HomeMy WebLinkAbout25. 13-71
R E V I S E D
FEBRUARY 12, 2013 13-71 RESOLUTION
(CARRIED __6-0_____ LOST _______ LAID OVER _______ WITHDRAWN_______)
PURPOSE: AUTHORIZE BORROWING FROM STATE LAND TRUST /
AVIATION BUSINESS PARK
INITIATED BY: CITY ADMINISTRATION
WHEREAS, by the provisions of sec. 24.66 of the Wisconsin Statutes, all
municipalities may borrow money for such purposes in the manner prescribed; and,
WHEREAS, by the provisions of Chapter 24 of the Wisconsin Statutes, the Board of
Commissioners of Public Lands of Wisconsin is authorized to make loans from the State
Trust Funds to municipalities for such purposes. (Municipality as defined by Sec. 24.60(2),
Wisconsin Statutes, means a town, village, city, county, public inland lake protection and
rehabilitation district, town sanitary district created under sec. 60.71 or 60.72, metropolitan
sewerage district created under sec. 200.05 or 200.23, joint sewerage system created
under sec. 281.43 (4), school district or technical college district.)
NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of
Oshkosh that the City of Oshkosh, in the County of Winnebago, Wisconsin, is authorized
to borrow from the Trust Funds of the State of Wisconsin, a sum of up to Six Hundred
Forty Thousand Dollars ($640,000), for the purpose of financing acquisition and ancillary
costs for Aviation Business Park, and for no other purpose.
The loan is to be payable within 10 years from the 15th day of March preceding the
date the loan is made. The loan will be repaid in annual installments with interest at the
rate of 2.75 percent per annum from the date of making the loan to the 15th day of March
next and thereafter annually as provided by law.
BE IT FURTHER RESOLVED, that there shall be raised and there is levied upon all
taxable property, within the City of Oshkosh, in the County of Winnebago, Wisconsin, a
direct annual tax for the purpose of paying interest and principal on the loan as they
become due.
BE IT FURTHER RESOLVED, that no money obtained by the City of Oshkosh by
such loan from the state be applied or paid out for any purpose except financing
acquisition and ancillary costs for Aviation Business Park without the consent of the Board
of Commissioners of Public Lands.
FEBRUARY 12, 2013 13-71 RESOLUTION
CONT'D
BE IT FURTHER RESOLVED, that in case the Board of Commissioners of Public
Lands agrees to make the loan, that the City Manager and Clerk of the City of Oshkosh in
the County of Winnebago, Wisconsin, are authorized and empowered, in the name of the
City to execute and deliver to the Commission, certificates of indebtedness, in such form as
required by the Commission, for any sum of money that may be loaned to the City pursuant
to this resolution. The City Manager and Clerk of the City will perform all necessary actions
to fully carry out the provisions of Chapter 24 Wisconsin Statutes, and these resolutions.
BE IT FURTHER RESOLVED, that this preamble and these resolutions and the
"aye"and "no"vote by which they were adopted, be recorded, and that the Clerk of this City
forward this certified record, along with the application for the loan, to the Board of
Commissioners of Public Lands of Wisconsin.
City of Oshkosh `
Community Development Department Of HKOrH
215 Church Avenue, Oshkosh,WI 54903 ON THE WATER
TO: Honorable Mayor and Members of the Common Council
FROM: Allen Davis, Community Development Director
DATE: February 7, 2013
SUBJECT: Authorize Borrowing from State Land Trust of$640,000 for land purchase
Aviation Business Park
BACKGROUND
The City of Oshkosh is purchasing land in conjunction with Winnebago County to create
an Aviation Business Park. It is also the City's plan to create a Tax Increment Finance
District to finance and repay the land purchase and public infrastructure improvements
on the property.
This borrowing would allow the City to borrow the funds necessary to pay the property
owners and pay for the environmental, surveying and legal costs required for the
property acquisition.
ANALYSIS
The following is an estimate for the land acquisition costs:
1. Land costs $608,460
2. Phase 1 Environmental 3,500
3. Surveying and legal descriptions 19,000
4. Closing Costs 600
5. Pro-rated Property Taxes 115
Total Acquisition costs: $631,675
Staff is suggesting that the Council approve a borrowing of $640,000 in case there are
other acquisition costs that we cannot account for at this time. The State Land Trust
offers very attractive rates and terms for the City's economic development projects.
Typical General Obligation borrowing may be available for this public purpose in the
next year.
Closing on the property would occur after the County takes action on their portion of the
acquisition on February 26, 2013 and the City Council has taken action on the creation
of the proposed Tax Increment Finance District.
FISCAL IMPACT
The repayment of the proposed State Land Trust loan is based on the Tax Increment
generated in Tax Increment Finance District#26 to be created within the next month.
The closing on the property will occur after the land is attached and City Council
approves the TID #26 Project Plan so that the land acquisition can be repaid by TID
#26 revenues. TID #26 Project Plan projects about $25,000,000 in new value created
in the TID.
RECOMMENDATION
The City Council authorizes the borrowing $640,000 from the State Land Trust.
Approved,
City Manager