HomeMy WebLinkAbout17-03 Lease Agreement 43 E. 7thREDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH, WISCONSIN
FEBRUARY 14, 2017 17-03 RESOLUTION
(CARRIED_______ LOST _______ LAID OVER _______ WITHDRAWN _______)
PURPOSE:APPROVE LEASE AGREEMENT WITH H&M COMMERCIAL
LLC; 43 EAST 7TH AVENUE
WHEREAS,in 2014 the Redevelopment Authority approved the Determination of
Necessity to acquire property at 43 E. 7th Avenue; and
WHEREAS, the City of Oshkosh and Redevelopment Authority entered into an
agreement with CHAMCO to acquire the property no later than August 1, 2017.
NOW, THEREFORE BE IT RESOLVED by the Redevelopment Authority of the
City of Oshkosh that a Lease Agreement with H&M Commercial LLC to lease property
at 43 East 7th Avenue is hereby approved and the proper officials are hereby authorized
to execute a Lease Agreement with substantially the same terms as attached hereto, and
to carry out all actions necessary to implement the Redevelopment Authority’s
obligations to implement the terms and conditions of the Lease Agreement.
TO: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.
4737
12
600
710
706
716
500
43SS
MM
AA
II
NN
SS
TT
E 8TH AVE 8TH AV
PPIIOONNEEEERRDDRR
E 7TH AVE 7TH AV
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¯