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Home My WebLink About08. 16-369JULY 26, 2016 16 -369 RESOLUTION (CARRIED 6 -0 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE OPTION TO PURCHASE A PORTION OF PARCEL H - CORNER OF JACKSON STREET AND PEARL AVENUE INITIATED BY: JEFFERY FULBRIGHT REDEVELOPMENT AUTHORITY RECOMMENDATION: Approved BE IT RESOLVED by the Common Council of the City of Oshkosh that the option to purchase submitted by Oshkosh Bier and Brewing LLC (Jeffrey Fulbright, member) or its assigns, for a portion of Parcel H at the corner of Jackson Street and Pearl Avenue within the Marion /Pearl Redevelopment Area is hereby accepted and the proper officials are hereby authorized and directed to execute any and all documents necessary for purposes of same. BE IT FURTHER RESOLVED that the terms of said option to purchase agreement shall include, but not be limited to: 1) Compliance with the approved Marion Road /Pearl Avenue Redevelopment Area Phase II Development Guidelines. 2) Formal submittal of a proposal by July 20, 2017. 3) Approval of the final development plan by the Redevelopment Authority and Common Council. 4) Provide lending financing commitment. 5) Obtain project approval under Planned Development Overlay provisions. 6) Submittal of a scaled site plan detailing building elevations. 7) The option fee shall be One Dollar and NO /100 ($1.00). 8) Construct a 15,000 square foot facility for the purpose of brewing and packaging fermented malt beverages, to include a 2,000 square foot tap room. 9) Construct an outdoor 'bier garden'. Oshkosh MEMORANDUM TO: Honorable Mayor and Members of the Common Council FROM: Allen Davis, Community Development Director DATE: July 21, 2016 RE: Approve Option to Purchase a Portion of Parcel H; Corner of Jackson Street and Pearl Avenue; Jeff Fullbright BACKGROUND Oshkosh Bier & Brewing LLC (Jeff Fullbright, member) has approached the City regarding the vacant parcel at the corner of Jackson Street and Pearl Avenue on what is commonly referred to as Parcel H within the Marion Road/Pearl Avenue Redevelopment Area. They are interested in obtaining a 12 month Option to Purchase in order to perform their due diligence required for the architectural, engineering, environmental and legal research and analysis needed to determine the feasibility of their project. ANALYSIS Attached is their Request for Option to Purchase, a proposal narrative, and building rendering. They have proposed basic terms for a possible option: • 12 month option • Purchase land for $1 • Construct a 15,000 square foot facility for the purpose of brewing and packaging fermented malt beverages, to include a 2,000 square foot tap room • Construct an outdoor 'bier garden' • The property will be purchased "as is" and the developer will be responsible for all remediation costs. FISCAL IMPACT The land is currently owned by the RDA and has no value. The possible development of the structure could yield a value of about $1,000,000 to $2,000,000. RECOMMENDATION The City directs the applicant and staff to draft an Offer to Purchase with the terms listed and authorizes staff to execute the Offer to Purchase. Respectfully Submitted, Approved, ;� °lam Gt✓PJ � Allen Davis Mark Rohloff Community Development Director City Manager RECEIVED REQUEST FOR OPTION TO PURCHASE MAY 2 5 2016 TO: Allen Davis /Community Development Board COMMUNITY i>INFLc.>PMEN F 215 Church Avenue Oshkosh, WI 54901 Please be advised that this is a formal request for an option to develop Lot 2, Parcel #01 -0202- 00-00, located at the southwest corner of Jackson and Pearl Street. The parcel is highlighted on the attached survey map. It is our request that the option price be $1.00, which we understand to be the going price for properties in that area. Specifically, Oshkosh Bier & Brewing LLC seeks a 12 -month option from the Oshkosh Community Development Board for that site. It is acknowledged that the exercise of the option shall be conditioned on the commencement of construction of improvements on the site consistent with the proposal that has previously been submitted to the City. It is the intention of Oshkosh Bier and Brewing to construct a facility of approximately 15,000 square feet, which facility will be for the purpose of brewing and packaging fermented malt beverages (beer). Said facility will also offer on premise retail beer served in a 2000 square foot "Tap Room ". In addition, an enclosed extensively landscaped "Bier Garden" will be constructed, extending west from the building. It will offer a relaxing, outdoor venue for the public to enjoy hand -made craft beer produced at this facility. Please consider our request. We believe our project will be an asset to the City and shall server to spur on other development in the area. Thank you for your consideration. 7i( Dated this --6 day of May, 2016. OSHKOSH BIER & BREWING, LLC OSHKOSH BIER & BREWING A BREWERY PROPOSAL • Oshkosh Bier & Brewing is an Oshkosh based LLC established to conceive, construct & operate a large production brewery in Oshkosh. • OB &B was founded by managing member Jeff Fulbright, an alumni of the Siebel (brewing) Institute, award winning brewer & former owner of Mid Coast Brewing /Chief Oshkosh Red Lager. • Administrative decisions will include partner & company counsel Charles Hertel of Dempsey Law & an advisory board consisting of partners, investors & local businessmen with skillsets complimentary to the development & growth of a production brewery. • OB &B will employ 6 -8 full time staff in production, packaging & general labor needs. The accompanying "Tap Room" will employ an additional 3 -4 full & part timers serving OB &B craft beers & our Classic American style Lager. • In addition to Fulbrights brewing experience, OB &B is fortunate to have secured the commitment of another Siebel alumni & 30 year, international award winning, former master brewer from the Stevens Point brewery; John Zappa. • Distribution of draught & packaged beer will be handled by local distributor, Lee Beverage, one of the largest distributors in Wisconsin. • The OB &B brewery will be the largest Oshkosh brewery since "Peoples Brewing" was built in 1913. At 15,000sq. ft. this brewery will be capable of producing up to 40,000bbl annually. • A high traffic, central site has been selected for construction of the OB &B brewery. Located in the River Walk "neighborhood" at the South West corner of Jackson & Pearl, lot 42, the brewery, with it's large landscaped beer garden will be an attractive, diverse yet complimentary addition to this central development area. • To date, OB &B has met several times with members of the planning office to discuss the feasibility of this project at the Jackson & Pearl location. In addition, we have also met with representatives from the DNR & the firm AECOM to discuss the necessary environmental, construction, easement, & maintenance requirements. • In addition to making great local beers it is the intent of OB &B to be a city destination for guests of Oshkosh's many events, a source of city pride & be part of the fabric of what makes Oshkosh "Event City ". • We hope the RDA members can appreciate not only the potential economic but the positive social impact that a large production brewery such as our proposal can exert on a community. START UP EXPENSES • Brewhouse /fermentation cellar $6699000 • Installation $180,000 • Packaging line $2659000 • Cartoner $1209000 • Keg washer /filler $309000 • 1000sq. ft. cooler $18,000 • 200 kegs $ 22,000 • Landscaping $259000 • Cans & lids $309600 • 6 pack carriers (40k) $119200 • Graphics $159000 • Malt (10,0001b) $79500 • Hops (10001b) $29000 • Yeast $300 • Tap Room equipment /decor $809000 • DNR fee $19750 • Federal license $299 • Sub total $19482,549 `o x a�empee4eB�ea g ��ia�B=BEaE bga b 1A1'HS031HSO 8 °> ag "giggydi� ly : Yviff HSOXHSO 2 n{ 8 $ r O 'IOW Nd 03SWd d e p U 0 0 z 0 V 0 I- 0 z a �1 C � 1 �,�yLe1 L g u a o� °d u � w rc 0 0 •' e zoo I w Nr»!8 ysosy .pal- Mdogse W,4dµ —M:O Iri£O:9E: L 191MLM ®l 1` 55 1 A �`, i