Notes from the August 30, 2005 Fifth Tuesday Forum

For more information, contact Oshkosh Common Councilor Bryan L. Bain at bbain@ci.oshkosh.wi.us or 651-9329

 

TOPIC: IRAQ WAR

Discussion: 2400 signatures have already been collected and will be presented to U.S. Senator Russ Feingold; the process to gather signatures to petition the Oshkosh Common Council has begun, contact Bob Poeschl if interested.

Concern/Issue

Referred to

Follow up (as received)

Proposed Iraq Troop Withdrawal Referendum – Why does it cost to put a referendum on an already existing ballot? How much does it cost (what did it cost for the smoking referendum)?

Pam Ubrig, City Clerk

Thank you for your patience ……unfortunately I can not give you a dollar figure, the cost of an election comes from the size of the ballot (8.5 x 11 or 8.5 x 14), if the ballot is one sided or two, how many entities have races on the ballot (city, county, school).  Costs would include the printing of ballots, programming & advertisement.

Hope this helps……if not, please contact me.

 

TOPIC: FIVE RIVERS RESORT

Discussion: Consensus is that the council and citizens need to be better informed and kept more up-to-date on the status of the project; general feeling was that Oshkosh, especially downtown, needs a larger convention center and project like this to help draw more people and activities to Oshkosh and the downtown area.

Concern/Issue

Referred to

Follow up (as received)

Riverwalk – How is the public guaranteed access to the river and proposed Riverwalk?

Jackson Kinney, Community Development Director

The plans for the Marion Road/Pearl Avenue Redevelopment District have called for (from day 1) the establishment of a riverwalk from Jackson Street to Wisconsin Street.  As the area is redeveloped the riverwalk will be installed.  Not only is a riverwalk planned in the area between Jackson and Wisconsin, but the City's adopted Pedestrian and Bicycle Plan calls for a looped riverfront trail system in the downtown area generally, and we are presently working on the plan in that regard.

Status of the project – Where are we? Why do we only hear things from the developer and not the city?

Jackson Kinney, Community Development Director

City is in negotiations with the developer.  We are also in discussions/negotiations with Mercury Marine relative to the acquisition of the Plant 24 property, which property is part of the proposed Five Rivers site.  Relative to the question of "Why do we only hear things from the developer and not the city?" - The City does not conduct its negotiations through the media.  At an appropriate point the proposal will be brought before the Redevelopment Authority for action, as well as before the Plan Commission and City Council.  The City is working hard at carrying out its due diligence responsibilities in evaluating the proposed development and in ensuring that the financial plan makes sense and the level of City funding support is appropriate, and the City is protected in the investments and obligations that are made in support of the project.

 

TOPIC: PARK PLAZA

Discussion: The discussion was basically the questions listed below.

Concern/Issue

Referred to

Follow up (as received)

Hotel and Convention Center – What is the status (in the legal system)? What happens to the existing convention center is the Five Rivers project is completed?

Richard Wollangk, City Manager [editor’s note: the City Manager forwarded this question to Warren Kraft, City Attorney]

I will forward to you an answer from City Attorney Kraft for this question.

 

[Editor’s note: the email from the city attorney is listed below]

Council member Bain forwarded two questions related to the Park Plaza Hotel and the Oshkosh Centre.  He inquired about the status of various legal actions and about what happens to this complex if the Five Rivers development is completed.  Because the simple answer, that all litigation is pending, requires much more explanation, the second question is answered first.

In past conversations with Jackson Kinney, I understand the city will work with the Convention and Visitors Bureau, the Oshkosh Area Community Foundation and the Oshkosh Area Chamber of Commerce to jointly study the convention center facility and evaluate its future use.

The first question has a more complicated answer because the litigation is pending in three different fora.

A--City of Oshkosh vs. Heyde and Heyde Hospitality.  This is the original action seeking to terminate the concessions and management agreements (attempting to return those convention center service functions to the City so another manager can handle the facility) and seeking to recover unpaid expenses under the Ground Lease for the Hotel.  It is before Judge Thomas Gritton in Winnebago County Circuit Court, on hold because of the pending bankruptcy proceedings.

B--Bankers Bank vs. Heyde and Heyde Hospitality.  This is the mortgage foreclosure action, also in circuit court, but put on hold because of the bankruptcy action in Eau Claire.  Early this summer, the bank and Heyde agreed to two things:  the foreclosure could be returned to circuit court and post foreclosure procedures could proceed (more a bit later); the court could appoint a receiver effective July 1 to operate and manage the hotel and convention center properties (Heyde is out).  As to the former item, the bank could schedule a sheriff's sale later this year to sell the property at auction and bring in a new owner/operator.  The 1984 Ground Lease (negotiated before my tenure with the city) would evaporate and the city would regain control and management of the convention center.

C--Bankruptcy Reorganization of Heyde and Heyde Hospitality.  The multi-faceted Heyde financial empire created a very complex bankruptcy. Concerning the Oshkosh property only, Bankers Bank has positioned itself to complete its foreclosure action with a receiver managing the property.  Heyde's failure to sell the Oshkosh hotel by the agreed-upon July 1 deadline had two legal effects:  (a) The bankruptcy court ruled Heyde and Heyde Hospitality rejected their contracts with the City, meaning that the parties are no longer bound to follow them (with a caveat) and (b) the City can seek damages in the bankruptcy court for the current breach and for future losses.

As to the latter item, the city filed an amended claim this month in the bankruptcy court in the total amount of $688,611.31.  It is considered "unsecured" which means the chances of full payment are slim because this claim stands behind all creditors who have "secured claims"  {Recall that the City has a pending circuit court breach-of-contract lawsuit here in Winnebago County.  It asks for less damages than what the bankruptcy action now permits.  However, a money judgment in the circuit court will not put the City in a better creditor position in the bankruptcy action.

As to the former item, although Heyde no longer has to follow its contracts, the receiver is (by state law) entitled to carry them out while the foreclosure action is pending.  That is why Kinseth Hospitality is operating the hotel and convention center until Bankers Bank can line up a new buyer.  As noted above, once the bank secures a new buyer, the bank will complete the foreclosure, the Ground Lease and related parking ramp and convention center contracts will evaporate, and the City will either have to have negotiated a new convention center agreement with the new buyer or secured a new manager for the city's facility.

 

TOPIC: 100 NORTH MAIN BUILDING

Discussion: The discussion was basically the question listed below.

Concern/Issue

Referred to

Follow up (as received)

Taxes – Have all back taxes been paid?

Jackson Kinney, Community Development Director

Part of the back taxes were paid earlier this year and a schedule was submitted for the payment of the remainder.

 

TOPIC: OPERA HOUSE SQUARE

Discussion: There was some concern expressed with removing a healthy tree to place a flagpole in Opera House Square.

Concern/Issue

Referred to

Follow up (as received)

Flag – Where are we with this project? Why is it taking so long? Why does the city plan destroy a tree to put up a flagpole? Isn’t there a better location within the square (in front of the soldier’s monument)?

Jackson Kinney, Community Development Director

The design plan for the Opera House Square Area includes the installation of three flagpoles to be installed in a landscape area on the west side of Market Street directly across from the Civil War monument.  The design plan calls for the improvement of the sidewalk area from High to Algoma and as part of that existing trees will be removed and new trees planted, and the landscape area integrated into that environment.  The new street trees will be consistent with a coordinated design for the Market Street area, and will integrate with the location of light standards, etc. The location of flagpoles needs to be well thought out so they fit into the overall design format for this area, and the plan that was prepared by LDR identified the best location as being on the west side of Market Street.  Opera House Square has three primary vertical elements that create a desirable symmetry to the site - the sundial sculpture/fountain; the Civil War monument; and the Rotary decorative clock.  Adding another significant vertical element internal to the Opera House Square block would undermine the symmetry of the design for the area, while the placement of the flagpoles adjacent to the Opera House and directly adjacent to the square across from the Civil War monument compliments and adds to the overall quality of design.  Given current budget issues, we will not be recommending that the west side of Market Street be done as part of the 2006 Capital Improvement Program.  When the west side is done we do have to relate to rooms that are under the sidewalk on the north side of the alley, so that will take an additional level of coordination with the property owner in that area, and that will also affect the cost of that project.

 

TOPIC: HARRISON AVE (OLD RAILROAD CORRIDOR)

Discussion: The discussion was basically the question listed below.

Concern/Issue

Referred to

Follow up (as received)

Bike Trail – Is it feasible for a bike path trail from Harrison Ave. out to County Park?

Jackson Kinney, Community Development Director

The Pedestrian and Bicycle Plan called for the eventual development of a trail that could be located on portions of the former Wisconsin Central Railroad right-of-way between Murdock and Harrison Street, and a trail was generally depicted as going to the north to connect with the County park and other public lands in that general area.  More planning work will need to be done to determine where and how implementation can occur in that regard.

 

TOPIC: CITY BUDGET

Discussion: The discussion was basically the questions listed below.

Concern/Issue

Referred to

Follow up (as received)

Waterpark – How will the new waterpark expenses affect the operational budget?

Richard Wollangk, City Manager

Expenses for the new waterpark will have to be in next year's operating budget.  Parks Director Stephany is currently working with the contractor to come up with an estimate on what this cost will be.  Early discussions indicated in the range of about $50,000.

Specifics – What do we know regarding state aid, the levy, obligations, upcoming projects, etc.?

Richard Wollangk, City Manager

What we have been told is the state aids for next year should be the same as we got this year.  As for projects anticipated for 2006 we will be asking the council to include funding for relocating and paving Washburn St. on the north end where it intersects Westowne to improve traffic flow in this area.  This would also allow a planned development to be built in this area.  The only other major project that will get started in 2006 that I am aware of now is the start of construction on the new Wisconsin/Ohio St. bridge.  This project should begin in the fall of 2006.  Regarding the levy question, the state budget bill contains a levy freeze for all local governments in Wisconsin with an allowable increase of the greater of new construction or 2%.  We are limited to 2% because our new construction was less.

 

TOPIC: LEACH AMPHITHEATRE

Discussion: The discussion was basically the questions listed below.

Concern/Issue

Referred to

Follow up (as received)

User fees – What are the costs associated with rental of the amphitheatre and it’s various components? Do not-for-profits/fundraisers receive a lower fee? Why are they not posted anywhere?

Tom Stephany, Parks Director [editor’s note: Mr. Stephany also provided an email from Ms. Cora Haltaufderheid, Chief Operating Officer – PMI]

As you should read in an email from Cora Haltaufderheid, Chief Operating Officer for PMI, [editor’s note: that email text is listed below] because this is the first year for the operation of the amphitheater, things are still being worked-out.  Even though, there is an unwritten agreement that we have where groups that want to use the property, not including the back of the stage and concession stands, can do so by going through the Parks Department.  To begin the process, though, and to figure out where each group fits, I first have all groups contact PMI.  If PMI decides that the event does not meet their criteria, then they have the groups contact me and we work things out.  For example, there was a group (I believe the drummer group) a few weeks back that used the front of the stage and the restrooms.  Aaron Chelberg, Operations Manager for PMI, called me to ask if I would work with the group and open the restrooms for their activity, which I did.

The bottom line is that both PMI and the Parks Department are attempting to accommodate different uses.  PMI, though, has been contracted with to establish rental fees and to operate the production and special use aspects of the amphitheater.  Per the contract, it is up to them to establish the fee rates and to negotiate with groups about those rates.

 

[Editor’s note: Ms. Haltaufderheid’s email is listed below]

Non-profits with 503c status maybe given a non-profit rate depending the intended use of the park.  PMI Welcomes
Non-profit groups -Yes
Why are they not posted anywhere? As discussed with city officials in our contract negotiations, the first year out was going to be learning
period for both the city and PMI. None of us knew what the Amphitheater would or could bring to the table to enhance the city as a entertainment venue..    We therefore, did not post any of our fees having to do with
rental rates, as there were (in some cases still are many many) unanswered questions that need evaluated before the rate can be determined.  (FYI- Our rates at the Resch are in writing but each one
changes given the promoter)

I also recommend that the Citizens understand the contract with PMI.
PMI pays the city $30,000 a year to operate the facility.
PMI will also pay the city 10% of any sponsorships sold by PMI.
 
PMI holds the liquor license to operate in the Park (and assumes liability as well) and not the city.
PMI holds the food & beverage license for the facility.
PMI invested in and purchased the equipment @ the Leach Concession
stands
PMI pays for utilities of the park during a certain specified time period of the year.
Also what is an "event" is the big question and one major reason why we have not published a rate card..
Before PMI determines rates they need to know what type of an event will it be.
If it is a ticketed event selling food and beer the price (liability) is different than the event being open for a non-profit having vendors donate free samples. 
Is bartender tender required? (always needs to be x number of them on site if beer is sold under our license.)
Most events require a PMI staff member on site but a what capacity needs to be determined (clean up, maintenance sound tech, lights, bathrooms etc..)
An event coordinator is $250 a day..
IS it a 8 hour event our 15 hour?

Park vs. Amphitheatre – What is Riverside Park and what is the Leach Amphitheatre (what’s open for park/free use and what’s not)?

Tom Stephany, Parks Director

With regard to production's and park use.  PMI manages all production activities and most special events.  If there is a need to use the back of the stage, the concession stands and restrooms (under PMI's production's category), or if fees are collected at the gate, PMI is in charge and everything goes through that group.  When there is a production or special event that does not fit under the PMI category, then the Parks Department has control.  Parks Department control focuses on the amphitheater as a green space or park property.  The department takes care of landscaping, mows the grass, keeps the entire property clean as a park, and will work with smaller group uses.

 

ADDITIONAL DISCUSSION TOPICS THAT DID NOT REQUIRE SPECIFIC STAFF FOLLOW UP:

 

FISHING PIER – there was some concern expressed with the proposed new fishing pier at Miller’s Bay and suggested an alternative location across from Melvin Ave.; there are requests for the council to reconsider or rescind the resolution that was recently passed (note: the council cannot reconsider the resolution, however, a council member could move to rescind it); comments need to be to the DNR by September 19th.

 

COLES BASHFORD HOUSE – we discussed the restoration project; to donate, send a check to “Friends of the Coles Bashford House”, P.O. Box 2202, Oshkosh, WI 54903.

 

 

Upon completion, copies of this document will be available at Oshkosh City Hall, 215 Church Ave.  No tax dollars have been used to produce, re-produce or maintain this document.

 

 

Last updated: September 17, 2005