HomeMy WebLinkAbout07. 14-411
SEPTEMBER 9, 2014 14-411 RESOLUTION
(CARRIED__7-0_____ LOST _______ LAID OVER _______ WITHDRAWN _______)
PURPOSE: AMEND 2014 CAPITAL IMPROVEMENT PROGRAM TO MOVE
STATE TRUST FUNDS TO SOUTHWEST INDUSTRIAL PARK
PROJECT FOR STREET & UTILITY CONSTRUCTION /
AUTHORIZE BORROWING FROM STATE LAND TRUST
($1,250,000)
INITIATED BY: CITY ADMINISTRATION
WHEREAS, the Common Council previously approved Capital Improvement
Programs which included street and utility construction in the Southwest Industrial Park;
and
WHEREAS, additional grading work will also be necessary in the Southwest
Industrial Park in order to make the lots suitable for development and it is most cost
effective and expedient to perform this work at the same time as the street and utility
improvements; and
WHEREAS, it is necessary to provide funding for this additional work to be
performed; and
WHEREAS, the 2014 Capital Improvement Program had identified Tax Incremental
Financing (TIF) Projects for the Boatworks Riverwalk and Bridge Construction (TID #20 --
$600,000) and Marion Road Redevelopment Area Remediation (TID #21 -- $650,000)
anticipated to be financed by borrowing either through TIF bonding or a State Trust Fund
Loan; and
WHEREAS, By Resolution 13-486 adopted on October 22, 2013, the Project Plan
for TID #7 Southwest Industrial Park has previously been amended to designate TID #7 as
a donor TID and TID #20 South Shore Redevelopment Area and TID #21 Fox River
Corridor Project as a recipient TIDs for the transfer of funds to cover project costs within
the recipient TIDs; and
WHEREAS, the TIF projects identified are eligible project costs under Wisconsin
Statutes section 66.1105 under the Project Plans for TID #20 and TID #21; and
WHEREAS, it is necessary to amend the 2014 CIP program to add additional
grading work in the Southwest Industrial Park to be funded through a State Trust Fund
Loan and to apply funds from TID #7 to the identified projects in TID #20 and TID #21;and
SEPTEMBER 9, 2014 14-411 RESOLUTION
CONT'D
WHEREAS, by the provisions of sec. 24.66 of the Wisconsin Statutes, all
municipalities may borrow money from the State Land Trust 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 2014 Capital Improvement Program is hereby amended to add additional
grading work on lots within the Southwest Industrial Park to be funded through the State
Trust Fund Loan.
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 One Million Two
Hundred Fifty Thousand Dollars ($1,250,000) for the purpose of completing street and
utility construction, including the grading of lots, within the Southwest Industrial Park.
The loan is to be payable within 20 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 4.25 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 for the purpose of
completing street and utility construction, including the grading of lots,within the Southwest
Industria� Park without the consent of the Board of Commissioners of Public Lands.
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
SEPTEMBER 9, 2014 14-411 RESOLUTION
CONT'D
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.
BE IT FURTHER RESOLVED that an amount up to $600,000 shall be transferred
from TID #7 Southwest Industrial Park to TID #20 South Shore Redevelopment Area for
Boatworks Riverwalk and Bridge Construction as identified in the 2014 City of Oshkosh
Capital Improvement Program.
BE IT FURTHER RESOLVED that an amount up to $650,000 shall be transferred
from TID #7 Southwest Industrial Park to TID #21 Fox River Corridor Project for Marion
Road Redevelopment Area Remediation as identified in the 2014 City of Oshkosh Capital
Improvement Program.
BE IT FURTHER RESOLVED that the appropriate city officials are hereby
authorized and directed to take such further action and to sign all documents necessary to
accomplish said purposes.
�
OHKOH
ON THE WATER
MEMORANDUIVI
TO: Honorable Mayor and Members of the Common Council
FROM: Dave Patek, Public Works Director
Allen Davis, Community Development Director
Trena Larson, Finance Director
DATE: September 4, 2014
RE: Amend 2014 Capital Improvements Program (CIP)to apply State Trust Fund Loan
to Southwest Industrial Park Project for grading
BACKGROUND
Additional street and utility construction was planned for the Southwest Industrial Park in the faii of 2014.
Funding for this work has been included in prior CIPs. It has been determined that it is necessary to
perform grading on city land which will become the new lots in the Southwest Industrial Park. The
grading is a necessary component to make lots ready for immediate development. The grading
component is not eligible for tax exempt borrowing as it will be completed on property to be sold for
commercial development. Additional funding is needed in order to complete the grading on this project.
ANALYSIS
The following 2014 Tax Incremental Financing (TIF) Projects: Boat Works Riverwalk and Bridge
Construction (TIF#20—$600,000), Marion Road Redevelopment Area Remediation (TIF#21 —$650,000),
were anticipated to be funded by TIF bonding or State Trust Fund Loan in the amount of$1,250,000. In
order to complete the necessary grading project, the City proposes to utilize the State Trust Fund Loan
proceeds and to fund the TIF projects with TIF#7 (Southwest Industrial Park#2) cash.
FISCAL IMPACT
The impact of this action will be that the above mentioned projects in TIF districts 20 & 21 will now be
funded by a donation from TIF#7. This option was anticipated when Council previously approved using
TIF#7 as a donor TIF. The State Trust fund loan will now be repaid from proceeds of lands sales in the
Southwest Industrial Park.
RECOMMENDATIONS
I recommend amending the 2014 CIP to apply State Trust Fund Loan proceeds to the Southwest
Industrial Park project for the grading and to apply TIF#7 cash for the 2014 Tax Incremental Financing
(TIF) Projects.
Approved:
'i���'�-/�- -
Mark A. Rohloff
City Manager