Monday, June 19, 2006

Resolution being drafted to break off communications with Five Rivers developer

According to a news report on the web site for WOSH Radio 1490 AM, Oshkosh Common Council members Paul Esslinger and Dennis McHugh were to have met with the city attorney this afternoon (Monday) to begin drafting a resolution under which the city would break off further discussions with developer Tom Doig over his proposed approximately $60 million Five Rivers project.

This follows several developments in the past two weeks, including a letter sent by Doig to Community Development director Jackson Kinney last week in which he claimed the city had put up too many barriers to entry; was not development friendly; and was essentially out of step with banking and development practices. In his communication he and his attorney reportedly set forth expectations they wanted the city to meet and gave the city a deadline of June 22 to respond back with its answer.

It is expected the resolution sponsored by councilors Esslinger and McHugh will be on the agenda for the next Oshkosh Common Council meeting on June 27. It will take a simple majority of the council (4 votes) in order for it to pass. It is unclear at this point if four such votes exist or, in the event the resolution passes, what Doig’s response might be.

Authored by: admin on Friday, June 23 2006 @ 09:24 AM MDT
[For anyone wishing to see it, here is a copy of the resolution being voted on by the Oshkosh Common Council Tuesday night to formally end discussions on the Five Rivers project with developer Tom Doig and Five Rivers, LLC.]

JUNE 27, 2006 06-221 RESOLUTION (CARRIED____LOST ____ LAID OVER ____ WITHDRAWN ____)



WHEREAS, the Common Council of the City of Oshkosh has previously approved a term sheet, since amended, upon which the City of Oshkosh would enter into a formal developers agreement for the construction of the Five Rivers Project in Marion Road/ the Pearl Avenue Redevelopment Project Area; and

WHEREAS, among the terms, the developer was to: “On or before May 31, 2006, present lender and equity commitments to City/RDA in form and substance satisfactory to City/RDA. Developer shall demonstrate satisfactorily to City/RDA ability to satisfy all conditions of commitment on or before closing”; and “If construction financing, Developer shall by May 31, 2006, provide evidence of permanent financing to City/RDA’s satisfaction”; and

WHEREAS, information made available to the Council indicates that the proposed financing is not in form and substance satisfactory to the City, that it does not meet the conditions of the term sheet as amended and, therefore, the City administration should cease all efforts to bring the proposed project to development;

NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the Council as follows:

1. Finds that the financing condition of the term sheet as amended is not in form and substance satisfactory to the City;

2. Rescinds and withdraws the term sheet as amended in its entirety;

3. Directs the proper City officials to cease negotiations on a developer’s agreement with Five Rivers LLC based on the now-rescinded term sheet; and

4. Requests the Redevelopment Authority of the City of Oshkosh to authorize and direct the proper City officials to request and/or to receive other proposals for development of the Project Area.