UPDATED: RDA/Council meeting tomorrow (re: Five Rivers)

UPDATE: Five Rivers did not meet the provisions of the term sheet. Here's the story in the Oshkosh Northwestern. Below is an email City Manager Richard Wollangk sent today at 3:31 p.m. to the Common Council:

M E M O R A N D U M

Date: June 20, 2006
To: Mayor & City Council
From: Richard A.
Wollangk, City Manager
Subject: FIVE RIVERS

City staff has completed due diligence work on the commitment letter submitted by Five Rivers LLC on May 31st. We cannot find it meets the provisions of Section III, Subsections F and G of the Term Sheet document where the developer was to submit financing commitments in a form and substance satisfactory to the City/RDA. This determination is based upon what was learned in a meeting that Jackson Kinney and I had with CD Smith Construction on Tuesday, June 20, 2006 based upon the lack of cooperation from the Five Rivers group in assisting the city in completing its due diligence work on the submittal.

At the City Council Meeting on June 13th, Jackson pointed out that while the letter appeared to meet the submittal requirement, we needed to meet with the parties to ensure a common understanding of the commitment. As was pointed out in a memo to the RDA and Council this past Friday, the city made a concerted effort, beginning on June 1st, to seek Five Rivers cooperation in setting up an overall meeting of the Five Rivers group, including CD Smith Construction. The overall meeting that had been scheduled for June 13th was cancelled by Five Rivers.

Also at the June 13th meeting, Jackson indicated that there were various items that we needed to address in order to arrive at a satisfactory determination on the submittal. One of the items was to ensure that the commitment would provide the financial backing to cover all costs associated with completing the project up to, and including, opening the doors for occupancy. In our discussion with CD Smith, it was clear there were a number of project costs CD Smith did not intend to cover. These project costs included, among others: marina facilities; furniture, fixtures and equipment; restaurant, kitchen buildout allowance; telephone system; parking area north of Marion Road; and architectural and engineering fees.

While the commitment letter did not include a specific stipulation on take out financing on their loan, CD Smith indicated they expected to see a combination of lender and/or equity commitments from the developer within the context of the Developer’s Agreement. CD Smith officials indicated at today’s meeting that they had not previously been provided with a copy of the term sheet document by Five Rivers. The city appreciated CD Smith agreeing to meet and discuss their role in the project. As was pointed out at the June 13th Council Meeting, the city was very pleased to see CD Smith’s participation in the proposed project. While the commitment letter does not meet the intended substance of the financial commitments sought in the Term Sheet document, it did represent a significant offer by CD Smith.

I would note that the meeting that city staff had with CD Smith on June 20th was a meeting requested by the city. Again, we appreciated CD Smith’s willingness to meet and discuss their proposed role in the project.

Prior to today, a meeting had been scheduled with the RDA for Wednesday, June 21, 2006, at 4:00 p.m., where city staff will review the status of the project and ask for recommendations for proceeding with redevelopment efforts in the Marion Road/Pearl Avenue Redevelopment Area. That meeting will occur in room 404 of City Hall.

RAW/jdc

Cc: Community Development Director Jackson Kinney

I thank city staff and our consultants for performing their due diligence in a timely, professional and effective manner. While I'm relieved to know that the city will no longer be working with Mr. Doig, it's unfortunate that we won't have a development started this fall that could have served as a catalyst for future opportunities and development. The reason I did not support the term sheet extension in March was due to the fact that I believed Mr. Doig was unable to bring the project to fruition. We now know that's true.

I hope the city will use this as a learning experience - examine what we did well, where we can improve and how we can proceed forward. We have demonstrated our ability and willingness to work with a developer, and contrary to Mr. Doig, our city is development friendly. We now need a developer who is willing to understand the city's need to represent and protect the interests of the citizens of Oshkosh. It's time for the city to re-group and begin planning for the future.

**********

(My original post)

According to the Oshkosh Northwestern website, the city's Redevelopment Authority and possibly the Common Council will hold a meeting regarding the Five Rivers project at 4:00 p.m. in room 404, City Hall. It's worth noting that I did not receive a phone call, letter or email from city staff regarding the meeting prior to learning about it from the media.

I have also learned that Councilors Esslinger and McHugh will have a resolution placed on agenda for Tuesday's meeting. You can read more about it here, here and here (registration required).

Finally, it seems as though Mayor Castle and I are on the same page regarding the overall project and the developer's [flat out wrong] comments regarding the city. Mr. Doig is good at creating ideas but, unfortunately, that's where it ends. Perhaps someone should send him a copy of the OAEDC and Chamco reports the council recently received during workshop sessions to see just how much business growth and development we've had in Oshkosh!

-Bryan