HomeMy WebLinkAbout2-7-24 Long Range Finance Agenda Documents
Finance Department
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.ci.oshkosh.wi.us
LONG RANGE FINANCE COMMITTEE AGENDA
February 7, 2024
5:15 PM
To Whom It May Concern:
PLEASE NOTE the City of Oshkosh Long Range Finance Committee will meet on Wednesday,
February 7th, at 5:15 pm, in Room 404 at the Oshkosh City Hall, 215 Church Avenue.
ROLL CALL
I. Citizen Input - (Up to the first 15 minutes of meeting – can be regarding any City Finance
topic)
II. Approval of December 6th, 2023 Minutes
III. TIF Policy- Continued Discussion
IV. Special Assessment Policy- Continued Discussion
V. Capitalized Fixed Asset Policy
A. List of Capital Assests
VI. Presentation on proposed funding mechanism to replace special assessments
VII. Next Meeting Date & Agenda Items – April 3, 2024
VIII. Adjournment
If you have any questions, please call the Finance Office at (920) 236-5005 between 8:00 am – 4:30 pm
Monday – Friday.
Finance Department
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.ci.oshkosh.wi.us
MINUTES FOR THE LONG-RANGE FINANCE COMMITTEE
December 6, 2023
PLEASE NOTE the City of Oshkosh Long Range Finance Committee met on Wednesday, August 2,
2023, at 5:15 pm, in Room 404 at the Oshkosh City Hall, 215 Church Avenue.
The meeting was called to order by Mike Ford at 5:15pm.
Members Present: Mike Ford, John Zarbano, Adam BellCorelli, Todd Hutchison, Koby Schellenger
(5:20), Brian Wendt
Members Absent: Andrew Kramp
Staff Present: Russ Van Gompel – Director of Finance, Julie Calmes - Assistant Director of
Finance
ROLL CALL
I. Citizen Input
None
II. Approval of August 2, 2023 Minutes:
MOTION TO APPROVE: Adam BellCorelli; 2nd John Zarbano
CARRIED: Approved unanimously, no added comments
III. TIF Policy:
Mark Lyons, Planning Services Manager, reviewed the Tax Increment Financing
Policy and Application. He also distributed and reviewed the Tax Increment
Financing Closure Policy. Committee members made several inquiries including
the Return on Investment calculation and the amount and timing for the collection
of application fees. The Committee will continue the discussions at the next
meeting.
IV. Special Assessment Policy:
James Rabe, Director of Public Works, reviewed the Policy for Special Assessments
noting the calculations for street assessment rate, sidewalks, sanitary sewers, and
water mains. He also discussed the differences with street reconstruction rates and
new water and sewer extensions. Michael Ford presented information from the
City of Eau Claire regarding their policy to defer special assessments for residents
with financial hardships. The Committee will continue discussions at their next
meeting.
Finance Department
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.ci.oshkosh.wi.us
V. Capital Fixed Asset Policy
Assistant Finance Director Calmes reviewed the Capitalized Fixed Asset Policy.
Committee members questioned the threshold of $5,000, which is very common for
a City the size of Oshkosh. Committee members expressed a desire to receive a list
of capital assets.
VI. Next Meeting Date & Agenda Items
Meeting set for February 7, 2024 at 5:15pm
Next Agenda: Review Capitalized Fixed Assets Policy, TIF Policy, and Special
Assessment Policy
VII. Adjournment
MOTION TO ADJOURN: Koby Schellenger; 2nd Adam BellCorelli
CARRIED: Approved unanimously
Meeting adjourned at 6:20pm
City
Oshkosh
Financing
Policy and Application
1
What is TIF?
Tax Incremental Financing (TIF) is a special funding tool available to local
municipalities that spurs economic development which otherwise would not occur.
When a Tax Increment District (TID) is created property owners within the district
continue to pay the same property tax rates as those outside the district.
The difference is that tax collections, over and above the "base value" are placed
into a special fund that is used to pay for project costs. Once all costs incurred by
the creation of the TID are recooped by the additional tax increment created the
TID is closed and the additional property taxes created are shared by all taxing
entities. The use of TIF varies from project to project and district to district. In some
cases, the City uses TIF to promote redevelopment of older parts of the community.
In other cases the City uses TIF to create industrial parks through land acquisition
and construction of infrastructure. Both cases, increased property tax collections
are used to pay down debt service associated with project costs. The following
outlines the City's policy regarding TIF.
Purpose:
The purpose of this Policy is to articulate to existing or potential businesses the City of
Oshkosh's desire to promote economic development that is consistent with the
City's Comprehensive Plan and provides a community benefit that will ultimately be
shared by all taxing entities (City, School, Technical College, County, and State)
impacted through the establishment of Tax Increment District (TID).
Not withstanding compliance with any or all of the guidelines herein, the provision
of TIF assistance is a policy choice to be evaluated on a case-by-case basis by the
Common Council. The burden of establishing the public value of TIF shall be placed
upon the applicant and the application must substantially meet the criteria
contained herein. City Administration reserves the right to bring any TIF proposal
forward for Council consideration.
Meeting statutory requirements, policy guidelines or other criteria listed herein does
not guarantee the provision of TIF financial assistance nor does the approval or
denial of one project set precedent for approval or denial of another project.
TIF Authority:
The authority and regulations for Tax Incremental Financing and the establishment
of Tax Increment Districts are found in Wis. Stats. 66.1105. The City of Oshkosh
reserves the right to be more restrictive than provided under the statutes.
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Oshkosh
Financing
Policy and Application
2
Basic Provisions:
As a matter of policy the City of Oshkosh will consider using Tax Incremental Financing to assist
private development in those circumstances where the proposed private project shows a
demonstrated financial gap and that the financial assistance request is the minimum necessary to
make the project feasible. The developer is expected to have exhausted every other financial
alternative(s) prior to requesting the use of TIF, including equity participation, other federal and state
funds, bonds, tax credits, loans, etc.
It is the intent of the City to provide the minimum amount of Tax Incremental Financing assistance to
make the project viable and not solely to broaden a developer's profit margin on the project. Prior
to consideration of a Tax Incremental Financing request, the City will undertake (at the requestor's
cost) an independent analysis of the project to ensure the request for assistance is valid.
In requesting TIF assistance, the developer must demonstrate that there will be a substantial and
significant public benefit to the community by eliminating blight, strengthening the economic and
employment base of the City, positively impacting surrounding neighborhoods, increasing property
values and the tax base, creating new and retaining existing jobs, and implementing the
Comprehensive Plan.
Each project and location is unique and therefore every proposal shall be evaluated on its
individual merit, including its potential impact on city service levels, its overall contribution to the
economy and its consistency with the Comprehensive Plan, Strategic Plan or other community
planning documents. Each project must demonstrate probability of financial success.
"BUT FOR" TIF
The fundamental principle and that which the City must determine through information provided by
the developer is that the project would not occur "but for" the assistance provided through Tax
Incremental Financing. The burden is on the developer to make this case to the City and not the
City to make this case for the developer. Should this "but for" determination not be made, Tax
Incremental Financing for the project cannot move forward.
TIF Objectives:
The City will consider utilizing Tax Incremental Financing to meet the following basic objectives:
1. Stimulate and continued revitalization of the central city and downtown area by:
a. Improving infrastructure;
b. Creating a variety of housing opportunities to increase the number of downtown
residents;
c. Preventing or eliminating slums and blighting conditions;
d. Constructing mixed-use developments;
e. Attracting desirable businesses and retaining existing businesses.
f. Encouraging development projects that enhance the streetscape and pedestrian
experience and improve the vitality of the downtown area by adding interest and activity
on the first floor of mixed - use buildings.
2. Promote efficient usage of land through redevelopment of blighted areas.
3. Strengthen the economic base of the City and support Economic Development.
4. Stabilize and upgrade targeted neighborhoods.
5. Create and retain family supporting jobs in the City.
6. Increase property values and tax revenues.
7. Leveraging the maximum amount of non-city funds into a development and back into the
community.
City
Oshkosh
Financing
Policy and Application
3
Development is Eligible?
The type of development that the City consider TIF funding includes:
1. development (attraction, retention, expansion). TIF assistance
be evaluated on its impact on existing local
2. Mixed-use developments that integrate commercial and retail
projects into a esiden
3. of historically significant or deteriorated buildings.
4. Projects that promote central city and retail
5. Projects that promote neighborhood stabilization or revitalization.
6. Projects that promote industrial
7. Projects consistent with approved TIF Project Plans.
8. Projects that environmental clean-up, removal of slum and blighting
io
9. Projects that contribute to the implementation of other public as
adopted by the city in its strategic plans such as promotion of high quality
architectural design, energy conservation (i.e. Energy Star, etc), green
infrastructure, etc.
Development is Ineligible?
The City not favor use of TIF funding to help support the types of
1. development without one or more anchor tenants.
2. Relocation of retail and/or commercial uses for purposes other
than retaining substantially expanding the business.
3. and retail development outside of the central city unless part of a city
owned business industrial
4. Stand alone residential development projects unless limited by site and
environmental io beyond which make the project infeasible.
5. Projects not consistent with the Comprehensive Plan.
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Oshkosh
Financing
Policy and Application
4
Eligible Costs:
TIF eligible expenditures are defined by Section 66.1105(2)(e) of Wisconsin Statutes, which the City of
Oshkosh may further limit on a project by project basis. The following are typical eligible costs.
1. Capital costs, including actual costs of:
a. Construction of public works or improvements;
b. Construction of new buildings, structures, and fixtures;
c. Demolition, alteration, rehabilitation, repair or reconstruction of existing buildings,
structures and fixtures, other than historic buildings and structures.
d. Acquisition of equipment to service the district;
e. Restoration of soil or groundwater affected by environmental pollution; and
f. Clearing and grading of land.
2. Real property assembly costs.
3. Professional service costs (planning, architectural, engineering, and legal).
4. Relocation costs.
5. Environmental remediation.
6. Organizational costs (environmental and other studies, publication and notification costs).
7. Development Incentives in the form of loans or grants.
Criteria for TIF Assistance:
All of the following financial criteria must be met in order to be considered for TIF assistance.
1. Equity Requirement. Developers must provide a minimum 15% equity of total project
costs. Projects that exceed the 15% equity requirement will be looked upon more
favorably by the City. Equity is defined as cash or un-leveraged value in land or prepaid
costs attributable to the project. TIF shall not be used to supplant cash equity.
2. Maximum Increment Use. For loans, no more than 75% of the net present value of the tax
increment generated by a private development shall be made available to the project.
For "pay-go" supported projects up to 90% of the generated annual tax increment can
be made available if a financial need is demonstrated and there are no other public
infrastructure projects planned in the district.
3. Payback Period. Payback period for loans will match the amortization period but in no
case will exceed the statutory life of the district. Preference will be given to projects with
payback periods of 10 years or under.
4. TIF Cap. The total amount of TIF assistance should not exceed 25% of total project costs.
This limitation may be waived if the project involves redevelopment of existing structures
or the assembly and clearance of land upon which existing structures are located.
5. Self-Supporting Projects. Each project requesting TIF assistance should generate
sufficient tax increment to cover the requested TIF assistance and a portion of any
public infrastructure costs within the district.
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Oshkosh
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Policy and Application
5
for TIF continued from page...
6. No increment from other private development projects within the district may be used to
supplement another project's inability to generate sufficient tax increment to cover
project costs.
7. Land Assembly Cap. TIF assistance for land/property assembly costs will not be provided
in an amount exceeding 10% of the fair market value of the land. The fair market value will
be determined by an independent appraiser contracted by the City with cost of
appraisal paid for by developer.
8. Internal Rate of Return. The amount of assistance provided to a developer will be limited to
amount necessary to provide the developer a reasonable rate of return on investment
in the and the subject site. A lo return on equity, return on cost or internal
rate of return will based on current market conditions as determined by the City or ty
financial advisor. In no case shall the internal rate of return exceed 20%.
9. Taxable Increase. The project should result in an increase in taxable valuation of at least 20%
project
Policy Criteria:
In addition to meeting all of the above financial criteria, projects must accumulate at least 50 points based
on an established scoring matrix that will become part of the application packet. Points can range from 0
to the maximum shown in each category. The City has established 3 different scoring matrixes:
Blight/Redevelopment
Economic Development/Industrial or Business Park
Mixed Use
Staff will determine the type of scoring matrix that is most applicable to the applicant’s
project. Applicants are expected to self-score their projects and to provide supporting documentation
for each of the scoring categories. Prior to filling out the scoring matrix please contact staff for
assistance.
City
Oshkosh
Financing
Policy and Application
6
Process of TIF Approval:
Tax Increment District creation requires statutory prescribed timelines that include
notification the taxing jurisdictions (i.e. public school district, technical
county, city), property owners within the published meeting notification in the
newspaper. Ultimately the Plan Commission, Common Council, and Joint Review
Board all must approve the TID creation
TID Process Timeline – Example using May 1st
May 1, Staff receives TIF application, distributed to TIF Team (Comm Dev, Public Works, Attorney, Finance).
Council is forwarded TIF application.
May 9, Applicant presents their proposal during Council meeting for TIF and Development Agreement. Council
goes into closed session to consider proposal and/or determine other information required prior to acting on
proposal.
May 10, City provides Ehlers with TID application and receives direction from Council.
May 30, Ehlers will prepare & provide the City with feasibility analysis report, options, and/or draft TIF project
plan document. Council is forwarded draft # 1 TIF Project Plan.
May 30, City mails public hearing notices.
June 12, Ehlers provides Council & City Staff with revised draft #2 TIF Project Plan.
June 14, City posts Joint Review Board (JRB) & Public Hearing/ Plan Commission meeting agendas.
June 14, Plan Commission meeting notice & draft to City Attorney for Attorney Legal Opinion. TIF team begins
drafting Development Agreement.
June 6-9, First publication of Public Hearing & JRB meeting notice.
June 12, Second publication of Public Hearing & JRB meeting notice.
June 20, Plan Commission approval of TID boundary plan.
June 22, Ehlers provides Council & City staff with revised draft #3 TIF Project Plan.
June 29, City provides Ehlers with the signed legal opinion approving the TIF Project Plan.
July 3, Ehlers provides Council & City staff with draft #4 TIF Project Plan.
July 7, City posts the Council meeting agenda, as well as distributes the resolution & Project Plan for
consideration.
July 11, Common Council reviews Plan & takes action on creation resolution approving TIF District Project Plan
and boundaries. Council reviews draft Development Agreement – closed session if needed.
July 12, City mails notice & required attachments to JRB of the final meeting, along with the agenda.
July 14, Publication of JRB meeting notice.
July 19 Joint Review board consideration.
July 25 Council takes action on Development Agreement.
September, City will notify the DOR within 60 days of approval that the TIF creation took place.
September to October, City will gather, prepare, and submit state forms & all required documents to state,
once the 2017 assessed parcel values available (following the DOR).
City
Oshkosh
Financing
Policy and Application
7
Structure for Tax Incremental Financing Assistance:
Tax Incremental Financing assistance be provided by the City on a note method or
via bond proceeds. Requests for up-front financing may be considered on a basis
increment generation is to meet initial financing and debt costs and is not the first
dollars spent on a
For structured projects, the project owner shall agree to pay all other outstanding City
of property tax prior to disbursement of any pay-go payments by the City.
No Mortgage Guarantees. The City not provide mortgage
Personal Guarantee. The City require a personal guaranty for receiving up front TIF
assistance. Amount and form shall be acceptable to the City.
The property owner shall agree not to protest to the Board of Review or Circuit Court
determination of the property value for the properties for which the grant is
The City retain a maximum of of any tax increment received from the project to
reimburse for costs. Until such time as the project generates positive tax increment,
the City charge an administrative fee to developer to partially the cost of record
report preparation, and accounting.
When the project is intended as a for-sale development (i.e., retail or residential
condominiums), the developer must retain ownership of the overall project until final completion;
provided, that individual units may be sold as they are completed.
other projects, the developer must retain ownership of the project at least long enough to
complete it, to its occupancy, to establish the project management and to initiate
payment of taxes based on the increased project value.
Projects receiving assistance be subject to a “look back” provision. The look back mandates
a developer provide the City or its financial advisor with evidence of its annualized cumulative
internal rate of return on investment (IRR) at periods of time after project completion.
The shall be calculated with equity, revenues, and expenses in accord with accepted
accounting inci les If the financial records indicate that the developer has received a higher
return on equity or internal rate of return than originally contemplated at the time of
agreement approval, future TIF contributions may be adjusted or the developer may be
required to pay the City back for previous contributions.
Exceptions to TIF Policy. The City the right to amend, modify, or withdraw these policies
or statements or information as deemed necessary. Any party requesting
waiver from the guidelines herein or on any other forms provided for TIF assistance may do
so on forms provided by the City with the burden being on the requestor to demonstrate that the
exception to is in the best interests of the City.
City
Oshkosh
Financing
Policy and Application
8
Please complete and submit the following information to the City of Oshkosh for a more detailed review of
the feasibility of your request for Tax Incremental Financing (TIF) assistance. The application is comprised of
five parts:
1. Applicant Information
2. Project/Property Information
3. Project Narrative
4. Project Budget/Financial Information
5. Buyer Certification and Acknowledgement.
Where there is not enough space for your response or additional information is requested, please use an
attachment. Use attachments only when necessary and to provide clarifying or additional information.
The Department of Community Development (DCD) reviews all applications for TIF assistance. Failure to
provide all required information in a complete and accurate manner could delay processing of your
application and DCD reserves the right to reject or halt processing the application for incomplete
submittals.
For further information please refer to the "City of Oshkosh Tax Incremental Financing Policy" document or
call the Economic Development Division at 920.235.5055
LegaI Name:
Mailing Address:
Primary Contact #: Cell #:
E-mail: FAX#:
Attorney:
Legal Entity: Individual(s) Joint Tenants Tenants in Common
Corporation LLC Partnership Other
If not a Wisconsin corporation/partnership/LLC, state where organized:
Will a new entity be created for ownership? Yes No
Principals of existing or proposed corporation/partnership/LLC and extent of ownership interest.
Name: Address: Title: Interest:
Is any owner, member, stockholder, partner, officer or director of any previously identified entities,
or any member of the immediate family of any such person, an employee of the City of
Oshkosh? Yes No
If yes, give the name and relationship of the employee:
Have any of the applicants (including the principals of the corporation/partnership/LLC) ever
been charged or convicted of a misdemeanor or felony? Yes No
If yes, please furnish details:
City
Oshkosh
Financing
Policy and Application
9
Overall Project Summary and Objectives:
Current and Proposed Uses:
Description of End Users:
Describe any zoning changes that will be needed:
Identify any other approvals, permits or licenses (i.e. Liquor License, Health Department, etc):
Describe briefly what the project will do for the property and neighborhood:
Property Summary:
Parcel/Land Area: SF
Building Area: SF
# of Dwelling Units:
# of Stories:
# of Parking Spaces:
*Please attach additional pages if necessary
City
Oshkosh
Financing
Policy and Application
10
Project Timetable Date
Final Plan/Specification Preparation:
Bidding and Contracting
Firm Financing Approval:
Construction/Rehabilitation:
Landscaping/Site Work:
Occupancy/Lease Up:
Development Team
Developer:
Architect:
Surveyor:
Contractor:
Other Members:
Describe Team expertise and experience in developing similar projects:
Other current Team projects in development:
Financial ability of the applicant to complete the project:
History of use of other city or government financial incentives:
Professional Studies
Applications for commercial and residential projects may at the option
of the city be required to include a comprehensive market study. The study
should identify target markets, of competition, demographics, market rents,
letters of intent/interest from prospective tenants, or for housing developments,
prices or rental rates of comparable
Appraisal: projects that the transfer of land may at the option of the city
include a recent appraisal. Projects that include land as a form of equity or collateral
must also submit a recent appraisal. The appraisal must value the property and
the impact on value must be considered for such items as demolition, environmental
remediation, relocation of utilities, lease buy-outs, and other work make
the site developable. The must be valued assuming that the highest and
best use is the proposed use.
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Oshkosh
Financing
Policy and Application
11
Sources and Uses of Funds
Identify the sources of funds used to finance the project. Typical sources include equity,
lender financing, mezzanine financing, government financing, other anticipated types
of public assistance, and any other types or methods of financing.
Uses of Funds Amount ($) $ per SF of Building Area
Land Acquisition:
Demolition:
Environmental Remediation:
Site Clearance and Preparation:
Soft Costs/ Fees:
Soft Cost Contingency:
Hard Construction Costs:
Total Project Costs:
Sources of Funds % of total project costs
Equity
Developer Equity: $ %
Other Equity:( ) $ %
Total Equity: $ %
Loans Rate Term
Construction Financing: $ % mos. %
Permanent Financing: $ % yrs. %
TIF Assistance $ %
Other: ( ) $ %
Total Sources of Funds $ 100%
Financing
Source Amount Terms: Years/Interest Contact Information
Equity:
Loans 1:
2:
3:
4:
Project Budget/Financial Information:
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Oshkosh
Financing
Policy and Application
12
Detailed Pro Forma (must correspond to line items for Uses of Funds on previous page)
Land Acquisition $
Demolition $
Site Clearance and Preparation
Infrastructure $
Utilities/removal $
Utilities/relocation $
Utilities/installation $
Hazardous Materials Removal $
Other( ) $
Total Site Clearance and Preparation
Soft Costs/Fees
Project Management ( %) $
General Contractor ( %) $
Architect/Engineer ( %) $
Developer Fee ( %) $
Appraisal $
Soil Testing $
Market Study $
Legal/Accounting $
Insurance $
Title/Recording/Transfer $
Building Permit $
Mortgage Fees $
Construction Interest $
Commissions $
Marketing $
Real Estate Taxes $
Other Taxes $
Other ( ) $
Other ( ) $
Sub-total Soft Costs/Fees $
Soft Cost Contingency $
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Oshkosh
Financing
Policy and Application
13
Pro Forma Income and Expense Schedule
Applicants whose projects involve the rental of commercial, retail, industrial, or living units must
submit project pro formas that identify income and expense projections on an annual basis for a
minimum eleven-year period. If you expect a reversion of the asset after a holding period please
include that in your pro forma as well. Please check with city staff to determine the time period
needed for the pro forma. Identify all assumptions (such as absorption, vacancies, debt service,
operational costs, etc.) that serve as the basis for the pro formas. Two sets of pro formas are to be
submitted. The first set should show the project without TIF assistance and the second set with TIF
assistance.
For owner-occupied industrial and commercial projects, detailed financial information must be
presented that supports the need for financial assistance (see below).
Analysis of Financial Need
Each application must include financial analyses that demonstrate the need for TIF assistance. Two
analyses must be submitted: one WITHOUT TIF assistance and one WITH TIF assistance. The applicant
must indicate the minimum return or profit the applicant needs to proceed with the project and
rationale for this minimum return or profit. The analyses will necessarily differ according to the type of
project that is being developed.
Rental Property: For projects involving rental of space by the developer to tenants (tenants include
offices, retail stores, industrial companies, and households), an internal rate of return on equity must
be computed with and without TIF assistance based on the pro forma of income and expense
prepared for the Income and Expense Schedule below. The reversion at the end of the ten-year
holding period must be based on the capitalized 11th year net operating income. The reversionary
value is then added to the 10th year cash flow before discounting to present value. State all
assumptions to the analyses.
For Sale Residential: Show profit as a percent of project cost (minus developer fee and overhead
and minus sales commissions and closing costs, which should be subtracted from gross sales
revenue). Other measure of profitability may be submitted, such as profit as a percent of sales
revenue.
Mixed Use Commercial/For-Sale Residential: Provide either separate analyses for each component
of the project or include in the revenue sources for the for-sale portion, the sale value of the
commercial component based on the net operating income of the commercial space at
stabilization. Indicate how the sale value was derived.
Owner-Occupied Commercial: For projects, such as "big-box" retail projects, provide copies of the
analyses that the company needs to meet or exceed the company's minimum investment threshold
(s) for proceeding with the project.
Competitive Projects: In instances where the City is competing with other jurisdictions for the project
(e.g., corporate headquarters, new manufacturing plant), present detailed analyses that
demonstrate the capital and operating cost differential between the proposed location( s) in
Oshkosh and locations that are seriously being considered by the applicant.
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Oshkosh
Financing
Policy and Application
14
Revenue Projections - Rental Project
Year 1 Year 2 >>Year11
Income rent per sf (or avg.) $ $ $
Commercial Rent $ $ $
Commercial Expense Recoveries $ $ $
Residential Rent $ $ $
Other Revenue: ( ) $ $ $
Gross Potential Income $ $ $
Commercial Vacancy % $ $ $
Residential Vacancy % $ $ $
Effective Gross Income (EGI) $ $ $
Expenses
Maintenance & Repairs $ $ $
Real Estate Taxes $ $ $
Insurance $ $ $
Management Fee $ $ $
Professional Fees $ $ $
Other Expense( ) $ $ $
Other Expense( ) $ $ $
Total Expenses $ $ $
Net Operating Income (NOI) $ $ $
Capital Expenses (reserves, tenant improvements, commissions) $ $ $
Debt Service $ $ $
Net Cash Flow (before depreciation) $ $ $
Reversion in Year 10
Year 11 NOI before Debt & Capital Expenses $
Capitalization Rate %
Gross Reversion $
Supplemental Information:
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Oshkosh
Financing
Policy and Application
15
Revenue Projects - For-Sale Project
Gross Sales Revenue
Housing Units Unit Type* Number Price/Unit
$ $
$ $
$ $
$ $
$ $
$ $
Total Housing Sales: $
*affordable units if any
Housing Unit Upgrades: $
Commercial Space Unit Type Size-sf Price per sf
$
$
$
Total Commercial Sales $
Total Gross Sales Revenue $
Cost of Sales
Commissions % $
Marketing % $
Closing % $
Other Costs ( ) % $
Total Costs of Sales % $
.
Net Sales Revenue $
Supplemental Information:
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Oshkosh
Financing
Policy and Application
16
Summary Letter
Provide a summary of the project in the form of a letter addressed to the City Manager.
The letter should not exceed two (2) pages in length and should include only the following
essential information about the project:
Note: In the "but for" discussion you must clearly describe why TIF is needed to help this
project and why the project will not/cannot proceed without such support. Failure
to clearly provide the "but for" explanation will delay action on your application.
Project Narrative
Provide an in-depth overview of the project in narrative format. The narrative must include
a description of the following aspects of the project:
Current condition of the site and historical overview that includes the size and
condition of any existing structures, environmental conditions, and past uses of
the site.
Proposed use(s) of project (e.g. industrial, commercial, retail, office, residential
for sale or for rental, senior housing, etc.)
Construction information about the project including: size of any existing
structure to be demolished or rehabbed; size of any new construction: types of
construction materials (structural and finish); delineation of square foot
allocation by use; total number and individual square footage of residential
units: type of residential units (e.g. for-sale, rental, condominium, single-family,
etc.); number of affordable residential units; number and type of parking
spaces; and construction phasing.
If in an existing TID or redevelopment area, confirm that this project is consistent
with the goals and objectives in the Project or Redevelopment Plan.
A summary of the proposed "green" features to be included in the project. All
projects that receive TIF assistance are encouraged to include environmentally
friendly features.
Description of site or building
Current and proposed uses
Description of end users
Project start and end dates
Profitability
Description of public benefits,
including job creation.
Overview of private-sector
financing
Amount of TIF assistance
requested
Summary of increment
projections
Name of developer and owner
Total development costs
Statement regarding why TIF is
essential and why the "but for"
provision will be met.
City
Oshkosh
Financing
Policy and Application
17
Filing Notes, and Agreement:
Filing Requirements
You must provide all of the items with your signed application:
1. An application fee of of the requested TIF assistance or whichever is
greater. This fee is to cover City costs associated with the TIF application
and does not cover the use of outside consultants, which if required be paid for
by the applicant. Make your check payable to the City of osh.
2. Site Maps: Provide a map that shows the location of the site. Also provide a map
that on the project and its immediate surroundings. Both maps should be no
larger inches. Larger maps be required for projects presented to the
Commission, Redevelopment Authority, or Common Council.
3. Renderings: Provide preliminary architectural drawings, plans and renderings
for the project. These drawings should be no larger than inches. Larger maps
be required for projects presented to the Commission, Redevelopment
Authority, or Common Council.
The City retains an administrative fee of of the annual tax increment
If the project requires planning and zoning approvals, you must make these applications
concurrent with this
Agreement
I, by signing this application, agree to the following:
1. I have read and abide by all the requirements of the City for Tax Incremental
Financing.
2. The information submitted is
3. I agree to pay all costs involved in developing Project Plan or Development
Agreement. costs may include, but not be limited to, bond counsel, outside
assistance, outside financial assistance, planning, engineering, etc. and all
costs in issuance of the bonds or loans to finance the
4. I understand that the City the right to deny approval, regardless of
preliminary approval or degree of construction completed before application
for final approval.
5. The undersigned authorizes the City of Oshkosh to check credit references and
financial and other inf
6. The undersigned also agrees to provide any additional information as may be
requested by the City after of io
TID #Name Termination Date
Projected Fund Balance
12/31/2023
Projected Fund Balance
at Termination
12 Division Street 4/24/2024 873,808 862,898
13 Marion Road/Pearl Ave. 9/22/2025 (512,823) 267,529
14 Mercy Medical 6/13/2027 1,404,156 4,362,888
15 Park Plaza 1/9/2028 3,091,706 3,528,905
16 100 Block Redevelopment 5/22/2028 610,858 1,364,661
17 City Centre 9/25/2028 776,914 739,523
18 SW Industrial #3 7/9/2029 (124,938) 2,825,605
19 NW Industrial Expansion 5/13/2026 904,676 1,733,340
20 South Side Fox River 7/12/2032 2,843,102 606,791
21 Fox River Corridor 2/14/2033 523,609 3,344,913
23 SW Industrial Park 6/9/2029 (2,553,342) (4,331,062)
24 Oshkosh Corp. 2/23/2037 6,208 3,462,219
25 City Center Hotel 5/22/2039 (202,937) 1,064,947
26 Aviation Business Park 2/26/2033 (3,602,924) (3,191,895)
27 North Main Street 7/8/2034 (907,293) 1,014,186
28 Beach Bldg. Redevelopment 6/14/2043 35,277 376,216
29 Morgan District 7/12/2043 27,748 289,220
30 Washington Building 8/23/2043 52,231 705,206
31 Buckstaff Redevelopment 2/28/2045 74,575 6,715,994
32 Granary Development 5/23/2044 5,689 31,999
33 Lamico Redevelopment 7/11/2044 783,892 4,379,570
34 Oshkosh Corp. Global HQ 1/23/2039 (17,790) 7,062,652
35 Oshkosh Ave. Corridor 1/23/2046 1,485,827 10,743,942
36 Merge Redevelopment Project 6/11/2046 (65,467) (1,544,701)
37 Aviation Plaza Redevelopment 7/23/2046 49,553 2,409,781
38 Pioneer Redevelopment 9/24/2046 638 249,096
39 Cabrini School Redevelopment 1/14/2048 (5,228) 151,970
40 Miles Kimball Redevelopment 2/9/2049 (43,299) 2,208,879
41 Smith School Redevelopment 10/12/2050 (10,929) 765,578
42 Morgan Crossing Phase II 4/26/2044 (2,975)
43 Mill on Main 6/28/2044 (27,790)
5,472,733$ 52,200,849$
City of Oshkosh TID Summary
Provided at December 6, 2023 Meeting
SUBJECT: CAPITALIZED FIXED ASSET POLICY
General: To establish a general policy for Capitalized Fixed Assets including standards for
valuation of assets with a useful life greater than one-year.
Objectives:
A. The City’s Record of Capital Assets shall include general fixed assets, i.e., non-
infrastructure assets. Infrastructure assets are assets that are immovable and of value
only to the City government, e.g., buildings, sewers, and streets. As a general rule,
“capitalized” items maintained within the City’s Record of Capital Assets shall have an
expected useful life greater than one year and a purchase, donated or assessed value
equal to or greater than $5,000. For computer equipment, initial operating software
shall be included but subsequent operating software and application software shall be
excluded.
B. Generally, repairs will not qualify for changing the initial capitalized value. Only major
replacements of components and/or additions, which significantly change the initial
capitalized value or significantly extend the expected useful life of any capitalized item
shall be considered in order to substantiate any subsequent year value change of an
asset maintained within the City’s Record of Capital Assets.
C. Asset Valuation
Departments shall record long-term assets at historic cost or, if the cost is not readily
determined, at estimated historic cost. Cost shall include applicable ancillary costs.
All costs shall be documented, including methods and sources used to establish any
estimated costs.
1. Purchased Assets – the recording of purchased assets shall be made on the basis
of actual costs, including all ancillary costs, based on vendor invoice or other
supporting documentation.
2. Salvage Value – the recording of purchased assets that are expected to be sold at
retirement should be recorded with the historical estimated sale value if in excess
of $5,000.00. If sale value is less than $5,000.00, normal depreciation for the
useful life will be used.
3. Self-Constructed Assets – All direct costs (including labor) associated with the
construction project shall be included in establishing a self-constructed asset
valuation. If a department is unable to specifically identify all direct costs an
estimate of the direct cost is acceptable, but must be supported by a reasonable
methodology.
4. Donated Assets – Fixed assets acquired by gift, donation or payment of a nominal
sum not reflective of the asset’s market value shall be assigned cost equal to the
fair market value at the time of acquisition.
5. Leased Property - Capital lease property should be recorded as an asset and
depreciated as though it had been purchased.
6. Dedicated Assets – Required installation by Developer of public improvements,
including but not limited to sanitary service mains, manholes, laterals and all
appurtenances, water mains, laterals, hydrants, valves and all appurtenances,
storm sewers, storm water management measures, streets, curb and gutter, street
lights, street signs, sidewalks will be dedicated to the City upon completion.
Recording of infrastructure assets will be made on the basis of actual costs,
including all ancillary costs, based on vendor invoice or other supporting
documentation provided by the Developer.
Fixed Asset Category Illustrative Items and Capitalization Threshold
Furniture Chairs, tables, bookcases, file cabinets or other furniture
items, which individually cost $5,000 or more with an expected
useful life greater than one year.
Office Equipment Postage machine and copiers or other office equipment items
that individually cost $5,000 or more with an expected useful
life greater than one year.
Computers and associated equipment Large computers, personal computers (PCs), printers, copiers
that individually cost $5,000 or more with an expected useful
life greater than one year.
Specialized Public Safety Equipment Certain communications equipment that individually cost
$5,000 or more with an expected useful life greater than one
year.
Infrastructure Streets curb & gutter, public right-of-way, street light systems,
bridges, storm sewers, sewer laterals, culverts, and water
mains that individually cost $25,000 or more with an expected
useful life greater than one year.
Building and Improvements Permanent Structures, building mechanical equipment,
parking lots and lighting that individually cost $5,000 or more
with an expected useful life greater than one year.
Library Collection Books, CD’s, DVD’s, VHS tapes, Periodicals with an expected
useful life greater than one year.
Motorized road equipment, i.e. cars, trucks, or
ambulances
All permanent or semi-permanent attachments shall be
included, e.g., snow plows, salt spreaders, etc.
Motorized non-road equipment, e.g., ditch diggers, air
compressors
All equipment that individually cost $5,000 or more with an
expected useful life greater than one year.
Other non-motorized equipment not attached to or
associated with motorized equipment
All equipment that individually cost $5,000 or more with an
expected useful life greater than one year.
Updated for February 7, 2024 Meeting
SUBJECT: CAPITALIZED FIXED ASSET POLICY
General: To establish a general policy for Capitalized Fixed Assets including standards for
valuation of assets with a useful life greater than one-year.
Objectives:
A. The City’s Record of Capital Assets shall include general fixed assets, i.e., non-
infrastructure assets. Infrastructure assets are assets that are immovable and of value
only to the City government, e.g., buildings, sewers, and streets. As a general rule,
“capitalized” items maintained within the City’s Record of Capital Assets shall have an
expected useful life greater than one year and a purchase, donated or assessed value
equal to or greater than $5,000. For computer equipment, initial operating software
shall be included but subsequent operating software and application software shall be
excluded.
B. Generally, repairs will not qualify for changing the initial capitalized value. Only major
replacements of components and/or additions, which significantly change the initial
capitalized value or significantly extend the expected useful life of any capitalized item
shall be considered in order to substantiate any subsequent year value change of an
asset maintained within the City’s Record of Capital Assets.
C. Asset Valuation
Departments shall record long-term assets at historic cost or, if the cost is not readily
determined, at estimated historic cost. Cost shall include applicable ancillary costs.
All costs shall be documented, including methods and sources used to establish any
estimated costs.
1. Purchased Assets – the recording of purchased assets shall be made on the basis
of actual costs, including all ancillary costs, based on vendor invoice or other
supporting documentation.
2. Salvage Value – the recording of purchased assets that are expected to be sold at
retirement should be recorded with the historical estimated sale value if in excess
of $5,000.00. If sale value is less than $5,000.00, normal depreciation for the
useful life will be used.
3. Self-Constructed Assets – All direct costs (including labor) associated with the
construction project shall be included in establishing a self-constructed asset
valuation. If a department is unable to specifically identify all direct costs an
estimate of the direct cost is acceptable, but must be supported by a reasonable
methodology.
4. Donated Assets – Fixed assets acquired by gift, donation or payment of a nominal
sum not reflective of the asset’s market value shall be assigned cost equal to the
fair market value at the time of acquisition.
5. Leased Property - Capital lease property should be recorded as an asset and
depreciated as though it had been purchased.
6. Dedicated Assets – Required installation by Developer of public improvements,
including but not limited to sanitary service mains, manholes, laterals and all
appurtenances, water mains, laterals, hydrants, valves and all appurtenances,
storm sewers, storm water management measures, streets, curb and gutter, street
lights, street signs, sidewalks will be dedicated to the City upon completion.
Recording of infrastructure assets will be made on the basis of actual costs,
including all ancillary costs, based on vendor invoice or other supporting
documentation provided by the Developer.
1. Capital Outlay – Individual items with minimum value/cost of at least $5,000 AND life greater than one year.
2. Capital Project – Individual items with minimum value/cost of at least $10,000 AND has expected life of at least ten years.
NEW
OBJECT#OBJECT DESCRIPTION DEFINITIONS/VENDORS
7202 Office Equipment Desks, Chairs, Cubicles, Toughbooks, Filing Cabinets, Telephones, GIS
Equipment
7204 Machinery & Equipment Excavators, Skid steers, Mowers, Turnout Gear, Fire Hose, Generators,
Equipment Attachments
7210 Motor Vehicles - Licensed & Road Ready Vehicle to include all specialty modifications to be put into service and road
ready. Include registration, licensing, and equipment needed for
modifications.
7212 Radios - Emergency Communication Equipment Two-way Radios
7214 Buildings & Building Improvements Building Definition: A building is a structure that is permanently attached
to the land, has a roof, is partially or completely enclosed by walls and is
not intended to be transportable or moveable. Buildings that are ancillary
to the state’s highway network, such as rest area facilities and toll
buildings, are reported as infrastructure rather than as buildings.
Building Improvement Definition: Building improvements are capital
events that materially extend the useful life of a building or increase its
value, or both. A building improvement should be capitalized and recorded
as an addition of value to the existing building if the expenditure meets the
capitalization threshold.
7216 Land & Land Improvements Land Definition: Land is the surface or crust of the earth that can be used
to support structures and may be used to grow crops, grass, shrubs and
trees. Land is characterized as having an unlimited (indefinite) life.
Land Improvement Definition: Land improvements consist of site
preparation and site improvements (other than buildings) that ready land
for its intended use. The costs associated with improvements to land are
added to the land value.
7218 Road Improvements Road Improvements: means improvements to existing roads, construction
of new roadway improvements and acquisition of land necessary or
convenient for the improvement of traffic circulation.
7222 Fine Art Exhibition Museum - Works of art and historical treasures are collections or
significant individual items that are owned by a state agency and held for
public exhibition, education or research as part of a public service rather
than for financial gain. The costs associated with presenting the Exhibition
are added to the value.
7230 Computer Software Software/Subscriptions that exceed 12 months and exceeds $5,000 in costs.
7200's OBJECT SERIES
Capital Outlay, Capital Project, and Capital Improvement Program