HomeMy WebLinkAbout30. 17-92
FEBRUARY 28, 2017 17-92 RESOLUTION
(CARRIED____7-0__ LOST _______ LAID OVER _______ WITHDRAWN _______)
PURPOSE: APPROVE REPAYMENT TERMS FOR TIF #25 CITY CENTER
HOTEL REHABILITATION TO REPAY TIF #17 CITY CENTER
REDEVELOPMENT FOR PUBLIC IMPROVEMENTS ALREADY
COMPLETED, PRIOR TO ANTICIPATED CLOSURE OF TIF #17 IN
2028 ($1,343,000)
INITIATED BY: CITY ADMINISTRATION
WHEREAS, the riverwalk and street and utility work occurred simultaneously
with the Bestwestern Hotel renovation; and
WHEREAS, instead of borrowing $1,343,000 for TID #25’s share of the public
improvements, the cash balance in adjoining TID #17 was used through an inter-TIF fund
advance; and
WHEREAS, it will be necessary to repay TIF #17 for said improvements to TIF #25
prior to TIF #17 closing in 2028.
NOW THEREFORE BE IT RESOLVED by the Common Council of the City of
Oshkosh that the proper City officials are hereby authorized and directed to repay
$1,343,000 from account #502-1040-7216-xxxx TIF#25 (City Center Hotel Rehabilitation)
to account #530-1040-7216-xxxx TIF#17 (City Center Redevelopment) prior to anticipated
closure of TIF #17 in 2028.
BE IT FURTHER RESOLVED that the appropriate city officials are hereby
authorized and directed to take such further action and to sign all documents necessary
to accomplish said purpose.
Memorandum
DATE: February 23, 2017
TO: Honorable Mayor and Members of the Common Council
FROM: Allen Davis, Community Development Director
SUBJECT: Approve Repayment Terms for TIF #25 City Center Hotel Rehabilitation to Repay TIF
#17 City Center Redevelopment for Public Improvements Already Completed, Prior to
Anticipated Closure of TIF #17 in 2028 ($1,343,000)
BACKGROUND
The Bestwestern Hotel investors and the City were both working closely on the hotel and public
improvements serving the hotel. While working on the new riverwalk and the street and utility work
occurring simultaneously with the hotel renovation, the City did not want to incur additional debt for
the project. Instead of borrowing the funds for the public improvements for TID #25, the cash balance in
adjoining TID #17 was used. TID #17 was paying a proportionate share of the same projects with the
riverwalk and street and utility work. TID #25's share of the public improvement costs totaled $1,343,000.
Instead of borrowing that money, an inter -TIF fund advance was done. This avoided City borrowing
costs and interest.
ANALYSIS
The proposed resolution memorializes the funding for future council and staff members. The work has
been completed and all bills have been paid for the improvements. This action will result in a revision
to the TIF #17 and TIF #25 budget sheets and forecasts. TIF #17 will still be terminated in 2028 as planned.
TIF #25 may require that an advance be made from another source in year 2028 to ensure that TIF #17 is
fully repaid prior to its termination. However, TIF #25 is projected to pay the remainder of the obligation
in 2032, 8 years prior to the TIF's mandatory termination date of 2040.
Ehlers projections for this arrangement is attached. Project costs for a convention center public
improvement has also been added to the TIF #25 projection, and that $75,000 expense will be funded by
a portion of the proceeds from a pending State Trust Fund Loan to be secured with room tax revenues,
and to be repaid with the projected tax increment.
FISCAL IMPACT
The TIF repayment will not affect any city operations or create a fiscal impact. The impact is to the TIF
#17 and TIF # 25 revenues and repayment schedules.
RECOMMENDATION
The City Council approves the repayment terms as proposed.
Respectfully Submitted,
h�2a,'-I-f
Allen Davis
Community Development Director
Approved,
Mark Rohloff
City Manager
City Hall • 215 Church Avenue • P.O. Box 1130 • Oshkosh, WI 54903-1130
http://www.ci.oshkosh.wi.us
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LEADERS IN-PUBLEC FINANCE
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2/14/2017
. 0211, MOIRVIYA
State
Trust Fund Loan
State Trust Fund Loan°
-
Year
2,000,000
75,000
Debt Principal
Tax
Long Term Total Dated Date:
02(08113
Hotel PAYGO Dated Date:
03/15/17
Advance
Community
Capital
Total
& Advances
Increments Intergov.
Mist. Advances3°" Debt Issued Revenues
Prm (3/15)
Rate
Interest
Payments'
Principal
Est Rate
Interest
Repayment
Development
Outlay'
Expenditures
Annual Cumulative
Outstanding
Year
2012
0
40,262
149,665
190,127
(190,127)
(221,504)
2012
2013
15,000
819 2,000,000 2,015,819
2,120,110
1,393,426
3,513,536
(1,497,717)
(1,719,221)
1,999,941
2013
2014
0
0
193,827
2.750%
60,726
15,170
269,723
(289,723)
(1,988,944)
1,806,114
2014
2015
155,079 331,607
486,686
205,292
2.750%
49,262
1S,482
270,036
216,650
(1,772,294)
1,600,822
2015
2016
255,305 4,720
260,025
210,408
2.750%
44,145
29,127
283,680
(23,655)
(1,795,950)
1,390,413
2016
2017
281,248 4,700
1,343,000 75,000 1,703,948
216,315
2.750%
38,238
20,021
274,574
1,429,374
1366,576)
2,592,098
2017
2018
281,248
281,248
222,266
2.750%
32,288
20,021
1,250
4.500%
3,375
75,000
354,199
(72,951)
(439,527)
2,368,582
2018
2019
281,248
281,248
228,378
2.750%
26,175
20,021
1,250
4.500%
3,319
279,143
2,105
(437,423)
2,138,954
2019
2020
281,248
281,248
234,604
2.750%
19,950
20,021
1,250
4.500%
3,271
279,096
2,152
(435,270)
1,903,100
2020
2021
281,248
281,248
241,110
2.750%
13,43
20,021
8,886
4.500%
3,206
286,666
(5,418)
(440,689)
1,653,105
2021
2022
281,248
281,248
247,740
2.750%
6,813
20,021
9,286
4.500%
2,806
286,666
(5,418)
(446,107)
1,396,079
2022
2023
281,248
281,248
210,936
9,703
4,500%
2,389
223,028
58,220
(387,887)
1,386,375
2023
2024
281,248
281,248
210,936
10,135
4.500%
1,957
223,028
58,220
(329,667)
1,376,240
2024
2025
281,248
281,248
210,936
10,596
4.500%
1,496
223,028
58,220
(271,447)
1,365,644
2025
2026
281,248
281,248
210,936
11,073
4.500%
1,019
223,028
58,220
(213,227)
1,354,571
2026
2027
281,248
281,248
36,132
11,571
4.500%
521
19,797
68,021
213,227
(0)
1,323,203
2027
2028
281,248
281,248
281,248
281,248
(0)
(0)
1,041,955
2028
2029
281,248
760,707 1,041,955
1,041,955
1,041,955
0
(0)
760,708
2029
2030
281,248
281,248
281,248
281,248
(0)
(0)
479,460
2030
2031
281,248
281,248
281,248
281,248
0
(0)
198,212
2031
2032
281,248
281,248
198,212
198,212
183,036
:;:.83,036
D
2033
281,248
281,248
0
281,248
364,283
2033
2034
281,248
281,248
0
281,248
645,531
2034
2035
281,248
281,248
0
281,248
926,779
2035
2036
281,248
281,248
0
281,248
1,208,027
2036
2037
281,248
281,246
0
281,248
1,489,274
2037
2038
281,248
281,248
0
281,248
1,770,522
2038
2039
281,248
281,248
0
281,248
2,051,770
2039
2040
281,248
281,248
D
281,248
2,333,018
2040
Total
7,160,330 356,027
819 2,103,707 2,075,000 11,695,883
1,999,941
291,040
1,000,000
75,000
23,359
2,103,707
2,220,151
1,618,291
9,331,488
Total
Notes:
'Advance
shown In 2017 reflects costs for river
walk improvements within TID 25 that were paid with funds from TID 17.
'Advance
from unspecified fund shown in 2029 reflects projected amount needed to repay TI017 advance
prior to that
TID's statutory closure date of 9-25-2028. (Final
increment
collection year
will be 2029).
'Amount
shown equal to 75% of annual increment
collection after payment of 2013 STFL debt service. Incentive
payment
amount capped at $lM.
'Reflects allocation of 5%of estimated debt service for pending $1,500,000 STFLto be secured with room tax revenues.
'Outlay shown for 2018 is Ceape Street Island.
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