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HomeMy WebLinkAbout39. 13-106 FEBRUARY 26, 2013 13-106 RESOLUTION (CARRIED___7-0____LOST________LAID OVER________WITHDRAWN________) PURPOSE: AUTHORIZE THE CITY OF OSHKOSH TO FORMALLY APPLY FOR AN ECONOMIC DEVELOPMENT ADMINISTRATION (EDA) 11.300 PUBLIC WORKS GRANT IN COOPERATION WITH WINNEBAGO COUNTY AND TO EXECUTE THE NECESSARY AGREEMENTS INITIATED BY: CITY ADMINISTRATION WHEREAS, the Public Works and Economic Development Act of 1965, Title III, establishes a Public Works and Economic Development Facilities program for the funding of economic development infrastructure investments by state and local governments and non-profits; and WHEREAS, the City of Oshkosh (the “City”) and Winnebago County (the “County”) are authorized by the Economic Development Administration (EDA) under the Public Works and Economic Development Act of 1965 to submit an application for a public works and economic development facilities grant under said Act for economic development infrastructure; and WHEREAS, the City has determined the need for an Aviation business park that would benefit the City and the County; and WHEREAS, the City and the County have participated in the applicable district Comprehensive Economic Development Strategy (CEDS) process which has been submitted to EDA; and WHEREAS, the City is authorized to submit grant applications to apply for a Public Works grant and to accept an EDA award; and WHEREAS, the City has agreed to provide the required local share of financing which is readily available for the sole use of the project, in the amount of $2,644,100. BE IT RESOLVED by the Common Council of the City of Oshkosh that the City be authorized to make application to the Economic Development Administration for a Public Works grant requesting $2,000,000 in federal funds which the City will match with more than 50 percent of the cost of the project, currently estimated at $2,644,100, and will be funded through the sale of general obligation bonds or the receipt of loan funds from the State of Wisconsin Land Trust, resulting in an estimated total project cost of $4,644,100 in order to finance the construction of the Aviation Business Park. BE IT FURTHER RESOLVED by the Common Council of the City of Oshkosh that the City Manager and his designated officials are authorized and directed to execute and deliver any and all agreements and documents relating to said grant and required for purposes of the same, and are further authorized and directed if said grant is awarded to accept such funds pursuant to the terms of the grant application. City of Oshkosh 4/F-- Community Development Department 01HKOIH 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 21, 2013 SUBJECT: Approve Submittal of EDA Grant & Matching Funds for Infrastructure BACKGROUND The City of Oshkosh has been working with Winnebago County, CHAMCO, UW- Oshkosh, Aeroinnovate and East Central Wisconsin Regional Planning Commission on an Economic Development Administration (EDA) Public Works grant for street, public utilities and stormwater management for the Aviation Business Park. The proposed grant is for $2,000,000. In order to make the grant application, the City Council must approve the resolution as required by EDA. ANALYSIS The City and our economic development partners have been exploring alternatives for funding the proposed improvements at the Aviation Business Park including other state and federal funds. The City has also been developing Tax Increment Finance District #26 to help finance the costs of the public improvements. The EDA grant application would help construct the public improvements in the 80 acres and significantly reduce the local costs of the infrastructure. The proposed EDA grant of $2,000,000 would be matched by City funds of$2,644,100 for projects that the City would have funded entirely on its own. This significantly reduces the City's costs which helps with the performance of the TIF or could make the funds available for other project costs. The Business Accelerator being developed by UW-Oshkosh and CHAMCO could receive TIF funding from the City if the EDA pays for public infrastructure that was to have been paid by TIF #26. The timing of the EDA grant would be: EDA Grant review and award Summer, 2013 Design Fall, 2013 Bidding Winter 2013-2014 Construction Spring 2014 to 2015 The EDA's bidding requirements of using Davis-Bacon wage rates will be met and have been factored into the estimated costs. The construction schedule and project costs align well with the City's plans to construct and market the Aviation Business Park. FISCAL IMPACT The City has planned to borrow the funds for TIF #26 Aviation Business Park in 2014 and begin construction of the public infrastructure. The $2,000,000 EDA grant would significantly reduce the City's costs for the infrastructure. The remaining local matching costs are all eligible costs for reimbursement in the TIF #26 Plan. RECOMMENDATION The City Council approves the submittal of the EDA grant application and matching funds resolution. Approved, 11� 7fe)—City Manager