Loading...
HomeMy WebLinkAbout2-14-17 RDA Full AgendaREDEVELOPMENT AUTHORITYof the City of Oshkoshc/o Community Development Department215 Church Ave., PO Box 1130Oshkosh, WI 54902-1130 (920) 236-5055(920) 236-5053 FAXhttp://www.ci.oshkosh.wi.us H. ALLEN DAVIS Executive Director STEVE CUMMINGS Chairman **REVISED** REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH Oshkosh City Hall, Room 203 4:00 pm February 14, 2017 1)ROLL CALL 2)a. Approve Minutes: November 30, 2016 b. Approve Minutes: January 12, 2017 3)NEW BUSINESS 17-02 Approve Lease Agreement With Fox Valley Pro Basketball, Inc.;1212 South Main Street Lot 2 of CSM 7081 17-03 Approve Lease Agreement with H&M Commercial, LLC; 43 E. 7th Avenue (effective when RDA acquires property)WITHDRAWN 17-04 Approve Option to Purchase Vacant Lot; 6th Avenue and Nebraska Street;50 West 6th Street, LLC Discussion Item: Make Recommendation to Council for Jackson and Oregon Street Bridge Project Discussion Item: Lease Agreement with H&M Commercial, LLC; 43 E. 7th Avenue 4)EXECUTIVE DIRECTOR’S REPORT Buckstaff Property Healthy Neighborhoods Initiative South Shore Redevelopment Area Marion & Pearl Redevelopment Area 5)ADJOURNMENT RDA 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 RDA Minutes January 12, 2017 Page 1 REDEVELOPMENT AUTHORITY MINUTES January 12, 2017 PRESENT:Thomas Belter,John Bermingham Steve Cummings,Steve Hintz,Jason Lasky, Archie Stam EXCUSED:Doug Person STAFF:Allen Davis, Executive Director/Community Development Director;Darlene Brandt, Grants Coordinator;Andrea Flanigan, Recording Secretary;Lynn Lorenson, City Attorney Chairman Cummings called the meeting to order at 4:00 pm. Roll call was taken and a quorum declared present. Res.17-01 Approve Acquisition of a Portion of Buckstaff Property at 1118 South Main Street (Acquire Lot 2 of CSM 7081 Only) Motion by Belter to move Res.17-01 Seconded by Bermingham Mr. Davis stated the Buckstaff property was split into two lots which has turned out to be beneficial so we can accelerate the demolition of the foundations and the piers that the City is responsible for removing. Since not all of the buildings are down on Lot 1, we can still take possession of Lot 2 and begin the foundation removal which will speed up redevelopment of the site. City Attorney Lynn Lorenson is present if there are any questions regarding the settlement agreement approved by Council last year. Mr. Belter inquired who the seller is for the Buckstaff property. Ms. Lorenson stated the seller is one of Martin Cowie’s entities, Oshkosh Furniture LLC. Mr. Belter inquired about the involvement of the bank. Ms. Lorenson stated the bank will do a Quit Claim Deed to the RDA for any interest they may or may not have with the property. Mr. Belter stated Huntington Bank took over FirstMerit Bank. Ms. Lorenson stated the entity has changed but a lot of the people have remained the same and the representative has remained the same. Mr. Bermingham inquired if the buildings are down on Lot 2. RDA Minutes January 12, 2017 Page 2 Mr. Davis responded affirmatively. Workers are deconstructing on Lot 1 as well and it is anticipated those building will be down later this winter or early spring. Mr. Stam inquired if there was any word on the D-League Mr. Davis stated the developer had a very good open house last night and should be able to answer those questions at Plan Commission on January 17th about the arena. Mr. Belter inquired when City crews would be able to remove foundations. Mr. Davis responded as soon as the RDA closes on Lot 2 which would be as early as next week. The item was called. Motion carried 6-0. There was no further discussion.The meeting adjourned at approximately 4:12 PM. (Belter/Stam) Respectfully submitted, Allen Davis Executive Director REVISED REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH, WISCONSIN FEBRUARY 14, 2017 17-02 RESOLUTION (CARRIED_______ LOST _______ LAID OVER _______ WITHDRAWN _______) PURPOSE:APPROVE LEASE AGREEMENT WITH FOX VALLEY PRO BASKETBALL, INC.; 1212 SOUTH MAIN STREET LOT 2 OF CSM 7081 BE IT RESOLVED by the Redevelopment Authority of the City of Oshkosh that a Lease Agreement with Fox Valley Pro Basketball, Inc. or its affiliates to lease property at the former Buckstaff property at 1212 South Main Street, also known as Lot 2 of CSM 7081 is hereby approved and the proper officials are hereby authorized to enter into a Lease Agreement for purposes of same. TO:City of Oshkosh Redevelopment Authority FROM:Allen Davis, Community Development Director DATE:February 9, 2017 SUBJECT:17-02 Approve Lease Agreement with Fox Valley Pro Basketball, Inc.; 1212 South Main Street Lot 2 of CSM 7081 Background The recent announcement regarding the proposed arena and Milwaukee Bucks D-League team has accelerated the redevelopment of the Buckstaff property. As part of the redevelopment, the owner will have to lease the property to the developer so that WisDNR can review the development plans and construction with the expectation of receiving a Voluntary Party Liability Exemption (VPLE) which requires a Certificate of Completion (CoC). Once the CoC is obtained,the developer/future owner and RDA will have no liability for any pre-existing environmental contamination issues. Analysis This is the same procedure and lease arrangements the RDA has used in all the Marion Road redevelopment projects. Once WisDNR is satisfied that the parking lot, buildings, and other environmental caps have been installed to their satisfaction, the WisDNR will issue the CoC and both the RDA and the developer are free from any pre-existing environmental liabilities.The property is leased for $1 until the CoC is obtained, usually within 6 months of final construction. The Lease Agreement will follow the same format, with similar terms, to the Marion Road leases. Staff will be bringing the draft Development Agreement and Land Sale to the RDA for action at the appropriate time, later this February. Recommendation The RDA approves a Lease Agreement with Fox Valley Pro Basketball, Inc. REDEVELOPMENT 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¯ REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH, WISCONSIN FEBRUARY 14, 2017 17-04 RESOLUTION (CARRIED________LOST________LAID OVER________WITHDRAWN________) PURPOSE:APPROVE OPTION TO PURCHASE VACANT LOT; 6TH AVENUE AND NEBRASKA STREET; 50 WEST 6TH STREET, LLC BE IT RESOLVED by the Redevelopment Authority of the City of Oshkosh that the option to purchase submitted by 50 West 6th Street, LLC or its Assigns, for the vacant lot on 6th Avenue and Nebraska Street 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)Formal submittal of a proposal by December 31, 2017 with option for 6 month extension. 2)Approval of the final site plan by the Redevelopment Authority. 3)Provide lending financing commitment. 4)All Zoning Ordinance requirements must be met or variances obtained. 5)The option fee shall be Seven Thousand Five Hundred Dollars and NO/100 ($7,500.00). TO:City of Oshkosh Redevelopment Authority FROM:Allen Davis, Community Development Director DATE:February 9, 2017 SUBJECT:17-04 Approve Option to Purchase Vacant Lot; 6th Avenue and Nebraska Street; 50 West 6th Street, LLC Background The owner and redeveloper of the Granary, Andy Dumke, is requesting an option for the vacant RDA owned property on the southwest corner of 6th and Nebraska. Analysis Mr. Dumke had presented his ideas for the redevelopment of the Granary to the RDA in 2016. His plans have progressed so that he is planning to use the RDA lot for a parking lot in support of the Granary redevelopment. Recommendation The RDA approves the option to purchase the vacant lot at 6th Ave and Nebraska to 50 West 6th Street, LLC. 25 34 107125127131139 30 137 106 716 121 107 701 715 707 344044 39 136 132 128 124 118 114 106 100 113 103 110 304044 41 35 25 132 51 35 50 31 4050126106 122 110 609 143 139 117 131 127 123 117 113 107 105 800A 608 45 133 111 800 802 804 806 820 822 824 425 613 617 W 8TH AVW 8TH AV W 7TH AVW 7TH AV W 6TH AVW 6TH AV NEBRASKA ST NEBRASKA ST W 5TH AVW 5TH AV J:\GIS\GIS_Base_Maps\Planning Base Map.mxd User: andreaf 6 t h A v e & N e b r a s k a6th A v e & N e b r a s k a 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¯ 107 106 103 110 4044 41 50 4050106 110 609 608 45111 613 617 W 6TH AVW 6TH AV NEBRASKA ST NEBRASKA ST W 5TH AVW 5TH AV J:\GIS\GIS_Base_Maps\Planning Base Map.mxd User: andreaf 6 t h A v e & N e b r a s k a6th A v e & N e b r a s k a 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 = 50 ft1 in = 0.01 mi¯ TO:City of Oshkosh Redevelopment Authority FROM:Allen Davis, Community Development Director DATE:February 9, 2017 SUBJECT:February 14, 2017 RDA Agenda items Discussion Item: Make Recommendation to Council for Jackson and Oregon Street Bridge Project WisDOT is conducting a study on the Oregon/Jackson St Bridge. WisDOT narrowed the options for the Environmental document and the alternatives have been included in the packet.WisDOT has asked the City Council to recommend an alternative.The City Council has asked for any recommendations from other committees and commissions in the City by February 28, 2017. Oregon/Jackson Street Bridge Screening Alternatives Analysis Summary 38 | FINAL December 2016 Oregon/Jackson Street Bridge Screening Alternatives Analysis Summary FINAL December 2016 | 39 Oregon/Jackson Street Bridge Screening Alternatives Analysis Summary 40 | FINAL December 2016 Oregon/Jackson Street Bridge Screening Alternatives Analysis Summary FINAL December 2016 | 43 Oregon/Jackson Street Bridge Screening Alternatives Analysis Summary 44 | FINAL December 2016 Oregon/Jackson Street Bridge Screening Alternatives Analysis Summary 50 | FINAL December 2016 Oregon/Jackson Street Bridge Screening Alternatives Analysis Summary FINAL December 2016 | 51 Alternative A Alternative B Alternative C1 Alternative E Alternative F Alternative J1 Alternative J2 No Build Rehabilitation High Level Fixed (Division St realigned) On-Alignment (raised clearance) On-Alignment (both riverwalks separated) Off-Alignment (both riverwalks separated - Division St realigned) Off-Alignment (both riverwalks separated - Division St cul-de-sac) Addresses structural deficiencies no yes yes yes yes yes yes Improves multi-modal access across river no no yes (5' bicycle lanes, 6' sidewalks) yes (5' bicycle lanes, 6' sidewalks) yes (5' bicycle lanes, 6' sidewalks) yes (5' bicycle lanes, 6' sidewalks) yes (5' bicycle lanes, 6' sidewalks) Addresses boating clearance deficiency no no yes (no bridge openings)yes (improved clearance - fewer openings) yes (improved clearance - fewer openings) yes (improved clearance - fewer openings) yes (improved clearance - fewer openings) Accommodates city riverwalk plans no no yes no yes yes yes Magnitude of environmental impacts low low high medium high high high Closure timeframe for construction N/A 1 year 2 years 2 years 2 years 2 years construction - bridge closure limited to 1 year 2 years construction - bridge closure limited to 1 year Estimated construction cost in millions (1)$0 $9-11 $14-16 $33-35 $34-36 $34-36 $34-36 Estimated real estate cost in millions (2)$0 $0 $1.2-1.4 < $0.1 < $0.1 $0.9-1.1 $1.1-1.3 Life expectancy (years)???25 75 75 75 75 75 Future ownership State State City City City City City (1) - Costs are very preliminary and only reflect construction costs expressed in 2016 dollars. Estimates do not include any associated design/construction engineering or utility costs. Costs are currently 100% Federal/State funded. However, local cost share may be added at a later stage depending on aesthetic or design elements that the city wants to incorporate within the project. Local cost share may also be added if local utilities are upgraded or replaced. (2) - Costs are very preliminary and are expressed in 2016 dollars. Annual operating costs for the Wisconsin Street lift bridge in City of Oshkosh (opened in 2008) have averaged roughly $120,000/year from 2010-2014. Operating costs include bridge tender labor, utility costs, and miscellaneous minor repairs. Oregon/Jackson Street Bridge Alternative Summary O-J Alternative Comparison.xlsx 12/15/2016 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¯