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HomeMy WebLinkAbout14. 14-365 AUGUST 13, 2014 14-365 RESOLUTION (CARRIED___6-0___ LOST _______ LAID OVER _______ WITHDRAWN _______) PURPOSE: APPROVE AGREEMENT WITH CHAMCO TO ACQUIRE TH PROPERTY / 43 EAST 7 AVENUE INITIATED BY: CITY ADMINISTRATION REDEVELOPMENT AUTHORITY RECOMMENDATION: Approved WHEREAS, the Redevelopment Authority approved of the Determination of th Necessity to Acquire Property at 43 E. 7 Avenue with actual acquisition occurring in 3 years; and WHEREAS, CHAMCO will acquire this property and then will lease the property to H&M Commercial a/k/a AD Inc., and CHAMCO will borrow $780,000 on a promissory note for leasehold improvements with H&M to pay for these improvements as part of their overall lease payments to CHAMCO; and WHEREAS, CHAMCO’s purchase is predicated on the RDA/City purchasing the property in 3 years, with the exact time frame depending upon the RDA’s need for the property for redevelopment activities in the South Shore Redevelopment Area; and WHEREAS, the City’s Downtown Action Plan identified redevelopment programming in the area south of the Fox River along Pioneer Drive as a key project the City should pursue in the revitalization of downtown Oshkosh and the property at 43 E. th 7 Avenue is within the area where this redevelopment programming should occur. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh, that the proper City officials are authorized and directed to enter into an appropriate agreement for the above purpose, and to take those steps necessary to implement the terms and conditions of the agreement, which contains the following provisions: 1. The purchase price is $780,000. 2. RDA acquisition and closing will occur within 3 years, but no later than August 1, 2017. 3. The RDA is responsible for all closing costs. 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 Approved by the Wisconsin Real Estate Examining Board 03 -1 -12 (Optional Use Date) 07 -1 -12 ((Mandatory Use Bate) WB- t5 COMMERCIAL OFFER TO PURCHASE Page 1 of 9, WB -15 LICENSEE DRAFTING THIS OFFER ON August 14,.2014 [DATE) IS (AQ kiS R) (AGENT OF SELLEWLISTING BROKER) (AL#iN 9MWAND&EtEER) I STRIKE THOSE NOT APPLICABLE GENERAL PROVISIONS IlThe Buyer, The City of Oshkosh offers to purchase the Property known as IStreet Address) 43 E. 7th Avenue in the Citv of Oshkosh County of Winnebago Wisconsin (insert additional description, if any, at lines 109 -115 or 277 -286 or attach as an addendum per line 479), on the following terms: v PURCHASE PRICE: Seven Hundred Eighty Thousand and no1100 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Dollars ($ Z80.000.00 ), z EARNEST MONEY of $ NA accompanies this Offer and earnest money of $ NA will be mailed, or- commorcially or personally delivered within NA days of acceptance to listing broker or THEBALANCE OF PURCHASE PRICE will be paid in cash or equivalent at closing unless otherwise provided below. INCLUDED IN PURCHASE PRICE: Seller is including in the purchase price the Property, all Fixtures on the Property on the date of this Offer not excluded at sines 20 -22, and the following additional items: NA o All personal property included In purchase price will be transferred by bill of sale or NA NOT INCLUDED IN PURCHASE PRICE: NA CAUTION: Identify trade fixtures owned by tenant, if applicable, and Fixtures that are on the Property (see lines 303.310) to be excluded by Seller orwhich are rented and will continue to be owned by the lessor. NOTE: The terms of this Offer, not the listing contract or marketing materials, determine what items are included /excluded. ACCEPTANCE Acceptance occurs when all Buyers and Sellers have signed one copy of the Offer, or separate but identloal copies of the Offer. CAUTION: Deadlines in the Offer are commonly calculated from acceptance. Consider whether short term deadlines running from acceptance provide adequate time forbDb binding acceptance and performance. BINDING ACCEPTANCE This Offer is binding upon both Parties only if a copy of the accepted Offer Is delivered to Buyer on or before August 14, 2014 _ _ . Seller may keep the Property on the market and accept secondary offers after binding acceptance of this Offer, CAUTION: This Offer may be withdrawn prior to delivery of the accepted Offer. OPTIONAL PROVISIONS TERMS OF THIS OFFER THAT ARE PRECEDED BY AN OPEN BOX ( ❑) ARE PART OF THIS OFFER ONLY IF THE BOX IS MARKED SUCH AS WITH AN "X." THEY ARE NOT PART OF THIS OFFER IF MARKED "NIA" OR ARE LEFT BLANK. DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Offer, delivery of documents and written notices to a Party shall be effective only when accomplished by one of the methods specified at lines 37 -54, (1) Personal Delivery: giving the document or written notice personally to the Party, or the Party's recipient for delivery if named at line 38 or 39, Seller's recipient for delivery (optional): Uzaheth A. Hartman. Demosev Law Firm, 1 Pearl Ave. Suite 300, Oshkosh. Wl B er's recipient for delivery (optional): Lynn Lorenson, City of Oshkosh 215 Church Ave Oshkosh, Wi (2) En fax transmission of the document or written notice to the following telephone number: Seller: ( ) Buyer: ( - ) 0 (3) Commercial Delivery, depositing the document or written notice fees prepaid or charged to an account with a commercial delivery service, addressed either to the Party, or to the Party's recipient for delivery if named at line 38 or 39, for delivery to the Party's delivery address at line 47 or 48. = (4) U3, -M! depositing the document or written notice postage prepaid In the U.S. Mail, addressed either to the Party, or to the Party's recipient for delivery if named at line 38 or 39, for delivery to the Party's delivery address at line 47 or 48. Delivery address for Seller: Delivery address for Buyer: = (5)plail: electronically transmitting the document or written notice to the Party's e -mail address, if given below at line 53 or 54. If this is a consumer transaction where the property being purchased or the sale proceeds are used primarily for personal, family or household purposes, each consumer providing an e -mail address below has first consented electronically to the use of electronic documents, e -mail delivery and electronic signatures in the transaction, as required by federal law, E -Mail address for Seller (optional): eah@dempseylaw.com address for Buyer (optional): LLor9nson@ci.oshkosh.wi.us PERSONAL.DELIVERYIACTUAL RECEIPT Personal delivery to, or Actual Receipt by, any named Buyer or Seller constitutes personal delivery to, or Actual Receipt by, all Buyers or Soilers, 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 86 86 87 88 89 90 91 92 93 94 95 96 97 88 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 Page 2 of 9, WB -15 PROPERTY CQNAITION REPRESENTATIONS Sailor represents to Buyer that as of the date of acceptance Seiler has no notice or knowledge of Conditions Affecting the Property or Transaction (lines 181 -215) other than those identified in Sellers disclosure report dated NA and Real Estate Condition Report, if applicable, dated NA which waslwere received by Buyer prior to Buyer signing this Offer and which islare made a part of this offer by reference COMPLETE DATES OR STRIKE AS APPLICABLE and NA INSERT CONDITIONS NOT.ALREADY INCLUDED IN THE DISCLOSURE OR CONDITION REPORTS . CAUTION: If the Property includes 1.4 dwelling units, a Real Estate Condition Report containing the disclosures provided in Wis. Stat. § 7 09.03 may be required. Excluded from this requirement are sales of property that has never been Inhabited, sales exempt from the real estate transfer fee, and sales by certain court - appointed fiduciaries, (for example, personal representatives who have never occupied the Property). Buyer may have rescission rights per Wis, Stat, §709,05. Ct QSING This transaction is to be closed no later than August 14, 2017 at the place selected by Seller, unless otherMse agreed by the Parties in writing. LOSING PROBATIONS The following items, if applicable, shall be prorated at closing, based upon date of closing values: real estate taxes, rents, prepaid insurance (if assumed), private and municipal charges, property owners association assessments, fuel and . nothing else CAUTION: Provide basis for utility charges, fuel or other prorations if date of closing value will not be used. Any income, taxes or expenses shall accrue to Seller, and be prorated at closing, through the day prior to closing. Real estate taxes shaft be prorated at closing based on [CHECK BOX FOR APPLICABLE PRORATION FORMULA]: 0 The net general real estate taxes for the preceding year, or the current year if available (Net general real estate taxes are defined as general property taxes after state tax credits and lottery credits are deducted) (NOTE: THIS CHOICE APPLIES IF NO BOX IS CHECKED) C] Current assessment times current mill rate (current means as of the date of closing) ® Sale price, multiplied by the municipality area -wide percent of fair market value used by the assessor In the prior year, or current year If known, multiplied by current mill rate (current means as of the date of closing) CAUTION: Buyer is informed that the actual real estate taxes for the year of closing. and subsequent years may be substantially different than .the amount used for proration especially in transactions Involving new construction, extensive rehabilitation, remodeling or area -wide reassessment. Buyer is encouraged to contact the local assessor regarding possible tax changes. [� Buyer and Sailor agree to re- prorate the real estate taxes, through the day prior to closing based upon the taxes on the actual tax bill for the year of closing, with Buyer and Seller each owing his or her pro -rata share, Buyer shall, within 5 days of receipt, forward a copy of the bill to the forwarding address Seiler agrees to provide at closing. The Parties shall re- prorato within 30 days of Buyer's receipt of the actual tax bill. Buyer and Seller agree that Is a post - closing obligation and is the responsibility of the Parties to complete, not the responsibility of the real estate brokers in this iransaclion. F0_C­C`0`P_A_N_C_Y1 Occupancy of the entire Property shall be given to Buyer at time of closing unless otherwise provided in this Offer at Imes 109 -115 or 277 -286 or in an addendum attached per lino 479. At time of Buyer's occupancy, Properly shall be in broom swept condition and free of all debris and personal property except for personal property belonging to current tenants, or than sold to Buyer or left with Buyer's consent. Occupancy shall be given subject to tenant's rights, if any. LEASED PROPERTY If Property Is currently leased and iease(s) extend beyond closing, Seller shall assign Sellers rights under said lease(s) and transfer all security deposits and prepaid rents thereunder to Buyer at closing. The terms of. the (written) (oral) STRIKE ONE lease(s), if any, are NA Insert additional terms, if any, at lines 109 -115 cr 277 -286 or attach as an addandum per line 479, ESTOPPEL LETTERS: Seller shall deliver to Buyer no later than I days before closing, estoppel letters dated within _ days before closing, from each non - residential tenant, confirming the lease term, rent installment amounts, amount of security deposit, and disclosing any defaults, claims or litigation with regard to the lease or tenancy, RENTAL WEATHERIZ TION This transaction (is) (Is<YM) STRIKE ONE exempt from Wisconsin Rental Weatherization Standards (VVis. Admin, Code Ch, SPS 367). If not exempt, (Buyer) (Seller) STRIKE ONE ( "Buyer if neither is stricken) shall be responsible for compliance, Including all costs, with Wisconsin Rental Weatherization Standards. If Sailor Is responsible for compliance, Seller shall provide a Certificate of Compliance at closing. TIME IS OF THE ESSENCE "Time Is of the Essence" as to: (1)Ci clix9casSe75t( (2) binding acceptance; (3) bU)N (4) date of closing; (5)A�{71i ID&IaMt ISTRIKEAS APPLICABLE and all other dates and Deadlines in this Offerexcept: n11th'119 else If "Tine is of the Essence" applies to a date or Deadline, failure to perform by the exact date or Deadline is a breach of contract. if 'Time is of the Essence" does not apply to a date or Deadline, then performance within a reasonable time of the date or Deadline is allowed before a breach occurs. ADDITIONAL PROVISIONSICONTINGENCIES Property Address: 43 E. 7th Ave, Oshkosh, W! _ _ Page 3 of 9, WB -15 116 = PROPOSED USE CONTINGENCIES: Buyer is purchasing the Property for the purpose of: 117 118 [insert proposed use and type and size of building, if applicable; e.g.. 119 restaurant/tavern with capacity of 350 and 3 second floor dwelling units], The optional provisions checked on lines 123 -139 shall be deemed 120 satisfied unless Buyer delivers to Seller by the deadlines) set forth on lines 123 -139 written notice specifying, those items which cannot be 121 satisfied and written evidence substantiating why each specific item included in, Buyer's notice cannot be satisfied. Upon delivery of Buyer's notice, 122 this Offer shall be null and void. Seller agrees to cooperate with Buyer as necessary to satisfy the contingencies checked at lines 123 -139, 123 ❑ EASEMENTS AND RESTRICTIONS: This Offer is contingent upon Buyer obtaining, within days of acceptance, at 124 (Buyer's) (Seller's) I STRIKE ONE ( "Buyer's" if neither is stricken) expense, copies of all public and private easements, covenants and 125 restrictions affecting the Property and a written determination by a qualified independent third party that none of these prohibit or significantly 126 delay or Increase the costs of the proposed use or development identified at lines 116 to 118. 127 ❑ APPROVALS: This Offer is contingent upon Buyer obtaining, at (Buyer's) (Seller's) STRIKE ONE ( "Buyer's" if neither is stricken) expense, 128 all applicable governmental permits, approvals and licenses, as necessary and appropriate, or the final discretionary action by the granting 129 authority prior to the issuance of such permits, approvals and licenses, for the following items related to Buyer's proposed use: 130 131 or delivering written notice to Seller if the Item(s) cannot be obtained or can only be obtained subject to conditions which significantly increase 132 the cost of Buyer's proposed use, all within days of acceptance of this Off or. 133 ❑ ACCESS TO PROP- ERTY: This Offer is contingent upon Buyer obtaining, within days of acceptance, at (Buyer's) (Seller's) 134 STRIKE ONE ( "Buyer's" If neither is stricken) expense, written verlfication that there is legal vehicular access to the Property from public roads, 135 ❑ LAK JUSE ,APPROVAL: This Offer is contingent upon Buyer obtaining, at (Buyer's) (Seller's) STRIKE ONE ( "Buyer's" if neither is stricken) 136 expense, a ❑ rezoning; © conditional use permit; ❑ license; ❑ variance; ❑ buildin ermit: © occupancy permit; ❑ other 137 1 CHECK ALL THAT APPLY I , for the Property for its proposed use described 138 at lines 116 -118 or delivering written notice to Seller if the item(s) cannot be obtained or can only be obtained subject to conditions which 139 significantly increase the cost of Buyer's proposed use, all within days of acceptance, 140 =MAP OF THE PROPERTY: This Offer Is contingent upon (Buyer obtaining) (Seller providing) STRIKE ONE ( "Seiler providing" if neither is 141 stricken) a survey (ALTAIACSM Land Title Survey If survey typo is not 142 specified) dated subsequent to the date of acce lance of this Offer and prepared by a registered land surveyor, within _._. _. _.._.... . _ _ days of 143 acceptance, at (Buyer's) (Sellers) STRIKE ONE ( "Seller's" if neither is stricken) expense. The map shall show minimum of acres, 144 maximum of acres, the legal description of the Property, the Property's boundaries and dimensions, visible encroachments upon 145 the Prop". the location of Improvements, if any, and: 146 5TRlKE AND COMPLETE AS APPLICABLE I Additional map features 147 which may be added include, but are not limited to: staking of all corners of the Property; identifying dedicated and apparent streets; lot 148 dimensions; total acreage or square footage; utility installations; easements or rights -of -way. Such survey shall be in satisfactory, form and 149 accompanied by any required surveyor's certificate sufficient to enable Buyer to obtain removal of the standard survey exception on the title policy. 150 CAUTION: Consider the cost and the need for map features before selecting them. Also consider the time required to obtain the map 151 when setting the deadline. 152 This contingency shall be deemed satisfied unless Buyer, within five (5) days of the earlier of: (1) Buyer's receipt of the map; or (2) the deadline for 153 delivery of said map, delivers to Seller a copy of the map and a written notice which identifies: (1) a significant encroachment; (2) information 154 materially Inconsistent with prior representations; (3) failure to meet requirements stated within this contingency; or . (4) the existence of conditions 155 that would prohibit the Buyer's intended use of the Property described at lines 116 -118. Upon delivery of Buyer's notice, this Offer shall be null and 156 void. 157 = DOCUMENT REVIEW CONTINGENCY: This Offer is contingent upon Seller delivering the fallowing documents to Buyer within 158 days of acceptance: I CHECK THOSE THAT APPLY; STRIKE AS APPROPRIATE 159 ❑ Documents evidencing that the sale of the Property has been properly authorized, if Soller is a business entity, 160 ❑ A complete inventory of all furniture, fixtures, equipment and other personal property included In this transaction which is consistent with 161 representations made prior to and in this Offer, 162 0 Uniform Commercial Code lien search as to the personal property included in the purchase price, showing the Property to be free and clear 163 of all liens, other than liens to be released prior to or at closing. 154 ❑ Rent roll. 165 ❑ Other 166 167 Additional Items which may be added include, but are not limited to: building, construction or component warranties, previous environmental site 168 assessments, surveys, title commitments and policies, maintenance agreements, other contracts relating to the Property, existing permits and 169 licenses, recent financial operating statements, current and future rental agreements, notices of termination -and non- renewal, and assessment 170 notices. 171 All documents Seller delivers to Buyer shall be true, accurate, current and complete. Buyer shalt keep all such documents confidential and 172 disclose them to third parties only to the extent necessary to implement other provisions of this Offer. Buyer shall return all documents (originals 173 and any reproductions) to Seller if this Offer is terminated. 174 m CONTINGENCY SATISFACTION: This contingency shall be deemed satisfied unless Buyer, within days of the earlier of 175 receipt of the final document to be delivered or the deadline for delivery of the documents, delivers to Seller a written notice Indicating that this Page 4 of 9, WB -15 176 contingency has not been satisfied. Such notice shall identify which document(s) have not been timely delivered or do not meet the standard set 177 forth for the document(s). Upon delivery of such notice, this Offer shalt be null and void. 178 DEFIN €TIONS 479 rs ACTUAL _REQFIPT; "Actual Receipt" means that a Party, not the Party's recipient for delivery, if any, has the document or written notice 180 physically in the Party's possession,. regardless of the method of delivery. 181 s C ONDfTIONS AFFECTING THE PROPFRTY OR TRANSACTION: "Conditions Affecting the Property or Transaction" are defined to include: 182 a. Defects in structural components, e.g, roof, foundation, basement or other walls. 183 b. Defects in mechanical systems, e.g. HVAC, electrical, plumbing, septic, well, fire safety, security or lighting. 184 c. Underground or aboveground storage tanks presently or previously on the Property for storage of flammable or combustible liquids, including 185 but not limited to gasoline and heating oil. 186 d. Defect or contamination caused by unsafe concentrations of, or unsafe conditions relatfng to, lead pains, asbestos, radon, radium In water 187 supplies, mold, pesticides or other potentially hazardous or toxic substances on the premises. 168 e. Production of or spillage of methamphetamine (meth) or other hazardous or toxic substances on the Property. 189 f. Zoning or building code violations; any land division involving the Property for which required state or local permits had not been obtained, 190 nonconforming structures or uses, conservation easements, rights•cf -way, 181 g. Special purpose district, such as a drainage district, lake district, sanitary district or sewer district, that has the authority to impose 192 _ assessments against the real property located within the district. 133 h. Proposed, pianned or commenced public improvements which may result in special assessments or otherwise materially affect the Property 194 or the present use of the Property, 195 1. Federal, state or local regulations requiring repairs, alterations or corrections of an existing condition. 196 j, Flooding, standing water, drainage problems or other water problems on or affecting the Property. 197 k. Material damage from tire, wind, floods, earthquake, expansive soils, erosion or landslides. 198 I. Near airports, freeways, railroads or landfills, or significant odor, noise, water intrusion or other irritants emanating from neighboring properly. 199 m. Portion of the Property In a Iloodplain, wetland or shoreland zon {ng area under local, state or federal regulations. 200 n. Property is subject to a mitigation plan required under administrative rules of the Dopartment of Natural Resources related to county 201 shoreland zoning ordinances, which obligates the owner of the Property to establish or maintain certain measures related to shoreland 202 conditions and which Is enforceable by the county. 203 o. Encroachments; easements, other than recorded utility easements; access restrictions; covenants, conditions and restrictions; shared 204 fences, wails, wells, driveways, signage or other shared usages; or leased parking. 205 p. High voltage electric (100 KV or greater) or steel natural gas transmission lines located on but not directly serving the Property. 206 q, Structure on the Property designated as a historic building, any part of the Property located in a historic district, or burial sites or 207 archeological artifacts on the Property. 209 r. All or part of the land has been assessed as agricultural land, the owner has boon assessed a use -value conversion charge or the payment 209 of a use -value conversion charge has been deferred. 210 s. All or, part of the Property is subject to, enrolled in or in violation of a certified farmland preservation zoning district or a farmland preservation 211 agreement, or a Forest Crop, Managed Forest (see disclosure requirements in Wis. Sla(. § 710,12), Conservation Reserve - or comparable 212 program. 213 L A pier is attached to the Proper# that is not In compliance with state or local pier regulations. 214 u. Government investigation or private assessment/audit (of environmental matters) conducted, 215 v. Other Defects affecting the Properly, 216 Y DEADLINES; "Deadlines" expressed as a number of "days" from an event, such as acceptance, are calculated by excluding the day the event 217 occurred and by counting subsequent calendar days. The deadline expires at midnight on the last day. Deadlines expressed as a specific number 218 of "business days" exclude Saturdays, Sundays, any legal public holiday under Wisconsin or Federal law, and other day designated by the 218 President such that the postal service does not receive registered mall or make regular deliveries on that day. Deadlines expressed as a specific 220 number of "hours" from the occurrence of an event, such as receipt of a notice, are calculated from the exact time of the event, and by counting 24 221 hours per calendar day. Deadlines expressed as a specific day of the calendar year or as the day of a specific event, such as closing, expire at 222 midnight of that day. 223 N DEFECT; "Defect" means a condition that would have a significant adverse effect on the value of the Property; that would significantly impair 224 the health or safety of future occupants of the Property; or that if not repaired, removed or replaced would significantly shorten or adversely affect 225 the expected normal life of the premises. 226 (Definitions Continued on page 6) Property Address, 43 E. 7th Ave, Oshkosh, WI Page 5 of 9, WB -15 227 IF LINE 228 IS NOT MARKED OR IS MARKED NIA LINES 264 -269 APPLY. 229 = FINANCING CONTINGENCY: This Offer is contingent upon Buyer being able to obtain a written 229 [INSERT LOAN PROGRAM OR SOURCE] first mortgage loan commitment as described below, within days of acceptance of this 230 Offer. The financing selected shall be in an amount of not less than $ for a term of not less than years, 239 amortized over not less than years. Initial monthly payments of principal and interest shall not exceed $ . Monthly 232 payments may also include 1112th of the estimated net annual real estate taxes, hazard insurance premiums, and private mortgage insurance 233 premiums. The mortgage may not include a prepayment premium. Buyer agrees to pay discount points and /or loan criginatlon fee in an amount 234 not to exceed % of the loan. If the purchase price under this Offer is modified, the financed amount, unless otherwise provided, shall 235 be adjusted to the same percentage of the purchase price as in this contingency and the monthly payments shall be adjusted as necessary to 236 maintain the term and amortization stated above. 237 CHECK AND COMPLETE APPLICABLE FINANCING PROVISION AT LINE 238 or 239, 238 ❑ FIXED RATE FINANCING: The annual rate of interest snail not exceed %. 239 D ADJUSTABLE RATE FINANCING: The initial annual interest rate shall not exceed %. The initial interest rate shall be 240 fixed for months, at which tfine the interest rate may be increased not more than % per year. The maximum 241 interest rate during the mortgage term shall not exceed %. Monthly payments of principal and interest may be adjusted lo 242 reflect Interest changes 243 If Buyer Is using multiple loan sources or obtaining a construction loan or land contract financing, describe at lines 109.115 or 277.286 244 or in an addendum attached per line 479. 245 NOTE: if purchase is conditioned on buyer obtaining financing for operations or development consider adding a contingency for that 246 purpose. 247 a BUYER'S IM ,CO ITMENT: Buyer agrees to pay all customary loan and closing costs, to promptly apply for a mortgage loan, and to 248 provfde evidence of application promptly upon request of Seiler. If Buyer qualifies for the loan described in this Offer or another loan acceptable to 249 Buyer, Buyer agrees to deliver to Seller a copy of the written loan commitment no later than the deadllne at line 229. Buyer and Seller agree that 250 delivery of a copy of any written loan commitment to Seller (even if subject to conditions) shalt satisfy Buyer's financing contingency if, 251 after review of the loan commitment, Buyer has directed, In writing, dofivery of the loan commitment. Buyer's written direction shall 252 accompany the loan commitment. Delivery shall not satisfy this contingency if accompanied by a notice of unacceptability. 253 CAUTION: The delivered commitment may contain conditions Buyer must yet satisfy to obligate the lender to provide the loan. BUYER, 254 BUYER'S LENDER AND AGENTS OF BUYER OR SELLER SHALL NOT DELIVER A LOAN COMMITMENT TO SELLER OR SELLER'S 255 AGENT WITHOUT BUYER'S PRIOR WRITTEN APPROVAL OR UNLESS ACCOMPANIED BYA NOTICE OF UNACCEPTABILITY. 256 .m SELLER ER TERMINATION RIGHTS: If Buyer does not make timely delivery of said commitment; Seller may terminate this Offer if Seller delivers 257 a written notice of termination to Buyer prior to Seller's Actual Receipt of a copy of Buyer's written loan commitment. 258 ® FINANCING MAILABILITY: If financing is not available on the terms stated in this Offer (and Buyer has not already delivered an 259 acceptable loan commitment for other financing to Seller), Buyer shall promptly deliver written - notice to Seller of same including copies of 260 lender(s)' rejection feiter(s) or other evidence of unavaifabil' €ty. Uniess a specific loan source is named in this Offer, Seller shall then have 10 days 261 to deliver to Buyer written notice of Seller's decision to finance this transaction on the same terms set forth in this Offer, and this Offer shall remain 252 in full force and effect, with the time for closing extended accordingly. If Sellers notice is not timely given, this Offer shall be null and void. Buyer 263 authorizes Seller to obtain any credit information reasonably appropriate to determine Buyers credit worthinoss for Seller financing. 264 .s THIS QFFER -a-KU CONTINGENT ON FINANCING: Within 7 days of acceptance, a ilnancial institution or third party in control of Buyer's 265 funds shall provide Seller with reasonable written verification that Buyer has, at the time of verification, sufficient. funds to close. If such written 266 verification is not provided, Seller has the right to terminate this Oiler by delivering written notice to Buyer. Buyer may or may not obtain mortgage 267 financing but does not need the protection of a financing contingency. Seiler agrees to allow Buyer's appraiser access to the Property for 258 purposes of an appraisal. Buyer understands and agrees that this Offer is not subject to the appraisal meeting any particular value, unless this 269 Offer is subject to an appraisal contingency, nor does the right of access for an appraisal constitute a financing contingency, 270 Q APPRAISAL CONTINGENCY: This Offer is contingent upon the Buyer or Buyer's lender having the Property appraised at Buyer's expense 271 by a Wisconsin licensed or certified independent appraiser who issues an appraisal rogort dated subsequent to the date of this Offer Indicating an 272 appraised value for the Property equal to or greater than the agreed upon purchase price. This contingency shall be deemed satisfied unless 273 Buyer, within days of acceptance, delivers to Seller a copy of the appraisal report which indicates that the appraised,value is not 274 equal to or greater than the agreed upon purchase price, accompanied by a written notice of terminatlon. 275 CAUTION: An appraisal ordered by Buyer's tender may not be received until shortly before closing. Consider whether deadlines provide 276 adequate time for performance, 277 i]DITIONAL PROVISIONSICONTINGENClE 278 279 280 261 262 283 284 285 286 -q Page 6 of 9, WB -15 287 DEFINITIONS CONTINUED FROtYI PAGE 4 288 m ENVIRONMENTAL _$a ASSESSMENT; An "Environmental Site Assessment" (also known as a "Phase I Site Assessment ") (see lines 379 -395) 289 may include, but is not limited to: (1) an inspection of the Property; (2) a rovtew of the ownership and use history of the Property, including a 290 search of title records showing private ownership of the Property for a period of 80 years prior to the visual inspoction; (3) a review of historic and 291 recent aerial photographs of the Property, if available; (4) a review of environmental licenses, permits or orders issued with respect to the Property 292 (5) an evaluation of results of any environmental sampling and analysis that has been conducted on the Property; and (6) a review to determine if 293 the Properly is listed in any of the written compilations of sites or facilities considered to pose a threat to human health or the environment 294 including the National Priorities List, the Department of Nature Resources' (DNR) Registry of Waste Disposal Sites, the DNR's Contaminated 295 Lands Environmental Action Network, and the DNR's Remodiation and Redevelopment (RR) Sites Map including the Geographical Information 296 System (GIS) Registry and related resources. Any Environmental Site Assessment performed under this Offer shall comply with generally 297 recognized industry standards (e,g, currentAmerican Society of Testing and Materials "Standard Practice for Environmental Site Assesments "), 298 and state and federal guidelines, as applicable. 299 CAUTION: Unless otherwise agreed an Environmental Site Assessment does not include subsurface testing of the soil or groundwater 300 or other testing of the Property for environmental pollution. If further investigation is required, insert provisions for a Phase it Site 301 Assessment (collection and analysis of samples), Phase III Environmental Site Assessment (evaluation of remediation alternatives) or 302 other site evaluation at lines 109.115 or 277 -286 or attach as an addendum per line 479. 303 m FIXTURE: A "Fixture" is an, Item of property which is physically attached to or so closely associated with land or improvements so as to be 304 treated as part of the real estate, including, without limitation, physically attached Items not easily removable without damage to the premises, 305 items specifically adapted to the promises and items customarily treated as fixtures, including, but not limited to, all: garden bulbs; plants; shrubs 306 and trees; screen and storm doors and windows; electric lighting fixtures; window shades; curtain and traverse rods; blinds and shutters; central 307 heating and cooling units and attached equipment; water hoaters and treatment systems; sump pumps; attached or fitted floor coverings; awnings; 308 attached antennas; garage door openers and remote controls; installed security systems; central vacuum systems and accossodes; in- ground 309 sprinkler systems and component parts; built -in appliances; oeling fans; fences; storage buildings on permanent foundations and docks /piers on 310 permanent foundations. A Fixture does not include trade fixtures owned by tenants of the Property. 311 CAUTION: Exclude Fixtures not awned by Seller such as rented fixtures. See lines 20.22. 312 a PROPERTY: Unless otherwise stated, "Properly" means the real estate described at lines 4 -7. 313 DISTRIBUTION OF iNF017kiATION I Buyer and Seller authorize the agents of Buyer and Seller to: (i) distribute copies of the Offer to Buyer's 314 lender, appraisers, fide Insurance companies and any other settlement service providers for the transaction as defined by the Real Estate 315 Settiement Procedures Act (RESPA); (ii) report sales and financing concession data to multiple listing service sold databases; and (iii) provide 316 active listing, pending sale, closed sale and financing concession information and data, and related information regarding seller contributions, 317 Incentives or assistance, and third party gifts, to appraisers researching comparable sales, market condltlons and listings, upon inquiry. 318 EAf2NE5f MONEY 319 ® HELD Ly: Unless otherwise agreed, earnest money shall be paid to and held in the trust account of the listing broker (Buyer's agent if Property 320 Is not listed or Seller's account if no broker is involved), until applied to purchase price or otherwise disbursed as provided in the Offer. 321 CAUTION: Should persons other than a broker hold earnest money, an escrow agreement should be drafted by the Parties or an 322 attorney, if someone otherthan Buyer makes payment of earnest money, consider a special disbursement agreement. 323 ' DISBURSEMENT: If negotiations do not result in an accepted offer, the earnest money shall be promptly disbursed (after clearance from 324 payer's doposltory institution if earnest money is paid by check) to the person(s) who paid the earnest money. At closing, earnest money shall be 325 disbursed according to the closing statement. If this Offer does not close, the earnest money shall be disbursed according to a written 326 disbursement agreement signed by all Parties to this Offer. If said disbursement agreement has not been delivered to broker within 60 days after 327 the date set for ciosing, broker may disburse the earnest money: (1) as directed by an attorney who has reviewed the transaction and does not 328 represent Buyer or Seller; (2) into a court hearing a lawsuit involving the earnest money and all Parfles to this Offer; (3) as directed by court order; 329 or .(4) any other disbursement required or allowed by law. Broker may retain legal services to direct disbursement per (1) or to file an interpleader 930 action per (2) and broker may deduct from the earnest money any costs and reasonable attorneys fees, not to exceed $250, prior to 331 disbursement. 332 a LEGAL RfGHTS1ACTION: Broker's disbursement of earnest money does not determine the legal rights of the Parties In relation to this Offer. 333 Buyer's or Sellers legal right to earnest money cannot be determined by broker. At least 30 days prior to disbursement par (1) or (4) above, broker 334 shall send Buyer and Seller notice of the disbursement by certified mall. if Buyer or Seller disagree with broker's proposed disbursement, a lawsuit 335 may be filed to obtain a court order regarding disbursement. Small Claims Court has jurisdiction over all earnest money disputes arising out of the 336 sale of residential properly with 1 -4 dwelling units and certain other earnest money disputes. Buyer and Seller should consider consulting 337 attorneys regarding their legal rights under this Offer in case of a dispute. Both Parties agree to hold the broker harmless from any liability for good 338 faith disbursement of earnest money in accordance with this Offer or applicable Department of Safety and Professional Services regulations 339 concerning earnest money. See Wis, Admin. Code Ch, REEB 18. Property Address: 43 E 71h Ave, Oshkosh, WI Page 7 of 9, W8 -15 340 1 TITLE EVIDENCE 341 0 OLLV- FYANCE M TITLE; Upon payment of the purchase price, Seller, shalt convey the Property by warranty deed (trustee's deed if 342 Seller is a trust, personal representative's deed if Seller is an estate or other conveyance as provided herein) free and clear of all liens and 343 encumbrances, except: municipal and zoning ordinances and agreements entered under them, recorded easements for the distribution of utility 344 and municipal services, recorded building and use restrictions and covenants, present uses of the Property in violation of the foregoing disclosed 345 in Seller's disclosure report, and Real Estate Condition Report, if applicable, and in this Offer, general taxes levied in the year of closing and 346 nothing else 347 348 which constitutes merchantable title for purposes of this transaction. Seller shall complete and execute the documents 349 necessary to record the conveyance at Seller's cost and pay the Wisconsin Reai Estate Transfer Fee. '350 WARNING: Municipal and zoning ordinances, recorded building and use restrictions, covenants and easements may prohibit certain 351 improvements or uses and therefore should be reviewed, particularly if Buyer contemplates making Improvements to Property or a use 352 other than the current use. 353 m TITLE EVIDENCE: Seller shall.give evidence of title in the form of an owners policy of title insurance In the amount of the purchase price on a 354 current ALTA form issued by an insurer licensed to write title insurance fn Wisconsin. Seller shall pay all costs of providing title evidence to Buyer. 355 Buyer shall pay all costs of providing title evidence required by Buyer's lender, 356 im GAP ENDMEEMENI Seller shall provide a "gap" endorsement or equlvalent gap coverage at (Seller's) (Buyer's) STRIKE ONE ( "Seller's" if 357 neither stricken) cost to provide coverage for any liens or encumbrances first filed or recorded after the effective date of the title insurance 358 commitment and before the deed is recorded, subject to the title insurance policy exclusions and exceptions, provided the title company will issue 359 the endorsement. If a gap endorsement or equivalent gap coverage is not available. Buyer may give written notice that title is not acceptable for 360 closing (see lines 365 -371). 361 A PROV151QN —QE _MESCHANTABLE JEL.F: For purposes of closing, title evidence shall be acceptable if the required title insurance 362 commitment is delivered to Buyer's attorney or Buyer not more than 1064 1 days after acceptance ( "15" ff left blank), showing title to the 363 Property as of a date no more than 15 days before delivery of such title evidence to be merchantable per lines 341 -348, subject only to liens which 364 will be paid out of the proceeds of closing and standard title insurance requirements and exceptions, as appropriate. 365 = TITLE M ACCEPTAK -FOR ,CLOSING; If title is not acceptable for closing, Buyer shall notify Seller in writing of objections to title within 366 5 days ( "15" if left blank) after delivery of the title commitment to Buyer or Buyer's attorney. In such event, Seller shall have a 367 reasonable time, but not exceeding 5 days ( "5" if left blank), from Buyer's delivery of the notice stating title objections, to deliver 368 notice to Buyer stating Seller's election to remove the objections by the time set for closing. In the event that Seller Is unable to remove said 369 objections, Buyer may deliver to Seller written notice waiving the objections, and the time for closing shall be extended accordingly. If Buyer does 370 not waive the objections, Buyer shall deliver written notice of termination and this Offer shall be null and void. Providing title evidence acceptable 371 for closing does not extinguish Seller's obligatlons to glve merchantable title to Buyer. 372 im SPECIAL A53ESSMENTSLOTHER EX2ENSE1 Special assessments, if any, levied or for work actually commenced prior to the date of this 373 Offer shall be paid by Seller no later than closing. All other special assessments shaft be paid by Buyer. 374 CAUTION: Consider a special agreement if area assessments, property owners association assessments; special charges for current 375 services under Wis. Stat. § 66,0627 or other expenses are contem'plate'd. "Other expenses" are one -time charges or ongoing use fees 376 for public improvements (other than those resulting In special assessments) relating to curb, gutter, street, sidewalk, municipal water, 377 sanitary and storm water and storm sewer (including all sewer mains and hook- uploonnection and interceptor charges), parks, street 378 lighting and street trees, and impact fees for other public facilities, as defined in Wis. Stat. § 66.0617(1)(f). 379 ENVIRONMENTAL EVALUATION CONTINGENCY; This Offer is contingent upon a qualified independent environmental consultant of 380 Buyer's choice conducting an Environmental Site Assessment of the Property (see lines 288 -302), at (Buyer's) (Seller's) expense STRIKE ONE 381 ( "Buyer's" if neither is stricken), which discloses no Defects. For the purpose of this contingency, a Defect (see lines 223 -225) is defined to also 382 include a material violation of environmental laws, a material contingent liability affecting the Property arising under any environmental laws, the 383 presence of an underground storage tank(s) or material levels of hazardous substances either on the Property or presenting a significant risk of 384 contaminating the Property due to future migration from other properties. Defects do not include conditions the nature and extent of which Buyer 385 had actual knowledge or written notice before signing the Offer. 386 • CONTINGENCY SATISFACTION: This contingency shall be deemed satisfied unless Buyer, within days of acceptance, 387 delivers to Seller a copy of the Environmental Site Assessment report and a written notice ' listing the Defect(s) identified in the Environmental Site 388 Assessment report to which Buyer objects (Notice of Defects), 389 CAUTION: A proposed amendment is not a Notice of Defects and will not satisfy this notice requirement. 390 w RIGHT TO CURE: Seller (shall) (3W=ot) STRIKE ONE= ( "shall" If neither is stricken) have a right to cure the Defects. if Seller has the right to 391 cure, Seller may satisfy this contingency by: (1) delivering written notice to Buyer within 10 days of Buyer's delivery of the Notice of Defects stating 392 Sellers election to cure Defects, (2) curing the Defects in a goad and workmanlike manner and (3) delivering to Buyer a written report detailing the 393 work done within 3 days prior to closing. This Offer shall be null and void if Buyer makes timely delivery of the Notice of Defects and written 394 Environmental Site Assessment report and; (1) Seller does not have aright to cure or (2) Seller has a right to cure but: (a) Seller delivers written 395 notice that Seller.will not cure or (b) Seller does not timely deliver the written notice of election to cure. n Page 8 of 9, wB -1s 396 DEFAULT Seller and Buyer each have the legal duty to use good faith and due diligence in completing the terms and conditions of this Offer. A 397 material failure to perform any obligation under this Offer is a default which may subject the defaulting party to liability for damages or other legal 398 remedies. 399 If Buyerdefaults. Seller may: 400 (1) sue for specific performance and request the earnest money as partial payment of the purchase price; or 401 (2) terminate the Offer and have the option to; (a) request the earnest money as liquidated damages; or (b) sue for actual damages. 402 If Seller defaults, Buyer may: 403 (1) sue for specific performance; or 404 (2) terminate the Offer and request the return of the earnest money, sue for actual damages, or both. 405 In addition, the Parties may seek any other remedies available in law or equity. 406 The Parties understand that the availability of any judicial remedy will depend upon the circumstances of the situation and the discretion of the 407 courts. It either Party defaults, the Parties may renegotiate the Offer or seek nonjudicial dispute resolution instead of the remedies outlined above. 408 By agreeing to binding arbitration, the Parties may lose the right to litigate in a court of law those disputes covered by the arbitration agreement, 409 NOTE: IF ACCEPTED, THIS OFFER CAN CREATE A LEGALLY ENFORCEABLE CONTRACT. BOTH PARTIES SHOULD READ THIS 410 DOCUMENT CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION OE THE PROVISIONS OF THE OFFER BUT ARE 411 PROHIBITED BY LAW FROM GIVING ADVICE OR OPINIONS CONCERNING YOUR LEGAL RIGHTS UNDER THIS OFFER OR HOW TITLE 412 SHOULD BE TAKEN AT CLOSING. AN ATTORNEY SHOULD BE CONSULTED IF LEGAL ADVICE IS NEEDED. 413 JENTIRE CONTRACT This Offer, Including any amendments to it, contains the entire agreement of the Buyer and Seller regarding the 414 transaction. All prior negotiations and discussions have been merged into this Offer. This agreement binds and inures to the benefit of the Partlas 415 to this Offer and their successors in interest. 416 1PROPERTY DIMENSIONS AND SURVEYS Buyer acknowledges that any land, building or roam dimensions, or total acreage or building square 417 footage figures, provided to Buyer by Seller or by a broker, may be approximate because of rounding, formulas used or other reasons, unless 418 verified by survey or other means, 419 CAUTION: Buyer should verify total square footage or acreage figures and [and, building or room dimensions, if material to Buyer's 420 decision to purchase, 421 BUYER'S PRE - CLOSING WALK - THROUGH Within 3 days prior to closing, at a reasonable time pre - approved by Sellar or Seller's agent, Buyer 422 shall have the right to walk through the Properly to determine that there has been no significant change In the condition of the Property, except for 423 ordinary wear and tear and changes approved by Buyer, and that any Defects Seller has agreed to cure have been repaired in the manner agreed 424 to by the Parties, 425 1PROPERTY DAMAGE BETWEEN ACCEPTANCE AN R CLOSING Seller shall maintain the Prop" until the earlier of closing or occupancy of 428 Buyer in materially the same condition as of the date of acceptance of this Offer, except for ordinary wear and tear. If, prior to closing, the Property 427 is damaged in an amount of not more than five percent (5 %) of the selling price, Seller shall be obligated to repair the Property and restere it to 428 the same condition that it was on the day of this Offer, No later than closing, Seller shall provide Buyer with lien waivers for all Ilenable repairs and 429 restoration. If the damage shall exceed such sum, Seller shall promptly notify Buyer in wrlEng of the damage and this Offer may be canceled at 430 option of Buyer. Should Buyer elect to carry out this Offer despite such damage, Buyer shall be entitled to the insurance proceeds, if any, relating 431 to the damage to the Property, plus a credit towards the purchase price equal to the amount of Seller's deductible on such policy, if any. However, 432 if this sale Js financed by a land contract or a mortgage to Seller, any insurance proceeds shall be held in trust for .the sold purpose of restoring the 433 property. 434 INOTICE ABOUT SEX OFFENDER REGISTRYI You may obtain information about the sex offender registry and persons registered with the 435 registry by contacting the Wisconsin Department of Corrections on the Internet at hI1p:Uwww.widocaffenders.ora or by telephone at 436 (608)24C -5830, 437 JINSPECTIONS AND TESTING1 Buyer may only conduct inspections or tests if specific contingencies are included as a part of this Offer. An 438 "inspection" is defined as an observation of the Property which does not include an appraisal or testing of the Property, other than testing for 439 leaking carbon monoxide, or testing for leaking LP gas or natural gas used as a fuel source, which are hereby authorized. A "test" is defined as 440 the taking of samples of materials such as soils, water, air or building materials from the Property and the laboratory or other analysis of these 441 materials. Seller agrees to ailow Buyer's Inspectors, testers, appraisers and qualified third parties reasonable access to the Property upon 442 advance notice, if necessary to satisfy the contingencies in this Offer. Buyer and licensees may be present at all inspections and testing. Except 443 as otherwise provided, Seller's authorization for inspections does not authorize Buyer to conduct testing of the Property. 444 NOTE: Any contingency authorizing testing should specify the areas of the Property to be tested, the purpose of the test, {e.g., to 445 determine if environmental contamination Is present), any limitations on Buyer's testing and any other material terms of the 446 contingency. 447 Buyer agrees to promptly restore the Property to its original condition after Buyer's Jnspectlons and testing are completed unless otherwise agreed 448 to with Seller. Buyer agrees to promptly provide copies of all Inspection and testing reports to Seller, Seller acknowledges that certain inspections 449 or tests may detect environmental pollution which may be required to be reported to the Wisconsin Department of Natural Resources. it 450 451 452 453 454 455 456 457 458 459 460 461 452 463 464 465 466 467 468 488 470 471 472 473 474 475 47B 477 478 479 480 481 Property Address: 43 E. 7th Ave, Oshkosh, WI Page 9 of 9, W13-15 = INSPECTION CONTINGENCY: This contingency only authorizes inspections, not tasting (see lines 437449). This Oiler is contingent upon a qualified independent inspector(s) conducting an inspection(s) of the Property which discloses no Defects. This Offer is further contingent upon a qualified independent inspector or qualified independent third party performing an inspection of (list any Property feature(s) to be separately inspected, e.g,, dumpsite, etc,) which discloses no Defects. Buyer shall order the inspection(s) and be responsible for all costs of inspection(s). Buyer may have follow -up inspections recommended in a written report resulting from an authorized inspection performed provided they occur prior to the deadline specified at line 461. Each inspection shall be performed by a qualified independent inspector or qualified independent third party. CAUTION: Buyer should provide sufficient time for the primary inspection andfor any specialized lnspecticn(s), as well as any follow -up inspection(s). For the purpose of this contingency, Defects (see lines 223.225) do not include conditions the nature and extent of which Buyer had actual knowledge or written notice before signing the Offer. a CONTINGENCY SATISFACTION: This contingency shall be deemed satisfied unless Buyer, within days of acceptance, delivers to Soker a copy of the inspection report(s) and a written notice listing the Defect(s) identified fn the inspection reporl(s) to which Buyer objects (Notice of Defects). CAUTION: A proposed amendment is not a Notice of Defects and will not satisfy this notice requirement. m RIGHT TO CURE: Seller (shall)(shaI not) STRIKE ONE ("shall" if neither is stricken) have a right to cure the Defects, If Seller has the right to cure, Seller may satisfy this contingency by: (1) delivering written notice to Buyer within 10 days of Buyer's delivery of the Notice of Defects staling Sellers election to cure Defects, (2) curing the Defects in a good and workmanlike manner and (3) delivering to Buyer a written report detailing the work done within 3 days prior to closing. This Offer shall be null and void if Buyer makes timely delivery of the Notice of Defects and written Inspection report(s) and: (1) Seller does not have a right to cure or (2) Seller has a right to cure but: (a) Seller delivers written notice that Seller will not cure or (b) Seller does not timely deliver the written notice of election to cure. CLOSING OF BUYER'S PROPERTY CONTINGENCY: This Offer is contingent upon the closing of the sale of Buyer's properly located at no later than . If Seller accepts a bona fide secondary offer, Seller may give written notice to Buyer of acceptance. If Buyer does not deliver to Seller a written waiver of the Closing of Buyer's Property Contingency and [INSERT OTHER REQUIREMENTS, IF ANY (e.g., PAYMENT PROVIDING EVIDENCE OF SALE OR BRIDGE LOAN, etc.)] within null and void. ADDENDA: The attached Elizabeth A. Hartman, Dempsey Law Firm OF ADDITIONAL EARNEST MONEY, WAIVER OF ALL CONTINGENCIES, OR hours of Buyer's Actual Receipt of said notice, this Offer shall be This Offer was drafted by [Licensee and Firm] 482 Buyer Entity Name (if any): The City of Oshkosh 483 (X) 484 Buyer'slAuthorized Signature fk Print NamaMtle Here earl M on July 28, 2014 is/are made part of this Offer. Date 486 Buyer's/Authorized Signature i Print Namafiitle Here Date i 487 JEARNEST MONEY RECEIPTI Broker acknowledges receipt of earnest money as per line 10 of the above Offer, 488 469 490 491 492 Broker (By) — SELLER ACCEPTS THIS OFFER, THE WARRANTIES, REPRESENTATIONS AND AND THE CONVEYANCE OF THE PROPERTY. SELLER AGREES TO CONVEY SET FORTH HEREIN AND ACKNOWLEDGES RECEIPT OF A COPY OF THIS OFFER. Seller Entity Name (if any): Chamco, inc. 493 (X) 494 Seller'slAuthofted Signature A Print NamelTitie Here 495 (X) 496 Sellar'slAuthorized Signature A Print Name/Title Here .497 This Offer was presented to Seller by [Licensee and Firm] 498 on COVENANTS MADE IN THIS OFFER SURVIVE CLOSING THE PROPERTY ON THE TERMS AND CONDITIONS AS Date A Date A at a.mdp.m. 499 This Offer is This Offer is countered [See attached counter] 500 Seer Initials A Date A Seller Initials Date A 1:1GIS\GIS Base MaWP €annin9 Base 1 in = 0.02 mi 1 in =100ft Printing Date: 4111!2414 Preparers by: City of Oshkosh, VVi O- fHKO -fH ON THE WATER User. darienet OYHKOfH CIN THE WATER TO: Honorable Mayor and Members of the Common Council FROM: Allen Davis Community Development Director DATE: August 7, 2014 RE: Approve Agreement to Acquire Property at 43 East 7th Avenue Background The City of Oshkosh has been aiding in the redevelopment of the south shore for many years including the purchase of the Miles Kimball buildings on 8th and 9th, and the Boatworks property. The 1 E. 8th Avenue property was acquired for the purpose of redeveloping the Pioneer Drive area. The proposed property acquisition is similar to the earlier land acquisitions in the past. The City has identified the parcel at 43 E 7th Avenue as a future redevelopment site and land uses would change from Industrial to a mixture of Residential and Commercial. The City has also been extending the riverwalk along the Southshore and the redevelopment of the site is critical to the relocation of Pioneer Drive and the extension of the riverwalk. The site has been identified for redevelopment in the City's Comprehensive Plan, Tax Increment Finance District #20 and Southshore Redevelopment Plan. The Fox River Riverwalk Plan also closes Pioneer Drive and relocates access to 9th Ave. Commercial and Residential uses are planned for the property and neighborhood. The RDA has purchased and demolished the properties to the south at 1 E. 81h Ave. and spent over $1,500,000 on that site to date. No remediation has been done. There has been no development interest in the property due to surrounding industrial uses. The 1 E. 8th Ave. parcel is not linked to the future riverwalk with 43 E. 7th Ave. blocking the view and access to riverwalk. Consequently, the redevelopment of 1 E 8th Ave. seems to be dependent and predicated on redevelopment of 43 E. 7th Ave. The current owner of 43 E. 7th Ave. is H &M Commercial LLC (Advanced Military Packaging - AMP) AMP owns 3 other buildings in the City. AMP is a supplier to Oshkosh Corporation and many other clients. AMP used to work out of Milwaukee, but they have recently consolidated their operations in Oshkosh. AMP approached the City about selling the industrial building and attached small office. AMP occupies the industrial space, Chamco leases and occupies the small office space. AMP has recently acquired property adjoining their existing building on Oregon Street and would prefer to sell the building at 43 E. 7th Ave. H &M Commercial LLC purchased the property in 2006 for $770,000. The City's assessment for the property is $180,400 for the land and $570,700 for the improvements for a total of $750,700. The eventual demolition and remediation costs are unknown at this time, but could be in the range of $500,000 to $750,000 based on other RDA projects in the Marion Road area and the neighboring parcels along 8th Ave. The property owner had approached the City in determining the City's interest in acquiring the property for redevelopment. The City does not have any immediate plans for redevelopment of the site, and the owner would be interested in leasing the building back for 3 to 5 years. In early 2014, the City ordered an appraisal of the property which came back at $780,000. The City received a second appraisal for the property in late June, 2014 and the second appraisal value was determined to be $892,000. Based on the result and earlier RDA and City discussion, staff inquired about the possibility of Chamco recreating the 1 E. 8th Ave. acquisition of $780,000 in 3 years. Staff at Chamco researched the 1 E. 81h Ave. project and determined that Chamco could recreate a similar purchasellease agreement with the owner and sell the property to the RDA/City in 3 years. The City would not have any leasing responsibility. The Chamco Board has offered to purchase and lease the property for 3 years and sell to the RDA /City in 3 years at the original appraisal of $780,000. Chamco has summarized the purchase/lease and City purchase and drafted an Option to Purchase similar to the 1 E. 8th Ave. project and is attached. The RDA acted on August 6, 2014 and made a finding of necessity for the property acquisition related to the redevelopment of the Southshore. Additional action by the RDA and City Council will be required in 2017 to complete the transaction. Fiscal Impact The financing for the proposed purchase would be TID #20. Depending on the cash balance in the TID #20 account, TID #7 could be used for the purchase as well. Future demolition and remediation costs would also be financed the same way. The longterm fiscal impact would be to ensure the redevelopment of the manufacturing property into future commercial and/or residential property in conformance with the Southshore Redevelopment Plan. As a comparison, the post -- development values of the Marion Road redevelopment area are about $2 million per acre to date. Recommendation The City Council approves the agreement to acquire of 43 E 7th Ave. in 3 years for $780,000. Approved, City Manager