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HomeMy WebLinkAbout18. 21-70FEBRUARY 9, 2021 21-70 RESOLUTION (CARRIED_______LOST_______LAID OVER_______WITHDRAWN_______) PURPOSE: APPROVE DISSOLVING TAX INCREMENTAL DISTRICT NO. 11 OSHKOSH OFFICE CENTER INITIATED BY: CITY ADMINISTRATION WHEREAS, on January 10, 1995, the Common Council of the City of Oshkosh created Tax Incremental Finance District No. 11 Oshkosh Office Center; and WHEREAS, State Statutes require that when a municipality recovers its cost incurred in a district or because this District was created prior to October 1, 1995, when 27 years has expired, whichever occurs first, the District shall be dissolved; and WHEREAS, Tax Increment Finance District #7 has reached its 27 year statutory life; and WHEREAS, on February 25, 2020 the Common Council of the City of Oshkosh approved extending the life of TID No. 11 for 12 months in order to utilize the final year’s increment to fund the Healthy Neighborhood Initiative to improve housing stock of the community. NOW, THEREFORE BE IT RESOLVED by the Common Council of the City of Oshkosh that Tax Incremental Finance District No. 11 Oshkosh Office Center is dissolved. TO: Honorable Mayor and Members of the Common Council FROM: Allen Davis, Community Development Director DATE: February 4, 2021 RE: Approve Dissolving Tax Incremental District No. 11 Oshkosh Office Center BACKGROUND On January 10, 1995, Council approved a creation resolution for a project plan and boundaries for Tax Incremental Financing District (TID) No. 11 Oshkosh Office Center located at Washington Avenue and Court Street. TID No. 11 was used to pay for the acquisition and demolition of a blighted building and construction of a parking lot to serve TID 11. On February 25, 2020 TID No. 11 was extended for 12 months in order to utilize the final year’s increment of about $10,000 to add to the Healthy Neighborhood Initiative to improve housing stock of the community. ANALYSIS State Statutes require that a TID be terminated after enough increment has been generated to pay all remaining project costs or after the TID has been extended to fund a housing program as was previously done with this TID. TID No. 11 has now reached its statutory termination of 28 years and must be dissolved. The TID increment is currently valued at approximately $400,000 which will be added to the general property tax roll upon closure. FISCAL IMPACT The cash balance for TID 11 is about $70,000. After the final audit is complete, the City will retain about 30% of the funds for the Economic Development Revolving Loan Fund as indicated in the City’s TID closing policy. The other 70% of funds will be forwarded to the other taxing jurisdictions: the Oshkosh Area School District, Winnebago County and Fox Valley Technical College, in proportion to their contribution. RECOMMENDATION Staff recommends adoption of the above noted resolution. Respectfully Submitted, Approved, Allen Davis Mark A. Rohloff Community Development Director City Manager