFORMATION Applicant/Owner: City of Oshkosh Actions Requested: The City requests land disposition of a property containing a railroad spur located north of and adjacent to Pacur, LLC, 3555 Moser Street. Applicable Ordinance Provisions: N/A Property Location and Background Information: The area in this request involves a 15-foot by 606-foot, approximately 9,090 square foot strip of land containing a rail spur line serving Pacur, LLC, a plastics manufacturer to the south. The City is proposing to dispose of the property to Pacur, LLC as part of future expansion plans of their manufacturing facilities. The property is located in the City's North Industrial Park and also borders the Town of Oshkosh to the north. The surrounding area is predominantly industrial as far as uses, with exception of the aforementioned town property to the north which is currently being used agriculturally. ANALYSIS This request was initiated by Pacur, LLC, which is in the planning phases of expanding their manufacturing facilities onto their undeveloped land north of the City's spur property. As-is, the City-owned land acts as an impediment to Pacur's planned expansion as there is no physical connection between their properties. The subject land and railroad spur has no practical use to the City and will be better utilized for Pacur's proposed improvements and stimulating development in the area. RECOMMENDATION/CONDITIONS Staff recommends approval of the land disposition of property containing a railroad spur located north of and adjacent to 3555 Moser Street as requested. The Plan Commission approved of the land disposition of property north and adjacent to 3555 Moser Street 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 as well as the land use and zoning classifications in said area. He stated that the request was initiated by Pacur, LLC, in conjunction with plans to expand their manufacturing facilities onto their undeveloped land north of the spur property. The area is located in the City's North Industrial Park and Pacur, LLC, will be requesting annexation of the undeveloped parcel in the near future. Mr. Thorns questioned if the City owns the land, who owns the rail spur located on it. Allen Davis, Director of Community Development, replied that the City was having a title search completed at this time to make that determination but believed it was owned by the City. Mr. Thorns commented that if the railroad owns the spur on the property, there is no point to the proposed land disposition. Mr. Davis responded that he believes that the City installed the spur in conjunction with the Pacur facility. Mr. Burich added that the item is moving forward with the assumption that the railroad spur belongs to the City. Mr. Thorns inquired if this information will be known prior to it proceeding to the Common Council for action on this request. Mr. Davis responded affirmatively. Mr. Bowen asked for details on how the land disposition would be processed. Mr. Davis indicated that since the railroad spur is located on a separate parcel owned by the City that it would be handled as a land disposition rather than a vacation and a quick claim deed will be processed by the City Attorney's office to complete the transaction. Mr. Thorns then questioned if there were utilities in the right-of-way that would cause concerns. Mr. Davis responded that there were no utilities in this area as they were all located on Moser Street. Motion by Vajgrt to approve the land disposition ofproperty located adjacent to 3555 Moser Street. Seconded by Nollenberger. Mr. Thorns commented that the ownership of the railroad spur needs to be verified prior to the request being forwarded to the Common Council for action. Motion carried 6-0. Item —Land Disposition N of 3555 Moser St 2 „o VV g', IJEIJ S1TE o i Ii• C C O a„ 1 i l i � 1 I F.n i 11 j I I 1 i I i I } , i we er --. f 1 I 1 B 'I e.s '� '' ''”' . �- N 1 i: :f A 1 'iillii;) i r The City of Oshkosh creates and maintains GIS maps and data for its own use. They may show the 1 r approximate relative location of property, boundaries and other feature from a variety of sources. Punting Date:4/29/2014 OiHKLJ(�J H These map(s)/datasets 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 I Prepared by: City of Oshkosh;WI ON THE WATER warranties of any kind and the City of Oshkosh assumes no liability for use or misuse. J:1G151PIanning\Plan Commission Site Plan ivlap Templaie\PIan Commission Site Plan Map Template.mxd User deborahf 3 LAND DISPOSITION MILPRINT INC CITY OF OSHKOSH NORTH OF 3555 MOSER ST 3550 MOSER ST PO BOX 1130 PC: 05-06-14 OSHKOSH WI 54901-1255 OSHKOSH WI 54903-1130 RONALD H/JANE K JOHNSON LLC CURWOOD INC NORTHERN WISCONSIN 3555 MOSER ST PO BOX 2968 WAREHOUSING LLC OSHKOSH WI 54901-1270 OSHKOSH WI 54903-2968 PO BOX 1015 HORSHAM PA 19044-8015 mo. Y %l% •foli E! cc //6010.401.04.. Ilr ar 7 i i j Q • i l'::-.11,.. 1 l I l l oORT R D EaF••- NI '! •V �)-- s 1,'',/,/i I _1rte-. — , 0UT H t.! I C 'N.' , 0 DR pv 1 . i _; ;\ v/ // \ '\ 1 C.)wiYikil.M\ 'LI -\ : R=T2__ _ C-1 PD Vii;; R 2 r_— _ - RT2 oC■- pA#�lS�� r t /* • - F:\ -ULIrn ? 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