HomeMy WebLinkAboutDiscussion Item - Lease Agreement 43 E. 7thTO:City of Oshkosh Redevelopment Authority
FROM:Allen Davis, Community Development Director
DATE:February 9, 2017
SUBJECT:17-03 Approve Lease Agreement with H&M Commercial, LLC; 43 E. 7th
Avenue (effective when RDA acquires property)
Background
The RDA entered into an agreement with CHAMCO to acquire 43 E. 7th Avenue in
August of 2017. The previous owner is also the current occupant/tenant. The tenant has
inquired if the RDA would consider extending the lease for their continued occupancy.
Analysis
The proposed lease would be for 2 years. The lease rate would be $5,000 per month with
the tenant responsible for all costs of the warehouse area. The RDA would be responsible
for the office space that the tenant does not want to use.The attached Term Sheet
provides more specifics. The cost per square foot is a little low, but the tenant is also
responsible for maintenance of the building and property, not the RDA. The lease
payments will help generate funding for the eventual demolition of the building.
The RDA will acquire the property as part of the Southshore Redevelopment Plan and
will be combined with the block to the south. Since the agreement for the acquisition, the
RDA has also obtained the shop and bowling alley on the block. In addition, the Concept
Plan for the Sawdust District has been developed, and the block is designated as a major
redevelopment site. While redevelopment begins with the Arena to the south, the
building will be demolished for redevelopment. The proposed 2 year lease, with a 6
month early termination, would allow the RDA to demolish the site in concert with the
redevelopment of the block.
Recommendation
The RDA approves the Lease Agreement with H & M Commercial, LLC.
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J:\GIS\GIS_Base_Maps\Planning Base Map.mxd User: andreaf
4 3 E . 7 t h A v e43 E . 7 t h A v e
The City of Oshkosh creates and maintains GIS maps and data for its own use.They may show the approximate relative location of property, boundaries and otherfeature from a variety of sources. These map(s)/datasets are provided forinformation purposes only and may not be sufficient or appropriate for legal,engineering, or surveying purposes. They are provided “AS-IS” without warranties Prepared by: City of Oshkosh, WI
Printing Date: 2/7/2017
1 in = 100 ft1 in = 0.02 mi¯