HomeMy WebLinkAboutMorgan District, LLC/Term SheetTerm Sheet
Whereas, The City of Oshkosh (City) wishes to develop or redevelop the Iands as
depicted on the attached map in order to significantiy enhance the tax base, provide
jobs, housing and retail shopping opportunities for its residents, and
Whereas, The Morgan District, LLC (Developer) owns or controls this property and
has provided the City with an overall master plan of development which is generally
consistent with the Master Plan of the City, and
Whereas, the Developer has indicated that in order to provide the scope and
quality of development sought by the City, it may be necessary to seek Tax Incremental
Financing from the City in order to atfract the capital necessary to develop the site, and
Whereas, the City has indicated its willingness to install a Riverwalk system to
connect this site to an overall system of trails within the City , thereby improving the
desirability of the site for prospective users and increasing the value of the property, and
Whereas in order to install such a system, the City will need a permanent easement
from the Developer for lands iY owns in order to install and maintain such a system,
Whereas, the City has applied for and expects to receive grant funds to begin
construction of the Riverwalk on this site, and
Whereas, Developer has not finalized its plans and funding for this project, but
does not wish to impede the City's construction of the Riverwalk in this area.
Now, therefore, the Parties to this term sheet hereby express their good faith intent
as follows.
Developer Commitments
1.) Developer shall provide a permanent easement on lands reflected in the attached
map for the purposes of constructing and maintaining a Riverwalk system.
2.) Developer shall complete and/or execute all documents required for grants and
any necessary permits for the construction and/or maintenance of the Riverwalk
project within the easement area.
City Commitments
1) Construction of the Riverwalk
a) The City agrees to vacate the easement if the City does not receive the grant
funcls necessary to complete construction of the riverwalk system.
b) The City will construct the Riverwaik, associated facilities and accompanying
landscaping in the Easement Property within five (5) years of the recording of
the Easement. If the Riverwalk construction is not completed within five (5)
years from the date of recording of the easement, the City will vacate the
easement, except that if construction has begun and the City is diligent in
pursuing such construction to completion, the easement shall not be vacated.
If the easement is vacated the City agrees that it will execute any documents
necessary at such time to release the easement.
2) Tax Incremental Financing Commitment
The City agrees to provide Tax Incremental Financing to the project (which, for
purposes hereof, may be divided into one or more distinct TIF Districts in order to
better account for project timing) subject to the following terms and conditions:
a) The City may provide UP TO 75% of the Net Increment generated by the
developer's project. The final amount of City assistance for the project (or each
phase thereofl shall be determined on a site by site basis. "Net IncremenY' is
the amount of total increment less City administrative costs.
b) Any tax incremental financing is subject to the standard approval process of
the Wisconsin Statutes. This term sheet is not a guarantee but a commitment
to pursue, in good faith, all required approvals of one or more TIF plan(s) for
the project.
c) The provision of any TIF participation shall be subject to a formal development
agreement between the parties but shall generally follow the principals as set
forth herein.
d) The form of TIF assistance shall be Pay as You Go financing.
e) Within five (5) years from the date of acceptance of this Term Sheet, if
Developer submits a complete application for TIF assistance meeting the
requirements set forth within the City's TIF Policy and the City fails to approve
such assistance, Ciiy shall pay io Developer $225,000 within 30 days of ihe
date of non-approval of the request as compensation for the Easement. If no
TIF application is submitted within five (5) years from the date of this
Agreement, the City shall not be obligated to make payment to the Deveioper
for the Easement and such Easement shall be considered a donation to the
C ity.
SIGNATURE PAGES FOLLOW
Dated this c��� day of V l/��, 2015.
The rgan i ict, LLC
By:
n Schwab, Managing Member
STATE OF WISCONSIN
ss.
WINNEBAGO COUNTY
Personally came before me this .�L�day of �U� 2015, the above named Grant
Schwab, of The Morgan District, LLC., to me known to be uch person who executed the foregoing
instrument and acknowled ed the same, for the ur se herein ontained.
9 �4�.�-y�r' � �%'-°7" "
Notary ublic, Winnebago Cou , Wisconsin
My Commission expires: _ /'� - // - / "%
CITY OF OSHKOSH
By: / r�---� i'�o��-l✓v`�
Ma . Rohloff, City Manag
1 ��� ,. l�l�
By: � � 4�,�'� �
Pamela R. Ubrig, City Clerl
STATE OF WISCONSIN )
) ss.
WINNEBAGO COUNTY )
Personally came before me this� day ofAS [�� cr f , 2015, the above named Mark A.
Rohloff and Pamela R. Ubrig of the City of Osh osk h, to me� known to be such persons who
executed the foregoing instrument and acknowledged the same, for the purpose herein contained.
��i�'�l% � /�2��
Notary Publi� County, Wisconsin
My Commission expires: .J /,] -/'�_
�OVED AS TO RM:
� n . Lorenso �i Attomey �