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HomeMy WebLinkAbout5-15-19 minutes REDEVELOPMENT AUTHORITY MINUTES May 15, 2019 PRESENT: Thomas Belter, Steve Hintz,Jason Lasky, Lori Palmeri Susan Panek, Archie Stam EXCUSED: Jack Bermingham, STAFF: Allen Davis, Executive Director/Community Development Director; Lynn Lorenson, City Attorney; David Praska, Assistant City Attorney; Darlene Brandt, Grants Coordinator;Andrea Flanigan, Recording Secretary Chairperson Palmeri called the meeting to order at 4:00 pm. Roll call was taken and a quorum declared present. Public Hearing: Spot Blight Designation 613 W. 91h Avenue Chairperson Palmeri opened the public hearing on the proposed spot blight designation for 613 W. 9th Avenue. No one appeared and the public hearing was closed. Res. 19-12 Approve Spot Blight Designation;Approve Acquisition of Property at 613 W. 91h Avenue ($24,200) Motion by Belter to move Res. 19-12 Seconded by Hintz. Mr. Lasky inquired if there were funds available for the acquisition. Ms. Brandt stated there is approximately $40,000 of 2018 CDBG funds available for the acquisition and demolition. This does not include the 2019 CDBG funds. The item was called. Motion carried 6-0. Public Hearing: Spot Blight Designation 668 North Main Street Ms. Palmeri opened the public hearing on the proposed spot blight designation for 668 N. Main St. Kyle Kehoe, relator for the property, stated he is available to answer any questions. Ms. Palmeri questioned if there are structural issues with the property. RDA Minutes May 15,2019 Page 1 Mr. Kehoe stated the property had water problems about two years ago in which a majority of the interior was demolished. There would need to be a tremendous amount of investment to the property in order to rehab it. There was no further comments from the public and the public hearing was closed. Res. 19-13 Approve Spot Blight Designation;Approve Acquisition of Property at 668 North Main Street ($57,000) Motion by Belter to move Res. 19-13. Seconded by Stam. Mr. Hintz inquired what could be done in the 600 block of North Main Street if the RDA acquires this property. Mr. Davis stated 668 North Main could be combined with the RDA owned Jefferson Street properties. The RDA Had expressed interest in having an access point from Main Street. A developer could also combine with properties along North Main Street and Jefferson Street for a larger scale project. Mr. Lasky stated he would like to see a package deal and have the RDA acquire properties along North Main Street at the same time. He stated he would like to hold off on acquiring 668 N. Main St at this time. Mr. Davis stated it would be the developer's responsibility to acquire 656 N. Main St. Ms. Panek questioned if 668 N. Main St. was wide enough to be an access point for the Jefferson St. property. Ms. Brandt responded it is wide enough. Mr. Belter stated having this access point would make the Jefferson St. property more developable. Mr. Hintz inquired if we are expecting a proposal for the Jefferson St properties any time soon. Mr. Davis stated a proposal for Jefferson St was on the agenda for the RDA meeting but the developer decided to remove it to run some more calculations. Mr. Hintz stated he would support the acquisition if the developer is going to move forward with plans in the near future that include 668 N. Main St. He would suggest waiting on the acquisition if possible to see if all of the pieces come together for the development. Mr. Stam inquired if the acquisition could be laid over. RDA Minutes May 15,2019 Page 2 Ms. Brandt stated based on the offer to purchase the acquisition would need to be approved or denied. Mr. Kehoe stated there is interest in the property and if the offer with the RDA falls through there are people that may put in offers. There is no guarantee the property will be available if the RDA does not accept the offer today. He stated there is a liquor license with the property that expires July 1St and without that license the building is essentially brick and mortar and it loses that marketability to be sold as a bar. Ms. Palmeri questioned if the liquor license stays with the property if it is sold to the RDA. Ms. Brandt stated if the property is sold to the RDA the liquor license is surrendered to the City and does not stay with the property. Mr. Hintz questioned if 668 and 664 N. Main St were needed for the future development. Mr. Davis responded it is not needed but it would make the project more lucrative for the developer if those properties were available. Ms. Brandt stated even if 664 N. Main St was not available 668 N. Main could be an access point for the Jefferson St. properties. The item was called. Motion denied 2-4. (Nay:Lasky, Panek, Hintz, Palmeri) Res. 19-14 Determination of Necessity; Establish Fair Market Value;Authorize Purchase-653 Mount Vernon Street ($18,000) Motion by Stam to move Res. 19-14. Seconded by Belter. Mr. Lasky questioned if the RDA does not acquire this will there be private investors that would be interested in the property. Ms. Brandt stated the property was a rental. The neighborhood would not support the cost to rehab the property and bring it up to code. Mr. Lasky inquired if there was a program that forces the property owner to demolish the building or bring the building up to code. Mr. Davis stated that process is done through Inspections where the property owner receives code enforcement violations, then a raze or repair notice and if the violations are not corrected it ends up in Winnebago County Circuit Court. Mr. Praska stated the raze statute is based on structure and not necessarily if the property looks like it is in bad shape. The building can remain as long as there are no structural problems, which in some cases may take a while for it to get to a point that the property would need to be razed. RDA Minutes May 15,2019 Page 3 Ms. Palmeri asked about the condition of the property. Mr. Davis stated the property has been inspected and the walls and floors are uneven and the interior is in poor condition. Ms. Brandt stated the property is on a slab or piers, the floors are very uneven which may be structural issue and not a property for rehab. Ms. Palmeri questioned if the property is in a Redevelopment Area. Ms. Brandt stated it is in the Near East Redevelopment Area. Mr. Davis stated the RDA has stated in the past that Jefferson Street may be difficult to redevelop due to the condition of surrounding properties and neighborhood. The RDA directed staff to look for ways to improve the neighborhood to help the Jefferson St redevelopment. Ms. Panek inquired if there is a plan for the RDA owned property at 672 Jefferson St. Ms. Brandt stated it will be demolished after asbestos abatement and there are no plans for the property at this time. It could be part of land assemblage for future redevelopment. Mr. Stam inquired if 653 Mount Vernon could be built on. Ms. Brandt stated it is a lot of record so it could be built on. Mr. Lasky stated he is leaning towards not supporting this acquisition until we can see if there is a private interest in the property to acquire and rehab the property. Mr. Davis stated if the property is put on the market he expects the property would be sold to a private party and rented out. The RDA further discussed the possibility of a private investor buying the property as well as bringing it up to code. Mr. Hintz questioned if there were projects more deserving of the CDBG funds. Mr. Belter questioned if it was possible to hold on the funds over time and then make a big impact all at once in a concentrated area. Ms. Brandt stated there are timeliness ratios that need to be met that would prevent the City from doing that. Funds need to be spent in a certain amount of time or there is the possibility of not being funded. Mr. Belter stated $18,000 to get rid of a blighted property is worth spending the money to help improve the neighborhood. RDA Minutes May 15,2019 Page 4 Ms. Brandt stated when the property owners approach the City it is usually because they do not want a realtor and people going through the house. Mr. Lasky inquired how the demolition of this home help the entire neighborhood. Mr. Davis stated it would be a cumulative effect. Taking one house out fifty homes may not make a big impact on the neighborhood but removing a few more homes would start to make a difference. Ms. Palmeri stated in Middle Village there were two acquisitions and demolitions by the RDA that made a big difference to some of the long term neighbors in the area. Even though it may seem like a small area in the middle of the block it can give hope to the neighborhood once those properties are out of sight. Mr. Belter questioned if it was completely vacant. Ms. Brandt stated the property is vacant. The item was called. Motion carried 5-1. (Nay: Stam) 19-15 Authorize Land Disposition of 1302 Eastman Street to Habitat for Humanity;$13,500 Motion by Better to move Res. 19-15. Seconded by Panek. Ms. Palmeri questioned how much it cost to acquire the property. Ms. Brandt stated the property was acquired for approximately $30,000 and the abatement and demolition cost approximately$6,000. Ms. Palmeri stated since the RDA is selling the property to Habitat it does not need to be sold for fair market value. Ms. Brandt stated the property is being sold at fair market value. Staff looks at land values in the area and prices it comparably. The RDA does not recoup all of its costs with acquisition and demolition of these residential properties. The item was called. Motion carried 6-0. 19-16 Authorize Land Disposition of 421 Monroe Street to Habitat for Humanity$12,900 Motion by Better to move Res. 19-16. Seconded by Stam. There was no discussion. The item was called. Motion carried 6-0. RDA Minutes May 15,2019 Page 5 19-17 Approve General Development Plan for Multi-Use Developments Located at Marion Road Redevelopment Sites H, I and J; Merge,LLC Motion by Stam to move Res. 19-17. Seconded by Belter. Mr. Belter inquired how quickly the site would be developed. Joy Hanneman with Merge, LLC stated they hope to break ground on one building in 2019. The architect has started working on plans. Mr. Belter inquired what steps would need to be taken next. Ms. Brandt stated Council approval of the TIF plan, Development Agreement and RDA approval of the Development Agreement and then Specific Implementation plan approval by Plan Commission, RDA and Common Council. The item was called. Motion carried 6-0. 19-17 Support Projects and Programs Proposed in the 2019 CDBG Action Plan Motion by Stam to move Res. 19-18. Seconded by Belter. Mr. Belter inquired if the funding due to the pending purchases will change anything in the plan. Ms. Brandt stated the 2018 CDBG funds should be spent in a timely manner because there are a few demolitions to be completed with 2018 funding. The 2019 Action Plan as proposed allocates $300,000 for central city slum and blight acquisition and elimination. If the RDA is not looking to proceed with these types of activities on a standard basis there could be a problem meeting the timeliness ratios. Mr. Lasky inquired what the Public Services are for$100,000. Ms. Brandt stated the City formed a consortium with the Oshkosh Area Community Foundation and Oshkosh Area United Way to better serve the low to moderate income citizens of Oshkosh that need assistance with public service activities and needs. Some of the past recipients of public service funds include, Winnebago County Literacy Council, ADVOCAP and Tri-County Dental. Mr. Lasky inquired how organizations would apply for the grant. Ms. Brandt stated the consortium is accepting applications until May 22nd. There is a selection committee that ranks and allocates funds. Mr. Lasky inquired if the funding meets the need. RDA Minutes May 15,2019 Page 6 Ms. Brandt stated the funding requests by the organizations exceed the $100,000 for Public Service but it is the maximum amount that can be spent in this area. Ms. Palmeri inquired how an organization would apply for the grant. Ms. Brandt stated applications are on the City's website and there were 30-40 notices sent out to area organizations as well as a public notice. The item was called. Motion carried 6-0. RDA Manual Training—Presented by City Attorney's Office Attorney Lorenson presented the RDA with a manual to guide members of the board through meeting processes, open meeting laws, ethics, and other information as necessary for the Redevelopment Authority. 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 5:56 PM. (Stam/Belter) Respectfully submitted, Allen Davis Executive Director RDA Minutes May 15,2019 Page 7