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HomeMy WebLinkAbout17. 20-77 FEBRUARY 25, 2020 20-77 RESOLUTION (CARRIED 6-0 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE HEALTHY NEIGHBORHOOD INITIATIVE FUNDING THROUGH TID #11 INITIATED BY: DEPARTMENT OF COMMUNITY DEVELOPMENT WHEREAS, on October 9, 2018 the City of Oshkosh amended and adopted a Comprehensive Plan to guide the city's growth and development; and WHEREAS, the Comprehensive Plan contained recommendations regarding improving the City's overall housing stock and implementing neighborhood improvement strategies in priority areas; and WHEREAS, the City of Oshkosh seeks to implement neighborhood and housing improvement programming through creation of a Healthy Neighborhood Initiative; and WHEREAS, implementation of a Healthy Neighborhood Initiative will require the allocation of various forms of revenue to fund specified program activities to improve the neighborhood housing stock; and WHEREAS, the City of Oshkosh created Tax Increment Financing District (TID) #11 on January 10, 1995 and has completed implementation of the Project Plan and has paid off the aggregate of all its project costs; and WHEREAS, State of Wisconsin Statutes require that a TID be terminated after all project costs have been paid off, except that under Wisconsin Statutes, Section 66.1105(6)(g), a TID may be extended for up to one (1) year to utilize the last year of tax increment to improve the city's housing stock. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that protection and improvement of the City's neighborhoods and housing stock is critical to maintaining a healthy and sustainable community. FEBRUARY 25, 2020 20-77 RESOLUTION CONT'D BE IT FURTHER RESOLVED that funding a Healthy Neighborhood Initiative that seeks to improve priority neighborhoods and housing benefits all residents by helping to maintain or increase property values in transitional and distressed neighborhoods. BE IT FURTHER RESOLVED that tax increment is available in TID #11 to fund a Healthy Neighborhood Initiative, and to fund project expenditures as permitted under Wisconsin Statutes, Section 66.1105(6)(g)3. BE IT FURTHER RESOLVED that the City of Oshkosh will extend the life of TID #11 for 12 months in order to utilize the final year's increment to fund the Healthy Neighborhood Initiative to improve the housing stock of the community. ,44,„ City. s Oshkosh TO: Honorable Mayor and Members of the Common Council FROM: Allen Davis, Community Development Director DATE: February 19, 2020 RE: Approve Healthy Neighborhood Initiative Funding through TID #11 BACKGROUND In an ongoing effort to stabilize and improve the housing stock and quality of life in city neighborhoods, staff is requesting that Council approve a one year extension of TID #11 (Court and Waugoo) to permit the final year of tax increment to be allocated to neighborhood revitalization programming under the City's Healthy Neighborhoods Initiative. The current estimated increment is $6,300. Per statutes, only the final year of tax increment can be used to improve the housing stock. No project plan amendments are required nor is the Plan Commission or Joint Review Board required to approve the action. ANALYSIS In order to achieve any type of sustainable neighborhood revitalization success, funds must be programmed and resources targeted to affect change in the City's transitional and distressed neighborhoods where conditions have been changing to impact long term property values and increasing demands for city service delivery. The long term goal of neighborhood revitalization programming is to make all the City's neighborhoods more livable and to protect homeowner investment and equity through targeted resource programming and regulatory approaches aimed at combating conditions that destabilize neighborhoods. The premise is to use both "carrots and sticks" to aid in neighborhood revitalization with TIF allowing the City to provide more "carrots" to aid in revitalization. The City's funding of neighborhood revitalization has traditionally been limited to its Community Development Block Grant for housing rehabilitation and blight removal and more recently CIP funds designated for public improvement activity. As resources continue to be cut at the federal and state levels, alternative funding resources need to be utilized to help offset these losses with TIF now being permitted as a limited resource. Oshkosh The majority of funds utilized under the healthy neighborhood initiative are intended to be concentrated into participating neighborhoods where the neighborhood and the city have jointly developed and approved a plan for revitalization. Core plan activities that will be funded using TIF funds include: • Property Acquisition-Blight Removal • Homeownership Development through a First Time Homebuyer Program • Rehabilitation-Owner Occupied Single Family • Rehabilitation-Rental Unit • Rehabilitation-Exterior Curb Appeal Projects • New Construction-Single Family Lot Development • Community Building and Engagement • Historic District and Design Standards Overlay Compliance • Code Compliance The core program activities are designed to not only improve the quality of the living environment for the individual property owner but also to improve the overall quality of life in the neighborhood with the overarching goal of creating "healthy" neighborhoods of choice within the City. The majority of programming activity to be funded with tax increment funding is designed to "revolve" back to the city through low or no interest loan payments or mortgage satisfactions that should create a more sustainable financial resource to fund ongoing neighborhood revitalization activities well into the future. TIF can act as an endowment to sustain future neighborhood revitalization similar to how the city uses the tool to promote economic development and redevelopment of blighted areas. FISCAL IMPACT Funding the Healthy Neighborhood Initiative does not have an impact on the provision of city services because no additional staff members are anticipated to administer the programming contemplated there under. Over the long term investment in the housing supply to add value and eliminate conditions that detrimentally impact property values should increase overall property tax values within the community. 3u� ai- City. Oshkosh RECOMMENDATION Staff recommends approval of the resolution to allocate the final year of TID #11 increment to the healthy neighborhoods initiative program. Respectfully Submitted, Approved, 1414 (4, Allen Davis Mark Rohloff Community Development Director City Manager