Loading...
HomeMy WebLinkAbout4. Red Earth LLCLLCd Earth LLCd Earth LLCd Earth Red Earth, L.L.C. April 15, 2021 Allen Davis Director of Community Development Kelly Nieforth Economic Development Manager Redevelopment Authority of the City of Oshkosh Department of Community Development 215 Church Avenue, Room 201 Oshkosh, WI 54901 Subject: Sawdust District Redevelopment Redevelopment Authority Members: Enclosed is a proposal for redevelopment of a parcel at the River North Subdistrict, within the Sawdust District in the City of Oshkosh. Our plan includes a complete construction management service, from the planning and design, to construction and management of a seven building, 338 unit multi-family complex. Please See attached proposal for details, and contact me at (608) 374-4200 with any questions. Sincerely, Jacob R. Buswell Red Earth, LLC LLCd Earth LLCd Earth LLCd Earth WIS C O N S IN OS H K O SH APARTMENTS Red Earth, LLC 1201 N. Superior Ave. Tomah, WI 54660 Jacob Buswell Site & Project Coordinator jake.buswell@allamericandoitcenter.com (608) 374-4200 LLCd Earth LLCd Earth LLCd Earth Proposal for Development City of Oshkosh Sawdust District Redevelopment River North Subarea 43 E. 7th Avenue City of Oshkosh, WI 54902 WISCO N S IN OS H K OSH APARTMENTS LLCd Earth LLCd Earth LLCd Earth Red Earth, L.L.C. Red Earth, LLC and Americon Construction are positioned to give the City of Oshkosh the benefit of a centralized ownership that handles the entire project, from the RFP stage to the final stabilization of the properties. The companies and team members involved in this project are outlined in this proposal. With extensive background in acquisition and development, commercial construction and property management, our team will provide the City of Oshkosh confidence in this initial RFP concept. Americon Construction Matthew Buswell 1201 N. Superior Ave. Tomah, WI 54660 (608) 377-7201mbuswell@americonconstructionco.com Since 1980, Americon has constructed almost every type of building imaginable, including thousands of apartment units, and hundreds of thousands of square feet of office/ retail space. Americon’s core belief is that a contractor must have strong relationships with project subcontractors in order to receive the best possible end results. The Americon team seeks the highest integrity and quality of work attainable. GENERAL CONTRACTOR LLCd Earth LLCd Earth LLCd Earth Red Earth, LLC Jacob Buswell 1201 N. Superior Ave. Tomah, WI 54660 (608) 374-4200 jake.buswell@allamericandoitcenter.com Red Earth, LLC was formed specifically for the purpose of developing a multi-family complex in Oshkosh Wisconsin. The five members involved have over 100 combined years of experience in the multi-family construction and management industry. Between operating Americon Construction and 3 Amigos Property Management, the team at Red Earth will deliver the results expected in this project. DEVELOPER DEVELOPER CREDENTIALS LLCd Earth LLCd Earth LLCd Earth Red Earth, L.L.C. Knothe & Bruce Architects, LLC Kevin Burow, AIA, LEED A.P. 7601 University Ave. Suite 201 Middleton, WI 53562 (608) 836-3690info@knothebruce.com Knothe & Bruce is an award-winning architecture and design firm involved in a wide range of multi-family projects – from historic renovations to modern mid-rise apartments, and from student housing to senior housing campuses. Regardless of the project or locale, Knothe & Bruce have collaborated closely with clients since 1974, focusing on design for the market, future residents, and the community. ARCHITECT Three Amigos Property Management Todd Page 403 Gillette St. LaCrosse, WI 54603 (608) 781-1275 todd.page@allamericandoitcenter.com PROPERTY MANAGEMENT 3 Amigos Property Management is a staff of professionals including Site and Project Coordinators, Financial Analyst, Director of Properties, Leasing Representatives and Maintenance Technicians. Our team manages over $100 million worth of properties in and around La Crosse County. 3 Amigos Management provides instant notification of service requests, a business center, online payment and a DNA registry of all on-site tenants’ pets. DEVELOPER CREDENTIALS JARROD HOLTER City Engineer/Dir. Pub. Works City of Onalaska 415 Main St. Onalaska, WI 54650 (608) 781-9530 Abbey Court Multi-Family Complex TOM PINION City Engineer & Planning City of Baraboo 101 South Blvd. Baraboo, WI 53913 (608) 393-9945 Lynn Street Apartments Multi-Family Complex SCOTT A. HEINIG Village Administrator Village of Holmen 421 S. Main Street Holmen, WI 54636 (608) 526-4336 Grasslands Apartments Multi-Family Complex CUSTOMER REFERENCES LLCd Earth LLCd Earth LLCd Earth Red Earth, L.L.C. Project Type: Multi-Family ApartmentsProject Owner: 3 Amigos Property Mgt. Builder: Americon Construction Location: 1614 Prairie Place, Holmen, WI Project Completion: 2018 GRASSLANDS APARTMENTS • 104 Total Units Amenities Include: • Pet Wash/Groom Station • Lounge with Bar Area • Commons Area/Game Room • Outdoor Patio with Firepit • Indoor Underground Parking • Theater Room COMPARABLE PROJECTS Project Type: Multi-Family Apartments Project Owner: 3 Amigos Property Mgt. Builder: Americon Construction Location: 2101 Abbey Court, Onalaska, WI Estimated Project Completion: 2023 • 333 Total Units ABBEY COURT APARTMENTS Completed to Date: • (2) 24-unit, (1) 40-unit, • (1) 80-unit (under const. 2021) Amenities Include: • Resident Clubhouse • Outdoor Pool with Lounge • Indoor Hot Tub & Sauna • Fitness Center • Kitchenette with Dining Area • Commons Area/Game Room • Theater Room • Indoor Underground Parking LLCd Earth LLCd Earth LLCd Earth Red Earth, L.L.C. TODD D. PAGE Financial Analyst / Managing Partner Bachelor of Science - Business Administration - UW - Eau Claire. Magna Cum Laude, Certified Public Accountant Degree Vice President - All American Lumber, Inc. - 1984-2019. Instrumental in taking Norwalk Lumber from $188,000 annual sales to over $30 million in annual sales with All American Lumber.Partner - 3 Amigos Management - Proforma projections, finance reports analyst TEAM MEMBERS JACOB R. BUSWELL Site & Project Coordinator Bachelor of Science - Business Administration - UW-LaCrosse Vice President of Operations - All American Lumber, Inc. Board of Directors - Tomah (WI) Chamber of Commerce 2013-2015 Chairman of Board of Directors - Wisconsin Retail Lumberman’s Association and Wisconsin Lumber Dealers Education Foundation Co-Owner - Rapid River Apartments, LLC. Red Earth, LLC Members Holding a 20% Ownership Financial Analyst / Managing Partner TODD D. PAGE JACOB R. BUSWELLSite & Project Coordinator RICHARD J. BEYERSite & Project Coordinator MATTHEW B. BUSWELLConstruction Specialist BRIAN L. BUSWELLProject Executor LLCd Earth LLCd Earth LLCd Earth Red Earth, L.L.C. MATTHEW B. BUSWELL Construction Specialist Bachelor of Science - Business Mgt. & Economics - UW-LaCrosse Degree in Construction Management - University of Minnesota Project Manager - Ebert Construction, Minneapolis, MN 2012-2014 Board of Directors - Union Bank 2019-2020 Board of Directors - River Bank 2020-CurrentVice President of Construction - Americon Construction: Duties include overall supervision of Project Managers, Superintendents, field staff. Over the past 15 years managed or involved in multiple projects totaling near $100 Million. TEAM MEMBERS BRIAN L. BUSWELL Project Executor Bachelor of Science - Business Administration - UW- LaCrosse Founder & CEO - All American Lumber, Inc. 1980-present All American Lumber consists of Americon Construction, All American Do it Center 3 retail locations & All American Steel (manufacturing plant in Tomah, WI) Co-Owner - 3 Amigos Property Management & Affiliated Entities Past Monroe County Board Supervisor, Recipient of Lieutenant Governor’s Excellence Award in Historical Preservation. Co-owner of Affiliated Entities with value of over $100 million property value. Past Board of Directors member for Do it Best Corp., a $4 Billion hardware and lumber cooperative. RICHARD J. BEYER Site & Project Coordinator Director / Member - River Bank 2016-2020. River Bank has just under $1 Billion dollars of assets in its portfolio. Currently is a River Bank Senior Advisor. Involved in real-estate since 1991. Acquired, built, redeveloped thousands of units totaling over $500 million in property value. LLCd Earth LLCd Earth LLCd Earth Red Earth, L.L.C. DEPARTMENT OF THE TREASURY INTERNAL REVENUE SERVICE CINCINNATI OH 45999-0023 Date of this notice: 01-15-2021 Employer Identification Number: 86-1493887 Form: SS-4 Number of this notice: CP 575 B RED EARTH LLC TODD D PAGE MBR 1310 W WISCONSIN ST For assistance you may call us at: SPARTA, WI 54656 1-800-829-4933 IF YOU WRITE, ATTACH THE STUB AT THE END OF THIS NOTICE. WE ASSIGNED YOU AN EMPLOYER IDENTIFICATION NUMBER Thank you for applying for an Employer Identification Number (EIN). We assigned you EIN 86-1493887. This EIN will identify you, your business accounts, tax returns, and documents, even if you have no employees. Please keep this notice in your permanent records. When filing tax documents, payments, and related correspondence, it is very important that you use your EIN and complete name and address exactly as shown above. Any variation may cause a delay in processing, result in incorrect information in your account, or even cause you to be assigned more than one EIN. If the information is not correct as shown above, please make the correction using the attached tear off stub and return it to us. Based on the information received from you or your representative, you must file the following form(s) by the date(s) shown. Form 1065 03/15/2022 If you have questions about the form(s) or the due date(s) shown, you can call us at the phone number or write to us at the address shown at the top of this notice. If you need help in determining your annual accounting period (tax year), see Publication 538, Accounting Periods and Methods. We assigned you a tax classification based on information obtained from you or your representative. It is not a legal determination of your tax classification, and is not binding on the IRS. If you want a legal determination of your tax classification, you may request a private letter ruling from the IRS under the guidelines in Revenue Procedure 2004-1, 2004-1 I.R.B. 1 (or superseding Revenue Procedure for the year at issue). Note: Certain tax classification elections can be requested by filing Form 8832, Entity Classification Election. See Form 8832 and its instructions for additional information. A limited liability company (LLC) may file Form 8832, Entity Classification Election, and elect to be classified as an association taxable as a corporation. If the LLC is eligible to be treated as a corporation that meets certain tests and it will be electing S corporation status, it must timely file Form 2553, Election by a Small Business Corporation. The LLC will be treated as a corporation as of the effective date of the S corporation election and does not need to file Form 8832. To obtain tax forms and publications, including those referenced in this notice, visit our Web site at www.irs.gov. If you do not have access to the Internet, call 1-800-829-3676 (TTY/TDD 1-800-829-4059) or visit your local IRS office. DEVELOPER LEGAL STRUCTURE LLCd Earth LLCd Earth LLCd Earth Red Earth, L.L.C. (IRS USE ONLY) 575B 01-15-2021 REDE B 9999999999 SS-4 IMPORTANT REMINDERS: * Keep a copy of this notice in your permanent records.This notice is issued only one time and the IRS will not be able to generate a duplicate copy for you. You may give a copy of this document to anyone asking for proof of your EIN. * Use this EIN and your name exactly as they appear at the top of this notice on all your federal tax forms. * Refer to this EIN on your tax-related correspondence and documents. If you have questions about your EIN, you can call us at the phone number or write to us at the address shown at the top of this notice. If you write, please tear off the stub at the bottom of this notice and send it along with your letter. If you do not need to write us, do not complete and return the stub. Your name control associated with this EIN is REDE. You will need to provide this information, along with your EIN, if you file your returns electronically. Thank you for your cooperation. Keep this part for your records. CP 575 B (Rev. 7-2007) ---------------------------------------------------------------------------------------------- Return this part with any correspondence so we may identify your account. Please CP 575 B correct any errors in your name or address. 9999999999 Your Telephone Number Best Time to Call DATE OF THIS NOTICE: 01-15-2021 ( ) - EMPLOYER IDENTIFICATION NUMBER: 86-1493887 _____________________ _________________ FORM: SS-4 NOBOD INTERNAL REVENUE SERVICE RED EARTH LLC CINCINNATI OH 45999-0023 TODD D PAGE MBR 1310 W WISCONSIN ST SPARTA, WI 54656 DEVELOPER LEGAL STRUCTURE LLCd Earth LLCd Earth LLCd Earth Red Earth, L.L.C. DEVELOPER LEGAL STRUCTURE State of Wisconsin DEPARTMENT OF FINANCIAL INSTITUTIONS Division of Corporate & Consumer Services FILING FEE $170.00 Please check box to request Optional Expedited Service  + $25.00 DFI/CORP/502 (02/18) 1 FORM 502 ARTICLES OF ORGANIZATION LIMITED LIABILITY COMPANY Sec. 183.0202 Wis. Stats. Executed by the undersigned for the purpose of forming a Wisconsin limited liability company under Ch. 183 of the Wisconsin Statutes: Article 1. Name of the limited liability company: ____________________________________________________________________________ Article 2. The limited liability company is organized under Ch. 183 of the Wisconsin Statutes. Article 3. Name of the initial registered agent: Article 4. Street address of the initial registered office: (The complete physical address, including street and number, if assigned, and ZIP code. A PO Box, in the same city or town, may be included as part of the address, but is insufficient alone.) Article 5. Management of the limited liability company shall be vested in: (Select and check (X) the one appropriate choice below)  a manager or managers OR  its members Article 6. Name and complete address of each organizer: Organizer’s signature Organizer’s signature This document was drafted by (Name the individual who drafted the document)  OPTIONAL – This document has a delayed effective date:__________________________________ (up to 90 days after received date) NOTE: The articles of organization may contain only that information required under items 1 through 6. The company may create a separate operating agreement that includes additional information. Office Use Only Red Earth,LLC Todd D.Page Todd D.Page 1310 West Wisconsin StreetSparta,WI 54656 Jack D.Buswell 1310 West Wisconsin StreetSparta,WI 54656 LLCd Earth LLCd Earth LLCd Earth Red Earth, L.L.C. DEVELOPER LEGAL STRUCTURE DFI/CORP/502 (02/18) 2 ARTICLES OF ORGANIZATION - Limited Liability Company _____________________________________________________ _____________________________________________________ ▲ Please provide an email or postal mailing address for the filed copy of the document. Your phone number during the day: ______________________________________ INSTRUCTIONS (Ref. sec. 183.0202 Wis. Stats. for document content) Please use BLACK ink. Submit one original to State of WI-Dept. of Financial Institutions, Box 93348, Milwaukee WI, 53293-0348, with the $170.00 filing fee, payable to the department. Filing fee is non-refundable. (If sent by Express or Priority U.S. mail, please visit www.wdfi.org/contact_us/ for current physical address). This document can be made available in alternate formats upon request to qualifying individuals with disabilities. The original must include an original manual signature. Upon filing, the information in this document becomes public and might be used for purposes other than those for which it was originally furnished. If you have any questions, please contact the Division of Corporate & Consumer Services at 608-261-7577. Hearing-impaired may call 711 for TTY. Article 1. The name must contain the words “limited liability company” or “limited liability co.” or end with the abbreviation “L.L.C.” or “LLC”. Article 2. This statement is required by sec. 183.0202(1). Articles 3 & 4. The company must have a registered agent located at a registered office in Wisconsin. The address of the registered office is to describe the physical location where the registered agent maintains their business office. Provide the street number and name, city and ZIP code in Wisconsin. P O Box addresses may be included as part of the address, but are insufficient alone. The company may not name itself as its own registered agent. Article 5. Indicate whether management of the company will be vested in a manager or managers, or in its members. Select only one choice. (Ref. sec. 183.0401, Wis. Stats.) Article 6. Print or typewrite the name and complete address of each organizer. At least one organizer is required to sign the document, although all organizers may sign. If the document is executed in Wisconsin, sec. 182.01(3), Wis. Stats., provides that it shall not be filed unless the name of the drafter (either an individual or a governmental agency) is printed in a legible manner. If the document is not executed in Wisconsin, enter that remark. This document may declare a delayed effective date. To do so, complete the statement. The delayed effective date may not be before, or more than 90 days after, the document is received by the Department of Financial Institutions for filing. Arndt,Buswell &Thorn,S.C.101 West Oak Street P.O.Box 349Sparta,WI 54656 (608)269-1200 LLCd Earth LLCd Earth LLCd Earth Red Earth, L.L.C. Proposed Project: Multi-Family Complex. The Complex will have approximately 338 units throughout seven buildings, plus outdoor pool and clubhouse building. Identification: Sawdust Apartments (Final name and logo subject to change) PROPOSED LAND USE: MULTI-FAMILY HOUSING COMPLEX WISCONS IN O SHKOSH APARTMENTS PROJECT DESCRIPTION Project Details: Located on this parcel within the River North Subarea will be Class-A Apartment Buildings, including an outdoor pool with lounge and clubhouse. Featured amenities include fitness center, hot tub and sauna, community/common area, theatre room, pet wash/groom station, bike rack parking/bike repair station and kitchenette. Additionally, residents have access to secure, private underground parking. Not only will it be aesthetically appealing from both nearby land and water views, but it will strengthen the tax base while increasing the downtown population. Nearby businesses of all kinds will benefit by the increased foot and vehicle traffic in the area. Construction Materials: We build to hold properties. We do not construct to sell in the short term. Because we are a long term owner of our projects, we use high quality design and high quality materials to last generations. We build to accommodate quality tenants. Our units exceed code requirements for sound-proofing between units by filling floor systems with cellulose, and using sound board and sound channel in hallways, ceilings and common walls. Exterior Aesthetics: The exterior features brick with either LP SmartSide and/or James Hardie Cement Board siding. We do not use vinyl siding or industrial steel siding on our apartment buildings. LLCd Earth LLCd Earth LLCd Earth Red Earth, L.L.C. Case: In a recent TIF project we structured, our team broke ground within a couple weeks of taking property ownership and completing the development agreement. Please note that this timeline followed months of municipality and DNR approvals prior to the development agreement being finalized. PROJECT DESCRIPTION Timetable for Construction: We would use a phased approach. The first phase would begin with two 48-unit buildings (Buildings 1 and 2) each connecting to the clubhouse. The second phase would consist of constructing the center core, including a 48- unit and 82-unit building (Buildings 7 and 4). The third phase would complete the project with a final 48-unit and (2) 32-unit buildings (Buildings 3, 5 and 6). Expected total completion timeline would be five years. Environmental Cost: The site contains sawdust and other contaminated soils. While the undesirable soils are unfortunate, they can be utiliized to the benefit of the project, and not put further stress on the environment. If you look close at the rendered photo to the left, you will notice a raised area between the buildings. This area is designed to be a peaceful quiet area, an area without traffic, a place to slow down. A great deal of these affected soils are anticipated to be used to raise the elevation of this unique area. With completion of the project, they will be capped with a hard surface or topsoil with sod. The result will be an elegant concept combined with an eye toward the environment. Sawdust Apartments will have multiple electric car charging stations with the infrastructure to have available to service all parking stalls. LLCd Earth LLCd Earth LLCd Earth Red Earth, L.L.C. CLU B HOU S E WISC O N S IN OS H K OSH APARTMENTS CONCEPT PLAN LLCd Earth LLCd Earth LLCd Earth Red Earth, L.L.C. PROJECT GALLERY The elevated green space between the buildings is a peaceful, quiet area without traffic. The majority of parking is designed to be centered between the buildings, enhancing the aesthetics from outside the Sawdust Apartment Complex. A park like feel will surround all of the buildings. Walkways with landscaping lead to many usable outdoor spaces. The project is close and convenient to many downtown restaurants, shopping and government facilities. LLCd Earth LLCd Earth LLCd Earth Red Earth, L.L.C. Indoor Amenities Include: • (7) 4-Story Apartment Buildings: Ranging from 32 units to 82 units per Building • Approximately 310 Underground Parking Stalls: A Range of 24 to 78 per Building, Depending on Building Size, and Electric Car Charging Stations. • The Clubhouse features a Fitness Center, Hot Tub and Sauna, Common Area/Game Room, Theater Room, Pet Wash/Groom Station, Kitchenette and Management Office. PROJECT GALLERY The City of Oshkosh’s Riverwalk will pass alongside this complex. The Clubhouse is conveniently located, facing the center of the complex, and has a view of the Fox River. A beautifully landscaped walk has been designed to provide privacy for Sawdust Apartment Residents. Outdoor walkways have a plaza-looking appearance from the center of the complex to outlying areas. LLCd Earth LLCd Earth LLCd Earth Red Earth, L.L.C. PROJECT GALLERY Outdoor Amenities Include: • Swimming Pool, Dog Run Area, Outdoor Lounge/Shared Plaza, Bike Rack Parking • Approximately 186 Parking Stalls, which include Handicap Spaces • City Owned, Developed and Maintained Game Areas Including: Playground Structures, Basketball and Pickleball Courts (Open to the Public) Outdoor common space is perfect for business professionals or students looking to escape working indoors, or looking for quiet or social time. Adjacent public amenities maintained by the city of Oshkosh to include playground, basketball and pickleball courts. LLCd Earth LLCd Earth LLCd Earth Red Earth, L.L.C. FINANCING PLAN A) City Participation: The proposed and intended use of the property is the construction and management of a 338-unit luxury apartment complex with approximately a $35 million dollar assessed value. This value is based on the closest comparison, a 2019 tax assessment of approximately $94,263 per unit for the Anthem Luxury Living property plus approximately $9,000 per unit for our added amenities, building design, and aesthetics. Since the city and the developer do not control actual assessed values, upon completion and stabilization of the entire project the developer guarantees a minimum conservative assessed value of $32 million dollars, which is anticipated to yield approximately $816,000 in total real estate taxes annually (estimated mill rate $.0255 per $1,000 of assessed value). 1. We request the city participation to be in the form of a “Pay Go Reimbursement” of 80% of the annual taxes paid by owner for up to 20 years. City shall be obligated to pay TIF incentive up to 17% of the total estimated $59,150,000 of expenses incurred and paid by the developer/owner. We request the city reimburse the owner on or before September 1st of each year. TIF incentive payments shall not exceed 17% of the total estimated $59,150,000 of expenses incurred or exceed a maximum cumulative amount of $10,055,500. 2. The annual 80% tax reimbursement will start when the tax assessment is adjusted following the completion of the first building. 3. Example TIF Structure: (Mill rate, assessment, and timeline are variable items) TIF YEAR YEAR TAX YEAR ASSEESSMENT APPROX. TAX REIMBURSEMENT NET TAX PER YR 1 2022 2021 ---- 2 2023 2022 $4,560,000.00 $116,280.00 $93,024.00 $23,256.00 3 2024 2023 $10,120,000.00 $258,060.00 $206,448.00 $51,612.00 4 2025 2024 $13,680,000.00 $348,840.00 $279,072.00 $69,768.00 5 2026 2025 $18,240,000.00 $465,120.00 $372,096.00 $93,024.00 6 2027 2026 $26,030,000.00 $663,765.00 $531,012.00 $132,753.00 7 2028 2027 $29,070,000.00 $741,285.00 $593,028.00 $148,257.00 8 2029 2028 $32,110,000.00 $818,805.00 $655,044.00 $163,761.00 9 2030 2029 $32,110,000.00 $818,805.00 $655,044.00 $163,761.00 10 2031 2030 $32,110,000.00 $818,805.00 $655,044.00 $163,761.00 11 2032 2031 $32,110,000.00 $818,805.00 $655,044.00 $163,761.00 12 2033 2032 $32,110,000.00 $818,805.00 $655,044.00 $163,761.00 13 2034 2033 $32,110,000.00 $818,805.00 $655,044.00 $163,761.00 14 2035 2034 $32,110,000.00 $818,805.00 $655,044.00 $163,761.00 15 2036 2035 $32,110,000.00 $818,805.00 $655,044.00 $163,761.00 16 2037 2036 $32,110,000.00 $818,805.00 $655,044.00 $163,761.00 17 2038 2037 $32,110,000.00 $818,805.00 $655,044.00 $163,761.00 18 2039 2038 $32,110,000.00 $818,805.00 $655,044.00 $163,761.00 19 2040 2039 $32,110,000.00 $818,805.00 $655,044.00 $163,761.00 20 2041 2040 $32,110,000.00 $818,805.00 $120,292.00 $698,513.00 TOTALS:$13,237,815.00 $10,055,500.00 $3,182,315.00 * ASSESSMENT AND MILL RATE ARE NOT EXACT, WHICH COULD LENGTHEN OR SHORTEN TIF LIFE* TOTAL REIMBURSEMENT CAN NOT EXCEED $10,055,500.00 LLCd Earth LLCd Earth LLCd Earth Red Earth, L.L.C. B) Financial Ability: We have discussed the potential TIF structure and scope of this project with multiple banks. Each bank has indicated a strong desire to be involved in this project. Due to our past success and strengths in the multi-family market we are confident that if the TIF is structured as indicated above (or a close variation) we will be able to start this project in a timely manner. In order for this project to be financially feasible, the TIF is required to help offset the extraordinary costs of development due to the poor soil conditions, including: over excavation and capping of contaminated burden, water table issues, geo-piers in lieu of conventional foundations, out of the ordinary techniques for sound proofing due to the rail spur. Without the Pay Go TIF, our proforma will not generate the cap rate needed for a bank to finance this project. 1. The owners of Red Earth LLC have a combined ownership in over $120 million dollars’ worth of income property. The managing entity is known as 3 Amigos Property Management. 2. All American Lumber Inc., which is a closely related firm has an annual revenue of over $33 million per year, has a book value of over $6 million, and a $4 million dollar line of credit. 3. Americon is a General Contractor and a division of All American Lumber, with annual sales of $10 -15 million dollars. C) Target Market: A majority of our new development projects are typically marketed to young professionals, small families, and people up to retirement age or over. Excerpts from the Oshkosh Market Study, Envisioning North Jackson, state that: “Many rental options appear to focus on households earning between $25,000 and $49,0000 per year. On the other hand, households earning more than $75,000 per year appear to be under- served by the housing market, an opportunity to fill a market-rate housing gap. With the addition of high-quality units in this market - above $200,000 for ownership options and above $1,500 per month for rental options – the study area may be able to absorb a share of Oshkosh’s housing demand. The question is whether an environment can evolve in the study area that is conducive to housing in these ranges.” In summary, we believe the Sawdust Apartment complex will help bridge this gap. The property will help the city retain a portion of the population which live in other communities and commute to Oshkosh for work. Our rents could vary between $1,100-$1,900/month depending on the location and size of the unit. D) Purchase Price: Due to the extraordinary costs to develop this site, we are requesting a purchase price of $1.00. Included with the purchase is the expectation the City continue developing the Riverwalk the length of the property. We would also request the city own, develop and maintain the parcel closest to the rail spur. In our site plan we suggest using this area for a city park that would not only serve residents of Sawdust Apartments but children and adults in the nearby neighborhood. In any project there are only so many dollars available. It should be frankly stated a purchase price of a dollar would spur development and maintain funds for the planned development. Funds for a land purchase would certainly have to be reallocated which would change the planned development. FINANCING PLAN LLCd Earth LLCd Earth LLCd Earth OUR ROLE IN SUPPORTING THE CITY OF OSHKOSH’S VISION: LLCd Earth LLCd Earth LLCd Earth “The team at Red Earth, LLC is confident that our 41 years of construction history combined with our 30 years of multi-family development and management will fulfill the vision of the City of Oshkosh. Our timeless designs, construction techniques, and use of quality building materials are steps we take to increase the value of our properties. Our proposal helps address some of the current challenges the City of Oshkosh identified in the Oshkosh Market Study. We believe our team of professionals is suited to develop, manage, and own the Sawdust Apartments for many decades to come. This project will reinvest in the success of downtown Oshkosh, increase the tax base and bring new residents into the city. We would like to thank the City of Oshkosh for the opportunity to submit a development proposal for the Sawdust District.” SUPPORTING THE VISION Jacob Buswell Site Project Coordinator The Early Name of the Fox River used by the Menominee Nation was Meskwahkiw-Sipiah, meaning “Red Earth River.”