HomeMy WebLinkAbout11. 13-311
JUNE 25, 2013 13-311 RESOLUTION
(CARRIED __6-0_____ LOST _______ LAID OVER _______ WITHDRAWN_______)
PURPOSE: AUTHORIZE BORROWING FROM STATE LAND TRUST /
AVIATION BUSINESS PARK DEVELOPMENT & UTILITY
EXTENSIONS – ECONOMIC DEVELOPMENT ADMINISTRATION
GRANT MATCH
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, the sum of up to Two Million Six
Hundred Forty-Four Thousand One Hundred Dollars and 00/100 ($2,644,100), for the
purpose of financing business park site development and utility extensions, 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 business
park site development and utility extensions without the consent of the Board of
JUNE 25, 2013 13 -311 RESOLUTION
CONT'D
BE IT FURTHER RESOLVED, that in case the Board of Commissioners of Public
Lands of Wisconsin 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
215 Church Avenue, Oshkosh, W1 54903
TO: Honorable Mayor and Members of the Common Council
FROM: Allen Davis, Community Development Director
OfHKOfH
ON THE WATER
DATE: June 19, 2013
SUBJECT: Authorize Borrowing from State Land Trust for Aviation Business Park
Site development and utility extensions - Economic Development
Administration Grant match
BACKGROUND
The City of Oshkosh and Winnebago County purchased 80 acres of land with the plan
to create an Aviation Business Park. The City also created a Tax Increment Finance
District to finance and repay the land purchase and public infrastructure improvements
on the property. The City has also submitted a grant application for $2,000,000 to the
Economic Development Administration for the infrastructure improvements.
This borrowing would allow the City to borrow the $2,644,100 necessary to match the
EDA grant funds. This borrowing must be done prior to EDA grant award. The EDA
has not made a grant award at this time.
ANALYSIS
The State Land Trust offers very attractive rates and terms for the City's economic
development projects.
The general timing for the construction project would be as follows:
Geo- technical investigation /Survey Fall, 2013
Design /Permitting Fall/Winter, 2013
Bidding Winter /Spring, 2014
Construction Spring 2014 -- Summer 2015
FISCAL IMPACT
The repayment of the proposed State Land Trust loan is based on the Tax Increment
generated in Tax Increment Finance District #26 that was created earlier this year. The
potential for the $2,000,000 EDA grant funds would reduce the amount of TID #26
revenues needed for repaying the construction costs. TID #26 Project Plan projects
about $25,000,000 in new value created in the TID.
RECOMMENDATION
The City Council authorizes the borrowing $2,644,100 from the State Land Trust.
Approved,
City Manager