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HomeMy WebLinkAbout19. 22-366 AUGUST 23, 2022 22-366 RESOLUTION (CARRIED___7-0____LOST________LAID OVER________WITHDRAWN________) PURPOSE: APPROVE TAX INCREMENT DISTRICT NO. 43 PROJECT PLAN; DESIGNATE TAX INCREMENT DISTRICT NO. 43 BOUNDARIES; CREATE TAX INCREMENT DISTRICT NO. 43 MILL ON MAIN INITIATED BY: CITY ADMINISTRATION PLAN COMMISSION RECOMMENDATION: Approved WHEREAS, the City of Oshkosh (the “City”) has determined that use of Tax Incremental Financing is required to promote development and redevelopment within the City; and WHEREAS, Tax Increment District No. 43 (the “District”) is proposed to be created by the City as a blighted area district in accordance with the provisions of Wisconsin Statutes Section 66.1105 (the "Tax Increment Law"); and WHEREAS, a Project Plan for the District has been prepared that includes: a. A statement listing the kind, number and location of all proposed public works or improvements within the District, or to the extent provided in Wisconsin Statutes Sections 66.1105(2)(k) and 66.1105(4)(gm), outside of the District; b. An economic feasibility study; c. A detailed list of estimated project costs; d. A description of the methods of financing all estimated project costs and the time when the related costs or monetary obligations are to be incurred; e. A map showing existing uses and conditions of real property in the District; f. A map showing proposed improvements and uses in the District; g. Proposed changes of zoning ordinances, master plan, map, building codes and City ordinances; h. A list of estimated non-project costs; i. A statement of the proposed plan for relocation of any persons to be displaced; j. A statement indicating how the District promotes the orderly development of the City; AUGUST 23, 2022 22-366 RESOLUTION CONT’D k. An opinion of the City Attorney or of an attorney retained by the City advising that the plan is complete and complies with Wisconsin Statutes Section 66.1105(4)(f); and WHEREAS, prior to its publication, a copy of the notice of public hearing was sent to owners of all property in the proposed district, to the chief executive officers of Winnebago County, the Oshkosh Area School District, and the Fox Valley Technical College District, and any other entities having the power to levy taxes on property located within the District, in accordance with the procedures specified in the Tax Increment Law; and WHEREAS, in accordance with the procedures specified in the Tax Increment Law, the Plan Commission, on August 2, 2022 held a public hearing concerning the project plan and boundaries and proposed creation of the District, providing interested parties a reasonable opportunity to express their views thereon; and WHEREAS, after said public hearing, the Plan Commission designated the boundaries of the District, adopted the Project Plan, and recommended to the Common Council that it create such District and approve the Project Plan. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that: 1. The boundaries of the District shall be named "City of Oshkosh Tax Increment District No. 43, Mill on Main", are hereby established as specified in Exhibit A of this Resolution. 2. The District is created effective as of August 23, 2022. 3. The Common Council finds and declares that: (a) Not less than 50% by area of the real property within the District is in need of rehabilitation or conservation work within the meaning of Wisconsin Statutes Section 66.1337(2m)(a). (b) Based upon the findings, as stated in 3(a) above, the District is declared to be a District in need of rehabilitation or conservation based on the identification and classification of the property included within the District. (c) The improvement of such area is likely to enhance significantly the value of substantially all of the other real property in the District. AUGUST 23, 2022 22-366 RESOLUTION CONT’D (d) The equalized value of the taxable property in the District plus the value increment of all other existing tax incremental districts within the City, does not exceed 12% of the total equalized value of taxable property within the City. (e) The City estimates that none of the territory within the District will be devoted to retail business at the end of the District’s maximum expenditure period, pursuant to Wisconsin Statutes Section 66.1105(5)(b). (f) The project costs relate directly to promoting rehabilitation or conservation of the area consistent with the purpose for which the District is created. (g) All property within TID No. 43 was within the City boundaries as of January 1, 2004. 4. The attached Project Plan for "City of Oshkosh Tax Increment District No. 43, Mill on Main" is hereby approved, and the City further finds the Plan is feasible and in conformity with the master plan of the City. BE IT FURTHER RESOLVED that the Common Council of the City of Oshkosh hereby approves creation of Tax Incremental Financing District No. 43 Mill on Main. City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us TO: Honorable Mayor and Members of the Common Council FROM: Mark Lyons, Planning Services Manager DATE: August 18, 2022 RE: Approve Tax Increment District No. 43 Project Plan; Designate Tax Increment District No. 43 Boundaries; Create Tax Increment District No. 43 Mill on Main BACKGROUND 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 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. The 2040 Comprehensive Land Use Plan recommends Center City use for the subject area. The project is consistent with recommendations from the Comprehensive Plan and Sawdust District Master Plan. ANALYSIS 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 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. The applicant is proposing to construct three multi-story buildings with a total of 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. FISCAL IMPACT 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. The City anticipates making total expenditures of approximately $28.9 million for project plan costs which include an estimated $20.07 million in “pay as you go” development incentives (principal and interest), an estimated $210,000 in administrative costs, and an estimated $8.7 million in contingent expenditures including underground utilities, City Hall, 215 Church Avenuenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us environmental remediation, a trailhead parking lot, South Main Street improvements, public docks, and a land write-down. RECOMMENDATION The Plan Commission recommended approval of the Tax Increment District No. 43 project plan and boundaries on August 2, 2022. Please see the attached staff report and meeting minutes for more information. Respectfully Submitted, Approved: Mark Lyons John Fitzpatrick Planning Services Manager Assistant City Manager “Exhibit A” TID 43 Mill on Main Legal Description LEGAL DESCRIPTION FOR TAX INCREMENT DISTRICT 43, MILL ON MAIN PART OF THE SOUTHWEST ¼ OF THE SOUTHWEST ¼, AND PART OF THE SOUTHEAST ¼ OF THE SOUTHWEST ¼ OF SECTION 24, TOWNSHIP 18 NORTH, RANGE 16 EAST, PART OF THE NORTHEAST ¼ OF THE NORTHWEST ¼ OF SECTION 25, TOWNSHIP 18 NORTH, RANGE 16 EAST, ALL OF WHICH INCLUDES PART OF LOT 1 AND ALL OF LOT 2 OF CERTIFIED SURVEY MAP NUMBER 6007 RECORDED AS DOCUMENT NUMBER 1418291, WINNEBAGO COUNTY REGISTER OF DEEDS, PART OF LOTS 1, 3, 4, 5 AND 6 OF BLOCK 11, ALL OF LOTS 1 – 7, 10 – 18 AND 22 AND PART OF LOTS 8, 9, 19, 20 AND 21, OF BLOCK 12, ALL OF LOTS 1 – 11 AND 13 – 24 AND PART OF LOT 12 OF BLOCK 13, PART OF LOTS 2, 3, 4, 5, 6, 7, 8, 9, 11, 12 AND 13 OF BLOCK 14, PART OF LOTS 4, 5, 8, 9, 19 AND 20 OF BLOCK 18, PART OF S. MAIN STREET, PART OF PIONEER DRIVE, ALL OF E. 7TH AVENUE, ALL OF E. 8TH AVENUE, ALL OF E. 9TH AVENUE, ALL OF VACATED E. 7TH AVENUE, ALL OF VACATED E. 8TH AVENUE, PART OF VACATED E. 9TH AVENUE, PART OF VACATED E. 10TH AVENUE, PART OF VACATED INDIANA STREET, ALL LOCATED IN THE SOUTHWEST ¼ OF THE SOUTHWEST ¼, THE SOUTHEAST ¼ OF THE SOUTHWEST ¼ OF SECTION 24, TOWNSHIP 18 NORTH, RANGE 16 EAST AND PART OF THE NORTHEAST ¼ OF THE NORTHWEST ¼ OF SECTION 25, TOWNSHIP 18 NORTH, RANGE 16 EAST, CITY OF OSHKOSH, WINNEBAGO COUNTY, WISCONSIN, BOUNDED AND DESCRIBED AS FOLLOWS: COMMENCING FROM THE SOUTHWEST CORNER OF SAID SECTION 24; THENCE N89°51’26”E, 1,151.01 FEET ALONG THE SOUTH LINE OF SAID SECTION 24 TO A POINT ON THE CENTERLINE OF S. MAIN STREET AND THE POINT OF BEGINNING; THENCE N00°00’18”W, 492.05 FEET ALONG SAID CENTERLINE TO A POINT ON THE EXTENDED NORTH LINE OF E. 7TH AVENUE; THENCE S89°45’48”E, 231.47 FEET ALONG SAID EXTENDED NORTH LINE AND NORTH LINE OF E. 7TH AVENUE TO THE SOUTHEAST CORNER OF CERTIFIED SURVEY MAP NUMBER 7748 RECORDED AS DOCUMENT NUMBER 1847902, WINNEBAGO COUNTY REGISTER OF DEEDS; THENCE N00°02’25”E, 145.99 FEET ALONG THE WEST LINE OF SAID CERTIFIED SURVEY MAP TO THE NORTHEAST CORNER OF SAID CERTIFIED SURVEY MAP; THENCE N54°45’51”W, 65.38 FEET ALONG THE NORTH LINE OF SAID CERTIFIED SURVEY MAP; THENCE N83°50’06”W, 148.59 FEET TO A POINT ON THE EAST RIGHT-OF-WAY LINE OF S. MAIN STREET; THENCE N89°45’48”W, 30.01 FEET TO A POINT ON THE CENTERLINE OF S. MAIN STREET; THENCE N00°00’18”W, 34.41 FEET ALONG SAID CENTERLINE; THENCE N14°24’26”E, 114.92 FEET TO A THE STARTING POINT OF A MEANDER LINE OF THE SOUTHWESTERLY SHORE OF THE FOX RIVER, SAID POINT WHICH BEARS S14°24’26”W A DISTANCE OF 25 FEET MORE OR LESS FROM SAID SHORELINE; THENCE S56°08’31”E, 907.58 FEET ALONG SAID MEANDER LINE; THENCE S44°19’50”E, 329.75 FEET ALONG SAID MEANDER LINE; THENCE S72°28’57”E, 148.57 FEET ALONG SAID MEANDER LINE TO THE TERMINATION POINT OF SAID MEANDER LINE, SAID POINT BEARS S24°40’40”W, A DISTANCE OF 18 FEET MORE OR LESS FROM SAID SHORELINE; THENCE S24°40’40”W, 69.20 FEET TO A POINT ON THE WEST RIGHT-OF-WAY LINE OF PIONEER DRIVE; THENCE S16°56’37”W, 394.15 FEET ALONG SAID RIGHT-OF-WAY LINE TO THE SOUTHEAST CORNER OF CERTIFIED SURVEY MAP NUMBER 6007 RECORDED AS DOCUMENT NUMBER 1418291, WINNEBAGO COUNTY REGISTER OF DEEDS; THENCE N89°09’19”W, 219.01 FEET ALONG SAID CERTIFIED SURVEY MAP TO THE SOUTHWEST CORNER OF SAID CERTIFIED SURVEY MAP; THENCE N09°33’47”W, 74.45 FEET ALONG THE WEST LINE OF SAID CERTIFIED SURVEY MAP; THENCE N16°07’27”W, 172.65 FEET ALONG THE WEST LINE OF SAID CERTIFIED SURVEY MAP; THENCE N11°06’26”E, 30.22 FEET ALONG THE WEST LINE OF SAID CERTIFIED SURVEY MAP; THENCE N00°15’59”E, 62.77 FEET ALONG THE WEST LINE OF SAID CERTIFIED SURVEY MAP TO A POINT ON THE SOUTH LINE OF VACATED E. 9TH AVENUE; THENCE N89°29’09”W, 737.39 FEET ALONG SAID SOUTH LINE AND SOUTH LINE OF E. 9TH AVENUE TO A POINT ON THE CENTERLINE OF S. MAIN STREET; THENCE N 00°00’18”W, 48.02 FEET ALONG SAID CENTERLINE TO THE POINT OF BEGINNING. SAID AREA CONTAINS 684,576 SQUARE FEET OR 15.716 ACRES, MORE OR LESS, INCLUDING THOSE LANDS LOCATED BETWEEN SAID MEANDER LINE AND SOUTH SHORE OF THE FOX RIVER. ITEM: PUBLIC HEARING: PROPOSED CREATION OF TAX INCREMENT FINANCING DISTRICT NO. 43 MILL ON MAIN DESIGNATION OF BOUNDARIES AND APPROVAL OF PROJECT PLAN Plan Commission meeting of August 2, 2022. 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. 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. Item II: Creation of TID #43 – Mill on Main The Plan Commission recommended approval of the project plan and boundaries on August 2, 2022. The following is their discussion on the item. Site Inspections Report: Mr. Mitchell, Mr. Bowen, Ms. Propp and Ms. Davey all reported visiting the site. Staff report accepted as part of the record. 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. Mr. Lyons presented the item and reviewed the site and surrounding area as well as the land use and zoning classifications in this area. The 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. Staff recommends approval with the findings and conditions as listed in the staff report. Mr. Perry opened up technical questions to staff. Council Member Ford asked if the 4+ million in reimbursement for the purchase of the property is the first time they are doing this. Mr. Lyons said he wasn’t sure but maybe Mr. Taves would know. Todd Taves -Ehlers Inc., N21W23350 Ridgeview Parkway W Suite 100, Waukesha, WI; said they he can’t recall this being done before. Mr. Mitchell asked if it was conceivable that the city provides considerable financial support through the creation of the TIF to as help support a population that may not otherwise afford to live in these units. Mr. Lyons said it is conceivable. Mr. Mitchell said the states TIF policy allows the city and the developer to establish terms in a development agreement. One way to ensure access to individuals who are lower income that doesn’t impact the developers is to accept housing choice vouchers. If the possible tenant meets all other criteria except for income and the voucher would help them with that issue, then it could be a requirement that the developer does not turn them away just because they have a voucher. He asked if there is anything in place for that. Item II: Creation of TID #43 – Mill on Main Mr. Lyons said that he doesn’t know where the city is in the process of the developer’s agreement and it would have to go in the developer’s agreement and not the TID or project plan. It could be something council includes in the developer’s agreement. Mr. Mitchell asked if there was a way for Plan Commission to recommend it further. Mr. Lyons said the developer’s agreement is a legal document between council and the developer. Plan Commission is not able to condition the TID on them adding something into the developer’s agreement. Expressing concern now so staff and council can be made aware and be able to talk about it. Mr. Mitchell said that it doesn’t require the landlord to accept less then rent it simply states that if a family can only pay $300 and the rent is $800, the voucher pays the other $500. Finically speaking it doesn’t have a harmful impact on their developers. On the flip side, a lot of landlords don’t do it because they would prefer not to rent to low-income households. It is often talked about what avenues the city could take and implement to help expand access to affordable housing. If the city is providing their own financial incentives, that’s an avenue. Council Member Ford asked what types of vouchers are out there. Mr. Mitchell said if someone has a housing choice voucher through the Oshkosh or Winnebago County Housing Authority, they have been vetted and deemed eligible by the agency. There ends up being a triangular agreement. The tenant pays their portion and the agency pays the remainder. Mr. Mitchell asked if this includes the add-on year for purposes of affordable housing. Mr. Lyons said that is at TID closure. It’s a part of state statute now that when a TID closes, the City can request it remain open for an additional year and that increment is captured and placed into the Healthy Neighborhood Initiative. Mr. Perry asked for any public comments and asked if the applicant wanted to make any statements. Mr. Perry closed public comments and asked if the applicant wanted to make any closing statements. Motion by Coulibaly to approve the Project Plan and recommending the boundaries to the Council and adopting the staff report as the findings. Seconded by Davey. Mr. Perry asked if there was any discussion on the motion. Motion carried 7-0. Riverside Park Oshkosh City LimitOshkosh City LimitS MAIN STS MAIN STW 9TH AVW 9TH AV PPIIOONNEEEERRDDRREE 1100TTHH AAVV W 6TH AVW 6TH AV E 11TH AVE 11TH AVW 11TH AVW 11TH AV W 10TH AVW 10TH AV BBRROOAADDSSTTBROAD STBROAD STC:\Users\Public\Desktop\2020 Plan Commission Site Plan Map Template.mxd User: hannahs Prepared by: City of Oshkosh, WI Printing Date: 7/14/2022 1 in = 250 ft1 in = 0.05 mi¯TID # 43TID # 43 City of Oshkosh maps and data are intended to be used for general identification purposes only, andthe City of Oshkosh assumes no liability for the accuracy of the information. Those using theinformation are responsible for verifying accuracy. For full disclaimer please go towww.ci.oshkosh.wi.us/GISdisclaimer HI TR-10 TR-10 I I I CMU CMU I I UMU CMU-PD CMU-RFO UMU I-PD-RFO UMU RMU-PD-RFO SR-9 UMU UMUUMU-PD UMU-RFO RMU-PD-RFO I CMU I-PD UMU I I-PD I I MR-36 TR-10 I RMU-PD-RFO I-PD I-PD I-PD CMU I RMU-PD RMU-PD-RFO I I CMU-PD UMU-PD I I CMU UMU-PD MR-20 UMU SR-5-LRO I-PD CMU UMU RMU-PD I-RFOCMU-PD-RFO SR-5PD-LRO RMU-PD CMU-RFO I-PD-RFO MULTIPLE CMU-PD CMU MR-12PDLRO UMU-PD-UTO Oshkosh City LimitOshkosh City LimitOREGON STOREGON STS MAIN STS MAIN STCEAPE AVCEAPE AV BBOOWWEENNSSTTW 9TH AVW 9TH AV WASHINGTON AVWASHINGTON AV N MAIN STN MAIN STHIGH AV HIGH AV BAY STBAY STOTTER AVOTTER AV NEBRASKA STNEBRASKA STMILL STMILL STWAUGOO AVWAUGOO AV PIONEER DRPIONEER DRBBRROOAADDSSTTW 7TH AVW 7TH AV W 6TH AVW 6TH AV W 8TH AVW 8TH AV W 11TH AVW 11TH AV W 10TH AVW 10TH AV W 12TH AVW 12TH AV W 14TH AVW 14TH AV W 15TH AVW 15TH AV PEARL AV PEARL AV COURT STCOURT STBAY SHORE DR BAY SHORE DR SCHOOL AVSCHOOL AV E 14TH AVE 14TH AVCOMMERCE STCOMMERCE STMMAARRIIOONN RRDD E 11TH AVE 11TH AV RMU-RFO C:\Users\Public\Desktop\2020 Plan Commission Site Plan Map Template.mxd User: hannahs Prepared by: City of Oshkosh, WI Printing Date: 7/14/2022 1 in = 600 ft1 in = 0.11 mi¯TID # 43TID # 43 City of Oshkosh maps and data are intended to be used for general identification purposes only, andthe City of Oshkosh assumes no liability for the accuracy of the information. Those using theinformation are responsible for verifying accuracy. For full disclaimer please go towww.ci.oshkosh.wi.us/GISdisclaimer C:\Users\Public\Desktop\2020 Plan Commission Site Plan Map Template.mxd User: hannahs Prepared by: City of Oshkosh, WI Printing Date: 7/14/2022 1 in = 200 ft1 in = 0.04 mi¯TID # 43TID # 43 City of Oshkosh maps and data are intended to be used for general identification purposes only, andthe City of Oshkosh assumes no liability for the accuracy of the information. Those using theinformation are responsible for verifying accuracy. For full disclaimer please go towww.ci.oshkosh.wi.us/GISdisclaimer Riverside ParkOshkosh City LimitOshkosh City LimitS MAIN STS MAIN STOREGON STOREGON STCEAPE AVCEAPE AV W 9TH AVW 9TH AV W SOUTH PARK AVW SOUTH PARK AVNEBRASKA STNEBRASKA STPPIIOONNEEEERRDDRRBAY STBAY STW 7TH AVW 7TH AV W 6TH AVW 6TH AV W 8TH AVW 8TH AV W 11TH AVW 11TH AV W 10TH AVW 10TH AV W 12TH AVW 12TH AV W 14TH AVW 14TH AV W 15TH AVW 15TH AV W 16TH AVW 16TH AV E 10TH AVE 10TH AV POPLAR AVPOPLAR AVBROAD STBROAD STE 8TH AVE 8TH AV BAY SHORE DR BAY SHORE DR E 9TH AVE 9TH AV E 14TH AVE 14TH AV E 11TH AVE 11TH AV DOTY STDOTY STE 15TH AVE 15TH AV E 7TH AVE 7TH AV W 5TH AV W 5TH AV C:\Users\annam\Desktop\TIF 43 IS KILLING ME.mxd User: annam Prepared by: City of Oshkosh, WI Printing Date: 7/14/2022 1 in = 500 ft1 in = 0.09 mi¯TID 43 MILL ON MAINTID 43 MILL ON MAIN City of Oshkosh maps and data are intended to be used for general identification purposes only, andthe City of Oshkosh assumes no liability for the accuracy of the information. 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For full disclaimer please go towww.ci.oshkosh.wi.us/GISdisclaimer 25 W NINTH AVE LLC 907 S MAIN ST OSHKOSH WI 54902-6017 31 W 9TH AVE LLC 907 S MAIN ST OSHKOSH WI 54902-6017 50 WEST 6TH STREET LLC 230 OHIO ST 200 OSHKOSH WI 54902-5825 6TH WARD LLC 45 W 6TH AVE OSHKOSH WI 54902-6035 901 SOUTH MAIN LLC 907 S MAIN ST OSHKOSH WI 54902-6017 BAGO LOFTS INC 3731 SHANGRI LA POINT RD OSHKOSH WI 54904-7024 BERGSTROM CORP 1 NEENAH CENTER FL 7 NEENAH WI 54956-3053 BOLDTFAB LLC 1110 N DR MARTIN LUTHER KING JR DR MILWAUKEE WI 53203-1100 BOZEMAN CAPITAL GROUP LLP 45 W 6TH AVE OSHKOSH WI 54902-6035 BRIDGEVIEW HOLDINGS LLC 1302 S MAIN ST OSHKOSH WI 54902-6518 BROOKLYN ASSOC CONDO OWNERS INC 600 S MAIN ST STE 105 OSHKOSH WI 54902-6074 BROOKLYN BUILDINGS INC 3731 SHANGRI LA POINT RD OSHKOSH WI 54904-7024 BROOKLYN CONDOMINIUM ASSOC 600 S MAIN ST STE 105 OSHKOSH WI 54902-6074 BROOKLYN DEVELOPMENTS LLC 3731 SHANGRI LA POINT RD OSHKOSH WI 54904-7024 CITY OF OSHKOSH PO BOX 1130 OSHKOSH WI 54903-1130 CONDOR PROPERTIES 600 LLC 2873 DANBE RD OSHKOSH WI 54904-9262 DONS AUTO BODY INC 18 W 7TH AVE OSHKOSH WI 54902-6042 EQUITY TRUST CO CUSTODIAN FBO D CUSHMAN 3731 SHANGRI LA POINT RD OSHKOSH WI 54904-7024 ERDMANN CLINIC LLC 497 E CALIFORNIA BLVD APT 314 PASADENA CA 91106-3787 EVERETT IND BLDG CO PO BOX 1138 FOND DU LAC WI 54936-1138 FOX VALLEY & WESTERN LTD 17641 S ASHLAND AVE HOMEWOOD IL 60430-1339 FOX VALLEY PRO BASKETBALL INC 1212 S MAIN ST OSHKOSH WI 54902-6007 G REINKE & CO INC 900 S MAIN ST OSHKOSH WI 54902-6018 GD & RL KORTHALS TRUST/KP & D SCHROEDER 600 S MAIN ST OSHKOSH WI 54902-6074 GD & RL KORTHALS TRUST/KP&D SCHROEDER 600 S MAIN ST OSHKOSH WI 54902-6074 GD &RL KORTHALS TRUST/KP & D SCHROEDER 600 S MAIN ST OSHKOSH WI 54902-6074 GD&RL KORTHALS TRUST/KP&D SCHROEDER 600 S MAIN ST OSHKOSH WI 54902-6074 GD/RL KORTHALS TRUST/KP&D SCHROEDER 600 S MAIN ST OSHKOSH WI 54902-6074 GOLLNICK INDUSTRIES INC 907 S MAIN ST OSHKOSH WI 54902-6017 GOLLNICK RENTALS INC 905 S MAIN ST OSHKOSH WI 54902-6017 GRANCY LLC 920 S MAIN ST OSHKOSH WI 54902-6018 HINRICHS HOLDINGS LLC 40 W 6TH AVE OSHKOSH WI 54902-6036 JAMES C GOLLNICK 907 S MAIN ST OSHKOSH WI 54902-6017 JAMES E LARSON 1369 RAHR AVE OSHKOSH WI 54901-5363 JAMES LARSON ARCHITECT LLC 1369 RAHR AVE OSHKOSH WI 54901-5363 JENCO PROPERTIES LLC 600 S MAIN ST 202 OSHKOSH WI 54902-6074 KALMERTON PROPERTIES LLC 1014 S MAIN ST OSHKOSH WI 54902-6020 KUETTNER FINANCIAL HOLDINGS LLC 600 S MAIN ST 105 OSHKOSH WI 54902-6074 LOTUS PROPERTIES LLC W5031 CHERRYWOOD DR SHERWOOD WI 54169-9502 M & D ENTERPRISES OF OSHKOSH LLC 110 W 7TH AVE OSHKOSH WI 54902-6044 MILES KIMBALL LLC 1425 MEMORIAL DR MANITOWOC WI 54220-6707 MK1 LLC 905 OREGON ST OSHKOSH WI 54902-6454 OSHKOSH AREA SCHOOL DISTRICT PO BOX 3048 OSHKOSH WI 54903-3048 PIONEER ISLAND LLC 601 OREGON ST OSHKOSH WI 54902-5965 REDEVELOPMENT AUTH CITY OF OSHKOSH PO BOX 1130 OSHKOSH WI 54903-1130 RICHARD WARRICK 2436 W CLOVER ST OSHKOSH WI 54901-1548 RIVERFRONT DEVELOPMENT II LLC 55 E JACKSON BLVD 500 CHICAGO IL 60604-4137 RIVERFRONT DEVELOPMENT LLC 55 E JACKSON BLVD 500 CHICAGO IL 60604-4137 ROBIN L SCHROEDER 17 W 6TH AVE OSHKOSH WI 54902-6035 TITAN COMMERCIAL LLC 923 S MAIN ST STE E OSHKOSH WI 54902-6017 WIS PUBLIC SERVICE CORP PO BOX 19001 GREEN BAY WI 54307-9001 WOHLT INVESTMENTS LLC 911 W 18TH AVE OSHKOSH WI 54902-6716     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 FlowCity of Oshkosh, WITax Increment District #43 (Mill on Main)Cash Flow ProjectionPhase I @Phase II @Phase III @90% 90% 90%of Increment of Increment of IncrementYear2022 000 0 0 25,00025,000(25,000) (25,000)020222023 000 0 0 5,0005,000(5,000) (30,000)8,343,364 20232024 110,362110,36299,326 0 0 5,100104,4265,936(24,064)14,162,534 20242025 427,793427,793297,977 87,037 0 13,514 5,202403,73024,064 0 13,777,520 20252026 731,570731,570397,303 261,110 0 67,851 5,306731,5700 0 18,925,213 20262027 913,162913,162397,303 348,147 76,396 85,904 5,412913,1620 0 18,103,367 20272028 1,082,9311,082,931397,303 348,147 229,188 102,773 5,5201,082,9310 0 17,128,729 20282029 1,167,8161,167,816397,303 348,147 305,585 111,151 5,6311,167,8160 0 16,077,695 20292030 1,167,8161,167,816397,303 348,147 305,585 111,038 5,7431,167,8160 0 15,026,660 20302031 1,167,8161,167,816397,303 348,147 305,585 110,923 5,8581,167,8160 0 13,975,626 20312032 1,167,8161,167,816397,303 348,147 305,585 110,806 5,9751,167,8160 0 12,924,591 20322033 1,167,8161,167,816397,303 348,147 305,585 110,687 6,0951,167,8160 0 11,873,557 20332034 1,167,8161,167,816397,303 348,147 305,585 110,565 6,2171,167,8160 0 10,822,523 20342035 1,167,8161,167,816397,303 348,147 305,585 110,440 6,3411,167,8160 0 9,771,488 20352036 1,167,8161,167,816397,303 348,147 305,585 110,314 6,4681,167,8160 0 8,720,454 20362037 1,167,8161,167,816397,303 348,147 305,585 110,184 6,5971,167,8160 0 7,669,419 20372038 1,167,8161,167,816397,303 348,147 305,585 110,052 6,7291,167,8160 0 6,618,385 20382039 1,167,8161,167,816397,303 348,147 305,585 109,918 6,8641,167,8160 0 5,567,351 20392040 1,167,8161,167,816397,303 348,147 305,585 109,780 7,0011,167,8160 0 4,516,316 20402041 1,167,8161,167,816397,303 348,147 305,585 109,640 7,1411,167,8160 0 3,465,282 20412042 1,167,8161,167,816397,303 348,147 305,585 109,498 7,2841,167,8160 0 2,414,247 20422043 1,167,8161,167,816397,303 305,585 457,499 7,4301,167,8160 0 1,711,360 20432044 1,167,8161,167,816397,303 305,585 457,350 7,5781,167,8160 0 1,008,472 20442045 1,167,8161,167,816397,303 305,585 457,199 7,7301,167,8160 0 305,585 20452046 1,167,8161,167,816305,585 854,347 7,8841,167,81600020462047 1,167,8161,167,8161,159,774 8,0421,167,81600020472048 1,167,8161,167,8161,159,613 8,2031,167,81600020482049 1,167,8161,167,8161,159,449 8,3671,167,81600020492050 1,167,8161,167,8161,159,282 8,5341,167,8160002050Total 28,957,771 28,957,771 8,343,364 5,918,496 5,806,107 8,679,549 210,256 28,957,771 Total5.25% 5.25% 5.25%4,270,000             3,140,000             2,660,000             10,070,000           TotalProjected District ClosureOutstanding PAYGO BalancesAnnual CumulativeAdmin.Total ExpendituresYearProjected Revenues ExpendituresTax IncrementsIncentive Present Value @ 5.25% Discount RateBalancesDevelopment IncentivesPublic 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.