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HomeMy WebLinkAboutItem I-Project Plan Organizational Joint Review Board Meeting Held: Scheduled for August 2, 2016 Public Hearing Held: Scheduled for August 2, 2016 Consideration for Approval by Plan Commission: Scheduled for August 2, 2016 Consideration for Adoption by Common Council: Scheduled for August 23, 2016 Consideration for Approval by the Joint Review Board: TBD July 27, 2016 Project Plan Tax Incremental District No. 30 Project Plan Tax Incremental District No. 30 City of Oshkosh Officials Common Council Steve Cummings Mayor Debra L. Allison-Aasby Deputy Mayor Caroline Panske Council Member Lori Palmeri Council Member Thomas R. Pech, Jr. Council Member Steve Herman Council Member Ben Stepanek Council Member City Staff Mark Rohloff City Manager Allen Davis Community Development Director Darryn Burich Planning Director Trena Larson Finance Director Pamela Ubrig City Clerk Lynn Lorenson City Attorney Plan Commission David Borsuk Donna Lohry Edward Bowen Karl Nollenberger Thomas Fojtik, Chair Kathleen Propp Ben Krumenauer Jeffrey Thoms John Hinz Robert Vajgrt Joint Review Board Mark Rohloff, City Manager City Representative Mark Harris, County Executive Winnebago County Melissa Kohn, Director – Oshkosh Campus Fox Valley Technical College District Allison Garner, School Board President Oshkosh Area School District Public Member Table of Contents EXECUTIVE SUMMARY...........................................................................................................................................1 TYPE AND GENERAL DESCRIPTION OF DISTRICT ........................................................................................4 PRELIMINARY MAPS OF PROPOSED DISTRICT BOUNDARY......................................................................5 MAPS SHOWING EXISTING USES AND CONDITIONS ...................................................................................7 PRELIMINARY PARCEL LIST AND ANALYSIS ...................................................................................................9 EQUALIZED VALUE TEST.....................................................................................................................................10 STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PUBLIC WORKS AND OTHER PROJECTS................................................................................................................................................................11 MAPS SHOWING PROPOSED IMPROVEMENTS AND USES ......................................................................14 DETAILED LIST OF PROJECT COSTS ..............................................................................................................16 ECONOMIC FEASIBILITY STUDY, FINANCING METHODS, AND THE TIME WHEN COSTS OR MONETARY OBLIGATIONS RELATED ARE TO BE INCURRED ..................................................................17 ANNEXED PROPERTY...........................................................................................................................................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 APPENDIX A – TAX INCREMENT FINANCING APPLICATION……………………………………………...26 APPENDIX B – MARKET STUDY AND INVESTMENT ANALYSIS REPORT (INVESTA-ANALYTICS)….38 _____________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 1 July 27, 2016 SECTION 1: Executive Summary Description of District Type of District, Size and Location Tax Incremental District No. 30 (the “TID” or “District”) is a proposed one acre district in need of rehabilitation or conservation located in downtown Oshkosh at the intersection of Washington and State Street. The proposed District will be created to help support a proposed renovation of the Fraternal Reserve Association Building located at 105 Washington Avenue involving conversion of roughly 29,100 sq. ft. of vacant commercial space to twenty residential apartment units. The District also includes a public parking lot currently owned by the City which will be partially converted to enclosed private parking, and an additional commercial building located at 300 State Street which could potentially be rehabilitated in the future. 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 $680,000 to facilitate rehabilitation of 105 Washington Avenue including an estimated $530,000 for development incentives, $88,000 for parking lot reconstruction and the balance for administrative expense and payment of interest on funds expected to be advanced to the District to cover necessary expenditures prior to establishment of the District’s increment revenue stream. No specific Project Costs are identified for 300 State Street, however, the City would expect to make available appropriate development incentives or other assistance at the time a rehabilitation project is proposed without further amending this Plan. Economic Development As a result of the creation of this District, the City projects that additional land and improvements value of approximately $1.3 million will be created as a result of the rehabilitation project and subsequent economic appreciation. 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 development 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 25 years of its 27 year maximum statutory life. 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:  The economics associated with rehabilitation projects which typically involve additional costs such as abatement of hazardous materials, utility relocations, use of high end finishes needed to _____________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 2 July 27, 2016 attract tenants, provision of adequate off-street parking through the construction of garages, 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. 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 and other related Project Costs needed to facilitate the desired rehabilitation work.  The rehabilitation expected to occur within the District will create 20 residential units, providing housing opportunities for City residents.  It is expected that the rehabilitation project will create a 0.5 Full-Time Equivalent (FTE) position for property management and another 0.5 FTE position for property maintenance. 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 #1) and since the District will generate economic benefits that are more than sufficient to compensate for the cost of the improvements (see Finding #2), 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. 4. Not less than 50% by area of the real property within the District is in need of rehabilitation or conservation work within the meaning of Wisconsin Statutes Section 66.1337(2m)(b). 5. Based upon the finding stated above the District is declared to be a District In Need of Rehabilitation of Conservation based on the identification and classification of the property included within the District. 6. The Project Costs relate directly to promoting rehabilitation or conservation consistent with the purpose for which the District is created. _____________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 3 July 27, 2016 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. _____________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 4 July 27, 2016 SECTION 2: Type and General Description of District The District, comprising one acre in downtown Oshkosh at the intersection of Washington and State Street, is being created by the City under the authority provided by Wisconsin Statute Section 66.1105 and will be classified as a district “in need of rehabilitation or conservation” 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 66.1337(2m)(a). The preliminary parcel list included in Section 5 to this Plan identifies those parcels meeting those criteria. Collectively, these parcels represent 100% of the total District 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 pay the necessary costs needed to incentivize the developer to undertake the rehabilitation project. A preliminary map of the proposed District boundary can be found in Section 3 of this Plan. ______________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 5 July 27, 2016 SECTION 3: Preliminary Maps of Proposed District Boundary ______________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 6 July 27, 2016 ______________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 7 July 27, 2016 SECTION 4: Maps Showing Existing Uses and Conditions ______________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 8 July 27, 2016 __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Pr o j e c t P l a n T I D N o . 3 0 C r e a t i o n City of Oshkosh Su b m i t t e d b y E h l e r s Pa g e 9 July 27, 2016 SE C T I O N 5 : Pr e l i m i n a r y P a r c e l L i s t a n d A n a l y s i s Ci t y  of  Os h k o s h ,  Wi s c o n s i n Ta x  In c r e m e n t  Di s t r i c t  # 30 Ba s e  Pr o p e r t y  In f o r m a t i o n Comments Pa r c e l   Nu m b e r S t r e e t  Ad d r e s s O w n e r A c r e a g e L a n d I m p P P T o t a l Eq u a l i z e d   Va l u e   Ra t i o L a n d I m p P P T o t a l B l i g h t e d Rehab/ Conservation 20 0 8 8 0 0 0 0 1 0 5  Wa s h i n g t o n  Av e n u e D i s c o v e r y  Pr o p e r t i e s  LL C 0 . 2 3 9 3 4 2 , 0 0 0 3 9 8 , 0 0 0 0 4 4 0 , 0 0 0 1 0 0 . 1 3 % 4 1 , 9 4 5 3 9 7 , 4 8 3 0 4 3 9 , 4 2 9 0 . 2 3 9 3 E x i s t i n g  Bldg. to be Converted to 20 Residential Units 20 0 6 2 0 0 0 0 0  St a t e  St r e e t C i t y  of  Os h k o s h 0 . 7 2 0 6 0 0 0 0 1 0 0 . 1 3 % 0 0 0 0 0 . 7 2 0 6 E x i s t i n g  Public Parking to be Converted to Partial Private Use 20 0 6 4 0 0 0 0 3 0 0  St a t e  St r e e t Ki e c k h a f e r R e v T r u s t H A / P D 0. 0 9 1 8 1 6 , 1 0 0 1 0 5 , 9 0 0 0 1 2 2 , 0 0 0 1 0 0 . 1 3 % 1 6 , 0 7 9 1 0 5 , 7 6 3 0 1 2 1 , 8 4 2 0 . 0 9 1 8 P o t e n t i a l  Future Rehabilitation Project To t a l  Ac r e a g e 1 . 0 5 1 7 58 , 1 0 0 5 0 3 , 9 0 0 0 5 6 2 , 0 0 0 5 8 , 0 2 5 5 0 3 , 2 4 6 0 0 1 . 0 5 1 7 0.00%100.00% Es t i m a t e d  Ba s e  Va l u e 5 6 1 , 2 7 0 NO T E S : 1As s e s s e d  va l u a t i o n s  li s t e d  ar e  pr e l i m i n a r y  Ja n u a r y  1,  20 1 6 . 2Ra t i o  sh o w n  is  fo r  Ja n u a r y  1,  20 1 5 .  Ra t i o  fo r  20 1 6  no t  ye t  av a i l a b l e . Pr o p e r t y  In f o r m a t i o n A s s e s s m e n t  In f o r m a t i o n 1 Eq u a l i z e d  Va l u e 2 District Classification _____________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 10 July 27, 2016 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 $246,105,970. 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 Date9/1/2016 Valuation DataPercentValuation Data Currently AvailableChangeEst. Creation Date 2015 Total EV (TID In)3,743,645,0003,743,645,000 12% Test449,237,400449,237,400 Increment of Existing TIDs 140,981,300140,981,300 568,200568,200 266,200266,200 3,972,6003,972,600 10,624,40010,624,400 18,070,50018,070,500 7,736,9007,736,900 5,095,7005,095,700 11,724,40011,724,400 13,335,40013,335,400 9,302,1009,302,100 00 5,700,3005,700,300 00 8,327,9008,327,900 9,838,8009,838,800 00 00 Total Existing Increment245,544,700245,544,700 Projected Base of New or Amended District561,270561,270 Total Value Subject to 12% Test246,105,970246,105,970 Compliance PASSPASS TID #27 TID #21 TID #23 TID #24 TID #25 TID #26 TID #20 TID #11 TID #12 TID #13 TID #14 TID #15 TID #16 TID #17 TID #18 TID #19 TID #10 City of Oshkosh, Wisconsin Tax Increment District # 30 Valuation Test Compliance Calculation TID #7 _____________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 11 July 27, 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)1.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. _____________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 12 July 27, 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. RDA Type Activities Contribution to Redevelopment Authority As provided for in Wisconsin Statues Sections 66.1105(2)(f)1.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. _____________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 13 July 27, 2016 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. 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. ______________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 14 July 27, 2016 SECTION 8: Maps Showing Proposed Improvements and Uses ______________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 15 July 27, 2016 _____________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 16 July 27, 2016 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. Proposed TIF Project Cost Estimates Projected Project IDProject Name/TypeTotalYear 1Parking Lot Reconstruction1 88,0002016 2Development Incentive2 530,7392018 ‐ 2042 3Administrative Expense3 36,0002016 ‐ 2042 4Interest on Advances3 24,1622018 ‐ 2037 Total Projects678,901 Notes: 1Reflects City contribution requested by developer and listed within the "Tax Incremental Financing Policy and Application" dated April 30, 2016. 2Projected incentive amount based on 25 years of tax increment after recovering all other City costs. 3Calculated by Ehlers. City of Oshkosh, Wisconsin Tax Increment District # 30 Estimated Project List _____________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 17 July 27, 2016 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. _____________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 18 July 27, 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 the 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 City anticipates making total Project Cost expenditures of approximately $680,000 to support rehabilitation of 105 Washington Avenue including an estimated $530,000 for development incentives, $88,000 for public parking lot reconstruction and the balance for administrative expense and payment of interest on funds expected to be advanced to the District to cover necessary expenditures prior to establishment of the District’s increment revenue stream. The City expects to incur the development incentive obligation through a development agreement to be entered into in 2016, with payments to be made on a “pay as you go” basis through the life of the District. The City would also incur the cost for parking lot reconstruction in 2016 and expects to advance funds for this purpose with recovery of the advanced amounts and accrued interest over time. No specific Project Costs are identified for 300 State Street, however, the City would expect to make available appropriate development incentives or other assistance at the time a rehabilitation project is proposed without further amending this 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. _____________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 19 July 27, 2016 Development Assumptions Actual 20 Unit Apt.  Building1 Annual Total 12016856,287856,28720161 22017020172 32018020183 42019020194 52020020205 62021020216 72022020227 82023020238 92024020249 1020250202510 1120260202611 1220270202712 1320280202813 1420290202914 1520300203015 1620310203116 1720320203217 1820330203318 1920340203419 2020350203520 2120360203621 2220370203722 2320380203823 2420390203924 2520400204025 2620410204126 2720420204227 Totals0856,287856,287 Notes: 1Projected valuation as estimated by developer and listed within the "Tax Incremental Financing Policy 1and Application" dated April 30, 2016. Converted to equalized value by Ehlers. Construction YearConstruction Year City of Oshkosh, Wisconsin Tax Increment District # 30 Development Assumptions _____________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 20 July 27, 2016 Increment Revenue Projections Type of DistrictBase Value561,270 District Creation DateAppreciation Factor1.00%x Apply to Base Value Valuation DateJan 1,2016Base Tax Rate$25.95 Max Life (Years)Rate Adjustment Factor Expenditure Period/Termination229/1/2038 Revenue Periods/Final Year272044 Extension Eligibility/YearsYes3Discount Rate2.05% Recipient District Construction  YearValue AddedValuation Year Inflation  Increment Total  IncrementRevenue YearTax Rate1 Tax IncrementNPV Calculation 12016856,28720175,613861,9002018$25.95 22,365 21,916 220170201814,232876,1312019$25.95 22,735 43,746 320180201914,374890,5052020$25.95 23,108 65,489 420190202014,518905,0232021$25.95 23,484 87,142 520200202114,663919,6862022$25.95 23,865 108,705 620210202214,810934,4952023$25.95 24,249 130,174 720220202314,958949,4532024$25.95 24,637 151,548 820230202415,107964,5602025$25.95 25,029 172,827 920240202515,258979,8192026$25.95 25,425 194,008 1020250202615,411995,2302027$25.95 25,825 215,090 1120260202715,5651,010,7952028$25.95 26,229 236,071 1220270202815,7211,026,5152029$25.95 26,637 256,951 1320280202915,8781,042,3932030$25.95 27,049 277,728 1420290203016,0371,058,4302031$25.95 27,465 298,401 1520300203116,1971,074,6272032$25.95 27,885 318,968 1620310203216,3591,090,9862033$25.95 28,310 339,429 1720320203316,5231,107,5082034$25.95 28,739 359,783 1820330203416,6881,124,1962035$25.95 29,172 380,028 1920340203516,8551,141,0512036$25.95 29,609 400,164 2020350203617,0231,158,0742037$25.95 30,051 420,190 2120360203717,1931,175,2672038$25.95 30,497 440,105 2220370203817,3651,192,6332039$25.95 30,947 459,909 2320380203917,5391,210,1722040$25.95 31,402 479,600 2420390204017,7141,227,8862041$25.95 31,862 499,177 2520400204117,8921,245,7782042$25.95 32,326 518,641 2620410204218,0701,263,8482043$25.95 32,795 537,991 2720420204318,2511,282,0992044$25.95 33,269 557,226 Totals856,287425,813Future Value of Increment744,966 Notes: 1Tax rate is actual rate for 2015/16 taken from the City's Tax Increment Worksheet (DOR Form PC‐202). City of Oshkosh, Wisconsin Tax Increment District # 30 Tax Increment Projection Worksheet Rehabilitation September 1, 2016 27 Yes __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Pr o j e c t P l a n T I D N o . 3 0 C r e a t i o n City of Oshkosh Su b m i t t e d b y E h l e r s P a g e 2 1 J u l y 2 7 , 2 0 1 6 Ca s h F l o w C i t y  of  O s h k o s h ,  W i s c o n s i n Ta x  In c r e m e n t  Di s t r i c t  # 30 Ca s h  Fl o w  Pr o j e c t i o n Ye a r Year 20 1 6 9 8 , 0 0 0 9 8 , 0 0 0 8 8 , 0 0 0 1 0 , 0 0 0 9 8 , 0 0 0 0 0 9 8 , 6 5 3 2 0 1 6 20 1 7 1 , 0 0 0 1 , 0 0 0 1 , 0 0 0 1 , 0 0 0 0 0 1 0 1 , 6 4 6 2 0 1 7 20 1 8 2 2 , 3 6 5 2 2 , 3 6 5 1 5 , 7 7 4 5 , 5 9 1 1 , 0 0 0 2 2 , 3 6 5 0 0 9 7 , 0 8 8 2 0 1 8 20 1 9 2 2 , 7 3 5 2 2 , 7 3 5 1 6 , 0 5 1 5 , 6 8 4 1 , 0 0 0 2 2 , 7 3 5 0 0 9 3 , 3 4 6 2 0 1 9 20 2 0 2 3 , 1 0 8 2 3 , 1 0 8 1 6 , 3 3 1 5 , 7 7 7 1 , 0 0 0 2 3 , 1 0 8 0 0 8 9 , 4 3 6 2 0 2 0 20 2 1 2 3 , 4 8 4 2 3 , 4 8 4 1 6 , 6 1 3 5 , 8 7 1 1 , 0 0 0 2 3 , 4 8 4 0 0 8 5 , 3 5 4 2 0 2 1 20 2 2 2 3 , 8 6 5 2 3 , 8 6 5 1 6 , 8 9 9 5 , 9 6 6 1 , 0 0 0 2 3 , 8 6 5 0 0 8 1 , 0 9 5 2 0 2 2 20 2 3 2 4 , 2 4 9 2 4 , 2 4 9 1 7 , 1 8 7 6 , 0 6 2 1 , 0 0 0 2 4 , 2 4 9 0 0 7 6 , 6 5 4 2 0 2 3 20 2 4 2 4 , 6 3 7 2 4 , 6 3 7 1 7 , 4 7 8 6 , 1 5 9 1 , 0 0 0 2 4 , 6 3 7 0 0 7 2 , 0 2 8 2 0 2 4 20 2 5 2 5 , 0 2 9 2 5 , 0 2 9 1 7 , 7 7 2 6 , 2 5 7 1 , 0 0 0 2 5 , 0 2 9 0 0 6 7 , 2 1 1 2 0 2 5 20 2 6 2 5 , 4 2 5 2 5 , 4 2 5 1 8 , 0 6 9 6 , 3 5 6 1 , 0 0 0 2 5 , 4 2 5 0 0 6 2 , 1 9 9 2 0 2 6 20 2 7 2 5 , 8 2 5 2 5 , 8 2 5 1 8 , 3 6 9 6 , 4 5 6 1 , 0 0 0 2 5 , 8 2 5 0 0 5 6 , 9 8 7 2 0 2 7 20 2 8 2 6 , 2 2 9 2 6 , 2 2 9 1 8 , 6 7 2 6 , 5 5 7 1 , 0 0 0 2 6 , 2 2 9 0 0 5 1 , 5 7 0 2 0 2 8 20 2 9 2 6 , 6 3 7 2 6 , 6 3 7 1 8 , 9 7 8 6 , 6 5 9 1 , 0 0 0 2 6 , 6 3 7 0 0 4 5 , 9 4 2 2 0 2 9 20 3 0 2 7 , 0 4 9 2 7 , 0 4 9 1 9 , 2 8 7 6 , 7 6 2 1 , 0 0 0 2 7 , 0 4 9 0 0 4 0 , 0 9 8 2 0 3 0 20 3 1 2 7 , 4 6 5 2 7 , 4 6 5 1 9 , 5 9 9 6 , 8 6 6 1 , 0 0 0 2 7 , 4 6 5 0 0 3 4 , 0 3 4 2 0 3 1 20 3 2 2 7 , 8 8 5 2 7 , 8 8 5 1 9 , 9 1 4 6 , 9 7 1 1 , 0 0 0 2 7 , 8 8 5 0 0 2 7 , 7 4 4 2 0 3 2 20 3 3 2 8 , 3 1 0 2 8 , 3 1 0 2 0 , 2 3 2 7 , 0 7 7 1 , 0 0 0 2 8 , 3 1 0 0 0 2 1 , 2 2 1 2 0 3 3 20 3 4 2 8 , 7 3 9 2 8 , 7 3 9 2 0 , 5 5 4 7 , 1 8 5 1 , 0 0 0 2 8 , 7 3 9 0 0 1 4 , 4 6 1 2 0 3 4 20 3 5 2 9 , 1 7 2 2 9 , 1 7 2 2 0 , 8 7 9 7 , 2 9 3 1 , 0 0 0 2 9 , 1 7 2 0 0 7 , 4 5 7 2 0 3 5 20 3 6 2 9 , 6 0 9 2 9 , 6 0 9 2 1 , 2 0 7 7 , 4 0 2 1 , 0 0 0 2 9 , 6 0 9 0 0 2 0 4 2 0 3 6 20 3 7 3 0 , 0 5 1 3 0 , 0 5 1 2 8 , 8 4 3 2 0 8 1 , 0 0 0 3 0 , 0 5 1 0 0 0 2 0 3 7 20 3 8 3 0 , 4 9 7 3 0 , 4 9 7 2 9 , 4 9 7 1 , 0 0 0 3 0 , 4 9 7 0 0 2 0 3 8 20 3 9 3 0 , 9 4 7 3 0 , 9 4 7 2 9 , 9 4 7 1 , 0 0 0 3 0 , 9 4 7 0 0 2 0 3 9 20 4 0 3 1 , 4 0 2 3 1 , 4 0 2 3 0 , 4 0 2 1 , 0 0 0 3 1 , 4 0 2 0 0 2 0 4 0 20 4 1 3 1 , 8 6 2 3 1 , 8 6 2 3 0 , 8 6 2 1 , 0 0 0 3 1 , 8 6 2 0 0 2 0 4 1 20 4 2 3 2 , 3 2 6 3 2 , 3 2 6 3 1 , 3 2 6 1 , 0 0 0 3 2 , 3 2 6 0 0 2 0 4 2 20 4 3 3 2 , 7 9 5 3 2 , 7 9 5 0 3 2 , 7 9 5 3 2 , 7 9 5 2 0 4 3 20 4 4 3 3 , 2 6 9 3 3 , 2 6 9 0 3 3 , 2 6 9 6 6 , 0 6 4 2 0 4 4 To t a l 7 4 4 , 9 6 6 9 9 , 0 0 0 8 4 3 , 9 6 6 5 3 0 , 7 3 9 1 2 3 , 1 6 2 8 8 , 0 0 0 3 6 , 0 0 0 7 7 7 , 9 0 1 T o t a l No t e s : 1Eq u a l  to  10 0 %  of  in c r e m e n t  ge n e r a t e d  by  re h a b i l i t a t i o n  pr o j e c t  le s s  an n u a l  ad m i n i s t r a t i v e  ex p e n s e  an d  am o u n t s  pa i d  to  re c o v e r  pr i o r  Ci t y  ad v a n c e s . 2As s u m e s  th e  Ci t y  wi l l  ch a r g e  a 2%  co s t  of  fu n d s  on  ad v a n c e d  am o u n t s  an d  wi l l  al l o c a t e  25 %  of  th e  an n u a l  in c r e m e n t  co l l e c t e d  to  re p a y  th e  ad v a n c e . Pr o j e c t e d  Re v e n u e s Ta x   In c r e m e n t s Ad v a n c e  Fr o m   Ot h e r  Ci t y   Fu n d s To t a l   Re v e n u e s Ba l a n c e s Mu n i c i p a l   Re v e n u e   Ob l i g a t i o n 1 Ci t y  Co n t r i b .   to  Pa r k i n g  Lo t   Re n n o v a t i o n A d m i n . Ex p e n d i t u r e s To t a l   Ex p e n d i t u r e s A n n u a l C u m u l a t i v e Advance Outstanding Re p a y m e n t  of   Ci t y  Ad v a n c e 2 Pr o jec t e d  TID Closure _____________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 22 July 27, 2016 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 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. _____________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 23 July 27, 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 preserving, rehabilitating and reusing existing structures. 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. 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 and increased employment opportunities. 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. _____________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 24 July 27, 2016 SECTION 18: Opinion of Attorney for the City of Oshkosh Advising Whether the Plan is Complete and Complies with Wisconsin Statutes 66.1105 July 27, 2016 SAMPLE Mayor Steve Cummings City of Oshkosh 215 Church Avenue Oshkosh, Wisconsin 54903 RE: City of Oshkosh, Wisconsin Tax Incremental District No. 30 Dear Mayor: As City Attorney for the City of Oshkosh, I have reviewed the Project Plan and, in my opinion, have determined that it is complete and complies with Wisconsin Statutes Section 66.1105(4)(f). Sincerely, Attorney Lynn Lorenson City of Oshkosh _____________________________________________________________________________________________ Project Plan TID No. 30 Creation City of Oshkosh Submitted by Ehlers Page 25 July 27, 2016 Exhibit A: Calculation of the Share of Projected Tax Increments Estimated to be Paid by the Owners of Property in the Overlying Taxing Jurisdictions Statement of Taxes Data Year:2014 Percentage Winnebago County19,340,25519.73% City of Oshkosh40,840,02241.67% Oshkosh Area School District33,943,22534.63% Fox Valley Technical College3,890,9003.97% Total98,014,402 Revenue Year Winnebago  CountyCity of Oshkosh Oshkosh Area  School District Fox Valley  Technical  CollegeTotalRevenue Year 20184,4139,3197,74588822,3652018 20194,4869,4737,87390222,7352019 20204,5609,6288,00291723,1082020 20214,6349,7858,13393223,4842021 20224,7099,9448,26594723,8652022 20234,78510,1048,39896324,2492023 20244,86110,2668,53297824,6372024 20254,93910,4298,66899425,0292025 20265,01710,5948,8051,00925,4252026 20275,09610,7618,9431,02525,8252027 20285,17610,9299,0831,04126,2292028 20295,25611,0999,2251,05726,6372029 20305,33711,2719,3671,07427,0492030 20315,41911,4449,5111,09027,4652031 20325,50211,6199,6571,10727,8852032 20335,58611,7969,8041,12428,3102033 20345,67111,9759,9521,14128,7392034 20355,75612,15510,1021,15829,1722035 20365,84212,33710,2541,17529,6092036 20375,93012,52110,4071,19330,0512037 20386,01812,70710,5611,21130,4972038 20396,10712,89510,7171,22930,9472039 20406,19613,08510,8751,24731,4022040 20416,28713,27611,0341,26531,8622041 20426,37913,47011,1951,28332,3262042 20436,47113,66511,3571,30232,7952043 20446,56513,86211,5211,32133,2692044 146,997310,408257,98829,573744,966 Notes: The projection shown above is provided to meet the requirements of Wisconsin Statute 66.1105(4)(i)4. Estimated portion of taxes that owners of taxable property in each taxing jurisdiction  overlaying district would pay by jurisdiction. Appendix A Tax Increment Financing Application Pa g e 2 6 Pa g e 2 7 28 29 30 31 32 33 34 35 36 37 Appendix B Market Study and Investment Analysis Report (Investa-Analytics) 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55