HomeMy WebLinkAbout10. 18-581 DECEMBER 11, 2018 18-581 RESOLUTION
(CARRIED 7-0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE TERMINATION OF LEASE AGREEMENT BETWEEN
CITY OF OSHKOSH AND REDEVELOPMENT AUTHORITY
PERTAINING TO MARION ROAD/PEARL AVENUE
REDEVELOPMENT AREA LEASE REVENUE BONDS
INITIATED BY: CITY ADMINISTRATION
WHEREAS the Redevelopment Authority and City of Oshkosh are the parties to a
Lease Agreement dated June 1, 2006, and recorded with the Winnebago County Register
of Deeds on June 30, 2006, as Document Number 1403049. The Lease benefited both the
Redevelopment Authority and the City of Oshkosh through its purpose of facilitating the
issuance of certain municipal bonds and the resulting improvements to be constructed
within the Marion Road /Pearl Avenue Redevelopment Area; and
WHEREAS after the parties entered into the Lease Agreement, certain parcels
within the Redevelopment Area were improved and conveyed to private entities with
the approval of both the City of Oshkosh and the Redevelopment Authority. The process
for conveying parcels to private entities included their removal as Leasehold Properties
from the Lease through a series of Supplement to Lease for Sale of Leasehold Property
documents; and
WHEREAS the City of Oshkosh has paid the municipal bonds pertaining to this
Marion Road / Pearl Avenue Redevelopment Area in full on or around August 1, 2016,
and by doing so satisfied the underlying purpose which caused the City of Oshkosh and
the Redevelopment Authority to enter into the Lease ; and
WHEREAS as of the date of this Termination Agreement, the Redevelopment
Authority retains ownership of three (3) parcels which have not yet been redeveloped or
conveyed to private parties and, therefore, remain subject to the Lease Agreement. These
remaining parcels subject to the Lease Agreement are more particularly described as:
DECEMBER 11, 2018 18-581 RESOLUTION
CONT'D
PORTION OF PARCEL H
Lot 2 of Certified Survey Map Number 6553, recorded with the Winnebago County
Register of Deeds on August 5, 2011, as Document Number 1577796 being part of the
Southeast 1/4 of the Northeast 1/4 and part of the Northeast 1/4 of the Southeast 1/4, in the
First Ward, Section 23, Township 18 North, Range 16 East, City of Oshkosh, Winnebago
County, Wisconsin.
PARCUT T
Lot 2 of Certified Survey Map Number 7150, recorded with the Winnebago County
Register of Deeds on October 7, 2016, as Document Number 1724920, being part of the
Southeast 1/4 of the Northeast 1/4 and part of the Northeast 1/4 of the Southeast 1/4, in the
First Ward, Section 23, Township 18 North, Range 16 East, City of Oshkosh, Winnebago
County, Wisconsin.
PARCEL I
Lot 3 of Certified Survey Map Number 7068, recorded with the Winnebago County
Register of Deeds on March 28, 2016, as Document Number 1709684, being part of the
South 1/2 of the Northeast 1/4 and part of the North 1/2 of the Southeast 1/4, in the First Ward,
Section 23, Township 18 North, Range 16 East, City of Oshkosh, Winnebago County,
Wisconsin
WHEREAS with the payment in full of the municipal bonds, the City of Oshkosh
and Redevelopment Authority desire to formally terminate the Lease Agreement to
facilitate the improvement of the remaining three (3) undeveloped parcels within the
Redevelopment Area.
NOW THEREFORE BE IT RESLOVED by the Common Council of the City of
Oshkosh that Lease Agreement between the City of Oshkosh and Redevelopment
Authority is hereby terminated and the proper City officials are hereby authorized and
directed execute any and all documents necessary for purposes of same, and to carry out
all actions necessary to implement the City's obligations under the Termination of Lease
Agreement and in consideration of the mutual promises contained herein, the City of
Oshkosh and Redevelopment Authority agree as follows:
DECEMBER 11, 2018 18-581 RESOLUTION
CONT'D
1. The Lease Agreement is terminated in its entirety and without reservation or
exclusion as of the date of this Termination Agreement.
2. Notwithstanding any actual or implied provision of this Termination
Agreement, it is not the intent of the City of Oshkosh or Redevelopment
Authority to alter, affect, change, or modify any other agreement,
understanding, or obligation affecting either the City of Oshkosh or
Redevelopment Authority.
3. This Termination Agreement shall be for the benefit of, and shall be binding
upon, the City of Oshkosh, Redevelopment Authority, and their respective
successors, heirs, executors, administrators, and assigns.
4. There shall be no termination payment or compensation owed by any Party
to this Termination Agreement
TO: Honorable Mayor and Members of the Common Council
FROM: Allen Davis, Community Development Director
DATE: December 6, 2018
RE: Approve Termination of Lease Agreement between the City of Oshkosh and
Redevelopment Authority pertaining to Marion Road/Pearl Avenue
Redevelopment Area Lease Revenue Bonds
BACKGROUND
In 2006, The City and RDA used $6,000,000 in Lease Revenue Bonds (LRB) to finance
redevelopment activities in the Marion Road/Pearl Avenue Redevelopment Area. As part of
the LRB requirements, the City, RDA and US Bank (LRB buyer) created a Lease Agreement
that included all the parcels in the Redevelopment Area.
Since that time, Tax Increment Financing District #21 paid off all the LRBs in 2016. Since the
LRBs have been paid off, there is no reason to keep the lease agreement in effect since the lease
agreement was only created for the benefit of using LRB as a financing tool.
ANALYSIS
There are three lots left to sell in the Marion Road/Pearl Avenue Redevelopment Area. City
staff has identified the remaining lease agreement as an impediment to the future title
commitments and closings for the future lots sales. The three lots include the Jackson/Marion
corner lot, the Jackson/Pearl corner lot, and the lot south of the new water tower.
The RDA has granted an option to two of the three lots, and if the options are executed, these
lease agreements would require additional approvals by the City and US Bank. Terminating
the lease agreement would clean up the title work and closing process.
FISCAL IMPACT
There is no fiscal impact. The LRBs have been repaid and the RDA will retain ownership of
the remaining vacant lots.
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
RECOMMENDATION
The City Council approves the Termination of Lease Agreement between the City of Oshkosh
and Redevelopment Authority pertaining to Marion Road/Pearl Avenue Redevelopment Area
Lease Revenue Bonds.
Submitted, Approved:
Allen Davis Mark A. Rohloff
Community Development Director City Manager
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
Marion Road/Pearl Avenue Redevelopment Project: Phase 11 Development Guidelines 10
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Marion Road/Pearl Avenue Redevelopment Project: Phase 11 Development Guidelines 10
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