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Home My WebLink About26. 19-290 MAY 14, 2019 19-290 RESOLUTION (CARRIED 7-0 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE DETERMINATION OF NECESSITY; APPROVE BUDGET AMENDMENT AND FUND TRANSFER; AUTHORIZE REDEVELOPMENT AUTHORITY TO ACQUIRE VACANT PARCELS ADJACENT TO PIONEER DRIVE AND CANADIAN NATIONAL RAILROAD TRACKS BETWEEN 6TH AND 10TH AVENUE ($1,500,000.00) INITIATED BY: COMMUNITY DEVELOPMENT REDEVELOPMENT AUTHORITY RECOMMENDATION: Approved WHEREAS, the Redevelopment Authority and Common Council previously approved the South Shore Redevelopment Project Area; and WHEREAS, it is in the best interests of the citizens of the City of Oshkosh to acquire property to improve residential neighborhoods and eliminate blighting conditions within said Redevelopment Area; and WHEREAS, the owner of the vacant parcels adjacent to Pioneer Drive and Canadian National railroad tracks between 61h Avenue and 101h Avenue, is willing to sell the properties to the Redevelopment Authority; and WHEREAS, the Redevelopment Authority approved acquiring said property for $1,500,000.00 plus closing costs at its May 6, 2019 meeting. WHEREAS, the Common Council has previously approved the City's Operating Budget, Capital Improvement Budget and TIF Budgets for 2019 and it is MAY 14, 2019 19-290 RESOLUTION CONT'D necessary to amend such Budgets and to transfer funds for the purpose of funding the purchase of this property. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the Common Council certifies it is necessary for the Redevelopment Authority to acquire the vacant properties adjacent to Pioneer Drive and Canadian National railroad tracks between 61h Avenue and 101h Avenue pursuant to the provisions of Chapter 66 of the Wisconsin Statutes. BE IT FURTHER RESOLVED that the 2019 Operating and Capital Improvement Budgets are hereby amended to transfer the following funds to account number 901-0999- 7208 Land Purchases: General Fund Balance Advance - $1,100,000.00 2019 CIP/South Shore Redevelopment - $200,000.00 2019 CIP/Slight Removal - $200,000.00 BE IT FURTHER RESOLVED that the proper Redevelopment Authority officials are authorized and directed to purchase said properties for a total of $1,500,000.00 plus closing costs and execute all documents necessary to consummate this transaction. Money for this purpose is hereby appropriated from the following account: Acct. No. 901-0999-7208 Land Purchases TO: Honorable Mayor and Members of the Common Council FROM: Allen Davis Community Development Director DATE: May 9, 2019 RE: Approve Determination of Necessity; Authorize Redevelopment Authority to Acquire Vacant Parcels Adjacent to Pioneer Drive and Canadian National Railroad Tracks between 6th and 10th 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 could total about $3,000,000. The purchase price and demolition costs for the surrounding properties have been: South Shore Redevelopment Acquisitions Decades Property $ 1,500,000.00 Feet Price/So. Ft Total 71,874 $ 10.85 plus demo of $4 to $5/sq.ft. 14.85 - 15.85/sq.ft. 112,964 $ 7.51 plus demo of$4/sq.ft. in 2010 11.51/sq.ft. 82,794 $ 2.72 no demo in 2008 2.72/sq.ft. 121,968 $ 12.30 no demo City Hall, 215 Church Avenue P.O. Box 1 130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us The proposed Decades parcel purchase price would be similar to or less than the combined acquisition and demolition costs of 1 E. 8th 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 received an appraisal of the property which the Council will receive under separate cover. The Appraiser had difficulty in locating comparable properties based on the unusual shape and site circumstances. The Appraiser's value for the parcel is $800,000 before assemblage with other RDA parcels, $1,850,000 when combined with other RDA parcels, and $1,050,000 as the Final Value Opinion. 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. 8th 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 Council approves determination of necessity and authorizes RDA to acquire the vacant parcel for $1,500,000. ResA y Submitted, a ✓ i,/ Allen Davis Community Development Director Approved: Mark A. Rohloff City Manager City Hall, 215 Church Avenue P.O. Box 1 130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us 2019 CAPITAL IMPROVEMENT PROGRAM & COMMUNITY DEVELOPMENT NON -LEVY BUDGET ADJUSTMENTS PROPOSED AMENDMENT: 05.14.19 Res 19-290 GENERAL FUND BALANCE ADVANCE 2019 CIP / SOUTH SHORE REDEV 534-1040-7216-67906 2019 CIP / BLIGHT REMOVAL 323-0740-6401-63920 TOTAL TO RDA ACCOUNT 901-0999-7208 Add: Decades property acquisition; adjacent to Pioneer Dr & Canadian National RR tracks Funding: General Fund Balance Advance to 901-0999 1,100,000 1,500,000 Moving 2019 CIP/South Shore Redevelopment to 901-0999 200,000 Moving 2019 CIP/Blight removal (scattered sites) to 901-0999 200,000 PI II)11j"n g �s. IJ: -I City of Oshkosh maps and data are intended to be used for general identification purposes only, and the City of Oshkosh assumes no liability for the accuracy of the information. Those using the information are responsible for verifying accuracy. For full disclaimer please go to www.ci.oshkosh.wi.us/GlSdisclaimer 1:\GIS\GIS Base MaosMannina Base Map.mxd N A 1 in=0.03 mi Alin=133ft Printing Date: 5/2/2019 Prepared by: City of Oshkosh, WI Oshkosh ? J -I r) rj ,j r) g ED '.I J : � A City of Oshkosh maps and data are intended to be used for general identification purposes only, and the City of Oshkosh assumes no liability for the accuracy of the information. Those using the information are responsible for verifying accuracy. For full disclaimer please go to www.ci.oshkosh.wi.us/GlSdisclaimer 1.x ,IC\f,IS Rosa H—a Pl—i— R.— NA— —q N 1in=0.03 mi 1 in= 133ft Printing Date: 5/2/2019 Oshkosh Prepared by: City of Oshkosh, WI I Isar a