City of Oak Creek

Common Council Report

Meeting Date:  November 13, 2006

Item No.:        

Recommendation:  That the Council adopt Resolution No. 10699-111306, amending Resolutions No. 563-030663 and 592-041663 regarding ownership and control of the Oak Park Apartments.

Background:  Oak Park Apartments, Inc. is requesting amendments to ordinances and resolutions as they impact the Oak Park Apartments and Meadowmere Village properties at the southwest corner of E. Puetz Road & S. Shepard Avenue.  The owners of Oak Park Apartments are attempting to sell the complex and are hoping to clear up some errors and burdensome language in previously adopted ordinances and resolutions.

The current request is to amend two (2) resolutions that impact the Oak Park Apartments complex.  First, Resolution number 563-030663, Section 8 states:

8. The entire project and site shall be held in single ownership or shall be sold as a single unit unless provision is made for the maintenance of building and sites by a central authority.  Such provisions and agreements shall be approved by the City of Oak Creek.

The applicant would like this section and all references to it removed from Resolution number 563-030663.

Second, Sections 3, 4, and 7 of Resolution 592-041663 contain language that makes the sale of the apartment complex burdensome. The language of these sections is as follows:

3. That Oak Park, Inc. shall be responsible for management and maintenance of any dwelling units sold to third persons, unless the City of Oak Creek consents that said third person may manage their dwelling units.

4. That the obligations of Oak Park, Inc. to manage and maintain said buildings shall remain in force for fifty years from the date of this agreement unless sooner terminated by written consent of the City of Oak Creek.

7. That the agreement shall bind any successor or assignee of Oak Park, Inc. and shall not be assigned or transferred without written consent of the City of Oak Creek. 

Each of these restrictions limits the ability to sell these apartments and they would therefore like them removed from Resolution 592-041663. From the City’s perspective these restrictions were placed on the property 40 years ago and simply are not necessary at this time.  The City does not have similar requirements for other developments at the current time.

The Plan Commission requested a legal opinion from the City Attorney on this request.  The City Attorney has provided an opinion on this request which is included with this report.  In this opinion he indicates that the City of Oak Creek Zoning Ordinance Section 17.0325 covers property maintenance.  Staff would therefore recommend that the following text (taken directly from the zoning ordinance) should be added to Resolution numbers 592-041663 & 563-030663:

“The entire project shall be held in single or corporate ownership or control or shall be managed by a property owner’s association or other appropriate managing mechanism to assure that any common facilities are properly maintained. A copy of the bylaws of the management association shall be provided to the City.”

In regards to Section 7 of Resolution number 592-041663, the City Attorney questions the legality of a provision that would give the City the right to consent to any transfer or assignment of a property.  Therefore this section should be eliminated.

Fiscal Impact:  There is no fiscal impact to the City.

Prepared by: Doug Seymour, AICP Director of Community Development

Respectfully submitted, Patrick DeGrave City Administrator

Fiscal Review by:

Beverly A. Buretta, CMC

City Clerk