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Home My WebLink About09. 15-357 JULY 28, 2015 15-357 RESOLUTION (CARRIED___7-0_____LOST________LAID OVER________WITHDRAWN________) PURPOSE: APPROVE SPOT BLIGHT DESIGNATION AT 1118 SOUTH MAIN STREET (FORMER BUCKSTAFF PROPERTY) INITIATED BY: CITY OF OSHKOSH REDEVELOPMENT AUTHORITY RECOMMENDATION: Approved WHEREAS, the Redevelopment Authority of the City of Oshkosh was created to assist in the elimination and prevention of blight and blighting influences and to promote urban renewal; and WHEREAS, Wisconsin Statutes provides that the Redevelopment Authority may spot blight property to assist owners in obtaining grants for the purpose of eliminating its status as blighted property with approval by the local legislative body; and WHEREAS, the property at 1118 South Main Street exhibits conditions cited under Section 66.1333 (2m)3.(bm) of the Wisconsin Statutes that consider said property to be blighted; and WHEREAS, the Redevelopment Authority conducted a public hearing and approved of the spot blight designation for 1118 South Main Street at its July 15, 2015 meeting. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that: 1. Findings and Determinations. It has been found and determined and is hereby declared that: (a) conditions of blight exist at the Property; and (b) a comprehensive plan of redevelopment is not necessary with respect to the private redevelopment of the Property or the relation of the redevelopment of the Property to other property redeveloped by the City of Oshkosh and Redevelopment Authority. 2. Spot Blight Designation. The Common Council hereby finds that the Property is a blighted property in need of rehabilitation and blight elimination under the meaning in Section 66.1333 (2m)3.(bm) of Wisconsin Statutes. OfHKOJH ON THE WATER TO: Honorable Mayor and Members of the Common Council FROM: Allen Davis, Director of Community Development DATE: July 21, 2015 RE: Approve Spot Blight Designation 1118 South Main Street; Former Buckstaff Property BACKGROUND In February 2011, foreclosure proceedings were brought against the properties operated by the Buckstaff Company. The Buckstaff Company stopped doing business at the site in March of 2011. Three separate parcels were involved in the foreclosure process, the main factory property located at 1118 South Main Street, and two smaller parcels used for office and retail purposes. The Bank completed all steps in the foreclosure process for the two smaller properties and has disposed of those properties to third parties. The main factory property has significant costs associated with demolition and it has remained in a more uncertain legal status since the commencement of the foreclosure. In March, 2013 the City of Oshkosh filed suit related to the nuisance conditions on the property. The original bank holding the mortgage was purchased by FirstMerit Bank and the City and FirstMerit participated in mediation with the federal magistrate in May of 2014. A general outline for settlement was proposed at that time and the City and FirstMerit have been working toward settlement of this matter since that time. The general outline of the settlement toward which the parties have been working would conclude with the City taking title to the property. FirstMerit would pay some amount toward the removal of the buildings on the property which would address the City's concerns related to potential fire hazards and in consideration of this and obtaining title to the property the City would use its ability to apply for certain grant funding to defray the costs of demolition, take responsibility for the removal of the slabs beneath the buildings, seek a local governmental unit liability exemption in relation to environmental issues on the site and work with the other local units of government to forgive outstanding real estate taxes on the site. ANALYSIS A public hearing to spot blight 1118 South Main Street was held on July 15th, 2015 at the Redevelopment Authority Meeting. The spot blight designation will also allow City staff to apply for site assessment grant funds from WEDC to assist with demolition of the structures, once a formal agreement has been reached and approved by Council. Staff and the Redevelopment Authority agree blighting the property is the right course of action in the redevelopment of this site. FISCAL IMPACT There is no anticipated fiscal impact at this time. Per the agreement, Mr. Cowie and FirstMerit Bank are responsible for demolition costs up to the foundation. The City will incur costs for removal of the building foundations. RECOMMENDATION Redevelopment Authority recommends approval of the spot blight designation and requests that Council concur with this finding. Approved, Mark A. Rohloff City Manager . 1 E 7TH AI, . , i =-.------ , H AV L_____....... ' I , I-----j 1 1 I . ' . , . —HI `._ [I :... E'8TH AV 2 _ - . . , - in 1 ,- , .7-...,„,..„. , I " W _,_ ._-- • • ,.....1 _...3 1 i . l.--■,,........'"' • ---1'11111.1 7,'.1 i . '' r: -..-' 1 k I 701111-1 Mu i 1.J c------;■ • . • .._..._ --_„_.]„771•:-,---•' . Ej \ Iii/ I I 'Lim tr,...,.., ,., ins= __J r .,.it . . .. .,„„ ,e,-;.:11 _ . . .L 0 n ri 1 j-, D'' 1.-J 1 1 --' ----■., 1 --.... 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