HomeMy WebLinkAbout11-278JUNE 28, 2011 11 -278 RESOLUTION
(CARRIED 7 -0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE PAYGO PAYMENTS FOR TID #14 — BELLA VISTA
INITIATED BY: COMMUNITY DEVELOPMENT
WHEREAS, there is an executed Development Agreement, dated August 3,
2007, between the City of Oshkosh and CRL LLC, an Illinois limited liability company,
for the rehabilitation of a portion of the former Mercy Hospital site for and elderly
housing project named Bella Vista; and
WHEREAS, said Development Agreement states that the Common Council shall
specifically authorize and direct staff to make payments to the developer in accordance
with the agreement, for the principal and interest of the TIF Bond, to the extent that
there is Available Tax Increment in the special fund of the TIF District to do so; and
WHEREAS, said Development Agreement states that these payments shall be
included in the annual City budget, and once the budget is approved, the payments
shall be considered approved and payable to the Developer after November 1 of each
applicable year; and
WHEREAS, the Developer has complied with all required tasks that must be
performed per the Development Agreement, and is now entitled to annual payments on
the TIF Bond;
BE IT RESOLVED by the Common Council of the City of Oshkosh that staff is
hereby directed to make payments on the TIF Bond in accordance with said
Development Agreement.
Money for this purpose is hereby appropriated from:
Acct. No. 522 - 1040 - 6448 -00000 TIF #14 Fund — Special Services
0
OfHKOlH
ON THE WATER
TO: Honorable Mayor and Members of the Common Council
FROM: Darryn Burich
Director of Planning Services
DATE: June 23, 2011
RE: Approve paygo payments for TID #14 -Bella Vista Project
BACKGROUND
In 2002 the City of Oshkosh approved Amendment No. 1 to TID # 14 involving the old Mercy Medical Center
complex on the City's east side on Hazel Street. The purpose of the TID was to promote revitalization of the
300,000 square foot plus medical campus by providing financial incentives to offset rehabilitation costs.
In 2007 the City entered into a development agreement with CRL LLC to fund (via the City's first paygo TIF
agreement) rehabilitation of the structure into a mixed use development including market rate apartments,
offices, and elderly housing in a combination of assisted living and senior housing units. The paygo agreement
specified that the developer would invest a minimum of $15,700,000 into the project, create a minimum of
$20,000,000 in value. For that the City issued a $2,708,000 Tax Increment Revenue Bond (not including
interest) that would be repaid from the tax increment generated at the site. The work has been completed, F
occupancy issued, and property taxes paid on the property so annual payments can now be made to retire t e
bond debt in compliance with the development agreement.
The resolution before Council authorizes the City to make its annual payment to the developer under the terms
of the development agreement and the actual amount of the payments will be identified in the City's annual
budget in 2012 and beyond.
ANALYSIS
City staff and the City's financial consultant, Ehlers, have reviewed the project costs and tax increments and
recommend the annual payments to be made in accordance with the development agreement.
FISCAL LWACT
None anticipated as any payments made to the developer will be taken from the positive increment generated by
the development and after all real estate taxes attributable to the project have been made.
RECOMMENDATION
Recommend authorization to make annual payments in accordance with the development agreement.
Approved,
City Manager