HomeMy WebLinkAbout18. 20-158 APRIL 14, 2020 20-158 RESOLUTION
(CARRIED 7-0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE BUDGET AMENDMENT TO TID 16 100 BLOCK
REDEVELOPMENT 2020 OPERATING BUDGET; $250,000.00
INITIATED BY: COMMUNITY DEVELOPMENT
WHEREAS, the Common Council has adopted the 2020 Operating Budget, which
is on file in the Office of the City Clerk and available for public inspection; and
WHEREAS, TID 16 100 Block Redevelopment account requires an increase of
$250,000 in expenditures in order to allow for loans to businesses in TID 16, and within a
1/2 mile radius, as part of the Revolving Loan Fund RLF-TID 16 Emergency Response
Program; and
WHEREAS, an amendment to the 2020 Operating Budget is necessary for this
purpose.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the 2020 Operating Budget, on file in the City Clerk's Office, is hereby
amended to add the following:
Acct. No. 526-1040-xxx 100 Block Redevelopment increase by$250,000.00
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Oshkosh
TO: Honorable Mayor and Members of the Common Council
FROM: Allen Davis, Community Development Director
DATE: April 7, 2020
RE: Approve Budget Amendment to TID 16 100 Block Redevelopment 2020
Operating Budget ($250,000)
BACKGROUND
Recent events created by the COVID-19 pandemic has disrupted many small businesses in the
Central City. TID #16 was created in 2001 to redevelop the 100 Block of North Main Street.
TID #16 is in a good geographic location to extend a new Revolving Loan Fund (RLF) centered
on a '/2 mile radius around the 100 Block. TID #16 has a cash balance of about$740,000;
however, there are still outstanding debt payments that must be made, so the cash balance
available for a new RLF-TID 16 fund is about $250,000.
City funded the City's original Economic Development Revolving Loan Fund (RLF) with cash
proceeds from TIF Districts terminated with cash balances. Many small businesses today find
themselves in a situation they did not create, making them short on capital, and needing to
fund on-going rent and payroll costs, with little or no income. To help alleviate that issue, TID
16 can use its cash balance on a temporary emergency measure. In the case of TID #16, the
cash balance is proposed to be used earlier than planned for a RLF-TID 16 fund, prior to
termination.
ANALYSIS
The City's original Revolving Loan Fund was established to be a flexible, gap financing tool
for businesses producing high-income jobs, through projects that expand, attract or retain
those jobs. The RLF-TID 16 fund is attempting to fill a gap in the revenue to retain businesses
located in the central part of the City.
The target markets for the RLF-TID 16 include small businesses that are located exclusively
inside the central part of the City. State Law allows TID districts to spend within a 1/2 mile of
the TID boundary, with Joint Review Board approval. The Joint Review Board approved the
1/2 mile radius expenditures on April 1, 2020. A map of the 1/2 mile radius area is attached. The
small businesses located outside the central part of the City can also be served by the proposed
City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
RLF-COVID 19 fund. City Council action to appropriate the funds for RLF COVID-19 is also
on the April 14, 2020 Council agenda.
The proposed RLF-TID 16 program would be temporary and follow a modified version of the
RLF manual, administered by GOEDC and follow the same basic outline in the information
sheet that the RLF-COVID 19 Emergency Loan Fund will follow.
The City is also working to amend TID 14 and TID 19 Project Plans to donate additional funds
to TID 16 for the RLF-TID 16 fund. The Joint Review Board, Plan Commission and City
Council will be reviewing and acting on the proposed amendments in April, 2020.
FISCAL IMPACT
The $250,000 for the RLF-TID 16 is funded with current surplus TID 16 funds, and therefore
has no impact on the levy. In theory, all the loaned RLF-TID 16 funds are planned to be repaid
at 2% interest. That repayment would replenish the TID 16 fund and then upon termination,
the cash balance would be distributed to the taxing jurisdictions. However, there may be some
loans that are not repaid, and that would result in a smaller return to the TID 16 cash balance,
and a smaller cash balance to be distributed to the taxing jurisdictions
RECOMMENDATION
The City Council approves the proposed Budget Amendment to TID #16 100 Block
Redevelopment operating budget of+$250,000 for the RLF-TID 16 Emergency Loan Program.
Submitted, Approved:
Allen Davis Mark A. Rohloff
Community Development Director City Manager
City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
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The City of Oshkosh creates and maintains GIS maps and data for its own use. They may show the
approximate relative location of property, boundaries and other feature from a variety of sources. Printing Date:4/3/2020
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appropriate for legal, engineering, or surveying purposes. They are provided "AS-IS" without Prepared by:City of Oshkosh,WI
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