HomeMy WebLinkAbout06. 15-202
APRIL 28, 2015 15-202 RESOLUTION
(CARRIED___7-0___LOST_______LAID OVER______WITHDRAWN________)
PURPOSE: APPROVE DISSOLVING TAX INCREMENTAL DISTRICT #9
WASHBURN STREET
INITIATED BY: CITY ADMINISTRATION
WHEREAS, on June 6, 1991, the Common Council of the City of Oshkosh
created Tax Incremental Finance District # 9 Washburn Street; and
WHEREAS, State Statutes require that a TID be terminated after enough
increment has been generated to pay all remaining project costs or the TID is extended
to fund a housing program as was previously done in March 2014; and
WHEREAS, Tax Increment Finance District #9 has generated enough tax
increment balance to pay off all its debt service obligations and the District shall be
dissolved.
NOW, THEREFORE BE IT RESOLVED by the Common Council of the City of
Oshkosh that Tax Incremental Finance District #9 Washburn Street is dissolved.
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TO: Honorable Mayor and Members of the Common Council
FROM: Darryn Burich
Director of Planning Services
DATE: April 23, 2015
RE: Approve Dissolving TID#9/S. Washburn Street
BACKGROUND
On June 6, 1991 Council approved a Tax Incremental Finance Project Plan for a new tax increment
district (TID) identified as TID #9 South Washburn Street. TIF funds were used to develop
infrastructure in S. Washburn Street from Waukau Avenue south to the Planeview Truck Plaza area.
All the new development that has occurred along this segment of S. Washburn Street has resulted
directly from the benefit of this infrastructure development made possible through TIF. On March 25,
2014 Council approved a one year extension of TID#9 to utilize the final years' increment to fund the
Healthy Neighborhood Initiative targeted at helping to improve the community housing stock.
ANALYSIS
State Statutes require that a TID be terminated after enough increment has been generated to pay all
remaining project costs or the TID is extended to fund a housing program as was previously done with
this TID. TID#9 has generated enough tax increment balance to pay off all its debt service
obligations and must now be closed, which is a full three years ahead of the statutory termination
deadline of June 6, 2018. The TID is currently valued at approximately $39.6 million, with a $38.9
million value increment that will be added back to the general property tax rolls upon closure.
There is approximately a $4.1 million balance in the TID that will be distributed back to the overlying
taxing entities. After termination a closeout audit will be completed and the TID balance will be
distributed to the taxing entities.
FISCAL tMPACT
The tax increment for this district will be converted to general tax revenue, divided among all of the
taxing entities according to the formula, upon dissolution of the district per Wisconsin Department of
Revenue regulations.
RECOMMENDATION
Staff recommends adoption.
Approved,
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City Manager