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HomeMy WebLinkAbout27. 22-181 APRIL 26, 2022 22-181 RESOLUTION (CARRIED___7-0_____LOST________LAID OVER________WITHDRAWN________) PURPOSE: APPROVE TAX INCREMENT DISTRICT NO. 42 PROJECT PLAN; DESIGNATE TAX INCREMENT DISTRICT NO. 42 BOUNDARIES; CREATE TAX INCREMENT DISTRICT NO. 42 MORGAN CROSSING PHASE II INITIATED BY: CITY ADMINISTRATION PLAN COMMISSION RECOMMENDATION: Approved WHEREAS, the City of Oshkosh (the “City”) has determined that use of Tax Incremental Financing is required to promote development and redevelopment within the City; and WHEREAS, Tax Increment District No. 42 (the “District”) is proposed to be created by the City as a blighted area district in accordance with the provisions of Wisconsin Statutes Section 66.1105 (the "Tax Increment Law"); and WHEREAS, a Project Plan for the District has been prepared that includes: a. A statement listing the kind, number and location of all proposed public works or improvements within the District, or to the extent provided in Wisconsin Statutes Sections 66.1105(2)(k) and 66.1105(4)(gm), outside of the District; b. An economic feasibility study; c. A detailed list of estimated project costs; d. A description of the methods of financing all estimated project costs and the time when the related costs or monetary obligations are to be incurred; e. A map showing existing uses and conditions of real property in the District; f. A map showing proposed improvements and uses in the District; g. Proposed changes of zoning ordinances, master plan, map, building codes and City ordinances; h. A list of estimated non-project costs; i. A statement of the proposed plan for relocation of any persons to be displaced; j. A statement indicating how the District promotes the orderly development of the City; APRIL 26, 2022 22-181 RESOLUTION CONT’D k. An opinion of the City Attorney or of an attorney retained by the City advising that the plan is complete and complies with Wisconsin Statutes Section 66.1105(4)(f); and WHEREAS, prior to its publication, a copy of the notice of public hearing was sent to owners of all property in the proposed district, to the chief executive officers of Winnebago County, the Oshkosh Area School District, and the Fox Valley Technical College District, and any other entities having the power to levy taxes on property located within the District, in accordance with the procedures specified in the Tax Increment Law; and WHEREAS, in accordance with the procedures specified in the Tax Increment Law, the Plan Commission, on April 5, 2022 held a public hearing concerning the project plan and boundaries and proposed creation of the District, providing interested parties a reasonable opportunity to express their views thereon; and WHEREAS, after said public hearing, the Plan Commission designated the boundaries of the District, adopted the Project Plan, and recommended to the Common Council that it create such District and approve the Project Plan. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that: 1. The boundaries of the District shall be named "City of Oshkosh Tax Increment District No. 42, Morgan Crossing Phase II", are hereby established as specified in Exhibit A of this Resolution. 2. The District is created effective as of April 12, 2022. 3. The Common Council finds and declares that: (a) Not less than 50% by area of the real property within the District is in need of rehabilitation or conservation work within the meaning of Wisconsin Statutes Section 66.1337(2m)(a). (b) Based upon the findings, as stated in 3(a) above, the District is declared to be a District in need of rehabilitation or conservation based on the identification and classification of the property included within the District. (c) The improvement of such area is likely to enhance significantly the value of substantially all of the other real property in the District. APRIL 26, 2022 22-181 RESOLUTION CONT’D (d) The equalized value of the taxable property in the District plus the value increment of all other existing tax incremental districts within the City, does not exceed 12% of the total equalized value of taxable property within the City. (e) The City estimates that none of the territory within the District will be devoted to retail business at the end of the District’s maximum expenditure period, pursuant to Wisconsin Statutes Section 66.1105(5)(b). (f) The project costs relate directly to promoting rehabilitation or conservation of the area consistent with the purpose for which the District is created. (g) All property within TID No. 42 was within the City boundaries as of January 1, 2004. 4. The attached Project Plan for "City of Oshkosh Tax Increment District No. 42, Morgan Crossing Phase II" is hereby approved, and the City further finds the Plan is feasible and in conformity with the master plan of the City. BE IT FURTHER RESOLVED that the Common Council of the City of Oshkosh hereby approves creation of Tax Incremental Financing District No. 42 Morgan Crossing Phase II. “Exhibit A” TID 42 Morgan Crossing Phase II Legal Description LEGAL DESCRIPTION FOR TAX INCREMENT DISTRICT 42, MORGAN CROSSING PHASE II BEING ALL OF LOT 2 OF CERTIFIED SURVEY MAP NUMBER 7046 RECORDED AS DOCUMENT 1704343, WINNEBAGO COUNTY REGISTER OF DEEDS, LOCATED IN THE SOUTHEAST ¼ OF THE NORTHEAST ¼ OF SECTION 23, TOWNSHIP 18 NORTH, RANGE 16 EAST, CITY OF OSHKOSH, WINNEBAGO COUNTY, WISCONSIN, BOUNDED AND DESCRIBED AS FOLLOWS: COMMENCING FROM THE EAST ¼ CORNER OF SECTION 23, TOWNSHIP 18 NORTH, RANGE 16 EAST; THENCE N00°15’32”W, 170.01’ ALONG THE EAST LINE OF SAID SECTION 23 TO A POINT ON THE EXTENDED SOUTH LINE OF PEARL AVENUE; THENCE N52°00’58”W, 441.85 FEET ALONG SAID EXTENDED SOUTH LINE AND SOUTH LINE OF PEARL AVENUE TO A POINT ON THE NORTH LINE OF SAID LOT 2 OF CERTIFIED SURVEY MAP NUMBER 7046, ALSO BEING THE POINT OF BEGINNING; THENCE SOUTHERLY 39.44 FEET ALONG THE ARC OF A 25.00 FOOT RADIUS CURVE TO THE RIGHT HAVING A CHORD WHICH BEARS S06°49’17E, 35.48 FEET, WITH A LENGTH OF 35.48 FEET ALONG THE SOUTHERLY LINE OF PEARL AVENUE AND WEST LINE OF RIVERWAY DRIVE; THENCE S38°22’25”W, 199.54 FEET ALONG SAID WESTERLY LINE OF RIVERWAY DRIVE; THENCE SOUTHWESTERLY 37.68 FEET ALONG THE ARC OF A 25.00 FOOT RADIUS CURVE TO THE RIGHT HAVING A CHORD WHICH BEARS S81°32’59”W, 34.21 FEET TO A POINT ON THE SOUTH LINE OF SAID LOT 2 OF CERTIFIED SURVEY MAP 7046; THENCE NORTHWESTERLY 154.02 FEET ALONG THE ARC OF A 618.69 FOOT RADIUS CURVE TO THE LEFT HAVING A CHORD WHICH BEARS N62°24’22”W, 153.62 FEET ALONG SAID LOT 2 TO THE SOUTHWEST CORNER OF SAID LOT 2; THENCE N21°20’11”E, 108.11 FEET ALONG THE WEST LINE OF SAID LOT 2; THENCE N04°18’59”E, 185.00 FEET ALONG THE WEST LINE OF SAID LOT 2 TO NORTHWEST CORNER OF SAID LOT 2, ALSO BEING A POINT ON THE SOUTH LINE OF PEARL AVENUE; THENCE SOUTHEASTERLY 80.14 FEET ALONG THE ARC OF A 160.00 FOOT RADIUS CURVE TO THE RIGHT HAVING A CHORD WHICH BEARS S66°21’55”E, 79.31 FEET ALONG SAID SOUTH LINE; THENCE S52°00’58”E, 207.73 FEET ALONG SAID SOUTH LINE TO THE POINT OF BEGINNING. SAID AREA CONTAINS 61,490 SQUARE FEET OR 1.4120 ACRES, MORE OR LESS. City Hall, 215 Church Avenuenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us TO: Honorable Mayor and Members of the Common Council FROM: Mark Lyons, Planning Services Manager DATE: April 21, 2022 RE: Approve Tax Increment District No. 42 Project Plan; Designate Tax Increment District No. 42 Boundaries; Create Tax Increment District No. 42 Morgan Crossing Phase II BACKGROUND Tax Incremental District No. 42 (the “TID” or “District”) is a proposed 1.41 acre blight area district comprised of one parcel, the former industrial property. On May 11, 2021, the Common Council approved a General Development Plan and Specific Implementation Plan for a multi- family development for the property (Resolution 21-239). ANALYSIS The District is being created as a “blighted area” within the meaning of Wis. Stat. 66.1105(2)(ae). The parcel identified as a “blighted area” is shown on the Existing Conditions map on page 12 of the project plan. The subject property contains vacant land previously occupied by industrial uses. The proposed development scored 61 points on the City’s Blight and Redevelopment scoring matrix, exceeding the minimum 50 points required. The applicant is proposing to construct a 5-story 83-unit multi-family apartment building with a total of 118 bedrooms. The project density is approximately 59 units per acre. The site will consist of 97 total parking spaces, including 57 underground spaces and 40 surface spaces. The project plan includes a statement listing the kind, number and location of proposed improvements beginning on page 15. It also contains an economic feasibility study, a detailed list of estimated project costs, and timing of said costs as well as a method of financing beginning on page 24. The applicant anticipates that the district will be fully developed by 2023. The City is projecting an improvements value of approximately $10 million from redevelopment activity within the District. Based on the Municipal Revenue Obligation (MRO) of the development incentive identified on page 29 of the project plan, the district is expected to pay off costs by 2034, which constitutes 11 of the 27 statutorily allowed years. The estimated $10 million value of the property will be added back to the tax rolls at that time. City Hall, 215 Church Avenuenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us FISCAL IMPACT The City anticipates making total expenditures of approximately $2,467,000 for project plan costs which include an estimated $2,250,000 in “pay as you go” development incentives (principal and interest), an estimated $122,000 for public infrastructure, and an estimated $92,000 in administrative costs. The applicant’s overall investment in the project is approximately $16 million. RECOMMENDATION The Plan Commission recommended approval of the Tax Increment District No. 42 project plan and boundaries on April 5, 2022. Please see the attached staff report and meeting minutes for more information. Respectfully Submitted, Approved: Mark Lyons Mark A. Rohloff Planning Services Manager City Manager ITEM: PUBLIC HEARING: PROPOSED CREATION OF TAX INCREMENT FINANCING DISTRICT NO. 42 MORGAN CROSSING PHASE II DESIGNATION OF BOUNDARIES AND APPROVAL OF PROJECT PLAN Plan Commission meeting of April 5, 2022. Prior to taking action on proposed Tax Increment District (TID) No. 42 and the designation of boundaries for said TID, the Plan Commission is to hold a public hearing and take comments concerning proposed creation of TID No. 42. The public hearing is required as part of the formal review process the City must follow in the creation of any tax incremental financing district or amendment thereto. GENERAL INFORMATION Applicant / Owner: Morgan Crossing 2, LLC GENERAL DESCRIPTION/BACKGROUND Please see attached TID No. 42 Project Plan for more detailed information. Tax Incremental District No. 42 (the “TID” or “District”) is a proposed 1.41 acre Blight Area district comprising of the former industrial property. The proposed district is comprised of one parcel. The subject development was previously approved as part of a Planned Development per Council Resolution 21-239 on May 11, 2021. The City anticipates making total expenditures of approximately $2,467,000 to undertake projects identified in the Project Plan. Project costs include an estimated $2,250,000 in “pay as you go” development incentives, estimated $122,000 for public infrastructure and an estimated $92,000 in administrative costs. The Project Plan includes a statement listing the kind, number and location of proposed improvements which starts on page 15. It contains an economic feasibility study, a detailed list of estimated project costs and timing of those costs as well as a method of financing starting on page 24. ANALYSIS The City is projecting an improvements value of approximately $10 million will result from redevelopment activity within the District. The applicants overall investment in the project is approximately $16 million. These key assumptions are identified in Section 9 of the Plan starting on page 25. The “expected” improvements will occur on the parcel located in the district and may entail the following: Item V: Creation of TID #42 – Morgan Crossing Phase II Use The applicant is proposing to construct a 5-story 83-unit multi-family apartment building with a total of 118 bedrooms. The project density is approximately 59 units per acre. The site will consist of 97 total parking spaces, including 57 underground and 40 surface spaces. The plans for the development were approved by Common Council as part of Resolution 21-239 in May of 2021. Table 1 on page 26 shows the development assumptions when values will be added the site. The development assumption anticipate the district being fully develop by sometime in 2023. District Life Based on the Municipal Revenue Obligation (MRO) for the development incentive identified on Table 3 on Page 29 of the Plan, the district is anticipated to pay off costs by 2034 which constitutes 11 of the statutorily allowed 27 years. At that point the full value of the properties would be added back to the overall tax rolls which current estimate is $10 million. Type of District The District is being created as an area “blighted area” within the meaning of Wis. Stat. 66.1105(2)(ae) based an area which is predominantly open that consists of land upon which buildings or structures have been demolished. The parcel identified as “blighted area” is shown on the Existing Conditions map on page 12 of the Plan. The subject property contains vacant land previously occupied by industrial uses. The proposed development scored 61 points on the City’s Blight and Redevelopment scoring matrix, exceeding the minimum 50 points required. Consistency with Plans The property is zoned to Urban Mixed Use with a Planned Development Overlay (UMU-PD) which is consistent with recommendations with the Comprehensive Plan and previously approved by Common Council. RECOMMENDATIONS/CONDITIONS Staff recommends approval of the Project Plan and Boundaries for TID #42 as proposed. The Plan Commission recommended approval of the project plan and boundaries on April 5, 2022. The following is their discussion on the item. Site Inspections Report: Ms. Propp, Mr. Kiefer, Mr. Ford, Ms. Scheuermann, Mr. Bowen and Ms. Davey all reported visiting the site. Staff report accepted as part of the record. Tax Incremental District No. 42 (the “TID” or “District”) is a proposed 1.41 acre Blight Area district comprising of the former industrial property. The proposed district is comprised of Item V: Creation of TID #42 – Morgan Crossing Phase II one parcel. The subject development was previously approved as part of a Planned Development per Council Resolution 21-239 on May 11, 2021. Mr. Lyons presented the item and reviewed the site and surrounding area as well as the land use and zoning classifications in this area. The applicant is proposing to construct a 5-story 83- unit multi-family apartment building with a total of 118 bedrooms. The project density is approximately 59 units per acre. The site will consist of 97 total parking spaces, including 57 underground and 40 surface spaces. The plans for the development were approved by Common Council as part of Resolution 21-239 in May of 2021. Staff recommends approval with the findings and conditions as listed in the staff report. Mr. Perry opened up technical questions to staff. Ms. Propp asked if the other developments had their own TIFs. Ms. Nieforth said there was a TIF district for Merge development, the Lamico building had TIF financing as well when it was purchased for the Annex, and there were some TIF incentives along Marion Road. The 2.25 is going for the remediation of the site due to contamination. Mr. Perry asked if there were any public comments and asked if the applicant wanted to make any statements. Logan Jungbacker, Alexander & Bishop; 300 North Main St, said they are also seeking LEED certification on this building which will be the first private building besides the university. Mr. Bowen asked if there was any deviation from the SIP from 2021. Mr. Jungbacker said there will be no deviations from that plan. There were no other public comments on this item. There were no public comments on this item. Mr. Perry closed public comments and asked if the applicant wanted to make any closing statements. There were no closing statements from the applicant. Motion by Propp to adopt the findings and recommendation as stated in the staff report. Seconded by Bowen. Mr. Mitchell said there has been discussion on incentives regarding inclusion of affordable units in these developments. Part of the idea is that it can’t be done as a standard. Does this same standard apply when financial support is being provided. Item V: Creation of TID #42 – Morgan Crossing Phase II Ms. Nieforth said it would be entirely up to the council if they wanted to include those terms into the development agreement. These discussions have taken place where three or four units could serve LMI citizens. More TIF funding would have to be given to make the project feasible but that is up to council. Mr. Mitchell said there are other pots of funding available such as CDBG funds and this would be a great development to use those for since it does exclude a large portion of the population. Mr. Perry asked if there was any discussion on the motion. There was no discussion on the motion. Motion carried 9-0. The Plan Commission recommended approval of the project plan and recommended approval of the boundaries on April 5, 2022. The following is their discussion on the item. Site Inspections Report: Ms. Propp, Mr. Kiefer, Mr. Ford, Ms. Scheuermann, Mr. Bowen and Ms. Davey all reported visiting the site. Staff report accepted as part of the record. Tax Incremental District No. 42 (the “TID” or “District”) is a proposed 1.41 acre Blight Area district comprising of the former industrial property. The proposed district is comprised of one parcel. The subject development was previously approved as part of a Planned Development per Council Resolution 21-239 on May 11, 2021. Mr. Lyons presented the item and reviewed the site and surrounding area as well as the land use and zoning classifications in this area. The applicant is proposing to construct a 5-story 83- unit multi-family apartment building with a total of 118 bedrooms. The project density is approximately 59 units per acre. The site will consist of 97 total parking spaces, including 57 underground and 40 surface spaces. The plans for the development were approved by Common Council as part of Resolution 21-239 in May of 2021. Staff recommends approval with the findings and conditions as listed in the staff report. Mr. Perry opened up technical questions to staff. Ms. Propp asked if the other developments had their own TIFs. Ms. Nieforth said there was a TIF district for Merge development, the Lamico building had TIF financing as well when it was purchased for the Annex, and there were some TIF incentives along Marion Road. The 2.25 is going for the remediation of the site due to contamination. Mr. Perry asked if there were any public comments and asked if the applicant wanted to make any statements. Item V: Creation of TID #42 – Morgan Crossing Phase II Logan Jungbacker, Alexander & Bishop; 300 North Main St, said they are also seeking LEED certification on this building which will be the first private building besides the university. Mr. Bowen asked if there was any deviation from the SIP from 2021. Mr. Jungbacker said there will be no deviations from that plan. There were no other public comments on this item. There were no public comments on this item. Mr. Perry closed public comments and asked if the applicant wanted to make any closing statements. There were no closing statements from the applicant. Motion by Propp to approve the Project Plan and recommending the boundaries to the Council and adopting the staff report as the findings. Seconded by Bowen. Mr. Mitchell said there has been discussion on incentives regarding inclusion of affordable units in these developments. Part of the idea is that it can’t be done as a standard. Does this same standard apply when financial support is being provided. Ms. Nieforth said it would be entirely up to the council if they wanted to include those terms into the development agreement. These discussions have taken place where three or four units could serve LMI citizens. More TIF funding would have to be given to make the project feasible but that is up to council. Mr. Mitchell said there are other pots of funding available such as CDBG funds and this would be a great development to use those for since it does exclude a large portion of the population. Mr. Perry asked if there was any discussion on the motion. There was no discussion on the motion. Motion carried 9-0. 90 RIVERWAY LLC 90 RIVERWAY DR OSHKOSH WI 54901-3514 ANNEX 71 LLC 409 MASSACHUSETTS AVE 300 INDIANAPOLIS IN 46204-1554 ANTHEM LUXURY LIVING LLC 5160 EXPO DR MANITOWOC WI 54220-8332 AURORA MEDICAL GROUP INC PO BOX 341880 MILWAUKEE WI 53234-1880 BRIO BUILDING LLC 604 CLAY ST CEDAR FALLS IA 50613-2904 CITY OF OSHKOSH PO BOX 1130 OSHKOSH WI 54903-1130 D & F INVESTMENTS LLP 601 OREGON ST OSHKOSH WI 54902-5965 GOLD STAR INVESTMENTS LLC PO BOX 2811 OSHKOSH WI 54903-2811 LRN LLC 3807 STATE ROAD 21 A OSHKOSH WI 54904-9323 MACKSON CORNERS WATERFRONT LLC 604 CLAY ST CEDAR FALLS IA 50613-2904 MERCURY MARINE PO BOX 1939 FOND DU LAC WI 54936-1939 MORGAN CROSSING 2 LLC 300 N MAIN ST 300 OSHKOSH WI 54901-4817 MORGAN DAWES LLC 300 N MAIN ST 300 OSHKOSH WI 54901-4817 NEENAH MINIMART LLC 1720 NORTH ST NEENAH WI 54956-1818 PARCEL F LLC PO BOX 1099 OSHKOSH WI 54903-1099 REDEVELOPMENT AUTH CITY OF OSHKOSH PO BOX 1130 OSHKOSH WI 54903-1130 RIVER FRONT SENIOR APARTMENTS LLC 230 OHIO ST STE 200 OSHKOSH WI 54902-5825 SALVATION ARMY 11315 W WATERTOWN PLANK RD MILWAUKEE WI 53226-3412 SANDYS OF OSHKOSH INC 2100 S KOELLER ST OSHKOSH WI 54902-9202 ST PETERS CONG 449 HIGH AVE OSHKOSH WI 54901-4708 THE RIVERS PHASE II OSHKOSH LLC 230 OHIO ST 200 OSHKOSH WI 54902-5825 THE SALVATION ARMY PO BOX 233 OSHKOSH WI 54903-233 HIGH AV HIGH AV PPEEAARRLLAAVVDDAAWWEESSSSTT RIVERWAY DRRIVERWAY DRCAMPUS PL CAMPUS PL MARION RD MARION RD C:\Users\Public\Desktop\2020 Plan Commission Site Plan Map Template.mxd User: hannahs Prepared by: City of Oshkosh, WI Printing Date: 4/6/2021 1 in = 120 ft1 in = 0.02 mi¯0 PEARL AVE0 PEARL AVE City of Oshkosh maps and data are intended to be used for general identification purposes only, andthe City of Oshkosh assumes no liability for the accuracy of the information. Those using theinformation are responsible for verifying accuracy. For full disclaimer please go towww.ci.oshkosh.wi.us/GISdisclaimer I I-PD TR-10-PD CMUUMU-PD RMU-PD-RFO UMU I-PD-UTO I-UTO CMU-RFO TR-10 UMU I-PD IMR-36-UTO RMU-PD-RFO CMU UI-RFO UMU-PD-UTO I I-PD RMU-PD CMU I-PDI-PD UMU-PD MR-36 RMU UMU-UTO I-PD UMU I I-PD-RFO I-PD-RFO UMU UMU-UTO I-RFO CMU-PD CMU-PD-RFO I-PD-RFO RMU CMU-PD RMU-PD UMU I-PD UMU I-PD RMU-PD UMU-PD-UTO CMU UMU-UTO TR-10PDUTO TR-10PDUTO RMU-PD RMU-RFO TR-10PDUTO I-PD HIGH AV HIGH AV N MAIN STN MAIN STJACKSON STJACKSON STALGOMA BLVD ALGOMA BLVDWISCONSIN STWISCONSIN STOREGON STOREGON STPPEEAARRLLAAVVDDIIVVIISSIIOONNSSTTCHURCH AV CHURCH AV MMAARRIIOONNRRDD W 5TH AVW 5TH AV IDA AVIDA AV DAWES STDAWES STFRANKLIN STFRANKLIN STOSCEOLA STOSCEOLA STW 4TH AVW 4TH AV CENTRAL STCENTRAL STMMIICCHHIIGGAANNSSTTFREDERICK STFREDERICK STW PARKWAY AVW PARKWAY AV CAMPUS PL CAMPUS PL UNION AVUNION AV COMMERCE STCOMMERCE STMULTIPLE RMU-PD TR-10PDUTO C:\Users\Public\Desktop\2020 Plan Commission Site Plan Map Template.mxd User: hannahs Prepared by: City of Oshkosh, WI Printing Date: 4/6/2021 1 in = 500 ft1 in = 0.09 mi¯0 PEARL AVE0 PEARL AVE City of Oshkosh maps and data are intended to be used for general identification purposes only, andthe City of Oshkosh assumes no liability for the accuracy of the information. Those using theinformation are responsible for verifying accuracy. For full disclaimer please go towww.ci.oshkosh.wi.us/GISdisclaimer C:\Users\Public\Desktop\2020 Plan Commission Site Plan Map Template.mxd User: hannahs Prepared by: City of Oshkosh, WI Printing Date: 4/6/2021 1 in = 100 ft1 in = 0.02 mi¯0 PEARL AVE0 PEARL AVE City of Oshkosh maps and data are intended to be used for general identification purposes only, andthe City of Oshkosh assumes no liability for the accuracy of the information. Those using theinformation are responsible for verifying accuracy. For full disclaimer please go towww.ci.oshkosh.wi.us/GISdisclaimer         City of Oshkosh, Wisconsin Organizational Joint Review Board Meeting Held: Scheduled for April 1, 2022 Public Hearing Held: Scheduled for April 5, 2022 Approval by Plan Commission: Scheduled for April 5, 2022 Adoption by Common Council: Scheduled for April 26, 2022 Approval by the Joint Review Board: TBD April 5, 2022 Project Plan Tax Incremental District No. 42 Morgan Crossing Phase II   Tax Incremental District No. 42 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 ............................................................................................................................. 14 Statement Listing the Kind, Number and Location of All Proposed Public Works or Improvements Within the District ..................................................................................................... 15 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. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 3    SECTION 1: Executive Summary Description of District Tax Incremental District (“TID”) No. 42 (“District”) is a proposed 1.41-acre Blighted Area district consisting of tax parcel 01-02440-200 located at the southwest corner of Pearl Avenue and Riverway Drive. The District will be created to pay the costs of development incentives, public infrastructure and other related costs needed to facilitate construction of a 5-story 83-unit multi- family building (“Project”) to be developed by Morgan Crossing 2, LLC (“Developer”). In addition to the incremental property value that will be created, the City expects the Project will result in the provision of housing units geared towards young professionals, University of Wisconsin – Oshkosh staff, co-living, and senior living residents. The Project will also result in the creation of interim construction jobs, and an estimated five new permanent jobs related to the operation of the Project. 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 $2,467,000 (“Project Costs”) to undertake the projects listed in this Project Plan (“Plan”). Project Costs includes $2,250,000 in development incentives, $122,000 for public infrastructure, $2,678 in interest expense related to projected advances, and $92,060 for District administrative costs related to its creation and ongoing administration. Incremental Valuation The City projects that new land and improvements value of approximately $10 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 sufficient tax increment to pay all Project Costs within 13 of its allowable 27 years, representing 11 years of actual tax increment collection. Tax Incremental District No. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 4    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 review undertaken by Ehlers in 2020 of the original Project’s sources and uses, and cash flow proforma. (The originally proposed Project consisted of a 4-story 74-unit multi-family building). Due to costs associated with environmental remediation and provision of underground parking, the Project’s projected returns on investment over 10 years without TIF assistance were negative. The Developer initially requested that the City provide incentive payments on a pay as you go basis with a future value of $1,850,000. With this level of TIF assistance, cash on cash returns reached only 2% by the third year of operations, and 6% in year ten with an adjusted internal rate of return slightly less than breakeven. The Developer subsequently paused the Project due to issues related to utilities and in 2022 submitted a revised assistance request for $2,250,000 in future value incentive payments based on further increases in cost. The size of the Project was also increased to a 5-story building with a total of 83-units. Based on Ehlers original review, provision of pay as you go incentives in the amount requested was necessary to provide an acceptable return on investment for this Developer and indicated that “but for” the incentives, the project would not likely proceed. Given the additional costs now associated with the Project, the City concludes that the “but for” test continues to be met. 2. The economic benefits of the District, as measured by increased employment, business and personal income, and property value, are 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 development of a blighted area, remediation of contaminated soils, 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 Tax Incremental District No. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 5    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 a blighted area as defined by Wis. Stat. § 66.1105(2)(ae)1. 5. Based on the foregoing finding, the District is designated as a blighted area district. 6. The Project Costs relate directly to the elimination of blight in 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 none 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. 42 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. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 7    Tax Incremental District No. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 8    Tax Incremental District No. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 9    Tax Incremental District No. 42 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. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 11    Tax Incremental District No. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 12    Tax Incremental District No. 42 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: 01-0244-02-00 Address: 0 Pearl Avenue Owner: Morgan Crossing 2 LLC The parcel is also presently located within the City’s Tax Incremental Districts No. 13 and No. 21. The parcel is a “blighted area” as defined in Wis. Stat. § 66.1105(2)(ae), as an area which is predominantly open that consists of land upon which buildings or structures have been demolished and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of the community. In its current state, development of the property has not occurred as the land contains soil contamination resulting from prior uses. Developer, working with an environmental engineering consultant, has prepared a plan to remove or cap all contaminated soils on the site. Costs associated with this remediation have resulted in the property not developing under normal market conditions, substantially impairing and arresting the sound growth of the community, rendering the parcel blighted. Details regarding the environmental conditions at the site are described within Phase I and Phase II Environmental Site Assessments, and within a Remedial Action Plan prepared for the site. These reports are on file with the City and further support the finding that the site is a blighted area. Tax Incremental District No. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 14    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 $258,409,200. This value is less than the maximum of $578,533,500 in equalized value that is permitted for the City. Tax Incremental District No. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 15    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. With all Project Costs, 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. Property, Right-of-Way and Easement Acquisition Acquisition of Rights-of-Way The City may need to acquire property to allow for installation of streets, driveways, sidewalks, utilities, stormwater management practices and other public infrastructure. Costs incurred by the City to identify, negotiate and acquire rights-of-way are eligible Project Costs. Acquisition of Easements The City may need to acquire temporary or permanent easements to allow for installation and maintenance of streets, driveways, sidewalks, utilities, stormwater management practices and other public infrastructure. Costs Tax Incremental District No. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 16    incurred by the City to identify, negotiate and acquire easement rights are eligible Project Costs. Relocation Costs If relocation expenses are incurred in conjunction with the acquisition of property, those expenses are eligible Project Costs. These costs may include but are not limited to preparation of a relocation plan; allocations of staff time; legal fees; publication of notices; obtaining appraisals; and payment of relocation benefits as required by Wis. Stat. Chapter 32 and Wis. Admin. Code ADM 92. Site Preparation Activities Environmental Audits and Remediation If it becomes necessary to evaluate any land or improvement within the District, any cost incurred by the City related to environmental audits, testing, and remediation are eligible Project Costs. 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. Tax Incremental District No. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 17    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. 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. Tax Incremental District No. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 18    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. 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. Tax Incremental District No. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 19    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. 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 make the following project cost expenditures outside the District: installation of cul-de-sacs at the present terminations of Dawes Street and Riverway Drive. 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. Tax Incremental District No. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 20    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. 42 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. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 22    Tax Incremental District No. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 23    Tax Incremental District No. 42 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. 42 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 $10 million in incremental value by January 1, 2024. Estimated valuations and timing for construction of the Project are included in Table 1. Assuming the City’s current equalized TID Interim tax rate of $24.41 per thousand of equalized value, and no economic appreciation or depreciation, the Project would generate $6,383,007 in incremental tax revenue over the 27-year term of the District as shown in Table 2. Tax Incremental District No. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 26    Table 1 – Development Assumptions Tax Incremental District No. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 27    Table 2 – Tax Increment Projection Worksheet Tax Incremental District No. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 28    Financing and Implementation The City anticipates making total expenditures of approximately $2,467,000 including $2,250,000 in development incentives, $122,000 for public infrastructure, $2,678 in interest expense related to projected advances, and $92,060 for District administrative costs related to its creation and ongoing administration. Development incentive payments will be paid from tax increments as they are collected on a “pay as you go” basis. Infrastructure improvements will also be paid from cash as it is available. 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 2034, reflecting 11 years of tax increment collections, and 13 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.  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 none 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 Urban Mixed Use with a Planned Development overlay (UMU- 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 multi-family 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. 42 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 eliminating blighted areas, providing necessary public infrastructure improvements 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 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. 42 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. Installation of the cul-de-sac on Dawes Street may provide benefit to areas outside the District. The current estimate of that benefit is $30,500, which is a Non-Project Cost. The total cost of the Dawes Street cul-de-sac is included in this Plan as the City will make a final determination of the benefits to areas outside the District at the time the cul-de-sac is completed, and the allocation may vary. Tax Incremental District No. 42 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. 42 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 34    Tax Incremental District No. 42 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.