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HomeMy WebLinkAbout18-18 f I; TO: City of Oshkosh Redevelopment Authority FROM: Allen Davis, Community Development Director DATE: December 10, 2018 SUBJECT: 18-18 Approve Terminating Assignment of Lease and Rents between US Bank and the Redevelopment Authority related to Marion Road Pearl Avenue Redevelopment Area Lease Revenue Bonds 18-19 Approve Terminating of Lease Agreement between City of Oshkosh and Redevelopment Authority pertaining to Marion Road Pearl a 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 has paid off all the LRBs in 2016. Since the LRBs have been paid off, there is no reason to keep the lease agreements in effect since the lease agreements were only created for the benefit of using LRB as a financing tool. i i 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. i 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 agreements would clean up the title work and closing process. FISCAL IMPACT There i no fiscal impact. The LRBs have been repaid and the RDA will retain ownership of the remaining vacant lots. RECOMMENDATION The RDA approves Terminating Assignment of Lease and Rents between US Bank and the Redevelopment Authority related to Marion Road Pearl Avenue Redevelopment Area Lease Revenue Bonds and approves Terminating of Lease Agreement between the City of Oshkosh and Redevelopment Authority pertaining to Marion Road/Pearl Avenue Redevelopment Area Lease Revenue Bonds. I i REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH,WISCONSIN DECEMBER 17, 2018 18-18 RESOLUTION (CARRIED LOST LAID OVER WITHDRAWN ) E PURPOSE: APPROVE TERMINATING ASSIGNMENT OF LEASE AND RENTS BETWEEN US BANK AND THE REDEVELOPMENT AUTHORITY PERTAINING TO MARION ROAD/ PEARL AVENUE REDEVELOPMENT AREA LEASE REVENUE BONDS WHEREAS, the RDA leased the redevelopment property to the City of Oshkosh (City) to allow the City the opportunity to undertake redevelopment actions. The RDA's purpose was and remains the promotion of redevelopment of the property within the redevelopment area. The real property subject to the Lease is identified and described in Exhibit A attached hereto, with the lease including all redevelopment property, some of which has already been redeveloped and subsequently removed from the lease, while three (3) remaining parcels remain undeveloped and subject to the lease, and therefore subject to this Termination Agreement. The Lease was recorded with the Winnebago County Register of Deeds on June 30, 2006 as document number 1403049; and, WHEREAS, for the purpose of furthering redevelopment the City caused to be issued Taxable Redevelopment Lease Revenue Bonds, Series 2006, with the Assignee acting in the role of Trustee of these bonds; and, WHEREAS, as part of the bonding process, the RDA assigned its rights in its lease with the City as described in an Assignment of Lease and Rents (Assignment), and which Assignment was recorded with the Winnebago County Register of Deeds on June 30, 2006, as document number 1403050; and, WHEREAS, subsequent to the issuance of the Taxable Redevelopment Lease Revenue Bonds, the City, upon receiving the consent of the Assignee, proceeded with redevelopment activities and at various times sold certain redevelopment parcels to private entities for the purpose of completing the redevelopment in a manner which is consistent with the terms of all applicable agreements; and, i DECEMBER 17, 2018 18-18 RESOLUTION CONT'D WHEREAS, the City paid the Taxable Redevelopment Lease Revenue 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 Assignor and Assignee to enter into the Assignment Agreement. WHEREAS, as of the date of this Termination Agreement, the RDA 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 and Assignment of Lease and Rent Agreement. These remaining parcels subject to the Lease and the Assignment Agreements are more particularly described as: 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. PARCELI 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. PARCELT 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 City's payment in full of the Redevelopment Bonds the Assignee no longer retains an interest in the Redevelopment Area and the Assignor and Assignee desire to formally terminate the Assignment of Lease and Rents Agreement. DECEMBER 17, 2018 18-18 RESOLUTION CONT'D THEREFORE BE IT RESOLVED NOW O SOLV b the Redevelopment Authority of the Y P tY II City of Oshkosh that Assignment of Lease and Rents Agreement between US Bank and the Redevelopment Authority is hereby terminated and the proper Redevelopment Authority officials are hereby authorized and directed to execute any and all documents necessary for purposes of same, and to carry out all actions necessary to implement the Authority's obligations under the Agreement and in consideration of the mutual promises contained herein,US Bank and the Redevelopment Authority agree as follows: 1. The Assignment of Lease and Rents 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 Assignor or Assignee to alter, affect, change, or modify any other agreement, understanding, or obligation affecting either the Assignor or Assignee. 3. This Termination Agreement shall be for the benefit of, and shall be binding upon, the Assignor and Assigneenee and their respective heirs, executors, administrators, and assigns. 4. There shall be no termination payment or compensation owed by any Party to this Termination Agreement. 5. This Termination Agreement may be executed in multiple counterparts.