HomeMy WebLinkAbout25. 20-189 APRIL 28, 2020 20-189 RESOLUTION
(CARRIED 7-0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE BUDGET AMENDMENTS TO 2020 OPERATING
BUDGET FOR:
A) TID 14 Mercy Medical Center Redevelopment ($250,000)
B) TID 19 Northwest Industrial Park ($250,000)
C) TID 16100 Block Redevelopment ($500,000)
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 14 Mercy Medical Center Redevelopment and TID 19 Northwest
Industrial Park account requires an increase of$250,000 each in expenditures in order to
allocate funds to TID 16 100 Block redevelopment 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 TID 16 100 Block Redevelopment account requires an increase of
$500,000 in expenditures in order to use the funds allocated from TID 14 and TID 19 as
part of the Revolving Loan 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. 522-2040-xxxx TID 14 Mercy Medical Center Redevelopment $250,000
Acct. No. 528-1040-xxxx TID 19 Northwest Industrial Park$250,000
Acct. No. 526-1040-xxxx TID 16- 100 Block Redevelopment $500,000
41,,or
Oshkosh
TO• Honorable Mayor and Members of the Common Council
FROM: Allen Davis, Community Development Director
DATE: April 23, 2020
RE: Approve Budget Amendments to TID#14 Mercy Medical Center Redevelopment
(+$250,000) and TID#19 Northwest Industrial Park (+$250,000) and TID#16 100
Block Redevelopment (+$500,000)
BACKGROUND
Recent events created by the COVID-19 pandemic has disrupted many small businesses in the
Central City. TID #16 is centered on the 100 Block of North Main Street and the City has
extended a new COVID-19 Emergency Loan Fund centered on the 1/2 mile radius around the
100 Block.
City funded the City's RLF -TID 16 portion of the loan fund with cash balance in TID #16 of
$250,000. Many central city small businesses today find themselves in a situation they did not
create, short on capital, and needing to fund on-going rent and payroll costs, with little or no
income. To help alleviate that issue, the City can also donate funds from TID #14 and TID #19
cash balances to TID#16 so that additional funds can be added to the RLF-TID 16 portion of the
Emergency Loan Fund. In the case of TID #14, a portion of the cash balance is being used for
development around Grove Street. That funding will remain in TID #14. TID #19 has paid
much of the debt service required for the TID #19, and there is an existing cash balance. These
budget amendment actions are designed to allow more funding to RLF-TID 16, prior to
termination, and with the approval of the other taxing jurisdictions.
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 small
businesses located in the central part of the City The additional funds from TID#14 and
TID#19 budget amendments would make more funding available during this emergency.
The target markets for the RLF-TID 16 fund include small businesses that are located
exclusively inside the central part of the City State Law allows TID districts to spend within a
City Hall,215 Church Avenue P.O.Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh WI us
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. The small businesses located
outside the central part of the City can also be served by the RLF-COVID 19 City Council
action to appropriate the funds for RLF COVID-19 was approved on April 14, 2020.
The proposed RLF-flD 16 donations from I1D#14 and TID#19 to TID#16 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 Joint Review Board will be acting on the proposed TID#14 and # 19 amendments on April
29, 2020.
FISCAL IMPACT
There is no fiscal impact since the TID#14 and TID#19 donations to TID#16 have no impact on
the general fund nor the levy In theory, all the loaned RLF-flU 16 funds will 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.
RECOMMENDATION
The City Council approves the proposed Budget Amendments to TID #14 Mercy Medical
Center Redevelopment of+$250,000 and TID #19 Northwest Industrial Park of+$250,000 for
donation to the RLF-TID 16 Emergency Loan Program and TID #16 of+$500,000 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 htip://www.ci.oshkosh.wi.us