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HomeMy WebLinkAboutRDA Agenda 5.6.19 REDEVELOPMENT AUTHORITY of the City of Oshkosh H.ALLEN DAVIS c/o Community Development Department Executive Director 215 Church Ave.,PO Box 1130 CE Oshkosh Oshkosh,WI 54902-1130 LORI PALMERI (920)236-5055 Chairman (920)236-5053 FAX http://www.ci.oshkosh.wi.us REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH Special Meeting City Hall Room 404 4:00 p.m. May 6th, 2019 1) ROLL CALL a. Appoint Chairman b. Elect Vice Chairman 2) CONSENT: Approve Minutes from March 20, 2019 3) NEW BUSINESS ➢ 19-10 Award Bid to Environet Inc. for Asbestos Abatement at 421 Monroe Street for Community Development ($4,755.00) ➢ 19-11 Determination of Necessity; Establish Fair Market Value;Authorize Purchase—Vacant Parcel Adjacent to Pioneer Drive and Canadian National Railroad Tracks between 61h and 10th Avenue ($1,500,000) 4) ADJOURNMENT REDEVELOPMENT AUTHORITY MINUTES March 20,2019 PRESENT: Thomas Belter, Jack Bermingham, Steve Cummings, Steve Hintz, Jason Lasky Archie Starn EXCUSED: Susan Panek STAFF: Allen Davis, Executive Director/Community Development Director; Darlene Brandt, Grants Coordinator;Andrea Flanigan,Recording Secretary; Chairman Cummings called the meeting to order at 4:00 pm. Roll call was taken and a quorum declared present. The minutes of February 4, 2019 and March 7, 2019 closed session were approved as distributed. (Belter/Stam). Public Hearing: Spot Blight Designation 672 Jefferson Street Chairman Cummings opened the public hearing on the proposed spot blight designation for 672 Jefferson Street. No one appeared and the public hearing was closed. Res. 19-06 Approve Spot Blight Designation; Approve Acquisition of Property at 672 Jefferson Street($47,000) Motion by Hintz to move Res. 19-06 Seconded by Bermingham. Mr. Belter asked how blighted is the condition of the property. Ms. Brandt stated it would require significant investment to rehab the house and the City would not see a return on the property. Mr. Davis stated the RDA owns property on the west side of Jefferson Street across from 672 Jefferson. The RDA has expressed concern for the houses on the east side of Jefferson Street. The item was called. Motion carried 6-0. RDA Minutes March 20,2019 Page 1 Public Hearing: Spot Blight Designation 857 W. 91h Avenue Chairman Cummings opened the public hearing on the proposed spot blight designation for 857 W. 9th Avenue. No one appeared and the public hearing was closed. Res. 19-07 Approve Spot Blight Designation; Approve Acquisition of Property at 857 W. 91h Avenue ($21,000) Motion by Stam to move Res. 19-07. Seconded by Belter. Mr. Davis stated the City adopted a corridor plan for 9th Avenue and South Park Avenue. The plan identifies improving the appearance of the 9th Avenue corridor. 857 W. 91h Avenue was one of the properties that met the criteria for blighted properties along 9th Avenue and became available after the plan was adopted. The item was called. Motion carried 6-0. Res.19-08 Authorize Submittal of Site Assessment Grant Application to WEDC;Accept Funds— South Shore Redevelopment Area 43 E. 71h Avenue Motion by Hintz to move Res. 19-08. Seconded by Bermingham. Mr. Hintz inquired if having putting in two applications for the same grant will affect the chances of being awarded. Mr.Davis stated WEDC has said there are enough funds to cover both grants if awarded. Mr. Lasky inquired what the limitations are if the City is awarded the$150,000. Mr. Davis responded the costs must be grant eligible. There are plenty of costs with asbestos abatement and demolition that there would not be a problem reaching$150,000 in eligible costs. Mr. Belter inquired since this was matching where would the City money come from? Mr. Davis responded there is 2019 CIP money set aside from TIF 20. The item was called. Motion carried 6-0. RDA Minutes March 20,2019 Page 2 19-09 Authorize Submittal of Site Assessment Grant Application to WEDC on Behalf of Merge, LLC;Accept Funds—Marion and Pearl Redevelopment Area;Parcels H and I Motion by Belter to move Res. 19-09. Seconded by Stam. Ms. Brandt stated the RDA is applying on behalf of the applicant. Merge, LLC will be responsible for the matching funds. Mr. Lasky inquired why Parcel J was not included in the grant. Ms. Brandt stated Parcel J was not included in the grant because there cannot be a known causer of potential contaminants. Murphy Concrete who is still in business used to be on Parcel J and is therefore not eligible. The item zeas called. Motion carried 6-0. Executive Director's Report Mr.Davis provided updates to the RDA from the Executive Director's Report. There was no further discussion. The meeting adjourned at approximately 4:26 PM. (Belter/Stam) Respectfully submitted, Allen Davis Executive Director RDA Minutes March 20,2019 Page 3 REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH,WISCONSIN MAY 6, 2019 19-10 RESOLUTION (CARRIED LOST LAID OVER WITHDRAWN ) PURPOSE: AWARD BID TO ENVIRONET INC. FOR ASBESTOS ABATEMENT AT 421 MONROE STREET FOR COMMUNITY DEVELOPMENT ($4,755.00) WHEREAS, the City of Oshkosh has heretofore advertised for bids for asbestos abatement; and WHEREAS, upon the opening and tabulation of bids, it appears that the following is the most advantageous bid: ENVIRONET INC 2909A Green Hill Court Oshkosh, WI 54904 Total Bid: $4,755.00 NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Authority of the City of Oshkosh that the said bid is hereby accepted and the proper City officials are hereby authorized and directed to enter into an appropriate agreement for the purpose of same, all according to plans, specifications, and bid on file. Money for this purpose is hereby appropriated from: Acct. No. 0303-0740-6401 Community Develop Block Grant-Contractual Services TO: City of Oshkosh Redevelopment Authority FROM: Allen Davis, Community Development Director DATE: May 1, 2019 SUBJECT: 19-10 Award Bid to Environet Inc. for Asbestos Abatement at 421 Monroe Street for Community Development ($4,755.00) BACKGROUND The property at 421 Monroe Street was under orders by the City to raze or repair. The RDA acquired the property in June 2018 when the owner offered to donate the property. City staff evaluated the potential to rehabilitate the vacant house and found it cost prohibitive, so the process for demolition was started with an asbestos inspection. Based on the asbestos inspection, it was recommended bids be requested for abatement. ANALYSIS Purchasing prepared bid specifications for the asbestos abatement and the bid was posted on DemandStar. Bids were due April 16, 2019. It is the consensus of staff that the low bid received for the asbestos abatement be recommended for award. The low bid for this work is $4,755.00 from Environet Inc. The bid tab is attached. FISCAL IMPACT CDBG funds are available for asbestos abatement at 421 Monroe Street. RECOMMENDATION Staff recommends awarding the asbestos abatement bid to Environet Inc. for $4,755.00. Common Council awarded the bid at the April 23rd meeting. BID TAB ASBESTOS ABATEMENT 421 MONROE STREET PLANNING DIVISION BIDS OPENED APRIL 16,2019 NAMES OF BIDDERS BID PREQUAL KPH Environment Corp 1237 W Bruce Street $12,231.84 YES Milwaukee WI 53204 Airtite Environment Services LLC 208 S 16th Court $13,600.00 YES Wautoma WI 54982 AD/MS LLC 49 W 11th Ave $10,220.00 YES Oshkosh WI 54902 Balestrieri Group 1538 Country Club Pkwy $17,335.00 YES Ells Horn WI 53121-3999 Advance Asbestos Removal 1063 County Rd FF $4,900.00 YES Oshkosh WI 54904 x Environet Inc u ` � 2909A Green Hill Court ,75 00 r YES Oshkosh WI 54904= Brothers Royal Cleaning LLC 1216 S 23rd Street $5,340.00 YES Milwaukee WI 53204 REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH,WISCONSIN MAY 6, 2019 19-11 RESOLUTION (CARRIED LOST LAID OVER WITHDRAWN ) PURPOSE: DETERMINATION OF NECESSITY; ESTABLISH FAIR MARKET VALUE; AUTHORIZE PURCHASE — VACANT PARCEL ADJACENT TO PIONEER DRIVE AND CANADIAN NATIONAL RAILROAD TRACKS BETWEEN 6TH AND 10TH AVENUE ($1,500,000) WHEREAS, the Redevelopment Authority previously approved the South Shore Redevelopment Area; and WHEREAS, it is in the best interests of the citizens of the City of Oshkosh to acquire property within the boundaries of said Redevelopment Area to assist in the elimination and prevention of blighting influences and promote urban renewal; and WHEREAS, the property and interest to be acquired includes land and buildings, if any, exclusive of equipment and fixtures both movable and immovable, and is described as: 0 E. 91h Avenue-Decades Monthly Income & Appreciation Fund THAT PART OF THE SOUTHWEST 1/40F SECTION 24-18-16 ALSO THAT PART OF BLOCKS 11, 12, 14 AND 18 AND THAT PART OF VACATED EAST 7TH AVENUE, VACATED EAST 8TH AVENUE, VACATED EAST 9TH AVENUE AND VACATED INDIANA STREET IN DOCUMENT #469929 RECORDED AT THE REGISTER OF DEEDS PLAT OF THE ORIGINAL 3RD WARD, 3RD WARD, CITY OF OSHKOSH, WINNEBAGO COUNTY, WISCONSIN (TAX #903-0133-0200) 0 Pioneer Drive-Decades Monthly Income &Appreciation Fund THAT PART OF THE SOUTHWEST 1/40F SECTION 24, TOWNSHIP 18 NORTH, RANGE 16 EAST OF THE 4TH PRINCIPAL MERIDIAN, IN THE ORIGINAL 3RD WARD DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF EAST LINE OF SOUTH MAIN STREET AND THE ESTABLISHED HARBOR LINE ALONG THE SOUTHERLY SHORE OF THE FOX RIVER; SAID INTERSECTION IS 206.68 FEET NORTH AND 60 FEET EAST OF THE NORTHEAST CORNER OF BLOCK 6 IN SAID MAY 6, 2019 19-11 RESOLUTION CONT'D 3RD WARD; THENCE SOUTH 55 DEGREES 28' EAST, 917.60 FEET ALONG SAID HARBOR LINE TO THE POINT OF BEGINNING; THENCE SOUTH 43 DEGREES 13' EAST, 338.01 FEET TO A POINT NORTH 73 DEGREES, 06' WEST, 70 FEET FROM CENTER LINE OF THE OLD MAIN TRACK OF THE CHICAGO AND NORTHWESTERN RAILWAY COMPANY; THENCE NORTH 16 DEGREES, 54' EAST ALONG A LINE PARALLEL WITH THE SAID MAIN TRACK, 75.26 FEET TO SAID HARBOR LINE; THENCE 55 DEGREES, 28' WEST ALONG SAID HARBOR LINE, 307.51 FEET TO POINT OF BEGINNING 3RD WARD, CITY OF OSHKOSH, WINNEBAGO COUNTY, WISCONSIN (TAX #903-0611-0000) NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Authority of the City of Oshkosh that the Authority certifies that in order for said purpose to be accomplished, it is necessary for the properties described above to be acquired. It is further determined by the Authority that acquisition of said properties is hereby determined necessary pursuant to the provisions of Chapters 32 and 66 of the Wisconsin Statutes. BE IT FURTHER RESOLVED that the combined value of the properties to be acquired, as described above, is hereby established at One Million Five Hundred Thousand Dollars ($1,500,000.00). Money for this purpose is appropriated from City of Oshkosh Capital Improvement Program Funds. BE IT FURTHER RESOLVED that the proper Redevelopment Authority officials are authorized and directed to purchase said properties and execute all documents necessary to consummate this transaction. TO: City of Oshkosh Redevelopment Authority FROM: Allen Davis, Community Development Director DATE: May 2, 2019 SUBJECT: 19-11 Determination of Necessity; Establish Fair market Value;Authorize Purchase—Vacant Parcel Adjacent to Pioneer Drive and Canadian National Railroad Tracks between 6th and 101h Avenue ($1,500,000) BACKGROUND The City/RDA have been acquiring and demolishing blighted properties in accordance with the Southshore Redevelopment Plan since 2003. During that time, the RDA has acquired six parcels around 7th, 8th and 91h Avenues, east of Main Street and is in the process of demolishing the blighted buildings. At this time, two parcels remain in private hands in this section of the redevelopment district. One of the parcels, with no building to demolish and owned by Decades Properties, has been offered to the City/RDA for sale for $1,500,000. Decades Properties owns the Pioneer Island and Marina as well. Local developer, Art Dumke, holds the option on all three pieces that Decades owns, and he has indicated that he is willing to allow this parcel to be sold separately to the City/RDA. Mr. Dumke would retain the option on the Pioneer Island and Marina. ANALYSIS The City owns Pioneer Drive east from Main Street to the railroad. Over the last 15 years, the City/RDA has purchased the six surrounding properties for about$2,150,000. In addition, the City has spent about$400,000 for demolition and another $400,000 could be required for additional demolition. The total acquisition and demolition costs for the six surrounding properties totals about$3,000,000. The purchase price and demolition costs for the surrounding properties have been: South Shore Redevelopment Acquisitions ...._. .._ .. _._._ ... _......_ .. .......... ...-_._ _.__..._. Property Price Square Feet Price/Sq.Ft Total _...... __... .. .! RDA: 43 E.7th Ave $ 780,000.00 71,874 $ 10.85 plus demo of$4 to$5/sq.ft. 14.85-1 5.85/sq.ft. RDA: 1 E.&37 E.8th Ave $ 848,000.00 : 112,964 ; $ 7.51 plus demo of$4/sq.ft.in 2010 11.51lsq.ft. - - ._ _ RDA: RR Property along Decades $ 225,000.00 82,794 $ 2.72 no demo in 2008 2.72/sq.ft. Decades Property $1,500,000.00 121,968 $ 12.30 no demo 12.30/sq.ft. The proposed Decades parcel purchase price would be similar to or less than the combined acquisition and demolition costs of 1 E. 81h and 43 E. 71h• Ave. In the Decades case, the building was demolished in the 1960s, and the City will avoid asbestos abatement, demolition costs and tipping fees. The assessed value of the Decades property is $183,100. The City has ordered an appraisal of the property which should be available on or before May 10, 2019. The diamond shaped parcel contained within the Decades parcel is owned by WPS and City staff is working with WPS staff to acquire the diamond shaped lot as well. The proposed purchase addresses the concern potential developers have expressed regarding the Redevelopment Proposals for the 43 E. Th parcel. The City received no Proposals for the property in response to the RDA's Request for Proposals last year. The property at 43 E. Th and 1 E. 81h will not likely be redeveloped until the parcel of land that Decades owns is incorporated into the redevelopment site. Staff is prepared to issue another Request for Proposals after the Decades parcel is acquired, at the RDA's direction. Mr. Dumke also reports that the sale price for remaining Pioneer parcels would be reduced by$1,500,000 which makes the redevelopment of the Pioneer Island and Marina more feasible. FISCAL IMPACT The City Finance Director has identified the funding sources for the purchase with a combination of Fund Balance and Capital Improvement Program acquisition/blight removal funds. 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