HomeMy WebLinkAboutItem II
PLAN COMMISSION STAFF REPORT AUGUST 2, 2022
ITEM II: PUBLIC HEARING: PROPOSED CREATION OF TAX INCREMENT
FINANCING DISTRICT NO. 43 MILL ON MAIN DESIGNATION OF
BOUNDARIES AND APPROVAL OF PROJECT PLAN
Prior to taking action on proposed Tax Increment District (TID) No. 43 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. 43. 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: The Mill on Main, LLC
Owner: Redevelopment Authority of Oshkosh, City of Oshkosh, Fox Valley & Western
LTD, Wisconsin Public Service, Bergstrom Corporation.
GENERAL DESCRIPTION/BACKGROUND
Please see attached TID No. 43 Project Plan for more detailed information.
Tax Incremental District No. 43 (the “TID” or “District”) is a proposed 13.45 acre Blight Area
district generally comprised of former industrial property located along the Fox River. The
subject development was previously approved as part of a Planned Development per Council
Resolution 22-309 on July 12, 2022.
The City anticipates making total expenditures of approximately $28.9 million to undertake
projects identified in the Project Plan. Project costs include an estimated $20.07 million in “pay
as you go” development incentives, an estimated $4,450,000 for public infrastructure and
remediation and an estimated $210,000 in administrative costs. Identified public infrastructure
projects include: undergrounding utilities, environmental remediation, trailhead parking, S.
Main Street improvements and public docks. In addition to the public infrastructure projects,
the City may also utilize District funds to recover cost it has incurred related to acquisition of
the development site which has been sold to the Developer for consideration that is less than
the City’s cost to acquire and carry. The Plan identifies approximately $4.23 million as
potentially being available towards the approximately $4.5 million incurred by the City.
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.
Page 1
Item II: Creation of TID #43 – Mill on Main
ANALYSIS
The City is projecting an improvements value of approximately $47.8 million will result from
redevelopment activity within the District. The applicant’s overall investment in the project is
approximately $90 million. These key assumptions are identified in Section 9 of the Plan
starting on page 25. The “expected” improvements will occur on the parcels located in the
district and may entail the following:
Use
The applicant is proposing to construct three multi-story buildings total 291 apartment units
and 21,800 sq. ft. of commercial space. The project density is approximately 21.6 units per acre.
The site will consist of 503 total parking spaces, including 320 covered parking spaces and 183
surface spaces. The plans for the development were approved by Common Council as part of
Resolution 22-309 in July 2022.
Table 1 on page 25 shows the development assumptions when values will be added the site.
The development assumption anticipate the district being fully develop by sometime in 2027.
District Life
Based on the Project Cost expenditures identified on Table 3 on Page 28 of the Plan, the district
is anticipated to remain open for all of it’s statutorily allowed 27 year life. At that point the full
value of the properties would be added back to the overall tax rolls which current estimate is
$47.8 million.
Type of District
The District is being created as “blighted area” within the meaning of Wis. Stat. 66.1105(2)(ae)
based on 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
map on page 7 of the Plan and table on page 13. The subject properties contain vacant land
previously occupied by industrial uses. The proposed development scored 78 points on the
City’s Blight and Redevelopment scoring matrix, exceeding the minimum 50 points required.
Consistency with Plans
The property is zoned Riverfront Mixed Use with a Planned Development Overlay (RMU-PD).
The District is located within the River North and Core sub areas of the Sawdust District Master
Plan and the 2040 Comprehensive Land Use Plans recommends Center City use for the subject
area. The project is consistent with recommendations with the Comprehensive Plan, Sawdust
District Master Plan and previously approved by Common Council.
RECOMMENDATIONS/CONDITIONS
Staff recommends approval of the Project Plan and Boundaries for TID #43 as proposed.
Page 2
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.
Page 3
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
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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.
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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.
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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.
Page 7
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.
Page 8
Tax Incremental District No. 43 Project Plan City of Oshkosh
Prepared by Ehlers Page | 7
Page 9
Tax Incremental District No. 43 Project Plan City of Oshkosh
Prepared by Ehlers Page | 8
Page 10
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.
Page 11
Tax Incremental District No. 43 Project Plan City of Oshkosh
Prepared by Ehlers Page | 10
Page 12
Tax Incremental District No. 43 Project Plan City of Oshkosh
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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
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Tax Incremental District No. 43 Project Plan City of Oshkosh
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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.
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Tax Incremental District No. 43 Project Plan City of Oshkosh
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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%
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Tax Incremental District No. 43 Project Plan City of Oshkosh
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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.
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Tax Incremental District No. 43 Project Plan City of Oshkosh
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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.
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Tax Incremental District No. 43 Project Plan City of Oshkosh
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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.
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Tax Incremental District No. 43 Project Plan City of Oshkosh
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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
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Tax Incremental District No. 43 Project Plan City of Oshkosh
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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.
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Tax Incremental District No. 43 Project Plan City of Oshkosh
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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.
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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.
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SECTION 7:
Map Showing Proposed Improvements and Uses
Map Found on Following Page.
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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.
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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.
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Table 1 – Development Assumptions
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Table 2 – Tax Increment Projection Worksheet
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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.
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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
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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.
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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.
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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.
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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.
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Insert Signed Legal Opinion
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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.
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