OSHKOSH – The City Center vote got a lot closer than originally thought.
The city is acquiring the downtown property with Common Council just narrowly approving a $12.5 million purchase agreement for the lots at 101 Commerce St. and 201 Pearl Ave.
Coming out of a near hour-long closed session, council voted 4-3 at its May 26 meeting to go ahead with the multimillion-dollar purchase of the 17-acre riverfront property.
What happens next?
According to the purchase agreements with City Center Associates LLC and Bayshore Development II LLC, the city now enters a due diligence period to evaluate the properties for things like a structural analysis and Phase II environmental testing.
The effective closing date is listed as Sept. 30, but the agreement gives the city leeway to extend to Dec. 30 “if the parties cannot resolve the due diligence items” pertaining to the city’s assessments and title matters.
The city has agreed to pay down $225,000 but will be reimbursed that “earnest money” if it opts out of the purchase agreement during this period of due diligence.
“We’ve talked with industry professionals. GO-EDC, as a third party, has told us this is a good idea. Our chamber — this is not just an isolated decision the council is making,” said council member Joe Stephenson in supporting the acquisition.
“This is a decision our council, the Plan Commission and other economic professionals in our community are saying is a good idea,” Stephenson added.
What are the oppositions to the acquisition?
The vote comes days after a Northwestern article showed City Center Associates LLC owing $332,751.86 due to an unpaid property tax bill dating back to 2023 for 201 Pearl Ave.
Under Wisconsin Statute 75.521, Winnebago County can initiate a tax foreclosure to take a legal title to the property if the arrears aren’t paid by Sept. 1 this year.
Bayshore Development II and City Center Associates also have four open loans totaling more than $14 million taken out against both lots since 2012.
In voting against the purchase, Mayor Matt Mugerauer, Paul Esslinger and Alec Lefeber stressed the absence of a financing plan and true cost estimates for the demolition of City Center.
Mugerauer referenced the 27-acre ThedaCare Medical Center-Oshkosh site being bought for $2.75 million – almost $10 million less than what the city is spending on 17 acres at City Center.
“I have concerns that this is a legacy project for many — that is inside City Hall and outside City Hall, that’s elected and non-elected,” Mugerauer said.
“[I have concerns] that this is a feather in their cap for something in the future to say, ‘I did that,’ and this is a really big risk to do it at the taxpayers’ expense.”
Both Lefeber and Esslinger also took issue with a lack of information afforded to the public prior to the purchase and a lack of a transition plan for the more than 20 tenants at City Center.
Why does the city want City Center?
According to city staff and the Greater Oshkosh Economic Development Corporation, the property is central to a larger Downtown Redevelopment Plan as prime riverfront property with the potential for mixed-use developments.
The city’s information page regarding City Center lists its reasons as the following:
What is the city’s timeline and how does it propose to fund the purchase?
Oshkosh Community Development Director Sara Rutkowski previously said the entire development likely wouldn’t be actualized for another six to 10 years as the city hopes to have a phased redevelopment with multiple owners.
Assuring the tax levy will not be used in the purchase, the city said it doesn’t have any proposed funding models as yet but revealed it will likely take on some debt while looking at Tax Increment Financing and state and federal grants.
What is currently at City Center?
Promotional merchandise marketer and distributer 4imprint currently occupies the 101 Commerce St. lot with smaller shops like Planet Perk and Caramel Crisp attached to the back of the building.
Becket’s restaurant and other office spaces are also located within the building’s main structure, but the former Park Plaza Mall has seen mass exodus of major tenants.
City Center has advertised commercial spaces ranging in size from 6,011 square feet to 69,983 square feet following the departure of Silver Star Brands, Lakeland Care District and CliftonLarsonAllen. 4imprint is also expected to leave the property later this year.
Contact Justin Marville at jmarville@gannett.com and follow him on X (formerly Twitter) at @justinmarville.
This article originally appeared on Oshkosh Northwestern: Oshkosh council approves $12.5M deal to buy City Center
Reporting by Justin Marville, Oshkosh Northwestern / Oshkosh Northwestern
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