HomeMy WebLinkAbout31. 14-143
MARCH 25, 2014 14-143 RESOLUTION
(CARRIED__7-0____LOST______LAID OVER______WITHDRAWN______)
PURPOSE: APPROVE HEALTHY NEIGHBORHOOD INITIATIVE
FUNDING THROUGH TID #9
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 Neighborhood 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; and
WHEREAS, the City of Oshkosh created Tax Increment Financing District (TID)
#9 on June 6, 1991 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 Statutes, 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 Neighborhood 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.
MARCH 25, 2014
14 -143 RESOLUTION
CONTD
BE IT FURTHER RESOLVED that tax increment is available in TID #9 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
#9 for 12 months in order to utilize the final year's increment to fund the Healthy
Neighborhood Initiative to improve the housing stock of the community.
O.f HKOlH
ON THE WATER
TO: Honorable Mayor and Members of the Common Council
FROM: Darryn Burich
Director of Planning Services
DATE: March 20, 2014
RE: Approve Healthy Neighborhood Initiative Funding Through TID #9
BACKGROUND
In an ongoing effort to stabilize and improve the housing stock and quality of life in city
neighborhoods, staff is requesting that Council approve a one year extension of TID #9 (S. Washburn
Street) to permit the final year of tax increment to be allocated to neighborhood revitalization
programming under the City's Healthy Neighborhoods Initiative. The current estimated increment is
$975,000. Per statutes, only the final year of tax increment can be used to improve the housing stock
and no funds from the district's existing cash balance (current estimate of $3.25 million) can be used
for housing improvement programming. .
No project plan amendments are required nor is the Plan Commission or Joint Review Board required
to approve the action.
ANALYSIS
In order to achieve any type of sustainable neighborhood revitalization success, funds must be
programmed and resources targeted to effect change in the City's transitional and distressed
neighborhoods where conditions have been changing to impact long term property values and
increasing demands for city service delivery. The long term goal of neighborhood revitalization
programming is to make all the City's neighborhoods more livable and to protect homeowner
investment and equity through targeted resource programming and regulatory approaches aimed at
combating conditions that destabilize neighborhoods. The premise is to use both "carrots and sticks"
to aid in neighborhood revitalization with TIF allowing the City to provide more "carrots" to aid in
revitalization.
The City's funding of neighborhood revitalization has traditionally been limited to its Community
Development Block Grant for housing rehabilitation and blight removal and more recently CIP funds
designated for public improvement activity. As resources continue to be cut at the federal and state
levels, alternative funding resources need to be utilized to help offset these losses with TIF now being
permitted as a limited resource.
The majority of funds utilized under the healthy neighborhood initiative are intended to be
concentrated into participating neighborhoods where the neighborhood and the city have jointly
developed and approved a plan for revitalization similar to the planning efforts with the Middle Village
Neighborhood.
Core plan activities that will be funded using TIF fiends include:
• Property Acquisition - Blight Removal
• Homeownership Development through a First Time Homebuyer Program
• Rehabilitation -Owner Occupied Single Family
• Rehabilitation- Rental Unit
• Rehabilitation - Exterior Curb Appeal Projects
• New Construction - Single Family Lot Development
• Historic District and Design Standards Overlay Compliance
The core program activities are designed to not only improve the quality of the living environment for
the individual property owner but also to improve the overall quality of life in the neighborhood with
the overarching goal of creating "healthy" neighborhoods of choice within the City.
The majority of programming activity to be funded with tax increment funding is designed to
"revolve" back to the city through low or no interest loan payments or mortgage satisfactions that
should create a more sustainable financial resource to fund ongoing neighborhood revitalization
activities well into the future. TIF can act as an endowment to sustain future neighborhood
revitalization similar to how the city uses the tool to promote economic development and
redevelopment of blighted areas.
FISCAL IMPACT
None anticipated.
RECOMMENDATION
Staff recommends approval of the resolution to allocate the final year of TID #9 increment to the
healthy neighborhoods initiative program.
Approved,
City Manager