HomeMy WebLinkAbout38. 13-105
FEBRUARY 26, 2013 13-105 RESOLUTION
(CARRIED___7-0____LOST________LAID OVER________WITHDRAWN________)
PURPOSE: APPROVE TAX INCREMENT DISTRICT NO. 26 PROJECT
PLAN; DESIGNATE TAX INCREMENT DISTRICT NO. 26
BOUNDARIES; CREATE TAX INCREMENT DISTRICT NO. 26
AVIATION BUSINESS PARK
INITIATED BY: CITY ADMINISTRATION
PLAN COMMISSION RECOMMENDATION: Approved
WHEREAS, pursuant to Section 66.1105, Wis. Stats., the City of Oshkosh proposes
to create Tax Increment District No. 26 Aviation Business Park; and
WHEREAS, the City of Oshkosh Plan Commission has prepared and adopted a
project plan for Tax Increment District No. 26 Aviation Business Park, which:
1) Includes a statement listing the kind, number and location of all proposed public
works or improvements within such District.
2) Contains an economic feasibility study.
3) Contains a detailed list of estimated project costs.
4) Contains a description of the methods of financing all estimated project costs and
the time when such costs or monetary obligations related thereto are to be incurred.
5) Includes a map showing existing uses and conditions of real property in such
District.
6) Includes a map showing proposed improvements and uses therein.
7) Contains a list of estimated non-project costs.
8) Contains a statement of a proposed method for the relocation of any person to be
displaced.
9) Indicates how the creation of TID No. 26 promotes the orderly development of the
City.
10) Contains an opinion of the City Attorney that the Plan complies with Section
66.1105(4)(f), Wis. Stats.
and
WHEREAS, the Plan Commission has held a public hearing on the creation of TID
No. 26 and the proposed boundaries thereof and has notified the Chief Executive Officers
of all local government entities having the power to levy taxes on property within the
District, including the School Board of any school district which includes property within the
District pursuant to Section 66.1105, Wis. Stats.; and
FEBRUARY 26, 2013 13-105 RESOLUTION
CONT'D
WHEREAS, the City of Oshkosh Plan Commission affirms the following per the TID
No. 26 Project Plan:
1) The district is an industrial TID.
2) The improvements contemplated in TID #26 Aviation Business Park, are likely to
significantly enhance the value of substantially all real property in TID #26.
3) Not less than 50% of the real property within TID #26 is suitable for industrial
development and zoned for industrial uses.
4) Implementation of this Project Plan is consistent with the City’s 2005
Comprehensive Plan and its associated amendments and additions.
5) Project costs associated with implementing this project plan are consistent with the
purpose for which the District was created.
6) The equalized value of taxable property of the district plus all existing districts does
not exceed 12% of the total equalized value of taxable property within the city.
NOW, THEREFORE, BE IT RESOLVED that the Common Council of the City of
Oshkosh approves said Project Plan for Tax Incremental District No. 26 Aviation Business
Park, pursuant to the provisions of Section 66.1105, Wis. Stats.
BE IT FURTHER RESOLVED that the Common Council of the City of Oshkosh
hereby designates the boundaries of TID No. 26 as described in “Exhibit A”.
BE IT FURTHER RESOLVED that the Common Council of the City of Oshkosh
hereby approves creation of Tax Incremental Financing District No. 26 Aviation Business
Park.
BE IT FURTHER RESOLVED that TID No. 26 is an industrial district.
BE IT FURTHER RESOLVED that the improvements contemplated in TID No. 26
Aviation Business Park, are likely to enhance the value of all real property in
significantly
TID No. 26.
BE IT FURTHER RESOLVED that the value of equalized, taxable property in TID
No. 26, together with all other established Tax Incremental Districts, does not exceed 12%
of the total equalized value of taxable property within the City of Oshkosh.
BE IT FURTHER RESOLVED that not less than 50% of the real property within TID
#26 is suitable for industrial uses within the meaning of 66.1101, Wis. Stats., and has been
zoned for industrial uses.
BE IT FURTHER RESOLVED that all property within TID #26 is zoned for industrial
use and will remain zoned for industrial uses for the life of TID #26.
FEBRUARY 26, 2013 13-105 RESOLUTION
CONT'D
BE IT FURTHER RESOLVED that all property within TID #26 was not within the City
boundaries on January 1, 2004 and said property was voluntarily attached to the City in
2013 pursuant to an adopted Cooperative Plan between the City and Town of Nekimi as set
forth in Section 66.0307, Wis. Stats., and approved by the Wisconsin Department of
Administration, that identifies areas within the Town of Nekimi as expansion areas to attach to
the City of Oshkosh.
BE IT FURTHER RESOLVED that the project costs are consistent with the purposes
for which the Tax Incremental District is created with the primary objective being to provide
improvements necessary to facilitate the creation and development of an industrial park
promoting aviation related industrial development within TID #26.
"EXHIBIT A"
TIF 26 AVIATION BUSINESS PARK
LEGAL DESCRIPTION
A PARCEL OF LAND CONTAINING ALL OF THE WEST ½ OF THE NORTHEAST ¼ AND
PART OF THE SOUTHEAST ¼ OF THE NORTHEAST ¼ OF SECTION 11, TOWNSHIP
17 NORTH, RANGE 16 EAST, 14TH WARD, CITY OF OSHKOSH, WINNEBAGO
COUNTY, WISCONSIN BOUNDED AND DESCRIBED AS FOLLOWS: BEGINNING AT
THE NORTH ¼ CORNER OF SECTION 11, TOWNSHIP 17 NORTH, RANGE 16 EAST;
THENCE SOUTH 89°27’34” EAST, 1,310.03 FEET ALONG THE NORTH LINE OF SAID
QUARTER LINE; THENCE SOUTH 00°23’14” WEST, 1,979.99 FEET ALONG THE EAST
LINE OF THE WEST ½ OF SAID NORTHEAST ¼; THENCE SOUTH 89°16’44” EAST,
112.87 FEET ALONG THE NORTH LINE OF THE SOUTH ½ OF THE SOUTHEAST ¼ OF
THE NORTHEAST ¼; THENCE SOUTH 00°27’38” WEST, 660.11 FEET TO A POINT ON
THE SOUTH LINE OF NORTHEAST ¼ OF SAID SECTION 11; THENCE NORTH
89°13’07” WEST, 1,419.40 FEET ALONG SAID SOUTH LINE OF NORTHEAST ¼ OF
SAID SECTION 11 TO THE CENTER OF SAID SECTION 11; THENCE NORTH 00°19’43”
EAST, 2,634.51 FEET ALONG THE WEST LINE OF THE NORTHEAST ¼ OF SAID
SECTION 11 TO THE POINT OF BEGINNING. SAID PARCEL CONTAINS 3,525,537
SQUARE FEET OR 80.9352 ACRES, MORE OR LESS.
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The City of Oshkosh creates and maintains GIS map and data for its own use. They may show the
approxima:e relative location of properfy: boundaries and other feature tom a variety of sccrces. Printing Date:1116/2013 0./HKOf H
These map(sycataset E'T provided for inforrator purposes only and may not be sLfficient or
appropriate for legal engineeitng, or suiveying purposes, They are provided 'AS,-IS: without Prepared by:City of Oshkosh,WI ON THE WATER
waranties of any kind and the Cl of Oshkosh assumes no liability for use or misuse.
OJHKOJH
ON THE WATER
TO: Honorable Mayor and Members of the Common Council
FROM: Darryn Burich
Director of Planning Services
DATE: February 21, 2013
RE: Approve Tax Increment District No. 26 Project Plan; Designate Tax Incremental
District No. 26 Boundaries; Create Tax Incremental District No. 26 Aviation
Business Park (Plan Commission Recommend Approval)
BACKGROUND
TID #26 is being proposed to facilitate the creation of a new industrial park on the City's
southeast side adjacent to Wittman Regional Airport south of Ripple Avenue. The primary
purpose in creating the TID is to pay for land acquisition and infrastructure costs associated
with creating the park through increased tax revenues generated by the new development in
the park. The new 82 acre industrial park will be named the Aviation Business Park with the
intent of marketing the park for aviation related industry due to proximity and direct access to
the airport facility.
The Project Plan includes a statement listing the kind, number, and location of proposed
improvements. 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. The Project Plan identifies
various district costs with the majority of costs going into physical development of public
infrastructure within the park estimated at approximately $4.5 million.
ANALYSIS
The overall area within the proposed TID is estimated at approximately 82 acres and as
currently laid out creates 16 developable parcels of differing sizes. The plan involves
constructing a new street south of Ripple Avenue that will create developable areas on either
side of the new street. The parcels on the west side of the street that are adjacent to the
airport facility, will have the ability to access the airport through a gate agreement and airport
taxi way that will be constructed on these parcels.
The park is being developed with the ability to expand to the south and east where the lands
are generally undeveloped and in agricultural usage.
Determination of economic feasibility for the district is based on an initial public investment of
approximately $4.5 million which will be used to acquire land and develop an 82 acre
industrial park. The total estimated value of the anticipated development within the district
when it is dissolved at the end of its allowed life is expected to be approximately $24.8 million
which will generate approximately $520,000 in property taxes annually. The projected value
of the tax increment over the life of the district is estimated at approximately $6.8 million.
An economic impact study related to the creation of the Aviation Business Park was
conducted by Winnebago County UW-Extension with estimated results based on three
potential build-out scenarios representing the types of airport and aircraft businesses that are
likely to be located at or near Wittman Regional Airport. Results of the three scenarios
predict between 250-1000 jobs being created with multiplier impacts (based on the idea that
employment of one additional person causes ripple effects resulting from this person's
consumption of goods in the economy) distributed across major industry sectors and
illustrates estimated impacts to state and local revenues associated with each scenario. The
results of this study are included as Appendix B —Wittman Airport Scenario Impacts in the
Project Plan.
Land Use Consistency
The City's 2005 Comprehensive Plan identifies the subject park area, and the potential
expansion area to the south, as appropriate for industrial development, which is consistent
with the land use recommendations of the City's 1993 and 1973 Comprehensive Plans.
Additionally, the City's 1963 Comprehensive Plan identified the area to the north near
Waukau Avenue as an industrial expansion area and illustrates that community has been
planning for the general industrialization of this corridor since the early 1960's.
Presently the area to the east of the TID is identified as residential in the 2005
Comprehensive Plan. This represents a change in land use from the previous
Comprehensive Plans but is not due to a change in the appropriateness of industrial
development for this corridor but rather an accommodation to the creation of conflicting
residential land uses (non-agricultural residential) oriented to Oregon Street and generally
created through certified survey map without regard to the City's adopted Comprehensive
Plan land use recommendations for the area.
Please refer to the TID # 26 Project Plan for more detailed information regarding the project.
The proposed TID is consistent with the City's recently adopted TID policy and guidelines due
primarily to the project's economic development implications.
RECOMMENDATION
The Plan Commission approved the TID # 26 Project Plan and boundaries at its February 5,
2013 meeting.
Approved,
City Manager
ITEM: PUBLIC HEARING ON PROPOSED CREATION OF TAX INCREMENT
DISTRICT #26 AVIATION BUSINESS PARK: DESIGNATION OF
BOUNDARIES AND APPROVAL OF PROJECT PLAN - City
Administration
Plan Commission meeting of February 5, 2013
Prior to taking action on Tax Incremental District (TID) # 26 and the designation of boundaries
for said Tax Incremental District, the Plan Commission is to hold a public hearing and take
comments concerning the proposed creation of the TID. This public hearing is required as part
of the formal process the City must follow in the creation of a TID.
GENERAL DESCRIPTION/BACKGROUND
TID #26 is being proposed to facilitate the creation of a new industrial park on the City's
southeast side adjacent to Wittman Regional Airport. The new 82 acre industrial park will be
named the Aviation Business Park with the intent of marketing the park for aviation related
industry due to proximity and direct access to the airport facility.
The Project Plan includes a statement listing the kind, number, and location of proposed
improvements. 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. The Project Plan identifies various
district costs with the majority of costs going into physical development of public infrastructure
within the park estimated at approximately $4.5 million.
Project costs will be financed through sales of general obligation notes and repaid through the
property tax increment generated on new development in the TID. Tax Increment Law,
§66.1105 of Wisconsin Statutes, provides a mechanism that enables cities to rehabilitate blighted
areas, improve business areas, and/or develop industrial sites. The intent of the law is to defray
the cost of improvements in a Tax Increment District by using incremental tax revenue generated
by new development. The value increment is the difference between the base value of the TID at
the time of creation and the increased value of the property in subsequent years until the TID is
dissolved. It is the value increment generated from new development that is used to retire the
debt incurred by the city in implementation of project activities. TIDs provide benefits to all
taxing entities by promoting development of new taxable value that may not otherwise occur.
ANALYSIS
The overall area within the proposed TID is estimated at approximately 82 acres and as currently
laid out creates 16 developable parcels of differing sizes. The plan involves constructing a new
street south of Ripple Avenue that will create developable areas on either side of the new street.
The parcels on the west side of the street that are adjacent to the airport facility, will have the
ability to access the airport through a gate agreement and airport taxi way that will be
constructed on these parcels.
The park is being developed with the ability to expand to the south and east where the lands are
generally undeveloped and in agricultural usage. The City's Comprehensive Plan identifies the
subject park area and the potential expansion area to the south as appropriate for industrial
development. The area to the east is identified as residential due to the presence of some
scattered housing developed in the town through certified survey maps. It will be appropriate to
reanalyze this area's long term land use at a future time to determine if and how much the
industrial land use needs to be expanded.
Determination of economic feasibility for the district is based on an initial public investment of
approximately $4.5 million which will be used to acquire land and develop an 80 acre industrial
park. The total estimated value of the anticipated development within the district when it is
dissolved at the end of its allowed life is expected to be approximately $24.8 million which will
generate approximately $520,000 in property taxes annually. The projected value of the tax
increment over the life of the district is estimated at approximately $6.8 million. The average
value per acre of manufacturing classed properties within existing Industrial Parks is
approximately $233,000 and was used to determine the anticipated future values within the
proposed TID.
An economic impact study related to the creation of the Aviation Business Park was conducted
by Winnebago County UW-Extension with estimated results based on three potential build-out
scenarios representing the types of airport and aircraft businesses that are likely to be located at
or near Wittman Regional Airport. Results of the three scenarios predict between 250-1000 jobs
being created with multiplier impacts (based on the idea that employment of one additional
person causes ripple effects resulting from this person's consumption of goods in the economy)
distributed across major industry sectors and illustrates estimated impacts to state and local
revenues associated with each scenario. The results of this study are included as Appendix B—
Wittman Airport Scenario Impacts in the Project Plan.
RECOMMENDATIONS/CONDITIONS
Planning Services asks that the Plan Commission approve the boundaries of TID # 26 and the
TID # 26 Project Plan, and recommend approval of the TID boundaries and Project Plan to the
Common Council.
The Plan Commission approved of the boundaries and Project Plan for TID #26 as requested.
The following is the Plan Commission's discussion on this item.
Mr. Buck presented the item and reviewed the site and surrounding area and the details of the
project plan. He described how the public improvements would be handled and reviewed the site
plan for the proposed business park. He stated that the land use was consistent with the
Comprehensive Plan and discussed the job creation that would be generated due to the
development of the industrial park.
Mr. Borsuk inquired what the area was designated for as far as land use in the Comprehensive
Plan.
Mr. Burich responded that the area was designated for manufacturing use from the area of the
proposed industrial park and to the south with the only residential area being located to the east.
This was reflected in the current and previous Comprehensive Plans.
Mr. Borsuk commented that the area had been designated for manufacturing use since the
1990's.
Mr. Thorns questioned if anything had changed since the 90's that would cause concerns such as
limitations on height of buildings near the airport.
Item-Creation of TID#26-Aviation Business Park 2
Mr. Burich indicated that it was rated as an Air Three zone and prohibited new residential uses in
this area however height limitations were not significant.
Mr. Fojtik inquired what type of uses would be allowed in the district.
Mr. Buck responded that the district would have an M-3 General Industrial District zoning
classification with a planned development overlay.
Mr. Fojtik questioned if the area would be limited to airport industry uses only.
Mr. Burich replied that it would not and that it may develop slower than normal industrial parks
however there is a demand and necessity for industrial lands adjacent to the airport.
Mr. Thorns commented that he thought it sounded similar to a deal that Winnebago County
recently turned down.
Mr. Burich indicated that the land area is being brought into the city and will be going to the
Common Council for action on annexation at their next meeting.
Mr. Thorns questioned if the access for the runway would be going through County property.
Mr. Burich responded affirmatively.
Ms. Propp commented that the numbers in the project plan were smaller than she anticipated.
Mr. Burich indicated that it was due to the fact that the land was valued as agricultural lands and
thus significantly reduced in value to this agricultural use exemption.
Mr. Bowen commented that Red Oak Court was a residential island in the Town of Nekimi and
questioned if the approval for this subdivision came through the extraterritorial process of
review.
Mr. Burich replied that he did not know as it was developed prior to his employment with the
City but it could not be replicated now as the recommended land use plans for the area
surrounding it are manufacturing uses only.
Mr. Bowen commented that we should be sensitive to the property values of the residential uses
in this area and could consider relocating the detention basin planned for the industrial park as
well as being aware of the residential uses when developing the park.
Mr. Fojtik opened the public hearing for comment at 5:07 pm.
John Terzynski, Red Oak Court, stated that when he purchased his property he was concerned
with good neighbors and he felt the detention basin should be turned to buffer the residents on
Red Oak Court. He further stated that homes were built and lot layouts were changed afterward
and the City has created a residential island in this area. He was looking for neighbors who will
respect their properties and property values and the industrial park will not be attractive and he
would like to see large buffers protecting their residences. The City is moving into their
neighborhood and pushing too much into this area and heavy industrial uses without restrictions
Item-Creation of TID#26-Aviation Business Park
are not good for the residents on Red Oak Court. He felt that bike paths and sidewalks should be
installed with green space as a component. He voiced his concerns with more traffic in their
neighborhood and commented on the number of business buildings that existed within the city
that are unoccupied.
Larry Last, 3827 Red Oak Court, questioned if the city has purchased the property and stated that
an aviation park is not a good business venture at this time. He also questioned if the property
has been annexed into the city and suggested that more research be done on it. He stated his
concerns with what kind of provisions would be made to mitigate noise and garbage issues, etc.
and that it would change their rural lifestyle. The airport was there when he bought his house but
he felt their residential uses needed some protection.
Mr. Bowen left at 5:18 pm.
Allen Davis, Director of Community Development, stated that the City and County have
accepted offers which would be proceeding to the Common Council at the end of February or the
beginning of March and the annexation of the lands was in progress now.
William Schumacher, 253 Brenland Road, stated that he built his house 25 years ago when the
area was rural and he moved out there to get away from the noise, flooding, and other problems
in the city. He felt the plans coming about now were frustrating and questioned where the road
coming off of Oregon Street extending to the west would be located.
Mr. Buck responded that the road would be going through an area that is currently farm land.
Mr. Schumacher then stated he had concerns with being annexed into the city.
Mr. Burich explained the process of attachments according to the boundary agreement with the
City and the Town of Nekimi which entails a ten year delay to attach a property to the City when
70% of the surrounding lands are within the City for certain sections of the Town.
Mr. Schumacher commented that there were water problems in this area and displayed the area
on the map where the water flowed when flooding occurred. He questioned if it will go into the
detention basin in the proposed industrial park and if it will be capable of containing it. He also
voiced his concerns with noise, lights, and traffic issues and commented that he was disappointed
in these developments. He felt the expansion area was disturbing and the layout for the
perimeter of the airport had changed. He questioned if the City was going to buy out their
properties to the east of the industrial park and felt that a berm could be considered to protect
their residences. He also commented about his taxes going up and flooding concerns.
Mr. Davis indicated that the storm water would all be directed to the detention basin which will
control the runoff and direct it toward Ripple Road therefore not flooding any neighboring
properties. The planned development overlay zoning designation will allow development to be
reviewed by the Plan Commission and Common Council at which time adjacent property owners
concerns could be addressed.
Mr. Thorns inquired if any considerations were given to protect the housing subdivision.
Mr. Davis responded that the detention basin's location was based on the topography of the area
and its planned location was the low point in said area.
Item-Creation of TID#26-Aviation Business Park 4
Mr. Thorns also inquired if the industrial park gets planned as an overall property or is it
reviewed and approved as each development comes in.
Mr. Davis replied that the City has no developments planned for the park at this time and the
only improvements we are aware of are shown on the map. The detention basin needs to be
located as far as possible from the airport and the road is the only other improvement to be done
by the City. There are no specifications on design or green space at this time.
Mr. Thorns felt that the City should look at laying out boundaries of the district rather than wait
until development comes along to deal with it.
Ms. Lohry questioned what the distance was from the cul-de-sac on Brenland Road to the
proposed industrial park.
Mr. Davis responded that the proposed industrial park would be approximately 1700 feet from
Oregon Street therefore about 400 feet from the cul-de-sac.
Ms. Lohry commented that something needs to be done to provide a buffer area for the
residential uses.
Mr. Davis replied that there is a well established tree line in this area as well as wetlands present
on the site.
Mr. Hinz questioned if the County owns the land to the west of the proposed industrial park, how
much input will the City have on it.
Mr. Davis indicated that the County would require the City's approval for a conditional use
permit for proposed uses in this area.
Terry Wesenberg, south of Brenland Road, questioned who was going to maintain the property
while waiting for it to be developed.
Mr. Burich responded that some industrial park land is typically leased for farming purposes
before development occurs depending on the circumstances.
Marty Waite, 4601 Oregon Street, stated he owns property to the south of the proposed industrial
park area and the water issues discussed previously extend to the south as well.
Sheree Zellner, 3669 Oregon Street, commented that the neighborhood used to be quiet and now
they are surrounded by industrial uses and described some of the businesses located in the area.
She further stated that the original aviation plan was to be utilized for aviation purposes however
the industries that have moved into the area are not aviation related. She also voiced her
concerns with traffic flow and Oregon Street going from four lanes to two lanes near their house
and what is going to happen to the road situation with more traffic in the neighborhood. She felt
there were safety issues to be addressed.
Bart Brouillette, 3891 Red Oak Court, stated that he had some of the same concerns as his
neighbors and assumed their properties will be annexed into the city eventually.
Item-Creation of TID#26-Aviation Business Park
Eric Dvorachek, 3843 Red Oak Court, stated that he did not receive a notice about the proposed
TID district and that he heard about it from one of his neighbors. He commented that the city
shouldn't wait until development happens to plan on being good neighbors.
Linda Schumacher, 253 Brenland Road, stated that she was concerned with the water flow from
this development as flooding was an issue in this area and the factories and additional roadway
will make the flooding issues worse. She questioned if the City would be paying for damages if
her basement floods and stated her concerns about her well. She also commented about the
workers that would be employed at these establishments and where they would be going during
lunch and if they would be trespassing on residential properties in the area. She felt that since
there could be 1500 workers on this site, that safety issues should be a concern. She also
commented that she didn't get a meeting notice regarding this either and she thought this area
was to remain residential.
Mr. Fojtik closed the public hearing at 5:50 pm.
Mr. Thorns questioned if each development would be required to have detention basin facilities.
Mr. Bunch responded that in industrial parks there is a regional detention basin that serves the
entire park and runoff from each individual site need to be directed to the basin.
Mr. Thorns then questioned how we know if the basin is going to adequately handle all the storm
water runoff from each site.
Mr. Gohde replied that an assumption is made based on the amount of buildable area and each
development is allowed to pave areas based on a percentage of that and further described the
process of how this is calculated.
Mr. Thorns commented that the Commission needs to look at if this is appropriate land use and
not the financial end of this proposal but stated that he was disappointed by the way industrial
parks are developed. He felt the City should strategically develop topography before properties
are sold and developed as it would allow the development to flow better with the surrounding
area. He also commented that he had issues with using a large amount of general obligation debt
for this project.
Ms. Lohry questioned how the 80 acres of land in the proposed industrial park will be divided.
Mr. Bunch responded that in most industrial parks the area is left as one large parcel until lots
are sold for development.
Ms. Lohry then questioned if the City could make the area into a park while waiting for the area
to be developed.
Mr. Burich indicated that this would add significant costs to the debt for this project and it is all
site graded currently and engineering sites prior to development beginning would not be
practical. The planned development overlay will help control what is developed on these lands
and the basic perimeters are laid out only at this time.
Mr. Nollenberger commented that there could be design standards added for landscaping for
proposed industrial parks.
Item-Creation of TID#26-Aviation Business Park