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Home My WebLink AboutItem V - Staff Report PLAN COMMISSION STAFF REPORT SEPTEMBER 3, 2019 ITEM V: PUBLIC HEARING: PROPOSED CREATION OF TAX INCREMENT FINANCING DISTRICT NO. 38 PIONEER REDEVELOPMENT DESIGNATION OF BOUNDARIES AND APPROVAL OF PROTECT PLAN Prior to taking action on proposed Tax Increment District(TID) No. 38 and the designation of boundaries for said TID,the Plan Commission is to hold a public hearing and take comments concerning proposed creation of TID No. 38. The public hearing is required as part of the formal review process the City must follow in the creation of any tax incremental financing district or amendment thereto, GENERAL INFORMATION Applicant: Dumke and Associates,LLC—contingent purchaser Owners: Decades Monthly Income&Appreciation Fund City of Oshkosh State of Wisconsin GENERAL DESCRIPTION/BACKGROUND Please see attached TID No. 38 Project Plan for more detailed information. Tax Incremental District No. 38 (the "TID" or "District") is a proposed 20 acre blight district comprising of Pioneer Island, the adjacent Pioneer Marina and adjoining City and State-owned lands. The proposed district is comprised of three parcels. One under contract by the applicant, one City-owned and one State-owned. The subject area is previously the Pioneer Inn Resort. Based on the assumption of$50 million in potential value generated,the following expenditure could be accommodated. The City could anticipate making possible total expenditures of approximately$29 million to undertake project identified in the Project Plan. Project costs could include up to an estimated$5.91nillion in"pay as you go" development incentives,$16.3 million could be contributed for additional public infrastructure improvements,$6.6 million for interest on long-term debt services and an estimated$200,000 in administrative costs. The City has taken a broad approach to this TID, with the goal of creating as much flexibility for the City of Oshkosh and developer. The developer has indicated they intend to use the TID to help promote and secure additional development within the District. The Project Plan includes a statement listing the kind,number and location of proposed improvements which starts on page 15. It contains an economic feasibility study, a detailed list of estimated project costs and timing of those costs as well as a method of financing starting on page 20. ANALYSIS The City is projecting that new land and improvements value could reach upwards of approximately$50 million will result from redevelopment activity within the District. These key Page 1 assumptions are identified in Section 10 of the Plan starting on page 21. The "expected" improvements will occur on the three parcels located in the district and may entail the following: Use Final land uses have not been determined at this time and will be evaluated as potential projects move forward. It is anticipated at this time that the marina and island could be redeveloped to include a mix of commercial, office,recreational and multifamily uses. Table 1 on page 22 shows the development assumptions when values will be added to each of the sites. The development assumption are anticipating being able to fully develop the district by sometime in 2023. District Life Based on the Municipal Revenue Obligation(MRO) for the development incentive identified on Table 3 on Page 25 of the Plan,the district is anticipated to pay off costs by 2046 at which time the city could potentially terminate, which would be 26 years. If necessary, the district would be permitted to remain open for up to the statutorily allowed 29 years. At that point the full value of the properties would be added back to the overall tax rolls which current estimate is$15.5 million in improvement value alone. This payoff date could change based on potential changes in assessed value of the site. Additionally, should additional project expenditures be undertaken, this may adjust the anticipated termination date of the district. Type of District The District is being created as a blighted area district as defined in Wis. Stat. 66.1105(2)(ae). Specifically, the District consists of land upon which buildings or structures have been demolished and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of the community. In this particular case, all of the parcels involved contain either some levels of environmental contamination or poor structural soils due to the historic nature of the site increasing development costs. Consistency with Plans The proposed Plan is in general conformance with the City of Oshkosh's Comprehensive Plan identifying the area as appropriate for Center City mixed use development. Center City land use's intent to allow"high intensity office,retail,housing,hospitality, conference and public land uses." The subject area is also part of the South Shore East sub area as identified in Imagine Oshkosh—A Master Plan for Our Center City. The sub area specifically identifies this area as needing redevelopment. Beyond that it is also outline as Opportunity Site Q within Imagine Oshkosh, which identifies this as a catalyst site for the Sawdust District and a priority for redevelopment. Imagine Oshkosh also indicates the need for extending 9th Avenue to service the area. The area is also identified as in need of redevelopment in the South Shore Redevelopment Area Plan. The subject area is also part of the Fox River Corridor Riverwalk Plan,the plan indicates the need for both redevelopment of the site and extension of 91h Avenue to service the area. RECOMMENDATIONS/CONDITIONS Staff recommends approval of the Project Plan and Boundaries for TID #38 as proposed. Item V.•Creation of TID#38 Pioneer Redevelopment Project Page 2 Tax Increment District #38 W E Pioneer Redevelopment �1t� oW S District Boundary Oshkosh s ,.7 I HARE DR' 1. � W_7_TH.AV E 7TH:AVf� �) 1N 8TH. E_8l H�AV ` a E:9-T.H.—AV----1 41 w� --WLOTH—AV .._ ---�— E 10TH AV All I> �p 1N..11TM.AVE 11TH.AV x .a sf a W=12TH=AV — all M, 1N SO HUTH PARK AV E_$OU . PARK.AV.1 'LAKE _ WJ4.TH.—AV E-14TH AV won a S T i � s W_:15TH.—AV �E 1_5TH AV Im i t� ail _UV 16TI1.AV Ll 1 Ll Legend _ N' AV Lei TID #38 Boundary z: %0 M 3 0 100 200 400 600 S Feet Date:Tuesday,August O6,2019 m 11,11 n\Nc Map P le fs\TI P 1 \TN3»a8_Pif�rt¢et�R9devetgpit}eMU:4op 1-¶D 38 HAundo0e5.mxd Page 3 TIF 38 PIONEER REDEVELOPMENT FOX VALLEY&WESTERN LTD ADAPTIVE PROPERTIES LLC PC: 09-03-19 17641 S ASHLAND AVE 1302 S MAIN ST HOMEWOOD IL 60430 OSHKOSH WI 54902 OSHKOSH AREA SCHOOL DISTRICT B KENT/EILEEN BAGMAN REV LIVING TRUST CITY OF OSHKOSH 1404 S MAIN ST 126 E JACKSON ST PO BOX 1130 OSHKOSH WI 54902 RIPON WI 54971 OSHKOSH WI 54903 BLENDED WAXES PROPERTIES LLC PALUBIAK PROPERTIES LLC STATE OF WISCONSIN 1512 S MAIN ST 3660 EDGEWATER LN PO BOX 8943 OSHKOSH WI 54902 OSHKOSH WI 54902 MADISON WI 53708 DECADES MONTHLY INCOME& APPREC FUND 13555 BISHOPS CT STE 345 BROOKFIELD WI 53005 Page 4 r tl [ II• !� ,� �� 'SITE �m Y• . r . , J 1 . rIra . ® L we Memo 6. 1� . . i t• 11 UM UMU;'P 1 1" I I. 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For full disclaimer please go to Printing Date:8/12/2019 �.l ��J www.ci.oshkosh.wi.us/GlSdisclaimer Prepared by:City of Oshkosh,WI J TGISTIanningRan Commission Site Plan Map TemplateRan Commission Site Plan Map Template.mxd User:katieb Page 6 t� l rc s y r s 3 { �y gy�ry, 3 00 tin=0.06mi 1 in=300ft ��^At , City of Oshkosh maps and data are intended to be used for general identification purposes only,and City the City of Oshkosh assumes no liability for the accuracy of the information. Those using the 01 information are responsible for verifying accuracy. For full disclaimer please go to Printing Date:8l12l2019 � ��if �4 www.ci.oshkosh.wi.us/GlSdisclaimer Prepared by:City of Oshkosh,WI J:IGIMPlanningRan Commission Site Plan Map Template\Plan Commission Site Plan Map Template.mxd User:katieb Page 7