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HomeMy WebLinkAboutItem III - Staff ReportPLAN COMMISSION STAFF REPORT APRIL 21, 2020 ITEM III: PUBLIC HEARING: AMENDMENT NO.2 TO TAX INCREMENT DISTRICT #14 MERCY MEDICAL CENTER REDEVELOPMENT Prior to taking action on proposed amendment of Tax Increment District (TID) No. 14, the Plan Commission is to hold a public hearing and take comments concerning proposed amendment. The public hearing is required as part of the formal review process the City must follow in the amendment of any tax incremental financing district. GENERAL INFORMATION Applicant: City of Oshkosh Department of Community Development PROPOSAL Please see attached TID No. 14 amended Project Plan for more detailed information. The Department of Community Development requests approval of Amendment No. 2 to Tax Increment District #14 Mercy Medical Center Redevelopment. The TID was previously amended in 2002 for the purpose of eliminating and/or preventing blighting influence in an older residential neighborhood by assisting in the rehabilitation/redevelopment of a vacant medical center and improvements of the infrastructure in the district. The purpose of the amendment is to allow excess revenues to be transferred to Tax Incremental District No. 16, or known as the 100 Block Redevelopment area. Excess revenues transferred from the District to TID No. 16 will be used to provide loans to business impacted by the COVID-10 pandemic. Business qualifying for assistance will be located within lh mile of TID No. 16. The City plans to transfer $250,000 of the cash balance from TID No. 14 to TID No. 16. Additional transfers may be made to the extent that funds are available and needed to support the City's efforts to combat the economic and potential blighting impacts of the pandemic. ANALYSIS The proposed amendment is designed to provide additional resources to City for assisting business located in and with lh mile of the districts. As a result of the pandemic, a significant number of business have been directed to close or limit operations. Anticipated economic consequences include unemployment and loss of person and business income, deferral or non- payment of user -fees and taxes and potential permanent losses of business that will have a blighting impact within the District, Recipient District, surrounding areas and City at large. The City therefore concludes that approval of this Plan Amendment is consistent with the intent of the Tax Incremental Financing Law. Paqe 1 Revolving Loan Program — New project cost To aid in mitigating the economic consequences related to the COVID-19 pandemic, the City plans to provide loans to impacted business located in or within 1/z mile of the TID No 16. Any funds collected as repayment of the loans are not considered revenue to the District and will not be used to offset District Project Costs. Instead, these funds may be placed into a revolving fund and will be continued to be used for the purposes stated above. Greater Oshkosh Economic Development Corporation will administer the COVID-19 Emergency Response Loan program. Economic Feasibility The City plans to fund the Recipient District loan pool in a total amount of $1,000,000 from the following revenue sources. Source Amou nt Recipient District (TID No. 16) Cash Balance $ 250,000 Transfer from District (TID NO.19) Cash Balance $ 250,000 Transfer from TID No. 14 Cash Balance $ 250,000 Contribution from City Revolving Lean Fund $ 250,000 Total $ 1,000,000 The City's plan to make loans available is economically feasible as all funding proposed will come from unrestricted cash on hand. Pages 10 & 11 outline the estimated cash balances for TID No. 16 & TID No. 14 as a result of the proposed transfer. TID No. 14 is projected to have a cash balance of approximately $1.1 million at closure date. RECOMMENDATIONS/CONDITIONS Staff recommends approval of the Project Plan amendment for TID #14 as proposed. Item III- Amendment TID 14 Paqe 2 E L� N 0 � � W E:1 q E IRVING AV M LO❑ ❑ 41�ti1+ E PARKWAY A ND nnnn� ❑ IN 11 ■ NEEM O Cn ❑❑ CLEVELAND AV �.4Dr XT ❑ U) J W 4 0 N = N E�_:jj J 1i7�1��1 1�7T E IRVING AV L .i irtcremellit Ui3trist 'I4 Amellidmelltt N 1 in=0.05mi 1 in = 250 ft 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: 4/8/2020 These map(s)/datasets are provided for information purposes only and may not be sufficient or appropriate for legal, engineering, or surveying purposes. They are provided "AS -IS" without Prepared by: City of Oshkosh, WI warranties of any kind and the City of Oshkosh assumes no liability for use or misuse. HAieffn\Plannina Base Man -Jeff 2019.mxd Li 4& Oshkosh Pz]cTf- SUBJECT 6 SITE MEIN r- Mill 14 AMENDMENT 1 as, SUBJECT SITE 1� r is mr-;P,,Ei►,iEar Dj ,rp,,ir-;,r i=i ���►�i���»�►�i���rr City of Oshkosh maps and data are intended to be used for general identification purposes only, and the City of Oshkosh assumes no liability for the accuracy of the information. Those using the information are responsible for verifying accuracy. For full disclaimer please go to www.ci.oshkosh.wi.us/GlSdisclaimer N 1 in=0.04mi 1 in = 200 ft Printing Date: 4/14/2020 Prepared by: City of Oshkosh, WI Oshkosh C:\Users\minak\Desktop\2020 Plan Commission Site Plan Map Template.mxd P alter: rr,6dk