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HomeMy WebLinkAbout11-30-16 MinutesRDA Minutes November 30, 2016 Page 1 REDEVELOPMENT AUTHORITY MINUTES November 30, 2016 PRESENT:Thomas Belter,Steve Cummings,Steve Hintz,Jason Lasky,Archie Stam EXCUSED:John Bermingham,Doug Person STAFF:Allen Davis, Executive Director/Community Development Director;Darlene Brandt, Grants Coordinator;Andrea Flanigan, Recording Secretary; Elizabeth Williams, Associate Planner Chairman Cummings called the meeting to order at 4:00 pm. Roll call was taken and a quorum declared present. The minutes of September 21, 2016 and October 3, 2016 were approved as distributed (Belter/Hintz). Mr. Lasky entered at 4:02 PM. Res. 16-21 Approve Determination of Necessity to Acquire Property; Establish Fair Market Value; Authorize Purchase at 716 S. Main Street Motion by Stam to move Res. 16-21 Seconded by Hintz Mr. Hintz inquired about the difference in settlement price and assessment price and if there are other buildings in the area that are pending acquisition. Mr. Davis stated 710 and 716 S. Main Street have the same owner and are adjoined. 716 S. Main St. needs to come down due to bricks falling and the building deteriorating. 710 S. Main Street is a bowling alley that wraps around 716 S. Main Street. The building next to 710 S. Main Street is Lueck’s Lumber which wraps around the bowling alley and also adjoins 43 E. 7th Avenue which will be acquired by the RDA in August of 2017.716 S. Main Street is vacant so there are no business to close costs associated with the property. 710 S. Main Street is a bowling alley so the RDA would pay business closing costs and the buy the property which is why the purchase price is above the property value. Mr. Lasky inquired how much above the property value is being offered. Mr. Stam responded the assessed value is $83,000 and the offer price is $199,000. Mr. Stam inquired if there is value in the equipment and if it could be salvaged. RDA Minutes November 30, 2016 Page 2 Mr. Davis stated the owner has the rights after their bowling season is over to salvage the equipment. Ms. Brandt stated the owners will have the right to remove personal property. Anything in the bowling alley would be considered their personal property. Mr. Cummings inquired if there was a liquor license. Ms. Brandt stated the liquor license will be surrendered to the City. The item was called. Motion carried 5-0. Res. 16-22 Approve Determination of Necessity to Acquire Property; Establish Fair Market Value; Authorize Purchase at 710 S. Main Street Motion by Belter to move Res. 16-22 Seconded by Stam Mr. Stam inquired if there were enough funds to afford the asking price. Mr. Davis responded affirmatively and stated block grants funds would pay for the acquisition and closing costs. Mr. Belter inquired when closing on the properties would take place. Ms. Brandt stated 716 S. Main St. will close before year end and 710 S. Main Street will close after the 2017 bowling season is finished. Mr. Cummings inquired if the RDA has any salvage rights for 716 S. Main Street. Mr. Davis stated we have arranged for Habitat for Humanity to salvage for the Restore. Mr. Lasky inquired if the costs for the acquisition included demolition. Mr. Davis responded negatively. Mr. Lasky inquired if the demolition would have to be approved by the RDA. Mr. Davis stated if City crews are able to demo buildings then it would not need approval but if the demolition is contracted out, it will most likely need to be approved by RDA. Mr. Lasky inquired if there was an immediate danger or safety concerns to the public on 716 S. Main St. Mr. Davis stated there is no immediate danger but 716 S. Main St. should come down sooner rather than later. RDA Minutes November 30, 2016 Page 3 Mr. Hintz inquired why the property is being acquired now rather than later. Mr. Davis stated the South Shore Redevelopment Plan identified these properties as candidates for acquisition and redevelopment. The City began considering the acquisition of the property when the bricks on the building started falling off and the cost to repair the wall was high. The timeliness for this property was based on gravity. Discussion with the property owner led to talks about acquiring 710 S. Main St. There is more flexibility on 710 S.Main St. because there is no specific urgency other than to tear down a blighted property.As far as redevelopment, we are still a ways from getting the entire site redeveloped. Lueck’s is aware the RDA has acquired 43 E. 7th Ave and 710 and 716 S. Main Street but we haven’t discussed potential acquisition with them. The item was called. Motion carried 5-0 Res. 16-23 Approve Option to Purchase Vacant Lot on 4th Avenue and Michigan St; Chet Wesenberg Motion by Stam to move Res. 16-23 Seconded by Belter Mr. Hintz stated he was concerned with tying up the property for 18 months in the amount of $1. Mr. Hintz inquired if other potential developers are aware of the property for sale and inquired if the City advertises. Mr. Davis stated this property is the former Boatworks Marina property and is a relatively new redevelopment site. The City put up for sale signs on the property in the past year and has been listed for the past 6 months on websites that show vacant property for sale. Mr. Lasky stated most developers are familiar with how to look up vacant lots on the City Assessor website.There is the option to search by owner, so any property owned by the RDA is advertised on the City’s website. Mr. Cummings inquired how large the lot is. Mr. Davis responded 1. 8 acres. Mr. Lasky inquired about the length of the option. Mr. Davis stated Mr. Wesenberg proposed 18 months. Mr. Lasky inquired what the basis was for an 18 month option. Mr.Tim Hess stated they were hoping for much less than 18 months for this particular site but after meeting with the City about development costs and getting the site ready at a cost of $800,000, finance for the project came into question. If approved by the RDA we would need to get our financials in order to do a full site plan and bid out the project, then another six months to turn around and present the project once the financials are in order. RDA Minutes November 30, 2016 Page 4 Mr. Lasky inquired if it would be possible to do a 12 month option to purchase with a 6 month option to renew. Mr. Hess stated he would not have a problem with presenting their plan after the 12 months with a 6 month option to renew at that time. Mr. Stam inquired if the water was navigable. Ms. Brandt stated the DNR does consider the waterway navigable, however only a kayak or canoe would be able to get through. Mr. Cummings inquired if the applicant had any plans that included the sanitation garage to the west of the property. Mr. Hess stated there are no substantial plans at this time. Mr. Stam inquired if the land was donated. Mr. Davis stated the RDA paid $225,000 to the Boatworks heirs for the property. Mr. Lasky inquired what the timeline was for the Morgan Partners developing adjacent to this site. Mr. Davis stated next spring the Morgan partners will break ground on the first phase of the development plan which is closest to Oregon Street and work towards the west in future phases. Mr. Lasky inquired if the applicant would consider an amendment that after a 12 month period there would be a benchmark to show evidence of a feasibility study or hard numbers. Mr. Hess stated that within the 12 months we believe we will need a TIF. We will need to put together a substantial amount of work,and at that point,have evidence and know if the project will move forward. Mr. Lasky proposed to amend the option to purchase to formally submit a proposal by December 31, 2017 with the option for a 6 month extension. Motion by Belter to move to amend the option to purchase to include a formal submittal of a proposal by December 31, 2017 with the option for a 6 month extension. Second by Stam Motion carried 5-0. The item was called as amended. Motion carried 5-0. RDA Minutes November 30, 2016 Page 5 Executive Director’s Report Mr. Davis stated there is good progress being made on the Buckstaff property and the southern buildings should be down by the end of the year. Staff is putting together the specs for foundation removal of the demolished buildings. The foundations will be demolished this winter in time for redevelopment in the spring. Mr. Belter inquired if it will be difficult to get Phase II environmental done in the winter. Mr. Davis stated once the buildings are down on Lot 2 the RDA will acquire the property and begin Phase II environmental work. Mr. Belter inquired when all of the buildings will be down. Mr. Davis stated at the end of March buildings will be down. Mr. Davis stated the Bowen Street house is almost complete. Appliances will be delivered this week and hope to have an open house and put on the market. Construction continues on the Riverwalk west of Oregon Street. The City was awarded a $686,000 grant for the next phase of the riverwalk west towards Boatworks. Mr. Belter inquired if there was a way to cut through the lagoon with a wooden bridge instead of going all the way around the lagoon. Mr. Davis stated because the lagoon is part of a navigable waterway the bridge would have to be 13 feet high, similar to the bridge at Boatworks. Mr. Davis stated the WisDOT is conducting a study on the Oregon/Jackson St. Bridge. There will be an environmental document out in February with their alternatives. Mr. Art Dumke is still working on redevelopment scenarios for the Pioneer area. Mr. Wesenberg and Mr. Hess have approached City staff and Andy Dumke about redeveloping the Granary. Rivers 1.5 is completed and occupancy is filling up. Mr. Andy Dumke is still working on building plans for the Parcel on Jackson and Marion and has the option through 2017. Mr. Lasky inquired about the brewery on Parcel H. Mr. Davis stated he has not heard from them specifically but they are working on the financing for the project. There was no further discussion.The meeting adjourned at approximately 4:37 PM. (Stam/Belter) Respectfully submitted, Allen Davis Executive Director