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Home My WebLink AboutItem I - Project Plan City of Oshkosh, Wisconsin Organizational Joint Review Board Meeting Held: Scheduled for January 18, 2021 Public Hearing Held: Scheduled for January 19, 2021 Approval by Plan Commission: Scheduled for January 19, 2021 Adoption by Common Council: Scheduled for February 9, 2021 Approval by the Joint Review Board: TBD January 8, 2021 Project Plan Tax Incremental District No. 40 Miles Kimball Redevelopment Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 2 Table of Contents Executive Summary.................................................................................................................................. 3 Preliminary Maps of Proposed District Boundary ........................................................................ 6 Maps Showing Existing Uses and Conditions .............................................................................. 10 Preliminary Parcel List and Analysis ................................................................................................. 13 Equalized Value Test .............................................................................................................................. 15 Statement Listing the Kind, Number and Location of All Proposed Public Works or Improvements Within the District .................................................................................................... 16 Maps Showing Proposed Improvements and Uses ..................................................................... 21 Detailed List of Estimated Project Costs ...................................................................................... 24 Economic Feasibility Study, Description of the Methods of Financing Estimated Project Costs and the Time When Related Costs or Monetary Obligations are to be Incurred ....................................................................................................................................................... 25 Annexed Property .................................................................................................................................. 30 Estimate of Property to Be Devoted to Retail Business ......................................................... 30 Proposed Changes of Zoning Ordinances, Master Plan, Map, Building Codes and City Ordinances ................................................................................................................................................ 30 Statement of the Proposed Method for the Relocation of any Persons to be Displaced ......................................................................................................................................................................... 31 How Creation of the Tax Incremental District Promotes the Orderly Development of the City ......................................................................................................................................................... 31 List of Estimated Non-Project Costs ............................................................................................... 32 Legal Opinion Advising Whether the Plan is Complete and Complies with Wis. Stat. § 66.1105(4)(f) ..............................................................................................................................................33 Calculation of the Share of Projected Tax Increments Estimated to be Paid by the Owners of Property in the Overlying Taxing Jurisdictions .....................................................35 Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 3 SECTION 1: Executive Summary Description of District Tax Incremental District (“TID”) No. 40 (“District”) is a proposed 0.83-acre “In Need of Rehabilitation or Conservation” district consisting of tax parcel 03- 01300-200 located at the northwest corner of West 9th Avenue and South Main Street. The District will be created to pay the costs of development incentives needed to facilitate the rehabilitation and conservation of a 24,660 square foot four-story industrial building constructed in 1904 as an addition to the factory operations of the August Streich and Brother wagon factory. The building was later utilized by the Miles Kimball company but has now been vacant and underutilized for over fifteen years. YBR Properties – Miles Kimball LLC (“Developer”) proposes to acquire the property and redevelop the existing structure for use as a 28-unit market rate multi-family building (“Project”). In addition to the incremental property value and housing units that will be created, the Project will serve to rehabilitate a historic structure located at a key intersection within the “Core” subarea of the City’s Sawdust District Redevelopment Plan. Authority The City is creating the District under the provisions of Wis. Stat. § 66.1105. Estimated Total Project Cost Expenditure The City anticipates making total expenditures of approximately $1,834,000 (“Project Costs”) to undertake the projects listed in this Project Plan (“Plan”). Project Costs include an estimated $1,573,000 in development incentives, $100,000 for any required public improvements, $7,000 in interest expense related to projected advances, and $154,000 for District administrative costs related to its creation and ongoing administration. Based on the cash flow projection and assumptions made in this Plan, the $1,573,000 development incentive has a present value of $1,000,000 assuming that the Developer will pay interest at a rate of 4.375% to borrow against the future incentive payments which will be made on a pay as you go basis. The Developer has indicated that they expect to use a portion of the annual payments to secure a loan of approximately $567,000 to pay Project construction costs, with the balance providing additional cash flow for the Project to support financial feasibility. Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 4 Incremental Valuation The City projects that net new land and improvements value of approximately $3.48 million will result from the Project. Creation of this additional value will be made possible by the Project Costs made within the District. A table detailing assumptions as to the development timing and associated values is included in the Economic Feasibility Study located within this Plan. Expected Termination of District Based on the Economic Feasibility Study located within Section 9 of this Plan, the City anticipates that the District will generate enough tax increment to pay all Project Costs within 23 of its allowable 27 years, representing 21 years of actual tax increment collection. If public improvements expenditures are not required, the District would close one year sooner. 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. In reaching this determination, the City has considered: a. A review of the Project’s sources and uses, and cash flow proforma. Without tax increment financing (“TIF”) assistance projected cash on cash annual returns are negative through 2034 and average annual returns remain negative through 2042. With TIF assistance average annual cash on cash returns of 10% are achieved by 2042 after which the TIF assistance payments would end. An investor expectation of an average annual cash on cash return of 10% is reasonable for this Project. Based on Ehlers review, provision of pay as you go incentives in the amount requested is necessary to provide an acceptable return on investment for this Developer and indicates that “but for” the incentives, the Project as proposed would not likely proceed. b. That the Project is not eligible to receive Historic Preservation Tax Credits, New Market Tax Credits, or grants through Wisconsin Economic Development Corporation. Aside from the Property Assessed Clean Energy (PACE) program funding the Project has qualified for, lack of access to other financing programs which could be used to offset some or all the Project’s financing gap necessitate the request for TIF assistance. 2. The economic benefits of the District, as measured by increased employment, business and personal income, and property value, are Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 5 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 a blighted historic structure located within a key redevelopment area, creation of market rate multi-family housing to meet market demand, 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)(i)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 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. As detailed in Section 4 of this Plan, not less than 50% by area of the real property within the District is in need of rehabilitation or conservation as defined by Wis. Stat. § 66.1337(2m)(a). 5. Based on the foregoing finding, the District is designated as a district in need of rehabilitation or conservation. 6. The Project Costs relate directly to the rehabilitation or conservation of property within the District, consistent with the purpose for which the District is created. 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. The City estimates that less than 35% 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). 10. That there are no parcels to be included within the District that were annexed by the City within the preceding three-year period. 11. The Plan for the District is feasible and is in conformity with the Master Plan of the City. Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 6 SECTION 2: Preliminary Maps of Proposed District Boundary Maps Found on Following Pages. Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 7 Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 8 Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 9 Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 10 SECTION 3: Maps Showing Existing Uses and Conditions Maps Found on Following Pages. Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 11 Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 12 Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 13 SECTION 4: Preliminary Parcel List and Analysis The District will consist of a single tax parcel: Parcel Number: 03-0130-0000 Address: 8 West 9th Avenue Owner: Bridgeview Holdings LLC Acres: 0.83 Current Value: The improvements located on the parcel are in need of rehabilitation or conservation as defined by Wis. Stat. § 66.1337(2m)(a). Specifically, the Plan includes: 1. Carrying out plans for a program of voluntary repair and rehabilitation of buildings or other improvements. 2. Rehabilitation of buildings and improvements on the property where necessary to eliminate unhealthful, unsanitary or unsafe conditions, eliminate obsolete or other uses detrimental to the public welfare, to otherwise remove or prevent the spread of blight or deterioration. The building improvements located on the parcel, roughly 24,660 square feet of space split evenly over four floors, have significant local historical context as the only remaining portion of the August Streich and Brother wagon factory. The building, according to Oshkosh Public Museum records, was constructed in 1904 as an addition to the factory operations which at the time extended across the entire block from South Main St. to Nebraska St. The site was later purchased by the Miles Kimball Company and became part of their operations until the Oshkosh Redevelopment Authority acquired the site in 2005. Assessed Equalized Land $90,400 $101,643 Improvements $58,100 $65,326 Total $148,500 $166,969 Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 14 Despite its historical significance, the building has substantial obstacles that limits its redevelopment potential. On the second through fourth floors, there is only one window on each of the north and south facing elevations. For apartment use, access and lighting requirements will necessitate the addition of substantial window cuts. The need to substantially change the exterior facade will preclude the use of Historic Preservation Tax Credits as a source of financing. The site is adjacent to the neighboring Opportunity Zone census tract located on the south side of W 9th Avenue, but not in it, nor is it in a census tract that would be eligible for New Market Tax Credits. Grants through the Wisconsin Economic Development Corporation are also unavailable since the scope of the Project is limited to residential redevelopment. This lack of availability of commonly used development incentives has likely contributed to the building’s lack of use or redevelopment over the past 15-plus years. Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 15 SECTION 5: 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 $226,582,269. This value is less than the maximum of $535,229,292 in equalized value that is permitted for the City. Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 16 SECTION 6: Statement Listing the Kind, Number and Location of All Proposed Public Works or Improvements Within the District Project Costs are any expenditure made, estimated to be made, or monetary obligation 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. 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 8 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. Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 17 Utilities Sanitary Sewer System Improvements To allow development to occur, the City may need to construct, alter, rebuild or expand sanitary sewer infrastructure within the District. Eligible Project Costs include, but are not limited to, construction, alteration, rebuilding or expansion of collection mains; manholes and cleanouts; service laterals; force mains; interceptor sewers; pumping stations; lift stations; wastewater treatment facilities; and all related appurtenances. To the extent sanitary sewer projects undertaken within the District provide direct benefit to land outside of the District, the City will make an allocation of costs based on such benefit. Those costs corresponding to the benefit allocated to land within the District, and necessitated by the implementation of the Project Plan, are eligible Project Costs. Implementation of the Project Plan may also require that the City construct, alter, rebuild or expand sanitary sewer infrastructure located outside of the District. That portion of the costs of sanitary sewer system projects undertaken outside the District which are necessitated by the implementation of the Project Plan are eligible Project Costs. The improvements to the wastewater treatment facilities, although not within the ½ mile radius, is an eligible project cost under Wis. Stat. § 66.1105(2)(f)1 k. Water System Improvements To allow development to occur, the City may need to construct, alter, rebuild or expand water system infrastructure within the District. Eligible Project Costs include, but are not limited to, construction, alteration, rebuilding or expansion of distribution mains; manholes and valves; hydrants; service laterals; pumping stations; wells; water treatment facilities; storage tanks and reservoirs; and all related appurtenances. To the extent water system projects undertaken within the District provide direct benefit to land outside of the District, the City will make an allocation of costs based on such benefit. Those costs corresponding to the benefit allocated to land within the District, and necessitated by the implementation of the Project Plan, are eligible Project Costs. Implementation of the Project Plan may also require that the City construct, alter, rebuild or expand water system infrastructure located outside of the District. That portion of the costs of water system projects undertaken outside the District which are necessitated by the implementation of the Project Plan are eligible Project Costs. Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 18 Stormwater Management System Improvements Development within the District will cause stormwater runoff. To manage this stormwater runoff, the City may need to construct, alter, rebuild or expand stormwater management infrastructure within the District. Eligible Project Costs include, but are not limited to, construction, alteration, rebuilding or expansion of: stormwater collection mains; inlets, manholes and valves; service laterals; ditches; culvert pipes; box culverts; bridges; stabilization of stream and river banks; and infiltration, filtration and detention Best Management Practices (BMP’s). To the extent stormwater management system projects undertaken within the District provide direct benefit to land outside of the District, the City will make an allocation of costs based on such benefit. Those costs corresponding to the benefit allocated to land within the District, and necessitated by the implementation of the Project Plan, are eligible Project Costs. Implementation of the Project Plan may also require that the City construct, alter, rebuild or expand stormwater management infrastructure located outside of the District. That portion of the costs of stormwater management system projects undertaken outside the District which are necessitated by the implementation of the Project Plan are eligible Project Costs. Electric Service To create sites suitable for development, the City may incur costs to provide, relocate or upgrade electric services. Relocation may require abandonment and removal of existing poles or towers, installation of new poles or towers, or burying of overhead electric lines. Costs incurred by the City to undertake this work are eligible Project Costs. Gas Service To create sites suitable for development, the City may incur costs to provide, relocate or upgrade gas mains and services. Costs incurred by the City to undertake this work are eligible Project Costs. Communications Infrastructure To create sites suitable for development, the City may incur costs to provide, relocate or upgrade infrastructure required for voice and data communications, including, but not limited to telephone lines, cable lines and fiber optic cable. Costs incurred by the City to undertake this work are eligible Project Costs. Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 19 Streets and Streetscape Street Improvements To allow development to occur, the City may need to construct or reconstruct streets, highways, alleys, access drives and parking areas. Eligible Project Costs include, but are not limited to: excavation; removal or placement of fill; construction of road base; asphalt or concrete paving or repaving; installation of curb and gutter; installation of sidewalks and bicycle lanes; installation of culverts, box culverts and bridges; rail crossings and signals; utility relocation, to include burying overhead utility lines; street lighting; installation of traffic control signage and traffic signals; pavement marking; right-of-way restoration; installation of retaining walls; and installation of fences, berms, and landscaping. Streetscaping and Landscaping To attract development consistent with the objectives of this Plan, the City may install amenities to enhance development sites, rights-of-way and other public spaces. These amenities include but are not limited to landscaping; lighting of streets, sidewalks, parking areas and public areas; installation of planters, benches, clocks, tree rings, trash receptacles and similar items; and installation of brick or other decorative walks, terraces and street crossings. These and any other similar amenities installed by the City are eligible Project Costs. Miscellaneous Projects Outside the Tax Increment District Pursuant to Wis. Stat. § 66.1105(2)(f)1.n, the City may undertake projects within territory located within one-half mile of the boundary of the District provided that: 1) the project area is located within the City’s corporate boundaries; and 2) the projects are approved by the Joint Review Board. The cost of projects completed outside the District pursuant to this section are eligible project costs and may include any project cost that would otherwise be eligible if undertaken within the District. The City intends to install public improvements as needed to support the Project. These public improvements may need to be made within the rights-of-way adjoining the District, or in other areas near the District’s boundaries. Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 20 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. Financing Costs Interest expense, debt issuance expenses, redemption premiums, and any other fees and costs incurred in conjunction with obtaining financing for projects undertaken under this Plan are eligible Project Costs. Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 21 SECTION 7: Maps Showing Proposed Improvements and Uses Maps Found on Following Pages. Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 22 Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 23 Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 24 SECTION 8: Detailed List of Estimated Project Costs The following list identifies the Project Costs that the City currently expects to 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 6 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. Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 25 SECTION 9: Economic Feasibility Study, Description of the Methods of Financing Estimated Project Costs and the Time When Related Costs or Monetary Obligations 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 $3.48 million in incremental value by January 1, 2022. Estimated valuations and timing for construction of the Project are included in Table 1. Assuming a projected equalized TID Interim tax rate of $25.32 for the 2023 budget year, and a rate of $25.44 for the 2024 budget year, and no economic appreciation or depreciation, the Project would generate $2,388,573 in incremental tax revenue over the 27-year term of the District as shown in Table 2. The projected tax rates used for this Plan are intended to reflect the anticipated impacts of the recently approved Oshkosh Area School District capital facilities referendum. The current TID interim tax rate for the 2021 budget year is $24.60 per thousand of equalized value. Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 26 Table 1 – Development Assumptions Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 27 Table 2 – Tax Increment Projection Worksheet Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 28 Financing and Implementation The City anticipates making total expenditures of approximately $1,834,000 including an estimated $1,573,000 in development incentives, $100,000 for any required public improvements, $7,000 in interest expense related to projected advances, and $154,000 for District administrative costs related to its creation and ongoing administration. Based on the cash flow projection and assumptions made in this Plan, the $1,573,000 development incentive has a present value of $1,000,000 assuming that the Developer will pay interest at a rate of 4.375% to borrow against the future incentive payments which will be made on a pay as you go basis. The Developer has indicated that they expect to use a portion of the annual payments to secure a loan of approximately $567,000 to pay Project construction costs, with the balance providing additional cash flow for the Project to support financial feasibility. 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 2043, reflecting 21 years of tax increment collections, and 23 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. If public improvements expenditures are not required, the District would close one year sooner. Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 29 Table 3 – Cash Flow Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 30 SECTION 10: 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 11: Estimate of Property to Be Devoted to Retail Business Pursuant to Wis. Stat. § 66.1105(5)(b), the City estimates that less than 35% of the territory within the District will be devoted to retail business at the end of the District’s maximum expenditure period. SECTION 12: Proposed Changes of Zoning Ordinances, Master Plan, Map, Building Codes and City Ordinances Zoning Ordinances Current zoning is Central Mixed Use with a Planned Development overlay (CMU-PD). The proposed Plan is in general conformance with the City’s current zoning ordinances. Master (Comprehensive) Plan and Map The proposed Plan is in general conformance with the City’s Comprehensive Plan identifying the area as appropriate for mixed use development. Building Codes and Ordinances 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. Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 31 SECTION 13: Statement of the Proposed Method for the Relocation of any Persons to be Displaced 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. SECTION 14: How Creation of the Tax Incremental District Promotes the Orderly Development of the City Creation of the District and the implementation of the projects in its Plan will promote the orderly development of the City by rehabilitating and conserving property and providing appropriate financial incentives for private development projects. 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 Projects will be compatible with adjacent land uses. Development of new uses in the District will add to the tax base and will generate positive secondary impacts in the community such as rehabilitation and conservation of a blighted historic structure located within a key redevelopment area, creation of market rate multi-family housing to meet market demand, and provision of employment and commercial opportunities related to the construction and operation of the Project. Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 32 SECTION 15: 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. No improvements to be made within the District will benefit property outside the District. Furthermore, there will be no improvements made outside the District that will only partially benefit the District. Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 33 SECTION 16: Legal Opinion Advising Whether the Plan is Complete and Complies with Wis. Stat. § 66.1105(4)(f) Legal Opinion Found on Following Page. Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 34 Insert Legal Opinion SAMPLE Mayor City of Oshkosh 215 Church Ave Oshkosh, Wisconsin 54903 RE: Project Plan for Tax Incremental District No. 40 Dear Mayor: Wisconsin Statute 66.1105(4)(f) requires that a project plan for a tax incremental financing district include an opinion provided by the City Attorney advising as to whether the plan is complete and complies with Wisconsin Statute 66.1105. As City Attorney for the City of Oshkosh, I have been asked to review the above-referenced project plan for compliance with the applicable statutory requirements. Based upon my review, in my opinion, the Project Plan for the City of Oshkosh Tax Incremental District No. 40 is complete and complies with the provisions of Wisconsin Statute 66.1105. Sincerely, City Attorney Tax Incremental District No. 40 Project Plan City of Oshkosh Prepared by Ehlers Page | 35 SECTION 17: Calculation of the Share of Projected Tax Increments Estimated to be Paid by the Owners of Property in the Overlying Taxing Jurisdictions The following projection is provided to meet the requirements of Wis. Stat. § 66.1105(4)(i)4.