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HomeMy WebLinkAbout23. 16-366 JULY 12, 2016 16-366 RESOLUTION (CARRIED 7-0 LOST________LAID OVER________WITHDRAWN________) PURPOSE: APPROVE TAX INCREMENT DISTRICT NO. 29 PROJECT PLAN; DESIGNATE TAX INCREMENT DISTRICT NO. 29 BOUNDARIES; CREATE TAX INCREMENT DISTRICT NO. 29 MORGAN REDEVELOPMENT INITIATED BY: CITY ADMINISTRATION PLAN COMMISSION RECOMMENDATION: Approved WHEREAS, the City of Oshkosh (the “City”) has determined that use of Tax Incremental Financing is required to promote development and redevelopment within the City; and WHEREAS, Tax Increment District No. 29 (the “District”) is proposed to be created by the City as a blighted area district in accordance with the provisions of Wisconsin Statutes Section 66.1105 (the "Tax Increment Law"); and WHEREAS, a Project Plan for the District has been prepared that includes: a. A statement listing the kind, number and location of all proposed public works or improvements within the District, or to the extent provided in Wisconsin Statutes Sections 66.1105(2)(f)1.k. and 66.1105(2)(f)1.n., outside of the District; b. An economic feasibility study; c. A detailed list of estimated project costs; d. A description of the methods of financing all estimated project costs and the time when the related costs or monetary obligations are to be incurred; e. A map showing existing uses and conditions of real property in the District; f. A map showing proposed improvements and uses in the District; g. Proposed changes of zoning ordinances, master plan, map, building codes and City ordinances; h. A list of estimated non-project costs; i. A statement of the proposed plan for relocation of any persons to be displaced; j. A statement indicating how the District promotes the orderly development of the City; k. An opinion of the City Attorney or of an attorney retained by the City advising that the plan is complete and complies with Wisconsin Statutes Section 66.1105(4)(f); and JULY 12, 2016 16-366 RESOLUTION CONTD WHEREAS, prior to its publication, a copy of the notice of public hearing was sent to owners of all property in the proposed district, to the chief executive officers of Winnebago County, the Oshkosh Area School District, and the Fox Valley Technical College District, and any other entities having the power to levy taxes on property located within the District, in accordance with the procedures specified in the Tax Increment Law; and WHEREAS, in accordance with the procedures specified in the Tax Increment Law, the Plan Commission, on June 21, 2016 held a public hearing concerning the project plan and boundaries and proposed creation of the District, providing interested parties a reasonable opportunity to express their views thereon; and WHEREAS, after said public hearing, the Plan Commission designated the boundaries of the District, adopted the Project Plan, and recommended to the Common Council that it create such District and approve the Project Plan NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that: 1. The boundaries of the District shall be named "City of Oshkosh Tax Increment District No. 29, Morgan Redevelopment", are hereby established as specified in Exhibit A of this Resolution. 2. The District is created effective as of January 1, 2016. 3. The Common Council finds and declares that: (a) Not less than 50% by area of the real property within the District is a blighted area within the meaning of Wisconsin Statutes Section 66.1105(2)(a)1. (b) Based upon the findings, as stated in 3(a) above, the District is declared to be a blighted area district based on the identification and classification of the property included within the District. (c) The improvement of such area is likely to enhance significantly the value of substantially all of the other real property in the District. (d) The equalized value of the taxable property in the District plus the value increment of all other existing tax incremental districts within the City, does not exceed 12% of the total equalized value of taxable property within the City. JULY 12, 2016 16-366 RESOLUTION CONTD The City estimates that less than 35% of the territory within the District (e) will be devoted to retail business at the end of the District’s maximum expenditure period, pursuant to Wisconsin Statutes Section 66.1105(5)(b). (f) The project costs relate directly to promoting the elimination of blight of the area consistent with the purpose for which the District is created. (g) All property within TID #29 was within the City boundaries as of January 1, 2004. 4. The Project Plan for "City of Oshkosh Tax Increment District No. 29, Morgan Redevelopment " (attached as Exhibit B) is hereby approved, and the City further finds the Plan is feasible and in conformity with the master plan of the City. BE IT FURTHER RESOLVED that the Common Council of the City of Oshkosh hereby approves creation of Tax Incremental Financing District No. 29 Morgan Redevelopment. “Exhibit A” TID 29 Morgan District Legal Description BEING ALL OF CERTIFIED SURVEY MAP NUMBER 6905 AS RECORDED IN THE OFFICE OF THE WINNEBAGO COUNTY REGISTER OF DEEDS AS DOCUMENT NUMBER 1679243, ALL OF CERTIFIED SURVEY MAP NUMBER 5748 AS RECORDED IN THE OFFICE OF THE WINNEBAGO COUNTY REGISTER OF DEEDS AS DOCUMENT NUMBER 1361929, ALL OF LOTS 1 THROUGH 6 AND THE WEST ½ OF LOT 7 OF BLOCK 1, ALL OF LOTS 1 THROUGH 4 OF BLOCK 3, PART OF LOT 1 AND ALL OF LOTS 15 THROUGH 20 OF BLOCK 63, ALL IN RD THE PLAT OF THE ORIGINAL THIRD WARD, ALL OF LEWIS STREET, PARTS OF W. 3 THTHTH AVENUE, W. 4 AVENUE, W. 5 AVENUE, W. 6 AVENUE, IOWA STREET AND OREGON TH STREET, PART OF VACATED W. 5 AVENUE ALL LOCATED IN THE SOUTHEAST ¼ OF SECTION 23 AND THE WEST ½ OF THE SOUTHWEST ¼ OF SECTION 24, TOWNSHIP 18 NORTH, RANGE 16 EAST, CITY OF OSHKOSH, WINNEBAGO COUNTY, WISCONSIN BOUNDED AND DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF SECTION 23, TOWNSHIP 18 NORTH, RANGE 16 EAST; THENCE NORTH 01°17’23” WEST, 719.65 FEET ALONG THE WEST LINE TH OF SAID SECTION 23 TO A POINT ON THE CENTERLINE OF W. 6 AVENUE AND POINT OF BEGINNING; THENCE SOUTH 88°51’18” WEST, 1,319.46 FEET ALONG SAID TH CENTERLINE OF W. 6 AVENUE TO A POINT ON THE CENTERLINE OF IOWA STREET; THENCE NORTH 01°09’06” WEST, 310.68 FEET ALONG SAID CENTERLINE OF IOWA TH STREET TO A POINT ON THE CENTERLINE OF W. 5 AVENUE; THENCE SOUTH 88°48’05” TH WEST, 79.83 FEET ALONG SAID CENTERLINE OF W. 5 AVENUE TO A POINT ON THE EXTENDED WEST LINE OF LOT 24, BLOCK 78 OF THE PLAT OF THE ORIGINAL THIRD WARD; THENCE NORTH 01°24’56” WEST, 155.12 FEET ALONG THE EXTENDED WEST LINE AND WEST LINE OF LOT 24 OF SAID BLOCK 78 TO THE SOUTHEAST CORNER OF LOT 11 OF SAID BLOCK 78; THENCE SOUTH 88°41’59” WEST, 299.70 FEET ALONG THE NORTH LINES OF LOTS 6 THROUGH 11 OF SAID BLOCK 78 TO THE SOUTHWEST CORNER OF LOT 6 OF SAID BLOCK 78; THENCE NORTH 01°12’43” WEST, 155.71 FEET ALONG THE WEST LINE AND EXTENDED WEST LINE OF LOT 6 OF SAID BLOCK 78 TO A POINT ON THE TH CENTERLINE OF W. 4 AVENUE; THENCE SOUTH 88°47’51” WEST, 587.71 FEET TO A POINT ON THE EXTENDED WEST LINE OF SAID CERTIFIED MAP NUMBER 6905; THENCE NORTH 01°24’15” WEST, 310.79 FEET ALONG THE EXTENDED WEST LINE AND WEST LINE OF SAID CERTIFIED SURVEY NUMBER 6905 TO A PONT ON THE CENTERLINE OF RD VACATED W. 3 AVENUE ; THENCE SOUTH 88°54’34” WEST, 31.94 FEET ALONG SAID CENTERLINE TO THE WESTERLY LINE OF SAID CERTIFIED SURVEY MAP NUMBER 6905; THENCE NORTH 44°30’26” EAST, 11.45 FEET ALONG SAID WEST LINE OF CERTIFIED SURVEY MAP NUMBER 6905 TO THE BEGINNING OF A 2,087.82-FOOT RADIUS CURVE TO THE LEFT; THENCE NORTHEASTERLY ALONG SAID WEST LINE OF CERTIFIED SURVEY MAP NUMBER 6905 263.82 FEET ALONG SAID CURVE WHOSE CHORD BEARS NORTH 40°47’26” EAST, 263.64 FEET; THENCE NORTH 37°08’35” EAST, 210.73 FEET ALONG SAID WEST LINE OF CERTIFIED SURVEY MAP NUMBER 6905; THENCE NORTH 01°02’56” WEST, 142.43 FEET ALONG SAID WEST LINE OF CERTIFIED SURVEY MAP NUMBER 6905 TO A POINT ON THE U.S. HARBOR LINE OF THE FOX RIVER; THENCE SOUTH 45°19’01” EAST, 150.01 FEET ALONG SAID U.S. HARBOR LINE; THENCE SOUTH 52°46’26” EAST, 783.60 FEET ALONG SAID U.S. HARBOR LINE; THENCE SOUTH 80°34’18” EAST, 1,311.91 FEET ALONG SAID U.S. HARBOR LINE; THENCE SOUTH 86°58’18” EAST, 274.55 FEET ALONG SAID U.S. HARBOR LINE; THENCE SOUTH 65°27’52” EAST, 91.81 FEET ALONG SAID U.S. HARBOR LINE TO A POINT ON THE EAST LINE OF THE WEST ½ OF LOT 7, BLOCK 1 OF THE PLAT OF THE ORIGINAL THIRD WARD; THENCE SOUTH 01°00’17” EAST, 333.96 FEET ALONG SAID EAST LINE AND EXTENDED EAST LINE OF THE WEST ½ OF LOT 7, BLOCK 1 TH TO A POINT ON THE CENTERLINE OF VACATED W. 5 AVENUE; THENCE NORTH TH 74°17’48” WEST, 130.00 FEET ALONG SAID CENTERLINE OF VACATED W. 5 AVENUE TO “Exhibit A” Continued TID 29 Morgan District Legal Description A POINT ON THE EXTENDED EAST LINE OF LOT 4, BLOCK 3 OF THE PLAT OF THE ORIGINAL THIRD WARD; THENCE SOUTH 00°57’58” EAST, 255.49 FEET ALONG SAID EXTENDED EAST LINE AND EAST LINE OF LOT 4, BLOCK 3 TO A POINT ON THE TH CENTERLINE OF W. 6 AVENUE; THENCE SOUTH 89°42’25” WEST, 233.27 FEET ALONG TH SAID CENTERLINE OF W. 6 AVENUE TO THE POINT OF BEGINNING. SAID AREA CONTAINS 1,726,130 SQUARE FEET OR 39.626 ACRES, MORE OR LESS. ry r) z Z) 0 co F- ry F- U) p F— Z Z 0 C) < F- 0 -j LU L>U x r) ui LLI a� z (D 0� 0 LL F: • co cr) 0 • • CL M z 0 E p — ow W L-� wo- I A. rw ni Oshkosh MEMORANDUM TO: Honorable Mayor and Members of the Common Council FROM: Darryn Burich Director of Planning Services DATE: July 7, 2016 RE: Approve Tax Increment District No. 29 Project Plan; Designate Tax Increment District No. 29 Boundaries; Create Tax Increment District No. 29 Morgan Redevelopment (Plan Commission Recommend Approval) BACKGROUND Tax Incremental District #29 (the "TID" or "District ") is a proposed 36 acre blighted area district located in downtown Oshkosh on the south side of the Fox River in the general area of Oregon Street and Sixth Avenue. The proposed District, referred to as the "Morgan District" will be created to facilitate a proposed 27 acre $55 million redevelopment project consisting of residential, commercial and retail uses. The City owns an additional 8.9 acres within the proposed District with redevelopment potential. Five residential parcels at the edge of the district have also been included for future rehabilitation or redevelopment activity. The City anticipates making total Project Cost expenditures of approximately $38.8 million to facilitate redevelopment within the District. This total is comprised of $26.3 million in potential "pay as you go" development incentives, $5.7 million for riverwalk improvements and $6.8 million in street and other public infrastructure improvements. The projections included in this plan indicate that while the District will be able to fully fund the proposed development incentives, it will only be able to contribute approximately $10 million towards the $12.5 million in costs for the riverwalk and other public improvements which do not include the costs of related debt service. As such, it is expected that the City will need to contribute other funds through its normal capital improvements planning to fully implement the Projects outlined in the Plan. The Project Plan includes a statement listing the kind, number, and location of proposed improvements. It contains an economic feasibility study, a detailed list of estimated project costs and timing of those costs as well as a method of financing. ANALYSIS As a result of the creation of this District, the City projects that additional land and improvements value of approximately $57.7 million will be created as a result of redevelopment projects. This additional value will be a direct result of the improvements made and projects undertaken within the District. A table detailing assumptions as to the timing of new development and redevelopment and associated values is located in Section 10 of the Project Plan. Based on the Economic Feasibility Study located in Section 10 of the Project Plan, this T I F District would be expected to remain open for its 27 year maximum statutory life. As noted in the summary of Estimated Total Project Expenditures, the District is not expected to fully fund all related public improvements. This could change if valuations exceed projections, or if properties within the area gain in value as a result of economic appreciation which this Plan does not assume. Creation of the District is intended to facilitate achievement of the City's project goals and desired outcomes for this area by providing the means to recover a majority of the costs of the public investment that will need to be made in the area, and to incentivize developers to make the necessary private investment. The proposed Plan is in general conformance with the City of Oshkosh's present zoning and no changes are anticipated to the Plan area's C -3 PD Central Commercial Planned Development Overlay zoning to implement the Plan. The proposed Plan is in general conformance with the City of Oshkosh's Comprehensive Plan identifying the area as appropriate for mixed downtown development. All development within the District will be required to conform to the State Building Codes and will be subject to the City's permitting and inspection procedures. The proposed Plan conforms to all relevant State and local ordinances, plans, and codes, thus, no changes to the existing regulations are proposed or needed. FISCAL IMPACT Being that this is proposed to be a Paygo TIF for the developer's incentive the fiscal impact to the city should be very minimal with the exception of annual maintenance to administer the TIF district. For the public improvements, remaining TIF increment will be used to offset public infrastructure costs. The base value of the property at approximately $1,263,458 will remain being paid to the overlying taxing jurisdictions during the term of this TID's statutory lifetime which could be up to 27 years. A separate developer's agreement will be required prior to any TIF payments being made to the developer. RECOMMENDATION The Plan Commission approved the TID #29 Project Plan and boundaries at its June 21, 2016 meeting. Respectfully Submitted, /,,, A Darryn Burich Director of Planning Services Approved, Mark Rohloff City Manager ITEM: PUBLIC HEARING ON PROPOSED CREATION OF TAX INCREMENT FINANCING DISTRICT #29 MORGAN REDEVELOPMENT; DESIGNATION OF BOUNDARIES AND APPROVAL OF PROJECT PLAN Plan Commission meeting of June 21, 2016 Prior to taking action on proposed Tax Increment District (TID) #29 and the designation of boundaries for said TID, the Plan Commission is to hold a public hearing and take comments concerning proposed creation of TID #29. The public hearing is required as part of the formal review process the City must follow in the creation of any tax incremental financing district or amendment thereto. GENERAL INFORMATION Applicant: Six Rivers Investments LLC Property Owner: Six Rivers Investments LLC GENERAL DESCRIPTION/BACKGROUND Tax Incremental District #29 (the "TID" or "District ") is a proposed 36 acre blighted area district located in downtown Oshkosh on the south side of the Fox River in the general area of Oregon Street and Sixth Avenue. The proposed District, referred to as the "Morgan District" will be created to facilitate a proposed 27 acre $55 million redevelopment project consisting of residential, commercial and retail uses. The City owns an additional 8.9 acres within the proposed District with redevelopment potential. Five residential parcels at the edge of the district have also been included for future rehabilitation or redevelopment activity. The City anticipates making total Project Cost expenditures of approximately $38.8 million to facilitate redevelopment within the District. This total is comprised of $26.3 million in potential "pay as you go" development incentives, $5.7 million for riverwalk improvements and $6.8 million in street and other public infrastructure improvements. The projections included in this plan indicate that while the District will be able to fully fund the proposed development incentives, it will only be able to contribute approximately $10 million towards the $12.5 million in costs for the riverwalk and other public improvements which do not include the costs of related debt service. As such, it is expected that the City will need to contribute other funds through its normal capital improvements planning to fully implement the Projects outlined in the Plan. The Project Plan includes a statement listing the kind, number, and location of proposed improvements. It contains an economic feasibility study, a detailed list of estimated project costs and timing of those costs as well as a method of financing. ANALYSIS As a result of the creation of this District, the City projects that additional land and improvements value of approximately $57.7 million will be created as a result of redevelopment projects. This additional value will be a direct result of the improvements made and projects undertaken within the District. A table detailing assumptions as to the timing of new development and redevelopment and associated values is located in Section 10 of the Project Plan. Based on the Economic Feasibility Study located in Section 10 of the Project Plan, this T I F District would be expected to remain open for its 27 year maximum statutory life. As noted in the summary of Estimated Total Project Expenditures, the District is not expected to fully fund all related public improvements. This could change if valuations exceed projections, or if properties within the area gain in value as a result of economic appreciation which this Plan does not assume. Creation of the District is intended to facilitate achievement of the City's project goals and desired outcomes for this area by providing the means to recover a majority of the costs of the public investment that will need to be made in the area, and to incentivize developers to make the necessary private investment. The proposed Plan is in general conformance with the City of Oshkosh's present zoning and no changes are anticipated to the Plan area's C -3 PD Central Commercial Planned Development Overlay zoning to implement the Plan. The proposed Plan is in general conformance with the City of Oshkosh's Comprehensive Plan identifying the area as appropriate for mixed downtown development. All development within the District will be required to conform to the State Building Codes and will be subject to the City's permitting and inspection procedures. The proposed Plan conforms to all relevant State and local ordinances, plans, and codes, thus, no changes to the existing regulations are proposed or needed. RECOMMENDATIONS /CONDITIONS Staff recommends approval of the Project Plan and Boundaries for TID #29 as proposed. The Plan Commission approved of the Project Plan and Boundaries for TID #29 as requested. The following is the Plan Commission's discussion on this item. Mr. Burich presented the item and reviewed the site and surrounding area as well as the land use and zoning classifications in this area. He discussed the 14 parcels to be included in the district and the life span of the TID which is proposed to be 27 years. He discussed the uses to be included within the district which consist of residential, commercial and retail including mixed use and the costs related to this project. He further stated that the redevelopment would occur in five phases and reviewed the anticipated uses in each phase. He discussed the city expenditures for this project which would include development incentives, riverwalk construction, street reconstruction, and administrative costs. He explained that the properties currently possess a zoning classification of C -3 PD Central Commercial District with a Planned Development Overlay which would remain and the developments would be required to come back to the Plan Commission for further review when moving forward. The plans are consistent with the City's 1993 and 2005 Comprehensive Plans as well as the "Let's Be Pioneers" riverfront visioning project and the Vision Report. He explained why the TIF assistance is necessary for the redevelopment of this area and reviewed the cash flow analysis both with and without the TIF. He discussed the next steps in the process which would be developing plans to move forward with Phase I of the redevelopment and planned development review for the entire site based on Item: Creation of TID #29- Morgan Redevelopment the concept plan, a developer's agreement and more detailed plans for Phase 1. He stated that the planned development overlay will require approval of each phase by the Plan Commission and Common Council and reviewed the area as it currently exists and photos of the site from the past history of this portion of the city. He reviewed the parcels included in the district and the land use plan for the proposed district and discussed the completion of the riverwalk in this area. He also reviewed a concept plan for the district and reviewed the areas involved with each phase of development and reviewed a rendering of Phase 1. Ms. Propp stated that there appeared to be six to seven private properties included in the district and questioned if there were any down side to the property owners. Mr. Burich responded that this should be a benefit to the property owners as the City could create "mini paygos" to make development incentives available to property owners who desire to do improvements to their homes. He further stated that it also opens the possibility for the properties to be acquired and incorporated in the overall development. He further discussed the paygo options for rehabilitation of the private homes and how the property owner could be provided grant or loan money to assist with home repairs and increased tax assessments that could help offset the costs of the improvements. William Carey, 247 W. 6th Avenue, displayed on the map where his home was located and questioned how the traffic generated from this development would be handled and if there will be trees along the perimeter or if he would be looking at a view of a parking lot from his residence. Gary Gray, 815 W. Linwood Avenue, stated that the map on page 5 of the project plan is labeled as preliminary and questioned if this was the actual map or if it could be altered. Mr. Burich responded that everything is preliminary at this point. Mr. Gray then questioned if the actual map would be approved at a later date. Mr. Burich responded affirmatively. Mr. Gray commented that there was previously a TIF district #20 in this area that would overlay the current district area of TIF #29 and how this would be handled. Mr. Burich replied that TIF #20 would be frozen and TIF #29 would receive the new tax increment. Mr. Gray also discussed the Valuation Test Compliance Calculation on page 8 and asked for further explanation on the evaluation data. Todd Taves, Ehlers, Inc., explained the increment values in each TID district and the current values of each existing district plus the base value of the proposed new district which to date cannot exceed the 12% threshold of the City's overall equalized value which the table reflects that the increments pass the compliance calculation. He further explained the margin available in this calculation which is in compliance with the statutory test. Item: Creation of TID #29- Morgan Redevelopment Mr. Gray felt that the table should be updated to reflect the 2016 values as it reflects the valuation data from 2015. He also questioned if there is going to be any site preparation to be paid by the city in regard to pollutants or contamination. Mr. Burich replied that the city would only be paying for the riverwalk construction areas and any work on the site preparation would be paid by the developer. Mr. Gray felt that there should be two or three options on how to fund the expected expense to the city as he felt it would be helpful for the Common Council to evaluate expenses for the riverwalk construction and street reconstruction that is not covered by the TIF. He discussed the street reconstruction which he felt should be extended from W. 6th Avenue to W. 8th Avenue and that the Capital Improvement Program, (CIP), includes the reconstruction of Oregon Street from 8th Avenue to 28th Avenue in the coming years. Ken Voss, 507 W. 4th Avenue, questioned if W. 4th Avenue was going to be extended through to Iowa Street and W. 6th Avenue. Mr. Burich indicated that this has not yet been determined and the planned development approval in the future will address this issue as part of the plan includes potential reconstruction of streets in this area. Mr. Voss then questioned what the area adjacent to the old City's Sanitation building is proposed to be used for. Mr. Burich responded that the building was to be demolished and it was proposed to be possibly for park extension as well as parking for the trail and boat/kayak launch and other public use. Dorothy Reinke, 333 W. 6th Avenue, inquired about access and egress to the proposed new development and how the traffic generated from these new uses would be addressed. Mr. Burich explained that the main access to the site would be through Minnesota Street and traffic studies could be completed to address any concerns. Ms. Reinke then questioned if there would be additional traffic lights installed. Mr. Burich responded that this has not yet been determined and the west side of the development would require future consideration as far as traffic control. Ms. Reinke discussed street repairs necessary and with the extra traffic and additional wear and tear of the streets in this area due to the increased traffic from this development, if property owners would receive some type of break in the expense of the street reconstruction costs. Mr. Burich replied that he did not have any information on that issue and felt that the normal assessment policy for property owners would be utilized and the TIF district may be able to offset some of those costs. Ms. Reinke commented that the acquisition of existing residential homes was a possibility and questioned if it was just the homes located within the TID district area or would that be applied to other residential properties in the vicinity. Item: Creation of TID #29- Morgan Redevelopment Mr. Burich responded that the acquisition of residential homes was the properties located within the district only. Ms. Reinke inquired if the grant money mentioned that could be available for residential property owners would apply to her home or was this just for the properties within the TID district area only. Mr. Burich indicated that the grant money associated with the TID district would be for properties within the district area only however the city has other programs available for residential homeowners. He discussed the housing rehabilitation program that the City administers and that if a neighborhood association would be created in this area it could offer more assistance for opportunities for financial aid with home improvements through neighborhood programs. Paulette Feld, 416 W. 5th Avenue, stated that street improvements were scheduled for next summer and questioned if this project would delay this and if it will increase the responsibilities to the property owners. Mr. Burich responded that the CIP improvements scheduled will still be moving forward as proposed and that W. 6th Avenue and Oregon Street will be the main access for this development and W. 5th Avenue should not be impacted by this proposal. Nicholas Lang, 1950 White Swan Drive, Grant Schwab, 4006 Stonegate Drive, and Peter Lang, 2300 White Swan Drive, were present as the developers for this proposal. Mr. Lang discussed the plans that they have been working on for the last three years and that landscaping and other details of the redevelopment will come back to the Plan Commission for review and approval at a later date. He discussed the riverwalk plans for the City at this location and the 27 acres of the site to be redeveloped. Ms. Propp requested a further description of the concept plan. Mr. Schwab displayed the area on W. 6th Avenue that would serve as the main entrance to the development and discussed the grocery store, apartments, and parking facilities planned for this area. He further described the outdoor patio for the residential uses, the two additional apartment buildings, condominiums and townhouses, and office buildings which would be constructed at a later date than the residential uses. He displayed on the map the location of the proposed uses described and stated that the apartments will be market rate units. Mr. Lang added that there would be no low- income housing units in this development. Ms. Lohry questioned if there would be shrubs located along the perimeter of the development on Oregon Street. Mr. Schwab responded that the conceptual plan is preliminary at this time and that the site is very large and the landscaping depicted on the plan is conceptual only. Ms. Lohry questioned how the parking facilities would be handled for the development. Item: Creation of TID #29- 1Llorgan Redevelopment Mr. Schwab responded that there would be parking for one car per apartment unit underground and surface parking for the remaining stalls necessary. He further discussed the placement of parking facilities for the remaining development. Ms. Lohry stated that the developer should keep in mind that the Commission likes trees and green space within developments and not largely visible parking areas. Mr. Schwab replied that the developers are all local parties who desire to construct the perfect project for this site which will be aesthetically pleasing. Ms. Propp questioned if there would be any park area located by the riverwalk. Mr. Schwab responded affirmatively. Ms. Propp also questioned if there would be any boat launches constructed within this area. Mr. Schwab stated that it was not part of the project at this time but they will be working with the DNR on transient docks within the development area. He displayed on the map where there are currently transient docks located in the area. Mr. Lang added that they have had discussions with the City Parks Department in regard to this matter and would like to maximize as many docks as possible for the residential uses for the condominiums and that transient docks funded by the City are not currently proposed as there are already multiple transient docks in the area for public use. He continued to discuss the amount of water frontage in Oshkosh and the desire to take advantage of this amenity. Jeff Maurer, owner of grocery establishments in other community's campus locations, discussed an overview of the urban market that is proposed as part of Phase I of the redevelopment project. He discussed his campus grocery stores that are designed for development in high density areas such as this one and the background of his other stores currently in operation. He stated that his concept works well in multi use buildings and reviewed a floor plan of one of his other establishments. He also discussed the construction of transient docks that he felt would make use of his establishment as it provides ready -made, high quality food products that could be utilized by boating enthusiasts and reviewed photos of his other locations and some of the products they had to offer. He discussed his concept of building smaller stores that offer online shopping and free deliveries to homes as well as a catering program and that his facility utilizes smaller parking lots due to these features. He further discussed their products and quality of foods offered and that they have been in the grocery business for 40 years. Ms. Lohry inquired about the ability to order groceries and have free delivery to homes. Mr. Maurer responded that they offer shopping online or in the store with the benefit of having the groceries delivered at no cost which promotes more pedestrian and bicycle traffic and reduces the amount of parking necessary as the order can be delivered. Ms. Lohry commented that she is a representative of aging and disabled citizens and is looking for benefits such as this for their purpose. Item: Creation of TID #29- Morgan Redevelopment Mr. Maurer stated that orders can be called in or may be placed online if the individual cannot find transportation to come to the store. Mr. Fojtik commented that he felt it was a very nice concept. Motion by Nollenberger to approve the designated boundaries and Project Plan for TID #29- Morgan Redevelopment. Seconded by Cummings. Motion carried 6 -0. 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N rUO W< Q X N OO p eN-1 �O 0 N mDO X N 000 O U m n 2 O N m m= O N W O¢ _ S N M 2 Q N m= 2 O N 0= N W m= N m= N t- a Ct rtm0 M w 0 m2 O Zm0 m 2.,*o Ha0 In N 't H0 O n .�O O t=7a0 EHLERS -LEADERS M PUBLI fl' NANCE June 7, 2016 Project Plan Tax Incremental District No. 29 Morgan Redevelopment Organizational Joint Review Board Meeting Held: Public Hearing Held: Consideration for Approval by Plan Commission: Consideration for Adoption by Common Council June 21, 2016 June 21, 2016 June 21, 2016 Scheduled for July 12, 2016 Consideration for Approval by the Joint Review Board: TBD Project Plan � ,� Incremental District No. , City of Oshkosh Officials Common Council Steve Cummings Debra L. Allison -Aasby Caroline Panske Lori Palmeri Thomas R. Pech, Jr. Steve Herman Ben Stepanek City Staff Mark Rohloff Allen Davis Darryn Burich Trena Larson Pamela Ubrig Lynn Lorenson Plan Commission David Borsuk Edward Bowen Thomas Fojtik, Chair Ben Krumenauer John Hinz Joint Review Board Mark Rohloff, City Manager Mark Harris, County Executive Melissa Kohn, Director — Oshkosh Campus Allison Garner, School Board President Bill Castle Mayor Deputy Mayor Council Member Council Member Council Member Council Member Council Member City Manager Community Development Director Planning Director Finance Director City Clerk City Attorney Donna Lohry Karl Nollenberger Kathleen Propp Jeffrey Thorns Robert Vajgrt City Representative Winnebago County Fox Valley Technical College District Oshkosh Area School District Public Member Table of Contents EXECUTIVE SUMMARY ............................................................................................................. ..............................1 TYPE AND GENERAL DESCRIPTION OF DISTRICT .......................................................... ..............................4 PRELIMINARY MAP OF PROPOSED DISTRICT BOUNDARY .......................................... ..............................5 MAP SHOWING EXISTING USES AND CONDITIONS ........................................................ ..............................6 PRELIMINARY PARCEL LIST AND ANALYSIS ..................................................................... ..............................7 EQUALIZED VALUE TEST ......................................................................................................... ..............................8 STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PUBLIC WORKS AND OTHER PROJECTS.................................................................................................................................... ..............................9 MAP SHOWING PROPOSED IMPROVEMENTS AND USES ............................................ .............................14 DETAILED LIST OF PROJECT COSTS ................................................................................. .............................15 ECONOMIC FEASIBILITY STUDY, FINANCING METHODS, AND THE TIME WHEN COSTS OR MONETARY OBLIGATIONS RELATED ARE TO BE INCURRED ..................................... .............................17 ANNEXEDPROPERTY .............................................................................................................. .............................22 ESTIMATE OF PROPERTY TO BE DEVOTED TO RETAIL BUSINESS ......................... .............................22 PROPOSED ZONING ORDINANCE CHANGES ................................................................... .............................22 PROPOSED CHANGES IN MASTER PLAN, MAP, BUILDING CODES AND CITY OF OSHKOSH ORDINANCES............................................................................................................................. .............................22 RELOCATION.............................................................................................................................. .............................22 ORDERLY DEVELOPMENT OF THE CITY OF OSHKOSH ................................................ .............................23 LIST OF ESTIMATED NON - PROJECT COSTS .................................................................... .............................23 OPINION OF ATTORNEY FOR THE CITY OF OSHKOSH ADVISING WHETHER THE PLAN IS COMPLETE AND COMPLIES WITH WISCONSIN STATUTES 66.1105 ......................... .............................24 CALCULATION OF THE SHARE OF PROJECTED TAX INCREMENTS ESTIMATED TO BE PAID BY THE OWNERS OF PROPERTY IN THE OVERLYING TAXING JURISDICTIONS ......... .............................25 SECTION 1: Executive Summary Description of District Type of District, Size and Location Tax Incremental District No. 29 (the "TID" or "District ") is a proposed 36 acre blighted area district located in downtown Oshkosh on the south side of the Fox River in the general area of Oregon Street and Sixth Avenue. The proposed District, referred to as the "Morgan District" will be created to facilitate a proposed 27 acre $55 million redevelopment project consisting of residential, commercial and retail uses. The City owns an additional 8.9 acres within the proposed District with redevelopment potential. A map of the proposed District boundaries is located in Section 3 of this plan. Estimated Total Project Expenditures The City anticipates making total Project Cost expenditures of approximately $38.8 million to facilitate redevelopment within the District. This total is comprised of $26.3 million in potential "pay as you go" development incentives, $5.7 million for riverwalk improvements and $6.8 million in street and other public infrastructure improvements. The projections included in this plan indicate that while the District will be able to fully fund the proposed development incentives, it will only be able to contribute approximately $10 million towards the $12.5 million in costs for the riverwalk and other public improvements which do not include the costs of related debt service. As such, it is expected that the City will need to contribute other funds through its normal capital improvements planning to fully implement the Projects outlined in the Plan. Economic Development As a result of the creation of this District, the City projects that additional land and improvements value of approximately $57.7 million will be created as a result of redevelopment projects. This additional value will be a direct result of the improvements made and projects undertaken within the District. A table detailing assumptions as to the timing of new development and redevelopment and associated values is located in Section 10 of this Plan. In addition, creation of the District is expected to result in other economic benefits as detailed in the Summary of Findings hereafter. Expected Termination of District Based on the Economic Feasibility Study located in Section 10 of this plan, this District would be expected to remain open for its 27 year maximum statutory life. As noted in the summary of Estimated Total Project Expenditures above, the District is not expected to fully fund all related public improvements. This could change if valuations exceed projections, or if properties within the area gain in value as a result of economic appreciation which this Plan does not assume. Summary of Findings As required by Wisconsin Statutes Section 66.1105, and as documented in this Project Plan and the exhibits contained and referenced herein, the following findings are made: 1. That "but for" the creation of this District, the development projected to occur as detailed in this Project Plan: 1) would not occur; or 2) would not occur in the manner, at the values, or within the timeframe desired by the City. In making this determination, the City has considered the following information: Piroject Rlan TID No. 29 Cireatlion Gity of Oshkosh ul imi tied by Ehlleirs Wage 1 dune 22, 2016 • The economics associated with redevelopment projects which typically involve additional costs related to demolition, site preparation, installation of necessary public and private infrastructure, provision of adequate off - street parking, and other similar costs. As such, the City believes that these sites are not likely to be redeveloped under normal market conditions without public investment and participation. The lack of other financial resources to pay the costs of the public infrastructure improvements and other related expenditures that will be required to facilitate redevelopment including: development incentive payments; repair or replacement of pavement surfaces; curb and gutter; sidewalks; and repair or replacement of underlying utilities including sanitary sewer, storm sewer and water main. Without the use of TIF to pay for or partially offset these costs, the City will not undertake these improvements and expenditures. 2. The economic benefits of the Tax Incremental District, as measured by increased employment, business and personal income, and property value, are sufficient to compensate for the cost of the improvements. In making this determination, the City has considered the following information: As demonstrated in the Economic Feasibility Section of this Project Plan, the tax increments projected to be collected are sufficient to pay for the cost of the development incentives needed to facilitate the desired redevelopment, and to also pay for a substantial portion of the public improvements the City expects to make within the area. • The redevelopment expected to occur within the District will create approximately 400 residential units, providing a variety of housing opportunities for City residents. Commercial and retail uses to be located within the District will provide employment opportunities and services to residents living within the District and the larger downtown area. 3. The benefits of the proposal outweigh the anticipated tax increments to be paid by the owners of property in the overlying taxing jurisdictions. If approved, the District's creation would become effective for valuation purposes as of January 1, 2016. As of this date, the values of all existing real and personal property within the District would be frozen and the property taxes collected on this base value would continue to be distributed amongst the various taxing entities as they currently are now. Taxes levied on any additional value established within the District due to new construction, renovation or appreciation of property values occurring after January 1, 2016 would be collected by the TID and used to repay the costs of TIF- eligible projects undertaken within the District. Since the development expected to occur is unlikely to take place or in the same manner without the use of TIF (see Finding 91) and since the District will generate economic benefits that are more than sufficient to compensate for the cost of the improvements (see Finding 92), the City reasonably concludes that the overall benefits of the District outweigh the anticipated tax increments to be paid by the owners of property in the overlying taxing jurisdictions. It is further concluded that since the "but for" test is satisfied, there would, in fact, be no foregone tax increments to be paid in the event the District is not created. As required by Section 66.1105(4)(i)4., a calculation of the share of projected tax increments estimated to be paid by the owners of property in the overlying taxing jurisdictions has been made and can be found in Appendix A of this plan. Pirojact Rlwi TID No. 29 Ciraatliorl Gity of Oshkosh Subimr tied by Ehlloirs Page 2 Jwie 22, 2016 4. Not less than 50% by area of the real property within the District is a blighted area within the meaning of Wisconsin Statutes Section 66.1105(2)(ae)1. 5. Based upon the finding stated above the District is declared to be a Blighted Area District based on the identification and classification of the property included within the District. 6. The project costs relate directly to promoting the elimination of blight consistent with the purpose for which the District is created. 7. The improvement of such area is likely to enhance significantly the value of substantially all of the other real property in the District. 8. The equalized value of taxable property of the District, plus the value increment of all existing tax incremental districts within the City, does not exceed 12% of the total equalized value of taxable property within the City. 9. The City estimates that less than 35% of the territory within the District will be devoted to retail business at the end of the District's maximum expenditure period, pursuant to Wisconsin Statutes Sections 66.1105(5)(b) and 66.1105(6)(am)1. 10. The Project Plan for the District in the City is feasible, and is in conformity with the master plan of the City. Pirojact Rlwi TID hoc. 29 Ciraatoi i Gity of Oshkosh Subimr tied by Ehlleirs Page 3 Jwie 22, 2016 SECTION 2: Type and General Description of District The District, comprising 36 acres in downtown Oshkosh is being created by the City under the authority provided by Wisconsin Statute Section 66.1105 and will be classified as a "blighted area" district based on a finding that at least 50 %, by area, of the real property within the District meets that condition as defined in Wisconsin Statute Section 66.1105(2)(ae)1. The preliminary parcel list included in Section 5 to this Plan identifies those parcels meeting those criteria. Collectively, these parcels represent 73.64% of the total TID area. Creation of the District is intended to facilitate achievement of the City's project goals and desired outcomes for this area by providing the means to recover a majority of the costs of the public investment that will need to be made in the area, and to incentivize developers to make the necessary private investment. A preliminary map of the proposed District boundary can be found in Section 3 of this Plan. Pirojact Rlwi TID No. 29 Ciraatliorl Gity of Oshkosh Subimr tied by Ehlloirs Page 4 Jwie 22, 2016 C: I O C/) r) _0 (D C/) 0 CL 0 L— n 4- 0 CL m >1 co Z.C: 0 E LU cn n I M I 11 0 Z Lu F- E 4 71 0 C) LU U) C/) C: 0 C: 0 C) _0 C: m C/) (D C/) C: -1--a C/) x LU 0) C: 3: 0 C- (1) CL m I W I I 0 Z Lu F- E V/ Q 0 c J U n L(i (6 OE U (D UJ L cl) n O O O O O E E E E E N O O O O c c c c c c O N-- 0 0 0 0 0 0 > > > >a+ U U U U- E wE Ew O O O >>> w 1w 1w 6 0 0 0 0 0 0 0 c K K K ED p O O O O Z Z Z Z Z Z `O y O O W O m N O N O 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 O I- - i N O O O I� N W m cJ C N ri rl ri ri � O O O O O O O O W z O O F F F F F F F F m � d F y z 3 p z z z O vii x p O s Q O Z a J s x v~i v~i v~i p Q x x x x O>>> Z 0 J Q 0> O O O O i z z z¢ LL x x x x x x O s s s a o N Z 0 0 0 0 w ~ x x x x J O s F F F F V N p s a c 2 u u u u z G a o a a a a a a a Z a z z�¢ x x x x x x N v o o x to to to to to t Q u i x y o c 3 3 3 3 3 3 3 u c 00, 3 N o N o o 3 0 o c o m m m m m o m o 0 ` 0 0 0 0 0 0 0 0 0 0 0 O X 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 . . . Z� c� � o m c � �o 0 0 0 o c c c c c c m w m o 00 00 00 00 0 0 0 0 0 0 0 0 0 °9 a o 0 0 0 0 0 0 0 0 0 0 0 0 0 a� 0 O z . L: CO (l1 s- y O N L: 0 N ti O c CJ -} ti i3Y ni a.. c 0 ti C 0) fJ � 21 CD c .ter f1.. 2t 0 ti a.. U7 SECTION 6: Equalized Value Test The following calculations demonstrate that the City expects to be in compliance with Wisconsin Statutes Section.66.1105(4)(gm)4.c. which requires that the equalized value of the taxable property in the proposed District, plus the value increment of all existing tax incremental districts, does not exceed 12% of the total equalized value of taxable property within the City. The equalized value of the increment of existing tax incremental districts within the City, plus the base value of the proposed District, totals $245,544,700. This value is less than the maximum of $449,237,400 in equalized value that is permitted for the City of Oshkosh. The City therefore anticipates that it will be in compliance with the statutory equalized valuation test and may proceed with creation of this District. District Creation Date 7/12/2016 Valuation Data Percent Valuation Data Currently Available Change Est. Creation Date 2015 Tota I EV (TI D In) ����, OW 12% Test 449,237,400 449,237,400 incremem of Total Existing Increment Projected Base of New or Amended District Total Value Subject to 12% Test Compliance Pirojact Rlwi TID No. 29 Cireatliorl Subimr tied by Ehlloirs 245,544,700 245,544,700 1,263,458 246,808,158 246,820,792 Gity of Oshkosh Page 8 Julia 22, 2016 SECTION 7: Statement of Kind, Number and Location of Proposed Public Works and Other Projects Project Costs are any expenditure made, estimated to be made, or monetary obligations incurred or estimated to be incurred, by the City as outlined in this Plan. Project Costs will be diminished by any income, special assessments or other revenues, including user fees or charges received. To the extent the costs of a Project benefit the City outside the District that proportionate share of the cost is not a Project Cost. Costs identified in this Plan are preliminary estimates made prior to design considerations and are subject to change after planning is completed. Pro - ration of costs in the Plan are also estimates and subject to change based upon implementation, future assessment policies and user fee adjustments. The following is a list of public works and other TIF- eligible projects that the City may need to implement in conjunction with this District. Any costs necessary or convenient to the creation of the District or directly or indirectly related to the public works and other projects are considered Project Costs and eligible to be paid with tax increment revenues of the District. Property, Right -of -Way and Easement Acquisition Property Acquisition In order to promote and facilitate redevelopment the City may acquire property within the District. The cost of property acquired, and any costs associated with the transaction, are eligible Project Costs. Following acquisition, other Project Costs within the categories detailed in this Section may be incurred in order to make the property suitable for development. Any revenue received by the City from the sale of property acquired pursuant to the execution of this Plan will be used to reduce the total project costs of the District. If total Project Costs incurred by the City to acquire property and make it suitable for development and /or redevelopment exceed the revenues or other consideration received from the sale or lease of that property, the net amount shall be considered "real property assembly costs" as defined in Wisconsin Statutes Section 66.1105(2)(f)l.c., and subject to recovery as an eligible Project Cost. Acquisition of Rights -of -Way The City may need to acquire property to allow for installation of streets, driveways, sidewalks, utilities, stormwater management practices and other public infrastructure. Costs incurred by the City to identify, negotiate and acquire rights -of -way are eligible Project Costs. Acquisition of Easements The City may need to acquire temporary or permanent easements to allow for installation and maintenance of streets, driveways, sidewalks, utilities, stormwater management practices and other public infrastructure. Costs incurred by the City to identify, negotiate and acquire easement rights are eligible Project Costs. Relocation Costs If relocation expenses are incurred in conjunction with the acquisition of property, those expenses are eligible Project Costs. These costs may include, but are not limited to: preparation of a relocation plan; allocations of staff time; legal fees; publication of notices; obtaining appraisals; and payment of relocation benefits as required by Wisconsin Statutes Sections 32.19 and 32.195. Prroject Rlan TID No. 29 Cireatlion Gity of Oshkosh ul imi tied by Ehlleirs Wage 9 dune 22, 2016 Site Preparation Activities Environmental Audits and Remediation There have been no known environmental studies performed within the proposed District. If, however, it becomes necessary to evaluate any land or improvement within the District, any cost incurred by the City related to environmental audits, testing, and remediation are eligible Project Costs. Demolition In order to make sites suitable for development, the City may incur costs related to demolition and removal of structures or other land improvements, to include abandonment of wells or other existing utility services. Site Grading Land within the District may require grading to make it suitable for development and /or redevelopment, to provide access, and to control stormwater runoff. The City may need to remove and dispose of excess material, or bring in fill material to provide for proper site elevations. Expenses incurred by the City for site grading are eligible Project Costs. Utilities Sanitary Sewer System Improvements There are inadequate sanitary sewer facilities serving areas of the District. To allow redevelopment to occur, the City may need to construct, alter, rebuild or expand sanitary sewer infrastructure within the District. Eligible Project Costs include, but are not limited to, construction, alteration, rebuilding or expansion of. collection mains; manholes and cleanouts; service laterals; force mains; interceptor sewers; pumping stations; lift stations; wastewater treatment facilities; and all related appurtenances. To the extent sanitary sewer projects undertaken within the District provide direct benefit to land outside of the District, the City will make an allocation of costs based on such benefit. Those costs corresponding to the benefit allocated to land within the District, and necessitated by the implementation of the Project Plan, are eligible Project Costs. Implementation of the Project Plan may also require that the City construct, alter, rebuild or expand sanitary sewer infrastructure located outside of the District. That portion of the costs of sanitary sewer system projects undertaken outside the District which are necessitated by the implementation of the Project Plan are eligible Project Costs. The improvements to the wastewater treatment facilities, although not within the �/z mile radius, is an eligible project cost under Section 66.1105(2)(f)l k. Water System Improvements There are inadequate water distribution facilities serving areas of the District. To allow redevelopment to occur, the City may need to construct, alter, rebuild or expand water system infrastructure within the District. Eligible Project Costs include, but are not limited to, construction, alteration, rebuilding or expansion of. distribution mains; manholes and valves; hydrants; service laterals; pumping stations; wells; water treatment facilities; storage tanks and reservoirs; and all related appurtenances. To the extent water system projects undertaken within the District provide direct benefit to land outside of the District, the City will make an allocation of costs based on such benefit. Those costs corresponding to the benefit allocated to land within the District, and necessitated by the implementation of the Project Plan, are eligible Project Costs. Implementation of the Project Plan may also require that the City construct, alter, rebuild or expand water system infrastructure located outside of the District. That portion of the costs of water system projects undertaken outside the District which are necessitated by the implementation of the Project Plan are eligible Project Costs. Prroject Rlan TID No. 29 Cireatlion Gity of Oshkosh ul imi tied by Ehlleirs Wage 10 dune 22, 2016 Stormwater Management System Improvements Redevelopment within the District will cause stormwater runoff and pollution. To manage this stormwater runoff, the City may need to construct, alter, rebuild or expand stormwater management infrastructure within the District. Eligible Project Costs include, but are not limited to, construction, alteration, rebuilding or expansion of. stormwater collection mains; inlets, manholes and valves; service laterals; ditches; culvert pipes; box culverts; bridges; stabilization of stream and river banks; and infiltration, filtration and detention Best Management Practices (BMP's). To the extent stormwater management system projects undertaken within the District provide direct benefit to land outside of the District, the City will make an allocation of costs based on such benefit. Those costs corresponding to the benefit allocated to land within the District, and necessitated by the implementation of the Project Plan, are eligible Project Costs. Implementation of the Project Plan may also require that the City construct, alter, rebuild or expand stormwater management infrastructure located outside of the District. That portion of the costs of stormwater management system projects undertaken outside the District which are necessitated by the implementation of the Project Plan are eligible Project Costs. Electric Service In order to create sites suitable for development, the City may incur costs to provide, relocate or upgrade electric services. Relocation may require abandonment and removal of existing poles or towers, installation of new poles or towers, or burying of overhead electric lines. Costs incurred by the City to undertake this work are eligible Project Costs. Gas Service In order to create sites suitable for development, the City may incur costs to provide, relocate or upgrade gas mains and services. Costs incurred by the City to undertake this work are eligible Project Costs. Communications Infrastructure In order to create sites suitable for development, the City may incur costs to provide, relocate or upgrade infrastructure required for voice and data communications, including, but not limited to: telephone lines, cable lines and fiber optic cable. Costs incurred by the City to undertake this work are eligible Project Costs. Streets and Streetscape Street Improvements There are inadequate street improvements serving areas of the District. To allow redevelopment to occur, the City may need to reconstruct streets, highways, alleys, access drives and parking areas. Eligible Project Costs include, but are not limited to: excavation; removal or placement of fill; construction of road base; asphalt or concrete paving or repaving; installation of curb and gutter; installation of sidewalks and bicycle lanes; installation of culverts, box culverts and bridges; utility relocation, to include burying overhead utility lines; street lighting; installation of traffic control signage and traffic signals; pavement marking; right -of -way restoration; installation of retaining walls; and installation of fences, berms, and landscaping. Streetscaping, Landscaping and Riverwalk In order to attract development consistent with the objectives of this Plan, the City may install amenities to enhance development sites, rights -of -way and other public spaces. These amenities include, but are not limited to: landscaping; lighting of streets, sidewalks, parking areas and public areas; installation of planters, benches, clocks, tree rings, trash receptacles and similar items; and installation of brick or other decorative walks along the Fox River, terraces and street crossings. These and any other similar amenities installed by the City are eligible Project Costs. Prroject Rlan TID No. 29 Cireatlion Gity of Oshkosh ul imi tied by Ehlleirs Wage 11 dune 22, 2016 RDA Type Activities Contribution to Redevelopment Authority As provided for in Wisconsin Statutes Sections 66.1105(2)(f)l.h and 66.1333(13), the City may provide funds to its RDA to be used for administration, planning operations, and capital costs, including but not limited to real property acquisition, related to the purposes for which it was established in furtherance of any redevelopment or urban renewal project. Funds provided to the RDA for this purpose are eligible Project Costs. Revolving Loan /Grant Program To encourage private redevelopment consistent with the objectives of this Plan, the City, through its RDA, may provide loans and /or matching grants to eligible property owners in the District. Loan and /or matching grant recipients will be required to sign an agreement specifying the nature of the property improvements to be made. Eligible improvements will be those that are likely to improve the value of the property, enhance the visual appearance of the property and surrounding area, correct safety deficiencies, or as otherwise specified by the RDA in the program manual. Any funds returned to the RDA from the repayment of loans made are not considered revenues to the District, and will not be used to offset District Project Costs. Instead, these funds may be placed into a revolving loan fund and will continue to be used for the program purposes stated above. Any funds provided to the RDA for purposes of implementing this program are considered eligible Project Costs. Miscellaneous Cash Grants (Development Incentives) The City may enter into agreements with property owners, lessees, or developers of land located within the District for the purpose of sharing costs to encourage the desired kind of improvements and assure tax base is generated sufficient to recover project costs. No cash grants will be provided until the City executes a developer agreement with the recipient of the cash grant. Any payments of cash grants made by the City are eligible Project Costs. Projects Outside the Tax Increment District Pursuant to Wisconsin Statutes Section 66.1105(2)(f)I.n, the City may undertake projects within territory located within one -half mile of the boundary of the District provided that: 1) the project area is located within the City's corporate boundaries and 2) the projects are approved by the Joint Review Board. The cost of projects completed outside the District pursuant to this section are eligible project costs, and may include any project cost that would otherwise be eligible if undertaken within the District. The City intends to repair or replace pavement surfaces, curb and gutter, sidewalks, and underlying utilities (sanitary sewer, storm sewer and water main) on portions of Oregon Street, Iowa Street, Minnesota Street, and West Fourth and Fifth Avenues. Segments of each identified street project comprise either a portion of the TID boundary, or lie just outside of the TID boundary. The City intends for the full cost of all identified street projects to be eligible Project Costs utilizing this provision. Professional Service and Organizational Costs The costs of professional services rendered, and other costs incurred, in relation to the creation, administration and termination of the District, and the undertaking of the projects contained within this Plan, are eligible Project Costs. Professional services include, but are not limited to: architectural; environmental; planning; engineering; legal, audit; financial; and the costs of informing the public with respect to the creation of the District and the implementation of the Plan. Prroject Rlan TID No. 29 Cireatlion Gity of Oshkosh ul imi tied by Ehlleirs Wage 12 dune 22, 2016 Administrative Costs The City may charge to the District as eligible Project Costs reasonable allocations of administrative costs, including, but not limited to, employee salaries. Costs allocated will bear a direct connection to the time spent by City employees in connection with the implementation of the Plan. Financing Costs Interest expense, debt issuance expenses, redemption premiums, and any other fees and costs incurred in conjunction with obtaining financing for projects undertaken under this Plan are eligible Project Costs. With all Projects the costs of engineering, design, survey, inspection, materials, construction, restoring property to its original condition, apparatus necessary for public works, legal and other consultant fees, testing, environmental studies, permits, updating City ordinances and plans, judgments or claims for damages and other expenses are included as Project Costs. In the event any of the Project Cost expenditures included in this Plan are determined not to be reimbursable out of the TIF fund by counsel retained by the City for purposes of making such determination, or a court of record so rules in a final order, then such Project Cost is deleted from this Plan and the remainder of the Projects shall be deemed the entirety of the Projects for purposes of this Plan. The City reserves the right to implement only those projects that remain viable as the Plan period proceeds. Prroject Rlan TID No. 29 Cireatlion Gity of Oshkosh ial imi tied by Ehlleirs Wage 13 Jur ie 22, 2016 66 71 0 C) LU U) C/) (D C/) C: m cn -&-i C: N E 0 CL cn 0 CL 0 n cm C: 3: 0 c- C/) CL m I 0 I 11 0 Z Lu F- E SECTION 9: Detailed List of Project Costs All costs are based on 2016 prices and are preliminary estimates. The City reserves the right to increase these costs to reflect inflationary increases and other uncontrollable circumstances between 2016 and the time the expenditure is made. The City also reserves the right to increase certain Project Costs to the extent others are reduced or not implemented without amending the Plan. The tax increment allocation is preliminary and is subject to adjustment based upon the implementation of the Plan. This Plan is not meant to be a budget nor an appropriation of funds for specific projects, but a framework within which to manage projects. All costs included in the Plan are estimates based on best information available. The City retains the right to delete projects or change the scope and /or timing of projects implemented as they are individually authorized by the Common Council, without amending the Plan. Pirojact Rlwi TID No. 29 Ciraatliorl Gity of Oshkosh Subimr tied by Ehlloirs Page 15 Jwie 22, 2016 ^n W t� E ,�,^� VJ W cn 0 U W ^U^`` 0 L a_ U- F— a) cn 0 CDL 0 /�L I _ I, O N lfl c-I O N r� O O L!1 Ol O M l0 00 M M N M O M L!1 O I- Ol 00 O zT n l0 O -1 Ol O ci O Ol l0 N ze I� N L!1 tB L!1 O L!1 l0 Ol Il 00 Ol c-I zT 00 O N I� Ol Ol ci 00 O c-I L!1 I� C U F lfl L!1 ci ci ci 00 v N M Q .v O U � � c m E E 3 v Do Ci C (�u _ rn O N N E i N zT N l0 0 C 0 O (U o F- :° v N l0 r-i X O N I4 O 00 C "— O N I� Ol 00 O w n lc L! v c v O -1 O C3) l0 N qT n M `� N N L!1 l0 O1 r, 00 O1 ci 00 N � Ol Ol ci 00 O c-I L!1 I� ci c-I c-I c-I l0 = O -O O O v N np 6 C T O V V O (U N V N O 0 0 O O O 6 a ® Q0 O O v L c-I L!1 L!1 Y � oN 3 v �° °_ o v o y y 0 Ol Ol bn o a O °i °i c — -M N L!1 L!1 N ® a Q0 N N 00 x l0 l0 O O N ^: O N N N V v. ._ — N = v — 1 C O of t6 i H ccN C N C O N e (6 N C aJ O > > >- O N a C .... -O aJ > Q aJ 7 .LO+ Y C: N M 0 ° 3 N ai ai ao N c 0 1° aJ aJ W W > N N O N - Z Z N N t 0 t.6 D � - 5 w N N m a1 a1 l0 N _ um o O O ca ca O Q Q -a E v m a w0+ O Y 3 3 t t W N f6 Ln to O E ° ° y (u i — E C CL O v v O O O C V a > W ai > C m v -a E O N Y N v m m v Ln V a N > bD bD cn > > >. y v -I-- !E m Q Q § o C�C o> .� > x u u � -6 Q L Q > ai r-+ C: c O cc G cc G O Y Y L!1 O_ aJ a LL O V i1 y Q > u v v v ai a .v V (u aai Y �' aJ 7 W C: 7 C: 7 C: r-+ y �+ N Y t6 O Q Q O N .n N .L.+ i a1 a1 a1 a1 a1 (6 'Y 3 Q "— -0 C C a1 Y > (n Q > Q > Q O > N C (u C z C Y O �, N �, N Y Q O >j O Y Up Y Y cb cb a) O N = O u aJ Y aJ L1 L!1 L!1 >j >j C: O O ; L V O U > > ccO -6 N U r.+ r.+ N O_ a1 K (% G Q aJ O O i O O Q EO N p 3 0 a N u o p c v cC cC v E O -6 N L L Q Ou Y (6 u aJ w Up O O W W (mu _� c-I N M F Z In v f6 v SECTION 10: Economic Feasibility Study, Financing Methods, and the Time When Costs or Monetary Obligations Related are to be Incurred The information and exhibits contained within this Section demonstrate that the proposed District is economically feasible insofar as: • The City has available to it the means to secure the necessary financing required to accomplish the projects contained within this Plan. A listing of "Available Financing Methods" follows. • The City expects to complete the projects in one or multiple phases, and can adjust the timing of implementation as needed to coincide with the pace of private development. A discussion of the phasing and projected timeline for project completion is discussed under "Plan Implementation" within this Section. A table identifying the financing method for each phase and the time at which that financing is expected to be incurred is included. The development anticipated to occur as a result of the implementation of this Plan will generate sufficient tax increments to pay for the cost of the Projects. Within this Section are tables identifying: 1) the development and redevelopment expected to occur; 2) a projection of tax increments to be collected resulting from that development and redevelopment and other economic growth within the District; and 3) a cash flow model demonstrating that the projected tax increment collections and all other revenues available to the District will be sufficient to pay all Project Costs. Available Financing Methods To the extent Project Costs cannot be paid from cash on hand, the following is a list of the types of debt obligations that the City could utilize to raise the capital needed to finance Project Costs or to pay commitments to developers. General Obligation (G.O.) Bonds or Notes The City may issue G.O. Bonds or Notes to finance the cost of projects included within this Plan. The Wisconsin State Constitution limits the principal amount of G.O. debt that the City may have outstanding at any point in time to an amount not greater than five percent of its total equalized value. As of December 31, 2015 the City had approximately $41.8 million in unused G.O. debt capacity available. Bonds Issued to Developers ( "Pay as You Go" Financing) The City may issue a bond or other obligation to one or more developers who provide financing for projects included in this Plan. Repayment of the amounts due to the developer under the bonds or other obligations are limited to an agreed percentage of the available annual tax increments collected that result from the improvements made by the developer. To the extent the tax increments collected are insufficient to make annual payments, or to repay the entire obligation over the life of the District, the City's obligation is limited to not more than the agreed percentage of the actual increments collected. Bonds or other obligations issued to developers in this fashion are not general obligations of the City and, therefore, do not count against the City's statutory borrowing capacity. Prroject Rlan TID No. 29 Cireatlion Gity of Oshkosh ul imi tied by Ehlleirs Wage 17 dune 22, 2016 Tax Increment Revenue Bonds The City has the authority to issue revenue bonds secured by the tax increments to be collected. These bonds may be issued directly by the City, or as a form of lease revenue bond by a Redevelopment Authority. Tax Increment Revenue Bonds and Lease Revenue Bonds are not general obligations of the City and therefore do not count against the City's statutory borrowing capacity. To the extent tax increments collected are insufficient to meet the annual debt service requirements of the revenue bonds, the City may be subject to either a permissive or mandatory requirement to appropriate on an annual basis a sum equal to the actual or projected shortfall. Utility Revenue Bonds The City can issue revenue bonds to be repaid from revenues of its various systems, including revenues paid by the City that represent service of the system to the City. There is neither a statutory nor constitutional limitation on the amount of revenue bonds that can be issued, however, water rates are controlled by the Wisconsin Public Service Commission and the City must demonstrate to bond purchasers its ability to repay revenue debt with the assigned rates. To the extent the City utilizes utility revenues other than tax increments to repay a portion of the bonds, the City must reduce the total eligible Project Costs in an equal amount. Special Assessment "B" Bonds The City has the ability to levy special assessments against benefited properties to pay part of the costs for street, curb, gutter, sewer, water, storm sewers and other infrastructure. In the event the City determines that special assessments are appropriate, the City can issue Special Assessment B bonds pledging revenues from special assessment installments to the extent assessment payments are outstanding. These bonds are not counted against the City's statutory borrowing capacity. If special assessments are levied, the City must reduce the total eligible Project Costs under this Plan in an amount equal to the total collected. Plan Implementation The Plan includes potential Project Cost expenditures of approximately $38.8 million to facilitate redevelopment within the District. This total is comprised of $26.3 million in potential "pay as you go" development incentives, $5.7 million for riverwalk improvements and $6.8 million in street and other public infrastructure improvements. The projections included in this plan indicate that while the District will be able to fully fund the proposed development incentives, it will only be able to contribute approximately $10 million towards the $12.5 million in costs for the riverwalk and other public improvements which do not include the costs of related debt service. As such, it is expected that the City will need to contribute other funds through its normal capital improvements planning to fully implement the Projects outlined in the Plan. It is important to note that this Plan does not constitute approval of any particular projects. Based on the 27 year maximum life of the District and corresponding 22 year expenditure period, it can be expected that economic conditions will change throughout the District's life and will alter the projections contained in this Plan. Decisions to undertake specific Projects through the life of the District must be made in the context of the current financial position of the TID and forecasts updated to reflect the best information available at that time. If financing as outlined in this Plan proves unworkable, the City reserves the right to use alternate financing solutions for the projects as they are implemented. Prroject Rlan TID No. 29 Cireatlion Gity of Oshkosh ul imi tied by Ehlleirs Wage 18 dune 22, 2016 cn O Q E I cn cn Q N E Q _O N N n Increment Revenue Projections Type of District 099, Base Value District Creation Date 00, Appreciation Factor Valuation Date hif Wffffffllll, Base Tax Rate Max Life (Years) Rate Adjustment Factor Expenditure Periods /Termination / Revenue Periods /Final Year Extension Eligibility/Years Tax Exempt Discount Rate Recipient District Taxable Discount Rate Construction Inflation Total Year Value Added Valuation Year Increment Increment Revenue Year Tax Rate' iiiiiiiiiiiiiiiiiiiiiii 1 1111111111111111111111 a— E Tax Exempt NPV Taxable NPV Tax Increment Calculation Calculation 1 2016 0 2017 0 0 2018 $25.95 0 0 2 2017 16,100,000 2018 0 16,100,000 2019 $25.95 386,257 375,351 3 2018 7,200,000 2019 0 23,300,000 2020 $25.95 923,750 890,243 4 2019 21,800,000 2020 0 45,100,000 2021 $25.95 1,924,120 1,834,921 5 2020 8,900,000 2021 0 54,000,000 2022 $25.95 3,075,833 2,907,054 6 2021 0 2022 0 54,000,000 2023 $25.95 4,183,249 3,923,294 7 2022 0 2023 0 54,000,000 2024 $25.95 5,248,072 4,886,554 8 2023 3,700,000 2024 0 57,700,000 2025 $25.95 6,342,095 5,862,158 9 2024 0 2025 0 57,700,000 2026 $25.95 7,394,040 6,786,901 10 2025 0 2026 0 57,700,000 2027 $25.95 8,405,525 7,663,434 11 2026 0 2027 0 57,700,000 2028 $25.95 9,378,107 8,494,271 12 2027 0 2028 0 57,700,000 2029 $25.95 10,313,282 9,281,795 13 2028 0 2029 0 57,700,000 2030 $25.95 11,212,489 10,028,262 14 2029 0 2030 0 57,700,000 2031 $25.95 12,077,111 10,735,815 15 2030 0 2031 0 57,700,000 2032 $25.95 12,908,479 11,406,480 16 2031 0 2032 0 57,700,000 2033 $25.95 13,707,870 12,042,182 17 2032 0 2033 0 57,700,000 2034 $25.95 14,476,516 12,644,744 18 2033 0 2034 0 57,700,000 2035 $25.95 15,215,598 13,215,892 19 2034 0 2035 0 57,700,000 2036 $25.95 15,926,255 13,757,264 20 2035 0 2036 0 57,700,000 2037 $25.95 16,609,578 14,270,414 21 2036 0 2037 0 57,700,000 2038 $25.95 17,266,620 14,756,811 22 2037 0 2038 0 57,700,000 2039 $25.95 17,898,390 15,217,852 23 2038 0 2039 0 57,700,000 2040 $25.95 18,505,862 15,654,857 24 2039 0 2040 0 57,700,000 2041 $25.95 19,089,970 16,069,079 25 2040 0 2041 0 57,700,000 2042 $25.95 19,651,612 16,461,708 26 2041 0 2042 0 57,700,000 2043 $25.95 20,191,652 16,833,867 27 2042 0 2043 0 5�77,700,000 2044� $25.9�5�� 20,710,922 17,186,625 /�/ Notes: 'Tax rate is actual rate for 2015/16 taken from the City's Tax Increment Worksheet (DOR Form PC -202). 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SECTION 12: Estimate of Property to be Devoted to Retail Business Pursuant to Wisconsin Statutes Sections 66.1105(5)(b) and 66.1105(6)(am) 1, the City estimates that less than 35% of the territory within the District will be devoted to retail business at the end of the District's maximum expenditure period. SECTION 13: Proposed Zoning Ordinance Changes The proposed Plan is in general conformance with the City of Oshkosh's present zoning and no changes are anticipated to the Plan area's C -3 PD Central Commercial Planned Development Overlay zoning to implement the Plan. SECTION 14: Proposed Changes in Master Plan, Map, Building Codes and City of Oshkosh Ordinances The proposed Plan is in general conformance with the City of Oshkosh's Comprehensive Plan identifying the area as appropriate for mixed downtown development. All development within the District will be required to conform to the State Building Codes and will be subject to the City's permitting and inspection procedures. The proposed Plan conforms to all relevant State and local ordinances, plans, and codes, thus, no changes to the existing regulations are proposed or needed. SECTION 15: Relocation Where the relocation of individuals and business operations would take place as a result of the City's acquisition activities occurring within the District, relocation will be carried out in accordance with the relocation requirements set forth in Chapter 32 of the Wisconsin Statutes and the Federal Uniform Relocation Assistance and Real Property Acquisitions Policy Act of 1970 (P.L. 91 -646) as applicable. Pirojact Rlwi TID No. 29 Ciraatliorl Gity of Oshkosh Subimr tied by Ehlloirs Page 22 Jul is 22, 2016 SECTION 16: Orderly Development of the City of Oshkosh Creation of the District and the implementation of the projects in its Plan will promote the orderly redevelopment of the City of Oshkosh by eliminating blight, facilitating the assembly of parcels of land suitable for redevelopment, providing necessary public infrastructure improvements and providing appropriate financial incentives for private redevelopment projects. By utilizing the provisions of the Tax Increment Finance Law, the City can stabilize property values and attract new investment that results in increased tax base. Redevelopment will occur in an orderly fashion in accordance with approved plans so that the projects will be compatible with adjacent land uses. Development of new uses in the District will add to the tax base and will generate positive secondary impacts in the community such as additional housing opportunities; increased employment opportunities; and amenities such as public open spaces and riverwalks that will enhance the quality of life and recreational opportunities for residents and workers within the District and the community at large. SECTION 17: List of Estimated Non - Project Costs Non - Project costs are public works projects that only partly benefit the District or are not eligible to be paid with tax increments, or costs not eligible to be paid with TIF funds. Examples would include: A public improvement made within the District that also benefits property outside the District. That portion of the total project costs allocable to properties outside of the District would be a non - project cost. A public improvement made outside the District that only partially benefits property within the District. That portion of the total project costs allocable to properties outside of the District would be a non - project cost. Projects undertaken within the District as part of the implementation of this Project Plan, the costs of which are paid fully or in part by impact fees, grants, special assessments, or revenues other than tax increments. The City does not anticipate making any non - project costs in connection with the implementation of this Plan. Piroject 'Ilan TID No. 29 Cireatlion Gity of Oshkosh ul imi tied by Ehlleirs Wage 23 dune 22, 2016 CITY HALL 215 Chuich Avenue P. 0. Box 1130 Oshkosh, Wisconsin 54902-1130 City of Oshkosh City Attorney's Office Phone: (920) 236-5115 Fax: (920) 236-5106 http:/`/www.ci.oshkosh.wi.us June 22, 2016 Darryn Burich Director of Planning Services City of Oshkosh 215 Church Avenue Oshkosh, WI 54903-1130 I reviewed the project plan for, City of Oshkosh Tax Increment District # 29 Morgan Redevelopment, pursuant to Section 66.1105(4)(f) of the Wisconsin Statutes. I find that the plan includes a statement listing the kind, number, and location of proposed public improvements. It also shows an economic feasibility study, a detailed list of estimated project costs, and a description of the method of financing all estimated project costs, the time when the costs are to be incurred, and a list of estimated non-project costs. The plan contains maps of existing uses and conditions of real property, as well as, proposed improvements and uses. The plan shows any proposed changes in zoning of the real property in the district, and any proposed changes in the City's master plan, map Or other municipal codes required Or proposed as part of the district. The plan includes a statement of the proposed method for relocation of any persons to be displaced. The plan further shows that the district will promote the orderly development within the City, which is consistent with the City's Comprehensive Plan (Master Plan), building codes, and other city ordinances in relation to project elements. Upon adoption of the project plan by the Plan Commission and their submission to the City Council, all requirements of Section 66.1105(4)(f), Wisconsin Statutes, shall be complete and it is, therefore, my opinion that the project plan attached hereto is complete and complies with Wis. Stat. § 66.1105, Sincerely, CITY OF OSHKOS " IL�'ni . HLorenVso City Attorney LL/ah Exhibit A: Calculation of the Share of Projected Tax Increments Estimated to be Paid by the Owners of Property in the Overlying Taxing Jurisdictions Project Ran TID No. 29 Ciraatlian Gity of Oshkosh iabirriutted by EMeirs Page 25 Tana 22, 2016 . .. ..... . . Statement of Taxes Data Year: 1 Percentage Winnebago County 19.73% City of Oshkosh 1 41.67% Oshkosh Area School District 34.63% Fox Valley Technical College 3.97% Total Fox Valley Winnebago Oshkosh Area Technical Revenue Year County City of Oshkosh School District College Total Revenue Year 2018 0 0 0 0 0 2018 2019 82,436 174,076 144,679 16,585 417,776 2019 2020 119,301 251,924 209,381 24,001 604,607 2020 2021 230,922 487,629 405,282 46,457 1,170,291 2021 2022 276,492 583,858 485,260 55,625 1,401,235 2022 2023 276,492 583,858 485,260 55,625 1,401,235 2023 2024 276,492 583,858 485,260 55,625 1,401,235 2024 2025 295,437 623,863 518,509 59,436 1,497,245 2025 2026 295,437 623,863 518,509 59,436 1,497,245 2026 2027 295,437 623,863 518,509 59,436 1,497,245 2027 2028 295,437 623,863 518,509 59,436 1,497,245 2028 2029 295,437 623,863 518,509 59,436 1,497,245 2029 2030 295,437 623,863 518,509 59,436 1,497,245 2030 2031 295,437 623,863 518,509 59,436 1,497,245 2031 2032 295,437 623,863 518,509 59,436 1,497,245 2032 2033 295,437 623,863 518,509 59,436 1,497,245 2033 2034 295,437 623,863 518,509 59,436 1,497,245 2034 2035 295,437 623,863 518,509 59,436 1,497,245 2035 2036 295,437 623,863 518,509 59,436 1,497,245 2036 2037 295,437 623,863 518,509 59,436 1,497,245 2037 2038 295,437 623,863 518,509 59,436 1,497,245 2038 2039 295,437 623,863 518,509 59,436 1,497,245 2039 2040 295,437 623,863 518,509 59,436 1,497,245 2040 2041 295,437 623,863 518,509 59,436 1,497,245 2041 2042 295,437 623,863 518,509 59,436 1,497,245 2042 2043 295,437 623,863 518,509 59,436 1,497,245 2043 2044 295,437 623,863 518,509 59,436 1,497,245 2044 7,170,883 15,142,458 12,585,298 1,442,648 36,341,288 Notes: The projection shown above is provided to meet the requirments of Wisconsin Statute 66.1105(4)(i)4. Project Ran TID No. 29 Ciraatlian Gity of Oshkosh iabirriutted by EMeirs Page 25 Tana 22, 2016 Exhibit A Tax Incremental Financing Application Morgan District Redevelopment City of Oshkosh Project Sponsor The Morgan District, LLC 601 Oregon Street Oshkosh, WI 54902 Submitted December 2015 26 Table of Contents • Application Information • Project /Property Summary • Project /Property Summary • Project Narrative • Development Team Narrative • Project Budget /Financial Information o Summary Sources and Uses o Site 1 o Site 2 o Site 3 o Site 4 o Site 5 • Certification /Agreement Page • Appei 0 0 0 0 0 0 0 idix City Summary Letter Detailed Project Narrative Site Map Project Renderings Appraisal Market Study Filing Fee Tax Incremental Financing Application - Morgan District Redevelopment 27 Application Information Page from TIF Application Tax Incremental Financing Application - Morgan District Redevelopment 28 Tax Incremental Financing Policy and Application Please complete and submit the following information to the City of Oshkosh for a more detailed review of the feasibility of your request for Tax Incremental Financing (TIF) assistance. The application is comprised of five parts: 1. Applicant Information 2. Project/ Property Information 3. Project Narrative 4. Project Budget /Financial Information 5. Buyer Certification and Acknowledgement. Where there is not enough space for your response or additional information is requested, please use an attachment. Use attachments only when necessary and to provide clarifying or additional information. The Department of Community Development (DCD) reviews all applications for TIF assistance. Failure to provide all required information in a complete and accurate manner could delay processing of your application and DCD reserves the right to reject or halt processing the application for incomplete submittals. For further information please refer to the "City of Oshkosh Tax Incremental Financing Policy" document. Legal Name: Morgan District, LLC Mailing Address: 601 Oregon Street Primary Contact #: Grant Schwab E -mail: grant @themorganpartners.com Attorney: Whyte Hirschboeck & Dudek Cell #: 920- 203 -1917 FAX #: 920- 233 -7363 Legal Entity: Individuals) Joint Tenants Tenants in Common__ Corporation LLC X Partnership Other If not a Wisconsin corporation /partnership /LLC, state where organized: N/A Will a new entity be created for ownership? Yes No X Principals of existing or proposed corporation /partnership /LLC and extent of ownership interest. Name: Address: Title: Interest: Schwab Properties, LLC 601 Oregon Street, Suite B, Oshkosh, WI Principal TBD Lang Development 15 Sterling Avenue, Oshkosh, WI Principal TBD Jeff Kowalik 631 S Hickory Street, Fond du Lac, WI Principal TBD Is any owner, member, stockholder, partner, officer or director of any previously identified entities, or any member of the immediate family of any such person, an employee of the City of Oshkosh? Yes_ No X If yes, give the name and relationship of the employee: N/A Have any of the applicants (including the principals of the corporation /partnership /LLC) ever been charged or convicted of a misdemeanor or felony? Yes No X If yes, please furnish details: N/A 29 Prof Property Summary Pages from TIF Application Project Narrative Development Team Narrative Tax Incremental Financing Application - Morgan District Redevelopment 30 Tax Incremental Financing Policy and Application Overall Project Summary and Objectives: The property consists of 27 acres of land with over 1,500 linear feet of river frontage along the Fox River. The property is comprised of approximately 23.5 acres west of Oregon Street and 3.5 acres east of Oregon Street. The Developer has been asked to consider developing the property to provide economic benefit to the community. The Developer has submitted this TIF application to provide financial assistance to the development. Current and Proposed Uses: The property is currently being rented to Oshkosh Corporation, formerly Oshkosh Truck. Oshkosh Corporation is using the site for vehicle parking as they design and build specialty trucks and truck bodies. The proposed uses of the property include rental multifamily housing, commercial and retail uses, and a combination of middle- to high -end condominiums that will be sold to individual property owners. The Developer is currently working with a grocer who is interested in leasing a large portion of the commercial space in the first phase of the development. Description of End Users: Based on the proposed uses of the property the end users will include: individuals and families living on the site by renting apartments and purchasing condominiums, individuals in the community frequenting and working at the commercial and retail uses, and business owners renting space from the Developer for their businesses. Property Summary: Parcel /Land Area: 1,176,120 SF Building Area: TBD SF # of Dwelling Units: TBD # of Stories: TBD # of Parking Spaces: TBD Describe any zoning changes that will be needed: The current zoning is C -3 PD. Any requested zoning changes will be less restrictive. Identify any other approvals, permits or licenses (i.e. Liquor License, Health Department, etc): Currently there are not any permits or licenses that need to be approved. This could change depending on the tenants identified for the commercial and retail spaces. Describe briefly what the project will do for the property and neighborhood: The proposed development will bring construction and permanent jobs, new construction rental and for sale housing and commercial space to an underutilized area. The development is consistent with the goals identified for the are in the City's comprehensive plan for the area and would provide economic benefit to the City. 31 Tax Incremental Financing Policy and Application I Summary: Project Timetable Date Final Plan /Specification Preparation: Please see the included project narrative. Bidding and Contracting: Please see the included project narrative. Firm Financing Approval: Please see the included project narrative. Construction/ Rehabilitation: Please see the included project narrative. Landscaping /Site Work: Please see the included project narrative. Occupancy /Lease Up: Please see the included project narrative. Development Team Developer: Morgan District, LLC Architect: Matthew Peterson Surveyor: The Sigma Group (Engineer and Environmental as well) Contractor: Northcentral Construction Other Members: Accounting and Market Analysis: Baker Tilly Virchow Krause, LLP Describe Team expertise and experience in developing similar projects: Please see the included narrative regarding Team expertise and experience. Other current Team projects in development: This can be provided upon request from the City. Financial ability of the applicant to complete the project: The Developer is willing to provide letters from lending institutions upon request from the City. Full and part -time jobs to be created by the proposed project including estimated salary: This information can be provided upon request from the City after development plans are finalized. Current plans include the creation of commercial and retail space that would create part- and full -time jobs in the community. rofessional Studies [ arket Studies: Applications for commercial and residential projects must include a comprehensive market udy. The market study must identify target markets, analysis of competition, demographics, market rents, tters of intent /interest from prospective tenants, or for housing developments, sale prices or rental rates of >mparable properties. ppraisal: All projects that involve the transfer of land must include a recent appraisal. Projects that include nd as a form of equity or collateral must also submit a recent appraisal. The appraisal must value the property .s is ", and the impact on value must be considered for such items as demolition, environmental remediation, location of utilities, lease buy -outs, and other work necessary to make the site developable. The property gust be valued assuming that the highest and best use is the proposed use. 32 Project Narrative Current Status All structures and foundations have been removed from the site. Additional site work and planning has continued in 2015 with anticipated groundbreaking for site 1 of the Project in fall 2016. Proposed Development The Project is anticipated to be completed in five or more phases over several years. Currently there is a strong market demand for multifamily properties and commercial space. Taking that into consideration, the initial phases are anticipated to contain residential development along with commercial space to provide amenity access to the residential tenants and the community. The Developer is working with a grocer to fill the majority of the commercial space for site 1. Depending on the timeliness of the Project and the approval of the TIF, the market demand could change and dictate the Developer to reevaluate future phases of the Project prior to commencement It is the Developer's ultimate goal to have a successful long -term development that provides benefits to the community, supports the City of Oshkosh's development goals, and provides the required rate of return to the Developer. Timing and Sources Overview The commencement of construction is currently anticipated to be: • Site 1: fall 2016 • Site 2: fall 2017 • Site 3: fall 2018 • Site 4: fall 2018 • Site 5: fall 2019 The current total development cost for all five phases of planned development is approximately $68.6 million. Substantial costs are involved with the site and public /private infrastructure work necessary for redevelopment of the riverfront property. The Project is estimated to leverage no more than $40.4 million in private debt coupled with approximately $15.8 million of Developer equity, deferred financing, or additional federal and state funding sources that can be raised for the redevelopment leaving a $12.4 million development funding gap. The Developer is requesting a Pay -As- You -Go TIF Note to support the redevelopment and make the Project feasible to develop. Since the first TIF application was submitted to the City in September 2014, the federal New Markets Tax Credit ( "NMTC ") program and a grant from the State of Wisconsin have been identified as potential sources for supporting the development of the grocery store and infrastructure needs for site 1. The funding from these two sources, if any, have not been quantified or included in the financial analysis because the programs require applications and approvals from various agencies. However, the financial gap for site 1 is large enough that TIF assistance in addition to support from other programs is required. Community Development Entities ( "CDEs "), the intermediaries that award NMTC allocations, and the State of Wisconsin will look favorably on the Tax Incremental Financing Application - Morgan District Redevelopment 33 Project with the TIF commitment from the City. It will demonstrate a strong public - private partnership. Baker Tilly Virchow Krause, LLP is assisting the Developer in the process of applying to CDEs for a NMTC allocation. More information about these programs can be provided in the future as the Project moves forward. TIF Request The Developer is requesting a Pay -As- You -Go TIF Note to support the Project. It is anticipated that a new 27 year Tax Increment District ( "TID ") will be created by the City and that the Developer will receive 90% of the property tax increment generated from the Project for the remaining life of the TID for each site. The Developer understands that this percentage of TIF assistance surpasses the City's guidelines for the typical development requesting TIF. The request is 18.08% of total Project costs, falling below the TIF Cap of 25 %. The detailed sources and uses, operating pro forma assumptions, and reversion calculations are included in the appendix for each site that demonstrate why the Developer's request is necessary to make the Project financially feasible. The `Detailed Project Narrative' in the appendix also details the TIF funding criteria that the Project meets or exceeds. At this time the Developer is seeking a TIF Note from the City just for site 1, but the projected need for TIF assistance for future sites is included in this application to support the City's efforts to create a new TID. Lender Relationships The Developer has very strong relationships with many lending institutions and could have financing in place before the commencement of any Phase of the Project The Developer is willing to provide letters of financial reference from lending institutions upon request Tax Incremental Financing Application - Morgan District Redevelopment 34 Development Team Narrative The Development Team at this point consists of the following. Developer - The Morgan District, LLC Contractor - Northcentral Construction Corporation Surveyor, Engineer, and Environmental- The Sigma Group Accounting Company and Market Analysis - Baker Tilly Virchow Krause, LLP Legal Firm - Whyte Hirschboeck & Dudek S.C. *Please note that this is a list of companies that the Developer has used this far and this list can change based on the final scope of the Project 1. Morgan District, LLC is comprised of Jeff Kowalik, Grant and Dennis Schwab, Nicholas and Peter Lang. • Jeff Kowalik has over 25 years in the commercial and multifamily construction field and founded Northcentral Construction in 1990. Northcentral Construction Corporation has extensive development experience that is detailed below. Jeff has also earned the designation of Senior Certified Development Professional from ICSC for his work. • Lang Development partners Peter and Nicholas Lang manage, own and have developed a number of commercial, retail and multi - family properties through their family of companies. They are a second generation company grounded in a strong Midwest work ethic. The Lang's also have a proven track record in the remediation, clean up and redevelopment of Brownfield sites. • Schwab Properties, LLC, which is operated by Dennis and Grant Schwab, was started in 1967 by Dennis Schwab focused on the purchase and rehabilitation of multifamily properties. Over the past 40 plus years Schwab Properties has grown into owning and developing retail, multifamily, and commercial projects around the Fox Valley area and the State of Wisconsin. Currently Schwab Properties owns and manages over 400 multifamily units in the City of Oshkosh. The Schwab Group was integral in redevelopment of the former foundry site. Tax Incremental Financing Application - Morgan District Redevelopment 35 2. Northcentral Constuction Corporation ( "NCC ") • NCC was founded in 1990. The Company is built around the core vision of understanding and exceeding client's needs and deadlines. They are located in Fond du Lac, WI and serve clients throughout the Midwest in a variety of sectors including: multifamily, senior housing, tax credit, retail, commercial, hospitality, health care, and rehabilitation. They have constructed in excess of 6,000 multifamily units, is a preferred contractor for Walgreen's, TJ Maxx, and JoAnn Fabrics in the Midwest, and has built for a vast array of other retailers including: PetSmart, Staples, Roundy's, Petco, and McDonald's. 3. The Sigma Group ( "Sigma ") Sigma focuses on creating functional, innovative solutions that optimize results. They offer a diverse range of services, expertise and can -do attitude that enables their clients to achieve a successful balance between today's challenges and the long -term need to preserve important resources. 4. Baker Tilly Virchow Krause, LLP (" BTVK ") • BTVK is one of the top 15 accounting and advisory firms in the United States. They offer innovative financial solutions and solid business strategies through diverse industry and service specialization. S. Whyte Hirschboeck & Dudek S.C. ( "WHD ") • WHD is a full- service law firm founded in 1943. Much has changed since then, but, throughout, there remains a notable constant: WHD's commitment to the success of each client Just as experience is important in other types of business, legal experience is an essential component in WHD's ability to deliver effective and efficient services. With more than 150 professionals, WHD offers clients the legal experience necessary to provide the technical, yet practical, advice that every client deserves. Many of WHD's attorneys have gone beyond the study of law and have earned graduate degrees in a wide variety of fields including engineering, medicine, business, technology, tax, political science and dispute resolution. Tax Incremental Financing Application - Morgan District Redevelopment 36 Projec�getf Financial Information Summary Sources and Uses Site 1 Site 2 Site 3 Site 4 Site S Tax Incremental Financing Application - Morgan District Redevelopment 37 Morgan District Redevelopment Summary of Sources and Uses Timing Phase I: 2016 Phase II: 2017 Phase III: 2018 Phase IV: 2018 Phase V: 2019 Sources Site I Site II Site III Site IV Site V Total Private First Mortgage $ 12,700,000 $ 5,500,000 $ 11,100,000 $ 3,500,000 $ 7,600,000 $ 40,400,000 Equity $ 5,961,521 $ 1,400,000 $ 3,200,000 $ 2,340,500 $ 1,900,000 $ 14,802,021 Monetized TIF Note $ 4,037,000 $ 1,615,000 $ 3,018,000 $ 2,179,000 $ 1,595,000 $ 12,444,000 Deferred Developers Fee $ 297,979 $ 146,500 $ 220,000 $ - $ 325,400 $ 989,879 $ 22,996,500 $ 8,661,500 $ 17,538,000 $ 8,019,500 $ 11,420,400 $ 68,635,900 Uses Land $ 175,000 $ 225,000 $ 245,000 $ 200,000 $ 80,000 $ 925,000 Site Work $ 4,400,000 $ 782,000 $ 1,960,000 $ 280,000 $ 1,960,000 $ 9,382,000 Hard Costs $ 16,800,000 $ 6,240,000 $ 12,900,000 $ 6,487,000 $ 7,400,000 $ 49,827,000 Soft Costs $ 387,500 $ 225,000 $ 790,500 $ 795,000 $ 637,500 $ 2,835,500 Financing Fees $ 562,500 $ 375,000 $ 787,500 $ 187,500 $ 587,500 $ 2,500,000 Professional Fees $ 34,500 $ 34,500 $ 85,000 $ 70,000 $ 105,400 $ 329,400 Developer Fee /Reserves $ 637,000 $ 780,000 $ 770,000 $ - $ 650,000 $ 2,837,000 $ 22,996,500 $ 8,661,500 $ 17,538,000 $ 8,019,500 $ 11,420,400 $ 68,635,900 NOTE: PHASE I ONLY: Since the first TIF application was submitted to the City in September 2014, the federal New Markets Tax Credit ( "NMTC') program and a grant from the State of Wisconsin have been identified as potential sources for supporting the development of the grocery store and infrastructure needs for site 1. The funding from these two sources, if any, have not been quantified or included in the financial analysis because the programs require applications and approvals from various agencies. However, the financial gap for site 1 is large enough that TIF assistance in addition to support from other programs is required. Community Development Entities ( "CDEs"), the intermediaries that award NMTC allocations, and the State of Wisconsin will look favorably on the Project with the TIF commitment from the City. It will demonstrate a strong public - private partnership. Baker Tilly Virchow Krause, LLP is assisting the Developer in the process of applying to CDEs for a NMTC allocation. More information about these programs can be provided in the future as the Project moves forward. 38 a) (n O a) a) t E o m j O E 1:1) O > O to S� m a) W > 0 c 0 m o U m O m D E E o 0 0 �° m QU m U � ~ m o O) o .� to O U) m 0- m c o U .o — Q Z U m a U Q 0) C i m O a) U) N !? 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Piers 500,000 - 500,000 Construction Contingency 190,400 - 190,400 Hard Costs Apartment/Commercial Building 18,363,200 - 18,363,200 Soft Costs Architecture 187,500 - 187,500 Engineering 315,400 - 315,400 Title 20,000 - 20,000 Building Permit 10,000 - 10,000 Real Estate Taxes 5,000 - 5,000 Marketing 15,000 - 15,000 Insurance 25,000 - 25,000 Financing Fees Financing Fees 62,500 - 62,500 Construction Loan Interest 500,000 - 500,000 Professional Fees Appraisal 5,000 - 5,000 Market Study 4,500 - 4,500 Legal /Accounting 25,000 - 25,000 Developer Fees / Reserves Developer Fee 637,000 - 637,000 Total Uses Of Funds $ 22,996,500 $ - $ 22,996,500 PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/8/2015 42 (D N O N IO O O N co O N Cl) n O N N (D O N LO O N O O N D) r M O N co N p N I- z N O H W CL O 2 O w LL O J LL J Q = UU r L �W z LL vO 0 aU �W aI � 00 LL O M M O (O (0 M Cl) 00 00 00 r— O O O O O M V 00 LO 00 00 O LO Cl) 0 0 0 N LO r— r— r— 00 M M Cl) Cl) O Cl) Cl) N O LO Cl) (O O I� (O N M (O (O (O M O O O O O I� V M_ I� V O 00 _ V 00 (D O Cl) (D (D (D Cl) V V r— r— O M V V V (D 1 O N V N LO N N N Cl) LO N 00 V (D N O N (0 M M (0 M V 00 00 00 00 V V N N O Cl) O LO Cl) O 00 r- It O ZT LO O V (D r— 00 00 00 Cl) 00 00 O O LO V O LO O 1- LO Cl) O (f) _ OO O — I! 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E C C O N a) of U) N N T L x !? U (� N C N C X O W N fC �' M �' N LL N C. N E U W i () N > LL Q U) a� x LL 0- O a� x of O L O C a R W p U U V E 75 O� N f E N V > cC a 0) N N d E � Z C c: E N U) � n d C. " L (n N d m c O y E E o w d N m N N w aI E e E O O r U N N c(0 i E uN i E E O O U ;a u . N o O- u) 'a NI E 2 Q u) O E +' ai uc j N z �> OooUU UX O N� ��� O p N Z y — U Lu U 0 LO O N N M V Morgan District Site I, LLC Before Tax Cash Flow Equity Analysis IRR -3.62% 1VITIII OMaI100Gii'. -10.31% NOTE: Project not financially feasible but for other sources discussed in the application narrative (not detailed here) and the monetized TIF note to reduce equity required for development Projected Cash Flows $ (9,998,521) Equity Required $ 808,023 $ 225,322 $ 243,943 $ 262,780 $ 281,835 $ 301,107 $ 320,593 $ 340,295 $ 360,213 $ 1,532,768 Cash Flow Year 10 + Proceeds from Reversion Per Cash Flow Tab NOI /Cap Rate 6% SP - SE 44 Projected Cash Period Year Flows 0 2016 $ (5,961,521) 1 2017 $ 808,023 2 2018 $ 225,322 3 2019 $ 243,943 4 2020 $ 262,780 5 2021 $ 281,835 6 2022 $ 301,107 7 2023 $ 320,593 8 2024 $ 340,295 9 2025 $ 360,213 10 2026 $ 1,532,768 Proceeds from Reversion Analysis Year 10 NOI $ 1,344,498 Cap Rate @ Sell 7.0% Sales Price $ 19,207,119 Selling Expenses $ 1,152,427 Net Sales Price $ 18,054,692 Gain /Proceeds from Reversion $ 1,152,427 1VITIII OMaI100Gii'. -10.31% NOTE: Project not financially feasible but for other sources discussed in the application narrative (not detailed here) and the monetized TIF note to reduce equity required for development Projected Cash Flows $ (9,998,521) Equity Required $ 808,023 $ 225,322 $ 243,943 $ 262,780 $ 281,835 $ 301,107 $ 320,593 $ 340,295 $ 360,213 $ 1,532,768 Cash Flow Year 10 + Proceeds from Reversion Per Cash Flow Tab NOI /Cap Rate 6% SP - SE 44 V��nnnn� ��nnn�uunnnnn� uuu annum mam uuuunnnnn U� J s J N 0 Q� O V > N Cl) N N � r 0 � � otS O C 5 L O • • n ZR M, O N N \o k( 7§ /< \w 80 w § IL < [ LL o -�e £ ) \\\ \\ \j \ \\ \\ \j\\ ! / MA §� )�a ) ° \ ` oa ))2 / 3{ /// og aa� 0 _ ) _ §)» f§)» Z §)» 0M> *> � 2 » ®` U) b \ ) _ - \ \ \ \ \ j IL\ 0 \) // !\ \\{ . §/ - } .»3 § IL < [ LL o -�e £ ) \\\ \\ \j \ \\ \\ \j\\ LL \\ a® $ ! / MA §� )�a ) ° )\ ))2 } a )/ /// - ) b \ ) _ - \ \ \ \ \ j IL\ 0 LL \\ a® $ JZ 0 r ~ a nQ �U �W R Of 0 O w 2a m o 0 0 0 U O O O O O O O O EN O O E U E i r w E E O U U w m � .. m w > cy O U O ly N � m H °o O M N a LU m Q H O r O M � 0 0 0 0 0 0 0000 0 M M M M O N 00 00 N � r E E E W ° o C� C U . E N N 0 N N C m Z N U U N U J E a a o m U c Q O x x U 6 d U w w > V m m m m E E W o .L .L .L .L o 0 E E E E - - 0 E E E E s s 0 �p O O O O .• .• U m U U U U 0 0 N � N N Ul (6 O U U � U C LL C L m ° - x L �O/1 O. fl Z w Lu LL xSa �m -Lj mz E U m o E Lu o m m� E� c °-� m ° Z `6U c U >. Oly2 � Q W �M mmmm �m F m om a w a s o w° o Z c c W ly ly a� QQQQ -Q K 00 00 N � r E E E W ° o C� C U . E N N 0 N N C m Z N U U N U J E a a o m U c Q O x x U 6 d U w w > V m m m m E E W o .L .L .L .L o 0 E E E E - - 0 E E E E s s 0 �p O O O O .• .• U m U U U U 0 0 Morgan District Site II, LLC SOURCES AND USES PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/3/2015 48 Post SOURCES OF FUNDS Construction Construction I Permanent First Mortgage $ - $ 5,500,000 $ 5,500,000 Equity 1,400,000 - 1,400,000 Monetized TIF Note 1,615,000 - 1,615,000 Deferred Developers Fee - 146,500 146,500 Construction Loan 5,646,500 (5,646,500) - Total Sources Of Funds $ 8,661,500 $ - $ 8,661,500 Post Total USES OF FUNDS Construction Construction Permanent Land Acquisition 225,000 - 225,000 Site Work Excavation/ Erosion Control 125,000 - 125,000 Environmental/ Disposal 70,000 - 70,000 Site Utilities 60,000 - 60,000 Site Concrete 72,000 - 72,000 Asphalt Paving 105,000 - 105,000 Landscaping 50,000 - 50,000 Utility Allowance 30,000 - 30,000 Site Lighting 30,000 - 30,000 Signage 35,000 - 35,000 Rammed Agg. Piers 205,000 - 205,000 Hard Costs Office Building #1 2,400,000 - 2,400,000 Office Building # 2 2,400,000 - 2,400,000 Office Interior Finish 1,440,000 - 1,440,000 Soft Costs Architecture 100,000 - 100,000 Engineering 50,000 - 50,000 Title 20,000 - 20,000 Building Permit 10,000 - 10,000 Real Estate Taxes 5,000 - 5,000 Marketing 15,000 - 15,000 Insurance 25,000 - 25,000 Financing Fees Financing Fees 50,000 - 50,000 Construction Loan Interest 325,000 - 325,000 Professional Fees Appraisal 5,000 - 5,000 Market Study 4,500 - 4,500 Legal /Accounting 25,000 - 25,000 Developer Fees / Reserves Developer Fee 780,000 - 780,000 Total Uses Of Funds $ 8,661,500 $ - $ 8,661,500 PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/3/2015 48 I- N O N (D O O N LO co O N n O N Cl) O O N N LO O N O N O Cl) 0 N D) r N O N co Z N O H W CL O 2 O w LL O J LL U = i J Q U r L W Z r LL vO DQ aU �W a) � OO 2 LL Lo — OO 00 00 0 0 0 0 � M M r- 1- N O) V LO O (O 00 00 M M Cl) Cl) N (O Cl) O O 00 V M M (O M L( L( i O O O O V M Lr Lr Lr O L(i _ _ _ I0 Cl) O _ _ _ _ _ _ _ _ O lC) _ 00 _ 00 _ M _ I� 00 V Cl) O) O O Cl) N O O I— N —0') O N Cl) Cl) (D V I- r— 000 aO V V N N V (O V I- 1- O O 0 0) N N 00 00 O O LO O O O O Cl) V (O O O) Lr N N � I� OO OO Lr Lr I� N N O) L( (O 00 O O M M (O (O 00 V O O (D I- I- Cl) Cl) E 0 O Cl) N 0') O O (O I— N —0') O — Cl) Cl) M V G (M Cl) V V 1- 1- O O N N N O 00 O Cl) V V — LO LO LO M I- _ Cl) V LO I- V OO M M l(') W I� I� OO OO O M M O L( _ _ _ (O O I- _ O _ O _ _ _ _ _ _ _ M M M M O� V _ N _ N _ _ - Cl) 'IT C Cl) N LO r- N — N N ((D V N (O O O V V O I- — V V I� O) V V I- O N N V V N N N O I- V V I- V LO O O O _ _ _ O _ O _ N N (O (O M O M _ _ _ _ _ _ _ Lr _ Lr _ Cl) _ L(i _ V I- 00 00 M M (O (O V I— M V V V V N Cl) N N 00 Cl) N 00 00 V — I� N —0') O — N N M V V 00 O N N O O LO LO O O O 00 00 LO O) O N I- LO LO m m O O M r— O m OO (D V LO (M (I� M O O) O) V V O) (M (O O O O) Lr 1- _ _ _ M _ OO _ _ _ _ _ _ _ N N M M OO M N _ M _ M _ _ - N O CD Cl) N� � Cl) I� N `-' O O — � N N M V N r— r— V V m I- O 1- 1- O O OO M Lr) Lr) N N M M (O (O V LO N M Cl) 00 V V O) (O _ _ _ V _ V _ I� I� M M I� M O _ _ _ _ _ _ _ M _ M _ � L( _ M M N N (O (O M C6, I\ a0O OOO N ((D ((D I� N `-' OO OO N N M V O) — M M LO LO N N I- r— m I- 1- (D O) (O V V LO Cl) Cl) m m V V M LO M m 00 V V V O) (M M V V N N (O O) (M V V 00 Lr 0) (O V O O N N (O (O OO V— N N I� � 00 � M Cl) N ((D N- N N ((D V O V N N N O O O O V N LO O) Cl) V O) I- M M V V N N I� � M M Cl) Cl) V V V V N (O (O N N — — I- N S W LO W) O V N N (O (O co V O Lo L M � 00 O Cl) l(') l(7 (O Cl) N LO LO O) (O N —00 OO — N N LO V O I- O r— r— O O O O r— O O r— 1- O O O O I- O r— 1- O O O O I- O M Cl) Cl) V V V O (O (O O O O O O O (O (O — V V (O W� N (O Cl) LO LO N N (O (O O c) O O O V � M OO M N— LO 1- � — V O c) O c) M O O O O O O O Cl) O (O O (O (O O O LO LO O O O (O O L( (O O O) Lr Lr I- � ' M cc N LO M O O M M (O (O (O I-� [- Cl) Cl) V N LO LO N M M OO LO LO LO V \° 0 O Cl) c a� E y U N E N d - E O X a) c W co C O o c X 0 E Ec p ate) aa)) y U a) 0` cc W � E !? U (, C X 0 C. O x M R �a) 06 a) m LL ate) � U W >.i > U) a� X ��O U) m m d W co U w a� a) o R R O v in W v v d (n v m �) E v `m y > a) .� w 0 E aa) E E U w W E m m a�i E O� 0 c U v E m o o r a o QN r a) U) z 0mUUw 0 o �of��U W Z o (o H rop O N M N 01 Morgan District Site II, LLC Before Tax Cash Flow Equity Analysis 50 With TIF Note Without TIF Note NOTE: Project not financially feasible but for the monetized TIF note to reduce equity IRR 14.63% - 0.77% required for development Projected Cash Projected Cash Period Year Flows Flows 0 2016 $ (1,400,000) $ (3,015,000) Equity Required 1 2017 $ 483,863 $ 483,863 2 2018 $ 167,091 $ 167,091 3 2019 $ 178,583 $ 178,583 4 2020 $ 190,298 $ 190,298 5 2021 $ 202,241 $ 202,241 6 2022 $ 214,416 $ 214,416 7 2023 $ 226,829 $ 226,829 8 2024 $ 239,482 $ 239,482 9 2025 $ 252,382 $ 252,382 10 2026 $ 720,921 $ 720,921 Cash Flow Year 10 + Proceeds from Reversion Proceeds from Reversion Analysis Year 10 NOI $ 683,082 Per Cash Flow Tab Cap Rate @ Sell 9.0% Sales Price $ 7,589,795 NOI /Cap Rate Selling Expenses $ 455,388 6% Net Sales Price $ 7,134,407 SP-SE Gain /Proceeds from Reversion $ 455,388 50 �IIIIIIIIII uPNNNNNRnnnlllll NNN nnnlllll �Nm uuuNNnnnn U� J n O Y rn O a� > o > N Q a) L � +� N N Lf) r 0 to N L O 0 � C L c O • • n @NNNNNNnnnnlllll luuuu IIIIIIIII�� lu Iml NNNNNNN INN IIIIIIII IN NNNNNNn I NNNNNIIII I NNNNNIIII IIUN I NNNNNNN INN IIIIIIII INN IIIIIIII @NNNNNNnnnnlllll I NNNnnllll I NNNnnllll N A R LL 7 M, O N N LL \\ a® / \ ` oa / 3{ o 46 g aa� 0 _ §)» f §)» E _ Z §)» � *> 2 » ®` U) \) // !\ \\{ . §/ - .»3 } § IL [ < 0,/ & ®«/ ( t — o 2:,: -�e £ 4 )0 \j \ \\ \\ \j\\ \\ ] { @ ( MA / }§ 00 ;e IL 0 0 a )�a §2 2 - )\ )\ ) j )/ ) /// \ \ w \/\ - 10 - I \ \ \ \ j IL \ 0 LL \\ a® / S� }k \\ k[ (§ £IL LL [` \�)} - § \ \®\ °E }\m» §5 § |§= m:)E /} 2LUm !!F � ::ly { Lu \ (\ \) / ƒ)\ @ !a §§)) »// _ k)§) ---- - ::::7: z ))} /) _ - }// / / / /)/ 2 ƒƒ ƒ@@ ƒ [` \�)} - § \ \®\ °E }\m» §5 § |§= m:)E /} 2LUm !!F � ::ly { Lu \ (\ \) / ƒ)\ @ !a §§)) »// _ k)§) ---- - ::::7: z ))} /) _ - }// / / / /)/ 2 ƒƒ ƒ@@ ; _ ;) Morgan District Site III, LLC SOURCES AND USES PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/9/2015 54 Post SOURCES OF FUNDS Construction Construction I Permanent First Mortgage $ - $ 11,100,000 $ 11,100,000 Equity 3,200,000 - 3,200,000 Monetized TIF Note 3,018,000 - 3,018,000 Deferred Developers Fee - 220,000 220,000 Construction Loan 11,320,000 (11,320,000) - Total Sources Of Funds $ 17,538,000 $ - $ 17,538,000 Post Total USES OF FUNDS Construction Construction Permanent Land Acquisition 245,000 - 245,000 Site Work Excavation/ Erosion Control 350,000 - 350,000 Environmental/ Disposal 175,000 - 175,000 Site Utilities 140,000 - 140,000 Site Concrete 105,000 - 105,000 Asphalt Paving 245,000 - 245,000 Landscaping 105,000 - 105,000 Utility Allowance 52,500 - 52,500 Site Lighting 52,500 - 52,500 Signage 35,000 - 35,000 Rammed Agg. Piers 700,000 - 700,000 Hard Costs 2 large MF Buildings 12,900,000 - 12,900,000 Soft Costs Architecture 262,500 - 262,500 Engineering 175,000 - 175,000 Title 100,000 - 100,000 Building Permit 75,000 - 75,000 Real Estate Taxes 25,000 - 25,000 Marketing 78,000 - 78,000 Insurance 75,000 - 75,000 Soft Cost Contingency - - - Financing Fees Financing Fees 87,500 - 87,500 Construction Loan Interest 700,000 - 700,000 Professional Fees Appraisal 10,000 - 10,000 Soil Testing 15,000 - 15,000 Market Study 10,000 - 10,000 Legal /Accounting 50,000 - 50,000 Developer Fees / Reserves Developer Fee 770,000 - 770,000 Reserves and Escrows - - - Total Uses Of Funds $ 17,538,000 $ - $ 17,538,000 PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/9/2015 54 CO Z O W M O 2 O w LL O J U LL J CO U } W CO Z a+ LL vO V! co 0 �U mW `Ow 2O LL N O N N O 00 (O O O O N N O O O N O O I- Cl) r Cl) N V 00 00 00 Cl) O' N r r M O M Cl) r r O O r M n r LO V V W M- � V V V C Cl) In (9 r- 04 O O O V I- r 00 (O I- r 00 In CO V O N (O O I- O In V V V N O O N (O In In O 00 Cl) CO ' O N N I- 11-0 V I- a0 M Cl) 00 M co In W r �N Cl) r O O M O M Cl) LO aOMMO N N V N O Oro N 010 r r 000 00 I- r N M In CO M N Cl) Cl) V O In In N CO Cl) In In 00 O 00 N O O Cl) 00 Cl) Cl) ' O V V 00 O In I- O O N N N M I- (O O 0 0 O O W M O W N N V 00 In 00 O N O N O W Cl) N N W � In In O O Cl) O O V Cl) 00 I- r Cl) O Cl) LO O In In W Cl) In M 00 N N N 00 Cl) ' 00 Cl) Cl) O In - O r N M M r M l O In V N V W r r M O N N N O W - W 00 N V 00 In M O N N (M9 (M9 000 N O N N O M M In 00 O Cl) Cl) O O 00 I- r Cl) V 00 I- O V O O (O 00 Cl) (O ' I- O O r N W V 0 (O Cl) (O Cl M V W D C LO (r9 W (r9 W M W M In W N V I- In W M M In O N N W M (M9 (M9 W Cl) 00 In In O N- (O V V I- r O O O C'4 CO N N � (M9 C4 C4 M 000 V 0- r � N I- M V C Oo V I- V (O V In (O N V r In M In (( In O N 0 r- r N r M (9 (9 O 00 (O 00 O Cl) I- Cl) In O V O O I- (O W 00 00 N O (O V O- In In N 00 N 00 ' In N N In V N O 00 O (O N N O ! Np O O O (O M V M V In N V r In M r_ r M N N r M (N9 (N9 O 000 (O In O O O O (O I- Cl) Cl) 00 O In O In V V In CO O O (O V O O V 00 N V ' In O O I- N- In I- Cl) M M N M O a0 M 04 - M In N N V M N V I- In CO 00 O O I- N O r (D N (D (09 (09 O 000 O V (O (O O O O O O Cl) Cl) Cl) Cl) O Cl) O V In In O O O O N N Cl) 00 V 00 ' In N N O O O O O I- M M M M O V O V LO V Cl) In O O V N V I- In M 00 N Cl) N Cl) ON N 1- V p 00 CO N O O N O O O - 0 0 C4 C4 � V ' M M r GO W W r Cl) Cl) W Cl) W O O M _ N In CO (O M O M O V O N N N O N 1-: 1-: 0 0 °O °O M Cl) V) a) al E y C N C- rn 4% m X 0 E O C N U W C O O cu E CL U) Q (n N 0) a) U C + X _ a) N a) Q L W a) x °� m LL a) O O a) R EO E LL Q Q U • C, U al W m U W N U R C C 0 R R (C L V R U W r c U i..a t� a) ) �,, .N m o m E fU L C C U V! Z C C C N W C. Q M O 'a N m W W N N N N O O C) Q U z aa))ir O >O o X ata2E0 Sof2EIr aa)) p N a) DD la _ w W F- W a W � Z Top O N 6) N Ln Ln Morgan District Site III, LLC Before Tax Cash Flow Equity Analysis With TIF Note I RR 6.88% Proceeds from Reversion Analysis Projected Cash Period Year Cap Rate @ Sell Flows 0 2016 $ (3,200,000) 1 2017 $ 1,041,742 2 2018 $ 358,944 3 2019 $ 214,559 4 2020 $ 230,440 5 2021 $ 246,480 6 2022 $ 262,680 7 2023 $ 279,034 8 2024 $ 295,545 9 2025 $ 312,207 10 2026 $ 1,333,343 Proceeds from Reversion Analysis Year 10 NOI $ 1,171,710 Cap Rate @ Sell 7.0% Sales Price $ 16,738,709 Selling Expenses $ 1,004,323 Net Sales Price $ 15,734,387 Gain /Proceeds from Reversion $ 1,004,323 Without TIF Note NOTE: Project not financially feasible but for the monetized TIF note to reduce equity 4.88% required for development Projected Cash Flows $ (6,218,000) Equity Required $ 1,041,742 $ 358,944 $ 214,559 $ 230,440 $ 246,480 $ 262,680 $ 279,034 $ 295,545 $ 312,207 $ 1,333,343 Cash Flow Year 10 + Proceeds from Reversion Per Cash Flow Tab NOI /Cap Rate 6% SP -SE 56 Morgan District Redevelopment Site IV For Sale Waterfront Condos 57 With TIF Note Without TIF Note Total Units 24 24 Sources per Unit per Unit Equity 2,340,500 97,521 4,519,500 188,313 Debt 3,500,000 145,833 3,500,000 145,833 TIF 2,179,000 90,792 0 0 Total Sources $ 8,019,500 $ 334,146 $ 8,019,500 $ 334,146 Uses Land Acquisition 200,000 8,333 200,000 8,333 Site Work 280,000 11,667 280,000 11,667 Hard Costs 6,487,000 270,292 6,487,000 270,292 Soft Costs 795,000 33,125 795,000 33,125 Financing Fees 187,500 7,813 187,500 7,813 Professional Fees 70,000 2,917 70,000 2,917 Developer Fee /Reserves 0 0 0 0 Total Uses $ 8,019,500 $ 334,146 $ 8,019,500 $ 334,146 Sales Price (Avg Per Unit) $ 375,000 $ 375,000 Gross Profit $ 9,000,000 $ 9,000,000 SE @ 7% of GP $ 630,000 26,250 $ 630,000 26,250 Net Profit $ 350,500 14,604 $ 350,500 14,604 Return on Equity (before tax) 15.0% 7.8 57 � * � > � \ L k _ t 0 ? 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J a Z m z m- E E Z o m m o 0 W 0 C7 N N (6 (6 �� m U Qa o (6 N N N N �°�� 'c 'c 'c F Z c -- Nwy�-gL om a° o c c W p W m D-20 — ly ly a QQQ Q -Q K Kco d' d' d'U U Morgan District Site V, LLC SOURCES AND USES PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/9/2015 61 Post SOURCES OF FUNDS Construction Construction I Permanent First Mortgage $ - $ 7,600,000 $ 7,600,000 Equity 1,900,000 - 1,900,000 Monetized TIF Note 1,595,000 - 1,595,000 Deferred Developers Fee - 325,400 325,400 Construction Loan 7,925,400 (7,925,400) - Total Sources Of Funds $ 11,420,400 $ - $ 11,420,400 Post Total USES OF FUNDS Construction Construction Permanent Land Acquisition 80,000 - 80,000 Site Work Excavation/ Erosion Control 350,000 - 350,000 Environmental/ Disposal 175,000 - 175,000 Site Utilities 140,000 - 140,000 Site Concrete 105,000 - 105,000 Asphalt Paving 245,000 - 245,000 Landscaping 105,000 - 105,000 Utility Allowance 52,500 - 52,500 Site Lighting 52,500 - 52,500 Signage 35,000 - 35,000 Rammed Agg. Piers 700,000 - 700,000 Hard Costs 9 - Townhouse Buildings 7,400,000 - 7,400,000 Soft Costs Architecture 262,500 - 262,500 Engineering 175,000 - 175,000 Title 40,000 - 40,000 Building Permit 20,000 - 20,000 Real Estate Taxes 15,000 - 15,000 Marketing 75,000 - 75,000 Insurance 50,000 - 50,000 Financing Fees Financing Fees 87,500 - 87,500 Construction Loan Interest 500,000 - 500,000 Professional Fees Appraisal 10,000 - 10,000 Soil Testing 15,000 - 15,000 Market Study 8,000 - 8,000 Legal /Accounting 40,000 - 40,000 Commissions 32,400 - 32,400 Developer Fees / Reserves Developer Fee 650,000 - 650,000 Total Uses Of Funds $ 11,420,400 $ - $ 11,420,400 PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/9/2015 61 CO Z O F- 0 2 O w LL O J LL U = J J Q CO > U LU Y CO Z V LL �O V! co 0 �U R W `o 0 2O LL ,I- I (N9 C T O M N M r C W a0 A N O Cl) c N M � N M rO M N O 00 G co N N 0 O N 0 L 0 CD N N r co 0') 0 le CD N r N co G L N Cl) Cl) r t O N N 00 C C'4 N O 00 C N O C V C � M � m r V p N O O N O I- N CO O (D N (1) E C R U LU C y � C o4)cu'i U� Z LO L N 'M i N 0 'N 0 I V 'N M 1 M 1 'N i co 1 r— 'N 0 N O i r I r 1 r— I M O L2 100 V M O O N r- Cl) M R C N 1 y i� w O 00 O r— I— Cl) r r Cl) 00 (D CO (D (D O N Cl) O LO (D Cl) (D CO LO ONO (D 00 CO 00 LO LO N V 0 V 0 Cl) 00 I— V r— r 0 O O 0 M V Cl) (D Cl) V N M N N N N LO I- 00 1— 00 1— (D I— O O O I— 00 Cl) N LO N V (.0 M Cl) Cl) Cl) : 0') 00 00 (D 00 I� V LO 0 0 0 CO- W I- 00 I— 00 M O N N LO N V (.0 M 0 LO O O N V COI— CO N LO CO N O N N 00 (D 00 LO Cl) C'4 LO N V N M 0 M O 0 M Cl) Cl) O I— Cl) M (D M I— W O N LO N V '1- M CO LO CO (D V (D N V N CO LO V O V V 00 (D CO (D N 00 00 N LO N V N LO O O O O N LO O LO O (D O r— LQ r N r r N lt7 N V N LO 0000000 O O O O (D 1- 0000 LO L6 O L6 O V (D N LO N V ;: LO CO LO CO V O 0000 (D N Cl) N CO N s LL o2J Q N LL V) a) X o W m o w a) a) U) .o m �' co E Z C to C .— fp 0) $ J G1 y y N N w 0 E W a) a co c .� c a) m c c W) a 2E O S of 2 CU o r CD 00 N LO 0) M LO 0 0 ,I- r- 0 M LO 00 ,I- 0) LO O N r V N 0 W 00 LO ,I- r- 0) O M V V Cl) M M Cl) Cl) ,I- 00 Cl) r O M V r V 0 O V) N V) C G) CL ' X j W i c 1 1 � L CL O I � 1 � 1 .a ( 11 ( 00 LO 00 r Cl) LO m Cl) (.0 r N � 0 rll r N M OII � M N r 00 II LO I1 0) rn m 0 0 0 E fp U_ CO U moo D � rop O N N N (D Morgan District Site V, LLC Before Tax Cash Flow Equity Analysis With TIF Note Without TIF Note Period Year 0 2016 1 2017 2 2018 3 2019 4 2020 5 2021 6 2022 7 2023 8 2024 9 2025 10 2026 7.86% Projected Cash Flows $ (1,900,000) $ 529,726 $ 243,693 $ 143,397 $ 154,044 $ 164,791 $ 175,638 $ 186,582 $ 197,622 $ 208,755 $ 903,088 Proceeds from Reversion Analvsis -2.89% Projected Cash FI NOTE: Project not financially feasible but for the monetized TIF note to reduce equity required for development ows $ (3,495,000) Equity Required $ 529,726 $ 243,693 $ 143,397 $ 154,044 $ 164,791 $ 175,638 $ 186,582 $ 197,622 $ 208,755 $ 903,088 Cash Flow Year 10 + Proceeds from Reversion Year 10 NOI $ 796,957 Per Cash Flow Tab Cap Rate @ Sell 7.0% Sales Price $ 11,385,107 NOI /Cap Rate Selling Expenses $ 683,106 6% Net Sales Price $ 10,702,000 SP - SE Gain /Proceeds from Reversion $ 683,106 63 Certification (Agreement Certification per TIF Application Tax Incremental Financing Application - Morgan District Redevelopment 64 Agreement (per page 17 of TIF Application) I, by signing this application, agree to the following: 1. I have read and will abide by all the requirements of the City for Tax Incremental Financing. 2. The information submitted is correct. 3. I agree to pay all costs involved in the legal and fiscal review of this project. These costs may include, but not be limited to, bond counsel, outside legal assistance, and outside financial assistance, and all costs involved in the issuance of the bonds or loans to finance the project. 4. I understand that the City reserves the right to deny final approval, regardless of preliminary approval or the degree of construction completed before application for final approval. S. The undersigned authorizes the City of Oshkosh to check credit references and verify financial and other information. 6. The undersigned also agrees to provide any additional information as may be requested by the City after filing of this application. Applicant Name: Morgan District, LLC Grant Schwab Date: December 2015 Tax Incremental Financing Application Morgan District Redevelopment December 2015 65 Apnea City Summary Letter Detailed Project Narrative Site Map Project Renderings Appraisal Market Study Filing Fee Tax Incremental Financing Application - Morgan District Redevelopment 66 The Morgan District, LLC 601 Oregon Street Oshkosh, WI Mark Rohloff City Manager City of Oshkosh 215 Church Avenue Oshkosh, WI 54903 -1130 RE: Morgan District Redevelopment City Summary Letter Dear Mark, The Morgan District, LLC is pleased to submit a Tax Increment Financing ( "TIF ") Policy Application to the City of Oshkosh for our proposed redevelopment of 27 acres of land located along the Fox River. We seek to transform the property into a vibrant new mixed -use community connecting the redevelopment with downtown, the riverfront and creating a place to work, shop, and play along prime riverfront property. The Morgan District Redevelopment Project is comprised of approximately 23.5 acres west of Oregon Street and 3.5 acres of land east of Oregon Street (the "Project "). The Project is proposed to consist of a mix of multifamily housing, light commercial and retail uses, and a combination of middle to high end condominiums. End users of the property will include individuals and families living on the site, community members frequenting and working at the commercial and retail uses, and business owners renting space from the Developer. The Developer and Owner, The Morgan District, LLC; is currently renting the property to Oshkosh Corporation, formerly Oshkosh Truck. Oshkosh Corporation is using the site for vehicle parking as they design and build specialty trucks and truck bodies. All structures and foundations have been removed from the site. Additional site work and planning has continued since the first application to the City in September 2014. Groundbreaking for the first phase of the Project in anticipated to be late fa112016. The Project is anticipated to be completed in five or more phases. The Project meets the criteria and threshold required for TIF funding. The Project represents a redevelopment of underutilized land which will provide many benefits to the City and the properties surrounding area and is not financially feasible but for TIF funding. The Project will aid /provide the following benefits: 1. Attracting businesses to the community to improve the economic base. 2. Meeting recommendations outlined in the City's strategic planning documents by supporting development along the Fox River and downtown. 3. Involving retail development 4. Contributing to public infrastructure. 67 S. Creating new employment in the area with the creation of retail and office spaces and from the management and maintenance of the residential units. 6. Enhancing the streetscape and pedestrian experience by providing land for the City River walk, improving underutilized land providing a more appealing view for all existing and new neighbors. 7. Providing direct benefit to the distressed area through the elimination of blight and abatement of the environmentally contaminated land and structures that were on the site. 8. Including quality design and overall aesthetic for final plans including a comprehensive redevelopment approach taking into account modern design, universal design, integrated site planning with sustainable design of buildings and landscaping demanded by the people and businesses that the City of Oshkosh wishes to attract and retain. The current total development cost for all five phases of planned development is approximately $68.6 million. Substantial costs are involved with the site and public /private infrastructure work necessary for redevelopment of the riverfront property. The Project is estimated to leverage no more than $40.4 million in private debt coupled with approximately $15.8 million of Developer equity, deferred financing, or additional federal and state funding sources that can be raised for the redevelopment leaving a $12.4 million development funding gap. The Developer is requesting a Pay -As- You -Go TIF Note along with the creation of a new 27 year Tax Increment District to support the redevelopment and make the Project feasible to develop. Included with this application package are initial projections of development sources and uses, operating pro forma assumptions, and reversion calculations for review. The Developer has very strong relationships with many lending institutions and will have financing in place before the commencement of any phase of the Project The Developer is willing to provide letters of financial reference from lending institutions upon request It is the Developer's ultimate goal to have a successful long -term development that provides benefits to the community, supports the City of Oshkosh's development goals, and provides the required rate of return to the Developer. The Project will bring construction jobs to the community for several years to come as the Project is completed in phases. The commercial development will create permanent part- and full -time jobs. Once development plans have been finalized the economic impact of the Project can be provided to the City if requested. Thank you for reviewing our application for Tax Increment Financing for the Morgan District Redevelopment project We look forward to future discussions and working with you and others to see this worthy Project move forward. Please do not hesitate to reach out to me if you have any other questions. Sincerely, Grant Schwab Representative of Morgan District, LLC 68 Detailed Project Narrative The Morgan District Redevelopment Project is comprised of approximately 23.5 acres west of Oregon Street and 3.5 acres of land east of Oregon Street (the "Project "). The Project is proposed to consist of a mix of multifamily housing, light commercial and retail uses, and a combination of middle to high end condominiums. End users of the property will include individuals and families living on the site, community members frequenting and working at the commercial and retail uses, and business owners renting space from the Developer. Current Use The Developer and Owner, The Morgan District, LLC; is currently renting the property to Oshkosh Corporation, formerly Oshkosh Truck. Oshkosh Corporation is using the site for vehicle parking as they design and build specialty trucks and truck bodies. Project Overview and Timing All structures and foundations have been removed from the site. Additional site work and planning has continued since the first application to the City in September 2014. Groundbreaking for site 1 of the Project in anticipated to be late fall 2016. The Project is anticipated to be completed in five or more phases. Site 1: fall 2016 New construction of 120 rentable multifamily residential units and 35,000 square feet of rentable commercial development along the west side of Oregon Street with on grade parking. Site 2: fall 2017 New construction of 48,000 square feet of rentable commercial development along the east side of Oregon Street with on grade parking. Site 3: fall 2018 New construction of 156 "eUrban" residential rental units within three large elevator buildings with a diverse mix of units and bedroom sizes to match market demand. Site 4: fall 2018 New construction of 24 waterfront condos for sale to the public. Site 5: fall 2019 New construction of nine "Big House" multifamily rental buildings with 12 units per building for a total of 108 rental residential units with a diverse mix of units and bedroom sizes to match market demand. Tax Incremental Financing Application - Morgan District Redevelopment 69 Meets TIF Policy Requirements The Project meets the criteria and threshold required for TIF funding. The Project represents a redevelopment of underutilized land which will provide many benefits to the City and the properties surrounding area and is not financially feasible but for TIF funds. The Project will aid /provide the following benefits: 1. Attracting businesses to the community to improve the economic base. 2. Meeting recommendations outlined in the City's strategic planning documents by supporting development along the Fox River and downtown. 3. Involving retail development 4. Contributing to public infrastructure. S. Creating new employment in the area with the creation of retail and office spaces and from the management and maintenance of the residential units. 6. Enhancing the streetscape and pedestrian experience by providing land for the City River walk, improving underutilized land providing a more appealing view for all existing and new neighbors. 7. Providing direct benefit to the distressed area through the elimination of blight and abatement of the environmentally contaminated land and structures that were on the site. 8. Including quality design and overall aesthetic for final plans including a comprehensive redevelopment approach taking into account modern design, universal design, integrated site planning with sustainable design of buildings and landscaping demanded by the people and businesses that the City of Oshkosh wishes to attract and retain. Financing Overview Since the first TIF application was submitted to the City in September 2014, the federal New Markets Tax Credit ( "NMTC ") program and a grant from the State of Wisconsin have been identified as potential sources for supporting the development of the grocery store and infrastructure needs for site 1. The funding from these two sources, if any, have not been quantified or included in the financial analysis because the programs require applications and approvals from various agencies. However, the financial gap for site 1 is large enough that TIF assistance in addition to support from other programs is required. Community Development Entities ( "CDEs "), the intermediaries that award NMTC allocations, and the State of Wisconsin will look favorably on the Project with the TIF commitment from the City. It will demonstrate a strong public - private partnership. Baker Tilly Virchow Krause, LLP is assisting the Developer in the process of applying to CDEs for a NMTC allocation. More information about these programs can be provided in the future as the Project moves forward. The current total development cost for all five phases of planned development is approximately $68.6 million. Substantial costs are involved with the site and public /private infrastructure work necessary for redevelopment of the riverfront property. The Project is estimated to leverage no more than $40.4 million in private debt coupled with approximately $15.8 million of Developer equity, deferred financing, or additional federal and state funding sources that can be raised for the redevelopment leaving a $12.4 million development funding gap. The Developer is requesting a Pay -As- You -Go TIF Note to support the redevelopment and make the Project feasible to develop. Tax Incremental Financing Application - Morgan District Redevelopment 70 The Developer is requesting a Pay -As- You -Go TIF Note to support the Project. It is anticipated that a new 27 year Tax Increment District ( "TID ") will be created by the City and that the Developer will receive 90% of the property tax increment generated from the Project for the remaining life of the TID for each site. The Developer understands that this percentage of TIF assistance surpasses the City's guidelines for the typical development requesting TIF. The request is 18.08% of total Project costs, falling below the TIF Cap of 25 %. The detailed sources and uses, operating pro forma assumptions, and reversion calculations are included in the appendix for each site that demonstrate why the Developer's request is necessary to make the Project financially feasible. The `Detailed Project Narrative' in the appendix also details the TIF funding criteria that the Project meets or exceeds. At this time the Developer is seeking a TIF Note from the City just for site 1, but the projected need for TIF assistance for future sites is included in this application to support the City's efforts to create a new TID. The Developer has very strong relationships with many lending institutions and will have financing in place before the commencement of any phase of the Project The Developer is willing to provide letters of financial reference from lending institutions upon request. Below is a summary table of sources and uses for all five sites. Detailed sources and uses, operating pro forma assumptions, and reversion calculations are included in the appendix for each site. Please note as discussed above, site 1 is pursuing other federal and state funding resources. Sources Uses Land $ Site I Site II Site IIII Site IV Site V Total Private First Mortgage $ 12,700.000 $ 5,500,000 $ 11,100,000 $ 3,500,000 $ 7,600;000 $ 40,400,000 Equity $ 5,961,521 $ 1,400,000 $ 3,200,000 $ 2,340,500 $ 11,900;000 $ 14,802,021 Monetized TIF Note $ 4;037,000 $ 1,615,000 $ 3,018,000 $ 2,179,000 $ 11,595;000 $ 12,444,000 Deferred Developers Fee $ 297,979 $ 146,500 $ 220,000 $ $ 325,400 $ 989,879 $ 22,996,500 $ 8,661,500 $ 17,538,000 $ 8,019,500 $ 11,420,400 $ 68,635,900 Land $ 175,000 $ 225,000 $ 245,000 $ 200,000 $ 80;000 $ 925,000 Site Work $ 4,400,000 $ 782,000 $ 1,960,000 $ 280,000 $ 11,960;000 $ 9,382,000 Hard Costs $ 16,800,000 $ 6,240,000 $ 12,900,000 $ 6,487,000 $ 7,400;000 $ 49,827,000 Soft Costs $ 387,500 $ 225,000 $ 790,500 $ 795,000 $ 637,500 $ 2,835,500 Financing Fees $ 562.500 $ 375,000 $ 787,500 $ 187,500 $ 587,500 $ 2,500,000 Professional Fees $ 34.500 $ 34,500 $ 85,000 $ 70,000 $ 105,400 $ 329,400 Developer FeellReserves $ 637,000 $ 780,000 $ 770,000 $ - $ 650,000 $ 2,837,000 $ 22,996,500 $ 8,661,500 $ 17,538,000 $ 8,019,500 $ 11,420,406 $ 68,635,900 It is the Developer's ultimate goal to have a successful long -term development that provides benefits to the community, supports the City of Oshkosh's development goals, and provides the required rate of return to the Developer. The Project will bring construction jobs to the community for several years to come as the Project is completed in phases. The commercial development will create permanent part- and full -time jobs. Once development plans have been finalized the economic impact of the Project can be provided to the City if requested. Tax Incremental Financing Application - Morgan District Redevelopment 71 Site Man The following site plan is for all five development sites contemplated within the Morgan District Redevelopment plans. New buildings, jobs, and infrastructure are to be created on both sides of Oregon Street. The building plans and layout are conceptual to provide an overview of use, density and site design. Tax Incremental Financing Application - Morgan District Redevelopment 72 Location Map Tax Incremental Financing Application - Morgan District Redevelopment 74 Project Renderings Building and site renderings can be provided for all sites in the future upon request and as needed for development approval and financing. Right now a rendering for site 1 is included. Tax Incremental Financing Application - Morgan District Redevelopment 76 O O O - � rri O Appraisal Third party reporting including the appraisal will be furnished upon request and as needed for development approval and financing. Tax Incremental Financing Application - Morgan District Redevelopment 78 Market Study Third party reporting including the market study will be furnished upon request and as needed for development approval and financing. Tax Incremental Financing Application - Morgan District Redevelopment 79 Filing Fee The Developer has donated a significant amount of linear feet of river walk land to the City of Oshkosh to allow the City to develop the river walk. The Developer is in the process of negotiating to donate more land to the City for even further continuation of the river walk. The Developer is requesting that the City take this in consideration since they have not submitted the filing fee with this application. Tax Incremental Financing Application - Morgan District Redevelopment 80