HomeMy WebLinkAbout17-08REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH, WISCONSIN
JULY 31, 2017 17-08 RESOLUTION
(CARRIED_______ LOST _______ LAID OVER _______ WITHDRAWN _______)
PURPOSE:APPROVE LEASE AGREEMENT WITH H&M COMMERCIAL
LLC; 43 EAST 7TH AVENUE
BE IT RESOLVED by the Redevelopment Authority of the City of Oshkosh that a
Lease Agreement with H&M Commercial LLC to lease the warehouse portion of the
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:July 13, 2017
SUBJECT:17-08 Approve Lease Agreement with H&M Commercial, LLC; 43 E. 7th
Avenue
Background
The RDA entered into an agreement with CHAMCO to acquire 43 E. 7th Avenue by
August, 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 Lease Agreement
provides more specifics. The cost per square foot is on the low side of the market range,
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 proposed Lease Agreement with H&M Commercial, LLC; 43 E.
7th Avenue for $5,000 per month.
Lease Agreement
This LEASE AGREEMENT ("Lease") made and entered into this ____ day of
July, 2017 is by and between the Redevelopment Authority of the City of Oshkosh
(RDA), a separate body politic, ("Lessor"),with its principal offices located at 215
Church Avenue,PO Box 1130,Oshkosh, Wisconsin 54901 and H&M Commercial LLC,
(H&M)("Lessee"), a Wisconsin limited liability company, with its principal offices at N69
W25986 Brighton Drive, Sussex, Wisconsin 53089.
AGREEMENT
1.The RDA owns the real property at 43 East 7th Avenue, within the City of
Oshkosh, Winnebago County, Wisconsin.
2.H&M seeks to lease the 38,184 sq. ft. warehouse at 43 East 7th Avenue,
Oshkosh, Wisconsin ("Leased Property"). H&M will not lease the attached 1,335
sq. ft. office building. The RDA may separately lease the office building at its
discretion, with written notice to H&M.
3.This Lease shall commence July 27, 2017.The initial lease term shall be for two
(2) years.Either party may terminate the Lease upon a six (6) month written
notice to the other party.The lease may be extended monthly at the end of the
initial 2 year term.
4.During the term of this Lease, the RDA shall be allowed reasonable access to the
Leased Property for any purpose related to any municipal or police power
function, to meet its obligations under this Lease, or to function in its capacity as
the owner of the Leased Property. The RDA shall make all reasonable efforts to
not materially disrupt H&M's allowed use of the Leased Premises.
5.Lease Amount. The lease amount shall be FIVE THOUSAND DOLLARS AND
NO/100 ($5,000)per month due on the 10th of the month.Payment shall be
mailed to:
Redevelopment Authority of the City of Oshkosh
PO Box 1130
Oshkosh, WI 54903 –1130
6.H&M has had sufficient access to the Leased Property and as a result is or
should reasonably be aware of all aspects related to its condition. The RDA
makes no express or implied promises or warranties related to the condition of
the Leased Property.
7.H&M shall be responsible for:
a.Payment of personal property taxes.
b.All utility payments (i.e. Wisconsin Public Service,City sewer, water,
storm water)
c.Grass cutting and snow removal
d.General building maintenance associated with operating that portion of
the building as a warehouse (ie roof repairs, water pipe leaks/repairs,
furnace, etc.)
e.Improvements necessary to the warehouse incidental to the warehouse
use.
8.H&M shall have all necessary insurance with sufficient limits which will cover its
employees, actions and property on the Leased Property. H&M shall hold the RDA
harmless from any accident or incident involving H&M, its employees or agents, or
any dispute with H&M or any 3rd party resulting from any action of H&M, its agents
or assigns,occurring during the term of this Lease.H&M shall provide a copy ofits liability insurance to the RDA, with the RDA listed as an additional insured on
the policy.
9.H&M shall not allow any encumbrance to be filed on or against the Leased
Property, including mortgages, easements, or similar restrictions unless
otherwise explicitly allowed in writing by the RDA.
10.RDA shall be responsible for costs associated with the unoccupied office space.
SIGNATURE PAGE TO FOLLOW
IN WITNESS WHEREOF, the parties have executed this Lease Agreement as of
the date first above written.
REDEVELOPMENT AUTHORITY
OF THE CITY OF OSHKOSH
By:
H. Allen Davis III, Executive Director
By:
Steven J. Cummings, Chairman
STATE OF WISCONSIN )
)SS
COUNTY OF WINNEBAGO )
Personally came before me this _____day of ____________, 2017, the above-
named H. Allen Davis III and Steven J. Cummings, to me known to be the Executive
Director and Chairman of the Redevelopment Authority of the City of Oshkosh, Wisconsin
and the persons who executed the foregoing document and acknowledged the same.
Notary Public, State of Wisconsin
My commission expires:
[SIGNATURES AND ACKNOWLEDGEMENTS CONTINUED NEXT PAGE]
H&M COMMERCIAL LLC
By:
Howard Hoth
Title:__________________________
By:
Printed Name:
Title:
STATE OF WISCONSIN )
) SS
COUNTY OF WINNEBAGO )
On this _____ day of ____________, 2017 personally came before me
_____________________________________________________________________,
to me known to be the person(s)who executed the foregoing instrument and
acknowledged the same.
Notary Public, State of Wisconsin
My commission expires:.
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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¯