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.
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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.
Item: Creation of TID #2941organ Redevelopment
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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
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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
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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
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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
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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
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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).
Project Ran TID No. 29 0;iraatlian Gity of Oshkosh
ial imi tied by EMeirs Page 20 Tana 22, 2016
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SECTION 11:
Annexed Property
There are no lands proposed for inclusion within the District that were annexed by the City on or after
January 1, 2004.
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
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Morgan District Site I, LLC
SOURCES AND USES
PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/8/2015
42
Post
SOURCES OF FUNDS
Construction
Construction
I Permanent
First Mortgage
$ -
$ 12,700,000
$ 12,700,000
Equity
5,961,521
-
5,961,521
Monetized TIF Note
4,037,000
-
4,037,000
New Markets Tax Credits /State Grant
-
-
-
Deferred Developers Fee
-
297,979
297,979
Construction Loan
12,997,979
(12,997,979)
-
Total Sources Of Funds
$ 22,996,500
$ -
$ 22,996,500
Post
Total
USES OF FUNDS
Construction
Construction
Permanent
Land Acquisition
175,000
-
175,000
Site Work
Excavation/ Erosion Control
187,500
-
187,500
Environmental/ Disposal
137,500
-
137,500
Site Utilities
618,500
-
618,500
Site Concrete
157,500
-
157,500
Asphalt Paving
380,000
-
380,000
Landscaping
125,000
-
125,000
Utility Allowance
200,000
-
200,000
Site Lighting
75,000
-
75,000
Signage
75,000
-
75,000
Rammed Agg. 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
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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
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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
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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
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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
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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
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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
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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
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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.
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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.
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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.
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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.
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Location Map
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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.
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O
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Appraisal
Third party reporting including the appraisal will be furnished upon request and as needed
for development approval and financing.
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Market Study
Third party reporting including the market study will be furnished upon request and as
needed for development approval and financing.
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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.
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