Oshkosh council authorizes due diligence on $12.5 million City Center purchase after contentious debate

The Oshkosh Common Council voted 4–3 on May 26 to authorize the city to enter a due-diligence period under an offer to purchase the City Center property for $12.5 million.

Deputy Mayor Bulo moved the measure after a night of public comment and council debate. The resolution authorizes due diligence through Sept. 30, 2026, with the possibility of a one-time extension to Dec. 30, and preserves the city’s right to inspect, test and terminate the agreement based on environmental or structural findings. “We are retaining the right to inspect, to evaluate, to test,” staff told the council when describing the agreement’s protections.

The decision followed public remarks from former council member Tony Palary and MAI-designated appraiser Tom Swan, who urged caution. Palary warned that one owner appeared to be “over $300,000 in arrears on taxes” and flagged about “$14 million in loans,” raising public concerns that the transaction could look like a taxpayer bailout. Palary said the council still lacks a clear accounting of long-term costs, including cleanup, demolition and potential extended use of TIF financing.

Tom Swan, a certified general appraiser, told the council the city should commission detailed environmental and structural studies before closing. “If [a phase two environmental study] existed, you would try to quantify what the impact on value would be,” he said, warning that contamination or extensive deferred maintenance would require downward adjustments to value and could add substantial costs.

Council members were sharply divided. Council Member Stevenson and Deputy Mayor Bulo urged proceeding to a thorough due diligence period that would allow the city to walk away if serious problems were found. Stevenson described the vote as “the next step in the process” that preserves exit points. Council Members LeFever, Esinger and Mugar said the public has not been given sufficient information about costs, tenant transition plans and financing and voted no.

The resolution passed with yes votes from Deputy Mayor Bulo, Council Members Stevenson, Spanower and Amos; LeFever, Esinger and Mugar voted no.

City staff told the council the purchase offer includes $125,000 in earnest money and that title cleanup items and outstanding taxes would need to be addressed as part of due diligence. Staff confirmed that if phase two environmental testing or structural inspections reveal unacceptable conditions, the city could terminate and reclaim earnest money.

What happens next: the council authorized the due-diligence period; staff are expected to complete environmental and structural testing, title review and cost estimates and report back to council before any closing decision.

Vote record: Yes — Deputy Mayor Bulo; Stevenson; Spanower; Amos. No — LeFever; Esinger; Mugar. (Motion carried 4–3.)