HomeMy WebLinkAbout27. 12-243
MAY 9, 2012 12-243 RESOLUTION
(CARRIED__5-2____LOST______LAID OVER______WITHDRAWN______)
PURPOSE: APPROVE HEALTHY NEIGHBORHOOD INITIATIVE
FUNDING THROUGH TID #6
INITIATED BY: DEPARTMENT OF COMMUNITY DEVELOPMENT
WHEREAS, on March 22, 2005 the City of Oshkosh amended and adopted a
Comprehensive Plan to guide the city’s growth and development; and
WHEREAS, the Comprehensive Plan contained recommendations regarding
improving the City’s overall housing stock and implementing neighborhood improvement
strategies in priority areas; and
WHEREAS, the City of Oshkosh seeks to implement neighborhood and housing
improvement programming through creation of a Healthy Neighborhoods Initiative; and
WHEREAS, implementation of a Healthy Neighborhood Initiative will require the
allocation of various forms of revenue to fund specified program activities to improve the
neighborhood housing stock per the attached program draft; and
WHEREAS, the City of Oshkosh created Tax Increment District (TID) #6 on
November 17, 1988, and has completed implementation of the Project Plan and has
paid off the aggregate of all its project costs; and
WHEREAS, State of Wisconsin Statutes require that a TID be terminated after all
project costs have been paid off, except that under Wisconsin Statute Section
66.1105(6)(g), a TID may be extended for up to one (1) year to utilize the last year of
tax increment to improve the city’s housing stock.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that protection and improvement of the City’s neighborhoods and housing
stock is critical to maintaining a healthy and sustainable community.
BE IT FURTHER RESOLVED that funding a Healthy Neighborhoods Initiative
that seeks to improve priority neighborhoods and housing benefits all residents by
helping to maintain or increase property values in transitional and distressed
neighborhoods.
MAY 9, 2012 12-243 RESOLUTION
CONTD
BE IT FURTHER RESOLVED that tax increment is available in TID #6 to fund a
Healthy Neighborhood Initiative, and to fund project expenditures as permitted under
Wisconsin Statutes Section 66.1105(6)(g)3.
BE IT FURTHER RESOLVED that the City of Oshkosh will extend the life of TID
#6 for 12 months in order to utilize the final year's increment to fund the Healthy
Neighborhood Initiative that will improve the housing stock of the community.
Healthy Neighborhood Initiative
Vision: That all neighborhoods throughout the community are attractive, well
maintained, and desirable places to live that inspire and create competition
within the local real estate market.
Mission: Strengthen neighborhoods throughout the community for the benefit of all
residents and income levels.
Program: Concentrate resources(public and private) into program neighborhoods to
achieve revitalization. The goal is to attract homeowners and private investment
back into the participating neighborhoods. It is an asset based/market approach
that treats the"neighborhood" as the customer and seeks to strengthen
neighborhood components to achieve success.
Purpose: The purpose of the program is to spur investment and home ownership into
participating neighborhoods to generate momentum to spur further investment to
ultimately increase property values in the neighborhood and City as a whole.
Objectives: Establish a Healthy Neighborhoods Endowment to promote the following
neighborhood stabilization objectives:
• Facilitate Neighborhood Organizational Development and Identity
• Increase Resident Involvement
• Increase Home Investment
• Improve the Existing Housing Stock
• Increase Home Ownership
• Create Higher Standards of Property Improvement and Maintenance
• Enhance the Public Realm
• Create Confidence in the Neighborhood
Funding: Using a combination of funding sources that would include funds such as Capital
Improvement(for public realm improvements), CDBG and HUD grants, and the
last year of increment from terminating Tax Increment District.
Uses:
• Homeowner Rehabilitation Loans and Grants
• Homebuyer Programs
• Property acquisition and clearance to remove deteriorated housing stock
• Public realm improvements such as terrace tree planting, decorative lighting,
neighborhood signage, etc.
• Design and Rehab Services that add value and "curb appeal"to properties in
participating neighborhoods
• Developing partnerships with lenders, building contractors,home improvement
centers, and local housing and neighborhood improvement organizations such
as Habitat for Humanity,NeighborWorks, and Advocap to concentrate service
delivery in participating neighborhoods.
OJHKOJH
ON THE WATER
TO: Honorable Mayor and Members of the Common Council
FROM: Darryn Burich
Planning Director
DATE: May 9, 2012
RE: Extend life of TID # 6 one year to fund Healthy Neighborhood Initiative
BACKGROUND
The City would like to continue to work on neighborhood revitalization activities per the
recommendations of its Comprehensive and Strategic Plans which have both identified the need to
improve neighborhoods as key goals for the community. To that end, the City has already undertaken
some revitalization efforts to meet these goals (i.e. Near East,Neighborworks, Targeted Rehab, etc).
In order to achieve any type of sustainable revitalization success, funds must be programmed and
resources targeted in that regard to effect change in transitional and distressed neighborhoods. The
City's funding of neighborhood revitalization has been relatively limited to its Community
Development Block Grant(CDBG) and more recently some CIP funds designated for public
improvements.
As the resource needs out way funds on hand, staff must identify other potential sources of funds to
finance these revitalization efforts and has identified TIF as a potential revenue source. Wisconsin
statutes permit the use of the final year of tax increment to be used to fund improvements to the
housing stock (primarily benefitting affordable housing) after all other district costs have been paid if
the Council approves a resolution extending the year of the TID for these purposes. No project plan
amendments are required nor is the Plan Commission or Joint Review Board required to approve the
action.
In this case staff is requesting that TID # 6 (Northwest Industrial Park) be extended 12 months to allow
the use of one year of increment, which is estimated at $206,000, to be programmed into a
neighborhood revitalization fund that is currently being developed. Only the last year of increment can
be used and no funds from the district's cash balance can be utilized.
ANALYSIS
At this point staff is only requesting that Council reserve the funds for the "Healthy Neighborhood
Initiative" while staff develops the actual program that will be approved by Council at a future date.
Should a program not develop acceptable to Council, the reserved funds will simply be added back to
the TID's cash balance and be distributed upon termination.
FISCAL IMPACT
None anticipated. Future budget allocations to this program would be subject to Council approval.
RECOMMENDATION
Staff recommends approval of the resolution to allocate the final year of TID # 6 increment to a
housing improvement program.
Approved,
City Manager