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HomeMy WebLinkAbout33. 20-30 JANUARY 14, 2020 20-30 RESOLUTION (CARRIED 6-0 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE TAX INCREMENT DISTRICT NO. 39 PROJECT PLAN; DESIGNATE TAX INCREMENT DISTRICT NO. 39 BOUNDARIES; CREATE TAX INCREMENT DISTRICT NO. 39 CABRINI SCHOOL REDEVELOPMENT INITIATED BY: CITY ADMINISTRATION PLAN COMMISSION RECOMMENDATION: Approved WHEREAS, the City of Oshkosh (the "City") has determined that use of Tax Incremental Financing is required to promote development and redevelopment within the City; and WHEREAS, Tax Increment District No. 39 (the "District") is proposed to be created by the City as district in need of rehabilitation or conservation in accordance with the provisions of Wisconsin Statutes Section 66.1105 (the "Tax Increment Law"); and WHEREAS, a Project Plan for the District has been prepared that includes: a. A statement listing the kind,number and location of all proposed public works or improvements within the District, or to the extent provided in Wisconsin Statutes Sections 66.1105(2)(k) and 66.1105(4)(gm), outside of the District; b. An economic feasibility study; c. A detailed list of estimated project costs; d. A description of the methods of financing all estimated project costs and the time when the related costs or monetary obligations are to be incurred; e. A map showing existing uses and conditions of real property in the District; f. A map showing proposed improvements and uses in the District; g. Proposed changes of zoning ordinances, master plan, map,building codes and City ordinances; h. A list of estimated non-project costs; i. A statement of the proposed plan for relocation of any persons to be displaced; j. A statement indicating how the District promotes the orderly development of the City; JANUARY 14, 2020 20-30 RESOLUTION CONT'D k. An opinion of the City Attorney or of an attorney retained by the City advising that the plan is complete and complies with Wisconsin Statutes Section 66.1105(4)(f); and WHEREAS, prior to its publication, a copy of the notice of public hearing was sent to owners of all property in the proposed district, to the chief executive officers of Winnebago County, the Oshkosh Area School District, and the Fox Valley Technical College District, and any other entities having the power to levy taxes on property located within the District, in accordance with the procedures specified in the Tax Increment Law; and WHEREAS, in accordance with the procedures specified in the Tax Increment Law, the Plan Commission, on December 17, 2019 held a public hearing concerning the project plan and boundaries and proposed creation of the District, providing interested parties a reasonable opportunity to express their views thereon; and WHEREAS, after said public hearing, the Plan Commission designated the boundaries of the District, adopted the Project Plan, and recommended to the Common Council that it create such District and approve the Project Plan NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that: 1. The boundaries of the District shall be named "City of Oshkosh Tax Increment District No. 39, Cabrini School Redevelopment", are hereby established as specified in Exhibit A of this Resolution. 2. The District is created effective as of January 1, 2020. 3. The Common Council finds and declares that: (a) Not less than 50% by area of the real property within the District is in need of rehabilitation or conservation work within the meaning of Wisconsin Statutes Section 66.1337(2m)(a). JANUARY 14, 2020 20-30 RESOLUTION CONTD (b) Based upon the findings, as stated in 3(a) above, the District is declared to be a District in need of rehabilitation or conservation based on the identification and classification of the property included within the District. (c) The improvement of such area is likely to enhance significantly the value of substantially all of the other real property in the District. (d) The equalized value of the taxable property in the District plus the value increment of all other existing tax incremental districts within the City, does not exceed 12% of the total equalized value of taxable property within the City. (e) The City estimates that none of the territory within the District will be devoted to retail business at the end of the District's maximum expenditure period, pursuant to Wisconsin Statutes Section 66.1105(5)(b). (f) The project costs relate directly to promoting rehabilitation or conservation of the area consistent with the purpose for which the District is created. (g) All property within TID #39 was within the City boundaries as of January 1, 2004. 4. The attached Project Plan for "City of Oshkosh Tax Increment District No. 39, Cabrini School Redevelopment" is hereby approved, and the City further finds the Plan is feasible and in conformity with the master plan of the City. BE IT FURTHER RESOLVED that the Common Council of the City of Oshkosh hereby approves creation of Tax Incremental Financing District No. 39 Cabrini School Redevelopment. "Exhibit A" TID 39 Cabrini School Redevelopment Legal Description ALL OF LOTS 18 AND 19, PART OF LOT 17 AND PART OF LOTS 20 THROUGH 25, ALL IN BLOCK 54, FORD'S ADDITION LOCATED IN THE SOUTHWEST 1/4 OF THE NORTHEAST 1/4 OF SECTION 24, TOWNSHIP 18 NORTH, RANGE 16 EAST, CITY OF OSHKOSH, WINNEBAGO COUNTY WISCONSIN, BOUNDED AS FOLLOWS: COMMENCING FROM THE SOUTHEAST CORNER OF THE NORTHEAST 1/4 OF SAID SECTION 24; THENCE S89°46'58"W, 1,653.46 FEET ALONG THE SOUTH LINE OF SAID NORTHEAST 1/4 OF SECTION 24 TO A POINT ON THE EXTENDED WEST LINE OF BOYD STREET; THENCE N00°21'28"W, 254.21 FEET ALONG SAID EXTENDED WEST LINE AND WEST LINE OF SAID BOYD STREET TO THE SOUTHEAST CORNER OF LOT 25, BLOCK 54 OF FORD'S ADDITION, ALSO BEING THE POINT OF BEGINNING; THENCE S89°22'48"W, 132.35 FEET ALONG THE SOUTH LINE OF SAID LOT 25; THENCE N00°04'20"W,331.34 FEET; THENCE N89°55'40"E, 16.63 FEET; THENCE N00011'32"E, 100.00 FEET TO A POINT ON THE SOUTH LINE OF MERRITT AVENUE; THENCE N89039'38"E, 113.11 FEET ALONG SAID SOUTH LINE TO THE SOUTHWEST CORNER OF SAID MERRITT AVENUE AND BOYD STREET; THENCE S00021'28"E, 430.61 FEET ALONG THE WEST LINE OF SAID BOYD STREET TO THE POINT OF BEGINNING. SAID AREA CONTAINS 54,884 SQUARE FEET OR 1.260 ACRES, MORE OR LESS. 'Tax Incrernerat District c Cabri"n�i ,School' �Redevelo,p,men�t CP,�,,,,4 dshkosh Parcel Idenfification Tax Incriwmeni Plisirict#31? CIabrint Sch,wi Rodevelopmeni - Porc4fl Wenfificalfon Lb9;fjPAddol8I I to"Mo I 111yW10"" I fotj*� I ti""Wf Cl 1,v,�Pkit,A 1,1 vL�=-il A„1 r A;� MIAMI,' so NO MOM IN riiiiiiiiiii ............. 0A, Im 1,112 J ISO- NIIEFRI H AV I MOM z ma '22M, r,i/ r /r„ � // / i n s ririrrr rill jg, g v WO,I I 41toll g SIN", ill )Mv s rill r Tryy", lo Eli, ig Ow" NIP, ms, adll IV! Oifr Is Tr IMF 1111M moi, ull 61,1011 2"I'll ; Mg N ,mom r/s o"Effl), Leg end A VON" if / w TO #39 MOM/ 712 7 1, Pp 10" AV ..... ............ ...77' 6 kOr Asa �aA Os hkos h TO: Honorable Mayor and Members of the Common Council FROM: Mark Lyons Planning Services Manager DATE: January 9, 2020 RE: Approve Tax Increment District No. 39 Project Plan; Designate Tax Increment District No. 39 Boundaries; Create Tax Increment District No. 39 Cabrini School Redevelopment (Plan Commission Recommends Approval) BACKGROUND Tax Incremental District No. 39 (the "TID" or "District") is a proposed 1.28 acre in need of rehabilitation or conservation district comprising of the former St. Francis Cabrini School. The proposed district is comprised of one parcel. The City anticipates making total expenditures of approximately $582,500 to undertake project identified in the Project Plan. Project costs include an estimated $500,000 in "pay as you go" development incentives (principal and interest) and an estimated $82,500 in administrative costs. The Project Plan includes a statement listing the kind, number and location of proposed improvements which starts on page 14. 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 18. ANALYSIS The City is projecting that new land and improvements value of approximately $1.83 million will result from redevelopment activity within the District. These key assumptions are identified in Section 10 of the Plan starting on page 18. The"expected" improvements will occur on the parcel located in the district and may entail the following: The applicant is proposing an adaptive reuse of the former school building to senior living apartments. Per the submitted narrative, 35 units are planned to be constructed within the former school. Finding appropriate uses for buildings of this type can be challenging as they outlive their original intended use. Table 1 on page 19 shows the development assumptions when values will be added the site. The development assumption are anticipating being able to fully develop the district by sometime in 2021. 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 2035 at which time the city could potentially terminate the district, which would be 16 years. If necessary, the district would be permitted to remain open for up to the statutorily allowed 27 years. At that point the full value of the properties would be added back to the overall tax rolls which current estimate is $1.83 million. 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. The District is being created as an area "in need of rehabilitation or conservation" within the meaning of Wis. Stat. 66.1337 (2m)(a) based on a finding that over 50% of the area is need of rehabilitation. The parcels identified as "in need of rehabilitation or conservation" are shown on the Existing Conditions map on page 10 of the Plan. Example of the proposed improvements can be found on page 12. The subject property contained an aged structure that has outlived its originally intended use and has been vacant for several years. The current owner has indicated they no longer intend to use the build for its originally intended use and would look to either sell or demolish the structure. The applicant is proposing to conserve the historic building (including apply for Historic Tax Credits) and rehabilitate it to a new use. The proposed development scored 98 points on the City's Conservation and Rehabilitation scoring matrix, exceeding the minimum 50 points required. The proposed Plan is in general conformance with the City of Oshkosh's Comprehensive Plan identifying the area as appropriate for Community Facilities. The property was recently rezoned to Institutional with a Planned Development Overlay (I-PD) and Common Council approved a Specific Implementation Plan, which is consistent with recommendations with the Comprehensive Plan for creating diverse housing options in the central city. FISCAL IMPACT The applicant is requesting approximately $500,000 in "pay-as-you-go" development incentive to make the project economically viable. The payments would only be made under the terms of a development agreement and when developed per that agreement and property taxes are paid. RECOMMENDATION The Plan Commission recommended approval of Tax Increment District No.39 Project Plan and the designation of the boundaries at its December 17, 2019 meeting. Respectfully Submitted, Approved: Mark Lyons Mark A. Rohloff Planning Services Manager City Manager City Hall • 215 Church Avenue • P.O.Box 1130 • Oshkosh,WI 54903-1130 http://www.ci.oshkosh.wi.us ITEM: PUBLIC HEARING: PROPOSED CREATION OF TAX INCREMENT FINANCING DISTRICT NO. 39 CABRINI SCHOOL REDEVELOPMENT DESIGNATION OF BOUNDARIES AND APPROVAL OF PROJECT PLAN Plan Commission meeting of December 17, 2019. Prior to taking action on proposed Tax Increment District(TID) No. 39 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. 39. 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: Northpointe Development Corporation Owner: St. Mary's Congregation GENERAL DESCRIPTIONBACKGROUND Please see attached TID No. 39 Project Plan for more detailed information. Tax Incremental District No. 39 (the "TID" or "District") is a proposed 1.28 acre in need of rehabilitation or conservation district comprising of the former St. Francis Cabrini School. The proposed district is comprised of one parcel. The City anticipates making total expenditures of approximately$582,500 to undertake project identified in the Project Plan. Project costs include an estimated$500,000 in "pay as you go" development incentives (principal and interest) and an estimated$82,500 in administrative costs. The Project Plan includes a statement listing the kind,number and location of proposed improvements which starts on page 14. 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 18. ANALYSIS The City is projecting that new land and improvements value of approximately$1.83 million will result from redevelopment activity within the District. These key assumptions are identified in Section 10 of the Plan starting on page 18. The "expected" improvements will occur on the parcel located in the district and may entail the following: Use The applicant is proposing an adaptive reuse of the former school building to senior living apartments. Per the submitted narrative, 35 units are planned to be constructed within the former school. Finding appropriate uses for buildings of this type can be challenging as they outlive their original intended use. Table 1 on page 19 shows the development assumptions when values will be added the site. The development assumption are anticipating being able to fully develop the district by sometime in 2021. 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 2035 at which time the city could potentially terminate the district, which would be 16 years. If necessary, the district would be permitted to remain open for up to the statutorily allowed 27 years. At that point the full value of the properties would be added back to the overall tax rolls which current estimate is $1.83 million. 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 an area "in need of rehabilitation or conservation' within the meaning of Wis. Stat. 66.1337(2m)(a)based on a finding that over 50% of the area is need of rehabilitation. The parcels identified as "in need of rehabilitation or conservation" are shown on the Existing Conditions map on page 10 of the Plan. Example of the proposed improvements can be found on page 12. The subject property contained an aged structure that has outlived its originally intended use and has been vacant for several years. The current owner has indicated they no longer intend to use the build for its originally intended use and would look to either sell or demolish the structure. The applicant is proposing to conserve the historic building (including apply for Historic Tax Credits) and rehabilitate it to a new use. The proposed development scored 98 points on the City's Conservation and Rehabilitation scoring matrix,exceeding the minimum 50 points required. Consistency with Plans The proposed Plan is in general conformance with the City of Oshkosh's Comprehensive Plan identifying the area as appropriate for Community Facilities. The property was recently rezoned to Institutional with a Planned Development Overlay (I-PD) and Common Council approved a Specific Implementation Plan, which is consistent with recommendations with the Comprehensive Plan for creating diverse housing options in the central city. The TIF (Tax Increment Financing) application is consistent with the approved Specific Implementation Plan. RECOMMENDATIONS/CONDITIONS Staff recommends approval of the Project Plan and Boundaries for TID #39 as proposed. The Plan Commission approved of the Project Plan and Boundaries for TID #39 as requested. The following is the Plan Commission's discussion on this item. Site Inspections: Report: Mr. Ford, Mr. Hinz,Mr. Kiefer,Ms. Palmeri and Ms. Propp reported visiting the site. Staff report accepted as part of the record. Item:Creation of TID#39 Cabrini School Redevelopment Tax Incremental District No. 39 (the "TID" or "District")is a proposed 1.28 acre in need of rehabilitation or conservation district comprising of the former St. Francis Cabrini School. The proposed district is comprised of one parcel. Mr. Lyons presented the item and reviewed the site and surrounding area. The City is projecting that new land and improvements value of approximately$1.83 million will result from redevelopment activity within the District. The applicant is proposing an adaptive reuse of the former school building to senior living apartments. Per the submitted narrative, 35 units are planned to be constructed within the former school. Finding appropriate uses for buildings of this type can be challenging as they outlive their original intended use. The District is being created as an area "in need of rehabilitation or conservation" within the meaning of Wis. Stat. 66.1337(2m)(a) based on a finding that over 50% of the area is need of rehabilitation. The proposed Plan is in general conformance with many of the City's Plans. He reviewed the Plan and explained most of the sections. He noted that this TID scored a 98 on the Conservation and Rehabilitation TID matrix which is the highest score to date. He said staff recommends approval of the Project Plan and Boundaries for TID #39 as proposed. Todd Taves (Senior Municipal Advisor, Ehlers) was present to answer any questions. Mr. Fojtik opened technical questions to staff. Ms. Palmeri asked if everyone was present at the Joint Review Board. Mr. Lyons replied everyone but the public member because the public member has to be appointed at the first Joint Review Board meeting. Mr. Ford read from page 2 of the Plan. He asked if Council would be notified if there were additional project expenditures Mr. Lyons replied correct and it would still require that the developer's agreement with Council be approved. Ms. Palmeri asked what extent the ADA accessibility will be as far as visiting or residing. She said there are different tiers. Mr. Lyons replied the applicant can answer that question. Mr. Fojtik opened up the public hearing. Andy Dumke (applicant), 2062 Menominee Drive, said they are putting in an elevator and all units will be accessible. He said about 15% of the units will have roll in showers and counter top heights that meets the needs of anyone that is living there with a wheelchair. Mr. Ford asked if the project would be viable without the TIF. Mr. Dumke replied it would not. He said it is affordable housing and the cost to rehab historical buildings is extremely expensive. He said with doing two of those, they are struggling. He Item:Creation of TID#39 Cabrini School Redevelopment commented with the way the scoring works for affordable housing, some financial participation by the municipality helps with the scoring. Mr. Ford asked if it was the same deal with the tax credits. Mr. Dumke replied affirmatively. There were no other public comments on this item. Mr. Fojtik closed the public hearing. Motion by Ford to approve the project plan and recommending the boundaries to the council and adopting the staff report as the findings. Seconded by Hinz. Mr. Fojtik asked if there was any discussion on the motion. Mr. Ford commented it is a great use of a building which no longer has its original use. Mr. Fojtik complimented staff on the presentations of each of the TIFs. He said it is helpful to understand and understand that they are all different. He stated he has a much better understanding of the process than he did before all thanks to staff. Mr. Hinz thanked staff for having the workshops because it makes the TID process easier and allows Plan Commission to ask questions ahead of time. He said the workshop was very productive. He said he hopes they keeps doing this because it is nothing but good for the community,especially being able to save buildings like this one. Mr. Kiefer thanked Mr. Dumke for keeping the building alive. He commented that he went to school there for eight years and it is good to see it remain viable and a part of the landscape. Ms. Erickson stated she appreciates having this opportunity for affordable senior apartments, which is a huge need the city has. Motion carried 9-0. Site Inspections: Report: Mr. Ford, Mr. Hinz,Mr. Kiefer,Ms. Palmeri and Ms. Propp reported visiting the site. Staff report accepted as part of the record. Tax Incremental District No. 39 (the "TID" or "District")is a proposed 1.28 acre in need of rehabilitation or conservation district comprising of the former St. Francis Cabrini School. The proposed district is comprised of one parcel. Mr. Lyons presented the item and reviewed the site and surrounding area. The City is projecting that new land and improvements value of approximately$1.83 million will result from Item:Creation of TID#39 Cabrini School Redevelopment redevelopment activity within the District. The applicant is proposing an adaptive reuse of the former school building to senior living apartments. Per the submitted narrative, 35 units are planned to be constructed within the former school. Finding appropriate uses for buildings of this type can be challenging as they outlive their original intended use. The District is being created as an area "in need of rehabilitation or conservation' within the meaning of Wis. Stat. 66.1337(2m)(a) based on a finding that over 50% of the area is need of rehabilitation. The proposed Plan is in general conformance with many of the City's Plans. He reviewed the Plan and explained most of the sections. He noted that this TID scored a 98 on the Conservation and Rehabilitation TID matrix which is the highest score to date. He said staff recommends approval of the Project Plan and Boundaries for TID #39 as proposed. Todd Taves (Senior Municipal Advisor, Ehlers) was present to answer any questions. Mr. Fojtik opened technical questions to staff. Ms. Palmeri asked if everyone was present at the Joint Review Board. Mr. Lyons replied everyone but the public member because the public member has to be appointed at the first Joint Review Board meeting. Mr. Ford read from page 2 of the Plan. He asked if Council would be notified if there were additional project expenditures Mr. Lyons replied correct and it would still require that the developer's agreement with Council be approved. Ms. Palmeri asked what extent the ADA accessibility will be as far as visiting or residing. She said there are different tiers. Mr. Lyons replied the applicant can answer that question. Mr. Fojtik opened up the public hearing. Andy Dumke (applicant), 2062 Menominee Drive, said they are putting in an elevator and all units will be accessible. He said about 15% of the units will have roll in showers and counter top heights that meets the needs of anyone that is living there with a wheelchair. Mr. Ford asked if the project would be viable without the TIF. Mr. Dumke replied it would not. He said it is affordable housing and the cost to rehab historical buildings is extremely expensive. He said with doing two of those, they are struggling. He commented with the way the scoring works for affordable housing, some financial participation by the municipality helps with the scoring. Mr. Ford asked if it was the same deal with the tax credits. Mr. Dumke replied affirmatively. Item:Creation of TID#39 Cabrini School Redevelopment There were no other public comments on this item. Mr. Fojtik closed the public hearing. Motion by Ford to approve the project plan and recommending the boundaries to the council and adopting the staff report as the findings. Seconded by Hinz. Mr. Fojtik asked if there was any discussion on the motion. Mr. Ford commented it is a great use of a building which no longer has its original use. Mr. Fojtik complimented staff on the presentations of each of the TIFs. He said it is helpful to understand and understand that they are all different. He stated he has a much better understanding of the process than he did before all thanks to staff. Mr. Hinz thanked staff for having the workshops because it makes the TID process easier and allows Plan Commission to ask questions ahead of time. He said the workshop was very productive. He said he hopes they keeps doing this because it is nothing but good for the community,especially being able to save buildings like this one. Mr. Kiefer thanked Mr. Dumke for keeping the building alive. He commented that he went to school there for eight years and it is good to see it remain viable and a part of the landscape. Ms. Erickson stated she appreciates having this opportunity for affordable senior apartments, which is a huge need the city has. Motion carried 9-0. Item:Creation of IID#39 Cabrini School Redevelopment W " E Tax Increment District #39 APIA 1% Cabrini School Redevelopment City Of S District Boundary Oshkosh V) N z w Q o 0 Co 24A 5 OA 720A 24 530 600 712 716 720 MERRITT AV 1 13 F� 7 1 1 51 Q 5 1A �® LV TID I'I N E N - #39 0 7 L" El ® AN � o o � 0 0 m 0 ❑ Legend 0 n 1-1 n aTID #39 Boundary 604 4 706 712 748 0 75 150 60 610 Feet Date:Wednesday,November20,2019 WASHINGTON AV TIF NO 39 MELISSA WARA LINDA M MONROE CABRINI SCHOOL REDEVELOPMENT 429 MONROE ST 433 MONROE ST PC: 12-17-19 OSHKOSH WI 54901 OSHKOSH WI 54901 MICHAEL R/DEBORAH L KREMER MARIE MEIDL ALBERT MOUSTAKIS 445 MONROE ST 451 MONROE ST 2707 DEERSKIN PARK RD OSHKOSH WI 54901 OSHKOSH WI 54901 EAGLE RIVER WI 54521 GERALD W/CHERYL M JACKLIN ST MARYS CONG ST MARYS CONG 408 MONROE ST 442 MONROE ST 449 HIGH AVE OSHKOSH WI 54901 OSHKOSH WI 54901 OSHKOSH WI 54901 THOMAS L BARLOW JENNIFER L MILLER DANIEL G/DAVID OROURKE TRUST 419 BOYD ST 415 BOYD ST 683 N MAIN ST C OSHKOSH WI 54901 OSHKOSH WI 54901 OSHKOSH WI 54901 OSHKOSH HOUSING AUTHORITY D&M RENTALS LLC KRISTI WEISS PO BOX 397 55 KNAPP ST 450 BOYD ST OSHKOSH WI 54903 OSHKOSH WI 54902 OSHKOSH WI 54901 EUGENE E/SHANAH A ZASTERA SHERRIE A GRUNWALD RDA 1882 CLAIRVILLE RD 438 BOYD ST PO BOX 1130 OSHKOSH WI 54904 OSHKOSH WI 54901 OSHKOSH WI 54903 HAROLD R/NANCY SALZER CHARLES E/SHARON L DURANT SCOTT A BREHMER 430 BOYD ST 426 BOYD ST 422 BOYD ST OSHKOSH WI 54901 OSHKOSH WI 54901 OSHKOSH WI 54901 DAVID H/YVETTE Y BRULEY CHARLOTTE EICHSTADT REV TRUST GROH LAND COMPANY LLC 418 BOYD ST 4356 JACKSON ST 1402 JAMES RD OSHKOSH WI 54901 OSHKOSH WI 54901 OSHKOSH WI 54904 SCOTT M ENGEL NORTHPOINT DEVELOPMENT CORP 910 COZY LN 420 S KOELLER ST STE 230 OSHKOSH WI 54901 OSHKOSH WI 54902 Page 4 ----M ERRI "-T-AV 267.5' 77, 'N 31 E ........... 39.0' z 0 00 C/? fl- CI) 0 N C) c6 Lo ........................... ................... ....................... 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P w § s k ✓„'mac r t w n�c n. ti w�x k"fp I " " s. m F t I - t i t' 9 t, ZA 1 in=0.01 mi K f -------------------- ^A ' City of Oshkosh maps and data are intended to be used for general identificafion purposes only,and Cite the City of Oshkosh assumes no liability for the accuracy of the information. Those using the f information are responsible for verifying accuracy. For full disclaimer please go to Printing Date: 11/20/2019 Oshkosh www.ci.oshkosh.wi.us/GlSdisclaimer Prepared by: City of Oshkosh, WI J:1GIS\Planning\Plan Commission Site Plan Map TemplatelPlan Commission Site Plan Map Template.mxd pale katlpb g'Q" EHLERS 0 LEADERS IN PUBLIC FINANCE December 17, 2019 Project Plan for the Creation of Tax Incremental District No. 39 (Cabrini School Redevelopment) ^AA c7ii . Oshkosh Organizational Joint Review Board Meeting: Scheduled for December 17, 2019 Public Hearing: Scheduled for December 17, 2019 Approval by Plan Commission: Scheduled for December 17, 2019 Adoption by Common Council: Scheduled for January 14, 2020 Approval by the Joint Review Board: Scheduled for January 20, 2020 BUILDING COMMUNITIES. IT'S WHAT WE DO. F1,r Irrfo@ohlem-Inc.com Qq, 1(000)552-1171 Q wwwAhlers-inc.com Tax Incremental District No. 39 Creation Project Plan City of Oshkosh Officials Common Council Lori Palmeri Mayor Steve Herman Deputy Mayor Debra L.Allison-Aasby Council Member Jake Krause Council Member William Miller Council Member Matt Mugerauer Council Member Bob Poeschl Council Member City Staff Mark Rohloff City Manager Allen Davis Community Development Director Lynn Lorenson City Attorney Mark Lyons Planning Services Manager Kelly Nieforth Economic Development Services Manager Russ Van Gompel Finance Director Pamela Ubrig City Clerk Plan Commission Thomas Fojtik,Chair John Hinz Kathleen Propp,Vice-Chair John Kiefer Mamadou Coulibaly Justin Mitchell Lynnsey Erickson Lori Palmeri,Mayor Mike Ford Thomas Perry Derek Groth Joint Review Board Mark Rohloff, City Manager City Representative Mark Harris, County Executive Winnebago County Amy Van Straten,Chief Financial Officer Fox Valley Technical College District Barbara Herzog, School Board President Oshkosh School District Burk Tower Public Member Table of Contents EXECUTIVE SUMMARY...........................................................................................................................................4 TYPE AND GENERAL DESCRIPTION OF DISTRICT........................................................................................7 PRELIMINARY MAPS OF PROPOSED DISTRICT BOUNDARY......................................................................8 MAPS SHOWING EXISTING USES AND CONDITIONS.................................................................................10 PRELIMINARY PARCEL LIST AND ANALYSIS.................................................................................................12 EQUALIZED VALUE TEST.....................................................................................................................................13 STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PUBLIC WORKS AND OTHER PROJECTS................................................................................................................................................................14 MAP SHOWING PROPOSED IMPROVEMENTS AND USES.........................................................................15 DETAILED LIST OF PROJECT COSTS ..............................................................................................................17 ECONOMIC FEASIBILITY STUDY, FINANCING METHODS, AND THE TIME WHEN COSTS OR MONETARY OBLIGATIONS RELATED ARE TO BE INCURRED..................................................................18 ANNEXEDPROPERTY...........................................................................................................................................23 ESTIMATE OF PROPERTY TO BE DEVOTED TO RETAIL BUSINESS......................................................23 PROPOSED ZONING ORDINANCE CHANGES................................................................................................23 PROPOSED CHANGES IN MASTER PLAN, MAP, BUILDING CODES AND CITY OF OSHKOSH ORDINANCES..........................................................................................................................................................23 RELOCATION...........................................................................................................................................................23 ORDERLY DEVELOPMENT OF THE CITY OF OSHKOSH.............................................................................24 LIST OF ESTIMATED NON-PROJECT COSTS.................................................................................................24 OPINION OF ATTORNEY FOR THE CITY OF OSHKOSH ADVISING WHETHER THE PLAN IS COMPLETE AND COMPLIES WITH WISCONSIN STATUTES 66.1105 ......................................................25 CALCULATION OF THE SHARE OF PROJECTED TAX INCREMENTS ESTIMATED TO BE PAID BY THE OWNERS OF PROPERTY IN THE OVERLYING TAXING JURISDICTIONS......................................26 SECTION 1 : Executive Summary Description of District Tax Incremental District ("TID") No. 39 ("District") is a proposed district in need of rehabilitation or conservation consisting of a 1.28-acre parcel at the location of the former St. Francis Cabrim School which had stood vacant since 2017. The City has received an application from Northpointe Development Corporation ("Developer") for tax incremental financing ("TIF") assistance to support rehabilitation of the school structure for use as low-income senior apartments ("Project"). The Project will include construction of approximately 35 apartment units and 26 single car garage units as well as surface parking. The Project would be financed with a combination of Low-Income Housing Tax Credits (LIHTC), Historic Tax Credits, Community Development Block Grant funds and a "pay as you go" development incentive provided by the District. Developer intends to make application in early January 2020 to the Wisconsin Housing & Economic Development Authority for the tax credits. If credits are awarded, Developer expects to commence construction in October of 2020 with Project completion and occupancy in the summer of 2021. Developer is requesting creation of the District at this time as the application for tax credits must include documentation of the Project's funding sources and financial feasibility. Authority The City is creating the District under the provisions of Wis. Stat. § 66.1105. Estimated Total Project Cost Expenditures The City anticipates making total expenditures of$582,500 ("Project Costs") to undertake the projects listed in this Project Plan ("Plan"). Project Costs include a $500,000 development incentive, and an estimated $82,500 in District administrative expense. The potential incentive amount is based on Developer's assistance request. To the extent development incentives are provided, the amounts, timing of and related conditions will be determined based on the City's review and confirmation of a demonstrated financing gap and may therefore vary from the assumptions used in the Plan for purposes of assessing economic feasibility. Incremental Valuation The City projects that an incremental increase in land and improvements value of approximately $1,830,000 will result from the Project. Creation of this additional value will be made possible by the Project Costs made within the District. Assumptions as to the development timing and associated values are included in Section 10 of this Plan. Expected Termination of District Based on the Economic Feasibility Study located within Section 10 of this Plan, the City anticipates that the District will generate enough tax increment to pay all Project Costs by the year 2035, reflecting 14 years of tax increment collections, and 16 years of total elapsed time. If necessary, the District would be permitted to remain open for up to 29 years, allowing for up to a total of 27 years of tax increment collection. TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 4 December 17, 2019 Summary of Findings As required by Wis. Stat. § 66.1105, and as documented in this Plan and the exhibits contained and referenced herein,the following findings are made: 1. That "but for" the creation of this District, the development projected to occur as detailed in this Plan: 1) would not occur; or 2) would not occur in the manner, at the values, or within the timeframe desired by the City. The City recognizes the community need for affordable senior housing which typically requires TIF participation. The Developer's application for TIF assistance reflects an Internal Rate of Return of 4.04% for the tax credit investor if $500,000 in development incentives are provided to the Project, and a 1.41% return without incentives. Developer has further stated that tax credit investors typically seek a 4% to 5.5% return on similar projects. Based on the Developer's representations in their application for TIF assistance, the City has concluded that the Project would not likely proceed without a development incentive. The specific amount and terms of any incentive provided to the Project will be subject to additional due diligence undertaken by the City prior to approval of a development agreement to include verification of the Project's sources and uses, projected cashflows, financing gap and investor returns. The City has elected to defer further analysis until the Developer has secured the tax credit allocation for the Project. 2. The economic benefits of the District, as measured by increased employment, business and personal income, and property value, are sufficient to compensate for the cost of the improvements. In making this determination, the City has considered that in addition to the incremental value expected to be created,the Project will result in rehabilitation and conservation of the former school building, creation of affordable senior housing, and provision of employment and commercial opportunities related to the construction and operation of the Project. 3. The benefits of the proposal outweigh the anticipated tax increments to be paid by the owners of property in the overlying taxing jurisdictions. As required by Wis. Stat. § 66.1105(4)(1)4., a calculation of the share of projected tax increments estimated to be paid by the owners of property in the overlying taxing jurisdictions has been prepared and can be found in Appendix A of this plan. However, because the Project would not occur without the use of tax incremental financing, these tax increments would not be paid but for creation of the District. Accordingly, the City finds that the benefits expected to be realized as set forth in this Plan outweigh the value of the tax increments to be invested in the Project. 4. Not less than 50% by area of the real property within the District is in need of rehabilitation or conservation within the meaning of Wis. Stat. § 66.1337(2m)(a) and as further detailed in Section 5 of the Plan. 5. Based on the foregoing finding, the District is designated a district in need of rehabilitation or conservation based on the identification and classification of the property included within the District. 6. The Project Costs relate directly to rehabilitating and conserving property, consistent with the purpose for which the District is created. TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 5 December 17, 2019 7. Improvements to be made in the District are likely to significantly enhance the value of substantially all of the other real property in the District. 8. The equalized value of taxable property in the District, plus the incremental value of all existing tax incremental districts within the City does not exceed 12% of the total equalized value of taxable property within the City. 9. That there are no parcels to be included within the District that were annexed by the City within the three-year period preceding adoption of this Resolution. 10. That none of the territory within the District will be devoted to retail business at the end of the District's maximum expenditure period,pursuant to Wis. Stat.§ 66.1105(5)(b). 11. The Plan for the District is feasible and is in conformity with the Master Plan of the City. TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 6 December 17, 2019 SECTION 2: Type and General Description of District The District is a proposed district in need of rehabilitation or conservation consisting of a 1.28 acre parcel at the location of the former St. Francis Cabrini School which had stood vacant since 2017. The City has received an application from Developer for TIF assistance to support rehabilitation of the school structure for use as low-income senior apartments. The Project will include construction of approximately 35 apartment units and 26 single car garage units as well as surface parking. The Project would be financed with a combination of Low-Income Housing Tax Credits (LIHTC), Historic Tax Credits, Community Development Block Grant funds and a "pay as you go" development incentive provided by the District. Developer intends to make application in early January 2020 to the Wisconsin Housing & Economic Development Authority for the tax credits. If credits are awarded, Developer expects to commence construction in October of 2020 with Project completion and occupancy in the summer of 2021. Developer is requesting creation of the District at this time as the application for tax credits must include documentation of the Project's funding sources and financial feasibility. TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 7 December 17, 2019 SECTION 3- Preliminary Maps of Proposed District Boundary Tax Increment District #39 Al E Cabrini School Redevelopment S District Boundary Oshkosh Lo I«J I ■ Mi f � � . ID ® ca 720A 60© � 71Ci T2q MERRITT AV 1 605 619 701 '705 7o9 713 721 I� 7p7q � I co ■ 1 TID ■ #3 : m MP ® c; Legend ■ ■ IND .TID#39 Boundary u as isu 706 712 Ti8 r :wear r.rro ao.aez9 WASNINGTON AV TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 8 December 17, 2019 " Tax Increment District #39 E Cabrini School Redevelopment �IrOW 5 Parcel Identification Oshkosh Tax Increment District#39 -Cabrini Schaal Redevelopment- Parcel Identification Land I Improu. I Total I Equalize [Swelling Census Map tD Parcel N Owner Local Address Value Value Value d Value Class UnIts Tract lonft ','T PJ!AF2YS cdNC6;C=nil[�SN r�r-r;i �!c%1Lb. !I I A,L zul ;t',11 �:,�i 6lLSHID SACRAWN7 PARISH TOTALS: $0 $0 $0 50 r c> Z 0 dA n 5 720A 600 7 � 70E 712 716 720 v MERRITI AV 721 1 —527 _ L ¢ 7 I tt TO ■ J # - m - 1 0Wr Ili Mr -01 SIM rn f Legend f ®Ti©#39 Boundary — tif 706 712 718 r•,r ,.s,� t,s,ri: a., c.24s4 WASHINGTONAV TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 9 December 17, 2019 SECTION 4: Maps Showing Existing Uses and Conditions Tax Increment District #39 F Cabrini School Redevelopment Cii.o� Existing Land Use Oshkosh ss•!'i♦•♦i♦i� - 1♦♦ii!♦i♦ ss♦ss♦i� �i}ai�i♦ ♦♦s� �i♦♦iii♦♦♦♦♦i♦�i♦♦+� • i} +♦+•R♦}i�t ♦. .+♦♦♦►♦ i}t♦+t♦i�f +♦+♦*�!. iiii}♦� ♦! ♦s+•♦i �i♦♦♦+�� i ♦♦♦♦♦i♦ii! ♦i F i ♦♦♦ *♦+i♦i♦ •+i+i• ♦ i!i •♦♦v+ yy ♦♦♦ iA ►f♦i ♦♦♦♦ emir Ri♦s• •**++ i�ri♦�♦�s s•i♦�'`♦♦ •♦♦•♦ ♦si♦v♦sue' ¢ 'f►'♦ � •♦#♦♦♦ �yi♦*♦+♦♦`•♦♦A!`i 'fir}♦♦�'•' s♦•! +♦�♦`♦�i� sin �i+f!!♦♦ ♦i♦iAl� ♦!••♦±}I i 4 •♦♦••• O , ••i iiii♦ski ♦Zi '�` ♦ ♦ s ! OLU ♦♦i • ••i +♦ i• ii♦i!i j �} st♦� � � { m MERRITT AV Q ♦• ♦♦••• •♦ '♦ •♦ ♦'� • if *♦♦ IV V � *i•+iii♦f♦'i} i i♦♦ ♦s! +♦}}ii }♦ ♦ }♦ i •4i �f♦• ♦ R ! • CK ♦♦i♦♦♦♦♦iii+fff - ♦♦♦♦♦♦♦♦ i i♦ ♦ � + �`► ♦iiii!♦+ ♦♦♦f ♦♦i ♦♦♦ +!♦♦ i♦i ♦`s+O•i!i♦•• R�T iiifls♦i♦ s♦•s }♦'♦ i♦si•••ii i ♦♦♦♦ ♦i!♦• • s♦ems♦i ♦♦ iiii :,. '. `. i♦♦!« f♦♦♦♦ ♦♦ • WASHIi1GTON AV .* b' �r'♦}r*+fi ♦"hi UN- Legend Existing Land Use •s'i '`'i ♦� i•►* i•` i Commercial ♦+.+.♦ Single&Two Family •♦ ♦•i+ i ♦i +*♦++ ±+i TO#39 Boundary ♦♦ • •♦♦ Mixed-Use Multi-Family • 0 100 `00 Parking Lot Parks&Recreation ♦ •i Feet '♦ •••� ;♦s ♦ 1■ ■ Government Institutional (] « ♦ •♦ +0•♦ ♦ ♦♦ ♦i Dote:Wodms ay,November 20,2019 ♦ • • +i ♦ ♦� ♦i•♦ Infrastructure Vacant Land TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 10 December 17, 2019 IN Tax Increment District #39 /�j W E Cabrini School Redevelopment ci1c S Existing Conditions Oshkosh 1R1 _ BLS b= W k 600 l wr _ MERRITT AV :F 2-- Former- l 4 - tiq. Former school now 1A� vacant,in need of -4 _- � p rehabilitation I , ' r I � p� IT 71D N O M ifs Legend ID I TID #39 Boundary 702 718 0 75 150 Feet Doie:Wednesday,N—.ber20,2015 A HINGTON AV ML TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 11 December 17, 2019 SECTION 5: Preliminary Parcel List and Analysis The District will consist of a single tax parcel: Lot _ ("Lot") of a Certified Survey Map approved on ,2019.As of January 1,2019,the Lot was part of the following parcel: Parcel Number: 04-0435-000 Address: 605 Merritt Avenue Owner: St.Mary's Congregation The Lot comprises 1.28 acres of the original 2.51-acre parent parcel and is the site of the former St. Francis Cabrini School. The school structure, which has sat vacant for the past three years, will be converted to a 35-unit low income senior apartment complex is in need of rehabilitation or conservation as defined in Wis. Stat. § 66.1337(2m)(a). Specifically, the Project will involve carrying out plans for a program of voluntary repair and rehabilitation of buildings or other improvements as identified below. The rehabilitation of the building will include: • ADA accessibility improvements which includes installing an elevator. • The interior must be modified for apartments which will include new code-compliant spaces for bedrooms,bathrooms and kitchens. • The plumbing system must be replaced. • The HVAC system must be replaced. • The electrical system must be replaced. The conservation of the building exterior will include: • Brick maintenance and tuck pointing. • Window replacement. • Door replacement. • Roof and stairway repairs as needed. TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 12 December 17, 2019 SECTION 6: Equalized Value Test The following calculations demonstrate that the City expects to be in compliance with Wis. Stat. § 66.1105(4)(gm)4.c., which requires that the equalized value of the taxable property in the proposed District,plus the value increment of all existing tax incremental districts,does not exceed 12%of the total equalized value of taxable property within the City. The equalized value of the increment of existing tax incremental districts within the City, plus the base value of the proposed District,totals $176,732,100,or about 4.2%of the City's total equalized value. This value is less than the maximum of$505,391,460 in equalized value that is permitted for the City. City of Oshkosh, Wisconsin ComplianceTax Increment District#39 Valuation Test . District Creation Date 1/14/2020 Valuation Data Currently Available 2019 Tota I EV(TI D In) 4,211,595,500 12%Test 505,391,460 Increment of Existing TI Ds 176,732,100 Projected Base Value of District 0 Total Value Subject to 12%Test 176,732,100 Compliance TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 13 December 17, 2019 SECTION 7: Statement of Kind, Number and Location of Proposed Public Works and Other Projects Project Costs are any expenditure made, estimated to be made, or monetary obligations incurred or estimated to be incurred as outlined in this Plan. Project Costs will be diminished by any income, special assessments or other revenues, including user fees or charges, other than tax increments, received or reasonably expected to be received in connection with the implementation of the Plan. If Project Costs incurred benefit territory outside the District, a proportionate share of the cost is not a Project Cost. Costs identified in this Plan are preliminary estimates made prior to design considerations and are subject to change after planning, design and construction is completed. With all Project Costs, the costs of engineering, design, survey, inspection, materials, construction, restoring property to its original condition, apparatus necessary for public works, legal and other consultant fees, testing, environmental studies,permits,updating City ordinances and plans,judgments or claims for damages and other expenses are included as Project Costs. The following is a list of public works and other tax incremental financing eligible Project Costs that the City expects to make, or may need to make, in conjunction with the implementation of the District's Plan. The map found in Section 7 of this Plan along with the Detailed List of Project Costs found in Section 9 provide additional information as to the kind, number and location of potential Project Costs. Community Development Cash Grants (Development Incentives) The City may enter into agreements with property owners, lessees, or developers of land located within the District for sharing costs to encourage the desired kind of improvements and assure tax base is generated sufficient to recover Project Costs. No cash grants will be provided until the City executes a developer agreement with the recipient of the cash grant. Any payments of cash grants made by the City are eligible Project Costs. Miscellaneous Professional Service and Organizational Costs The costs of professional services rendered, and other costs incurred, in relation to the creation, administration and termination of the District, and the undertaking of the projects contained within this Plan, are eligible Project Costs. Professional services include but are not limited to: architectural; environmental; planning; engineering; legal; audit; financial; and the costs of informing the public with respect to the creation of the District and the implementation of the Plan. Administrative Costs The City may charge to the District as eligible Project Costs reasonable allocations of administrative costs, including,but not limited to, employee salaries. Costs allocated will bear a direct connection to the time spent by City employees relating to the implementation of the Plan. TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 14 December 17, 2019 SECTION 8- Map Showing Proposed Improvements and Uses " Tax Increment District #39 w E Cabrini School Redevelopment �� S Proposed Improvements Oshkosh 0 .z' w q _ 0 53G ',r600 �MERRITT AV 9A; T Former school to be l A. renovated and converted into 35 senior apartments v 0 A All Garage to -A be razed New 16 stall garage New 10 i stall garage c7 Legend �TID#39 Boundary -77 0 75 150 Feet Date,Wednesday,Hl—ber2o,2n19 A WINGTON AV i — TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 15 December 17, 2019 Tax Increment District #39 CA Cabrini School Redevelopment cl�n 5 Proposed Land Use Oshkosh 1♦ ♦wwttfir a«t w1/ ♦1w4 4 wiwwl� �if•1♦ wa♦ ♦A♦•♦ ♦ ♦w♦i♦trt #i! r 4 t 4 r•4 t r ,♦'!i♦4 iti'i't� #♦♦i♦ +i+a •i♦iria+ti�1 iwwrtr• trwrtit� ♦�tii♦♦it ♦w 4 t ♦�*iilwawi wwiitt'+� 4 f! i w t i i a f a♦f♦ -i••A A i iS► ♦♦•i i A a^♦ • ♦♦ii• !•a+ to+# !a! ♦a♦w ♦ A♦4aaiw♦ _ _ s♦ta.s t• ♦•r ++twi i1i itt♦♦• w+i� ♦ w♦Aa« +♦+« •a♦ A♦i a♦iw•♦ ♦♦♦s aw♦w� ♦«++ sws� •fii• a++rs sa«♦t �♦•ws +♦+w ♦+w♦ ♦+w ♦♦+• •++ •a sasw�ts♦s ♦♦i a+ r w w♦ �i w w ♦'�+1«it«Ii s w w i� i1 11♦t • ♦two« a+wsrr ",w+'sw+ 'swiwiZ. +r�♦♦• •«1♦., • � ♦Irrw •f+♦ ♦♦w# ♦lFw1 ♦wlww ♦♦w ♦1♦4* - /♦♦♦ �Iw♦ •♦f•# • �i4s♦wIs rrwtw w i•♦ ♦4 i# #f'i'•ii' t•♦it'A*i L6 i ♦♦t♦♦ L ♦i a• ♦i♦ w a•i♦ z Q i♦ti.• aa• ♦sw'i'� ♦♦ itwr♦ Q • �•!i ♦a♦s♦ ti♦• •sast � S}r a ♦ti•♦ 4♦1♦ •♦w ♦♦♦.♦a► LU to ♦i♦twtltl twsw♦is�r «A 1'♦ tsliAt '♦114 ♦Aw« w++i♦sw♦♦«� � �t+w •♦wad ♦♦ « ♦♦ww � r♦t♦ 1•♦/ «www♦wk • ♦1♦I t w D w►'tw♦'1. ♦w'1♦s'♦ w'w'f ♦*f. w♦♦Is� �1♦t ♦s♦i w ♦IIIs♦ � ♦ w t♦ t♦ • ♦ ♦ � •s r �„ � ♦ t ♦ as ♦ i tit i♦♦iit •w it ♦. iit r� LU U MERRITT AV ca ♦1 ♦i•�� rt ate at ♦• • '♦ '♦' ♦ ♦' ♦r •t 't ♦� 'i t' t • i iir s ♦ t ♦ ♦ i•w ♦stf- t♦a• 'a' Aas• ♦♦t i♦tsw *t•♦ ♦• 1C� � � +ia s♦at 4is 4 t[ •♦w++tltl+i'A. f'�'LJ •♦wtw++♦w A!i♦ ttAti♦ii ♦a a t• i a•«r♦♦r ♦a�i «sA A•Ia + i ♦ « a i s♦ i�1'1♦♦' tr • wt ♦ /t+awwww #�[� ♦awaw}s s♦w; w s 1 •I+w1is f«+swwww ♦♦+ ♦ � -as swwrs♦r« ♦♦♦♦ wrw ♦♦w srw• ..t w+# ++rw♦w++t�wa♦t - R CT w♦♦i♦t••1' r ♦ww ♦♦If ww1♦ w A/ rift w♦wwr�♦~°i 1♦i 4 t o tw1♦rt1• t♦t' ♦ f• •♦a w '*i�•'w♦♦'♦♦ '♦a♦a at♦ttr ♦♦•4 !t wwlir ♦ ♦ ♦♦♦♦♦ • ►♦t♦ it ff♦ i ♦♦it ttwit t11 i wt♦ ♦wa •i t♦ Ott♦ Itf ♦i♦s4 r a♦a1♦ • i tt - /♦f 4 4itt ♦ 1. waa ti♦ 4♦ rra'« i♦s♦ aat • ♦• 144M♦ •♦ti ♦♦+ ♦t t awa! ♦t #w4t♦ ! aaaai • ♦a t♦ trti ♦s ♦ to«i i♦ � 4a♦w #«i♦ ia♦♦w t i♦ Aw •♦at ♦sA«A ilia A♦ t s ♦+ - i• •♦ 4♦ 1 ♦♦ a ♦ i♦ 14 t • ♦ to♦. ♦ta♦ trt ia. ♦ ♦♦ •♦ ♦ ♦ rt / ♦ ♦ ♦ •1 ♦w rt w ♦♦ ♦ ♦ ♦♦ ♦♦ w ♦ � ♦ • w r • wwtr w♦w ww ♦ v♦ ♦ r • •w ♦ r r♦ • 1 ♦ ♦ s1w ♦♦ a♦ ♦ 1♦ f r r♦ tr'r t♦ tt �t tt t♦ tr t« t' ♦t twt♦ t't ♦♦pis ♦• rr w 4 ♦ iw* i WASHINGTON AV I tit Ais 'i"++tt t-�►�a�i�+iiA Ah+* 4i$ !r♦ V� I is i♦ t ♦at siii ♦+ i+ wt+ tt ♦ tt ♦ • A wt♦♦! ♦wii♦ w w •a •• ♦• ♦ is♦t ttt to ♦aA♦ •tt♦ � w+♦ ♦i t ♦♦ ♦twt t't ♦♦t'w♦ Legend Proposed land Use ♦♦ ' srw♦rw t ++ • tit ♦'♦ �w�w '•r'�+ ♦+6+ ♦♦+ Commercial ••♦•!! Single&Two Family TID#39 Boundary 1• t'"�♦1 ww. � Mixed-else Multi-Family 200 Parking Lot y�L Parks& Recreation t Few +w '� •`tw '1'w 44 Government Institutional ❑ i t wt tw tw•• w tw ♦♦ Do Pe:Wsdnesdav,November 2[7.2II19 a't r w ♦♦ ♦ �♦•� w'ts - Infrastructure Vacant hand TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 16 December 17, 2019 SECTION 9: Detailed List of Project Costs The following list identifies the Project Costs that the City may incur in implementing the District's Plan. All projects identified, and related costs reflect the best estimates available as of the date of preparation of this Plan. All costs are preliminary estimates and may increase or decrease. Certain Project Costs listed may become unnecessary, and other Project Costs not currently identified may need to be made. (Section 7 details the general categories of eligible Project Costs). Changes in Project Cost totals or the types of Project Costs to be incurred will not require that this Plan be amended. This Plan is not meant to be a budget nor an appropriation of funds for specific Project Costs,but a framework within which to manage Project Costs. City ofOshkosh, Wisconsin Tax Increment District # • Detailed List of Project Costs Project Name/Type Timeframe Total Development Incentives' 2023-2035 $ 500,000 TIF Administrative Expenses 2020-2035 $ 82,500 Total Projects $ 582,500 Notes: 1lncentiveshown reflects requested amount from Developer's TIF Application dated 10-23-2019,and is identified for purposes of establishing economic feasibility only.The City has not agreed to final terms or conditions with Developer TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 17 December 17, 2019 SECTION 10: Economic Feasibility Study, Financing Methods, and the Time When Costs or Monetary Obligations Related are to be Incurred This Section includes a forecast of the valuation increases expected within the District, the associated tax increment collections, a summary of how Project Costs would be financed, and a projected cash flow demonstrating that the District is economically feasible. Key Assumptions The Project Costs the City plans to make are expected to create $1,830,000 in incremental value by January 1, 2022. The development Project estimated valuations and timing are included in Table 1. Assuming the City's current equalized TID Interim tax rate of$25.11 per thousand of equalized value, and no economic appreciation or depreciation, the Project would generate $1,194,350 in incremental tax revenue over the 27-year term of the District as shown in Table 2. TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 18 December 17, 2019 City ofOshkosh Tax Increment District # 39 Development • • LApt. Complex 5 Unit Senior Construction Year Annual Total Construction Year 1 2020 0 2020 1 2 2021 1,830,000 1,830,000 2021 2 3 2022 0 2022 3 4 2023 0 2023 4 5 2024 0 2024 5 6 2025 0 2025 6 7 2026 0 2026 7 8 2027 0 2027 8 9 2028 0 2028 9 10 2029 0 2029 10 11 2030 0 2030 11 12 2031 0 2031 12 13 2032 0 2032 13 14 2033 0 2033 14 15 2034 0 2034 15 16 2035 0 2035 16 17 2036 0 2036 17 18 2037 0 2037 18 19 2038 0 2038 19 20 2039 0 2039 20 21 2040 0 2040 21 22 2041 0 2041 22 23 2042 0 2042 23 24 2043 0 2043 24 25 2044 0 2044 25 26 2045 0 2045 26 27 2046 0 2046 27 Totals 1,830,000 1,830,000 Notes: 'Estimated valuation taken from Developer's TIF Application dated 10-23-2019.Developer anticipates Project completion and occupancy in summer of 2021. Table 1 —Development Assumptions TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 19 December 17, 2019 OshkoshCity of Tax Increment District# 39 Tax Increment Projection Worksheet Type of District Rehabilitation Base Value 0 District Creation Date January 14,2020 Appreciation Factor Valuation Date Jan 1, 1 2020 Base Tax Rate $25.11 Max Life(Years) 27 Rate Adjustment Factor Expenditure Period/Termination 22 1/14/2042 Revenue Periods/Final Year 27 2048 Extension Eligibility/Years Yes 3 Eligible Recipient District Yes Construction Inflation Total Year Value Added Valuation Year Increment Increment Revenue Year Tax Rate' Tax Increment 1 2020 0 2021 0 0 2022 $25.11 0 2 2021 1,830,000 2022 0 1,830,000 2023 $25.11 45,943 3 2022 0 2023 0 1,830,000 2024 $25.11 45,943 4 2023 0 2024 0 1,830,000 2025 $25.11 45,943 5 2024 0 2025 0 1,830,000 2026 $25.11 45,943 6 2025 0 2026 0 1,830,000 2027 $25.11 45,943 7 2026 0 2027 0 1,830,000 2028 $25.11 45,943 8 2027 0 2028 0 1,830,000 2029 $25.11 45,943 9 2028 0 2029 0 1,830,000 2030 $25.11 45,943 10 2029 0 2030 0 1,830,000 2031 $25.11 45,943 11 2030 0 2031 0 1,830,000 2032 $25.11 45,943 12 2031 0 2032 0 1,830,000 2033 $25.11 45,943 13 2032 0 2033 0 1,830,000 2034 $25.11 45,943 14 2033 0 2034 0 1,830,000 2035 $25.11 45,943 15 2034 0 2035 0 1,830,000 2036 $25.11 45,943 16 2035 0 2036 0 1,830,000 2037 $25.11 45,943 17 2036 0 2037 0 1,830,000 2038 $25.11 45,943 18 2037 0 2038 0 1,830,000 2039 $25.11 45,943 19 2038 0 2039 0 1,830,000 2040 $25.11 45,943 20 2039 0 2040 0 1,830,000 2041 $25.11 45,943 21 2040 0 2041 0 1,830,000 2042 $25.11 45,943 22 2041 0 2042 0 1,830,000 2043 $25.11 45,943 23 2042 0 2043 0 1,830,000 2044 $25.11 45,943 24 2043 0 2044 0 1,830,000 2045 $25.11 45,943 25 2044 0 2045 0 1,830,000 2046 $25.11 45,943 26 2045 0 2046 0 1,830,000 2047 $25.11 45,943 27 2046 0 2047 0 1,830,000 2048 $25.11 45,943 T.ata'ks.', 1,830;000 0 Future Value of Increment 1,194,530 Notes: Tax rate shown is actual rate for 2018/19 levy taken from DOR Form PC-202(Tax Increment Collection Worksheet). Table 2—Tax Increment Projection Worksheet TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 20 December 17, 2019 Financine and Implementation The City anticipates making total Project Cost expenditures of $582,500 including a $500,000 development incentive, and an estimated $82,500 in District administrative expense. The potential incentive amount is based on Developer's assistance request. To the extent development incentives are provided, the amounts, timing of and related conditions will be determined based on the City's review and confirmation of a demonstrated financing gap and may therefore vary from the assumptions used in the Plan for purposes of assessing economic feasibility. Development incentive payments will be paid from tax increments as they are collected on a"pay as you go" basis. Administrative expenses will be paid from tax increments collected, or from advances from other funds to the extent those costs exceed cash amounts available. The City will recover any amounts advanced to the District as cash flows permit. Based on the cash flow exhibit (Table 3), the City anticipates that the District will generate enough tax increment to pay all Project Costs by the year 2035, reflecting 14 years of tax increment collections, and 16 years of total elapsed time. If necessary, the District would be permitted to remain open for up to 29 years, allowing for up to a total of 27 years of tax increment collection. The projected closure is based on the various assumptions noted in this Plan and will vary dependent on actual Project Costs incurred and the actual amount of tax increments collected. TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 21 December 17, 2019 Cash Flow OshkoshCity of Tax Increment District#39 Cash Flow Projection Projected Revenues.�,"� Projected Expenditures Balances Development Year Advance to Incentives Repay 70ultstan7dinYear i Tax Cover Admin. Total (MRO) @ Advance @ Admin. Total Increments Expense Revenues 90°/u 2%Interest Expense Expenditures Annual Cumulative 2020 15,000 15,000 15,000 15,000 0 0 2021 4,500 4,600 4,500 4,500 0 0 0 2021 2022 0 4,500 4,600 4,500 4,500 0 0 500,000 2022 2023 45,943 45,943 41,349 4,500 45,849 94 94 458,651 2023 2024 45,943 45,943 41,349 4,500 45,849 94 189 417,302 2024 2025 45,943 45,943 41,349 4,500 45,849 94 283 375,953 2025 2026 45,943 46,943 41,349 4,500 45,849 94 377 334,603 2026 2027 45,943 46,943 41,349 4,500 45,849 94 472 293,254 2027 2028 45,943 46,943 41,349 4,500 45,849 94 566 251,905 2028 2029 45,943 45,943 41,349 4,500 45,849 94 660 210,556 2029 2030 45,943 45,943 41,349 4,500 45,849 94 755 169,207 2030 2031 45,943 45,943 41,349 4,500 45,849 94 849 127,858 2031 2032 45,943 46,943 41,349 4,500 45,849 94 943 86,509 2032 2033 45,943 46,943 41,349 4,500 46,849 94 1,038 45,160 2033 2034 45,943 46,943 41,349 1 4,500 45,849 1 94 1,132 1 3,810 1 2034 2035 45,943 46,943 3,810 31,410 4,500 39,720 6,223 7 356 0 2035 2036 45,943 46,943 0 45,943 53,299 0 2036 2037 45,943 46,943 0 45,943 99,243 0 2037 2038 45,943 46,943 0 45,943 145,186 0 2038 2039 45,943 46,943 0 45,943 191,130 0 2039 2040 45,943 46,943 0 45,943 237,073 0 2040 2041 45,943 46,943 0 45,943 283,017 0 2041 2042 45,943 46,943 0 45,943 328,960 0 2042 2043 45,943 46,943 0 45,943 374,903 0 2043 2044 45,943 46,943 0 45,943 420,847 0 2044 2045 45,943 46,943 0 45,943 466,790 0 2045 2046 45,943 46,943 0 45,943 512,734 0 2046 2047 45,943 46,943 0 45,943 558,677 0 2047 2048 45,943 45,943 0 0 45,943 604,620 (0) 2048 Total 1194530 24,000 1,218,530 600,000 31410 82,500 613910 Total Notes: 'Incentive shown reflects requested amount from Developer's TIF Application dated 10-23-2019,and is identified for purposes of establishing economic feasibility only. The City has not agreed to final terms or conditions with Developer. FF Pro'ected TID Closure Table 3 TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 22 December 17, 2019 SECTION 11 : Annexed Property A tax incremental district cannot include annexed territory unless at least three years have elapsed since the annexation, or certain other requirements are met. None of the property within the proposed District boundary was annexed during the past three years. SECTION 12: Estimate of Property to be Devoted to Retail Business Pursuant to Wis. Stat. § 66.1105(5)(b),the City estimates that none of the territory within the District will be devoted to retail business at the end of the District's maximum expenditure period. SECTION 13: Proposed Zoning Ordinance Changes The territory to be included in the District is presently zoned I,Institutional District and will be rezoned to I—PD,Institutional District with a Planned Development Overlay to allow for construction of the Project. SECTION 14: Proposed Changes in Master Plan, Map, Building Codes and City of Oshkosh Ordinances The proposed Plan is in general conformance with the City's Comprehensive Plan identifying the area as appropriate for a Community Facility. The Institutional District with a Planned Development Overly is consistent with the Comprehensive Plan. Development within the District will be required to conform to State Building Codes and will be subject to the City's permitting and inspection procedures. The proposed Plan conforms to all relevant State and local ordinances, plans, and codes. No changes to the existing regulations are proposed or needed. SECTION 15: Relocation Implementation of this Plan will not require relocation of individuals or business operations. Should implementation of this Plan require relocation of individuals or business operations, relocations will be handled in compliance with Wis. Stat. Chapter 32 and Wis.Admin. Code ADM 92. TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 23 December 17, 2019 SECTION 16: Orderly Development of the City of Oshkosh Creation of the District and the implementation of the projects in its Plan will promote the orderly development of the City through the provision of appropriate financial incentives that will result in rehabilitation and conservation of property, and creation of affordable senior housing. Through use of tax increment financing, the City can attract new investment that results in increased tax base. Development will occur in an orderly fashion in accordance with approved plans so that the Project will be compatible with adjacent land uses. Redevelopment of the existing structure within the District will add to the tax base and will generate positive secondary impacts such as employment and commercial opportunities related to the construction and operation of the Project. SECTION 17: List of Estimated Non-Project Costs Non-project costs are public works projects which only partly benefit the District. Costs incurred that do not benefit the District may not be paid with tax increments. Examples of non-project costs are: • A public improvement made within the District that also benefits property outside the District. That portion of the total Project Costs allocable to properties outside of the District would be a non-project cost. • A public improvement made outside the District that only partially benefits property within the District. That portion of the total Project Costs allocable to properties outside of the District would be a non-project cost. • Projects undertaken within the District as part of the implementation of this Project Plan,the costs of which are paid fully or in part by impact fees, grants, special assessments, or revenues other than tax increments. At present,the City has not identified any non-project costs associated with implementation of the Plan. If the District is unable to fully fund all Project Costs required to implement the Plan, those costs will become non-project costs to the extent they are funded from other sources. If, in the course of implementation of the Plan: 1) improvements are made within the District that benefit property outside the District; or 2) improvements are made outside the District that will only partially benefit the District; the City will apportion those costs based on a reasonable allocation of the benefit. The costs related to benefit received by properties outside the District are non-project costs. TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 24 December 17, 2019 SECTION 18: Opinion of Attorney for the City of Oshkosh Advising Whether the Plan is Complete and Complies with Wisconsin Statutes 66. 1105 1Mtla, ti 5 6 tLmh Avw we P{]d—IMC CSN"WiRlap"' 54®3,11M City of Oshkosh December 5,2D19 EV-HKUrH H.Allen Davi$ Director of Cornmunity Development City of Cl5hk0Sb 211i Mu rch Avenue OshRos%WI 54903-1130 DeAr Mr.Davit.; I reviewed the project plain prepared for ffie City of Ck- v h by Wen,Inc.for Tax tncremeat Di3U ct 939 Cabriru Shoal Redevelopment for form and to determine wlurdiur it Contains ell required elements pursuant to Section 66.11i16(4)(f)of the Wiwxwi;in State. The plan in{:hides a statertknt 1Lgting the kind, numb, and location of proposed public Ir mpftwementa within and uutside the District. It includes an ecommic feasibility study,a detailed list of estimated project casts,and a description of the rntthuci of financing 411 eq maied project casts and the time why thu cysts are to be incurred. 'llie plan indicates no non-prajeet CMLS are anticipated to be incurred,but does define such Costs. The plan contain maps of exi.9ting uses and conditions of real prcperty,as well as;prapoged improvements and ruses. Thi plan identifies that there will be a diange in zoning col the real property in the district but that there are no purposed char In the City's miter plant,map err ether municipal codes requimd or proposed as part of the district. The plan includes a statement indicating that there is no anticipated relocation of any pefsom to be dlspladed, but that if relocation would become required it will be curxiuctud in acairdance with Ch--K W15, Mats, and ADMIN 42. ThL plan includes a description of hour the district will promote the orderly development,within the City,which.is c+xsistent with the City's Cr)mprehensive Plan:(Ma.-ite.r Flail),bu[Id itrg oodes,and othee tvity ordinances in relation to project elements, Upon adnptiem rrf the prnjert plan bjr the Flan Commis;imi and their srabmississn to the City C.veal, all requirernent5 of Section 66.11&9(4)(0,WiworsinStatutes,willbe complete and it is,therefore,my opinion that the project plan attached hereto is complete and Complies with M'3-Rat.§66.11105. 5incerely, "111711011HH City Atton y TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 25 December 17, 2019 Exhibit A: Calculation of the Share of Projected Tax Increments Estimated to be Paid by the Owners of Property in the Overlying Taxing Jurisdictions PortionEstimated Owners Overlaying District DOR Form PC-202 2018ljllll Jill/19111111 Percentage Winnebago County 749,693 20.22% City of Oshkosh 1,482,441 39.98% Oshkosh Area School District 1,320,217 35.60% Fox Valley Techncial College 156,024 4.21% Total 3,708,374 Fox Valley Winnebago Oshkosh Area Techncial Revenue Year County City of Oshkosh School District College Total Revenue Year 2022 0 0 0 0 0 2022 2023 9,288 18,366 16,356 1,933 45,943 2023 2024 9,288 18,366 16,356 1,933 45,943 2024 2025 9,288 18,366 16,356 1,933 45,943 2025 2026 9,288 18,366 16,356 1,933 45,943 2026 2027 9,288 18,366 16,356 1,933 45,943 2027 2028 9,288 18,366 16,356 1,933 45,943 2028 2029 9,288 18,366 16,356 1,933 45,943 2029 2030 9,288 18,366 16,356 1,933 45,943 2030 2031 9,288 18,366 16,356 1,933 45,943 2031 2032 9,288 18,366 16,356 1,933 45,943 2032 2033 9,288 18,366 16,356 1,933 45,943 2033 2034 9,288 18,366 16,356 1,933 45,943 2034 2035 9,288 18,366 16,356 1,933 45,943 2035 2036 9,288 18,366 16,356 1,933 45,943 2036 2037 9,288 18,366 16,356 1,933 45,943 2037 2038 9,288 18,366 16,356 1,933 45,943 2038 2039 9,288 18,366 16,356 1,933 45,943 2039 2040 9,288 18,366 16,356 1,933 45,943 2040 2041 9,288 18,366 16,356 1,933 45,943 2041 2042 9,288 18,366 16,356 1,933 45,943 2042 2043 9,288 18,366 16,356 1,933 45,943 2043 2044 9,288 18,366 16,356 1,933 45,943 2044 2045 9,288 18,366 16,356 1,933 45,943 2045 2046 9,288 18,366 16,356 1,933 45,943 2046 2047 9,288 18,366 16,356 1,933 45,943 2047 2048 9,288 18,366 16,356 1,933 45,943 2048 Total 241,489 477,519 425,264 50,258 1,194,530 Notes: The projection shown above is provided to meet the requirements of Wis. Stat. § 66.1105(4)(i)4. TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 26 December 17, 2019 October23, 2019 NORTHPOINTE DEVELOPMENT CORPORA110N Mr Mark Rohloff City Manager City of Oshkosh 215 Church Avenue Oshkosh WI, 54901 Dear Mr. Rohloff, Thank you very much for the assistance you and your staff have given us in considering the potential redevelopment of the former St Francis Cabrini School into a 35 unit low-income senior apartment complex. As we have previously discussed, we are proposing to complete this project with the assistance of Low Income Housing Tax Credits (LIHTC), Historic Tax Credits, CDBG funds, and Tax Increment Financing in the form of a pay-go note. Our plan is to submit our application for the project to Wisconsin Housing and Economic Development Authority (WHEDA) by early January of next year. As part of this application we must provide documentation of all assistance we will receive for the project as well as outline the financial viability. Historically this site, which at the moment is a combined site with St Mary's Catholic Church, has been used as an elementary school for the catholic school system. However this is now the 3rd school year in which the site is not being used. As a low-income project, the future tenants of this project will need to meet income qualification standards as set by HUD.The largest income allowed will be at 80%of the community median income (CMI). However we anticipate tenants as low as 40%of the CMI. Moreover, rental rates will be set by the HUD affordability standards each year. As a senior facility,tenants will also need to be aged 55 or above. Our intent is to submit our WHEDA application by early January of next year and would anticipate being notified of our award of LIHTC credits by April of 2020. Upon the award of credits, we would finalize construction plans and complete the syndication process and start construction by October with the hope of completing construction and obtaining occupancy the following summer of 2021. As you are aware,these tax credit projects pose a unique ownership and financing structure to make them viable. We, as Northpointe Development, will serve as the developer of this project. Upon award of the tax credits, we will seek out a tax credit investor whom we will sell majority ownership interest (99.99%) in the project for 15 to 17 years. During this period, as the owner, the equity investor will earn and use the tax credits over time as well as take the profit or loss from the operation of the project. While we are applying for the TIF,the proceeds will be directed towards this equity investor during their ownership period. Our analysis of profitability then was conducted in regards to the equity investor. From our experience, it is common that projects like this, especially in this case where we are proposing a 4%deal, that TIF financing is absolutely needed to make the project work. It is common for these equity investors to require a 4 to 5.5% return before they would consider a project. Invista Analytics, our investment analyst, has reported to us that if we request$500,000 of TIF assistance, that the equity Page 27 investor is projected to realize a 4.04% 15 year internal rate of return. Without TIF the rate falls to 1.41%. The overall budget for this project is approximately$7.35 million.The tax credits alone we anticipate being able to raise $5.16 million in funding. We anticipate using primary financing through WHEDA in the amount of$1.99 million on a 35 year term at a 5.25% interest rate. And city staff has suggested the possibility of utilizing$200 K in CDBG funds for this project to complete our capital stack. As a historic preservation project, the community will benefit for the preservation of this historic building in a timely fashion so as to prevent what might inevitably become blight.Moreover the community will also benefit from the production of badly needed quality affordable housing with the guarantee of continuing to provide low-income units. As a property owned by the Catholic diocese the property has a present assessed value of zero dollars. We anticipate a completed project value of$1.83 million. Again, providing low-income housing is becoming harder and harder as construction costs continue to rise. At the most recent WHEDA conference, speakers repeatedly talked about how these projects cannot come to fruition without substantial local support which most often comes in the form of Tax Increment Financing. Moreover we know that equity investors is these settings typically require a minimum of a 4% return as well as getting Community Reinvestment Act(CRA) credit in investing in low- income housing. With our requested TIF assistance that project just meets this threshold. Without TIF assistance the anticipated return is too low such that WHEDA is not likely to award the credits and thus the project will not more forward. Simply put, this project cannot proceed without TIF assistance. Again we thank you and your staff for all the assistance provided on this project as well as previous projects throughout the years. We are excited to move forward with this project and appreciate the support and enthusiasm the city has provided and hope that together we can bring more affordable housing to Oshkosh. Sincerely, Cal Schultz &Andy Dumke Northpointe Development Page 28 • Tax Incremental Financing PolicyApplicationand Please complete and submit the following information to the City of Oshkosh for a more detailed review of the feasibility of your request for Tax Incremental Financing (TIF) assistance.The application is comprised of five parts: 1. Applicant Information 2. Project/Property Information 3. Project Narrative 4. Project Budget/Financial Information 5. Buyer Certification and Acknowledgement. Where there is not enough space for your response or additional information is requested, please use an attachment. Use attachments only when necessary and to provide clarifying or additional information. The Department of Community Development (DCD) reviews all applications for TIF assistance. Failure to provide all required information in a complete and accurate manner could delay processing of your application and DCD reserves the right to reject or halt processing the application for incomplete submittals. For further information please refer to the"City of Oshkosh Tax Incremental Financing Policy"document or call the Economic DeveloiDment Division at 920.235.5055 Applicant Information: Legal Name: Northpointe Development Corporation Mailing Address: 420 S Koeller St, Suite 230, Oshkosh WI Primary Contact #: 920.303.9404 Cell #: E-mail: andy@alinacedevelopment.biz FAX#: Attorney: Legal Entity: Individual(s) Joint Tenants Tenants in Common X Corporation LLC Partnership Other If not a Wisconsin corporation/partnership/LLC, state where organized: An equity investor will be sought will maintain 99.99%ownership Will a new entity be created for ownership? Yes X No through first 15-17 years. Principals of existing or proposed corporat ion/partnership/LLC and extent of ownership interest. Name: Address: Title: Interest: Andy Dumke 230 Ohio St Suite 200 Partner 50%of Development Co Cal Schultz 230 Ohio St Suite 200 Partner 50%of Development Co Unknown Investor will own 99.99%of the project for first 15-17 years of the project. Is any owner, member, stockholder, partner, officer or director of any previously identified entities, or any member of the immediate family of any such person, an employee of the City of Oshkosh? Yes No x If yes, give the name and relationship of the employee: Have any of the applicants (including the principals of the corporation/partnership/LLC) ever been charged or convicted of a misdemeanor or felony? Yes No x If yes, please furnish details: Page 29 • Tax Incremental Financing PolicyApplicationand W2=11flZral Overall Project Summary and Objectives: We seek to turn the vacant St Francis Cabrini School into approximately 35 low-income senior apartment units.The site will provide surface parking along with 26 single-car garage units. Current and Proposed Uses: The matt rPCPnt i ise was as an elementary school far the catholic school system.The pr�nerty has heen vacant far the east 7 5 years.The proposed use is a 35 unit low-income senior apartment facility. Description of End Users: Fnd users will he 55 years and alder and need to meet law-income aualification standards of at most AO%of the community median income. Property Summary: Describe any zoning changes that will be needed: Application has been submitted to split the parcel through plan Parcel/Land Area: SF commission. Building Area: SF # of Dwelling Units: # of Stories: # of Parking Spaces: Identify any other approvals, permits or licenses (i.e. Liquor License, Health Department, etc): Describe briefly what the project will do for the property and neighborhood: This property has been sitting vacant for the past 2.5 years.This project will stabilize the property and unsure the building does not come under further disrepair.Moreover,the renovation will be conducted according to the secretary of the interior's standards for historic preservation. Page 30 • Tax Incremental Financing PolicyApplicationand Project Timetable Date Final Plan/Specification Preparation: Final Preliminary plans.ion 2020 Bidding and Contracting Oct 2020 Firm Financing Approval: LIHTC awarded April 2020,syndication of credits in Oct 2020 Construction/Rehabilitation: Oct 2020-June 2021 Landscaping/Site Work: Oct 2020-June 2021 Occupancy/Lease Up: July 2021 Development Team Developer: Northpointe Development Architect: RH Design Build Surveyor: Contractor: RH Design Build Other Members: Wesenberg Architects(Historic Consulting) Describe Team expertise and experience in developing similar projects: Over the past decade Northpoint development has been responsible for the development of over 1,000 apartment units across the state including historic renovation,low-income,and other market rate apartments. Other current Team projects in development: Northpoint is presently working on 2 LIHTC projects including the Post-Crescent building in Appleton and the City Center Apartments in Brillion,WI. Financial ability of the applicant to complete the project: With historic tax credits and low-income tax credits,the developers are confident that the project will have sufficient financing with the City's TIF participation to complete the project. History of use of other city or government financial incentives: The developers have had substantial experience using government incentives to complete development projects. Professional Studies Market Studies: Applications for commercial and residential projects may at the option of the city be required to include a comprehensive market study. The market study should identify target markets, analysis of competition, demographics, market rents, letters of intent/interest from prospective tenants, or for housing developments, sale prices or rental rates of comparable properties. Appraisal: All projects that involve the transfer of land may at the option of the city include a recent appraisal. Projects that include land as a form of equity or collateral must also submit a recent appraisal. The appraisal must value the property "as is", and the impact on value must be considered for such items as demolition, environmental remediation, relocation of utilities, lease buy-outs, and other work necessary to make the site developable. The property must be valued assuming that the highest and best use is the proposed use. Page 31 • TaT Applicationx Incremental Financing Polic and . - . . - . . Sources and Uses of Funds Identify the sources of funds used to finance the project. Typical sources include equity, lender financing, mezzanine financing, government financing, other anticipated types of public assistance, and any other types or methods of financing. Uses of Funds Amount ($) $ per SF of Building Area Land Acquisition: Demolition: Environmental Remediation: Site Clearance and Preparation: see Attached Detailed Project Budget Soft Costs/ Fees: Soft Cost Contingency: Hard Construction Costs: Total Project Costs: Sources of Funds % of total project costs Equity LIHTC Equity: $ 1,994,769 27.1 % HTC Equity: $ 3,171,051 431 % Total Equity: $ % Loans Rate Term Construction Financing: $ % mos. % Permanent Financing: $ 1,991,000 5.25 % 35 yrs. 27.1 % TIF Assistance $ 500,000 6.8 % Other: ( CDBG ) $ 200,000 2.7 % Total Sources of Funds $ 7,356,820 100% Financing Source Amount Terms: Years/Interest Contact Information Equity: Total Tax Credit Equity=$5,165,820 Loans 1: 1,991,000 35 years @ 5.25% through WHEDA 2: 3: 4: Page 32 • Tax Incremental Financing • PolicyApplicationand Summary Letter Provide a summary of the project in the form of a letter addressed to the City Manager. The letter should not exceed two (2) pages in length and should include only the following essential information about the project: • Description of site or building • Amount of TIF assistance • Current and proposed uses requested • Description of end users • Summary of increment • Project start and end dates projections • Profitability • Name of developer and owner • Description of public benefits, • Total development costs including job creation. • Statement regarding why TIF is • Overview of private-sector essential and why the"but for' financing provision will be met. Note: In the "but for"discussion you must clearly describe why TIF is needed to help this project and why the project will not/cannot proceed without such support. Failure to clearly provide the "but for" explanation will delay action on your application. Project Narrative Provide an in-depth overview of the project in narrative format. The narrative must include a description of the following aspects of the project: • Current condition of the site and historical overview that includes the size and condition of any existing structures, environmental conditions, and past uses of the site. • Proposed use(s) of project (e.g. industrial, commercial, retail, office, residential for sale or for rental, senior housing, etc.) • Construction information about the project including: size of any existing structure to be demolished or rehabbed; size of any new construction: types of construction materials (structural and finish); delineation of square foot allocation by use; total number and individual square footage of residential units: type of residential units (e.g. for-sale, rental, condominium, single-family, etc.); number of affordable residential units; number and type of parking spaces; and construction phasing. • If in an existing TID or redevelopment area, confirm that this project is consistent with the goals and objectives in the Project or Redevelopment Plan. • A summary of the proposed "green" features to be included in the project. All projects that receive TIF assistance are encouraged to include environmentally friendly features. Page 33 1�1- 11 Tax Incremental Financinglk pplication Policyand A Filing Requirements You must provide all of the following items with your signed application: 1. Fee: An application fee of 1%of the requested TIF assistance or$10,000,whicheveris greater.This fee is to cover City costs associated with evaluating the TIF application and does not cover the use of outside consultants, which if required will be paid for by the applicant. Make your check payable to the City of Oshkosh. 2. Site Maps: Provide a map that shows the location of the site. Also provide a map that focuses on the project and its immediate surroundings. Both maps should be no larger than 11 xl 7 inches. Larger maps will be required for projects presented to the Plan Commission, Redevelopment Authority, or Common Council. 3. Project Renderings: Provide preliminary architectural drawings, plans and renderings for the project. These drawings should be no larger than 11 xl 7 inches. Larger maps will be required for projects presented to the Plan Commission, Redevelopment Authority, or Common Council. Notes • The City retains an administrative fee of 5%of the annual tax increment revenue. • If the project requires planning and zoning approvals,you must make these applications concurrent with this request. Agreement I,by signing this application, agree to the following: 1. I have read and will abide by all the requirements of the City for Tax Incremental Financing. 2. The information submitted is correct. 3. 1 agree to pay all costs involved in developing Project Plan or Development Agreement. These costs may include, but not be limited to, bond counsel,outside legal assistance,outside financial assistance, planning, engineering, etc. and all costs involved in the issuance of the bonds or loans to finance the project. 4. 1 understand that the City reserves the right to deny final approval, regardless of preliminary approval or the degree of construction completed before application for final approval. 5. The undersigned authorizes the City of Oshkosh to check credit references and verify financial and other information. 6. The undersigned also agrees to provide any additional information as may be requested by the City after filing of this application. Applicant Name Date 101;01� Page 34 Detailed,Project Budget Amount Notes Acquisition&Site Pre Land Acquisition 1 Demolition Utilities/relocation Subtotal $1 Soft Costs Fees Architect/Engineer 135,000 RH Design Build Developer Fee 527,860 Interim Construction Costs 115,838 Financing Fees 65,000 BMO&WBD Fees Syndication Costs 2,000 Operating Reserves 177,500 Soft Cost Contingency 75,500 Subtotal $1,098,698 Hard Costs Construction/Rehab 5,960,115 RH Design Build Construction Contingency 298,006 Subtotal $6,258,121 Total Project Costs $7 356 820 Source of Funding Permanent Financing 1,991,000 WHEDA @ 5.25%/35 year LIHTC Equity 1,994,769 CDBG Monies 200,000 HTC Equity 3,171,051 Total Source of Funds 7,356,820 Page 35 .:Cabr80 School-Profit and to.With TIF Yearl Year Year Year4 Years Year6 Year Year Yem,9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 ].cam Residential Rent(0.52%+) $285,024 $286,506 $287,996 $289,494 $290,999 $292,512 $294,033 $295,562 $297,099 $298,644 $300197 $301,759 $303,327 $304,904 $306,490 Garage Rent $12,460 $12,605 $12,731 $12,858 $12,987 $13,117 $13,248 $13,380 $13,514 $13,649 $13,766 $13,924 $14,063 $14,203 $14,345 Gross Potential income $297.504 $299,111 $300,727 $302,352 $303,986 $305,629 $307,281 $308,942 $310,613 $312,293 $313.983 $315,681 $317,390 $319,108 $320,835 Vacan $20,825 $20,938 $21,051 $21,165 $21,279 $21,394 $21,510 $21,626 $21,743 $21,861 $21,979 $22,098 $22,217 $22,338 $22,458 EffectNe Gross Income(EGI) $276,679 $278,173 $279,676 $281,187 $282,707 $284,235 $285,771 $287,316 $288,870 $290,433 $292,004 $293,584 $295,173 $296,770 $298,377 Expenses Maintenance&Repairs $39,000 $39,390 $39,784 $40,182 $40,594 $40,989 $41,399 $41,813 $42,231 $42,654 $43,OW $43,511 $43,946 $44,396 $44,829 Real Estate Taxes $0 $0 $46,250 $46,713 $47,180 $47,651 $48,128 $48,609 $49,095 $49,586 W,082 $50,583 $51,089 $51,600 $52,116 Insurance $12,700 $12,827 $12,955 $13,085 $13,216 $13,348 $13,481 $13,616 $13,752 $13,890 $14,029 $14,169 $14,311 $14,454 $14,59 Management Fee $52,604 $53,130 $53,661 $54,198 $54,740 $55,287 $55,840 $56,399 $56,963 $57,532 $58,108 $58,689 $59,276 $59,868 $60,467 State Compliance $1,575 $1,591 $1,607 $1,623 $1,639 $1,655 $1,672 $1,689 $1,705 $1,723 $1,740 $1,757 $1,775 $1,792 $1,810 Utilities&Trash $22,500 $22,725 $22,952 $23,182 $23,414 $23,648 $23,884 $24,123 $24,364 $24,608 $24,854 $25,103 $25,354 $25,607 $25,863 Total Operating Ea enses $128,379 $129,663 $177,209 $178,982 $180,771 $182,579 $184,405 $186,249 $188,111 $189,992 $191,892 $193,811 $195,749 $197,707 $199,684 Net Operating Income(NOI) $148,300 $148,510 $102,467 $102,206 $101,935 $101,656 $101,366 $101,068 $100,759 $100,440 $100,111 $99,772 $99.423 $99,063 $98,693 Capital Reserves $8,750 $8,838 $8,926 $9,015 $9,105 $9,196 $9,288 $9,381 $9,475 $9,570 $9,665 $9,762 $9,860 $9,958 $10,058 Debt Service(35yr@ 5.25%) $124,416 $124,416 $124,416 $124,416 $124,416 $124,416 $124,416 $124,416 $124,416 $124,416 $124,416 $174,416 $124,416 $124,416 $124,416 nF Recapture -$41,625 -$42,041 -$42,462 -$42,886 -$43,315 -$43,748 -$44,186 -$44,628 -$45,074 -$45,525 -$45,980 -$46,440 -$46,904 Net Cash Fl-(GAPP) $15,134 $15,257 $10,750 $10,816 $10,876 $10,930 $10,977 $11,019 $11.054 $11,082 $11,104 $11,119 $11,127 $11,129 $11,123 Page 36 Maximum Rental Income Potential Income Income No Units Rent/Mo Subtotal 40%CM 1 Bed/1 Bath 8 535 4,280 50% CM 1 Bed/1 Bath 6 682 4,092 60% CM 1 Bed/1 Bath 6 725 4,350 80%CM 1 Bed/1 Bath 4 695 2,780 80%CMI 2 Bed/1 Bath 11 750 8,250 Subtotal 35 23,752 Monthly Total $23,752.00 Annual Total $285,024.00 Page 37 Return on Investment Metrics With TIF Without TIF Net Cash Flow HTC LIHTC Total Net Cash Flow HTC LIHTC Total Initial Cash Outlay -5,165,820 -5,165,820 -5,165,820 -5,165,820 Year 1 15,134 712,596 280,164 1,007,894 15,134 712,596 280,164 1,007,894 Year 2 15,257 712,596 280,164 1,008,017 15,257 712,596 280,164 1,008,017 Year 3 10,750 712,596 280,164 1,003,510 -30,875 712,596 280,164 961,885 Year 10,816 712,596 280,164 1,003,576 -31,226 712,596 280,164 961,534 Year 5 10,876 712,596 280,164 1,003,636 -31,586 712,596 280,164 961,174 Year 6 10,930 280,164 291,094 -31,957 280,164 248,208 Year 7 10,977 140,082 151,059 -32,338 140,082 107,744 Year 8 11,019 140,082 151,101 -32,730 140,082 107,353 Year 9 11,054 140,082 151,136 -33,132 140,082 106,950 Year 10 11,082 140,082 151,164 -33,546 140,082 106,537 Year 11 11,104 11,104 -33,970 -33,970 Year 12 11,119 11,119 -34,406 -34,406 Year 13 11,127 11,127 -34,853 -34,853 Year 14 11,129 11,129 -35,311 -35,311 Year 15 11,123 11,123 -35,781 -35,781 15yr IRR=> 4.04% 15yr IRR=> 1.41% Page 38 PLAN COMMISSION MINUTES December 17,2019 PRESENT: Mamadou Coulibaly, Lynnsey Erickson, Thomas Fojtik, Michael Ford,John Hinz, John Kiefer, Lori Palmeri, Thomas Perry, Kathleen Propp EXCUSED: Derek Groth,Justin Mitchell STAFF: Mark Lyons, Planning Services Manager;Justin Gierach, Engineering Division Manager/City Engineer;Brian Slusarek, Planner;Mina Kuss, Recording Secretary Chairperson Fojtik called the meeting to order at 4:00 pm. Roll call was taken and a quorum declared present. The minutes of December 3, 2019 were approved as presented. (Hinz/Kiefer) IV. PUBLIC HEARING: PROPOSED CREATION OF TAX INCREMENT FINANCING DISTRICT NO. 39 CABRINI SCHOOL REDEVELOPMENT DESIGNATION OF BOUNDARIES AND APPROVAL OF PROJECT PLAN Site Inspections: Report: Mr. Ford, Mr. Hinz, Mr. Kiefer, Ms. Palmeri and Ms. Propp reported visiting the site. Staff report accepted as part of the record. Tax Incremental District No. 39 (the "TID" or "District")is a proposed 1.28 acre in need of rehabilitation or conservation district comprising of the former St. Francis Cabrini School. The proposed district is comprised of one parcel. Mr. Lyons presented the item and reviewed the site and surrounding area. The City is projecting that new land and improvements value of approximately$1.83 million will result from redevelopment activity within the District. The applicant is proposing an adaptive reuse of the former school building to senior living apartments. Per the submitted narrative, 35 units are planned to be constructed within the former school. Finding appropriate uses for buildings of this type can be challenging as they outlive their original intended use. The District is being created as an area "in need of rehabilitation or conservation' within the meaning of Wis. Stat. 66.1337(2m)(a) based on a finding that over 50% of the area is need of rehabilitation. The proposed Plan is in general conformance with many of the City's Plans. He reviewed the Plan and explained most of the sections. He noted that this TID scored a 98 on the Conservation and Rehabilitation TID matrix which is the highest score to date. He said staff recommends approval of the Project Plan and Boundaries for TID #39 as proposed. Todd Taves (Senior Municipal Advisor, Ehlers) was present to answer any questions. Plan Commission Minutes December 17,2019 Page 39 Mr. Fojtik opened technical questions to staff. Ms. Palmeri asked if everyone was present at the Joint Review Board. Mr. Lyons replied everyone but the public member because the public member has to be appointed at the first Joint Review Board meeting. Mr. Ford read from page 2 of the Plan. He asked if Council would be notified if there were additional project expenditures Mr. Lyons replied correct and it would still require that the developer's agreement with Council be approved. Ms. Palmeri asked what extent the ADA accessibility will be as far as visiting or residing. She said there are different tiers. Mr. Lyons replied the applicant can answer that question. Mr. Fojtik opened up the public hearing. Andy Dumke (applicant), 2062 Menominee Drive, said they are putting in an elevator and all units will be accessible. He said about 15% of the units will have roll in showers and counter top heights that meets the needs of anyone that is living there with a wheelchair. Mr. Ford asked if the project would be viable without the TIF. Mr. Dumke replied it would not. He said it is affordable housing and the cost to rehab historical buildings is extremely expensive. He said with doing two of those, they are struggling. He commented with the way the scoring works for affordable housing, some financial participation by the municipality helps with the scoring. Mr. Ford asked if it was the same deal with the tax credits. Mr. Dumke replied affirmatively. There were no other public comments on this item. Mr. Fojtik closed the public hearing. Motion by Ford to approve the project plan and recommending the boundaries to the council and adopting the staff report as the findings. Seconded by Hinz. Mr. Fojtik asked if there was any discussion on the motion. Plan Commission Minutes December 17,2019 Page 40 Mr. Ford commented it is a great use of a building which no longer has its original use. Mr. Fojtik complimented staff on the presentations of each of the TIFs. He said it is helpful to understand and understand that they are all different. He stated he has a much better understanding of the process than he did before all thanks to staff. Mr. Hinz thanked staff for having the workshops because it makes the TID process easier and allows Plan Commission to ask questions ahead of time. He said the workshop was very productive. He said he hopes they keeps doing this because it is nothing but good for the community,especially being able to save buildings like this one. Mr. Kiefer thanked Mr. Dumke for keeping the building alive. He commented that he went to school there for eight years and it is good to see it remain viable and a part of the landscape. Ms. Erickson stated she appreciates having this opportunity for affordable senior apartments, which is a huge need the city has. Motion carried 9-0. There being no further business, the meeting adjourned at approximately 4:45 pm. (Hinz/Propp) Respectfully submitted, Mark Lyons Planning Services Manager Plan Commission Minutes December 17,2019 Page 41