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HomeMy WebLinkAbout18-12 REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH,WISCONSIN JUNE 6, 2018 18-12 RESOLUTION (CARRIED LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE LEASE AGREEMENT WITH ADVOCAP, INC.; 117 W. 8TH AVENUE WHEREAS, the Redevelopment Authority approved the spot blight designation and approved the acquisition of property at 117 W. 811'Avenue; and WHEREAS, ADVOCAP will lease the property from the RDA and then thereafter lease, sublet, rent or allow the use of the property as a single family residence; and WHEREAS, staff is recommending leasing the property to ADVOCAP for said purposes until May 31, 2021. NOW, THEREFORE BE IT RESOLVED by the Redevelopment Authority of the City of Oshkosh that a Lease Agreement with ADVOCAP, Inc. to lease property 117 W. 81" Avenue is hereby approved and the proper officials are hereby authorized to execute a Lease Agreement with substantially the same terms as attached hereto, any changes in the execution copy being deemed approved by their respective signatures, 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: May 8, 2018 SUBJECT: 18-12 Approve Lease Agreement with ADVOCAP, Inc.; 117 W. 81h Avenue Background The house was purchased as part of the Southshore Redevelopment Plan as part of the blight elimination element with the goal of redeveloping the block at a future date. The house is in relatively good condition, and the RDA directed staff, upon acquisition, to offer the house for temporary use by temporary housing providers. ADVOCAP has a need for temporary housing and has agreed to cover all costs for maintaining the property until the house is demolished. Analysis The RDA has to maintain the property such as grass cutting and snow shoveling. The ADVOCAP temporary housing lease would relieve the RDA of that cost, and ADVOCAP is responsible for all carrying costs. In addition, the temporary use of the house would allow ADVOCAP to place clients in a safe and sanitary environment and more units are needed for that purpose. Fiscal Impact The RDA and City will save hundreds of dollars per year in carrying costs for the property. Recommendation The RDA approves the lease with ADVOCAP for 117 West 8ffi Avenue as presented. LEASE AGREEMENT 1. Landlord. The Redevelopment Authority for the City of Oshkosh, (RDA) a Wisconsin body politic,with its principal offices located at 215 Church Avenue, PO Box 1130, Oshkosh,Wisconsin 54901. Contact person for maintenance, management, or other issues related to the property is Darlene Brandt, Grants Coordinator for the City Department of Community Development. 2. Tenant. ADVOCAP, Inc., (ADVOCAP), a Wisconsin non-stock corporation,with its principal offices at 19 West First Street, PO Box 1108, Fond du Lac,Wisconsin 54936- 1108. Contact person for maintenance or other issues related to the property is 3. Proper 117 West 8thAvenue, Oshkosh,Wisconsin 54902, with a legal descriptions as follows: Lot Seven-(7) of Block Nine (9), according to the recorded Plat of the Original Third Ward, formerly Ninth Ward,now in the Third Ward, in the City of Oshkosh, Winnebago County, Wisconsin. Parcel Identification Number: 903-0105-0000 4. Property Use. The Property is a single family residence, consisting of a house with approximately 1,200 square feet, as well as a detached garage. The residence and garage are unfurnished, except for appliances, and is vacant. ADVOCAP will lease the Property from the RDA and then thereafter lease, sublet, rent, or allow the use of the Property by eligible third parties to further ADVOCAP's mission of creating opportunities for people and communities to reduce poverty and increase self- sufficiency. All actions related to the Property shall be solely for ADVOCAP's purposes and under no circumstance shall ADVOCAP state or imply that its programs are joint efforts or legal partnerships with the RDA or City of Oshkosh. ADVOCAP is wholly responsible through agreements with others, and actions related to the use of the Property by others, for ensuring that its agreements and the use of the Property complies with all local, state, and federal laws. ADVOCAP shall not enter into any agreements related to the use and/or occupancy of the Property for a term that exceeds the term of this Lease Agreement. 5. Term. Three (3) years, effective June 1,2018, and terminating May 31,2021, unless terminated earlier according to the terms of this Lease Agreement. 1 May 4, 2018 6. Rent. One dollar ($1) and other good and valuable consideration for each year of this Lease Agreement. 7. Security Deposit. n/a 8. Utilities. ADVOCAP is responsible for all utility costs, charges, and fees associated with the Property. ADVOCAP may enter into subsequent agreements or arrangements with third parties who may use the Property regarding payment of utilities and services related to the Property. However, ADVOCAP shall always be responsible to the RDA for paying all utility costs, charges, and fees related to the property arising during the term of this Lease. 9. Property Condition. ADVOCAP is leasing the Property as-is. The appliances currently on the property are of unknown condition. ADVOCAP may use or dispose of the appliances at its sole discretion. Disposal of appliances shall be at ADVOCAP's expense, and ADVOCAP is not responsible for providing replacement appliances for the Property upon termination of this Lease Agreement. The RDA is unaware of current building code, or municipal code, violations,but makes no warranties or guaranties that the Property is fully code compliant. The RDA makes no warranties or guaranties, express or implied, that the Property is suitable for any particular lawful purpose, or for any of ADVOCAP's intended uses. ADVOCAP will be provided the opportunity to fully and freely inspect all parts of the Property and then determine potential lawful uses. In the event that the Property is not suitable for ADVOCAP's intended purposes, then ADVOCAP may elect to terminate this Lease Agreement according to the termination provisions herein. 10.Property Maintenance/Repairs. ADVOCAP is fully responsible for all maintenance and repairs during the term of this Lease Agreement. ADVOCAP's responsibilities include both structural and cosmetic maintenance and repairs that are required, or desired, for their use of the Property. Structural maintenance and repairs is intended to be interpreted in its broadest definition and includes,without limitation, the building shell including roof, HVAC, electrical, and plumbing. All expenses related to the Property that are incurred by ADVOCAP, shall remain the responsibility of ADVOCAP, shall remain with the Property even after the termination/expiration of this Lease Agreement, and are not subject to reimbursement by the RDA or the City of Oshkosh. ADVOCAP shall notify the RDA before undertaking any structural maintenance or repairs. No notice to the RDA is required before undertaking any cosmetic, or issues related to normal wear and tear of the Property. 2 May 4, 2018 11.RDA/City Access. Under most circumstances the RDA and/or City representatives will not need to access the Property, as all matters related to the use and/or occupancy of the Property will be between ADVOCAP and their tenants, guests, or other third parties allowed to enter and/or use the Property with ADVOCAP's permission. However, in the event of any structural maintenance or repairs of the Property, the RDA and/or City personnel shall have the right,but not the obligation, to accompany ADVOCAP employees, agents, volunteers, consultants, contractors, or others to observe, inspect, assess, and analyze any issue related to the structure of the Property. 12.Termination. Under no circumstance is ADVOCAP eligible to terminate this Lease Agreement while any other agreement related to the Property that ADVOCAP has entered into remains in effect. In all other circumstances, either party may terminate this Lease Agreement for any reason after providing thirty (30) days written notice. Upon termination of this Lease Agreement, ADVOCAP is responsible for removing all personal property from the Property. 13.Compliance with all Laws. ADVOCAP is responsible for making sure that all local, state, and federal laws are being followed related to any use or occupancy of the Property that is the result or related to actions taken by ADVOCAP. This includes, without limitation,building, zoning, fire, and property maintenance codes, as well as residential rental requirements, lead paint requirements, and Americans with Disabilities Act requirements, to the extent those laws apply to any particular circumstance. 14.Lead Paint. The structures on the Property were constructed on or around 1920 and, therefore, may be subject to certain lead paint notifications. ADVOCAP is responsible for any required lead paint notifications as well as any actions related to lead paint. 15.Notice of Violation or Breach. In the event that the RDA is notified, or otherwise learns, that there are any violations of local, state, or federal law related to ADVOCAP's use, occupancy, or actions related to this Lease Agreement, then the RDA will in turn notify ADVOCAP of the issue as soon as practicable and ADVOCAP will be responsible for resolving the issue, at its cost,within 30 days, or within the timeframe required of any agency, department, court, or governmental entity, whichever is sooner. 16.Hold Harmless and Indemnity. ADVOCAP shall hold the RDA and City of Oshkosh harmless for the violations of any local, state, or federal law, and for any damages, 3 May 4, 2018 forfeitures, penalties, inters, or other injuries related to ADVOCAP's actions related to the Property. ADVOCAP shall indemnify the RDA and City of Oshkosh for any damages, costs, or fees incurred by the RDA or the City related to ADVOCAP's actions related to the Property. E 17.Insurance. ADVOCAP shall maintain property and liability insurance that the RDA deems sufficient to cover its obligations pursuant to this Lease Agreement. No actions can be taken until the RDA approves ADVOCAP'S insurance coverage, and a Certificate of Insurance that is approved is submitted to the RDA. The RDA and City of Oshkosh shall be identified as additional insureds on the ADVOCAP policy. 18.Assignment. ADVOCAP may assign this Lease Agreement to another similarly situated non-profit entity upon the approval of the RDA, and such approval shall not be unreasonably withheld. Under no circumstance shall this Lease Agreement be assigned to any individual or any for-profit entity. 19.Choice of Law. The laws of the State of Wisconsin will be used to interpret and enforce this Lease Agreement. The location of any dispute resolution related to this Lease Agreement shall be Winnebago County, Wisconsin, or any court district within which Winnebago County is located. 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