HomeMy WebLinkAbout05. 16-223MAY 10, 2016 16-223 RESOLUTION
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PURPOSE: APPROVE HEALTHY NEIGHBORHOOD INITIATIVE
FUNDING THROUGH TID #7
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)
#7 on July 20, 1989 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.
MAY 10, 2016 16-223 RESOLUTION
CONT’D
BE IT FURTHER RESOLVED that tax increment is available in TID #7 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
#7 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.
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ON THE WATER
MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM: Darryn Burich
Director of Planning Services
DATE: May 5, 2016
RE: Approve Healthy Neighborhood Initiative Funding Through TID #7
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 #7 (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 $3,000,000. Per statutes, only the final year of tax increment can be
used to improve the housing stock.
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 funds 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
• Community Building and Engagement
• 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
Funding the Healthy Neighborhood Initiative does not have an impact on the provision of city
services because no additional staff members are anticipated to administer the programming
contemplated there under. Over the long term investment in the housing supply to add value
and eliminate conditions that detrimentally impact property values should increase overall
property tax values within the community.
RECOMMENDATION
Staff recommends approval of the resolution to allocate the final year of TID #7 increment to
the healthy neighborhoods initiative program.
Re ectfully Submitted,
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Darryn Burich
Director of Planning Services
Approved,
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Mark Rohloff
City Manager