OSHKOSH – City Center is one step closer to changing hands.
The city is moving toward acquiring the 17-acre downtown property, with Common Council giving staff the go-ahead to make a $12.5 million offer for the lots at 101 Commerce St. and 201 Pearl Ave.
Coming out of yet another closed session at the May 12 meeting, council voted 5-2 in favor of staff negotiating terms and conditions with City Center Associates LLC and Bayshore Development II LLC.
What does this mean?
A number of steps must occur before the city can buy City Center, but staff have been given approval to make the $12.5 million offer to both ownership groups.
If the two groups agree to terms, then Plan Commission would review that purchase agreement before it returns to council for final approval of the contract at a subsequent Common Council meeting, likely May 26.
Why does the city want to buy 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:
“Downtown redevelopment is what cities do really well,” said council member Joe Stephenson while pointing to examples in Appleton, Neenah and Menasha.
“I think a lot of people say cities shouldn’t be involved in the private sector [and] cities aren’t good at good at making land acquisitions [but] this is what cities do well,” he added.
Is there opposition to acquiring City Center?
Both Mayor Matt Mugerauer and council member Paul Esslinger voted against the resolution, with the latter contending a private entity should be allowed to purchase City Center.
Calling the potential acquisition of 17 acres of riverfront property a huge opportunity, Mugerauer said he actually supports the city eventually redeveloping City Center but not at the proposed cost.
The mayor said Oshkosh is likely looking at a price tag of closer to $30 million taking into account the need to demolish structures and pay the existing 22 tenants out of their current leases.
“I believe the city will one day own this property, but I don’t think that has to be today and not at this price and not with the conditions that are being prescribed,” Mugerauer said.
Why wouldn’t the city allow a private developer to buy City Center?
Mugerauer said the property has not been put on the open market while the resolution in the meeting agenda mentions that the two ownership groups were the ones who “approached the City about acquiring and redeveloping the City Center properties.”
Oshkosh Community Development Director Sara Rutkowski previously said the city would be able to maintain the public’s access to the river and control the phased development that happens along the site.
What are the proposed uses for the City Center site?
Common Council has continually stressed it hasn’t been allowed to discuss any potential uses for the downtown property during seven months of closed sessions.
But city staff and GO-EDC did present conceptual renderings for green space, commercial lots and new housing during a recent public open house meeting.
What is the city’s timeline and how does it propose to fund the purchase?
Rutkowski 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 about the businesses currently located in City Center?
Ken Osmond, owner of coffee house Planet Perk that resides in City Center, said the project has been wrongfully categorized as a “redevelopment” considering the property houses no fewer than 22 businesses.
“People said they want restaurants and dining, retail shops, public waterfront, parks and green space, entertainment venues, cultural or art uses, office space, hotel or lodging — but six of those nine currently exist,” Osmond said.
He continued, “So, when council is doing the calculus in this process think about what you’re buying and think about how you have to protect and preserve what’s already there because this isn’t a redevelopment issue.”
Contact Justin Marville at jmarville@gannett.com and follow him on X (formerly Twitter) at @justinmarville.
This article originally appeared on Oshkosh Northwestern: Oshkosh moves toward buying City Center site with $12.5M offer
Reporting by Justin Marville, Oshkosh Northwestern / Oshkosh Northwestern
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