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HomeMy WebLinkAbout18. 17-350 JULY 11, 2017 17- 350 RESOLUTION (CARRIED 7-0 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE TAX INCREMENT DISTRICT NO. 33 PROJECT PLAN; DESIGNATE TAX INCREMENT DISTRICT NO. 33 BOUNDARIES; CREATE TAX INCREMENT DISTRICT NO. 33 LAMICO 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. 33 (the "District") is proposed to be created by the City as district in need of rehabilitation or conservation 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; JULY 11, 2017 17-350 RESOLUTION CONTD 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 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 20, 2017 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. 33, Lamico Redevelopment", are hereby established as specified in Exhibit A of this Resolution. 2. The District is created effective as of January 1, 2017. 3. The Common Council finds and declares that: JULY 11, 2017 17-350 RESOLUTION CONTD (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 and is an area in need of rehabilitation or conservation work as defined in Section 66.1337(2m)(a) based on the following findings: 1. Existing former manufacturing structures with oldest structures first constructed in 1952 as light industrial structures exhibit signs of deterioration and functional obsolescence requiring extensive rehabilitation and are as a result detrimental to the public health, safety, morals and welfare; 2. Long-term industrial use within this area is inconsistent with residential uses in the adjacent area; 3. Industrial uses are not consistent with the City's Comprehensive Land Use Plan for the area calling for mixed use development; and 4. The City's Comprehensive Plan has identified the need to relocate older industrial uses out of this mixed-use neighborhood because such uses are detrimental to the public welfare; and 5. Presence of environmental contamination on the site requires widespread remediation; and 6. Presence of poorly drained soils combined with high groundwater conditions make site redevelopment difficult; and 7. The site is comprised of historically filled lands requiring use of alternative foundation systems making rehabilitation of the site costly and difficult. (b) Based upon the finding, 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. JULY 11, 2017 17-350 RESOLUTION CONTD (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. (e) The City estimates that approximately none 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 Section 66.1105(5)(b) and 66.1105(6)(am)1. (f) The project costs relate directly to promoting elimination of blight consistent with the purpose for which the District is created. (g) All property within TID #33 was within the City boundaries as of January 1, 2004. 4. The Project Plan for"City of Oshkosh Tax Increment District No. 33,Lamico Redevelopment" (attached as Exhibit S) 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. 33 Lamico Redevelopment. EXHIBIT A Tax Increment District #33 Lamico Redevelopment CHY P An ow Parcel Identification Oshkosh Project Ran TI D No. 33 Cireahon Gity of Oshkosh Prepared by EMeirs Page 9 June 27, 2017 TO: Honorable Mayor and Members of the Common Council FROM: Darryn Burich Director of Planning Services DATE: July 6, 2017 RE: Approve Tax Increment District No. 33 Project Plan; Designate Tax Increment District No. 33 Boundaries; Create Tax Increment District No. 33 Lamico Redevelopment (Plan Commission recommends approval) BACKGROUND Tax Incremental District No. 33 (the "TID" or "District") is a proposed 5.5 acre blighted area district located on the former Lamico property at 474 Marion Road. Creation of the District is intended to assist with removal of existing blighted and functionally obsolete structures, environmental remediation, and other site preparation costs to allow for construction of a 140 unit multi -family residential complex oriented towards university student centric housing. Proposed TID No. 33 is encompassed by TIDs Nos. 13 and 21 (partial overlay of 13) and is the last vacant former manufacturing parcel remaining in this historic industrial district outside of the active Mercury Marine property. The City created TID No. 13 to facilitate redevelopment of the Marion Road/Pearl Avenue area and conducted all the land acquisition, relocation, site clearance and preparation, environmental remediation, and infrastructure development in the surrounding area. TID No. 33 represents a departure from the City's historical development involvement in this area because the developer is conducting all the acquisition, clearance, remediation, etc. at the site to facilitate redevelopment. The City anticipates making total Project Cost expenditures of approximately $3.9 million to facilitate redevelopment within the District. This total is comprised of approximately $3.3 million in potential "pay as you go" development incentives towards the $18 million project. Hard construction costs for the multiple family development are estimated at approximately $11 million. The Project Plan also identifies costs for public utilities and cul-de-sac construction at the ends of both Dawes Street and Riverway Drive as well as pedestrian trail connections through and outside the District to connect with the riverwalk trail to the south. 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. Using the City's TIF Application Scoring criteria (attached) this project scored 71 out of 100 points scoring maximum points for blight elimination, extraordinary costs ( due to environmental issues), and enhancing the pedestrian experience through removal of a blighted structure and replacement with a modern new apartment building with a street wall presence. The developer for this project is Annex Student Living (Annex) and is an Indianapolis based student housing developer with a portfolio of 14 student apartment communities valued at more than $100 million located in 6 states with the proposed project in Oshkosh being their first project in Wisconsin. Annex targets underserved markets to create student living communities at regional campuses, community colleges, and Division II and III universities. Annex has identified Oshkosh as an underserved market where furnished student living with supportive services is not currently offered in the off -campus residential housing market. For its 14 student oriented apartment communities, Annex has received financial assistance for 5 of the projects with either tax abatement or TIF totaling about $5 million. ANALYSIS As a result of the creation of this District, the City projects that additional land and improvements value of approximately $15.2 million will be created as a result of the projects contemplated in the Project Plan. 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 14 of the maximum 27 statutory years. 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 incentivize developers to make the necessary private investment. In this case the cash flow analysis (Appendix A Developer Application 10 Year Proforma) shows a 10 year IRR (Internal Rate of Return) without TIF of 4.43% and a 10.95% IRR with TIF. The "with TIF" IRR, while in the low double digits, is still somewhat below standard development expectations, but higher than most of the TIDs that have recently been created by the City such as the Beach Building (TID No. 28), Morgan District (TID No. 29) Washington Building (TID No. 30) and the Granary (TID No. 32). City Hall • 215 Church Avenue • P.O. Box 1130 • Oshkosh, WI 54903-1130 http://www.ci.oshkosh.wi.us 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 UMU PD Urban Mixed Use Planned Development Overlay zoning district 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. 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. FISCAL IMPACT Creation of the TID itself will have very little fiscal impact on city services other than routine annual TIF administration that will be paid for from TIF increment. Creating the TID will actually mitigate some of the public improvement costs in the area as TIF will be used to construct the cul-de-sacs and install the sidewalks/trail connections. The tables on pages 22-24 identify the development assumptions and cash flow for the project. Appendix A includes the developer's TIF application which includes a market study for the project. At present estimate, the District is anticipated to generate enough revenue to pay the approximate $3.8 million in project costs and retire the district in 2029-2030 in 13 years. RECOMMENDATION The Plan Commission recommended approval of Tax Increment District #33 Project Plan and the designation of the boundaries at its June 20, 2017 meeting. Respegtfully Submitted, a4 I Darryn Burich Director of Planning Services Approved: Mark A. Rohloff City Manager City Hall • 215 Church Avenue • P.O. Box 1130 • Oshkosh, WI 54903-1130 http://www.ci.oshkosh.wi.us X %Q O - "r . i 03� i Al al P A ........ . . . . . . r-" 1), J1, (v 1 in 0.04 mi EA PD..9 P F I in= 214 ft The City of Oshkosh creates and maintains GIS maps and data for its avn use. They may show the Citv approximate relative location of properly, boundaries and other feature from a variety of Sources. Printing Date: 6/8/2017 of These map(sydatasets are provided for Information purposes only and may not be sufficient or appropriate for legal, engineering, of surveying purposes. They are provided 'AS -IS' %YbM Oshkosh warranties of any Idnd and the City of Oshkosh assumes no Ilablity for use or misuse. Prepared by: City of Oshkosh, W1 JAGIS'AanningkPlan Comm"s0on Sive Plan Map TernplateMan Comrn:sston Re Plan Map Ternplatemd User &K-dnhf Tax Incremental Financing Criteria Score Sheet Redevelopment/Blight Elimination Lamico Criteria Maximum Points Score 1. Presence of extraordinary development/redevelopment costs 25 such as: a. Remodeling/Rehabilitation/Demolition b. Environmental Remediation 25 c. Capital purchases d. Facility expansion e. Public Infrastructure 2. Project provides direct benefit to distressed areas through 25 blight elimination or redevelopment. 25 3. Projects that directly implement specific recommendations of 9 the City's strategic planning documents such as the Comprehensive Plan, Downtown Action Plan, Riverwalk Plan, 10 Vision Report, etc. 4. Historic Preservation or rehabilitation of a nationally or 15 - -- locally significant historic structure. 5. Quality of development and overall aesthetics (architectural, 3.5 site design, landscaping, etc) beyond that which is minimally 5 required by the Zoning Ordinance. 6. Environmental sustainability impacts such as higher 1 standards of building and site design, materials and energy efficiency. a. LEE certification, Energy Star, etc 5 b. Use of Green Infrastructure c. Solar and Wind energy production 7. Enhance the streetscape and pedestrian experience. 5 5 8. Proposed employment potential. 5 1 9. Projects that involve development that is targeted to 1.5 encourage an inflow of customers from outside the city or 5 that provides services or fill underserved markets in the City. Point Total must be greater than 50 points or Council waiver is 100 71 required Q) —a u c C co 41v N i N }O Y Q U o V) (U N T N L _ a � ai m V N � O N N U N N LA vi (1)J L L Q 0 al aJ 4-i O ao Lr) U) N � L O (4 L a! � V C co LA Lr) O� Op N O O Q 00 Cn O , r,4 dA o m a) -j 00 o 41 c a-+ Q C GJ = C C QE) aC) N C C it •yL L.L. LL LL Q Q Q Q y x x CL Ln N U W M rl ^ Ln r" DO M Ln N ar vi v} v} v)- V-)- W � to tom. t/-)-tn- t/-)- v�a CL LnY c � m O O O U + U 2 Y , 3< _� L (o Q) c aJ U cz co U� O � -O a) I� � c0 C Lf) � N N z p O m O x x cNa — O O E - O O '+, x O w O x w a) O v c x a1 X x qo x c0 w x a) Cp N c C O N C C v Q Q Q p a c Q J Q p Q CW ~ a) Q Q v Q i L N H L a EXHIBIT B June 27, 2017 EHLERS LEADER'S IN PUBLIC FINANCE Project Plan for the Creation of Tax Incremental District No. 33 (Lamico Redevelopment) Organizational Joint Review Board Meeting Public Hearing: Approval by Plan Commission: Adoption by Common Council: Approval by the Joint Review Board: June 20, 2017 June 20, 2017 June 20, 2017 Scheduled for July 11, 2017 Scheduled for July 14, 2017 �11.,,i j,,, r J :,t Tax Incremental District No. 33 Creation Project Plan City of Oshkosh Officials Common Council Steve Cummings Steve Herman Debra L. Allison-Aasby Lori Palmeri Caroline Panske Thomas R. Pech, Jr. Jake Krause City Staff Mark Rohloff Allen Davis Lynn Lorenson Darryn Burich Kelly Nieforth Trena Larson Pamela Ubrig Plan Commission David Borsuk Edward Bowen Thomas Fojtik, Chair Mike Ford 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 City Attorney Planning Director Economic Development Services Manager Finance Director City Clerk John Kiefer Kathleen Propp Jeffrey Thorns Robert Vajgrt Mayor Steve Cummings City Representative Winnebago County Fox Valley Technical College District Oshkosh School District Public Member ,,.... .... .... .... .... .... .... .... ...... Table of Contents EXECUTIVE SUMMARY...........................................................................................................................4 TYPE AND GENERAL DESCRIPTION OF DISTRICT..............................................................................7 PRELIMINARY MAPS OF PROPOSED DISTRICT BOUNDARY..............................................................8 MAPS SHOWING EXISTING USES AND CONDITIONS........................................................................10 PRELIMINARY PARCEL LIST AND ANALYSIS......................................................................................12 EQUALIZED VALUE TEST......................................................................................................................13 STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PUBLIC WORKS AND OTHER PROJECTS..............................................................................................................................................14 MAP SHOWING PROPOSED IMPROVEMENTS AND USES................................................................17 DETAILED LIST OF PROJECT COSTS..................................................................................................19 ECONOMIC FEASIBILITY STUDY, FINANCING METHODS, AND THE TIME WHEN COSTS OR MONETARY OBLIGATIONS RELATED ARE TO BE INCURRED..........................................................20 ANNEXED PROPERTY...........................................................................................................................25 ESTIMATE OF PROPERTY TO BE DEVOTED TO RETAIL BUSINESS................................................25 PROPOSED ZONING ORDINANCE CHANGES.....................................................................................25 PROPOSED CHANGES IN MASTER PLAN, MAP, BUILDING CODES AND CITY OF OSHKOSH ORDINANCES.........................................................................................................................................25 RELOCATION.......................................................................................................................................... 25 ORDERLY DEVELOPMENT OF THE CITY OF OSHKOSH....................................................................26 LIST OF ESTIMATED NON -PROJECT COSTS......................................................................................26 OPINION OF ATTORNEY FOR THE CITY OF OSHKOSH ADVISING WHETHER THE PLAN IS COMPLETE AND COMPLIES WITH WISCONSIN STATUTES 66.1105 ................................................27 CALCULATION OF THE SHARE OF PROJECTED TAX INCREMENTS ESTIMATED TO BE PAID BY THE OWNERS OF PROPERTY IN THE OVERLYING TAXING JURISDICTIONS.................................28 APPENDIX A- DEVELOPER'S TAX INCREMENTAL FINANCING APPLICATION...............................30 APPENDIX B- MARKET STUDY AND INVESTMENT ANALYSIS REPORT..............................................61 PLAN COMMISSION PUBLIC HEARING/MINUTES OF JUNE 20, 2017 ..................................................132 COMMON COUNCIL CREATION RESOLUTION OF JULY 11, 2017 JOINT REVIEW BOARD RESOLUTION JULY 14, 2017 SECTION 1: Executive Summary Description of District Type of District, Size and Location Tax Incremental District ("TID") No. 33 (the "TID" or "District") is a proposed 5.5 acre blighted area district located on Marion Road opposite The Rivers Senior Living apartments. The site was the former location of Lamico, Inc., a manufacturer of wooden crutches which discontinued operations in 2011. The Lamico complex contains a number of functionally obsolete and deteriorating structures. Creation of the District is intended to assist with the removal of existing blighted and functionally obsolete structures, environmental remediation and other site preparation costs to allow for construction of "Annex 71": a 140 -unit multi -family residential complex oriented towards student housing. A map of the proposed District boundaries can be found in Section 3 of this plan. Estimated Total Project Expenditures. The City anticipates making total Project Cost expenditures of approximately $4.45 million to facilitate clean up and redevelopment on the site. The estimated expenditures include $3.88 million in projected development incentives to be made on a "pay as you go" basis, $530,000 for installation of cul-de-sacs on Dawes Street and Riverway Drive and for trail/riverwalk improvements, and $36,000 for administrative expenses that will be incurred over the life of the District. Economic Development The City projects that new land and improvement value of approximately $15.2 million will result from construction of the project. This additional value will be a result of the improvements made and projects undertaken within the District. A table detailing assumptions as to the redevelopment timing and associated values is included 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 13 -years based on current projections. The statutory maximum life of the District would be 27 -years. 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: 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: • At the City's request, Ehlers completed a limited independent review of the developer's sources and uses, and cash flow proforma for the project. The project's projected return on investment over 10 years without TIF assistance is 6.24%. The developer has requested that the City provide Piroject Rlan TID No. 33 Cireatlion Gity of Oshkosh Pirepaired by Ehlleirs Wage 4 June 27, 2017 incentive payments on a pay as you go basis with a present value of $2,506,153. (Projected future value payments of $3,879,917). Provision of the requested assistance would improve the project's return on investment to 9.26%. Projects of this type typically need to provide a return in the range of I I% to 16% to attract the necessary capital. Based on Ehlers review, provision of pay as you go TIF assistance in the amount requested is necessary to provide an acceptable return on investment and indicates that "but for" the TIF assistance, the project would not likely proceed. 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 more than sufficient to pay for the proposed project costs. On this basis alone, the finding is supported. • The development expected to occur within the District would create approximately 140 residential units for students. • The proposed development will significantly increase the property value of the site from its current base value. • The proposed new student oriented housing community represents a significant enhancement of added value to the private off campus housing market currently offered in the region. • The proposed development could have a positive impact on university enrollment which has declined 3.7% since 2011. Students surveyed indicated that they would welcome more student centric off campus housing. • Removal of a blighting influence in the Marion Road area that may be impacting the City's ability to redevelop other property in the immediate 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, 2017. As of this date, the values of all existing development 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, 2017 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 Pirojact Rlwi TID No. 33 Ciraatliorl Gity of Oshkosh Pirapaired by Ehllairs Page 5 Jwie 27, 2017 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 a blighted area within the meaning of Wisconsin Statutes Section 66.1105 and is an area in need of rehabilitation or conservation work as defined in Section 66.1337(2m)(a) based on the following findings:. • Existing former manufacturing structures with oldest structures first constructed in 1952 as light industrial structures exhibit signs of deterioration and functional obsolescence requiring extensive rehabilitation and are as a result detrimental to the public health, safety, morals and welfare; and • Long-term industrial use within this area is inconsistent with residential uses in the adjacent area; • Industrial uses are not consistent with the City's Comprehensive Land Use Plan for the area calling for mixed used development; and • The City's Comprehensive Plan has identified the need to relocate older industrial uses out of this mixed-use neighborhood because such uses are detrimental to the public welfare; and • Presence of environmental contamination on the site requires widespread remediation; and • Presence of poorly drained soils combined with high groundwater conditions make site redevelopment difficult; and • The site is comprised of historically filled lands requiring use of alternative foundation systems making rehabilitation of the site costly and difficult. 5. Based upon the findings, as 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 approximately none 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 No. 33 Ciraatiorl Gity of Oshkosh Pirapaired by Ehllairs Page 6 Jul is 27, 2017 SECTION 2: Type and General Description of District The District, comprising approximately 5.5 acres located on Marion Road opposite The Rivers Senior Living apartments, 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)l. 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 assist with the removal of existing blighted and functionally obsolete structures, environmental remediation and other site preparation costs to allow for construction of "Annex 71": a 140 -unit multi -family residential complex oriented towards student housing. The property's current state and land use is incompatible with the City's land use plans for the area which call for more mixed use and residential development in the area. A preliminary map of the proposed District boundary can be found in Section 3 of this Plan. Pirojact Rlwi TID No. 33 Ciraatliorl Gity of Oshkosh Pirapaired by Ehllairs Page 7 Jul is 27, 2017 SECTION 3: Preliminary Maps of Proposed District Boundary Legend EM TID #33 Boundary 0 25 50 100 150 200 250 Feet Dote: Wednesday, June 07, 2017�e Project Rlwi TID No. 33 Cireatoi i Gity of Oshkosh Prepared by Ehlleirs Foga 8 Jwie 27, 2017 �I Legend EM TID #33 Boundary 0 25 50 100 150 200 250 Feet Dote: Wednesday, June 07, 2017�e Project Rlwi TID No. 33 Cireatoi i Gity of Oshkosh Prepared by Ehlleirs Foga 8 Jwie 27, 2017 Tax Increment District #33 Lamico Redevelopment CHY P An ow Parcel Identification Oshkosh Project Ran TID No. 33 Cireahon Gity of Oshkosh Prepared by EMeirs Page 9 June 27, 2017 SECTION 4: Maps Showing Existing Uses and Conditions Tax In District #33 An LC. mico Redevelopment Existing Land Use bshkosh Existing Land Use TD #3,3 Boundary Institutional commercial 0 60 too 200 Industrial Residential Parking Lot infrastructure Vacant Land Public Park Project Ran TID No. 33 Creation Gity of Oshkosh Prepared by EKleirs Page 10 June 27, 2017 Tax Increment District #33 Lamico Redevelopment Existing Conditions Legend TID #33 Boundary 0 25 50 100 150 Feet Date: Wednesday, June 07, 2017 Cillofv Oshkosh Project Rlarl TID No. 33 CIraatoi i Gity of Oshkosh Prepared by Ehllalrs Page 11 Jwie 27, 2017 SECTION 5 - Preliminary Parcel List and Analysis NOTES: Property and assessment information as of January 1, 2017 per City Assessor 6-26-2017. 2Assumed equalization ratio of 100% for modeling purposes. 3Properties to be located within the District consist of land upon which buildings or structures have been demolished and which because of obsolete platting, diversity of ownership, deterioration of structures or site improvements, or otherwise, substantially impairs or arreststhe sound growth of the community consistentwith Wis. Stat. § 66.1105(2)(ae)1.b. Project Ran TID No. 33 Ciraatlian Gity of Oshkosh Prepared by EMeirs Page 12 Tana 27, 2017 SECTION 6: Equalized Value Test The following calculations demonstrate that the City is 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 $264,138,900. This value is less than the maximum of $453,147,036 in equalized value that is permitted for the City of Oshkosh. The City therefore expects to be in compliance with the statutory equalized valuation test and may proceed with creation of this District. District Creation Date 7/11/2017 Compliance Pirojact Rlwi TID No. 33 Cireatiorl Gity of Oshkosh Pirapaired by Ehllairs Page 13 Julia 27, 2017 Valuation Data Percent Valuation Data Currently Available Change Est. Creation Date 2016 Tota IEV(TIDIn) M�rIf///f/�������//�j'i/f 12% Test 453,147,036 453,147,036 Total Existing Increment 264,138,900 264,138,900 Projected Base of New or Amended District 732,200 Total Value Subject to 12% Test 264,871,100 264,871,100 Compliance Pirojact Rlwi TID No. 33 Cireatiorl Gity of Oshkosh Pirapaired by Ehllairs Page 13 Julia 27, 2017 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 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. Site Preparation Activities Environmental Audits and Remediation If 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. 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 construct and/or 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; utility relocation; 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. Piroject Rlan TID No. 33 Cireation Gity of Oshkosh Pirepaired by Ehlleirs Wage 14 dune 27, 2017 Streetscaping and Landscaping To attract redevelopment 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, terraces and street crossings. These and any other similar amenities installed by the City are eligible Project Costs. RDA Type Activities Contribution to Redevelopment Authority As provided for in Wisconsin Statue Sections 66.1105(2)(f)lh 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)l.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 make the following project cost expenditures outside the District: installation of a cul-de-sac on Riverway Drive, and Riverwalk improvements and trail connections. Riverwalk improvements include a pedestrian trail linking the riverwalk to the proposed development and to the north to Pearl Avenue which improvements enhance multimodal transportation circulation for the area. Piroject Rlan TID No. 33 Cireatlion Gity of Oshkosh Pirepaired by Ehlleirs Wage 15 June 27, 2017 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. Piroject Rlan TID No. 33 0;ireation Gity of Oshkosh Pirepaired by Ehlleirs Wage 16 Trane 27, 2017 SECTION 8: Map Showing Proposed Improvements and Uses Tax Increment District #33 Lamico Redevelopment CHY F ^A ow Proposed Improvements Oshkosh prove Legend M TID #33 Boundary 0 25 50 100 160 200 F,,, Date: Wednesday, June 14,2017 Project Rlwi TID No. 33 Cireaho�i Gity of Oshkosh Prepared by EMeirs Page 17 Jwie 27, 2017 1�1 MTI[ #33 Boundary 0 50 100 200 Feet rxjd,dlmxyh,."'d V, Tax Increment Distn'ct #33 Lamilco Redevelopment Proposed Land Use IM Existing Land Use lnstitutiond aCommercial lndustrial Residential Parking Lot infrastructure EM vacant Land Public Park AMr-j[ dshkosh Project Ran TID No. 33 Cireahon Gity of Oshkosh Prepared by EMeirs Page 13 June 27, 2017 SECTION 9: Detailed List of Project Costs All costs are based on 2017 prices and are preliminary estimates. The City reserves the right to increase these costs to reflect inflationary increases and other uncontrollable circumstances between 2017 and the time of construction. 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 Supporting Project List Providing Basis for Development Incentive, Soft Costs 85,770 Environmental Remediation 727,000 Sitework 1,120,730 Concrete 242,000 Contingency 200,000 Subtotal 2,375,500 Overhead and Profit @ 5.5% 130,653 Total 2,506,153 Estimated Project List Project ID Project Name/Type Projected Year Estimated Cost 1 Development Incentive Principal (Total from Above) 2,506,153 2 Development Incentive Interest 1,373,764 3 Riverwalk/Trail ConnectionsZ 350,000 4 Dawes St. Cul-de-sacZ 90,000 5 Riverway Dr. Cul-de-sacZ 90,000 6 Administrative Expense 36,000 Total Projects 4,445,917 Notes: ,Environmental and site related costs as provided by Annex Student Living via e-mail dated 5-22-2017. ZCost estimates per City staff e-mail dated 5-22-2017 and 6-13-2017. Pirojact Rare TID No. 33 Ciraahorl Gity of Oshkosh Pirapaired by EMeirs Page 19 Julie 27, 2017 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. 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 redevelopment expected to occur, 2) a projection of tax increments to be collected resulting from 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 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, 2016, the City had approximately $48.6 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. Piroject Rlan TID No. 33 Cireatlion Gity of Oshkosh Pirepaired by Ehlleirs Wage 20 dune 27, 2017 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 (RDA). 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 $4.45 million to facilitate redevelopment on the site. The estimated expenditures include $3.88 million in projected development incentives to be made on a "pay as you go" basis, $530,000 for installation of cul-de-sacs on Dawes Street and Riverway Drive and for trail/riverwalk improvements, and $36,000 for administrative expenses that will be incurred over the life of the District. Expenditures are expected to be made in the timeframes identified on the Detailed List of Project Costs included in Section 9, and will be paid from tax incremental revenues of the District as those revenues are received. The City expects to advance funds to the District as needed to pay the costs of professional and other services related to creation of the District and it administration during the District's initial two years when no increment will be generated. These advances will be repaid as funds become available. Alternatively, the City could choose to borrow the amounts needed to fund project costs in advance of the availability of tax increments to pay them. Development incentive payments will be made only following receipt of associated tax increment revenue from the Project, and are expected to be limited to no more than 75% of the available increment. 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. Piroject Rlan TID No. 33 Cireation Gity of Oshkosh Pirepaired by Ehlleirs Wage 21 June 27, 2017 Development Assumptions Project Ran TID No. 33 Ciraatlian Gity of Oshkosh Prepared by EMeirs Page 22 Tana 27, 2017 Annex 71EEI Construction Year Demo Loss i Construction Year Project 1 2017 (643,WO) (643,WO) 2017 1 2 2018 13,667,800 13,667,800 2018 2 3 2019 0 2019 3 4 2020 0 2020 4 5 2021 0 2021 5 6 2022 0 2022 6 7 2023 0 2023 7 8 2024 0 2024 8 9 2025 0 2025 9 10 2026 0 2026 10 11 2027 0 2027 11 12 2028 0 2028 12 13 2029 0 2029 13 14 2030 0 2030 14 15 2031 0 2031 15 16 2032 0 2032 16 17 2033 0 2033 17 18 2034 0 2034 18 19 2035 0 2035 19 20 2036 0 2036 20 21 2037 0 2037 21 22 2038 0 2038 22 23 2039 0 2039 23 24 2040 0 2040 24 25 2041 0 2041 25 26 2042 0 2042 26 27 2043 0 2043 27 Totals % (643,WO) 13,667,800 13,024,000 Notes: IEstimated incremental valuation as determined by City Assessor and Ehlers. Project Ran TID No. 33 Ciraatlian Gity of Oshkosh Prepared by EMeirs Page 22 Tana 27, 2017 Increment Revenue Projections Type of District -643,800 2018 r ��� ' -643,800 Base Value $26.98 District Creation Date 0 0 2018 Appreciation Factor 2019 Valuation Date 13,011,124 2020 $26.98% Base Tax Rate 311,931 Max Life (Years) 2019 0 2020 Rate Adjustment Factor 13,271,346 Expenditure Period/Termination $26.98 it r 620,833 581,762 2020 Revenue Periods/Final Year 2021 265,427 13,536,773 2022 $26.98 Extension Eligibility/Years 926,736 862,247 2021 0 2022 Tax Exempt Discount Rate 13,807,509 Recipient District $26.98 Taxable Discount Rate Construction Inflation Total 2022 0 Year Value Added Valuation Year Increment Increment Revenue Year Tax Rate' Tax Increment 1C 17 1: 1; 1[ 1`. 1E 1 1f 1c 2C 27 2: 2; 2[ 2`. 2E 2 Tax Exempt NPV Taxable NPV Calculation Calculation 2017 -643,800 2018 0 -643,800 2019 $26.98 0 0 2018 13,667,800 2019 -12,876 13,011,124 2020 $26.98% 311,931 294,403 2019 0 2020 260,222 13,271,346 2021 $26.98 620,833 581,762 2020 0 2021 265,427 13,536,773 2022 $26.98 926,736 862,247 2021 0 2022 270,735 13,807,509 2023 $26.98 1,229,669 1,136,022 2022 0 2023 276,150 14,083,659 2024 $26.98 1,529,661 1,403,247 2023 0 2024 281,673 14,365,332 2025 $26.98 1,826,741 1,664,080 2024 0 2025 287,307 14,652,639 2026 $26.98Im"i 2,120,936 1,918,672 2025 0 2026 293,053 14,945,692 2027 $26.98 2,412,275 2,167,173 2026 0 2027 298,914 15,244,605 2028 $26.982,700,786 2,409,730 2027 0 2028 304,892 15,549,498 2029 $26.98 2,986,495 2,646,483 2028 0 2029 310,990 15,860,488 2030 $26.98 3,269,431 2,877,573 2029 0 2030 317,210 16,177,697 2031 $26.98 3,549,620 3,103,134 2030 0 2031 323,554 16,501,251 2032 $26.98 3,827,088 3,323,299 2031 0 2032 330,025 16,831,276 2033 $26.98 4,101,863 3,538,197 2032 0 2033 336,626 17,167,902 2034 $26.98 4,373,969 3,747,954 2033 0 2034 343,358 17,511,260 2035 $26.98 4,643,434 3,952,693 2034 0 2035 350,225 17,861,485 2036 $26.98 4,910,283 4,152,534 2035 0 2036 357,230 18,218,715 2037 $26.98 ! 5,174,541 4,347,594 2036 0 2037 364,374 18,583,089 2038 $26.98 5,436,234 4,537,987 2037 0 2038 371,662 18,954,751 2039 $26.98 5,695,385 4,723,825 2038 0 2039 379,095 19,333,846 2040 $26.98 5,952,021 4,905,218 2039 0 2040 386,677 19,720,523 2041 $26.98 6,206,165 5,082,271 2040 0 2041 394,410 20,114,933 2042 $26.98 �' 6,457,842 5,255,088 2041 0 2042 402,299 20,517,232 2043 $26.98 6,707,075 5,423,771 2042 0 2043 410,345 20,927,576 2044 $26.98 6,953,888 5,588,419 2043 0 2044 418,552 21,346,128 2045[(J�//(,�/�/(r $26.98 7,198,306 5,749,127 ,�yy Notes: Tax rate shown is actual TID Interim Rate for the 2016/17 levy per DOR Form PC -202 (Tax Increment Collection Worksheet). Project Ran TID No. 33 0;iraatlian Gity of Oshkosh Prepared by EMeirs Page 23 Tana 27, 2017 Cash Flow City of Oshkosh, WI Tax Increment Cash Flow District Projection # 33 Pay As You Go ) Developer Obligation' •Tax Interest Developer PAYGO Earnings/ Total Beginning Defe rred IntereStr I oce Ptive Ending PrincIpal •• • • Outstanding • ••• ••• • 17 • • • •• • •• • • • • • 2,763,034•• •• 2020 351,081 (D 6')) 350,512 2,763,034 138,152 263,311 2,637,875 1,900 85,701 66,743 2,637,875 2020 202 1 358,102••2 360,105 2,637,875 131,894 268,577 2,501,192 1,500 90,028 156,771 2,501,192• •369,264 4,703• • • 273,948 2,352,303 1,500 275,448 94,519 251,290 21392,303 372,970 7,539 380 108 2,352,303 117,615 279,427 2,190,491 350,000 1,500 630,927 (2 50, 819) 471 2,190,491 380'021 14 380,035 2,190,491 109,525 285,016 2,015,000 1,500 286,516 93,519 93,991 2,019,000 387,621 2,820 390,441 2,015,000 100,750 290,716 1,825,034 180,000 1,500 472,2 16 (81, 7 7 � ) 12,216 1,829,034 395,374 366 395,740 1,825,034 91,252 296,530 1,619,755 1,500 298,030 97,710 109,926 1,619,799 • 40 80,988 302,461•• 303, 961 • •411,347 6,376 417723 1,398,282 69,914 •• • •• • • • 419,974 9,608 429,182 1,159,685 57,984 314,680 902,989 1,500 316,180 113,001 433,258 902,989 427,969 12,998 440,963 902,989 45,149 320,974 627,164 1,500 322,474 118,489 551,747 627,164 • •• 328,894 2032 445255 20,278 • :' 5•I is I • 478:386 2034 463'244 38,144 501,388 0 501,388 1,772,865 2034 2035 508 186 694 0 694 298,560 2035 2036 ,. •, 2037 49 1,598 81,484 577,082 177,082 3,426,5 7 2037 2038 501,430 02,797 604,226 604,226 4,030,784 2038 2039 51 1,458 20,924 632,382 632,382 4,663,166 2039 2040 521'688 139,891 661:582 661,582 5,324,748 2040 2041 532,121 159,742 691 864 691,864 6,016,612 2041 2042 542,764 180,498 723,262 723,262 6,739,8 4 2042 2043 593'619 202,196 755,815 755,815 7,495,689 2043 •„2044 „ 2045 979,985 248,558 824,543 824,543 9,109,794 •, Total �001 Total Notes: MEMEMINSIM"M �Neghtive Interest earnings reflect assumed Interest expense at 3% to be chargecto the District on advances or proceeds of long term debt usecto fund project costs. Project Plain TO No. 33 Creation City of Oslhkoslh Prepared by Ehlers Page 24 June 2'7, 2017 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 none 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 UMU-PD (Urban Mixed Use -Planned Development) zoning. 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 Implementation of this Plan will not require relocation of individuals or business operations. If relocation were to become necessary, it 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. 33 Ciraatliorl Gity of Oshkosh Pirapaired by Ehllairs Page 25 Jul is 27, 2017 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 development of the City of Oshkosh by eliminating blight and encouraging compatible redevelopment of an underutilized site. Former industrial use of the site is incompatible with City's long terms plans for the area which call for development of more housing and mixed use development and the relocation of older industrial uses from the area. Redevelopment in the District will add to the tax base, provide additional housing opportunities, and will generate positive secondary impacts in the community such as increased employment opportunities and increased demand for services. 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 expect to incur any non -project costs in the implementation of this Project Plan. Piroject Rlan TID No. 33 Cireatlion Gity of Oshkosh Pirepaired by Ehlleirs Wage 26 June 27, 2017 SECTION 18: Opinion of Attorney for the City of Oshkosh Advising Whether the Plan is Complete and Complies with Wisconsin Statutes 66.1105 Project Ran TID No. 33 Cireahon Gity of Oshkosh Prepared by EMeirs Page 27 June 27, 2017 }° of Oshkosh City Attorney's Office Phone: (920) 236-5115 Fax: (920) 236-5106 http://ivi"v.ci.oshkosh,ivi.us June 28, 2017 Darryn Burich Director of Planning Services City of Oshkosh 215 Church Avenue Oshkosh, WI 54903-1130 Dear Mr. Burich: I reviewed the project pian for, City of Oshkosh Tax Increment District i#33 Lamico 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 includes 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 identifies 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 specifies 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)(0, 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, q1A OF OSHKOSH']�1 Lyn Loren on -- City Attorney LL/tw City Attorney City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5115 http://www.ci.oshkosh.wi.us Page 28 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. 33 Cireabon Pirepaired by EMeirs Page 29 MON.,. .- Statement of Taxes Data Year: Percentage Winnebago County 19.58% City of Oshkosh 41.85% School District of Oshkosh Area 1 -' / 34.54% Fox Valley Technical College 4.03% Total School District Fox Valley Winnebago of Oshkosh Technical Revenue Year County City of Oshkosh Area College Total Revenue Year 2019 0 0 0 0 0 2019 2020 68,736 146,941 121,271 14,132 351,081 2020 2021 70,111 149,880 123,697 14,414 358,102 2021 2022 71,513 152,878 126,171 14,703 365,264 2022 2023 72,943 155,935 128,694 14,997 372,570 2023 2024 74,402 159,054 131,268 15,297 380,021 2024 2025 75,890 162,235 133,893 15,603 387,621 2025 2026 77,408 165,480 136,571 15,915 395,374 2026 2027 78,956 168,790 139,303 16,233 403,281 2027 2028 80,535 172,165 142,089 16,558 411,347 2028 2029 82,146 175,609 144,930 16,889 419,574 2029 2030 83,789 179,121 147,829 17,227 427,965 2030 2031 85,465 182,703 150,786 17,571 436,525 2031 2032 87,174 186,357 153,801 17,923 445,255 2032 2033 88,918 190,084 156,877 18,281 454,160 2033 2034 90,696 193,886 160,015 18,647 463,244 2034 2035 92,510 197,764 163,215 19,020 472,508 2035 2036 94,360 201,719 166,480 19,400 481,959 2036 2037 96,247 205,753 169,809 19,788 491,598 2037 2038 98,172 209,869 173,205 20,184 501,430 2038 2039 100,136 214,066 176,669 20,587 511,458 2039 2040 102,138 218,347 180,203 20,999 521,688 2040 2041 104,181 222,714 183,807 21,419 532,121 2041 2042 106,265 227,168 187,483 21,847 542,764 2042 2043 108,390 231,712 191,233 22,284 553,619 2043 2044 110,558 236,346 195,057 22,730 564,691 2044 2045 112,769 241,073 198,958 23,185 575,985 2045 2,314,410 4,947,651 4,083,315 475,831 11,821,206 Note: The projection shown above is provided to meet the requirements of Wisconsin Statute 66.1105(4)(i)4. Project Ran TID No. 33 Cireabon Pirepaired by EMeirs Page 29 May 2, 2017 Mr. Mark Rohloff City Manager City of Oshkosh, Wisconsin 215 Church Avenue Oshkosh, WI 54903 RE: TIF Application, 474-478 Marion Road, Annex 71, LLC Dear Mr. Rohloff, Enclosed is all necessary information for your review of the TIF request for the proposed redevelopment at 474-478 Marion Road. Description of Site and Building This project will consist of a four-story complex with approximately 140 units and 310 bedrooms. Surface parking will be provided at a ratio of 0.8 spaces per bed as is consistent with our other developments across the country and a portion of the parking provided will be covered. The units offered are fully furnished, will include washers and dryers, and each bedroom has its own bathroom. A clubhouse will also be provided with an indoor fitness room, gathering spaces and study/conference rooms available to residents. Current and Proaosed Users The current use of the property is a vacant, dilapidated, uninhabitable collection of industrial buildings. The current buildings were developed in the 1940s, 1950s, and 1984 and were permanently closed in 2012. Railroad siding along the north and west borders were removed by 2005. The proposed use would be demolition of the current blighted buildings to build a multifamily facility with fully furnished units and amenities for the residents. Description of End Users The proposed users of the redevelopment would be primarily students from the University of Wisconsin, Oshkosh. In addition the new complex would also house young professionals working in an around the City of Oshkosh. Profitability Based our internal Market Analysis and the Market Study conducted by Landmark Properties, there is clear demand for this type of project within the City of Oshkosh around the UW Oshkosh Campus. Our market study also indicated the rents projected and thus return projected are in line with the surrounding market rent rates. Description of Public Benefits Currently the site sits inside the Marion Road Redevelopment District but was never added to the district. Several new developments surround the property but this site remains an eye sore for the area. As part of the redevelopment, Annex 71 agrees to dedicate public R/W in order to provide a turn -around and snow push area for the City at the end of the current Dawes Street. In addition a public easement will be granted along the eastern boundary for the City to add bike path and pedestrian connection from the dead end of Riverway Drive. This provides an avenue for connectivity to the Oshkosh Riverwalk. Page 30 IM ennEK Mow uvmc The site contains a considerable amount of environmental contaminants. As part of this redevelopment, the contamination will be mitigated and monitored as required by WDNR. Annex 71 is taking on the liability for all the environmental clean up. With this project 3 new full time positions and 3 part-time positions will be created with a combined total salary of $170,000. Overview of Private -Sector Financing The current private -sector financing proposal is for a construction loan led by an Indiana bank with which Annex Student Living has closed numerous projects. The Bank, however, intends to participate the loan out with a local bank to the Oshkosh or surrounding areas. The lead Bank is currently in discussions to solidify this participation pending final approval of the project with the City of Oshkosh and other stakeholders. Construction financing is currently proposed at 65-70% Loan to Cost, pending final review, underwriting and understanding of City assistance through the anticipated TIF funding. Amount of TIF assistance re uested We are requesting to utilize the "pay as you go" TIF program to help make this project financially feasible and of interest to outside investors. Based on actual costs that we believe to be eligible project expenses, we are requesting $2,506,153 (Two million five hundred six thousand one hundred fifty-three dollars) in total TIF assistance. Summary of Increment Projections The TIF assistance amount is based on both the eligible project costs as well as a calculation of the tax increment projections. We have assumed a 15 year, starting when the project is placed in service, tax increment calculation by taking the projected real estate taxes generated by the project minus the current taxes generated by the parcel. The increment benefit is then shared between the City and Developer (10% and 90%, respectively). It is anticipated that the Developer will generate a TIF bond, backed by the anticipated proceeds from this shared tax increment. This TIF bond should match the anticipated eligible project cost and be used to fill the financial gap to make this project feasible. Name of Developer and Owner Annex 71, LLC an Indiana limited liability will be the Owner and Developer of this project. Total Development Costs $18,101,100.00 The economics associated with this redevelopment project which involve additional costs related to demolition, site preparation and environmental remediation and/or abatement TIF would not make the project feasible but for the TIF funding. Without the use of TIF funds to improve this blighted and contaminate area this project would not be feasible. Respectfully, Kyle Bach President & CEO Annex Student Living Page 31 ANNEX 71 OSHKOSH, WISCONSIN PROJECT NARRATIVE About Annex Student Annex Student Living is a fast-growing student housing developer serving the needs of colleges and universities throughout the Midwest. Annex was formed with the purpose to create student living communities at regional campuses, community colleges and Division II & III universities. Our goal is to bring the life experience and benefits of big campus living to smaller campus communities. Founded in 2009, Annex has a portfolio of communities in operation or development valued at more than $150 million. We take pride in creating environments that promote resident life and community belonging as this truly impacts our residents' futures and academic success. Each Annex development is strategically planned and executed to ensure a finished product that is cohesive with the goals and values of the schools and communities we serve. Annex has nearly 2,000 beds in various stages of operation in Indiana, Illinois, Ohio and Michigan with several hundred more in development in Indiana, and Missouri. Our rapid growth has been facilitated through public-private partnerships, unique financing methods and community redevelopment efforts. It is our mission to provide memorable college experiences through unique housing opportunities that serve as a catalyst for economic development. We seek to: • Create community by establishing relationships and trust with open communication to create a family atmosphere. • Innovate solutions by seeking input from our tenants, and adapting and absorbing that information to provide a superior product • Calculate risk by carefully analyzing the market to understand potential threats and create contingency plans. • Enhance culture of every student, campus and community. Our property management company, Landmark Properties, Inc., is committed to building a community where people feel that they belong, fit in and are cared for. A sense of community emerges when residents participate in events allowing them to become better acquainted with roommates and other residents. This will help to foster better friendships and give residents a chance to experience things beyond their normal school routine. It is also our goal to assist in enhancing the overall quality of life for every resident by addressing four key components to a well- rounded experience. The four basic programming goals for Landmark communities are represented with the acronym P.A.W.S. Programs targeting residents at Landmark communities will target the following core goals: Philanthropy, Academic, Wellness, and Social. Every Landmark community is expected to complete two programs in each of the four P.A.W.S categories per semester. By focusing on programming that touches on the four core P.A.W.S. areas, Landmark gives residents a chance to connect with others and experience personal growth. Page 32 Current and Proposed Site Condition In reviewing available information back to 1890 the Site was occupied by Radford Bros Lumber Yard with railroad siding along the north and west boundaries. By 1903, multiple industrial structure were developed on the southeast portion, which were occupied by The R. R. Starkweather Co., manufacturers of interior finishing. The site consists of approximate 5 acres and the current use of the property is approximately 80,000 square feet of vacant, dilapidated, uninhabitable collection of industrial buildings. The current buildings were developed in the 1940s, 1950s, and 1984. The west portion of the Site was occupied by Sexton Can Co. and/or Cook & Brown Lime Co. yards from approximately 1958 to 1962; and Bel/Fab/Medalist Industries, metal product manufacturers from approximately 1972 to 1987. The central and east portions of the Site were occupied by Oshkosh Wood Products Corp from at least 1949 until approximately 1972. Lamico, Inc. and/or Urban Enterprises, manufacturers primarily of wood and metal crutches, also occupied the central and east portions of the Site by the late 1950s or 1960s, and subsequently the entire Site, until 2012, when it was permanently closed. Railroad siding along the north and west borders was removed by 2005. Annex 71, LLC conducted a Phase I & Limited Phase II Environmental Site Investigation, methane testing, and geotechnical investigation. All of those reports indicate some remediation/containment/restrictions will be necessary due to contaminants found in the soil and groundwater, in addition to a large amount of organic material located beneath the surface. Geopiers will be required for the foundations in lieu of a standard foundation and slab. Lastly the buildings have tested positive for asbestos which will require remediation during demolition. The proposed use would be demolition of the current blighted buildings to build a multifamily facility with fully furnished units and amenities for the residents. Construction and Specific Site & Building Information All 80,000 square feet of the existing buildings will be demolished with the construction of this project. This project will consist of a 142,380 square foot, four-story apartment complex with 140 units and 310 bedrooms. The exterior materials will include brick, metal panels, stucco and some fiber cement panel system as accent. Structural foundations required aggregate piers due to the instability of the previous fill materials present on the site. The complex will include indoor bicycle parking/storage, a clubhouse which will include a full kitchen for community functions or student gatherings, leasing offices, fitness room, conferences/study rooms, and other gathering spaces for residents. The current plan also offers a large outdoor amenity areas with views of the river. We anticipate these will be used as outdoor recreation areas. Unit breakdown and square footages for the fully furnished units are as follows: 1 Bed/1 Bath 536 SF 60 Units 2 Bed/2 Bath 777 SF 27 Units 2 Bed/2 Bath 850 SF 8 Units 4 Bed/4 Bath 1296 SF 45 Units 249 surface parking will be provided at a ratio of 0.8 spaces per bed as is consistent with our other developments across the country and a portion of the parking provided will be covered. Page 33 This project will consist of two phases with the entire building and parking west of the building being completed first. The City and Developer intend to swap parcels. The water tower parcel will eventually become a part of this development and the area to the north of the water tower will become City land for a future water tower. This land swap may necessitate a second phase to the development if the water tower demolition is delayed for any reason. Existing TID The property is surrounded by the Marion Road Redevelopment District but the current owners elected not to be included in the district. This project is consistent with the vision for the redevelopment in the area. Green Features Annex 71 is currently researching the possibility of including some solar energy on the exterior parking canopy to power some if not all of the common areas on the site. In addition, the amount of surface parking has been reduced to match what is typically developed at other properties. This increases the green area on the site and reduces the impervious area. The sidewalk along Marion Road will be widened to enhance the pedestrian experience along the road and our leasing office and clubhouse are designed to integrate the pedestrian activity along Marion Road with the atmosphere at the subject property. There are two stormwater ponds which are designed as amenity areas with one being located directly next to the main entrance and the clubhouse area. Indoor bicycle parking will be an amenity for the residents along with required bicycle parking on the exterior of the site. We will recycle all concrete and asphalt during demo unless contaminated. We will purchase at least 10% of materials within 500 miles. Entire project will be lit inside and out with LED fixtures. All paint will be low VOC as well as all flooring will be made from recycled content. All fixtures will be water sense labeled and windows will be energy star rated. Page 34 Tax Incremental Financing Policy and Application What is TIF? Tax Incremental Financing (TIF) is a special funding tool available to local municipalities that spurs economic development which otherwise would not occur. When a Tax Increment District (TID) is created property owners within the district continue to pay the same property tax rates as those outside the district. The difference is that tax collections, over and above the "base value" are placed into a special fund that is used to pay for project costs. Once all costs incurred by the creation of the TID are recooped by the additional tax increment created the TID is closed 0 a Time and the additional property taxes created are shared by all taxing entities. The use of TIF varies from project to project and district to district. In some cases, the City uses TIF to promote redevelopment of older parts of the community. In other cases the City uses TIF to create industrial parks through land acquisition and construction of infrastructure. In both cases, increased property tax collections are used to pay down debt service associated with project costs. The following outlines the City's policy regarding TIF. Purpose: The purpose of this Policy is to articulate to existing or potential businesses the City of Oshkosh's desire to promote economic development that is consistent with the City's Comprehensive Plan and provides a community benefit that will ultimately be shared by all taxing entities (City, School, Technical College, County, and State) impacted through the establishment of Tax Increment District (TID). Notwithstanding compliance with any or all of the guidelines herein, the provision of TIF assistance is a policy choice to be evaluated on a case-by-case basis by the Common Council. The burden of establishing the public value of TIF shall be placed upon the applicant and the application must substantially meet the criteria contained herein. City Administration reserves the right to bring any TIF proposal forward for Council consideration. Meeting statutory requirements, policy guidelines or other criteria listed herein does not guarantee the provision of TIF financial assistance nor does the approval or denial of one project set precedent for approval or denial of another project. TIF Authority: The authority and regulations for Tax Incremental Financing and the establishment of Tax Increment Districts are found in Wis. Stats. 66.1105. The City of Oshkosh reserves the right to be more restrictive than provided under the statutes. Page 35 Tax Incremental Financing Policy and Application Basic Provisions: As a matter of policy the City of Oshkosh will consider using Tax Incremental Financing to assist private development in those circumstances where the proposed private project shows a demonstrated financial gap and that the financial assistance request is the minimum necessary to make the project feasible. The developer is expected to have exhausted every other financial alternative(s) prior to requesting the use of TIF, including equity participation, other federal and state funds, bonds, tax credits, loans, etc. It is the intent of the City to provide the minimum amount of Tax Incremental Financing assistance to make the project viable and not solely to broaden a developer's profit margin on the project. Prior to consideration of a Tax Incremental Financing request, the City will undertake (at the requestor's cost) an independent analysis of the project to ensure the request for assistance is valid. In requesting TIF assistance, the developer must demonstrate that there will be a substantial and significant public benefit to the community by eliminating blight, strengthening the economic and employment base of the City, positively impacting surrounding neighborhoods, increasing property values and the tax base, creating new and retaining existing jobs, and implementing the Comprehensive Plan. Each project and location is unique and therefore every proposal shall be evaluated on its individual merit, including its potential impact on city service levels, its overall contribution to the economy and its consistency with the Comprehensive Plan, Strategic Plan or other community planning documents. Each project must demonstrate probability of financial success. "BUT FOR" TIF The fundamental principle and that which the City must determine through information provided by the developer is that the project would not occur "but for" the assistance provided through Tax Incremental Financ- ing. The burden is on the developer to make this case to the City and not the City to make this case for the developer. Should this "but for" determination not be made, Tax Incremental Financing for the project cannot move forward. TIF Objectives: The City will consider utilizing Tax Incremental Financing to meet the following basic objectives: 1. Stimulate and continued revitalization of the central city and downtown area by: a. Improving infrastructure; b. Creating a variety of housing opportunities to increase the number of downtown residents; c. Preventing or eliminating slums and blighting conditions; d. Constructing mixed-use developments; e. Attracting desirable businesses and retaining existing businesses. f. Encouraging development projects that enhance the streetscape and pedestrian experience and improve the vitality of the downtown area by adding interest and activity on the first floor of mixed- use buildings. 2. Promote efficient usage of land through redevelopment of blighted areas. 3. Strengthen the economic base of the City and support Economic Development. 4. Stabilize and upgrade targeted neighborhoods. 5. Create and retain family supporting jobs in the City. 6. Increase property values and tax revenues. 7. Leveraging the maximum amount of non -city funds into a development and back into the community. Pace 36 Tax Incremental Financing Policy and Application What Development is Eligible? The type of development that the City will consider TIF funding includes: 1. Business development (attraction, retention, expansion). TIF assistance will be evaluated on its impact on existing local markets. 2. Mixed-use developments that creatively integrate commercial and retail projects into a residential development. 3. Revitalization of historically significant or deteriorated buildings. 4. Projects that promote central city office and retail development. 5. Projects that promote neighborhood stabilization or revitalization. 6. Projects that promote industrial development. 7. Projects consistent with approved TIF Project Plans. 8. Projects that involve environmental clean-up, removal of slum and blighting conditions. 9. Projects that contribute to the implementation of other public policies, as adopted by the city in its strategic plans such as promotion of high quality architectural design, energy conservation (i.e. LEED, Energy Star, etc), green infrastructure, etc. The Rivers Assisted Living Facility was completed in 2011 within TID #21 also known as the Fox River Corridor Project. Basler Turbo Conversions is located in TID #8, South Aviation Park, which was developed in 1991 and is approximately 256 acres. What Development is Ineligible? The City will not favor use of TIF funding to help support the following types of development. 1. Speculative office development without one or more anchor tenants. 2. Relocation of offices, retail and/or commercial uses for purposes other than retaining or substantially expanding the business. 3. Office and retail development outside of the central city unless part of a city owned business or industrial park. 4. Stand alone residential development projects unless limited by site and environmental conditions beyond which make the project financially infeasible. 5. Projects not consistent with the Comprehensive Plan. Page 37 Tax Incremental Financing Policy and Application Eligible Costs: TIF eligible expenditures are defined by Section 66.1105(2)(e) of Wisconsin Statutes, which the City of Oshkosh may further limit on a project by project basis. The following are typical eligible costs. 1. Capital costs, including actual costs of: a. Construction of public works or improvements; b. Construction of new buildings, structures, and fixtures; c. Demolition, alteration, rehabilitation, repair or reconstruction of existing buildings, structures and fixtures, other than historic buildings and structures. d. Acquisition of equipment to service the district; e. Restoration of soil or groundwater affected by environmental pollution; and f. Clearing and grading of land. Real property assembly costs. Professional service costs (planning, architectural, engineering, and legal). 4. Relocation costs. 5. Environmental remediation. 6. Organizational costs (environmental and other studies, publication and notification costs). 7. Development Incentives in the form of loans or grants. Criteria for TIF Assistance: All of the following financial criteria must be met in order to be considered for TIF assistance. 1. Equity Requirement. Developers must provide a minimum 15% equity of total project costs. Projects that exceed the 15% equity requirement will be looked upon favorably by the City. Equity is defined as cash or un -leveraged value in land or prepaid costs attributable to the project. TIF shall not be used to supplant cash equity. 2. Maximum Increment Use. For loans, no more than 75% of the net present value of the tax increment generated by a private development shall be made available to the project. For "pay -go" supported projects up to 90% of the generated annual tax increment can be made available if a financial need is demonstrated and there are no other public infrastructure projects planned in the district. 3. Payback Period. Payback period for loans will match the amortization period but in no case will exceed the statutory life of the district. Preference will be given to projects with payback periods of 10 years or under. 4. TIF Cap. The total amount of TIF assistance should not exceed 25% of total project costs. This limitation may be waived if the project involves redevelopment of existing structures or the assembly and clearance of land upon which existing structures are located. 5. Self -Supporting Projects. Each project requesting TIF assistance should generate sufficient tax increment to cover the requested TIF assistance and a portion of any public infrastructure costs within the district. a. No increment from other private development projects within the district may be used to supplement another project's inability to generate sufficient tax increment to cover project costs. Land Assembly Cap. TIF assistance for land/property assembly costs will not be provided in an amount exceeding 10% of the fair market value of the land. The fair market value will be determined by an independent appraiser contracted by the City with cost of appraisal paid for by developer. 4 Page 38 Tax Incremental Financing Policy and Application Criteria for TIF Assistance continued from previous page... 7. Internal Rate of Return. The amount of assistance provided to a developer will be limited to the amount necessary to provide the developer a reasonable rate of return on investment in the project and the subject site. A developer's return on equity, return on cost or internal rate of return will be based on current market conditions as determined by the City or City's financial advisor. In no case shall the internal rate of return exceed 20%. 8. Taxable Increase. The project should result in an increase in taxable valuation of at least 20% upon project completion. Policy Criteria In addition to meeting all of the above financial criteria, projects must accumulate at least 50 points based on the following policy criteria. Points can range from 0 to the maximum shown below in each category: Criteria Maximum Points 1. Attracting, retaining or expanding businesses for the purpose of improving the City's economic base. 20 a. Documentation of employment or financial projections must be provided by the party making the request and will serve as the basis for the agreement. 2. Projects that directly implement specific recommendations of the City's strategic planning 10 documents such as the Comprehensive Plan, Downtown Action Plan, Riverwalk Plan, Vision Report, Consolidated Plan, Stormwater Plans, etc. 3. Projects involving retail development that is targeted to encourage an inflow of customers from outside the city that result in exported goods, or that provide services or fill retail markets that 5 are currently unavailable or underserved in the City. 4. Presence of extraordinary development/redevelopment costs such as: a. Remodeling/Rehabilitation/Demolition b. Environmental Remediation 20 c. Capital purchases d. Facility expansion e. Public infrastructure 5. Proposed employment potential. a. Number of new employees. b. Skill and education levels required for the jobs. c. Range of salary and compensation rates for the jobs as compared with the median income level for the community. 10 d. Cost of public assistance per job. e. Potential for executive relocation. 6. Enhance the streetscape and pedestrian experience. 5 7. Historic Preservation. Preservation/rehabilitation of a locally significant historic structure. 5 8. Provides direct benefit to distressed areas through blight elimination. 15 9. Quality of development and overall aesthetics (architectural, site design, landscaping, etc.) 5 beyond that which is minimally required by the Zoning Ordinance. 10. Higher standards of Building Design, Materials, and Energy Efficiency such as meeting 5 LEED certification, Energy Star, etc. Pacje 3 9 Tax Incremental Financing Policy and Application Process of TIF Approval: Tax Increment District creation requires following statutory prescribed timelines that include notification to the overlying taxing jurisdictions (i.e. public school district, technical college, county, city), property owners within the district, and published meeting notification in the newspaper. Ultimately the City's Plan Commission, Common Council, and Joint Review Board all must approve the TIF creation request. 1. A pre -application meeting is held between the developer and the City. 2. A Tax Incremental Financing Application is submitted by the developer to the City. 3. The City will review the Application and determine completeness and whether the proposed project is eligible under the City's policy and statutory requirements. 4. An analysis of the TIF Plan and financial proformas will be conducted by city staff and/or outside consultants. 5. Within ninety (90) days of receipt of a completed application staff will schedule a public hearing before the Plan Commission on the Project Plan and District Boundaries. If approved by the Plan Commission, the Project Plan and recommended boundaries will be sent to the Common Council for review. There is a minimum 14 day wait from the public hearing to Council review. 6. The Common Council may approve or deny the proposal to create the Tax Increment District. The Common Council may also adjust the boundaries (retraction only) of the proposed district from that which was recommended by the Plan Commission. If approved, the plan is forwarded to the Joint Review Board to make the final determination that the development will not proceed "but for" the use of TIF. 7. If approved, a Development Agreement is drafted and negotiated between the City and Developer. 8. Once general agreement has been reached on the terms of the Development Agreement, it will require approval by the Common Council. 9. Execution of the Development Agreement between the City and Developer. Structure for Tax Incremental Financing Assistance: 1. Tax Incremental Financing assistance will be provided by the City on a "pay -go" note method or via bond proceeds. Requests for up -front financing may be considered on a case-by-case basis if increment generation is sufficient to meet initial financing and debt service costs and is not the first dollars spent on a project. 2. For "pay -go" structured projects, the project owner shall agree to pay all other outstanding City of Oshkosh property tax bills prior to disbursement of any pay -go payments by the City. 3. No Mortgage Guarantees. The City will not provide mortgage guarantees. 4. Personal Guarantee. The City will require a personal guaranty for receiving up front TIF assistance. Amount and form shall be acceptable to the City. 5. The property owner shall agree not to protest to the Board of Review or Circuit Court the Assessor's determination of the property value for the properties for which the grant is requested. 0 Page 40 Tax Incremental Financing Policy and Application Structure for Tax Incremental Financing Assistance Continued from previous page... 6. The City will retain a maximum of 10% of any tax increment received from the project to reimburse for administrative costs. Until such time as the project generates positive tax increment, the City will charge an administrative fee to the developer to partially offset the cost of record keeping, report preparation, and accounting. 7. When the project is intended as a for -sale development (i.e., office, retail or residential condominiums), the developer must retain ownership of the overall project until final completion; provided, however, that individual condominium units may be sold as they are completed. For all other projects, the developer must retain ownership of the project at least long enough to complete it, to stabilize its occupancy, to establish the project management and to initiate payment of taxes based on the increased project value. 8. Projects receiving assistance will be subject to a "look back" provision. The look back mandates a developer to provide the City or its financial advisor with evidence of its annualized cumulative internal rate of return on the investment (IRR) at specified periods of time after project completion. The IRR shall be calculated with equity, revenues, and expenses in accord with generally accepted accounting principles. When the developer owns the subject property and rents space to tenants, supporting documentation shall include certified records of project costs and revenues including lease agreements and sales on a per square foot basis. If the records indicate that the developer has received a higher return on equity, a higher return on cost, or a higher internal rate of return than originally proposed to the City at the time of development agreement, the developer and the City may split, on a 50/50 basis, the increase above the originally projected rates of return. Terms of any split will be negotiated in a Development Agreement. When the subject property is a for -sale development and the IRRI cannot be completed, the developer is to provide financial data after the project is completed. This shall include a calculation of profit on total development costs minus the TIF assistance. If the financial records indicate that the developer has received a higher return on equity, a higher return on cost, or a higher internal rate of return than originally contemplated at the time of development agreement approval, the developer and the City may split, on a 50/50 basis, any increase at or above original projected rates of return. Terms of any split will be negotiated in a Development Agreement. 9. Exceptions to TIF Policy. The City reserves the right to amend, modify, or withdraw these policies or require additional statements or information as deemed necessary. Any party requesting waiver from the guidelines found herein or on any other forms provided for TIF assistance may do so on forms provided by the City with the burden being on the requestor to demonstrate that the exception to these policies is in the best interests of the City. Page 41 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: Annex 71, LLC, an Indiana limited liability company Mailing Address. 409 Massachusetts Ave., Suite 300, Indianapolis, IN 46204 Primary Contact #: Julie Elliott, General Counsel E-mail: Julie@annexstudentliving.com Attorney: Russ Reff - Reff, Baivier, Bermingham & Lim, S.C. Cell #: 317-708-0643 FAX #: 317-708-0643 Legal Entity: Individual(s) Joint Tenants Tenants in Common Corporation. LLC X Partnership Other If not a Wisconsin corporation/partnership/LLC, state where organized: Indiana 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: Mecca Development, LLC 409 Massachusetts Ave., Suite 300, Indianapolis, IN 46204 Kyle D. Bach, Managing Member 10% iintoo Oshkosh Annex LP Investor 90% 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: Have any of the applicants (including the principals of the corporation/partnership/LLC) ever been charged or convicted of a misdemeanor or felony? Yes X No If yes, please furnish details: Kyle D. Bach - public intoxication - 4 1/2 years ago 8 Page 42 Tax Incremental Financing Policy and Application Overall Project Summary and Objectives: The property consists of 5 acres located in the middle of Marion Road Redevelopment Area but is not included within the district. This property has been planned for redevelopment for several years and the Developer is seeking financial assistance to improve the property value and in turn the area surrounding area. Current and Proposed Uses: The property is currently occupied by several vacant industrial buildings the majority of which are not able to be occupied in their current state. The Developer proposes a 4 story multi -family facility marketed to students of University of Wisconsin Oshkosh and young professionals. Description of End Users: Based on the proposed use for the property, end users will include students of UW Oshkosh, young professionals and families renting apartments and living on site. Property Summary: Parcel/Land Area: 219815 SF Building Area: 142380 SF # of Dwelling Units: 140 # of Stories: 4 # of Parking Spaces: 249 Describe any zoning changes that will be needed: Urban Industrial to Urban Mixed Use - Planned Development Identify any other approvals, permits or licenses (i.e. Liquor License, Health Department, etc): Other than typical building and site permit approvals through the City of Oshkosh and WDNR, no other permits or licenses are anticipated. Describe briefly what the project will do for the property and neighborhood: The proposed development will bring construction jobs and permanent jobs to Oshkosh and provide value to a current dilapidated property. The development is consistent with the City's vision for the property and is consistent with the comprehensive plan. 0 Page 43 Tax Incremental Financing Policy and Application , Summary: Project Timetable Date Final Plan/Specification Preparation: June 1st, 2017 Bidding and Contracting: June 1st - July 15th, 2017 Firm Financing Approval: July 31st, 2017 Construction/Rehabilitation: August 2017 - July 2018 Landscaping/Site Work: August 2017 - July 2018 Occupancy/Lease Up: September 2017 - August 2018 Development Team Developer: Annex 71, LLC Architect: KTGY Surveyor: Martenson - Eisele Contractor: Annex Construction, LLC Other Members: Describe Team expertise and experience in developing similar projects: Annex has nearly 2,000 beds in various stages of operation in Indiana, Illinois and Ohio with several hundred more in development in Indiana, Ohio, Kentucky, Michigan and Missouri. Other current Team projects in development: Annex 41 - Terre Haute, IN , Annex on 10th - Indianapolis, IN, Annex of Battle Creek, Battle Creek, MI, Annex 56, Warrensburg, MO Financial ability of the applicant to complete the project: The Developer will provide letters from lenders and investors upon request from the City. Full and part-time jobs to be created by the proposed project including estimated salary: Information to be provided once plans are finalized. 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 Lust be valued assuming that the highest and best use is the proposed use. 10 Page 44 Tax Incremental Financing Policy and Application Sources and Uses of Funds Identify the sources of funds used to finance the project. Typical sources include equity, lender financing, mezzanine financing, government financing, other anticipated types of public assistance, and any other types or methods of financing. Uses of Funds Amount ($) $ per SF of Building Area Land Acquisition: $500,000 Demolition: $450,000 Environmental Remediation: $727,000 Site Clearance and Preparation: $1,403,230 Soft Costs/ Fees: $3,378,100 Soft Cost Contingency: $600,000 Hard Construction Costs: $11,049,770 Total Project Costs: $18,108,100 Sources of Funds % of total project costs Equity Developer Equity: $ 3,831,682 21.2 Other Equity:( ) $ % Total Equity: $3,831,682 Loans Rate Term Construction Financing: $ 11,770,265 4.25 % 36 mos. Permanent Financing: $ 0 % yrs, 65.0 TIF Assistance $ 2,506,153 13.8 Other: ( ) $ % Total Sources of Funds $ 18,108,100 100% Financing Source Amount Equity: Loans 1: 2: 3: 4: Terms: Years/Interest 11 Page 45 Contact Information Tax Incremental Financing Policy and Application Detailed Pro Forma (must correspond to line items for Uses of Funds on previous page) Land Acquisition $ 500,000 Demolition $ 450,000 Site Clearance and Preparation Infrastructure $ 924,730 Utilities/removal $ 0 Utilities/relocation $ 0 Utilities/installation $ 203,000 Hazardous Materials Removal $ 0 Other( GC, OH/P, contingency ) $ 275,500 Total Site Clearance and Preparation Soft Costs/Fees Project Management ( %) $ General Contractor ( %) $ 248,000 Architect/Engineer (_%) $ 560,000 Developer Fee (_%) $ 700,000 Appraisal $ 6,000 Soil Testing $10,420 Market Study $10,000 Legal/Accounting $ 95,000 Insurance $ 47,005 Title/Recording/Transfer $ 50,000 Building Permit $ 58,925 Mortgage Fees $108,000 Construction Interest $ 500,000 Commissions $ 0 Marketing $ 285,000 Real Estate Taxes $10,000 Other Taxes $ 0 Other ( Signage/Technology ) $ 70,000 Other (Misc ) $ 619,750 Sub -total Soft Costs/Fees $ 3,378,100 Soft Cost Contingency $ 600,000 12 Page 46 Tax Incremental Financing Policy and Application Pro Forma Income and Expense Schedule Applicants whose projects involve the rental of commercial, retail, industrial, or living units must submit project pro formas that identify income and expense projections on an annual basis for a minimum five-year to a maximum eleven -year period. If you expect a reversion of the asset after a holding period please include that in your pro forma as well. Please check with city staff to determine the time period needed for the pro forma. Identify all assumptions (such as absorption, vacancies, debt service, operational costs, etc.) that serve as the basis for the pro formas. Two sets of pro formas are to be submitted. The first set should show the project without TIF assistance and the second set with TIF assistance. For owner -occupied industrial and commercial projects, detailed financial information must be presented that supports the need for financial assistance (see below). Analysis of Financial Need Each application must include financial analyses that demonstrate the need for TIF assistance. Two analyses must be submitted: one WITHOUT TIF assistance and one WITH TIF assistance. The applicant must indicate the minimum return or profit the applicant needs to proceed with the project and rationale for this minimum return or profit. The analyses will necessarily differ according to the type of project that is be- ing developed. Rental Property: For projects involving rental of space by the developer to tenants (tenants include offices, retail stores, industrial companies, and households), an internal rate of return on equity must be computed with and without TIF assistance based on the pro forma of income and expense prepared for the Income and Expense Schedule below. The reversion at the end of the ten-year holding period must be based on the capitalized 11th year net operating income. The reversionary value is then added to the 10th year cash flow before discounting to present value. State all assumptions to the analyses. For Sale Residential: Show profit as a percent of project cost (minus developer fee and overhead and minus sales commissions and closing costs, which should be subtracted from gross sales revenue). Other measure of profitability may be submitted, such as profit as a percent of sales revenue. Mixed Use Commercial / For -Sale Residential: Provide either separate analyses for each component of the project or include in the revenue sources for the for -sale portion, the sale value of the commercial component based on the net operating income of the commercial space at stabilization. Indicate how the sale value was derived. Owner -Occupied Commercial: For projects, such as "big -box" retail projects, provide copies of the analyses that the company needs to meet or exceed the company's minimum investment threshold(s) for proceeding with the project. Competitive Projects: In instances where the City is competing with other jurisdictions for the project (e.g., corporate headquarters, new manufacturing plant), present detailed analyses that demonstrate the capital and operating cost differential between the proposed location(s) in Oshkosh and locations that are seriously being considered by the applicant. 13 Page 47 Tax Incremental Financing Policy and Application Revenue Projections - Rental Project 14 Page 48 Year 2 >>Year 11 $ 2,176,440 $ 2,601,047 $ 990,375 $ 1,179,860 $ 0 $ 12,395 $ 274,716 $ 402,162 Year 1 Income rent per sf (or avg.) $ Commercial Rent $ Commercial Expense Recoveries $_ Residential Rent $ 2,176,440 Other Revenue ( ) $ 48,360 Gross Potential Income $ 2,224,800 Commercial Vacancy % $ Residential Vacancy % $ 544,110 Effective Gross Income (EGI) $1,680,690 Expenses Maintenance & Repairs $ Real Estate Taxes $ Insurance $ Management Fee $ Professional Fees $ Other Expense ( ) $ Other Expense ( ) $ Total Expenses $ 958,176 Net Operating Income (NOI) $ 722,514 Capital Expenses (reserves, tenant improvements, commissions) $ 0 Debt Service $ 566,670 Net Cash Flow (before depreciation) $155,844 Reversion in Year 10 Year 11 NOI before Debt & Capital Expenses $1,179,860 Capitalization Rate 7.00 % Gross Reversion $ 16,855,143 14 Page 48 Year 2 >>Year 11 $ 2,176,440 $ 2,601,047 $ 990,375 $ 1,179,860 $ 0 $ 12,395 $ 274,716 $ 402,162 Tax Incremental Financing Policy and Application Revenue Projects - For -Sale Project Gross Sales Revenue Housing Units Unit Type* Number Price/Unit Total Housing Sales: *affordable units if any Housing Unit Upgrades: Commercial Space Unit Type Size-sf Price per sf Total Commercial Sales: Total Gross Sales Revenue Cost of Sales Commissions % $ Marketing % $ Closing % $ Other Costs ( ) % $ Total Costs of Sales % Net Sales Revenue 15 Page 49 Tax Incremental Financing Policy and Application Summary Letter Provide a summary of the project in the form of a letter addressed to the City Manager. The letter should not exceed two (2) pages in length and should include only the following essential information about the project: • Description of site or building • Current and proposed uses • Description of end users • Project start and end dates • Profitability • Description of public benefits, including job creation. • Overview of private -sector financing • Amount of TIF assistance requested • Summary of increment projections • Name of developer and owner • Total development costs • Statement regarding why TIF is essential and why the "but for" provision will be met. Note: In the "but for" discussion you must clearly describe why TIF is needed to help this project and why the project will not/cannot proceed without such support. Failure to clearly provide the "but for" explanation will delay action on your application. Project Narrative Provide an in-depth overview of the project in narrative format. The narrative must include a description of the following aspects of the project: • Current condition of the site and historical overview that includes the size and condition of any existing structures, environmental conditions, and past uses of the site. • Proposed use(s) of project (e.g. industrial, commercial, retail, office, residential for sale or for rental, senior housing, etc.) • Construction information about the project including: size of any existing structure to be demolished or rehabbed; size of any new construction: types of construction materials (structural and finish); delineation of square foot allocation by use; total number and individual square footage of residential units: type of residential units (e.g. for -sale, rental, condominium, single-family, etc); number of affordable residential units; number and type of parking spaces; and construction phasing. • If in an existing TID or redevelopment area, confirm that this project is consistent with the goals and objectives in the Project or Redevelopment Plan. • A summary of the proposed "green" features to be included in the project. All projects that receive TIF assistance are encouraged to include environmentally friendly features. 16 Page 50 Tax Incremental Financing Policy and Application Filing Requirements You must provide all of the following items with your signed application: Notes 1. Fee: An application fee of I% of the requested TIF assistance or $10,000, whichever is greater. This fee is to cover City costs associated with evaluating the TIF application and does not cover the use of outside consultants, which if required will be paid for by the applicant. Make your check payable to the City of Oshkosh. 2. Site Maps: Provide a map that shows the location of the site. Also provide a map that focuses on the project and its immediate surroundings. Both maps should be no larger than 11x17 inches. Larger maps will be required for projects presented to the Plan Commission, Redevelopment Authority, or Common Council. 3. Project Renderings: Provide preliminary architectural drawings, plans and renderings for the project. These drawings should be no larger than 11x17 inches. Larger maps will be required for projects presented to the Plan Commission, Redevelopment Authority, or Common Council. The City charges an administrative fee of 5% of the annual tax increment revenue. If the project requires planning and zoning approvals, you must make these applications concurrent with this request. Agreement I, by signing this application, agree to the following: L I have read and will abide by all the requirements of the City for Tax Incremental Financing. 2. The information submitted is correct. 3.1 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. 5. 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 Date,.. 3 ` 17 Page 51 0-YEAR PROFORMA WITH TIF FUNDING Page 52 Annex Student Living ® Units 140 St alxlHzed LUirnlleern^.fired Yikflld 557% a ® Beds 310 Projected Investor IRR 10.95% Sources and Uses Gross Residential SF 140,000 Net Residential RSF 112,000 Gross Retail SF 0 Total GSF 140,000 Sources/Uses $/unit $/bed $/gsf $/nrsf Primary Debt 65.0% 11,770,265 84,073 37,969 $84.07 $105.09 Investor Equity 21.2% 3,831,682 27,369 12,360 $27.37 $34.21 Y TIF Note 13.8% 2,506,153 17,901 8,084 $17.90 $22.38 Total Sources 18,108,100 129,344 58,413 $129.34 $161.68 Acquisition Costs (Land/Buildings) x Land/Building Purchase ($) 500,000 3,571 1,613 $3.57 $4.46 x Earnest Money Application ($) (1,o,Q ooY (71.) (72) ({,o cv� ({UQY.o,°Y x Other Acquisition Costs ($) 10,000 71 32 $0.07 $0.09 Total Land Costs 500,000 3,571 1,613 $3.57 $4.46 Hard Costs Residential Costs Construction Costs - Phase 1 ($) 10,249,770 73,213 33,064 $73.21 $91.52 Site Costs ($) 1,403,230 10,023 4,527 $10.02 $12.53 Demolition Costs ($) 450,000 3,214 1,452 $3.21 $4.02 Clubhouse ($) 350,000 2,500 1,129 $2.50 $3.13 Environmental Contingency ($) 727,000 5,193 2,345 $5.19 $6.49 Contractor Construction Contingency 150,000 1,071 484 $1.07 $1.34 Owner Construction Contingency (% of Costs) 2.93% 300,000 2,143 968 $2.14 $2.68 Total Residential Hard Costs 13,630,000 97,357 43,968 $97.36 $121.70 Due Diligence x Phase IESA 2,200 16 7 $0.02 $0.02 x Phase II ESA 10,000 71 32 $0.07 $0.09 x Geotechnical Analysis / Capital Needs Assess. 10,420 74 34 $0.07 $0.09 x Survey 12,700 91 41 $0.09 $0.11 x Appraisal 6,000 43 19 $0.04 $0.05 x Market Study 10,000 71 32 $0.07 $0.09 x Economic Impact Study 3,500 25 11 $0.03 $0.03 x Real Estate Tax Assessmenet 750 5 2 $0.01 $0.01 x Earnest Money 10,000 71 32 $0.07 $0.09 x Due Diligence Miscellaneous 10,100 72 33 $0.07 $0.09 Total Due Diligence 75,670 541 244 $0.54 $0.68 Soft Costs x Legal/Professional- sponsor 50,000 357 161 $0.36 $0.45 x Legal/Professional - zoning/land use 15,000 107 48 $0.11 $0.13 x Legal/Professional - economic incentives 15,000 107 48 $0.11 $0.13 x Legal/Professional - lender 15,000 107 48 $0.11 $0.13 x Financing Costs/Bank Fees 0.92% 108,000 771 348 $0.77 $0.96 x iintoo Fee 1.12% 203,000 1,450 655 $1.45 $1.81 Capitalized Construction Interest 3.67% 500,000 3,571 1,613 $3.57 $4.46 TV Expense 56,000 400 181 $0.40 $0.50 x Utility & Misc. Impact Fees 56,500 404 182 $0.40 $0.50 x Permits Fees 58,925 421 190 $0.42 $0.53 Unit Furniture 403,000 2,879 1,300 $2.88 $3.60 Other Consultants 100,000 714 323 $0.71 $0.89 x Architect/MEP -SC-CD 400,000 2,857 1,290 $2.86 $3.57 x Civil Engineering 40,000 286 129 $0.29 $0.36 x Interior Design 20,000 143 65 $0.14 $0.18 Art & Design 10,000 71 32 $0.07 $0.09 Insurance (builders risk/GL) $ 0.345 47,005 336 152 $0.34 $0.42 x Real Estate/Transfer Taxes 10,000 71 32 $0.07 $0.09 x Closing Fees 50,000 357 161 $0.36 $0.45 x Development/Acquisition Fee 3.9% 700,000 5,000 2,258 $5.00 $6.25 Developer Overhead 0.4% 75,000 536 242 $0.54 $0.67 Construction Inspections 15,000 107 48 $0.11 $0.13 Development Contingency 2.8% 500,000 3,571 1,613 $80.00 $4.46 Soft Costs/Pre-Development Contingency 0.6% 100,000 714 323 $0.71 $0.89 Technology 50,000 357 161 $0.36 $0.45 Hard Scape, Signage 20,000 143 65 $0.14 $0.18 Pre -Opening Leasing/Marketing 275,000 1,964 887 $1.96 $2.46 Pre -Opening Corporate Travel 10,000 71 32 $0.07 $0.09 Total Soft Costs 3,902,430 27,875 12,588 $104.30 $34.84 Total Uses 18,108,100 129,344 58,413 $129.34 $161.68 (x) represents line item to be funded at close Page 53 Confidential Annex St.,ddnt Living Annex 71- Oshkosh 0 Total Investment 722,514 990,375 1,009,800 18,108,100 1,049,824 1,070,438 1,091,464 1,112,911 1,134,787 ( - )Payroll 474 Marion Rd., Oshkosh, WI 0 Total Equity Investment (1./2,712) (114,,'1.66) (L79,639) 3,831,682 ('L%,949) (1,90,633) (1,94,50'L) ('L'k3,39'L) (-)General &Administrative 0 Residential Proforma (51.,6674) Project Stabilization fiscal yrstart (.x4762) 2019 (a,91'1) (53,1,14) (59,277) (667467) (-) Advertising& Marketing 0 NOTEdl -h fl., are asn,-dF-1yda,dod--flows 31 -Jul -17 31 -Jul -18 (5(),333) 31 -Jul -19 31 -Jul -20 31 -Jul -21 31 -Jul -22 31 -Jul -23 31 -Jul -24 31 -Jul -25 31 -Jul -26 31 -Jul -27 (1.06,433) (108,"462} 2017 (117,947) 2018 2019 2020 2021 2022 2023 2024 2025 2026 (46,!f52 YearO Year1 (43,8/5) Year2 Year3 Year Years Year6 Year7 Year Year Year10 Beds Delivered 0 0 (6,975) 310 0 0 0 0 0 0 0 0 Beds Available 0 0 (1.6,343) 310 310 310 310 310 310 310 310 310 Economic Occupancy 0% 0% (351,955) 75% 93% 93% 93% 93% 93% 93% 93% 93% Beds Occupied 0 0 (5'1,0115) 233 288 288 288 288 288 288 288 288 Months open 0 0 (-) La ndscaping/Snow Removal 12 12 12 12 12 12 12 12 12 Blended Average Rent ($/bed/month) $585.06 $585.06 0 $585.06 $585.06 $596.77 $608.70 $620.88 $633.29 $645.96 $658.88 $672.06 Blended Average Rent ($/sf/month) $1.62 $1.62 0 $1.62 $1.62 $1.65 $1.68 $1.72 $1.75 $1.79 $1.82 $1.86 Rental Revenue 0 0 (58,3'74) (72942) (74,359) (7'1,304) (17,'773) (73,73'7) (3(E31.5) (31,330) (33,475) (-) Replacement Reserve Gross Potential Revenue 0 (33,7.10) 0 2,176,440 2,176,440 2,219,969 2,264,368 2,309,656 2,355,849 2,402,966 2,451,025 2,500,045 (-) Economic Vacancy 0 (:L,ff.33,6151.} 0 (544JAO) (1.51,:,.A) (1,55,393) (153,506) (L6L,676) (1.64,909) (L63,'X73) ('1,/L,.il7) (1,75,(E03) Collectible Rental Revenue 0 0 1,632,330 2,024,089 2,064,571 2,105,862 2,147,980 2,190,939 2,234,758 2,279,453 2,325,042 (+) Other Reve n ue(afte r vaca ncy) 0 0 48,360 59,966 59,966 59,966 59,966 59,966 59,966 59,966 59,966 (+) Net Retail Revenue 0 0 0 0 0 0 0 0 0 0 0 Total Operating Revenue 0 0 1,680,690 2,084,056 2,124,537 2,165,829 2,207,946 2,250,906 2,294,724 2,339,420 2,385,009 Operating Expenses 0 0 722,514 990,375 1,009,800 1,029,614 1,049,824 1,070,438 1,091,464 1,112,911 1,134,787 ( - )Payroll 0 0 ('1.@x1,325) (1./2,712) (114,,'1.66) (L79,639) (133,233) ('L%,949) (1,90,633) (1,94,50'L) ('L'k3,39'L) (-)General &Administrative 0 0 (51.,6674) ('2,Fi[;Fi} (55,639) (.x4762) (55,858) (a,91'1) (53,1,14) (59,277) (667467) (-) Advertising& Marketing 0 0 (43,379) (49,:;46) (5(),333) (51,340) (a7,3fx7) (a`5, 4:1.4) (.14.,432) (i.i,.x72) (a"683) (-)Electricity/Gas 0 0 (1.06,433) (108,"462} (11,0,733) (117,947) (115,206) (1115"11) (1'L9,361) 0 0 (-) Water/Sewer 0 0 (43,1.5;x) (46,!f52 (4.fi6, 9'73) (47,91.7) (43,8/5) (43,853) (50,350) (5'L,367) (52,904) (-)Cable/Internet 0 0 (51.,604) ('2,Fi3Fi} (15,639) (.x4762) (55,858) (6,975) (53,1,14) (59,277) (60467) (-)Trash Removal 0 0 (14,'11,4) (1.4,804) (1.'1,:'1.00) (1.x,40'7) 5-Y. (14x,0'74) (1.6,343) 6.15% 6.27% (-)Property Taxes 0 0 ('704'765) (31.1,526) (;51.3,776) (375'1.'47) (33 1,655) (333,233) (345,0.54) (351,955) (358,994) (-) Property/Liability Insurance 0 0 (13,54;L) (44,41.2) (45„x00) (44,,'704x) (41,1_5x0) (43,0'7'7) (49,034) ('i0, 0'1.'1) (5'1,0115) (-)Repairs&Maintenance 0 0 (;x77'47) (39,1597) (33,555) (;547'77) (34,4k1.1.) (iii, @x04k) 6' 3? (37,04.3) (37,735k) (-) La ndscaping/Snow Removal 0 0 (2'3,027) (29,F5ff15} (30,'700) (30,304) (;51,4'70) (32,(143) (32,639) (33,343) (34.,01)) (-)Unitturnover 0 0 (;x77'47) (39,1597) (33 SSii)(iii, @x043)(37,04.3) (37,7353) (-) Miscellaneous Expenses 0 0 (;x77'47) (39,11°37} (33551x) (347'77) (34,43'1.'1.) (iii,@x09) (3@x„57,1.) (37,04.3) (37,739) (-) Property Management Fee 0 0 (58,3'74) (72942) (74,359) (7'1,304) (17,'773) (73,73'7) (3(E31.5) (31,330) (33,475) (-) Replacement Reserve 0 0 (33,7.10) (38,750) (33, 7.10) (33,750) (33,750) (33, 7.10) (33, 7.10) (33, 7.10) (33,750) Total Operating Expenses 0 0 (9'.x3176) (:L,ff.33,6151.} ('1 114,737) (1 136'? L5) (1 1x31'73) (1 ,1.30,463) (1703,'760) (L'??6'509) (1.,2'10722) Net Operating Income 0 0 722,514 990,375 1,009,800 1,029,614 1,049,824 1,070,438 1,091,464 1,112,911 1,134,787 (-) Asset Management Fee 0 0 0 0 (10,623) (10,32'3) (11,040) (11,'715) (11,474) (1,L,697) (1, E'925) (-) Construction Debt Service 0 ('1.9'1.,427) ('.566,670) 0 0 0 0 0 0 0 0 (-)Mini-perm/Take-out Debt Service 0 0 0 (71.5,658) (1 L5,fx.13) (16.5,303) (16.5,303) (1(,.1,303) (lfx.1,303) (]6.5,303) (]6.5,303) (+)Tax Abatement/Incentive 0 0 0 0 0 0 0 0 0 0 0 Net Project Cash Flow 0 Q1.9 i'y 1b 155,844 274,716 283,519 253,481 273,481 293,880 314,687 335,911 357,559 DSCR n/a 0.00 1.28 I.E. 1.41 1.35 1.37 1.40 1.43 1.45 1.48 Development Yidd 0.00% 0.00% 3. Y. 5.47% 5.58% 5-Y. 5-Y. 5.91Y. 6.03% 6.15% 6.27% Property Val" 6.50% 0 11,115,605 15,236,536 15,535,384 15,840,210 16,151,131 16,468,272 16,791,755 17,121,708 17,458,259 17,801,542 Pot -W Loan A-, t lbaced on LN) .-Y. 0 8,892,484 12,189,229 12,428,307 12,672,168 12,920,905 13,174,617 13,433,404 13,697,366 13,966,608 14,241,234 Equi W Cash on Cash -5.00% 4.07% 7.17% 7.40% 6.62% 7.14% 7.67% 8.21% 8.77% 9.33% Confid-W Page 54 Annex Sh,dent Living Noce au ash Flows area ,-d esai y-eod -- flows 31 -Jul -17 31 -Jul -18 31 -Jul -19 31 -Jul -20 31 -Jul -21 31 -Jul -22 31 -Jul -23 31 -Jul -24 31 -Jul -25 31 -Jul -26 31 -Jul -27 promote 25% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 75% Year O Year 1 Year 2 Year 3 Year 4 Years Year 6 Year? Year B Year 9 Year 10 Capitalized Interest begin balance 500,000 500,000 308,573 308,573 308,573 0 0 0 0 0 0 Capitalized Interest expense $0 0 ('L'TL,427) 0 0 0 0 0 0 0 0 0 Capitalized Interest distribution upon refi/sale #NUMI 0 0 0 0(3(7&,'.573) 0 0 0 0 0 0 0 Capitalized Interest end balance 2026 500,000 308,573 308,573 308,573 0 0 0 0 0 0 0 Net Project Cash Flow 2027 0 0 155,844 274,716 283,519 253,481 273,481 293,880 314,687 335,911 357,559 Project Capinterst/Refinance/Sale CF 7.00% 0 0 0 0 806,950 0 0 0 0 0 5,514,947 Total Cash Flow 2.00% 0 0 155,844 274,716 1,090,469 253,481 273,481 293,880 314,687 335,911 5,872,506 IlinvOsror C:a!sdhflowv 16,199,404 10.96% 13% p,ffm,GvB 0 155,844 274,716 1,090,469 253,481 273,481 293,880 314,687 335,911 5,872,506 lst tier investor split 75% 0 0 0 0 0 0 0 0 0 0 0 10.96% 25% p,ffm,GvB 0 155,844 274,716 1,090,469 253,481 273,481 293,880 314,687 335,911 5,872,506 2nd tier investor split 25% 0 0 0 0 0 0 0 0 0 0 0 Total Investor Cashflow 10.95% p,ffm,GvB 0 155,844 274,716 1,090,469 253,481 273,481 293,880 314,687 335,911 5,872,506 Investor NPV (at 1091.) $671,936 ('L8,'Em, 1(7()) 0 722,514 990,375 1,009,800 1,029,614 1,049,824 1,070,438 1,091,464 1,112,911 17,334,190 Investor Equity 100.0% (3,83'L, 682) 0 155,844 274,716 1,090,469 253,481 273,481 293,880 314,687 335,911 5,872,506 Sponsor Eounv 0.0% 0 0 0 0 0 0 0 0 0 0 0 Spon-ir C:a!sdhfl owv promote 25% 0 0 0 0 0 0 0 0 0 0 75% 0 0 0 0 0 0 0 0 0 0 Total Sponsor Promote Cashflow 0 0 0 0 0 0 0 0 0 0 0 Sponsor NPV (at 1091o) $0 Total Sponsor Cashflow #NUMI 0 0 0 0 0 0 0 0 0 0 0 Sale Year 2026 Exit Year NOI Projection 2027 1,157,100 Valuation 7.00% 16,530,004 (-)Cost of Sale 2.00% (334,644) Net Sale Proceeds 16,199,404 (-) Loan & Equity Payoff (1,4,684,4!56) (-) Mezzanine Participation of Exit 0 Distributable Excess Sale Proceeds 5,514,947 PBTCF- Residential 0 0 722,514 990,375 1,009,800 1,029,614 1,049,824 1,070,438 1,091,464 1,112,911 1,134,787 Development Cost/Sale Proceeds ('L8,'Em, 1(7()) 0 0 0 0 0 0 0 0 0 16,199,404 Total Project Cash Flow ('L8,'Em, 1(7()) 0 722,514 990,375 1,009,800 1,029,614 1,049,824 1,070,438 1,091,464 1,112,911 17,334,190 Unlevered IRR 4.06% EBTCF -Residential 0 0 155,844 274,716 283,519 253,481 273,481 293,880 314,687 335,911 357,559 Equity Contribution/Sale Proceeds (3,83'L, 682) 0 0 0 806,950 0 0 0 0 0 5,514,947 Total Project Cash Flow (3,83'L, 682) 0 155,844 274,716 1,090,469 253,481 273,481 293,880 314,687 335,911 5,872,506 Levered IRR 10.96% coofideooai Page 55 0-YEAR PROFORMA WITHOUT TIF FUNDING Page 56 Annex Student Living ® Units 140 St alxlHzed LUirnlleern^.fired Nikflld 557% a ® Beds 310 Projected Investor IRR 4.43% Sources and Uses Gross Residential SF 140,000 Net Residential RSF 112,000 Gross Retail SF 0 Total GSF 140,000 Sources/Uses $/unit $/bed $/gsf $/nrsf Primary Debt 65.0% 11,770,265 84,073 37,969 $84.07 $105.09 Investor Equity 35.0% 6,337,835 45,270 20,445 $45.27 $56.59 N TIF Note 0.0% 0 0 0 $0.00 $0.00 Total Sources 18,108,100 129,344 58,413 $129.34 $161.68 Acquisition Costs (Land/Buildings) x Land/Building Purchase ($) 500,000 3,571 1,613 $3.57 $4.46 x Earnest Money Application ($) (1,o,Q ooY (71.) (72) ({,o cv� ({UQY.o,°Y x Other Acquisition Costs ($) 10,000 71 32 $0.07 $0.09 Total Land Costs 500,000 3,571 1,613 $3.57 $4.46 Hard Costs Residential Costs Construction Costs - Phase 1 ($) 10,249,770 73,213 33,064 $73.21 $91.52 Site Costs ($) 1,403,230 10,023 4,527 $10.02 $12.53 Demolition Costs ($) 450,000 3,214 1,452 $3.21 $4.02 Clubhouse ($) 350,000 2,500 1,129 $2.50 $3.13 Environmental Contingency ($) 727,000 5,193 2,345 $5.19 $6.49 Contractor Construction Contingency 150,000 1,071 484 $1.07 $1.34 Owner Construction Contingency (% of Costs) 2.93% 300,000 2,143 968 $2.14 $2.68 Total Residential Hard Costs 13,630,000 97,357 43,968 $97.36 $121.70 Due Diligence x Phase IESA 2,200 16 7 $0.02 $0.02 x Phase II ESA 10,000 71 32 $0.07 $0.09 x Geotechnical Analysis / Capital Needs Assess. 10,420 74 34 $0.07 $0.09 x Survey 12,700 91 41 $0.09 $0.11 x Appraisal 6,000 43 19 $0.04 $0.05 x Market Study 10,000 71 32 $0.07 $0.09 x Economic Impact Study 3,500 25 11 $0.03 $0.03 x Real Estate Tax Assessmenet 750 5 2 $0.01 $0.01 x Earnest Money 10,000 71 32 $0.07 $0.09 x Due Diligence Miscellaneous 10,100 72 33 $0.07 $0.09 Total Due Diligence 75,670 541 244 $0.54 $0.68 Soft Costs x Legal/Professional- sponsor 50,000 357 161 $0.36 $0.45 x Legal/Professional - zoning/land use 15,000 107 48 $0.11 $0.13 x Legal/Professional - economic incentives 15,000 107 48 $0.11 $0.13 x Legal/Professional - lender 15,000 107 48 $0.11 $0.13 x Financing Costs/Bank Fees 0.92% 108,000 771 348 $0.77 $0.96 x iintoo Fee 1.12% 203,000 1,450 655 $1.45 $1.81 Capitalized Construction Interest 3.67% 500,000 3,571 1,613 $3.57 $4.46 TV Expense 56,000 400 181 $0.40 $0.50 x Utility & Misc. Impact Fees 56,500 404 182 $0.40 $0.50 x Permits Fees 58,925 421 190 $0.42 $0.53 Unit Furniture 403,000 2,879 1,300 $2.88 $3.60 Other Consultants 100,000 714 323 $0.71 $0.89 x Architect/MEP -SC-CD 400,000 2,857 1,290 $2.86 $3.57 x Civil Engineering 40,000 286 129 $0.29 $0.36 x Interior Design 20,000 143 65 $0.14 $0.18 Art & Design 10,000 71 32 $0.07 $0.09 Insurance (builders risk/GL) $ 0.345 47,005 336 152 $0.34 $0.42 x Real Estate/Transfer Taxes 10,000 71 32 $0.07 $0.09 x Closing Fees 50,000 357 161 $0.36 $0.45 x Development/Acquisition Fee 3.9% 700,000 5,000 2,258 $5.00 $6.25 Developer Overhead 0.4% 75,000 536 242 $0.54 $0.67 Construction Inspections 15,000 107 48 $0.11 $0.13 Development Contingency 2.8% 500,000 3,571 1,613 $80.00 $4.46 Soft Costs/Pre-Development Contingency 0.6% 100,000 714 323 $0.71 $0.89 Technology 50,000 357 161 $0.36 $0.45 Hard Scape, Signage 20,000 143 65 $0.14 $0.18 Pre -Opening Leasing/Marketing 275,000 1,964 887 $1.96 $2.46 Pre -Opening Corporate Travel 10,000 71 32 $0.07 $0.09 Total Soft Costs 3,902,430 27,875 12,588 $104.30 $34.84 Total Uses 18,108,100 129,344 58,413 $129.34 $161.68 (x) represents line item to be funded at close Page 57 Confidential Annex St.,ddnt Living Annex 71- Oshkosh 0 Total Investment 722,514 990,375 1,009,800 18,108,100 1,049,824 1,070,438 1,091,464 1,112,911 1,134,787 ( - )Payroll 474 Marion Rd., Oshkosh, WI 0 Total Equity Investment (1./2,712) (116,'1.66) (L79,639) 6,337,835 ('L%,949) (1,90,633) (1,94,50'L) ('L'k3,39'L) (-)General &Administrative 0 Residential Proforma (51.,6674) Project Stabilization fiscal yrstart (.x4762) 2019 (a,91'1) (53,1,14) (59,277) (667467) (-) Advertising& Marketing 0 NOTEdl -h fl., are asn,-dF-1yda,dod--flows 31 -Jul -17 31 -Jul -18 (5(),333) 31 -Jul -19 31 -Jul -20 31 -Jul -21 31 -Jul -22 31 -Jul -23 31 -Jul -24 31 -Jul -25 31 -Jul -26 31 -Jul -27 (1.06,433) (108,"462} 2017 (117,947) 2018 2019 2020 2021 2022 2023 2024 2025 2026 (46,!f52 YearO Year1 (43,8/5) Year2 Year3 Year Years Year6 Year7 Year Year Year10 Beds Delivered 0 0 (6,975) 310 0 0 0 0 0 0 0 0 Beds Available 0 0 (1.6,343) 310 310 310 310 310 310 310 310 310 Economic Occupancy 0% 0% (351,955) 75% 93% 93% 93% 93% 93% 93% 93% 93% Beds Occupied 0 0 (5'1,0115) 233 288 288 288 288 288 288 288 288 Months open 0 0 (-) La ndscaping/Snow Removal 12 12 12 12 12 12 12 12 12 Blended Average Rent ($/bed/month) $585.06 $585.06 0 $585.06 $585.06 $596.77 $608.70 $620.88 $633.29 $645.96 $658.88 $672.06 Blended Average Rent ($/sf/month) $1.62 $1.62 0 $1.62 $1.62 $1.65 $1.68 $1.72 $1.75 $1.79 $1.82 $1.86 Rental Revenue 0 0 (58,3'74) (72942) (74,359) (7'1,304) (17,'773) (73,73'7) (3(E31.5) (31,330) (33,475) (-) Replacement Reserve Gross Potential Revenue 0 (33,7.10) 0 2,176,440 2,176,440 2,219,969 2,264,368 2,309,656 2,355,849 2,402,966 2,451,025 2,500,045 (-) Economic Vacancy 0 (:L,ff.33,6151.} 0 (544JAO) (1.51,:,.A) (1,55,393) (153,506) (16'L,676) (1.64,909) (L63,'X73) ('1,/L,.il7) (1,75,(E03) Collectible Rental Revenue 0 0 1,632,330 2,024,089 2,064,571 2,105,862 2,147,980 2,190,939 2,234,758 2,279,453 2,325,042 (+) Other Reve n ue(afte r vaca ncy) 0 0 48,360 59,966 59,966 59,966 59,966 59,966 59,966 59,966 59,966 (+) Net Retail Revenue 0 0 0 0 0 0 0 0 0 0 0 Total Operating Revenue 0 0 1,680,690 2,084,056 2,124,537 2,165,829 2,207,946 2,250,906 2,294,724 2,339,420 2,385,009 Operating Expenses 0 0 722,514 990,375 1,009,800 1,029,614 1,049,824 1,070,438 1,091,464 1,112,911 1,134,787 ( - )Payroll 0 0 ('1.@x1,325) (1./2,712) (116,'1.66) (L79,639) (133,233) ('L%,949) (1,90,633) (1,94,50'L) ('L'k3,39'L) (-)General &Administrative 0 0 (51.,6674) ('2,Fi[;Fi} (55,639) (.x4762) (55,858) (a,91'1) (53,1,14) (59,277) (667467) (-) Advertising& Marketing 0 0 (43,379) (49,:;46) (5(),333) (51,340) (a7,3fx7) (a`5, 4:1.4) (.14.,432) (i.i,.x72) (a"683) (-)Electricity/Gas 0 0 (1.06,433) (108,"462} (11,0,733) (117,947) (115,206) (1115"11) (1'L9,361) 0 0 (-) Water/Sewer 0 0 (43,1.5;x) (46,!f52 (4.fi6, 9'73) (47,91.7) (43,8/5) (49,853) (50,350) (5'L,367) (52,904) (-)Cable/Internet 0 0 (51.,604) ('2,Fi3Fi} (15,639) (.x4762) (55,858) (6,975) (53,1,14) (59,277) (60467) (-)Trash Removal 0 0 (14,'11,4) (1.4,804) (1.'1,:'1.00) (1.x,40'7) 5-Y. (14x,0'74) (1.6,343) 6.15% 6-Y. (-)Property Taxes 0 0 ('704'765) (31.1,526) (;51.3,776) (375'1.'47) (33 1,655) (333,233) (345,0.54) (351,955) (358,994) (-) Property/Liability Insurance 0 0 (13,54;L) (44,41.2) (45„x00) (44,,'704x) (41,1_5x0) (43,0'7'7) (49,034) ('i0, 0'1.'1) (5'1,0115) (-)Repairs&Maintenance 0 0 (;x77'47) (39,1597) (33,555) (;547'77) (34,4k1.1.) (iii, @x04k) 6' 3? (37,04.3) (37,735k) (-) La ndscaping/Snow Removal 0 0 (2'3,027) (29,F5ff15} (30,'700) (30,304) (;51,4'70) (32,(143) (32,639) (33,343) (34.,01)) (-)Unitturnover 0 0 (;x77'47) (39,1597) (33 SSii)(iii, @x043)(37,04.3) (37,7353) (-) Miscellaneous Expenses 0 0 (;x77'47) (39,11°37} (33551x) (347'77) (34,43'1.'1.) (iii,@x09) (3@x„57,1.) (37,04.3) (37,739) (-) Property Management Fee 0 0 (58,3'74) (72942) (74,359) (7'1,304) (17,'773) (73,73'7) (3(E31.5) (31,330) (33,475) (-) Replacement Reserve 0 0 (33,7.10) (38,750) (33, 7.10) (33,750) (33,750) (33, 7.10) (33, 7.10) (33, 7.10) (33,750) Total Operating Expenses 0 0 (9'.x3176) (:L,ff.33,6151.} ('1 114,737) (1 136'? L5) (1 1x31'73) (1 ,1.30,463) (1703,'760) (L'??6'509) (1.,2'10722) Net Operating Income 0 0 722,514 990,375 1,009,800 1,029,614 1,049,824 1,070,438 1,091,464 1,112,911 1,134,787 (-) Asset Management Fee 0 0 0 0 (10,623) (10,32'3) (11,040) (11,'715) (11,474) (1,L,697) (1, E'925) (-) Construction Debt Service 0 ('12'L,'1, L6) (4.66,424) 0 0 0 0 0 0 0 0 (-)Mini-perm/Take-out Debt Service 0 0 0 (71.5,658) (1 L5,fx.13) (16.5,303) (16.5,303) (1(,.1,303) (lfx.1,303) (]6.5,303) (]6.5,303) (+)Tax Abatement/Incentive 0 0 0 0 0 0 0 0 0 0 0 Net Project Cash Flow 0 1, 11 256,090 274,716 283,519 253,481 273,481 293,880 314,687 335,911 357,559 DSCR n/a 0.00 1.55 I.E. 1.41 1.35 1.37 1.40 1.43 1.45 1.48 Development Yidd 0.00% 0.00% 3. Y. 5.47% 5.58% 5-Y. 5-Y. 5.91Y. 6.03% 6.15% 6-Y. Property Val" 6.50% 0 11,115,605 15,236,536 15,535,384 15,840,210 16,151,131 16,468,272 16,791,755 17,121,708 17,458,259 17,801,542 Pot -W Loan A-, t lbaced on LN) .-Y. 0 8,892,484 12,189,229 12,428,307 12,672,168 12,920,905 13,174,617 13,433,404 13,697,366 13,966,608 14,241,234 Equi W Cash on Cash -1.91% 4.04% 4.33% 4.47% 4.00% 4.32% 4.64% 4.97% 5.30% 5.64% Confid-W Page 58 Annex Sh,dent Living Noce au ash Flows area ,-desaiy- ,d -- flows 31 -Jul -17 31 -Jul -18 31 -Jul -19 31 -Jul -20 31 -Jul -21 31 -Jul -22 31 -Jul -23 31 -Jul -24 31 -Jul -25 31 -Jul -26 31 -Jul -27 promote 25% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 75% Year O Year 1 Year 2 Year 3 Year 4 Years Year 6 Year? Year B Year 9 Year 10 Capitalized Interest begin balance 500,000 500,000 378,884 378,884 378,884 0 0 0 0 0 0 Capitalized Interest expense $0 0 ('12'L,'1, 1,6) 0 0 0 0 0 0 0 0 0 Capitalized Interest distribution upon refi/sale #NUMI 0 0 0 0 (378,884) 0 0 0 0 0 0 Capitalized Interest end balance 2026 500,000 378,884 378,884 378,884 0 0 0 0 0 0 0 Net Project Cash Flow 2027 0 0 256,090 274,716 283,519 253,481 273,481 293,880 314,687 335,911 357,559 Project Capinterst/Refinance/Sale CF 7.00% 0 0 0 0 877,262 0 0 0 0 0 5,514,947 Total Cash Flow 2.00% 0 0 256,090 274,716 1,160,780 253,481 273,481 293,880 314,687 335,911 5,872,506 IlinvOsror C:a!sdhflowv 16,199,404 4.44% 13% Q6„331,ms3 0 256,090 274,716 1,160,780 253,481 273,481 293,880 314,687 335,911 5,872,506 lst tier investor split 75% 0 0 0 0 0 0 0 0 0 0 0 4.44% 25% Q6„331,ms3 0 256,090 274,716 1,160,780 253,481 273,481 293,880 314,687 335,911 5,872,506 2nd tier investor split 25% 0 0 0 0 0 0 0 0 0 0 0 Total Investor Cashflow 4.43% Q6„331,ms3 0 256,090 274,716 1,160,780 253,481 273,481 293,880 314,687 335,911 5,872,506 Investor NPV (at 1091.) ( '1,69(7,27'L) (E8, Em, 1(7()) 0 722,514 990,375 1,009,800 1,029,614 1,049,824 1,070,438 1,091,464 1,112,911 17,334,190 Investor Equity 100.0% (6,337,83'.5) 0 256,090 274,716 1,160,780 253,481 273,481 293,880 314,687 335,911 5,872,506 Sponsor Eounv 0.0% 0 0 0 0 0 0 0 0 0 0 0 Slpo n-ir C:a!sdhfl owv promote 25% 0 0 0 0 0 0 0 0 0 0 75% 0 0 0 0 0 0 0 0 0 0 Total Sponsor Promote Cashflow 0 0 0 0 0 0 0 0 0 0 0 Sponsor NPV (at 1091o) $0 Total Sponsor Cashflow #NUMI 0 0 0 0 0 0 0 0 0 0 0 Sale Year 2026 Exit Year NOI Projection 2027 1,157,100 Valuation 7.00% 16,530,004 (-)Cost of Sale 2.00% (338,688) Net Sale Proceeds 16,199,404 (-) Loan & Equity Payoff (1,7,684,4!56) (-) Mezzanine Participation of Exit 0 Distributable Excess Sale Proceeds 5,514,947 PBTCF- Residential 0 0 722,514 990,375 1,009,800 1,029,614 1,049,824 1,070,438 1,091,464 1,112,911 1,134,787 Development Cost/Sale Proceeds (E8, Em, 1(7()) 0 0 0 0 0 0 0 0 0 16,199,404 Total Project Cash Flow (E8, Em, 1(7()) 0 722,514 990,375 1,009,800 1,029,614 1,049,824 1,070,438 1,091,464 1,112,911 17,334,190 Unlevered IRR 4.06% EBTCF -Residential 0 0 256,090 274,716 283,519 253,481 273,481 293,880 314,687 335,911 357,559 Equity Contribution/Sale Proceeds (6,337,835) 0 0 0 877,262 0 0 0 0 0 5,514,947 Total Project Cash Flow (6,337,835) 0 256,090 274,716 1,160,780 253,481 273,481 293,880 314,687 335,911 5,872,506 Levered IRR 4.44% coofideooai Page 59 APPRAISAL (to be provided at a later date) Page 60 MARKET STUDY (Provided for informational purposes only — Landmark and Applicant shall not be liable for inaccuracies or omissions therein) Page 61 FEASIBILITY ANALYSIS: Annex 71— Oshkosh, WI 455 EPPS BRIDGE PARKWAY, ATHENS, GA 306061706.543.19101 LAN DMARKPROPERTIES.COM Page 62 Table of Contents: This Analysis has been prepared by Landmark Property Management, LLC. Contact: Jonathan Bove Vice President — Consulting Services 706-202-1837 455 Epps Bridge Parkway Building 100, Suite 201 Athens, GA30606 Page 64 Landmark Properties was engaged to perform a Feasibility Analysis of Annex 71 at the University of Wisconsin - Oshkosh Date of Site Visit Date of Market Analysis Dist. To Campus Delivery 011IMN0.11 =-0, V -5th of January 2017 1st of January 2017 .25 mi 2018 1114GAIINI Page 65 Property: - Subject site will be completed in Fall 2018. • The property is located only 1/4mile of the University of Wisconsin — Oshkosh campus. • The subject site is bordered by the Fox River to the SW and is in close proximity to a number of popular restaurants and bars frequented by UW -Oshkosh Students. • The planned development would be the first purpose-built off -campus student housing development serving students at University of Wisconsin - Oshkosh. • The typical Annex amenity set (that is to say, found at other Annex -developed assets) if utilized in Oshkosh, would create value with the target demographic and provide a competitive advantage to the traditional multifamily competitive rentals in the area. Page 66 ,r r According to recent Census ACS Data • Median Rents for occupied rental units in the city of Oshkosh increased from $659/mo in 2013 to $706/mo in 2014. * • During the same period, the Rental Vacancy Rate in Oshkosh dropped from 5.09% to 3.79% indicating a tightening in housing supply in the area.* Full-time Enrollment has dropped at University of Wisconsin — Oshkosh since hitting a peak of 9,590 in fall of 2011. Current total full-time enrollment (Fall 2016) is 8,555. • Undergraduate full-time enrollment has dropped from 9,426 to 8,341 during the same period The current Chancellor has committed to stopping the enrollment decline. • According to the Vice Chancellor for Enrollment Management growth of 1-3% per year is expected for the foreseeable future ** • Also according to Dr. Miller, "Between January 7th, 2016 and January 7th, 2017, there has been an increase in applications by 16.1 %. Those applications are specific to undergrads only (new Freshmen, not transfers)."*** • ACSCen Data provided by htto://www.de.tofnuabers.ma/rent/wismnsin/.shk.sh/ ** 16.17 -I ViChancellor for Enrollment Management, Bandon Miller ***1.10ce .17—Phone Ulo .p with Vice Chancellor for Enrollment Management, Bandon Miller Page 67 ,r r The proposed project has a capture rate of 5.7% of full-time students. • This is below the industry norm of 6-8%, which benefits the subject site. There are 4,500 designed beds on campus which are currently configured to house only 3,500 students. In the current configuration, 40% of full-time students can be housed on campus. • 500 beds in Fletcher hall are currently down for renovation, and 500 beds have been reconfigured for use for Conference and Event services.* * 1.11.17— Per ph on a conversation with Liz M-11, Assistant Director- Business Services a nd Programs Page 68 Market & University Analysis Section II Though FT enrollment has declined since 2011, the current Chancellor has made enrollment growth a top priority. In his Fall 2016 "Opening Day" address, the Chancellor said: "First I'd like to focus on enrollment. I am pleased that we are rapidly moving in the right direction to stop the decline in enrollment we have seen at the undergraduate level over the pastfew years. While I wish I could be standing in front of you, telling you we have stopped the decline going into this academic year, I can't... but what I can say is our investments in enrollment have been largely implemented, and will positively impact the upcoming recruitment year. • Vice Chancellor for Enrollment Management, Brandon Miller also projected a 1-3% enrollment increase for the foreseeable future when directly interviewed by Landmark on 1.6.17 Page 70 2010 2011 2012 2013 2014 2015 2016 A -19g Tdf[ T.1.1 E -1111-t '13,461 13,461 13519 L3,902 14,542 14;059 13,544 -148 (1,035) e 71.2% 058. 599% 383 540 (483) (515) 14 83 %CMonge 9,426 90% 94% 2.8% 4.6% -3.3% -3.7% 01% 0.6% Orudergrad.el 12,.232 12,.232 12,384 '12,623 13,309 12,710 12,075 -20% F115%f �,rreas e0 164 L64 152 239 585 (599) (635) -26 -152 %Cz, 13.3% 90% 12% 1.4% 54% -05% -5.0% -02% -13% Graduele 1,224 1,229 1,135 1,279 1,233 1,349 1,469 �,rreas e 0 (94) 1144 (46) 116 12040 240 %Change Q0% -75% 12'.7% -3'.6% 94% 89% 3.0% 1.95% Page 70 2010 2011 2012 2013 2014 2015 2016 Average Tat[ Tn1ai1 9,590 9,590 9,448 9,335 9,138 8,851 8,555 -148 (1,035) %FA -Brune 71.2% 712% 599% 671% 62.8% 63.0% 63.2% -3.9% F]:08%f Urvdergredua@e 9,426 9,426 9,294 9,157 8,956 8,648 8,341 -155 (1,085) %FA -Brune 771% 771% 730% 725% 673% 68:0% 691% -20% F115%f Gmdua@e 164 L64 L54 L78. 182 203 214 7 59 %FA-firune 13.3% 13.3% 13.6% 13-9% 14.6% 15.0% 146% 44% 305% Page 70 2010 2011 2012 2013 2014 2015 2016 Apph,ed 4 0 0 0 0 0 0 Ad.M@ d 0 0 0 0 0 0 0 Enralkd 1,840 1,844 1,840 1,747 1,749 1,572 i,501 %Ad-M.ed 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% %Enrn'•Ned 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Page 70 Page 71 FRESHMAN' ADMISSION ENROLLMENT 2,erx0000 20,000 5.0% 3, ti M 4.0% 1,600 15,000 m 3 3 3,400 3 '0 3.0% m 1,200 10,000 1,000 m 2.0% .. B00 5,000 S 1.0% 3° 600. 400 0 a 0.0% 200 Undergraduate Graduate 2032 ■ppptr3913 uumAdI IENRed 2016 Page 71 With an average of 2% annual FT growth UW— Oshkosh would be adding —275 Full- time Students each year By 2020 —Student enrollment would be over 14,500 which is 1000 more Full-time students as compared to fall 2016 13,544 -515 -3.66% 13,815 271 2.00% 14,091 276 2.00% 14,373 282 2.00% 14,660 287 2.00% 14,954 293 2.00% * 2% annual growth figure based on interview with Vice Chancellor of Enrollment Management where a 1-3% increase in enrollment was projected Page 72 U [IIIIIIIIIIIIJ!, OF s IWc0 , III SN OSHKOSH Market Survey Completed: January 5, 2017 tLANDMARK. JPROPERTIES 455 Epps Bridge P.,kw.y Suite 201 Athens, iftGA30606 P 706.543.1910 F706.543.1909 Page 73 University of Wisconsin - Oshkosh - Oshkosh, WI Market Capture 12/28/2016 ON -CAMPUS REQUIREMENT:!, red(f 11Fira shinrneirn and Soplhonrnoira s ruin:, irecgflired to Ilive on a•airnpuus 2016 13,544 -515 -3.66% -296 2016 N/A 2016 0 2017 13,815 271 2.00% 171 2017 0.00% 2017 0 2018 14,091 276 2.00% 175 2018 0.00% 2018 310 2019 14,373 282 2.00% 178 2019 0.00% 2019 310 2020 14,660 287 2.00% 182 2020 0.00% 2020 310 2021 14,954 293 2.00% 185 2021 0.00% 2021 310 2022 15,253 299 2.00% 189 2022 0.00% 2022 310 Delivery Year 2018 Freshman and Sophomore Live -On Requirement On -Campus design beds 4,500. Currently contig for 3,500 Data per UW -Oshkosh Office of Institutional research Enrollment 2010 Total Enrollment -Fall 2016 13,544 Undergraduate Enrollment- Fall2016 12,075 Undergrad Full Time 69.1% Full -Ti me Undergraduate - Fal 12016 8,341 Graduate Enrollment -Fall 2016 1,469 %Grad Full Time 14.6% Ful 1 -Ti me Graduate - Fa 11 2016 214 Total %Full Time 63.2% Total Full Time Enrollment 8,555 Projected Fu11-Ti me Growth to 2018 346 Total Projected FT Enrollment 2018 8,901 Current On -Campus Housing 3,500 Projected Univ Housing 0 Greek Housing 0 Commuters 0 Onl i ne Students 0 Off -Campus Demand 2018 5,401 %ofstudentsliving offcampus 39.9% Ca ptu re Rate 5.7% Beds Proposed 310: Notes 12,384 Freshman and Sophomore Live -On Requirement On -Campus design beds 4,500. Currently contig for 3,500 Data per UW -Oshkosh Office of Institutional research Enrollment 2010 2011 2012 2013 2014 2015 2016 Average Total Total Enrollment 13,461 13,461 13,519 13,902 14,542 14,059 13,544 -148 (1,035) Increase 71.2% 0 58 383 640 (483) (515) 14 83 %Change 9,426 0.0% 0.4% 2.8% 4.6% -3.3% -3.7% 0.1% 0.6% Undergraduate 12,232 12,232 12,384 12,623 13,309 12,710 12,075 -2.0% 11.51 Increase 164 0 152 239 686 (599) (635) -26 -157 %Change 13.3% 0.0% 1.2% 1.9% 5.4% -4.5% -5.0% -0.2% -1.3% Graduate 1,229 1,229 1,135 1,279 1,233 1,349 1,469 Increase 0 (94) 144 (46) 116 120 40 240 %Change 0.0% -7.6% 12.7% -3.6% 9.4% 8.9% 3.0% 19.5% Full -Time Enrollment 2010 2011 2012 2013 2014 2015 2016 Average Total Total 9,590 9,590 9,448 9,335 9,138 8,851 8,555 -148 (1,035) ull-time 71.2% 71.2% 69.9% 67.1% 62.8% 63.0% 63.2% -1.9% 10.8% Undergraduate 9,426 9,426 9,294 9,157 8,956 8,648 8,341 -155 (1,085) ull-time 77.1% 77.1% 75.0% 72.5% 67.3% 68.0% 69.1% -2.0% 11.51 Graduate 164 164 154 178 182 203 214 7 50 %full-time 13.3% 13.3% 13.6% 13.9% 14.8% 15.0% 14.6% 4.4% 30.5% Page 74 Assuming we include furniture, internet, cable, W/D, water/sewer/trash, and private BA Anthem Luxury Living 95% 0% Diff. Manager ACC Ma nagement Group 2x2 78 Dist. To Campus 0.90 mi l es 3x3 2 Delivery 2015 704 Units 80 20.6% Beds 162 615 Concord Place 98% 40% 1x1 15 Manager Alexander bishop 2x2 36 Dist.To Campus .3 mi l es 11.4% Delivery 2003 516 Units 57 11.4% Beds 93 Max Rent/SF Morgan Crossing 100% 50% 1x1 16 Manager Alexander Bishop 2x2 28 Dist.To Campus .3 mi l es 3x3 20 Delivery 2007 0.95 Units 68 79.3% Beds 126 Average Prelease: 26.3% Unit Type Max Rent Subject UW Rates Diff. Studio N/A 1x1 704 849 20.6% 2x2 615 699 13.7% 3x3 516 575 11.4% 4x4 516 575 11.4% Unit Type Max Rent/SF Subject Rent/5F Diff. 0x1 N/A N/A 1x1 0.95 1.70 79.3% 2x21.06 1.75 65.1% 3x3 1.14 1.92 67.6% 4x4 N/A 1.92 N/A 1,030 515 $1.06 1,170 390 $1.14 697 697 $0.93 950 475 $0.88 716 716 $0.95 1,002 501 $0.90 1,248 416 $1.04 RSF/BED $/SF 500 $1.70 400 $1.75 v $1.92 300 $1.92 Page 75 Rent Adjustements (1) Furniture prices are set at $25 per bedroom. (2) Washer/Dryer Is based on $40 per unit (3) Electric Is based on $30 per bed (4) Internet Is based on $30 per unit (5) Cable Is based on $30 per unit (6) Water/Sewer Is based on $15 per bedroom (7) Private bath Is based on $30 per bedroom N N N N Y N N N N N Spaces 162 Ratio: 100% Cost: $50 N N N N Y N N N N N Spaces 93 Ratio: 100% Cost: $50 N Y N N Y N N N Y N Spaces 126 Ratio: 100% Cost: $50 14 University of Wisconsin - Oshkosh - Oshkosh, WI On -Campus Housing 12/28/2016 Traditional Unit Layout Beds Semester Academic Yr 9 Month 12 Month Uti I ity cost 8 Parking 0 Other 9 Month 12 Month Not Named Double Room $2,110 $4,220 $469 $352 X X X-$10 X X $30 $20 $509 $392 Not Named Single Room $2,920 $5,840 $649 $487 X X X-$10 X X $30 x $669 $507 Taylor Hall Double Room $2,398 $4,796 $533 $400 X X X-$10 X X $30 $20 $573 $440 Ta for Hall Sin 9le Room $3,134 $6,268 $696 $522 X X X-$10 X X $30 x $716 $542 Suites Horizon Village 2BR Suite $3,060 $6,120 $680 $510 X X X-$10 X X $30 $20 $720 $550 Horizon Vila a 4BR Suite $3,190 $6,380 $709 $532 X X X-$10 X X $30 x $729 $552 .���EEEEEuuh Lot Spaces Price Availability On -Campus Premium Resident $268 Avg. housing cost $510 Regular Resident $193 Standard meal plan 250 Pa rki ng 38.5 Other 0 Total $799 Notes 1) Twelve month equivalent is based on Fall and Spri ng semesters divided by 12 months 2) Washer/Dryer is based on $40/unit 3) Kitchen is based on $20/bed 4) Private bath is based on $30/bed 5) Private bedroom is based on $20/bed 6) Electric is based on $30/bed 7) Water and sewer is based on $15/bed 8) Internet is based on $30/unit 9) Cable is based on $30/unit ** Standard Meal plan cost based on $1505/semester (middle level meal plan) Off -Campus Subject site 4 -bed rent 575 Uti I ity cost 8 Parking 0 Other 0 Total $583 Remainin for food $216 Page 76 IM jjlr /�i/ i�� , /�%i%% 4 7 WTIFT 17 CT-71MIRTIM0, MtYMMIMIT VIM Pipeline Report Development Pipeline Data * 2 multi -family projects totaling 196 units are in the planning phases. Both are across Fox River close to the regional airport. * They are not considered competitors due to their distance from campus 2016 to current (296) 296 5,191 0 5,055 97.4% G 2017 0 171 (171) 5,191 0 5,226 100.7% (D 2018 i 310 175 135 5,501 0 5,401 98.2% 2019 0 178 (178) 5,501 0 5,579 101.4% 2020 0 182 (182) 5,501 0 5,760 104.7% 2021 0 185 (185) 5,501 0 5,945 108.1% 2022 0 189 (189) 5,501 0 6,134 111.5% 2023 0 0 0 5,501 0 6,134 111.5% * Elizabeth Williams, Planning Services Division, City of Oshkosh WI M Page 78 Jniversity of Wisconsin — Oshkosh Market Survey — Student Questionnairt OW (),shkoslh 5uodem I lc.>cjsmA Quesriormair�,, 0 'l—I 11., o ........................................................................................... ........................ _ ................................................................................... . . . . ...... Page 79 Wheire woulId you pirefeir to Ive? 17.50% 15.00% 10.00% a 57.50% in On Campus Dorm um Off Campus Rental f louse mr.. CM Campus I raditional Apartment mi Off Campus Student Centric Summarized Results What siize uniit wound you The Itl ost Illrnteirest Iln? 10% in 1 x 1 um 2 x 2 1111 3 x 3 um4x4 �MMMMMMHMMM so in Yes um No -When do you start looking for housing for the following academic year? 82.5% of respondents said they start searching prior to Winter Break Page 80 Market Survey — Student Questionnaire Results Page 81 Subject Site Analysis Section III • The subject sit is located 1/4mile of the University of Wisconsin — Oshkosh campus. • All three competitive properties are located in the same area, with only slight distance variations to campus. • The planned development would be the first purpose-built student housing development serving UW- Oshkosh. • The typical Annex amenity set would create added value to the target demographic and would add a competitive advantage over competitive properties. • Based on the Student Survey results listed earlier 57% of respondents indicated the subject site was in a desirable location. • Survey Results also indicated that two popular college bars and four popular college restaurants are within clos walking distance to the subject site. The map on the following page shows the location. The close proximity of popular hangouts will add value to the property and give opportunity to co -vend marketing events. • Mahoney's Bar and Restaurant, a popular restaurant among young professionals and locals, is also a short wal away. This might add to the attractiveness of the property for other groups outside of students. • The most common complaints about the site consisted of it being too far to walk during winter weather conditio and that a supermarket was not close by. I Page 83 Page 85 • Location is only 1htly closer to campus than projected !' r • not an advantage. • Built and r' f to show strong indications of • aging. It still looksfrom •';. • Amenities includer fitness center on •• and an upstairs lounge with rooftop access. The managers informed us that amenity featuresare ri used. • Underground, heated parking is available for $50 per month • Morgan Crossing only utilizes traditional marketing methods — website, posting brochures on campus, occasional landlord day atschedules • The property's occupants are roughly 60% student. The remaining residents are young professional, recent grads and employees from downtown businesses. • Currently occupied at 100%, Preleased at 50% Page 86 Competitive Project: Concord PlaG-=,..,, • Concord Place's location is only slightly closer to campus than Anne. -I 71's projected site. The difference in location is not an advantage. • The property was built in 2003 and is starting to show strong indications of interior aging. It still looks new from the exterior. • There are no amenities. • Underground, heated parking r for $50 per month. • Concord Place only utilizes traditional marketing methods — website, posting brochures on campus, occasional landlord day at the University (when the University schedules one). • The property's occupants are roughly 80% student. The remaining residents are young professional, recent grads and employees from downtown businesses. • Currently occupied at 98%, Preleased at 40%. • Morgan Crossing and Concord Place have the same ownershiD/manaaement COMDanv. Page 87 Competitive Project: Anthem Luxury Living WTIM"Iff,'"IMS�301�3 •11 slight difference in location is not a disadvantage. The property was built in 2014. Amenities include a fitness center, courtyard with river view, conference/media room and additional storage per floor. Underground, heated parking is available for $50 per month. Anthem only utilizes traditional marketing methods — website and ILS. They do not directly market to students. The property's occupants are roughly 62% student. The remaining residents are young professional, recent grads and employees from downtown businesses. The only unoccupied units are income controlled units that were established by the tax credit received during development. Page 88 Competitive Project: Student Leasing TT'hile they are not purpose-built, Concord Place and I strategy to be more student -friendly given that their resident base is 60-80% student. Anthem currently leases in a conventional multi -family apartment fashion, allowing their current residents to provide a 60 -day notice. This shift to pre -leasing was a change made by Concord Place and Morgan Crossing management necessitated by the market after a few years operating conventionally. In interviews, the managers of these two properties predict that Anthem (which is newer to the market) will eventually make this change as well. Page 89 Assuming we include furniture, internet, cable, W/D, water/sewer/trash, and private BA Anthem Luxury Living 95% 0% Diff. Manager ACC Ma nagement Group 2x2 78 Dist. To Campus 0.90 mi l es 3x3 2 Delivery 2015 704 Units 80 20.6% Beds 162 615 Concord Place 98% 40% 1x1 15 Manager Alexander bishop 2x2 36 Dist.To Campus .3 mi l es 11.4% Delivery 2003 516 Units 57 11.4% Beds 93 Max Rent/SF Morgan Crossing 100% 50% 1x1 16 Manager Alexander Bishop 2x2 28 Dist.To Campus .3 mi l es 3x3 20 Delivery 2007 0.95 Units 68 79.3% Beds 126 Average Prelease: 26.3% Unit Type Max Rent Subject LAN Rates Diff. Studio N/A 1x1 704 849 20.6% 2x2 615 699 13.7% 3x3 516 575 11.4% 4x4 516 575 11.4% Unit Type Max Rent/SF Subject Rent/5F Diff. 0x1 N/A N/A 1x1 0.95 1.70 79.3% 2x21.06 1.75 65.1% 3x3 1.14 1.92 67.6% 4x4 N/A 1.92 N/A 1,030 515 $1.06 1,170 390 $1.14 697 697 $0.93 950 475 $0.88 716 716 $0.95 1,002 501 $0.90 1,248 416 $1.04 Page 90 Rent Adjustements (1) Furniture prices are set at $25 per bedroom. (2) Washer/Dryer Is based on $40 per unit (3) Electric Is based on $30 per bed (4) Internet Is based on $30 per unit (5) Cable Is based on $30 per unit (6) Water/Sewer Is based on $15 per bedroom (7) Private bath Is based on $30 per bedroom N N N N Y N N N N N Spaces 162 Ratio: 100% Cost: $50 N N N N Y N N N N N Spaces 93 Ratio: 100% Cost: $50 N Y N N Y N N N Y N Spaces 126 Ratio: 100% Cost: $50 ®' ^ All three competitive projects have amix ofstudent and non -student renters. ^ Displayed below are the max rental rates for each unit type adjusted for inclusions based onthe market survey ^ zx1 $roo ^ uxu $615 ^ axa $s1s^there are nozw4units present mthe competitive set ^ The three competitive properties surveyed lack amenities and are not purpose built for students. ^ Morgan Crossing and Concord Place, though they are not purpose built for students, have adjusted their leasing strategy topre-lease inastudent friendly manner. Anthem Luxury Living leases inaconventional manner. ^ Property locations are extremely similar and do not seem to affect occupancy percentages. ^ Each property only uses traditional marketing methods and are not effective a«reaching college students ^ The shadow market is a concern — the rental home business is extremely large and offers a much cheaper option. Many students are able tofind living arrangements between $25Oand $35O. ^ Price sensitivity was voiced by many students surveyed, however Landmark attributes some degree of sensitivity tothe fact that there ianopurpose built product inthe market tocompare against. Page 91 University of Wisconsin - Oshkosh - Oshkosh, WI On -Campus Housing 12/28/2016 Lot Spaces Price Availability Premi u no Res i dent $268 Regular Resident $193 Notes 1) Twelve month equivalent is based on Fall and Springsemesters divided by 12 months 2) Washer/Dryer is based on $40/unit 3) Kitchen is based on $20/bed 4) Private bath is based on $30/bed 5) Private bedroom is based on $20/bed 6) Electric is based on $30/bed 7) Waterand sewer is based on $15/bed 8) Internet is based on $30/unit 9) Cable is based on $30/unit ** Standard Meal plan cost based on $1505/semester (middle level meal plan) Subject Sitevs. Avg. On -Campus 106.20% Subject Sitevs. Horizon Village 98.93% On -Campus Avg. housing cost $510 Standard meal plan 250 Parking 38.5 Other Traditional Unit Layout Beds Semester Academic Yr 9 Month 12 Month 9 Month 12 Month Not Named Double Room $2,110 $4,220 $469 $352 X X X -$10 X X $30 $20 $509 $392 Not Named Single Room $2,920 $5,840 $649 $487 X X X -$10 X X $30 x $669 $507 Taylor Hall Double Room $2,398 $4,796 $533 $400 X X X-$10 X X $30 $20 $573 $440 Ta for Hall Sin Ie Room $6,268 $696 $522 X X X-$10 X X $30 x $716 $542 �. y$33,134 Suites Horizon Village 2BR Suite $3,060 $6,120 $680 $510 X X X -$10 X X $30 $20 $720 $550 Horizon Vila 4BR Suite $3,190 $6,380 $709 $532 X X X -$10 X X $30 x $729 $552 !e Lot Spaces Price Availability Premi u no Res i dent $268 Regular Resident $193 Notes 1) Twelve month equivalent is based on Fall and Springsemesters divided by 12 months 2) Washer/Dryer is based on $40/unit 3) Kitchen is based on $20/bed 4) Private bath is based on $30/bed 5) Private bedroom is based on $20/bed 6) Electric is based on $30/bed 7) Waterand sewer is based on $15/bed 8) Internet is based on $30/unit 9) Cable is based on $30/unit ** Standard Meal plan cost based on $1505/semester (middle level meal plan) Subject Sitevs. Avg. On -Campus 106.20% Subject Sitevs. Horizon Village 98.93% On -Campus Avg. housing cost $510 Standard meal plan 250 Parking 38.5 Other 0 Total $799 Off -Campus Subject site 4 -bed rent 575 Uti I ity cost 8 Parking 0 Other 0 Total $583 Remaining for food $216 Page 92 Competitive Project Summarl 11:11111 RISE! ii MIREHIM111111 R I 1 1111 111 1111 11 1 1 1111, Ili I I III I III I I III I I I 1 11111111 111111111 1 111 1 i 1 0 • Price sensitivity will be an objection that is likely to be voiced frequently. * Landmark Properties believes that effective marketing and an effective sales team will be able to achieve the rents as underwritten on the 4BR and 2BR unit types. * 1 BR units are priced at a significant premium to the off campus market (20%), however they represent only 6% of the unit mix. • Landmark recommends flexibility on furnishing units particularly on 1 BR floor plans where appealing to non -student renters may be needed. Page 93 The typical Annex amenity set is recommended as there is no purpose built housing in the competitiv(;� set. Underground heated parking is available at the three off campus comparable properties for an additional fee. Landmark recommends —50 parking spaces covered and heated for a $50/mo fee. Additional options for further transportation to campus is recommended to combat any resistance to subject site location. Property marketing efforts should include (or ideally partner with) the Titan Transit late night shuttle service (https://www.uwosh.edu/stuaff/titan-transit). The #5 "UWO" bus, a part of Oshkosh "Go Transit" does offer a nearby pickup on Pearl St, a 4 min walk from the Subject Site. OUNIMMINNIMSIMMOM-TIM Page 94 Inclusion of water, sewer, wi-fi, electric, is recommended for the subject site for the following reasons • Horizon village residents are used to having all utilities included and are likely to represent a larg target demographic for Annex 71 • Inclusion of utilities will differentiate Annex 71 from the competitive properties off campus (none which include electric). Flexibility on furnishing units is recommended particularly on 2BR and 1 BIR units where appealing to non -student renters may be necessary I Page 95 Unit Types Total Beds Projected Rents 1X1 20 $764 2x2 110 $653 4A 1801 $499 Page 96 I owl' MMUMORM • The proposed unit mix for the subject site is in line with typical industry expectations and should create not impediments to leasing • A lack of 4 bedroom comparable floorplans in the market should allow value -seeking students a viable option for living at the asset, and the property marketing plan will reflect this. • After Adjusting for inclusions, Rents as proposed in the Annex 71 investment thesis would be 11.4% more than competitive 3 and 4 BR unit types. 2 BR units would be 13.7% more than competitive units. 1 BR units would be 20% more than competitive units. (See Page 27). • Given the low total number of 1 bedroom units at the property, these rate differentials are within the bounds typically expect for a First in market purpose-built product. Page 97 1. SWOT Analysis 2. Target Market 3. Leasing Timeline 4. Marketing Plan Objectives Page 98 BE SWOT Analysis Page 99 Target Market • Primary: UW— Oshkosh Juniors, Seniors and Grad students • On -campus live -on requirement for Freshmen and Sophomores • Secondary: Oshkosh professionals • 20-40% of nearby apartment complexes' occupancy comprised on non -students 0 Page 100 Ak 44k .. 4t Student leasing season early Fall semester — most students report beginning their search in October Perception in market that there is a housing shortage Many 12 -month lease terms in market run June to May Several competitors offer 9 -month leases (September 0 Page 101 il► University of Wisconsin - Oshkosh Academic Calendar Page 102 Fall Semester 20117 Tuesday September 5, 2101.7 Academic Advisement/Registration Wednesday September 6 Begin P' 7' -week; 14 -week terra Tuesday October 24 End 1 s+ 7 -week term Wednesday October 25 Re in 2nd 7 -week term Wednesday- Sunday November 22-26 Thanksgiving Recess Note: Recess begins after evening classes on November .?d Monday November 27 Classes resume Friday December 15 End 2nd 7 -week; 14 -week term Saturday December 16 COMMENCEMENT Tuesday* January 2, 20118 Begin 3 -week Interim Monday FridaLjanuary January 15 19 Legal Holiday', Martin Luither King Jr, Day -- no classes End 3 -week lnterim; end of semester -- Official Graduabon Date 0 Fall lnterl Masses will meet o Jaanuary 2„ 3, 4, 5, 6 ISATURI2AY) 6,. 9,10,11,1Z 16,17,1180% Page 102 wtk�r- 1-10N1RT4wft University of Wisconsin - Oshkosh Academic Calendar Semester 2018 29 1 Beaiin I V 7 -we&! 14 -week term March 18- 2 5 ....................................... Break �p .................. ............................. M.a.rch..2.6 ..................... ... . ..... .. .. 7 -week term ............................................... dw End 2 d 7 -week; 14 -week term .............................................................. ....qq.q!!1.,�-week Interim ........................................................................... ....... I amml WnhAnu Mamnriil r)nu -- Page 103 Frill Frill University of Wisconsin — Oshkosh Academic Calendar Irawn'. pill 4 _jeqa,1H_oI_iday,_!nq�2f -n-o- c I as se,s ----------------- 6 End of I sk 4 -week term 9 Begiin trod 4 -week term ust 3 End 2nd 4 -week: 8 -week term -- Official:: Graduation Date Page 104 awareness1.Create brand recognition and product 2. Promote • •• • ,- and elevated position 3. Educate target market on purpose-built student housing Leverage new product • maintain leasing• 4 Page 105 Brand Recognition & Product Awareness 1. Print media • Student newspaper: The Advance — Titan • Collateral: flyer, poster and brochure distribution • Signage around construction site 2. Digital media • Social media: Facebook, Instagram, Snapchat, Twitter • Email marketing: e -blasts to University email directory • Google Ads, SEO & remarketing • ILS advertising: Rent College Pads, Trulia and Craigslist Page 106 Brand Recognition & Product Awareness 3. Guerrilla marketing • Street teams: strategically distribute marketing materials and branded collateral in high -traffic student areas on and off campus • Co -vending: partner with popular local bars and restaurants catering to students • Outbound marketing: campus housing fair, on campus marketing in Reeve Union, campus and Main Street bars and restaurants, athletics sponsorship 4. Relationship building • Outreach to campus departments and student orgs • Sponsorship of student org events and philanthropy Page 107 As the only purpose-built student community in Oshkosh, a key strategy for success will be to highlight Annex 71's advantages over other options through marketing efforts and sales pitch- • By -the -bed leasing • Utilities included • Private bathrooms • Student -centric amenities and features • Brand new, contemporary complex • Modern appliances, in -unit washer/dry • Residence life programming I Page 108 • Utilize social media and other marketing outlets to generate and maintain hype • Implement social media campaigns that encourage engagement • Host events on- and off -campus that promote a fun, student lifestyle • Provide construction updates to keep market and future residents interested and excited about site progress • Reputation management- encourage Google and ,a -•o reviews and social media brand mentions • Maintain consistent, active involvement in community and campus events throughout leasing season Page 109 Operations Pro Forma & Lease Up Budget Section VI • „` ■ "Omll rat Page 111 Page 112 D V m a' v o v M , m 0 n N m o M r v c 55/ - fA fA fA i-;/iiiiry fA fA fA fA fA fA V T O V O N zz r O O in A E L a Cry ° 53 » y9' ve N k O O N N O 0. W O in N O' O 1�0 �j E', yj fA p Fp fA fA fA p fA. Fp fA fA fA W W.fA - - - - fA fA fA fA fA fA fA - - fA - - - fA fA fA fA b N ,n G v N N C ' d E d' c LL 3S $ E C d , ° C E U c v. O U d N d C ° Ep.. �' _ d d lo a o a U' 4i T c T ° K E. L.Lb T j c5 LL� d d U. T S 2 W 6. j N -° d ;! ,n VI U C V 1W E: C O. Y N t 1� N .".. '� d U E "�3 Q ? T o �. D 5 10 + N VI C L ,� o % 1W 1W N N LL fD m V m p i7': V z > F°- U! Q �° ii `U F°- p ` F°-' Q U' �° fD iD F V F I°-'. p V m � F F°- F°- Z S U 5 1 Page 112 PRE -OPENING EXPENSES Construction Build Out $ 20,000.00 Advertising $ 44,700.00 General & Admin $ 55,623.00 Payroll $ 83,848.05 Insurance $ 5,400.00 Repairs & Labor $ 1,600.00 Security & Shuttle $ - Utilities $ 4,200.00 Turn $ 500.00 Total $ 215,871.05 Landmark PM Fees $ 90,000.00 Page 113 8 Page 114 Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Rental Revenue Market Rent $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Loss/Gain to Lease $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Rent Concessions/Incentives $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Employee Housing $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Model Apartment $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Revenue Write-off $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Vacancy Loss $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Total Rental Revenue $0.00 Zoo Zoo Zoo Zoo Zoo Zoo Zoo Zoo $0.00 $0.00 $0.00 $0.00 aher 1-.. Activiry Fees $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $OD] $0.00 Admin Fees $0.00 $0.00 $4,650.00 $9,300.00 $4,650.00 $9,300.00 $9,300.00 $4,650.00 $2,325.00 $0.00 $0.00 $O.M $44,175.00 Misc Income $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Application Fees $0.00 $0.00 $1,550.00 $3,100.00 $1,550.00 $3,100.00 $3,100.00 $1,550.00 $]]5.00 $0.00 $0.00 $O.M $14,85.00 Cancellation/Termination Fees $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Clubroom Fees $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Damage/Cleaning Fees $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Legal Fees Reimbursement $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Covered Parking Fee $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Imerest l ncome(Other) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Imerest l ncome'S.c Dep) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Key Replace.. nt Costs $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Resident Insurance $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 late Fees $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 NSF Fees $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Pet Fees'N- Refundable) $O.OJ $O.OJ $O.OJ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.OJ :O Pet Rent $0.00 $0.00 $0.00 $a 00 $a 00 $a 00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Pet Fines $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Portal Fee $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Transfer Fees $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Conservice Setup/Annual Fee $O.OJ $O.m $O.m $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.m Trash Fines $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.m $0.00 Pest Control Reimbursement $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.OJ l ihw Cap Income $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.'M Vending Income $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.M $0.00 Total Other Income $0.00 ZOO $6,200.00 $12,400.00 $6,200.00 $12,400.00 $12,400.00 $6,200.00 $3,100.00 $0.00 $0.00 $0.00 $58,900.00 Total Income $0.00 $0.00 $6,200.00 $12,400.00 $6,200.00 $12,400.00 $12,400.00 $6,20J.00 $3,100.00 $0.00 $0.00 $O.M $58,900.00 8 Page 114 Operating Expenses Can.. Build -Out Leasing Center BuildOut$20,00am $am $0.00 $O.OJ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $am $0.00 $20,000.00 Total Const Build -Out $20,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $20,000.00 Advertising & Promotions Ad Production/Artwork $am $am $0.00 $am $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $am $0.00 $0.00 Apartment Gui des/Magazines $am $am $0.00 $am $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $am $0.00 $0.00 Collateral $1,00am $am $0.00 $am $1,000.00 $0.00 $1,waw $0.00 $0.00 $0.00 $am $0.00 $3,000.00 Club Expense/Sponsorship $2,00am $500.00 $500.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $am $0.00 $3,000.00 Community Newsletter $500.00 $am $0.00 $am $0.00 $500.00 $500.00 $0.00 $0.00 $0.00 $am $0.00 $1,500.00 Direct Mail $am $am $0.00 $am $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $am $0.00 $0.00 Leasing Office Rent&Expenses $O.OJ $O.OJ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.OJ $0.00 $0.00 Leasing Staff on Site $O.OJ $O.OJ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.OJ $0.00 $0.00 Internet Advertising $am $1,OJO.On $1, 000.On $1, 000.On $1,000.00 $1,000.00 $1,OOJ.11 $500.00 $500.00 $500.00 $500.00 $500.00 $8,500.00 Locator/Broker Fees $O.OJ $0.00 $O.OJ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.OJ $0.00 $0.00 Model Accessories $O.OJ $am $0.00 $O.OJ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.On $0.00 $0.00 Newspaper Advertising -Student $O.OJ $O.OJ $500.00 $SOO.OJ $0.00 $500.00 $50J. Ea $0.00 $0.00 $0.00 $, On $0.00 $2,000.00 Newspaper Advertising -Non Student $am $O.OJ $0.00 $O.OJ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.OJ $0.00 $0.00 Promotional Events $O.OJ $1,500.OJ $500.00 $O.OJ $0.00 $0.00 $50J.00 $0.00 $0.00 $500.00 $SOO.OJ $SOJ.00 $0,000.00 Promotional Items $6,000.00 $am $0.00 $O.OJ $0.00 $2,500.00 $0.00 $0.00 $0.00 $0.00 $O.OJ $0.00 $8,500.00 Prospect Ref reshments $100.00 $10000 $10000 $10000 $10000 $10000 $10000 $1ao 00 $10000 $10000 $100.00 $10000 $1,200.00 Radio/Television $0.00 $am $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.OJ $0.00 Resi dent Functions $O.On $0.00 $O.OJ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.On $0.00 Resident Incentives $SOO.OJ $SOO.OJ $SOO.OJ $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $SOJ.00 $SOO.OJ $6,000.00 Resident Referrals $O.OJ $O.OJ $O.On On $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.On $0.00 Resident Retention $O.'M $O.OJ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.On $0.00 Seasonal Decorations $O.On $O.On $O.On $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.OJ $0.00 Signage En $3,SOO.OJ $O.OJ $O.On $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.On $3,500.00 Website Expenses $3,SOO. $O.OJ $O.OJ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O. En $3,500.00 Total Advertising $1],100.00 $3,600.00 $3,100.00 $2,100.00 $2,600.00 $5,100.00 $0,100.00 $1,100.00 $1,100.00 $1,600.00 $1,600.00 $1,600.00 $44,]00.00 General & Adminirtrative Bank Charges $50.On $50.On $SO.OJ $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $SO.OJ $600.00 Bank Fees-Gedit Card Charges $O.OJ $O.OJ $O.OJ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $am $0.00 Clubroom Mai nt&Repair $O.OJ $O.OJ $O.OJ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.OJ $0.00 Computer Software $2, mom $O.'M $O.OJ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.OJ $2,000.00 Real Page -Site Expense $525.OJ $52 00 $5252 $525.00 $525.00 $525.00 $525.00 $525.00 $525.00 $525.00 $525.00 $525.OJ $6,300.00 Bank Draft-SIGON FI LE/OneSite $25.OJ $25.OJ $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25., $300.00 Computer Supplies $O.OJ $O.OJ $O.OJ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.On $0.00 Credit Reports/Resident Screen $O.OJ $O.OJ $434.OJ $86800 $434.00 $86800 $86800 $434.00 $21].00 $0.00 $0.00 $O.OJ $0,123.00 Dues&Subscriptions $O.OJ $O.OJ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.On $0.00 Employee Recognition $O.OJ $O.OJ $O.OJ $0.00 $0.00 $100.00 $100.00 $100.00 $100.00 $100.00 $lOJ.00 $100.OJ $]00.00 Employee Travel $1,500.OJ $1,500.OJ $O.OJ $0.00 $1,OJ0.00 $0.00 $1,000.00 $0.00 $1,000.00 $0.00 $1, SUED 00 $O.OJ $],000.00 Express Mail $O.OJ $O.OJ $O.OJ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.On $0.00 Employee Housing $O.OJ $, On $, On $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.On $0.00 Legal Fees/Evictions $O.OJ $O.On $O.On $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.OJ $0.00 Licenses/Fees $SOO.OJ $O.OJ $O.OJ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.OJ $500.00 Copier Equip Maint Contract $EOO.On $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $SO.OJ $1,150.00 Copier Equip Rental /Leasing $0.00 $O.OJ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.OJ $0.00 Off ice Supplies $1,00 On $10 On $100.On $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $1,Ed $100.OJ $2,100.00 Pagers/Cellular Phones Saw Saw $O.OJ $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.OJ $0.00 Postage&Delivery $am $0.00 $O.On $0.00 $0.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $350.00 Printing $EiOom $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $1,600.00 Leasing Center Rent S4,00 On $2,OJO.On $2,OJO.On $2,00am $2,OJ0.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.On $26,000.00 Telephone Service $'m $'m $'m $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Im $0.00 IT Repairs&Maintenance $500.On $100.On $100.OJ $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $lOJ.00 $100.OJ $1,600.00 5 Training/Education $500.00 Saw $0.00 $0.00 $0.00 $800.00 $0.00 $0.00 $0.00 $0.00 $0.00 $O.On $1,300.00 4 Total Gain eral&Adminirtrative $11,]00.00 $0,050.00 $3,380.00 $3,811100 $0,380.00 $0,761100 $0,961100 $3,530.00 $0,317.00 $3,100.00 $0,100.00 $3,100.00 $55,623.00 Page 115 Payroll & Related Employee Recruiting / Advertising Health Insurance & Benefits-Admin Health Insurance & Benefits- Mai. Salary & Wages - Admin Payroll Burden -Admin Salary& Wages- Maint Payroll Burden - Maint Bonuses-Admin Bonuses- Maint Payroll Processing Exp -Admin Payroll Processing Exp - Maint Temp Employee Wages Insurance Im urance - General liability Im urance - Employment Practices urance - Workers Comp Im urance- Property- Escrow urance- Umbrella Liability Other Total Insurance Property Management Fee Property Management Fee Property Management Fee NOI Total Property Management Fee Repairs & Maintenance Amenity Common Area Cleaning Amenity Supplies Amenity Computer Lab R&M Amenity Elevator Contract Amenity Elevator Maintenance Amenity Equipment Maintenance Amenity Janitorial Contract Amenity Janitorial Supplies Amenity Painting - Common Area Repairs /labor Roof & Gutter Repairs Signage R&M Supplies Window & Door Repairs Total Repairs & MA-m- 5 .... itv aintenance5ecurity Security Fire Alarm Monitor Contracted Security Service Total Security $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $O.m $0.00 $0.00 $0.00 $am $129.m $129.00 $129.00 $129.00 $129.00 $129.00 $129.m $129.m $129.m $129.00 $129.00 $25&00 $1,6]].00 $129.m $129.00 $129.00 $129.00 $129.00 $129.00 $129.m $129.m $129.m $129.00 $129.00 $129.00 $1,508.00 $4,978.46 $4,97&46 $4,97&46 $7,467..69 $4,978.46 $4,978.46 $4,978.46 $4,978.46 $4,978.46 $7,467..69 $4,978.46 $4,97&46 $60,720.00 $448.06 $44&06 $44&06 %6 .09 $448.06 $448.06 $448.06 $448.06 $448.06 %6 .09 $448.06 $44&06 $5,820.®] $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $O.m $0.00 $0.00 $1,800.00 $1,800.00 $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $O.m $0.00 $0.00 $16200 $162.00 $am $0.00 $387.50 $775.00 $387.50 $775.00 $775.m $387.50 $193.75 $0.00 $0.00 $3,875.00 $7,556.25 $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $0.00 $0.00 $0.00 $0.00 $am $42.m $4200 $4200 $63.00 $4200 $4200 $42.m $42.m $42.m $63.00 $4200 $4200 $506.00 $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $O.m $0.00 $0.00 $14.00 $10.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $0.00 $0.00 $0.00 $am $5,86.52 $5,72652 $6,110.02 $9,23578 $6,110.02 $6,501.52 $6,501.52 $6,110.02 $5,920.27 $8,060.78 $5,7M.52 $11,706.52 $83,808.05 $100.0) $100.00 $100.00 $1m.00 $1m.00 $1m.00 $100.m $100.0) $100.0) $100.00 $1m.00 $100.00 $1,200.00 $160.0) $160.00 $160.00 $160.00 $160.00 $160.00 $160.0) $160.0) $160.0) $160.00 $160.00 $160.00 $1,920.00 $190.00 $190.00 $190.00 $190.00 $190.00 $190.00 $190.0) $190.0) $190.0) $190.00 $190.00 $190.00 $2,280.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $O.m $0.00 $0.00 $0.00 $am $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $O.m $0.00 $0.00 $0.00 $am $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $am $0.00 $0.00 $0.00 $am $450.00 $050.00 $050.00 $050.00 $050.00 $050.00 $050.00 $050.00 $050.00 $050.00 $050.00 $050.00 $5,000.00 $7,500.00 $7,500.x0 $7,500.00 $7,500.00 $7,500.00 $7,500.00 $7,500.00 $7,500.x0 $7,500.x0 $7,500.00 $7,500.00 $7,500.00 $9amam $0.00 $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $O.m $0.00 $0.00 $0.00 $am $7,500.00 $7,500.m $7,500.00 $7,500.00 $7,51)M00 $7,51)M00 $7,500.00 $7,500IM $7,500IM $7,500.m $7,51)M00 $7,500.00 $90mam $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $O.m $0.00 $0.00 $0.00 $am $0.00 $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $0.00 $0.00 $0.00 $am $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $O.m $0.00 $0.00 $0.00 $am $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $O.m $0.00 $0.00 $0.00 $am $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $O.m $0.00 $0.00 $0.00 $am $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $O.m $0.00 $0.00 $0.00 $am $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $O.m $0.00 $0.00 $0.00 $am $100.m $100.00 $100.00 $1m.00 $1m.00 $1m.00 $100.m $100.m $100.m $1m.00 $1m.00 $100.00 $1,200.m $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $O.m $0.00 $0.00 $0.00 $am $100.m $0.00 $50.00 $0.00 $50.00 $0.00 $50.m $50.m $O.m $50.00 $0.00 $50.00 $000IM $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $O.m $0.00 $0.00 $0.00 $am $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $O.m $0.00 $0.00 $0.00 $am $0.00 $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $0.00 $0.00 $0.00 $am $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $O.m $0.00 $0.00 $0.00 $am $W0.00 $100IM $150.00 $100.00 $150.00 $11)M00 $150.00 $150IM $100IM $150.00 $11)M00 $150.m $1,600IM $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $O.m $0.00 $0.00 $0.00 $am $am $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $O.m $0.00 $0.00 $0.00 $am $0.00 $O.m $0.00 $0.00 $0.00 $0.00 $0.00 $am $am $0.00 $0.00 $0.00 $am Page 116 8 Shuttle Bus Shuttle Service -Contracted $0.00 $am $0.00 $0.00 $0.00 $o.m $0.00 $0.00 $0.00 $o.m $0.00 $o.m $0.00 Shuttle Service -Night Contract $0.00 $am $0.00 $0.00 $0.00 so $0.00 $0.00 $0.00 $o.m $0.00 $o.m $0.00 Total Shuttle Bus $0.00 $0.00 $0.00 $a $0.00 $0.00 $0.00 $a $0.00 $0.00 $0.00 $0.00 $0.00 Utilities Cable N Contract $0.00 $am $0.00 $0.00 $0.00 $am $0.00 $0.00 $0.00 $o.m $0.00 XI.W $0.00 Electricity -Common Area $150.OJ $150.OJ $150.00 $150.00 $150.00 $150.OJ $150.00 $150.00 $150.OJ $150.OJ $150.00 $11,M $1,800.00 Electricity -Occupied Units $0.00 $a. $0.00 $0.00 $0.00 $am $0.00 $0.00 $0.00 som $0.00 som $0.00 Electriciy vacant $0.00 $am $0.00 $0.00 $0.00 $o.m soaa $0.00 $0.00 $o.m $0.00 $o.m $ww Gas -Common Area $,am $100m $100.00 $100.00 $100.00 $1,m $100.00 $100.00 $100.00 $im.M $lOJ.00 $lOJ.OJ $1,200.00 Internet Contract $100.OJ $100.OJ $lOJ.00 $100.00 $100.00 $lOJ.OJ $lOJ.00 $100.00 $100.00 $lOJ.OJ $lOJ.00 $lOJ.OJ $1,200.00 Water/Sewer-Common Area $O.OJ $O.OJ $0.00 $0.00 $0.00 $o.m $0.00 $0.00 $0.00 som $0.00 som $0.00 Water/Sewer-Occupied Unit $O.OJ $O.OJ $0.00 $0.00 $0.00 som $0.00 $0.00 $0.00 $o.m $0.00 $o.m $0.00 Water/Sewer-Vacant :am :am $0.00 $0.00 $0.00 $o.m $0.00 $0.00 $0.00 som $0.00 som $0.00 Garbage Collection $0.00 $am $0.00 $0.00 $0.00 $O.OJ $0.00 $0.00 $0.00 $o.m $0.00 $o.m $0.00 Utilities -Occupied Unit $0.00 $O.OJ $0.00 $0.00 $0.00 :am $0.00 $0.00 $0.00 som $0.00 som $0.00 Trash Removal :aa, $am $0.00 $0.00 $0.00 S,m $0.00 $0.00 $am $o.m $0.00 $o.m $0.00 Utility Reimbursements $0.00 $am $0.00 $0.00 $0.00 XI.W $0.00 $0.00 $0.00 XI.W $0.00 XI.W $0.00 UMW VacantService Fees $o.00 $0.00 $o.00 so.00 $0.00 $o.m $o.00 so.00 $o.00 $o.m $o.00 $o.m $o.m Total Utilities $350.00 $350.00 $350.00 $350.00 $350.00 $350.00 $350.00 $350.00 $MUM $350.00 $350.00 $350.00 $1,200.00 Turn Expense Move to Clubhouse aa, $O.OJ $0.00 $0.00 $0.00 $O.OJ $0.00 $0.00 $0.00 $am $0.00 XI.W $0.00 Leasing Center Clean/Stripped $0.00 $O.OJ $0.00 $0.00 $0.00 :am $0.00 $0.00 $0.00 $o.m $0.00 $SMM $500.00 Total Turn Expenses $0.00 $0.00 $0.00 Zoo $0.00 $0.00 $0.00 $a $0.00 $0.00 $0.00 $500.00 $500.00 Total Operating Expenses $63,026.52 $22,176.52 $21,00&02 $23,55178 $21,518.02 $21,269.52 $21,019.52 $19,19&02 $19,]37.27 $21,610.]8 $19,826.52 $25,356.52 $305,8]1.05 EBITDA -$63,026.52 -$22,176.52 -$11,81&02 -$11,15178 -$15,318.02 -$12,369.52 -$11,619.52 -$12,991102 -$16,63].2] -$21,610.28 -$19,82&52 -$25,356.52 -$216,9]1.05 8 Page 117 SITE AND BUILDING PLANS Page 118 q,INlNlli'r::�4;OS1os_oa,3 �.,AR�� 3, zoIhIIK.OSIFH PLAN COMMISSION SUBMITTAL Cover AO.0 Architecture A0.1 Sheet Index A1.1 Site Plan A2.1 First Floor Plan A2.2 Second and Third Floor Plan A2.3 Fourth Floor Plan A2.5 Roof Plan A3.1 Building Elevations A3.2 Building Elevations A4.1 Unit Plans A5.1 Perspective A5.2 Perspective Photometric Plan �OF� 000g peon smofmunno q,INlNlli'l7.nlh�IK.l7nlh� PLAN COMMISSION SUBMITTAL Sheet Index AO IIII�II IIII �V� �om os�xos� �,«zos_oa,3 �.,AR�� 3, zo„ � r rto �h - oox. \� l % / Water Tower i � - r ✓ , , 90 dl ROW e F�pt,e R.O.W % W �� P maty Am / a Courtya I De[en0an Pond 4 Story Residential Bldg. ,auoa s JMarion — — — — — — — — — — — — Road _—__--__—_-.—__ _ UI m �enneesmoeln nms s 0SFIKOSII N o SITE PLAN PAN COMMISSION SUBMITTAL A1.1 mm i. 9 ��oeanuoimuvims AIIVII+IIf:'r: OSIHIKOSIH PLAN COMMISSION SUBMITTAL O FIRST FLOOR PLAN A2.1 @@ k�er.�om osHKosh,„u «�a,6oa,3 ��AROH 3,. zo„ IIIII�III IIII �e �' II UI is 9 �wnoeanuoimuvims AIIVII+IIf:'r:?G OSIHIKOSIH PLAN COMMISSION SUBMITTAL O SECOND /THIRD FLOOR PLAN A2.2 flfla<.,s,�.4 ��AR�H3,.zo„ IIIII�III IIII �e �' i. 9 ��oeanuoimuvims AIIVII+IIf:'r: OSIHIKOSIH PLAN COMMISSION SUBMITTAL O FOURTH FLOOR PLAN A2.3 @@ k�er.�o,� osHKosh,„u «�a,6oa,3 ��AROH 3,. zo„ IIIII�III IIII �e �' i. 9 ��oeanuoimuvims AIIVII+IIf:'r: OSIHIKOSIH PLAN COMMISSION SUBMITTAL O ROOF PLAN A2.4 @@ k�er.�o,� osHKosh,„u «�a,6oa,3 ��AROH 3,. zo„ IIIII�III IIII �e �' 0 BRICK Level 4 - Residential Level 3 - Residential Level 2 - Reside1 Level 1 - Resid—wil Level 4 - Residential Level 3 - Residential Level 2 - Residential Level 1 - Residential Material Legend 1. Brick 2. Metal Panel System 3. Stucco 3A. Fiber Cement Panel System 4. Signage 5. Vinyl Windows 6. Metal Railing 7. Canopy umrtmrtEWN Marion Road <ey Map n.t.s. 2. West Elevation 1. South Elevation (Marion Road) lumm �� U s e000g �eonasmoemunno q,INlNlli'r:�4;0.".7.nIHKOSIH PLAN COMMISSION SUBMITTAL O s 5 4 SOUTH/WEST ELEVATIONS A3.1 lll�ll IIII„U ��i osnKosn ,, «zos_oa,3 n n 3, zo„ [1 BRICK Stair Roof Level 4 - Residential Level 3 - Residential Level 2 - Residential Level 1 - Residential Material Legend 1. Brick 2. Metal Panel System 3. Stucco 3A. Fiber Cement Panel System 4. Signage 5. Vinyl Windows 6. Metal Railing 7. Canopy Key Map n.t.s. 2. East Elevation 1. North Elevation (Marion Road) lumm �� U s e000g �eonasmoemunno a111WIIWlf:'r:Y' 0.".7..SIh1IKOSI1 I PLAN COMMISSION SUBMITTAL O s 5 4 NORTH / EAST ELEVATIONS A3.2 lll�ll IIII„U ��i os Kos ,, «zos_oa,3 R 3, zo„ UNIT PLAN 2-2-C UNIT PLAN 1-1 UNIT PLAN 4-4 UNIT PLAN 2-2 p, ININIIi'r: OSHKOSH PLAN COMMISSION SUBMITTAL � UNIT PLANS A4 000456daf.o �om os�Kos� �zos oa,3 �.,AR�� 3, zo„ Marion Road - <ey Map n.t.s. �1111 1111���FV�000g�eonasmoEmunno '0.".7.SIHKOSIH PLAN COMMISION SUBMITTAL III�II �.,AR�� 3, zo„ n.= 1. Perspective View along Marion Road PERSPECTIVES II A5.1 1110 IID �' GrlNr�--Ilio--+b I�1m1111111 ����F Vl 000g �eonasmoEmunno q,ININIf:'0.".7.SIHKOSIH PLAN COMMISSION SUBMITTAL IIIII�II �.,AR�� 3, zo„ n.= 2. Perspective View along Entry Drive PERSPECTIVES II A5.2 Ciii RIIIEIIIE IV. THIS ITEM WAS WITHDRAWN FROM THE AGENDA V. PUBLIC HEARING ON PROPOSED CREATION OF TAX INCREMENT FINANCING DISTRICT NO. 33 LAMICO REDEVELOPMENT; DESIGNATION OF BOUNDARIES AND APPROVAL OF PROJECT PLAN Tax Incremental District No. 33 (the "TID" or "District") is a proposed 5.5 acre blighted area district located on the former Lamico property at 474 Marion Road. Creation of the District is intended to assist with the removal of existing blighted and functionally obsolete structures, environmental remediation, and other site preparation costs to allow for construction of a 140 unit multi -family residential complex oriented towards university student centric housing. Proposed TID No. 33 is encompassed by TIDs Nos. 13 and 21 (partial overlay of 13) and is the last vacant former manufacturing parcel remaining in this historic industrial district outside of the active Mercury Marine property. The City created TID No. 13 to facilitate redevelopment of the Marion Road/Pearl Avenue area and conducted all the land acquisition, relocation, site clearance and preparation, environmental remediation, and infrastructure development in the surrounding area. TID No. 33 represents a departure from the City's historical development involvement in this area because the developer is conducting all the acquisition, clearance, remediation, etc. at the site to facilitate redevelopment. The City anticipates making total Project Cost expenditures of approximately $3.9 million to facilitate redevelopment within the District. This total is comprised of approximately $3.3 million in potential "pay as you go" development incentives towards the $18 million project. Hard construction costs for the multiple family development are estimated at approximately $11 million. The Project Plan also identifies costs for public utilities and cul-de-sac construction at the ends of both Dawes Street and Riverway Drive as well as pedestrian trail connections through and outside the District to connect with the riverwalk trail to the south. Mr. Burich presented the item and reviewed the site and surrounding area as well as the land use, zoning classifications, and the boundaries of the TID district. He also reviewed the map depicting the other previous TID districts in this area and discussed improvements included in the TID project plan. He discussed the increment associated values to be offset and reviewed the parcel identification map of the area included in the TID boundaries. He also reviewed a map depicting the proposed improvements included with the development of the site that will result from the creation of the TID district and a map depicting the current conditions on the site. He discussed the detailed list of project costs and the cash flow projections and stated that the TID could be closed in 2029 or 2030 which would be earlier than some of the other TID districts created in the past. He reviewed the Internal Rate of Return which would be 4.43% without the TIF and 10.95% with TIF assistance. Mr. Borsuk questioned if in the development agreement there would be a minimal value established for the property. Plan Commission Minutes Page 132 June 20, 2017 Mr. Burich responded that the approximate land and improvements value would be $15.2 million. Mr. Borsuk then questioned if there would be any guarantee that this value will not be reduced. Mr. Burich replied that with "pay as you go" development incentives, there is no minimum assessed value established and public improvement costs may affect this value. These issues will be addressed with the developer's agreement. Mr. Borsuk also questioned where the next water tower property would be located. James Rabe, Director of Public Works, stated that the future water tower property would be located at the northeast corner of the site and displayed on the map the area. He explained that there will be a land swap for future area for rebuilding of the water tower in approximately 75 years and that the developer will be acquiring the site where the current water tower is located and the land swap will provide area for the future tower when needed. He indicated that this land exchange is currently being coordinated between the city and the contractor. Motion by Borsuk to approve the creation of Tax Increment Financing District No. 33 Lamico Redevelopment, designation of boundaries and approval of the project plan. Seconded by Kiefer. Motion carried 7-0. There being no further business, the meeting adjourned at approximately 4:50 pm. (Hinz/Propp) Plan Commission Minutes Respectfully submitted, Darryn Burich Director of Planning Services Page 133 June 20, 2017 ITEM: PUBLIC HEARING ON PROPOSED CREATION OF TAX INCREMENT FINANCING DISTRICT NO. 33 LAMICO REDEVELOPMENT; DESIGNATION OF BOUNDARIES AND APPROVAL OF PROJECT PLAN Plan Commission meeting of June 20, 2017 Prior to taking action on proposed Tax Increment District (TID) No. 33 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 No. 33. 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: Annex 71 Property Owner: Lamico Inc. GENERAL DESCRIPTIONIBACKGROUND Tax Incremental District No. 33 (the "TID" or "District") is a proposed 5.5 acre blighted area district located on the former Lamico property at 474 Marion Road. Creation of the District is intended to assist with the removal of existing blighted and functionally obsolete structures, environmental remediation, and other site preparation costs to allow for construction of a 140 unit multi -family residential complex oriented towards university student centric housing. Proposed TID No. 33 is encompassed by TIDs Nos. 13 and 21 (partial overlay of 13) and is the last vacant former manufacturing parcel remaining in this historic industrial district outside of the active Mercury Marine property. The City created TID No. 13 to facilitate redevelopment of the Marion Road/Pearl Avenue area and conducted all the land acquisition, relocation, site clearance and preparation, environmental remediation, and infrastructure development in the surrounding area. TID No. 33 represents a departure from the City's historical development involvement in this area because the developer is conducting all the acquisition, clearance, remediation, etc. at the site to facilitate redevelopment. The City anticipates making total Project Cost expenditures of approximately $3.9 million to facilitate redevelopment within the District. This total is comprised of approximately $3.3 million in potential "pay as you go" development incentives towards the $18 million project. Hard construction costs for the multiple family development are estimated at approximately $11 million. The Project Plan also identifies costs for public utilities and cul-de-sac construction at the ends of both Dawes Street and Riverway Drive as well as pedestrian trail connections through and outside the District to connect with the riverwalk trail to the south. 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. Using the City's TIF Application Scoring criteria (attached) this project scored 71 out of 100 points scoring maximum points for blight elimination, extraordinary costs ( due to environmental issues), and enhancing the pedestrian experience through removal of a blighted structure and replacement with a modern new apartment building with a street wall presence. ANALYSIS As a result of the creation of this District, the City projects that additional land and improvements value of approximately $15.2 million will be created as a result of the projects contemplated in the Project Plan. 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 14 of the maximum 27 statutory years. 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 incentivize developers to make the necessary private investment. In this case the cash flow analysis (Appendix A Developer Application 10 Year Proforma) shows a 10 year IRR (Internal Rate of Return) without TIF of 4.43% and a 10.95% IRR with TIF. The "with TIF" IRR while in the low double digits is still somewhat below standard development expectations but much higher than most of the TIDs that have recently been created by the City such as the Beach Building (TID No. 28), Morgan District (TID No. 29) Washington Building (TID No. 30) and the Granary (TID No. 32). 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 UMU PD Urban Mixed Use Planned Development Overlay zoning district 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 No. 33 as proposed. The Plan Commission approved of the project plan and boundaries for TID No. 33 as requested. The following is the Plan Commissions discussion on this item. Item: Creation of TID # 33 Lamico Redevelopment Mr. Burich presented the item and reviewed the site and surrounding area as well as the land use, zoning classifications, and the boundaries of the TID district. He also reviewed the map depicting the other previous TID districts in this area and discussed improvements included in the TID project plan. He discussed the increment associated values to be offset and reviewed the parcel identification map of the area included in the TID boundaries. He also reviewed a map depicting the proposed improvements included with the development of the site that will result from the creation of the TID district and a map depicting the current conditions on the site. He discussed the detailed list of project costs and the cash flow projections and stated that the TID could be closed in 2029 or 2030 which would be earlier than some of the other TID districts created in the past. He reviewed the Internal Rate of Return which would be 4.43% without the TIF and 10.95% with TIF assistance. Mr. Borsuk questioned if in the development agreement there would be a minimal value established for the property. Mr. Burich responded that the approximate land and improvements value would be $15.2 million. Mr. Borsuk then questioned if there would be any guarantee that this value will not be reduced. Mr. Burich replied that with "pay as you go" development incentives, there is no minimum assessed value established and public improvement costs may affect this value. These issues will be addressed with the developer's agreement. Mr. Borsuk also questioned where the next water tower property would be located. James Rabe, Director of Public Works, stated that the future water tower property would be located at the northeast corner of the site and displayed on the map the area. He explained that there will be a land swap for future area for rebuilding of the water tower in approximately 75 years and that the developer will be acquiring the site where the current water tower is located and the land swap will provide area for the future tower when needed. He indicated that this land exchange is currently being coordinated between the city and the contractor. Motion by Borsuk to approve the creation of Tax Increment Financing District No. 33 Lamico Redevelopment, designation of boundaries and approval of the project plan. Seconded by Kiefer. Motion carried 7-0. Item: Creation of TID # 33 Lamico Redevelopment Tax Incremental Financing Criteria Score Sheet Redevelopment/Blight Elimination Lamico Criteria Maximum Points score 1. Presence of extraordinary development/redevelopment costs 25 such as: a. Remodeling/Rehabilitation/Demolition b. Environmental Remediation 25 c. Capital purchases d. Facility expansion e. Public Infrastructure 2. Project provides direct benefit to distressed areas through 25 blight elimination or redevelopment. 25 3. Projects that directly implement specific recommendations of 9 the City's strategic planning documents such as the Comprehensive Plan, Downtown Action Plan, Riverwalk Plan, 10 Vision Report, etc. 4. Historic Preservation or rehabilitation of a nationally or locally significant historic structure. 15 5. Quality of development and overall aesthetics (architectural, 3.5 site design, landscaping, etc) beyond that which is minimally 5 required by the Zoning Ordinance, 6. Environmental sustainability impacts such as higher 1 standards of building and site design, materials and energy efficiency. a. LEED certification, Energy Star, etc 5 b. Use of Green Infrastructure c. Solar and Wind energy production 7. Enhance the streetscape and pedestrian experience. 5 5 8. Proposed employment potential. 5 1 9. Projects that involve development that is targeted to 1.5 encourage an inflow of customers from outside the city or 5 that provides services or fill underserved markets in the City. Point Total must be greater than 50 points or Council waiver is 71 required 100 Tax Increment District #33 oil LAMICO Redevelopment Cily of%: District Boundary Oshkosh 4j, 1P - Legend EMTO #33 Boundary 0 2650 100 150 200 250 " Date: MondCy, Moy 22.2017 S 4 TIF NO. 33 CITY OF OSHKOSH D & F INVESTMENTS LLP LAMICO REDEVELOPMENT PO BOX 1130 601 OREGON ST PC: 06-20-17 OSHKOSH WI 54903-1130 OSHKOSH WI 54902-5965 LAMICO INC 673 CENTRAL ST OSHKOSH WI 54901-4454 MORGAN DAWES LLC 300 N MAIN ST 300 OSHKOSH WI 54901-4817 RIVER FRONT SENIOR APARTMENTS LLC 230 OHIO ST STE 200 OSHKOSH WI 54902-5825 MARION ROAD APARTMENTS LLC 230 OHIO ST 200 OSHKOSH WI 54902-5825 PARCEL F LLC PO BOX 1099 OSHKOSH WI 54903-1099 90 RIVERWAY LLC 90 RIVERWAY DR OSHKOSH WI 54901-3514 MERCURY MARINE PO BOX 1939 FOND DU LAC WI 54936-1939 REDEVELOPMENT AUTH CITY OF OSHKOSH PO BOX 1130 OSHKOSH W154903-1130 ANNEX 71 LLC 409 MASSACHUSETTS AVE SUITE 300 INDIANAPOLIS IN 46204 5 NV -IN 4 01 �ti �O ;a , — -- -------- , w0 . . . . . . . . a Y ARL A. . . . . . . . . . . .3 X" Wt 1 in 0,04 mi I in 214 it The City of Oshkosh creates and malritaIns GIS maps and data for its oun use. They may show the approximate relative location of property, boundaries and other feature from a variety of sources. Printing Date: 61812017 These map(sydatasets are provided for information purposes only and may not be sufficient or appropriate for legal, engineering, of surveying purposes. They are provided 'AS -IS' wifficut warranties of any kind and the City of Oshkosh assumes no liability for use or misuse. prepared by: City of Oshkosh, W1 0 --w �', P� A City ANENIL� . Oshkosh kGISTWninglPian Commission Site Plan Map TemWWeMan Comm:ss;on Re Fan Map Templatomd User. � M,