HomeMy WebLinkAbout18-19 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 Ci� of !'
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Oshkosh and ment Redevelop �'Authori pertaining to Marion Road Pearl
Avenue Redevelopment Area Lease Revenue Bonds
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BACKGROUND
In 2006, The City and RDA used $b 000 000 i Lease Revenue Bonds {LRB} tofin 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.
ANALYSIS
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There are three lots left to sell in the Marion Road/Pearl Avenue Redevelopment Area. lot
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 agreements 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.
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.
REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH,WISCONSIN
DECEMBER 17, 2018 18-19 RESOLUTION
(CARRIED LOST LAID OVER WITHDRAWN
PURPOSE: APPROVE TERMINATING LEASE AGREEMENT BETWEEN CITY
OF OSHKOSH AND REDEVELOPMENT AUTHORITY
PERTAINING TO MARION ROAD PEARL AVENUE
REDEVELOPMENT AREA LEASE REVENUE BONDS
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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 17, 2018 18-19 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.
PARCEL
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 andp art 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.
PARCELJ
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 RESOLVED by the Redevelopment Authority 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 to 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 he-rein, the City
of Oshkosh and Redevelopment Authority agree as follows:
DECEMBER 17, 2018 18-19 RESOLUTION
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CONT'D
E:
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 j
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.
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4. There shall be no termination payment or compensation owed by any Party
to this Termination Agreement
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