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HomeMy WebLinkAbout19-22 REDEVELOPMENT AUTHORITY OF THE CITY OF OSHKOSH, WISCONSIN JULY 17, 2019 19-22 RESOLUTION (CARRIED LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE OPTION TO PURCHASE VACANT LOT ON 4TH AVENUE AND MICHIGAN STREET;MORGAN DISTRICT, LLC BE IT RESOLVED by the Redevelopment Authority of the City of Oshkosh that the option to purchase submitted by Morgan District, LLC or its Assigns, for the vacant lot on 41" Avenue and Michigan Street is hereby accepted and the proper officials are hereby authorized and directed to execute any and all documents necessary for purposes of same. BE IT FURTHER RESOLVED that the terms of said option to purchase agreement shall include, but not be limited to: 1) Formal submittal of a proposal by December 31, 2020 with option for 6 month extension. 2) Approval of the final development plan by the Redevelopment Authority and Common Council. 3) Provide lending financing commitment. 4) Obtain project approval under Planned Development Overlay provisions. 5) Submittal of a scaled site plan detailing building elevations. 6) The option fee shall be One Dollar and NO/100 ($1.00). TO: City of Oshkosh Redevelopment Authority FROM: Allen Davis, Community Development Director DATE: July 10, 2019 SUBJECT: 19-22 Approve Option to Purchase Vacant Lot on 41h Avenue and Michigan Street; The Morgan District LLC Background The RDA owns the vacant lot on the northeast corner of Michigan and 411,Ave. which had been the old Boatworks boat and marina business. The RDA removed the old piers and dilapidated buildings and the vacant lot now adjoins the riverwalk, park and kayak/canoe launch. The City has maintained the "For Sale" signs on the property and The Morgan District development team has expressed interest in constructing additional residential units on the lot. There are multiple environmental issues that must be resolved for development on the vacant lot. Analysis The proposed residential development is generally consistent with the City's Southshore Redevelopment Plan and the City Comprehensive Plan. The environmental issues are common along the riverfront redevelopment. Among the known and possible issues are: hazardous waste contamination and remediation, unstable soils requiring geo-technical exploration and analysis and structural engineering studies, and floodplain surveying and map amendments to FEMA. The additional redevelopment costs could be partially off-set by grants from WEDC, like the Marion Road redevelopment grants the City obtained. The environmental, financial and floodplain issues will take a substantial investment in time and money. Recommendation The RDA approves the proposed offer to purchase for the vacant lot on the northeast corner of Michigan and 41h Avenue. Jif 1 NI /f IUIpy � %„ r 4000�*:, r, %%Z"/ 1 LIQ,� %o,>��,�r u����l� %ice ii y � . w,i " a, r , �. J w 4 . � ��I lin = C7.(l3nmi BUJ N 1in = 17ft /� �% ,r City of Oshkosh maps and data are intended to be used for general identification y purposes only,and the City of Oshkosh assumes no liability for the accuracy of the cif Date: 7/10/2019 Pt Printing information.Those using the information are responsible for verifying accuracy.For ,g t""` full disclaimer please go to .ci.oshl<osh,wi,us/GiSdisclaimer Prepared by:City of Oshkosh,WI P�C 1 I J:1GBS1GlS t3ase_Maps\Planoiing Baso Map.mxd User:andreat u Fill.1F�fi ._ . , w r y�S�a9 P a u CL IDMICL "` (s n �0 P_ ru �aG O'— jr � 1'"Q� f8a1aS31P1dI�N rJ6 uU PP C1�h4- tS V�� C:ll IRA .10 � � f M ` mom— U �. �— OPTION AGREEMENT FOR PURCHASE OF REAL PROPERTY THiS OPTION AGREEMENT("Agreement")nude anti entered into dais 101h day of Alne 2p l%by and between the Redevelopment Authority of the City of Oslikosh,whose principal address is 215 Chm-ch Avenue, Oshkosh WI 54903, Hereinafter referred to as "Seller' and The Morgan District, LLC, whose principal address is 615 S.Main Street Oshkosh,WI 54902,hereinafter referred to as"Purchaser", WITNCS SK1'1-1: WHEREAS, Seller is the fee simple owner of certain real property being,lying and situated in the County of Wimichago,State of Wisconsin,such real property having Pareci Ili of 90907840101 ("Premises")and such property tieing more particularly described as follows:LOT 2 CSM 6905#16792,13 R OF D,and also known as 362 Michigan St. WHKREAS,Purchaser desires to procure all aptioa to pwThase tire Premises upon file terms aad provisions as hereirrafter set forth; NOW'THEREFORE,for good and valuable consideration the receipt and sufficiency of►vhlch is hereby acknowledged by the parties hereto and for the mutual covenants contained herein,Seller and Purchaser Hereby agree as follows: 1.DEFINITIONS. For the purposes of this Agreement,(lie following terms shall have the following meanings. (a) "Execution Date"shall mean the day upon which the last party to this Agreement shall duly execute (Itis Agreement; (b) "Option Fee"shall mean the total sum of n clown payment of one-hundred percent(100%)of the total purchase Price of the Premises,payable as set forth below; (c) "OptionTerm"shallmeanthatlici•iadOftiutecoiniuencingoilfheExecutionDatefindendingoilor before December 31,2020 with all option for a six nionth extension; (d) "Option Exercise Date"shall inenn that date,within tiie Option Terni,upon whielt the Purcitaser shall send its written notice to Seller exercising its Option to Purchase; (e) "Closing Date"shall mean the last day of the closing term or such other date during the closing terns selected byPurchaser, 2. GRANTOF OPTION.For and in consideration of the Option Pee payable to Seller as set fortis herein,Seller does hereby grant to Pill-clinser 1116 exclusive right and Option ("'Option") to pru•chase the premises upon the terms and Conditions as set forth herein, 3. PAYMEIr T OF OPTION FEE.Purchaser agrees to pay the Sellcr a down payment of one-hundred percent (100%)of the total purchase price of tite Premises upon the Execution Date. 4. EXERCISE OF OPTION. Purchaser may exercise its exclusive right to purchase the Premises pursuant to file Option,tit airy time(luring file Option Term,by giving written notice thereof to Seller.As provided for above, (lie date of sending of said notice shall be the Option Exercise Date. In the event the Purchaser does not exercise its exclusive right to purchase the Premises granted by the Option (luring the Option Terra, Seller shall be entitled to retain the Option Fee,and this agreement shall becorue absolutely null and void and neither party hereto sliall have any other liability, obligation or duty herein under or pursuant to this Agreement, Furthermore,Purchnser's failure to establish nn Option Exercise Date our or before tie expiration oftlle Option Term shall terntiuntearitlextligrtfsh anyandall rightsand interesthl the Prerniseswitlout ftirthernotieeor ivithotitfrrrtbercloeuruenfalion, 111111eeventthePui-chaserfallstoexerelsehisrighttoPurchasepursualtttothis agreenientand the fame fordohtgso expires,tle,Sell ei.niayreq Ili re,atselier"ssole discretion,that Pul•cliaser•sign aliydocuntents necessary toconfi`in tletermilta#ion ofrights N thepreniisesorto otliei'ivisecleartiiisagrecnteut from tle title to thepremises. 5.CONTRACT FOR PURCHASE&SALE OF REAL PROPERTY, In 1110 eVellt t11at[lie Purchaser exercises its exclusive Option as provided for in tile preceding paragraph, Seller agrees to sell and Purchaser agrees to buy[lie Premises and both parties agree to execute a contract for such purchase and sale of the Premises in accordance witli the following teens and conditions: (a)Purchase Price,The purchase price for the Premises shall be the sunt of one dollar. however,Purchaser shall receive a credit toward such purchase price in the amount of the Option Fee thus, Purchaser shall pay to Seller at closing the sten of zero dollars($0); (b)Closing Date.The closing dateshall be on 31 December,2020 or it anyotherdate during the Option Term as may be selected by Purchaser; (c)Closing Costs.Purchaser's and seller's costs of closing the Contract shall be borne by Purchaser-, (d)The Premises shall be conveyed as-is without regard to any condition of the Premises,whether environmental or otherwise.Purchaser shall assume all risk for the condition of the Premises,Seller shall make the Premises reasonably available to the purchaser to inspect its condition upon request until the Option Exercise Date,or the terminalion of tine Option Tern),whichever occurstirst. (e)Default by Seiler;Remedies of Purchaser. In the event Seller fails to close the sale of the I'rehuises pursuant to the terms and provisions of this Agreement andlor under the Contract,Purchaser shall be entitled to either sue for specific performat►ce of the real estate purchase and sale contract,or tel urinate such Contract. In no circumstance shall the purchaser or any other person or entity be entitled to any monetary damages resulting from this Agreement,and will have no recourse against the Seller except as otherwise explicitly stated in this Agreement. (:t)Tile Premises shall be conveyed as-is without regard to any condition of the Premises,whether environmental or otherwise.Purchaser shall assume all risk for the condition of the Premises.Seller shall snake the Premises reasonably available to the purchaser to Inspect its condition upon request until tine Option Exercise Date,or(lie termination of the Option Terni,whichever occurs first. 6. MISCELLANEOUS. (a)Execution by Both Parties.This Agreement shall not become effective and binding until fully executed by both Purchnser and Seller, (b)Notice,All notices,demands and/or consents provided for in this Agr"ment shall be in writing and shall be delivered to tine parties hereto by]land or by United States Mai]with postage pre-paid. Such notices slhall be deemed to have been served on the date mailed,postage pre-paid.All such notices and communications shall be addressed to the Sellerat City of Oshkosh Redevelopment Authority PO Box 1130 Oshkosh, «W154903 and to Purchaser at The Morgan District Attn: Nicholas J.]_,ung 615 S.Main Street Oshkosh, W1 54902 or at such other address as either may specify to tine other in writing. (c)Fee Governing Law,This Agreement shall be governed by and construed in accordance with fine laws of the State of«Wisconsin,The location of the resolution of disputes shall be Winnebago County,or any Court district including Winnebago County, (d)Successors and Assigns.This Agreement shall apply to,inure to the benefit of and be binding upon and enforceable against the parties hereto and their respective heirs,successors,and or assigns,to the extent as if specified at length throughout this Agreemem.The purchaser shall not assign,convey,or transfer through any legal mechanism this Agreement,or any right or benefit acquired within this Agreement. (e)Thue.Time is of fie essence of this Agreement. (f)Headings.'the headings inserted at the beginning of each paragraph andlor subparagraph are for convenience ofreference only and slhall not limit or otherwise affect.or be used In the construction of any terms or provisions hereof, (g)Cost of this Agreement.Any cost and/or fees incurred by tie Purchaser or Seller III executing this Agreement shall be borne by the respective party incurring such cost and/or fee. (h)Entire Agreement.This Agreement contains all of the terms,promises,covenants,conditions and representations made or entered into by or between Seller and Purehaser and supersedes all prior discussions and agreements%vhether written or oral between Seller and Purchaser with respect to tite Option and all other matters contained herein and constitutes the sole-,aid entire agreement between Seller and Purchaser with respect thereto.This Agreement may not be modified or untended unless stteh amendment is set fortis in writing and executed by both Seller and Purchaser with the formalities hereof (i)'Mo Third-Parts,Beneficiary:The benefits and burdens of this Agreement shall accrue only to tite parties identified herein and will not benefit or burden any'othcr person or entity. IN WITNESS WHEREOF,the parties iterelo have caused tills Agreement to be executed under proper authority: f As to Purchaser this r 194Hy of Jane 2020 Witness: "Purchaser" Nicholas J. Lang— miter The Morgan Disfrict,LLC As to Seller this— day of 2020.