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Home My WebLink About19-11 REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH,WISCONSIN MAY 6, 2019 19-11 RESOLUTION (CARRIED LOST LAID OVER WITHDRAWN ) PURPOSE: DETERMINATION OF NECESSITY; ESTABLISH FAIR MARKET VALUE; AUTHORIZE PURCHASE - VACANT PARCEL ADJACENT TO PIONEER DRIVE AND CANADIAN NATIONAL RAILROAD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. 9th 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 1/4 OF 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 61h and loth 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 81hand 9th 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. 14.85-15.85/sq.ft. RDA: 1 E.&37 E.8th Ave $ 848,000.00 112,964 $ 7.51 plus demo of$4/sq.ft.in 2010 11.51/sq.ft. _ . RDA: RR Property along Decades $ 225,000.00 82,794 $ 2.72 no demo in 2008 2.72/sq.ft. LL 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. 7th. 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. RECOMMENDATION The RDA approves the Determination of Necessity, Establishes Fair Market Value, and Authorizes purchase of the vacant parcel. 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