HomeMy WebLinkAbout21. 16-61FEBRUARY 9, 2016 16-61 RESOLUTION
(CARRIED __7-0____ LOST _______ LAID OVER _______ WITHDRAWN_______)
PURPOSE: AUTHORIZE BORROWING FROM TRUST FUNDS OF THE STATE
OF WISCONSIN IN THE SUM OF SEVEN HUNDRED ELEVEN
THOUSAND THREE HUNDRED AND 00/100 DOLLARS ($711,300.00)
FOR THE PURPOSE OF FINANCING RAILROAD SPUR, BLIGHT
REMOVAL AND UTILITY INFRASTRUCTURE
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, a sum of up to Seven Hundred
Eleven Three Hundred Thousand and 00/100 Dollars ($711,300.00) for the purposes of
financing railroad spur, blight removal, and utility infrastructure 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 3.25 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.
FEBRUARY 9, 2016 16-61 RESOLUTION
CONT’D
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 purposes of
financing railroad spur, blight removal, and utility infrastructure without the consent of the
Board of Commissioners 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 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.
OJHKO H MEMORANDUM
ON THE WATER
TO: Honorable Mayor and Members of the Common Council
FROM: Allen Davis, Community Development Director
DATE: February 4, 2016
RE: Authorize Borrowing from Trust Funds of the State of Wisconsin
the Sum of$711,300 for Financing Railroad Spur, Blight Removal and
Utility Infrastructure
BACKGROUND/ANALYSIS
The City is proposing to borrow $711,300 from the State Land Trust to finance three
economic development projects:
Railroad Spur: In November 2015, Council authorized submitting an application to the
Wisconsin Department of Transportation for a Transportation Economic Assistance (TEA)
grant for a multi-phased transload facility project in the Southwest Industrial Park. The first
phase of the project will be the relocation of the existing catwalk from South Washburn
Street, just south of the residential area on Allerton Drive, to a new location on Atlas Avenue
in the Southwest Industrial Park. The City's required match of$200,000 under the
$1,000,000 TEA grant was approved as part of the 2016 Capital Improvement Program. The
balance of the project costs will be paid with private business funds.
Scattered Site Blight Removal: The $180,000 was included in the 2016 Capital Improvement
Program for acquisition and demolition of scattered sites that are not within a designated
redevelopment area or TIF district. It is anticipated these funds will be used for demolition
related activities such as the City's obligation under the settlement agreement with the
owners of the Buckstaff property or for other acquisition/demolition of spot blighted properties
as they become available during the year.
Utility Infrastructure: In November 2015 Council approved entering into an agreement with
Wisconsin Public Service (WPS) to install backbone infrastructure of electrical and natural
gas for future development within the Southwest Industrial Park. Without the backbone
infrastructure in place, the City will be unable to effectively market the industrial lots in this
portion of the Industrial Park. WPS has estimated the cost of installing this backbone
infrastructure at $331,300.
FISCAL IMPACT
Railroad Spur: The entire project cost is estimated at around $2 million dollars. The fiscal
impact of this project is $200,000 in direct City funds. Additional funds needed to complete
the transload facility and/or rail spurs will be in TEA funds or from businesses who wish to
utilize the spur and in-kind labor/materials from the City.
Scattered Site Blight Removal: Under the proposed settlement agreement with the owners of
the Buckstaff property, each party will contribute funds towards an escrow account which will
be used to fund the demolition of the structures on the property down to the slabs. The City
is then responsible for removal of the slabs and any environmental cleanup. At a minimum,
the City's contribution towards the demolitions will be around $300,000. The City will use
$180,000 from the State Trust Fund and/or a combination of State Trust Funds and
community development block grant funds set aside for blight removal for the demolition
and/or slab removals. The City and Redevelopment Authority have also applied for site
assessment grant funds from Wisconsin Economic Development Corporation (WEDC) to
offset the City's cost share of this project. The City hopes to hear from WEDC on the status
of the grants within the next 4-6 weeks.
Utility Infrastructure: Wisconsin Public Service is the sole provider of electrical power and
natural gas to properties within the City of Oshkosh. Without the backbone infrastructure in
place, the City will be unable to effectively market the industrial lots. Tax increment realized
from new development within the Park will offset costs associated with creation of the
Industrial Park, and help retain or create new jobs in Oshkosh.
RECOMMENDATION
Staff recommends Council authorizes borrowing $711,300 from Trust Funds of the State of
Wisconsin for financing the railroad spur ($200,000), blight removal ($180,000) and utility
infrastructure in the Southwest Industrial Park ($331,300).
Respectfully submitted, Approved
/&,,t ) ( -
Allen Davis City Manager
Community Development Director
•
s oettD a F - Managing Wisconsin's trust assets for public education
COMMISSIONERS
• .; " O PUBLIC LANDS. . Douglas La Follette,Secretary of State
Ma tt Adamczyk,State Treasurer
Brad D.SchimeI,Attorney General
•
101E.Wilson Street 608 266-1370 INFORMATION Tom German,Act log Executive Secretary
2nd Floor .. 608 266-0034 LOANS
PO Box 8943 608 267-2787 FAX
Madison,WI 53708-8943 bcpl.wisconsin.gov
.; �..BCPLiLOan Applkcatitin Re nest Form
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: .•: Date January 21 , 2016
:`Municipality City of Oshkosh
Please include type of municipality(e.g.Town of Newbold,Village of Prairie du Sac,Beyrield County,etc.)
County
Winnebago
Municipal Mailing Address P 0 BOX 1 1 30 , Oshkosh, WI 54903-1130
Mark Rohloff Phone# (920)236-5002
Head of Municipality
•
Mailing Address P 0 Box 1130, Oshkosh, WI 54903-1130
Email citymgr@ci.oshkosh.wi.us
Municipal Clerk Pam Ubrig Phone# (920) 236-5011
Mailing Address 1' 1) Rnx 1130, Oshkosh, WI 54903-1130
Email pubrig@ci.oshkosh.wi.us
Trena Larson (920)236-5005
Finance Dir/Treasurer Phone#
Mailing Address P 0 Box 1130, Oshkosh, WI X54903-1130
Email f l arcnni r�i • pahkr.c h rata ris
Todd Tavel, Ehlers= & Associates .•= (262)796-6173
Financial Advisor/Firm
Phone#,
Email 'ttaves @ehlers-inc,com
Railroad 'Spur ?$200, 000. ..: Blight Removal $180,000,
•Loan Purpose Utility-Infrastructure $331 ,300.•
Loan Amount $:.:7,1.7...,3QF;E�•
Loan Term 10efl`s
2/29/16
ESTIMATED DATE THAT FUNDS WILL B itiEEDED
DATES OF NEXT TW 80Aft /COIiNCIL MEETINGS 2/9/16, 2/23/16 s
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