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Home My WebLink About16. 15-482NOVEMBER 10, 2015 15-482 RESOLUTION (CARRIED__7-0_____LOST_______LAID OVER_______WITHDRAWN_______) PURPOSE: APPROVE AUTHORIZING THE SUBMISSION OF AN APPLICATION TO THE WISCONSIN DEPARTMENT OF TRANSPORTATION FOR A TRANSPORTATION ECONOMIC ASSISTANCE (TEA) GRANT INITIATED BY: COMMUNITY DEVELOPMENT WHEREAS, the City of Oshkosh and Oshkosh Corporation have mutually agreed to develop a site and business to construct a railroad spur and loading platform in the Southwest Industrial Park to facilitate transportation of vehicles made at Oshkosh Corporation to the end user; and WHEREAS, the agreement between the City of Oshkosh and Oshkosh Corporation provides for construction/reconstruction of a railroad spur and loading platform project to make the project feasible; and WHEREAS, given all the financial demand on the City of Oshkosh related to this project, the City of Oshkosh is in need of assistance to make the transportation improvements. Without the grant assistance, the City of Oshkosh cannot reasonably afford to construct the required improvements; and WHEREAS, the State of Wisconsin Department of Transportation’s Facilities Transportation Economic Assistance (TEA) program provides financial assistance to municipalities to develop transportation facilities required to enable industrial development to occur. NOW, THEREFORE, BE IT RESOLVED that the Common Council of the City of Oshkosh hereby authorizes the submission of an application to the Department of Transportation TEA program and authority is granted to the City of Oshkosh City Manager to take the necessary steps to prepare and file the appropriate application for funds under this program in accordance with this resolution and that he is hereby authorized to sign all necessary documents on behalf of the City of Oshkosh. BE IF FURTHER RESOLVED that the City of Oshkosh does hereby commit to fund at least 50% of the cost of the railroad spur and loading platform improvements from City of Oshkosh funds and/or other sources. BE IT FURTHER RESOLVED that the City of Oshkosh will have jurisdictional responsibility for the transportation improvements. NOVEMBER 10, 2015 15-482 RESOLUTION CONT’D BE IT FUTHER RESOLVED that the City of Oshkosh will sign a Jobs Guarantee with the Wisconsin Department of Transportation. BE IT FURTHER RESOLVED that the City of Oshkosh will administer and oversee the development of the transportation improvement. BE IT FURTHER RESOLVED that the City of Oshkosh will comply with all applicable Federal, State, and Local regulations. NOVEMBER 10, 2015 15-482 RESOLUTION CONT’D BE IT FUTHER RESOLVED that the City of Oshkosh will sign a Jobs Guarantee with the Wisconsin Department of Transportation. BE IT FURTHER RESOLVED that the City of Oshkosh will administer and oversee the development of the transportation improvement. BE IT FURTHER RESOLVED that the City of Oshkosh will comply with all applicable Federal, State, and Local regulations. � O.fHKOlH ON THE WATFA TO: Honorable Mayor and Members of the Common Council FROM: Allen Davis Community Development Director DATE: November 10th, 2015 RE: Approve authorization the submission of an application to the Wisconsin Department of Transportation for a Transportation Economic Assistance (TEA) grant BACKGROUND Staff is proposing to submit a$1,000,000 Transportation Economic Assistance (TEA) grant application to the Wisconsin Department of Transportation for a multi-phase transload facility project in the Southwest Industrial Park. The first phase of the project will be the relocation of the existing catwalk from on South Washburn Street just south of a residential area on Allerton Drive, to a new location on Atlas Avenue in the Southwest Industrial Park. Both locations are along the Wisconsin and Southern Railroad (WSOR) line. The current loading facility is primarily used by Oshkosh Corporation to transport military trucks. In addition to the relocation of the catwalk, the city and WSOR determined that there is a need for an additional spur alongside of Oshkosh Corporation's loading spur that other businesses can utilize to load and off-load product and commodities for their business. This spur will provide businesses in the Oshkosh area with an opportunity to utilize rail services even if their business isn't located on the rail spur. The proposed grant will be matched with funds designated in the city's Capital Improvement Program, City in-kind funds, WATCO (WSOR's parent company), and Oshkosh Corporation. ANALYSIS The city has been working closely with Oshkosh Corporation, WSOR, and WATCO officials throughout the past year to identify a new location for the existing loading facility along South Washburn Street. Due to Oshkosh Corporation's long term needs, it was recommended that the loading facility be moved to the city's Southwest Industrial Park on Atlas Avenue. The industrial park offers an ideal location to Oshkosh Corporation with the option to access the facility 24/7 and is very close to the company's end shipping point facility on South Oakwood Road. The move to the industrial park will be beneficial to the city as the current loading facility is in close proximity to a residential neighborhood. The loading facility and infrastructure will be located on the city's property. The other spur will be used by area businesses who wish to ship product or commodities via rail. There is a need for such a service in Oshkosh and the northeast Wisconsin region as many businesses do not have access to rail or would like alternative options when deciding which rail company they would like to use to ship. WSOR's parent company, WATCO Companies, has a terminal service division that would staff and maintain the transloading site twenty four hours a day. Providing such a service to businesses in the area will be a benefit that the city and the GO-EDC can tout to help attract and retain businesses to the area. In addition to the two spurs running parallel to each other on city property, Leeco Steel has expressed an interest in privately funding an extension of their existing rail spur out another 271 feet into the city-owned parcel to the east of their building. Extending the spur would give Leeco Steel the ability to ship in more materials and increase their sales. Permitting Leeco Steel to extend their rail spur into city property also allows the city to do a land swap with Leeco Steel as the city will be utilizing some of Leeco's property on the north edge of their parcel for the transload spurs. There is also room on site for an additional rail spur as well as indoor load/off-loading and storage that can be planned for future phases when the transloading facility is ready to expand and additional TEA Grant funds can be applied for to help offset the costs for such an investment. The general schedule for the project is: • Bid awarded in Winter of 2016 • Construction starts in Spring of 2016 • Completed in Spring/early Summer 2016 The TEA grant funds will be used for engineering firms that specialize in design for rail, lighting, construction costs and any other costs associated with the relocation of the loading facility to the industrial park. By requesting $1,000,000 from the Wisconsin DOT for the TEA grant, the city is required to guarantee that Oshkosh Corporation will retain 400 jobs each year for seven years, which is the duration of the grant. The city needs to demonstrate that at least 400 of the current 1,800 defense jobs are retained each year and report yearly to the Wisconsin DOT. The relocated loading facility will feature the existing 1,120' catwalk and rail spur from the current location. A new loading ramp will need to be built as well as a service road along the spurs for improved access. Lighting along the loading facility will be installed to provide the flexibility for Oshkosh Corporation and other businesses to utilize the loading facility 24/7. Oshkosh Corporation will be paying for the lighting materials for the new lights onsite. The city will be responsible for the installation and the maintenance of the lights thereafter. A control cabinet will be constructed to give Oshkosh Corporation access to turn the lights off and on as needed. FISCAL IMPACT The entire project cost is estimated at $2.2 million dollars. The fiscal impact of this project is $200,000 in direct city funds. Funds allocated in the Capital Improvement Program budget will be used from TIF# 18. In addition to the funds in the CIP budget, the city intends to contribute $233,000 of in-kind materials and labor as well. Additional funds needed to complete the transload facility will come from WATCO and Oshkosh Corporation as shown below. Cit of Oshkosh • In-kind (including land, labor, and $233,000 excess gravel and fill the city is currentl storin • Cash $200,000 Oshkosh Cor oration • Cash $60,000 WATCO • In-kind $160,000 • Cash $547,000 Wisconsin DOT TEA Grant • Grant $1,000,000 TOTAL $2,200,000* �Costs are being finalized and may change slightly however the city's cash contribution of $200,000 will not change. RECOMMENDATION The City Council authorizes submission of the Wisconsin Department of Transportation TEA grant and administration. Approved, -� �� City Manager 41 Current loading facility location 41 Proposed transload facility location 44 91 Planning Base Planning Base 1 in = 0.22 mi 1 in = 1,173 ft The City of Oshkosh creates and maintains GIS maps and data for its own use. They may show the approximate relative location of property, boundaries and other Printing Date: 11/5/2015 feature from a variety of sources. These map(s)/datasets are provided for information purposes only and may not be sufficient or appropriate for legal, Prepared by: City of Oshkosh, WI engineering, or surveying purposes. They are provided “AS-IS” without warranties J:\GIS\GIS_Base_Maps\Planning Base Map.mxdUser: kellyn