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HomeMy WebLinkAbout07.26.2022 TIF 43 Project Plan    August 2, 2022 PROJECT PLAN City of Oshkosh, Wisconsin Tax Incremental District No. 43 Mill on Main Prepared by: Ehlers N21W23350 Ridgeview Parkway West, Suite 100 Waukesha, WI 53188   BUILDING COMMUNITIES. IT’S WHAT WE DO. Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 2  KEY DATES Organizational Joint Review Board Meeting Held: Scheduled for July 26, 2022 Public Hearing Held: Scheduled for August 2, 2022 Approval by Plan Commission: Scheduled for August 2, 2022 Adoption by Common Council: Scheduled for August 23, 2022 Approval by the Joint Review Board: TBD TABLE OF CONTENTS   Executive Summary.................................................................................................................................. 3 Preliminary Map of Proposed District Boundary .......................................................................... 6 Map Showing Existing Uses and Conditions ................................................................................... 9 Preliminary Parcel List and Analysis .................................................................................................. 11 Equalized Value Test ............................................................................................................................. 14 Statement Listing the Kind, Number and Location of All Proposed Public Works or Improvements Within the District ..................................................................................................... 15 Map Showing Proposed Improvements and Uses ....................................................................... 21 Detailed List of Estimated Project Costs ....................................................................................... 23 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 ...................................................................................................................................................... 24 Annexed Property .................................................................................................................................. 29 Estimate of Property to Be Devoted to Retail Business ......................................................... 29 Proposed Changes of Zoning Ordinances, Master Plan, Map, Building Codes and City Ordinances ................................................................................................................................................ 29 Statement of the Proposed Method for the Relocation of any Persons to be Displaced ....................................................................................................................................................................... 30 How Creation of the Tax Incremental District Promotes the Orderly Development of the City ....................................................................................................................................................... 30 List of Estimated Non-Project Costs ................................................................................................ 31 Legal Opinion Advising Whether the Plan is Complete and Complies with Wis. Stat. § 66.1105(4)(f) .............................................................................................................................................. 32 Calculation of the Share of Projected Tax Increments Estimated to be Paid by the Owners of Property in the Overlying Taxing Jurisdictions .................................................... 34   Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 3  SECTION 1: Executive Summary DESCRIPTION OF DISTRICT Tax Incremental District (“TID”) No. 43 (“District”) is a proposed 13.45-acre Blighted Area District located on the Fox River generally east of S. Main Street, north of E. 10th Avenue and west of Pioneer Drive in the Sawdust District. The District will be created to pay the costs of development incentives and public infrastructure to permit a mixed-use redevelopment project with 291-multi- family apartment units and 21,800 square feet of commercial space (“Project”) to be developed by The Mill on Main, LLC (“Developer”). The Project will include construction of a private clubhouse, pickleball courts, an amphitheater, Riverwalk connection and other amenities. Property in the District was previously identified for redevelopment in the 2003 South Shore Redevelopment Area Project Plan and the 2020 Sawdust District Master Plan. AUTHORITY The City is creating the District under the provisions of Wis. Stat. § 66.1105. ESTIMATED TOTAL PROJECT COST EXPENDITURES The City anticipates making total expenditures of approximately $28.9 million (“Project Costs”) to undertake the projects listed in this Project Plan (“Plan”). Project Costs include an estimated $20.07 million in “pay as you go” development incentives that provide the Developer a present value of $10.07 million to be used to pay for portions of the Project. The City also expects to incur $210,000 for administrative expense related to creation and administration of the District. To the extent funds are available the City also plans to pay the cost of certain public infrastructure projects that are required for or that will benefit the Project. These include $250,000 for underground utilities, $500,000 for environmental remediation, $500,000 for a trailhead parking lot, $2 million for improvements to South Main Street and $1.2 million for public docks. If the City issues debt to pay these costs, District funds may be used to pay interest on long-term debt and associated financing costs. In addition to the public infrastructure projects, the City may also utilize District funds to recover costs it has incurred related to the acquisition of the development site which will be sold to Developer for consideration that is less than the City’s cost to acquire and carry. The Plan identifies $4.23 million as potentially available. The City’s total costs to acquire and hold the site were approximately $4.5 million. Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 4  INCREMENTAL VALUATION The City projects that new land and improvements value of approximately $47.8 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 need to remain open through its allowable 27 year maximum life. 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 considered a review of each phase of the Project’s sources and uses, and cash flow proformas. Phase I of the Project projected a cumulative cash-on-cash return of 5.3% over 22 years without TIF assistance, phase II projected a cumulative cash-on-cash return of 4.8% over 18 years without TIF assistance, and phase III projected a cumulative cash-on-cash return of 4.8% over 20 years without TIF assistance. Ehlers is recommending that the City provide incentive payments on a pay as you go basis with an estimated present value of $10.07 million. (Projected future value payments of $20.07 million). Provision of the requested assistance would improve each phase of the Project’s return on investment to 10.3% for phase I, 10.3% for phase II, and 9.4% for phase III. Projects of this type typically need to provide a cumulative cash-on-cash return in the range of 9% to 11% to attract the necessary capital investment. Based on Ehlers review, provision of pay as you go incentives in the amount requested is necessary to provide an acceptable return on investment and indicates that “but for” the incentives, the project would not likely proceed. Additionally, implementation of the Plan will require that the City make a substantial investment to provide the necessary public infrastructure. Absent the use of tax incremental financing, the City is unable to fully fund this program of infrastructure improvements. Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 5  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 addition to increased property value the Project will provide housing, employment and commercial opportunities while accomplishing specific redevelopment and blight elimination objectives identified in the City’s Sawdust District Master Plan and the City of Oshkosh Strategic Plan. 3. The benefits of the proposal outweigh the anticipated tax increments to be paid by the owners of property in the overlying taxing jurisdictions. As required by Wis. Stat. § 66.1105(4)(i)4., a calculation of the share of projected tax increments estimated to be paid by the owners of property in the overlying taxing jurisdictions has been prepared and can be found in this Plan. However, because the Project would not occur without the use of tax incremental financing, these tax increments would not be paid but for creation of the District. Accordingly, the City finds that the benefits expected to be realized as set forth in this Plan outweigh the value of the tax increments to be invested in the Project. 4. 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 less than 35% of the territory within the District will be devoted to retail business at the end of the District’s maximum expenditure period, pursuant to Wis. Stat. § 66.1105(5)(b). 10. That there are no parcels to be included within the District that were annexed by the City within the preceding three-year period. 11. The Plan for the District is feasible and is in conformity with the Master Plan of the City. Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 6  SECTION 2: Preliminary Maps of Proposed District Boundary Map Found on Following Page. Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 7  Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 8  Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 9  SECTION 3: Map Showing Existing Uses and Conditions Map Found on Following Page. Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 10  Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 11  SECTION 4: Preliminary Parcel List and Analysis The table below identifies the parcels to be included in the District. The figures listed under the “Current Value” column reflect assessed valuations as of January 1, 2022 converted to equalized value using the January 1, 2021 assessment ratio of 92.87%. MAP ID TAX ID ADDRESS OWNER VALUE TID 20 1 90301330100 500 S MAIN ST CITY OF OSHKOSH $ - YES 2 90301350000 0 PIONEER DR CITY OF OSHKOSH $ - YES 3 90301330600 0 PIONEER DR REDEVELOPMENT AUTH CITY OF OSHKOSH $ - YES 4 90301330500 0 E 7TH AVE REDEVELOPMENT AUTH CITY OF OSHKOSH $ - YES 5 90301330400 0 PIONEER DR REDEVELOPMENT AUTH CITY OF OSHKOSH $ - YES 6 90301390100 43 E 7TH AVE REDEVELOPMENT AUTH CITY OF OSHKOSH $ - YES 7 90301380000 706 S MAIN ST REDEVELOPMENT AUTH CITY OF OSHKOSH $ - YES 8 90301420000 710 S MAIN ST REDEVELOPMENT AUTH CITY OF OSHKOSH $ - YES 9 90301490000 716 S MAIN ST REDEVELOPMENT AUTH CITY OF OSHKOSH $ - YES 10 90301550100 0 E 8TH AVE REDEVELOPMENT AUTH CITY OF OSHKOSH $ - YES 11 90306110000 0 PIONEER DR REDEVELOPMENT AUTH CITY OF OSHKOSH $ - NO 12 90306110100 0 PIONEER DR FOX VALLEY & WESTERN LTD $ - NO 13 90302110000 0 E 9TH AVE WIS PUBLIC SERVICE CORP $ - YES 14 90301330300 0 PIONEER DR FOX VALLEY & WESTERN LTD $ - YES 15 90301340000 0 E 9TH AVE BERGSTROM CORP $ 6,400 YES TOTAL ESTIMATED BASE VALUE $ 6,400 Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 12  All but two of the parcels are also located in Tax Incremental District No. 20 (“TID No. 20”). As of January 1, 2022, a “frozen overlap value” will be assigned to the parcels located in TID No. 20. Any change in value on the overlapped parcels occurring after January 1, 2022 will be reflected in the new District. On August 26, 2003 the Common Council approved the South Shore Redevelopment Area Project Plan (“2003 Redevelopment Plan”) under Wis. § Stat. 66.1331 to promote redevelopment in an area that includes the territory to be included in the District. The 2003 Redevelopment Plan identified the following blighting influences as being present in the redevelopment area: There is a predominance of properties in the area that are underutilized, functionally obsolete, in need of repair, nonconforming, or that otherwise contribute to the blighted conditions of the area and/or impair or arrest the sound growth of the community. There are also a number of incompatible land uses in the district with little or no buffering or screening between these lesser and more intense land uses. This area originally developed primarily for manufacturing purposes and provided area residents an ability to easily walk to work. However, with transportation improvements, vacancy of existing industrial uses as well as automated improvements within the manufacturing industries themselves, the structures have become functionally obsolete to some extent and no longer rely on adjacent residential uses for their main labor supply. All territory to be included in the District was identified as blighted on the map included on p.13 of the 2003 Redevelopment Plan. Since adoption of the 2003 Redevelopment Plan the City has undertaken redevelopment activities to include acquisition of land and removal of obsolete structures. Platting remains obsolete, site improvements have deteriorated, and some parcels will require environmental remediation. As such, all territory to be included in the District remains a blighted area as defined in Wis. Stat. § 66.1105(2)(ae). More specifically, the territory in the District is: “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.” The table on the following page identifies specific blighting conditions residential on each parcel to be included in the District. Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 13  MAP ID TAX ID ADDRESS ACRES BLIGHT ACRES BLIGHTING CONDITIONS 1 90301330100 500 S MAIN ST 0.09 0.09 Obsolete platting impairs development. 2 90301350000 0 PIONEER DR 1.67 1.67 Obsolete platting impairs development. 3 90301330600 0 PIONEER DR 0.07 0.07 Environmental contamination. 4 90301330500 0 E 7TH AVE 2.77 2.77 Environmental contamination. 5 90301330400 0 PIONEER DR 1.76 1.76 Environmental contamination. 6 90301390100 43 E 7TH AVE 1.51 1.51 Razed site, environmental contamination (Phase I ESA) 7 90301380000 706 S MAIN ST 0.63 0.63 Razed site. 8 90301420000 710 S MAIN ST 0.15 0.15 Razed site. 9 90301490000 716 S MAIN ST 0.05 0.05 Razed site. 10 90301550100 0 E 8TH AVE 2.59 2.59 Razed site, environmental contamination (Phase I ESA) 11 90306110000 0 PIONEER DR 0.25 0.25 Obsolete platting impairs development. 12 90306110100 0 PIONEER DR 0.18 0.18 Obsolete platting impairs development. 13 90302110000 0 E 9TH AVE 0.25 0.25 Obsolete platting impairs development. 14 90301330300 0 PIONEER DR 1.28 1.28 Obsolete platting impairs development. 15 90301340000 0 E 9TH AVE 0.20 0.20 Obsolete platting impairs development. TOTAL 13.45 13.45 100% Tax Incremental District No. 43 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 value of those parcels located within Tax Incremental District No. 43 that will be overlapped are not included in the base value of the District as that value is reflected within the total of existing incremental value. The equalized value of the increment of existing tax incremental districts within the City, plus the overlap adjusted base value of the proposed District, totals $258,409,200. This value is less than the maximum $578,533,500 in equalized value that is permitted for the City. Tax Incremental District No. 43 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 obligations 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 Real Property Assembly Costs If costs previously incurred by the City to acquire property and make it suitable for development exceed the revenues or other consideration received from the sale or lease of that property, the net amount shall be considered “real property assembly costs” as defined in Wis. Stat. § 66.1105(2)(f)1.c., and subject to recovery as an eligible Project Cost. Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 16  Property Acquisition for Conservancy To promote the objectives of this Plan, the City may acquire property within the District that it will designate for conservancy. These conservancy objectives include preserving historic resources or sensitive natural features; protection of scenic and historic views; maintaining habitat for wildlife; maintaining adequate open space; reduction of erosion and sedimentation by preserving existing vegetation; and providing adequate areas for management of stormwater. The cost of property acquired for conservancy, and any costs associated with the transaction, are eligible Project Costs. 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 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. Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 17  Demolition To make sites suitable for development, the City may incur costs related to demolition and removal of structures or other land improvements, to include abandonment of wells or other existing utility services. Site Grading Land within the District may require grading to make it suitable for development, to provide access, and to control stormwater runoff. The City may need to remove and dispose of excess material or bring in fill material to provide for proper site elevations. Expenses incurred by the City for site grading 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. 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 Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 18  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 riverbanks; and infiltration, filtration, and detention Best Management Practices (BMP’s). To the extent stormwater management system projects undertaken within the District provide direct benefit to land outside of the District, the City will make an allocation of costs based on such benefit. Those costs corresponding to the benefit allocated to land within the District, and necessitated by the implementation of the Project Plan, are eligible Project Costs. Implementation of the Project Plan may also require that the City construct, alter, rebuild, or expand stormwater management infrastructure located outside of the District. That portion of the costs of stormwater management system projects undertaken outside the District which are necessitated by the implementation of the Project Plan are eligible Project Costs. Electric Service To create sites suitable for development, the City may incur costs to provide, relocate or upgrade electric services. Relocation may require abandonment and removal of existing poles or towers, installation of new poles or towers, or burying of overhead electric lines. Costs incurred by the City to undertake this work are eligible Project Costs. Gas Service To create sites suitable for development, the City may incur costs to provide, relocate or upgrade gas mains and services. Costs incurred by the City to undertake this work are eligible Project Costs. Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 19  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. Community Development Cash Grants (Development Incentives) The City may enter into agreements with property owners, lessees, or developers of land located within the District for sharing costs to encourage the desired kind of improvements and assure tax base is generated sufficient to recover Project Costs. No cash grants will be provided until the City executes a developer agreement with the recipient of the cash grant. Any payments of cash grants made by the City are eligible Project Costs. Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 20  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 public docks and costs for related shoreline work along the City owned Riverwalk, which is outside of, but immediately adjacent to, the District’s boundary.  Improvements to S. Main Street, portions of which are outside of or form the boundaries of the District. Professional Service and Organizational Costs The costs of professional services rendered, and other costs incurred, in relation to the creation, administration and termination of the District, and the undertaking of the projects contained within this Plan, are eligible Project Costs. Professional services include but are not limited to architectural; environmental; planning; engineering; legal; audit; financial; and the costs of informing the public with respect to the creation of the District and the implementation of the Plan. Administrative Costs The City may charge to the District as eligible Project Costs reasonable allocations of administrative costs, including, but not limited to, employee salaries. Costs allocated will bear a direct connection to the time spent by City employees relating to the implementation of the Plan. Financing Costs Interest expense, debt issuance expenses, redemption premiums, and any other fees and costs incurred in conjunction with obtaining financing for projects undertaken under this Plan are eligible Project Costs. Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 21  SECTION 7: Map Showing Proposed Improvements and Uses Map Found on Following Page. Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 22  Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 23  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. Project Costs identified as Contingent Expenditures will be funded by the District to the extent that there is tax increment available. Other sources of funding may be required to pay the cost of these projects if tax increment is insufficient. Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 24  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 $47.8 million in incremental value by January 1, 2028. 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 approximately $28.96 million in incremental tax revenue over the 27-year term of the District as shown in Table 2. Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 25  Table 1 – Development Assumptions Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 26  Table 2 – Tax Increment Projection Worksheet Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 27  Financing and Implementation Incentives will be paid to Developer on a “pay as you basis” from the tax increments generated by the Project. The incentives are a limited obligation of the City and will be paid only to the extent tax increments are available. The City will not appropriate funds from any other sources to make incentive payments. Each of the three Project phases will have a separate incentive as identified on the table below, and Developer must complete all phases to receive the full incentive amount. A total of 90% of the tax increment generated by the District will be allocated to make incentive payments. Payments Present Value @ 5.25% Phase I $8,343,364 $4,270,000 Phase II $5,918,496 $3,140,000 Phase III $5,806,107 $2,660,000 Total $20,067,966 $10,070,000 Remaining tax increment collected will be used to pay administrative costs of the District, at to the extent available, to pay for the public improvements identified in this Plan that the City will finance. As needed, the City will issue debt or make advances from other City funds to pay these costs. To the extent debt is incurred, tax increment will be used to pay the debt service. To the extent possible the City will cash fund projects to avoid the interest expense associated with financing. Aside from the public improvements identified in the Plan, the City plans to utilize tax increment to recover the cost of the Redevelopment Authority (“RDA”) owned land that will be sold to Developer for consideration that is less than the cost the RDA incurred to acquire and hold the land. Based on the Project Cost expenditures as included within the cash flow exhibit (Table 3), the District is expected to remain open for all of its permitted 27- year maximum life. 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. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 28  Table 3 – Cash Flow City of Oshkosh, WI Tax Increment District #43 (Mill on Main) Cash Flow Projection Phase I @Phase II @Phase III @ 90% 90% 90% of Increment of Increment of Increment Year 2022 0 0 0 0 0 25,000 25,000 (25,000) (25,000)02022 2023 0 0 0 0 0 5,000 5,000 (5,000) (30,000)8,343,364 2023 2024 110,362 110,362 99,326 0 0 5,100 104,426 5,936 (24,064)14,162,534 2024 2025 427,793 427,793 297,977 87,037 0 13,514 5,202 403,730 24,064 0 13,777,520 2025 2026 731,570 731,570 397,303 261,110 0 67,851 5,306 731,570 0 0 18,925,213 2026 2027 913,162 913,162 397,303 348,147 76,396 85,904 5,412 913,162 0 0 18,103,367 2027 2028 1,082,931 1,082,931 397,303 348,147 229,188 102,773 5,520 1,082,931 0 0 17,128,729 2028 2029 1,167,816 1,167,816 397,303 348,147 305,585 111,151 5,631 1,167,816 0 0 16,077,695 2029 2030 1,167,816 1,167,816 397,303 348,147 305,585 111,038 5,743 1,167,816 0 0 15,026,660 2030 2031 1,167,816 1,167,816 397,303 348,147 305,585 110,923 5,858 1,167,816 0 0 13,975,626 2031 2032 1,167,816 1,167,816 397,303 348,147 305,585 110,806 5,975 1,167,816 0 0 12,924,591 2032 2033 1,167,816 1,167,816 397,303 348,147 305,585 110,687 6,095 1,167,816 0 0 11,873,557 2033 2034 1,167,816 1,167,816 397,303 348,147 305,585 110,565 6,217 1,167,816 0 0 10,822,523 2034 2035 1,167,816 1,167,816 397,303 348,147 305,585 110,440 6,341 1,167,816 0 0 9,771,488 2035 2036 1,167,816 1,167,816 397,303 348,147 305,585 110,314 6,468 1,167,816 0 0 8,720,454 2036 2037 1,167,816 1,167,816 397,303 348,147 305,585 110,184 6,597 1,167,816 0 0 7,669,419 2037 2038 1,167,816 1,167,816 397,303 348,147 305,585 110,052 6,729 1,167,816 0 0 6,618,385 2038 2039 1,167,816 1,167,816 397,303 348,147 305,585 109,918 6,864 1,167,816 0 0 5,567,351 2039 2040 1,167,816 1,167,816 397,303 348,147 305,585 109,780 7,001 1,167,816 0 0 4,516,316 2040 2041 1,167,816 1,167,816 397,303 348,147 305,585 109,640 7,141 1,167,816 0 0 3,465,282 2041 2042 1,167,816 1,167,816 397,303 348,147 305,585 109,498 7,284 1,167,816 0 0 2,414,247 2042 2043 1,167,816 1,167,816 397,303 305,585 457,499 7,430 1,167,816 0 0 1,711,360 2043 2044 1,167,816 1,167,816 397,303 305,585 457,350 7,578 1,167,816 0 0 1,008,472 2044 2045 1,167,816 1,167,816 397,303 305,585 457,199 7,730 1,167,816 0 0 305,585 2045 2046 1,167,816 1,167,816 305,585 854,347 7,884 1,167,816 0002046 2047 1,167,816 1,167,816 1,159,774 8,042 1,167,816 0002047 2048 1,167,816 1,167,816 1,159,613 8,203 1,167,816 0002048 2049 1,167,816 1,167,816 1,159,449 8,367 1,167,816 0002049 2050 1,167,816 1,167,816 1,159,282 8,534 1,167,816 0002050 Total 28,957,771 28,957,771 8,343,364 5,918,496 5,806,107 8,679,549 210,256 28,957,771 Total 5.25% 5.25% 5.25% 4,270,000             3,140,000             2,660,000              10,070,000           Total Projected District Closure Outstanding  PAYGO BalancesAnnual CumulativeAdmin. Total  ExpendituresYear Projected Revenues Expenditures Tax Increments Incentive Present Value @ 5.25%  Discount Rate Balances Development Incentives Public  Infrastructure &  Land WritedownTotal Revenues Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 29  SECTION 10: Annexed Property A tax incremental district cannot include annexed territory unless at least three years have elapsed since the annexation, or certain other requirements are met. None of the property within the proposed District boundary was annexed during the past three years. SECTION 11: Estimate of Property to Be Devoted to Retail Business Pursuant to Wis. Stat. § 66.1105(5)(b), the City estimates that less than 35% of the territory within the District will be devoted to retail business at the end of the District’s maximum expenditure period. SECTION 12: Proposed Changes of Zoning Ordinances, Master Plan, Map, Building Codes and City Ordinances Zoning Ordinances The proposed Plan is in general conformance with the City’s current zoning ordinances. Individual properties may require rezoning at the time of development. Master (Comprehensive) Plan and Map The proposed Plan is in general conformance with the City’s Comprehensive Plan. The Project site is in the Sawdust District, and specifically within the River North and Core functional subareas identified in the Sawdust District Master Plan. That plan identifies these areas as appropriate for multi-family residential and commercial land uses. 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. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 30  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 appropriate financial incentives for private development projects. Development will occur in an orderly fashion in accordance with approved plans so that the Project 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. In addition to increased property value the Project will provide housing, employment and commercial opportunities while accomplishing specific redevelopment and blight elimination objectives identified in the City’s Sawdust District Master Plan and the City of Oshkosh Strategic Plan. Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 31  SECTION 15: List of Estimated Non-Project Costs Non-project costs are public works projects which only partly benefit the District. Costs incurred that do not benefit the District may not be paid with tax increments. Examples of non-project costs are:  A public improvement made within the District that also benefits property outside the District. That portion of the total Project Costs allocable to properties outside of the District would be a non-project cost.  A public improvement made outside the District that only partially benefits property within the District. That portion of the total Project Costs allocable to properties outside of the District would be a non- project cost.  Projects undertaken within the District as part of the implementation of this Project Plan, the costs of which are paid fully or in part by impact fees, grants, special assessments, or revenues other than tax increments. No improvements to be made within the District will benefit property outside the District. Furthermore, there will be no improvements made outside the District that will only partially benefit the District. Project Cost estimates included in this Plan for improvements to be made outside the District include only that portion of the cost allocable to the District. Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 32  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. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 33  Insert Signed Legal Opinion Tax Incremental District No. 43 Project Plan  City of Oshkosh  Prepared by Ehlers  Page | 34  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.