HomeMy WebLinkAbout50 W 6th St. Former Granary redevelopment agreement 2017DEVELOPMENT AGREEMENT
Document Number 1 Document Title
Development Agreement between City of Oshkosh, Wisconsin, a
Wisconsin municipal corporation, and 50 W 6th Street, LLC a
Wisconsin limited liability company
for redevelopment of the former Granary Restaurant at 50 West 6th A
Oshkosh, WI and other properties within the boundaries of
Tax Incremental District #32
Drafted by:
David Praska
Oshkosh, WI
Name and Return AVdM§N� V /
City Attorney's Office
Oshkosh, WI 54902-1130 (}L�
903-0010-0000 and
903-0011-0000 and
903-0019-0000
Parcel Identification No.
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This Development Agreement (Agreement) is entered into on the day of June, 2017
(Effective Date) by and between the City of Oshkosh, Wisconsin, a Wisconsin municipal
corporation (City), and 50 W 6�h Street, LLC, a Wisconsin limited liability company (Developer).
RECITALS
A. The Developer agrees to undertake the redevelopment of a former commercial, industrial,
and restaurant building into office and restaurant space. The redevelopment will have three
(3) primary components. The first redevelopment component is the rehabilitation of the
H.P. Schmidt Mill, also known as the "Granary Building," located at 50 West 6th Avenue
in the City of Oshkosh, Wisconsin. The second redevelopment component provides two
(2) nearby parking areas to serve the Granary building rehabilitation. One parking area
will be a new parking lot constructed southwest of the Granary Building on property that
will be purchased from the Oshkosh Redevelopment Authority ("Southwest Parking
Property"). The second parking area will be the reconstruction of an existing parking lot
east of the Granary building ("East Parking Property"). The third redevelopment
component is the upgrade of certain improvements within the public right-of-way adjacent
to the Granary Building and both parking lots; and,
B. The Developer has purchased the Granary Property and the East Parking Property. The
Developer has an option to purchase the Southwest Parking Property and has notified the
Oshkosh Redevelopment Authority that it will exercise this option; and
C. The City utilized Wis. Stats. §66.1105 (Tax Increment Law) and (i) created Tax Increment
District No. 32 (Granary Rehabilitation)(TIF District), and (ii) approved a project plan for
the redevelopment within the TIF District (TIF District Project Plan). The TIF District and
TIF District Project Plan were approved by the Common Council on May 23, 2017 through
Resolution 17-271; and,
D. The Granary Property, the Southwest Parking Area, and part of the right-of-way
improvements are located within the TIF District. The East Parking Area and part of the
right-of-way improvements are not located within. the TIF District. The right-of-way
improvements that are not located within the TIF District are, however, located either
adjacent to the TIF District and within one-half (1/2) mile of the TIF District; and
E. The Developer's ability to develop the TIF District Proj ect Plan is contingent upon the City
providing financial and other development incentive assistance to the Developer on the
terms set forth in this Agreement; and
F. The City finds it to be in the public interest to utilize tax incremental financing incentives
to assist the Developer to undertake the Overall Project within the TIF District in a manner
that is consistent with the terms and conditions of this Agreement; and
G. Funds used to provide the Developer with the tax incremental financing for the TIF District
Project Costs (TIF Funds) shall be raised solely from tax income generated from that part
of the Overall Project within the TIF District; and
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H. The Overall Project and the, Property uses contemplated by this Agreement are necessary
and desirable to serve the interests of the City and its residents by expanding the tax base
of the City, providing additional development and employment opportunities, and
providing a financing mechanism to expand and acquire necessary infrastructure, all
consistent with the purpose of a Tax Incremental District under Section 66.1105,
Wisconsin Statutes; and
I. The City finds that construction of the Overall Project, and fulfillment of the terms and
conditions of this Development Agreement are in the vital and best interest of the City and
its residents and fulfill a public purpose in accordance with state law.
AGREEMENT
IN CONSIDERATION of the Recitals and terms and conditions contained in this
Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:
1) DEFINITIONS. For purposes of this Agreement, the following terms shall have the
following meanings:
a) Administrative Costs:. All of the following costs and expenses relating to the District and
attributable to the Property: (i) professional services including, but not limited to, planning,
engineering, design, accounting, financial planning, and attorneys' fees and costs; and (ii)
reasonable charges for time spent by employees in connection with the implementation of
the Overall Project Plan and administration of the District. In lieu of annually calculating
the City's Administrative Costs to be deducted from the annual gross Tax Increment, the
parties agree that the City's Administrative Costs will be considered all or part of the ten
percent (10%) portion of the annual gross Tax Increment that remains after providing the
Developer the Available Tax Increment.
b) Affiliate: Any entity with a majority interest owned and controlled by the Developer, or
any entity of which Developer is either a subsidiary or a shareholder of the Developer.
Affiliate includes entities with which Developer merges, or into which Developer
consolidates, or which acquires all or substantially all of the common stock or assets of the
Developer.
c) Available Tax Increment: Tax Increment will be, or will be based upon, the Increment and
Tax Increment District Tax Rate provided to the City from the Wisconsin Department of
Revenue. Generally, the Available Tax Increment will be an amount equal to ninety
percent (90%) of the annual gross Tax Increment revenues actually received and retained
by the City which are generated by the Granary Property and Southwest Parking Property,
and improvements and personal property thereon, in the immediately preceding calendar
year.
d) Capital Contribution: The Developer's capital investment in the Overall Project of an
estimated Three Hundred Ninety Three Thousand Three Hundred Eighty -Four and No/100
Dollars ($393,384.00). Capital investment may be in the form of Real Property,
commercially reasonable values for architectural services, general contracting, investment
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June 8, 2017
consulting services, and developer's fees, whether or not actually billed provided the
aforementioned are performed by the Developer or Members of the Developer, and/or
personal cash investments. In no case will the Capital Contribution be less than the 15% of
the total project costs as required by the City of Oshkosh TIF Policy.
e) City Contribution: Payments provided by the City to the Developer from future Available
Tax Increments as set forth in this Agreement. The amount payable to the Developer will
be the Available Tax Increment. The total amount may vary based upon final costs,
assessments, increment, Wisconsin. Department of Revenue certifications, and City
Contribution Adjustment(s). However, the estimated City Contribution as of the date of
this Agreement is executed is expected to be $803.187.08 (a present value amount of
$369,105.00) over the twenty-seven (27) year life of the District.
f) Completion Date: The date the Overall Project will be completed, which will be October
1, 2017
g) East Parking Property: A separate, 'V' -shaped, parcel east of the Granary Property
adjacent to and west of the intersection of West 6" Avenue and West 5h Avenue. This
parcel is outside of the TIF District and will be reconstructed and continue to be used as
private parking serving the uses of the Granary Property as well as use by other adjacent
businesses. Tax Parcel Number 90300110000
h) East Parking Project Plan: That part of the Overall Project Plan involving the rehabilitation
of the East Parking Property, and will include resurfacing of the existing parking lot,
reconstructing ingress and egress, constructing defining boundaries for the parking lot, and
landscaping
i) East Parking Project Costs: The Developer's costs and expenditures related to the East
Parking Project Plan in the amount of $29,400. The East Parking Project Plan is not within
the TIF District.
j) Expiration Date: The date of termination of the TIF District under Wis. Stat. §66.1105(7).
k) Granary Property: A parcel at the northeast quadrant of the intersection of West 6h Avenue
and Nebraska Street containing the historic H.P. Schmidt Mill building and newer addition
that was most recently used for a number of years as the Granary restaurant. This parcel
is within the TIF District. Tax Parcel Number 90300100000.
1) Loan: One or more loans obtained by the Developer to fund Overall Project Costs
estimated to be in the amount of Eight Hundred Thousand. One Hundred and Twelve and
No/100 Dollars ($800,112.00).
m) Overall Project: Developer's construction and rehabilitation project, both inside and
outside of the TIF District. Includes rehabilitating the Granary Property, constructing a
surface parking lot at the Southwest Parking Property, rehabilitating the East Parking
Property, and street improvements within the public right-of-way.
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n) Overall Project Costs: Total costs and expenditures, including capital expenditures,
invested in the Overall Project. Overall Project Costs include preliminary expenditures
(such as architectural, engineering, surveying, soil testing and similar costs that are
incurred in connection with the construction of the Project) and all other direct and indirect
costs of development of the Overall Project in accordance with the Overall Project Plans.
The Overall Project Costs include costs expended both within the TIF District and outside
of the TIF District.
o) Overall Project Plans: The final detailed plans and specifications for all components
comprising the Overall Project to be undertaken on the Granary Property, the Southwest
Parking Property, the East Parking Property, and within the public right-of-way. Legal
description is included as Exhibit A. These Overall Project Plans, including components
both inside and outside of the TIF District, were included as the Overall Project Plan
(Exhibit B) approved by the Common Council on May 23, 2017, through Resolution 17-
271.
p) Payment Dates: The date that the City Contribution will be paid to the Developer, which
will begin on November 1, 2019, and made on November 1 of each year after that provided
the TIF District remains open and Available Tax Increment exists.
q) Public Right -of -Way Project: That part of the Overall Project that will occur within the
public right-of-way, or will occur on an easement granted to the City, for the purpose of
constructing public parking, sidewalks, streets with curbing, and streetscape. The Public
Right -of -Way Project will occur both inside and outside of the TIF District, and will be
described in more detail within a separate Development Agreement
r) Public Right-of-W4y Project Costs: The Developer's costs and expenditures for the Public
Right -of -Way Project in the estimated amount of $108,400. The Public Right -of -Way
Project will be the subject of a separate Development Agreement. The Costs associated
with this particular project, both labor and materials, will be a donation from the Developer
to the City and therefore not part of any development incentive subject to the City
Contribution.
s) Project Costs: Regardless of the particular part or component of the Overall Project Plan,
the Developer's costs and expenditures includes the investments by the Developer relating
to the a particular or Overall Project as set forth on Exhibit C, which is attached and
incorporated into this Agreement. Project Costs shall include: (i) parking lot
reconstruction; (ii) Granary Building rehabilitation; (iii) costs for storm water management
facilities located on or serving the various properties; (iv) renovations to the historical
building and more recent addition for the creation of office space and a restaurant; v) a five
percent (S%) architectural and ten percent (10%) general contractor fee which shall apply
even if those tasks are performed by the Developer; and, (vi) Administrative Costs. For
clarity, these costs include all capital expenditures (or expenditures that could be treated as
capital expenditures) and preliminary expenditures, such as architectural, engineering,
surveying, soil testing and similar costs that are incurred in connection with the Overall
Project. The City and Developer agree that the Overall Project Costs listed in Exhibit C
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June 8, 2017
are estimates only, and that upon completion of the work described on Exhibit C, the parties
shall prepare and attach to this Agreement a revised Exhibit C setting forth actual Costs.
t) Property Tax Increment Base: The aggregate value, as equalized by the Wisconsin
Department of Revenue, of the Property as of January 1, 2018, with the actual, specific
value being $113,700.00.
u) Restrictive Covenants. Covenants in addition to those normally identified on Warranty
Deeds, or in addition to those required by title insurance, which the City will require be
placed on the City parcel at the time it is conveyed to the Developer. The subject of
covenants are the restriction on conveying real property within the TIF District to tax-
exempt entities.
v) Southwest Parking Property: A parcel at the southwest quadrant of the intersection of West
6th Avenue and Nebraska Street. The parcel is vacant after the Oshkosh Redevelopment
Authority previously purchased it and removed all structures. The Developer will purchase
the parcel from the RDA and develop it into a surface parking lot serving the Granary
Property. This parcel is within the TIF District. Tax Parcel Number 90300190000
W) TIF District: Oshkosh Tax Incremental District No. 32 (Granary Rehabilitation)
x) TIF District Project: That part of the Overall Project that will occur within the TIF District
Boundaries and within the public right-of-way provided the Public Right -of -Way Project
is within one-half (1/2) mile of the TIF District.
y) TIF District Project Costs: That part of the Overall Project Costs that are spent inside the
TIF District boundaries or, if a public improvement, within the public right-of-way within
one-half (1/2) miles from the TIF District Boundaries. Includes costs for the Granary
Property, the Southwest Parking Property, and improvements within the public right-of-
way.
ight-ofway. The estimated TIF District Project Costs are $1,482,802, with $54,600 of that amount
to be public right-of-way improvements to be donated to the City and described in a
separate Development Agreement, and the remaining $1,428,202 invested in the private
property within the TIF District that warrants the City Contribution.
z) Tax Increment: As defined in Wis. Stat. §66.1105(2)(i) except limited to the Tax Increment
attributable to the Property and the improvements on the Granary Property and the
Southwest Parking Property.
2) CITY'S OBLIGATIONS.
a) Sale of Property. The Developer holds an option to purchase the Southwest Parking
Property from the Oshkosh Redevelopment Authority. The Developer has notified the City
and the RDA that it will exercise that option. The City and RDA shall follow through with
the sale of this Property consistent with the terms of the Option Agreement and this
Agreement.
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b) City Contribution.
i) The City will provide future payments to the Developer to assist with TIF District
Project Costs from future Available Tax Increments, to the extent that such Available
Tax Increments exist, and such payments are compliant with this Agreement and all
applicable laws. These payments, to be known as the City Contribution, shall be
payable beginning in 2019, or when such Tax Increments become available for
payment, whichever is later. The City Contribution will be equal to ninety percent
(90%) of the Tax Increment attributable to the Granary Property and the Southwest
Parking Property that is actually collected each year based on the incremental value
as certified by the Department of Revenue.
ii) The City Contribution shall be first paid to the Developer on or about November 1,
2019, and each November 1 thereafter to the extent such Available Tax Increment
exists. The City's obligation to make the City Contribution shall end and expire as of
the earlier of (i) the termination date of the District, or (ii) the receipt by Developer of
the total approved City Contribution. A pro forma City Contribution calculation is
attached as Exhibit D and fully incorporated herein.
iii) City Contributions shall be solely from Available Tax Increment attributable to the
Granary Property and the Southwest Parking Property that is actually received by the
City as certified by the Department of Revenue. In no event shall the City's payment
to the Developer exceed the total tax collected for these two Properties. The City
Contribution shall be a special and limited obligation of the City and not a general
obligation debt of the City. The City covenants and agrees, however, not to utilize
any Available Tax Increment received with respect to the Granary Property and the
Southwest Parking Property during any year for any purpose other than payment of
the City Contribution, unless and until the City has paid the City Contribution in full
for such year.
iv) The Developer acknowledges that, as a result of the special and limited nature of the
City's obligation to pay the City contribution, the Developers' receipt of the City
Contribution depends on various factors including, but not limited to, future mill
rates, changes in the assessed value of the property within the TIF District, failure of
the Project to generate Tax Increments at the rate expected by the Developer, changes
in the Tax Increment Law, and other failures beyond the City's and/or the
Developer's control.
v) The City shall have no obligation to make the City Contribution to the Developer
unless and until the Developer has made all payments owed to the City by the
Developer for any real estate taxes, personal property taxes, special assessments, and
special charges for any property it owns within the City.
c) City Contribution Adjustment. The City Contribution, whether past or future, may be
adjusted as described in this section.
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June 8, 2017
i) The City Contribution amount is based upon the pro forma ten (10) year Internal Rate
of Return ("IRR.") submitted by the Developer to the City, a copy of which is attached
hereto as Exhibit F. Developer and the City agree that if the TIF District Project's
performance materially exceeds the pro forma IRR, the City Contribution may be
adjusted pursuant to this Section.
ii) On or before the thirtieth (30th) day following the tenth (10th) anniversary of the
Completion Date or the date the Granary Property and the Southwest Parking Property
as a whole is sold, conveyed, or transferred, whichever comes first, (the "Test Date"),
Developer shall provide the City with copies of all internally prepared financial
statements (kept in accordance with generally accepted accounting principles) and a
complete annual cash flow update based on actual income and expenses (in a format
consistent with the example in Exhibit F) for the Project for the Period from the
Completion Date to the Test Date. Within ten (10) business days thereafter, Developer
and the City shall, using information from the financial statements and cash flow
update, and the methodology utilized to calculate the original Project pro forma IRR
(as set forth on Exhibit F) and applying the Approved Assumptions (as defined below)
to supply any information that is not known as of the Test Date, calculated the actual
IRR as of the Test Date. In the event that the Test Date occurs due to a sale,
conveyance, or transfer, then a second, subsequent, Test Date will occur on the tenth
(101h) anniversary of the Completion Date. For clarification, conveyances due to the
conversion of the Property to condominiums or similar ownership structures shall not
cause a Test Date to arise.
iii) In the event that the actual IRR calculated on the Test Date as proposed based upon
the updated analysis exceeds 15 percent (15%) annual IRR over the Term (the
"Approved Contribution"). In the event that the City has already paid Developer more
than the Approved Contribution as of the Test Date, Developer shall refund such excess
City Contribution to the City within ninety (90) days of the recalculation date.
iv) As used herein, the approved assumptions shall be according to the market convention
at the time of the sale/Test date, which typically includes the terminal capitalization
rate, realtor commission and all other assumptions agreed upon by the Developer and
the City as of the date the pro forma IRR is updated, and absent such agreement, as
determined by an independent MAI appraiser with not less than ten (10) years'
experience appraising commercial and multi -family properties in the Appleton -
Oshkosh -Neenah metropolitan statistical area. All costs for the independent appraiser
shall be shared equally by the city and the Developer.
d) Annual Acknowledgement of City Contribution. The City covenants and agrees as
follows; (a) the City Manager or his designated representative shall include the payment of
the entire Available Tax Increment for each year included during the Payment Term in the
applicable budget request recommendation for the following year's budget, (b) if the City's
annual budget does not in any year provide for appropriation of Available Tax Increment
sufficient to make a payment due to Developer in that year, the City will use its diligent,
good faith efforts to notify the Developer of that fact at least thirty (30) days prior to the
date the budget is presented to the City Common Council for final approval, and (c) except
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for Administrative Costs, funds in the special fund of the Property attributable to the
Available Tax Increment generated from the Granary Property and Southwest Parking
Property (and all improvements and personal property thereon) shall not be used to pay
any other project costs of the District until the City has applied to the payment due
hereunder, in any year, the Available Tax Increments generated by these Properties (and
all improvements and personal property thereon) that this Agreement provides will be
applied to payment due hereunder.
e) City Contribution Placed in City Budget. Developer acknowledges that, subject to the
provisions of this Agreement: (i) all payments of Available Tax Increment are subject to
the future annual appropriation of said amounts by the City Common Council to payment
due hereunder; (ii) only the Available Tax Increments generated by the Property (and all
improvements and personal property thereon) shall be used to make payments to the
Developer; and (iii) if, on November 1, 2044, the amount of the Available Tax Increments
to be paid under this Agreement proved insufficient to pay the entire City Grant, the City
shall have no further obligation or liability therefor.
f) City Contribution Conditions. The payment of the City Contribution shall be subject to
the following conditions and limitations:
i) On each Payment Date during the Payment Term and subject to the provisions of this
Agreement, the City shall pay a portion of the City Contribution equal to the amount
of Available Tax Increment appropriated by the City Common Council for the
payment due that Payment Term year.
ii) The City shall take no action to initiate the termination or dissolution of the TIF District
early prior to November 1, 2044, unless the City first pays the outstanding balance of
the City Contribution, subject to the provisions of this Agreement, including, but not
limited to, the annual appropriation of the City Common Council of such amounts.
iii) Attached hereto as Exhibit E is the City's projection of revenues and expenditures for
the TIF District over its term, with the City Contribution labeled as "Developer
Incentive Payments" thereon. Exhibit E is provided for illustrative purposes only, and
Developer acknowledges that the amounts set forth thereon are estimates only.
g) City Contribution not to be Considered Indebtedness. In no circumstances shall any
amount of the City Contribution owed or to be paid to the Developer as described in this
Agreement be considered an indebtedness of the City. The obligation of the City hereunder
is limited to the Available Tax Increment as certified by the Wisconsin Department of
Revenue which is available and appropriated by the City Common Council for payment of
such amounts and only to the extent as provided in this Agreement. Amounts to be paid
through this Agreement shall not count against the City's constitutional debt limitation, and
no taxes will be levied for its payment or pledged to its payment other than any Tax
Increment to be appropriated for that purpose.
June 8, 2017
3) DEVELOPER'S OBLIGATIONS.
a) Development of the Overall Project. Developer agrees to complete the Overall Project,
which includes TIF District Projects including the rehabilitation of the Granary Property,
construction of a parking lot on the Southwest Parking Property, and public right-of-way
improvements. The Developer also agrees to complete a related project that is not within
the TIF District, which is the reconstruction of the East Parking Property. Developer
will invest $1,428,201 for TIF District projects not including public right-of-way
improvements, and invest $121,950 for public right-of-way improvements to be donated
and subject to a separate Development Agreement, and invest $29,000 for the
reconstruction of the East Parking Property.
b) Project Construction. Developer shall commence construction of the Overall Project
within 30 days following the Effective Date of this Agreement. Once commenced,
Developer shall diligently pursue completion of construction of the Overall Project in
accordance with applicable City ordinances and City -approved plans so that construction
will be completed by October 1, 2017.
c) Costs and Expenses. The Developer shall be responsible for all costs related to this
Agreement and any other work to be performed under this Agreement, including all
engineering, inspections, materials and labor, and all environmental remediation.
Developer shall be responsible for payment of all City fees including without limitation
impact fees, building permit fees, zoning and sign permit fees, storm water, electrical and
plumbing fees.
4) APPROVALS AND DEVELOPMENT STANDARDS.
a) Approval of Public Bodies. The Developer shall obtain all approvals and consents
required by the City to construct and use the Overall Project. This includes all necessary
approvals and consents from the City and all other applicable governmental departments,
divisions, bodies, councils, boards, and parties having a right to control, permit, approve,
or consent to the construction and use of the Overall Project.
b) Acceptance of Agreement. The act of accepting this Agreement by the City shall not
obligate the City to grant any additional approvals, including, but not limited to, permits,
variances, exceptions, or conditional use permits, or approve any building or use the City
determines not to be in compliance with the applicable municipal codes and ordinances
of the City. The City agrees to proceed in good faith in connection with the issuance or
grant of all such approvals, consents, permits, certificates, and any other documents as
may be necessary or desirable in connection with the development, utilization, and
operation of the property comprising the Overall Project, and to act reasonably and
expeditiously and in cooperation with the Developer. It is understood and agreed that
this provision is not intended to limit or waive any right of the City.
c) Development Requirements. The Developer shall use the Property for the approved
Overall Project and in accordance with the provisions of this Agreement, and all other
applicable federal, state, county, and City laws and regulations.
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5) TAX EXEMPT STATUS.
a) Importance of Taxable Status. Developer acknowledges that the City is relying solely
upon the real estate taxes generated within the TIF District, and particularly generated
from the Granary Property and the Southwest Parking Property, to calculate the Available
Tax Increment necessary to fund the City Contribution.
b) Maintaining Taxable Status. Throughout the period of time from formation until the
termination of the TIF District, neither the Developer, nor Affiliate, related entity, or any
successor in interest to the Property will pursue, assist, support, or be involved in any
federal, state, or local, judicial, legislative, or regulatory action or process that seeks,
directly or indirectly, to prohibit or completely set aside the taxability of all or any
portion of the Granary Property or the Southwest Parking Property on any basis
whatsoever. The prohibition to limit taxability shall not include efforts by a property
owner to challenge value of a property assessment, as any property owner is otherwise
allowed by law. This prohibition and covenant regarding tax exempt status shall be
continuous during the term of the TIF District, but shall expire upon the termination of
the TIF District.
c) No Conveyance to Tax Exempt Entity. During the period of time that commences upon
the date of this Agreement and terminates at the end of the District, neither the Property,
the Overall Project nor any part thereof or interest therein shall be sold, transferred,
leased, assigned, gifted, owned, used, or conveyed in any way to any person, partnership,
organization, or entity that is all or partially exempt from federal or State of Wisconsin
income taxes or real or personal property taxes, without the express prior written consent
of the City. The City is under no obligation to consent to the conveyance of the Property
to a tax exempt entity and retains sole and absolute discretion to withhold such consent
for any reason it deems is in its best interests.
d) CityOptions Upon Breach. In the event that the aforementioned tax exempt covenants
are breached, the City may, at its discretion, either pursue any legal remedy allowed or,
alternatively, may declare that any obligations otherwise present to continue with the City
Contribution is null and void and that its payments to date satisfy all such obligations.
e) Covenant Termination. Notwithstanding anything to the contrary contained herein, this
Restrictive Covenant shall automatically terminate without notice upon the termination of
the TIF District and without recording of additional terminations or releases. The City
may, at its discretion, file a notice of termination or release, or similar document, at the
expiration of this TIF District.
6) DEVELOPER WARRANTIES AND REPRESENTATIONS. The Developer hereby
warrants, represents, and covenants to the City:
a) Valid Wisconsin Entity. The Developer is a duly organized and existing Limited
Liability Company in the State of Wisconsin and authorized to transact business in the
State of Wisconsin.
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June 8, 2017
b) Transaction Authorized. The execution, delivery, and performance of this Agreement
and the consummation of the transactions contemplated hereby have been duly
authorized and approved by the Developer, and no other or further acts or proceedings of
the Developer or its members, shareholders, directors, or officers are necessary to
authorize and approve the execution, delivery, and performance of this Agreement, and
the matters contemplated hereby. This Agreement, the exhibits, documents, and
instruments associated herewith and made a part hereof, have, if applicable, been duly
executed and delivered by the Developer and constitute the legal, valid, and binding
agreement and obligation of the Developer, enforceable against the Developer in
accordance with their respective terms, except as the enforceability thereof may be
limited by applicable bankruptcy, insolvency, reorganization, or other similar laws
affecting the enforcement of creditors' rights generally, and by general equitable
principles.
c) Lawsuits. There are no lawsuits filed or, to the knowledge of the Developer, pending or
threatened against the Developer that may in any material way jeopardize the ability of
the Developer to perform its obligations hereunder.
d) Sufficient Funding Sources. The Developer has sufficient funds through equity and debt
financing sources to continuously operate, maintain, and fulfill the Overall Project.
e) Documentation. The Developer shall provide, prior to execution of this Agreement, a
(i) a certificate of good standing/current status issued by the appropriate government
agency of the state of the Developer's organization, and (ii) certificate of incumbency and
resolutions of the limited liability company or corporation which provide for who is
authorized to sign on behalf of the Developer and that the Developer is duly authorized to
enter into this Agreement and undertake all of the obligations under this Agreement
together with all other agreements, documents, and contracts required to be executed in
connection with the transactions arising out of this Agreement.
7) CITY WARRANTIES AND REPRESENTATIONS. The City hereby warrants and
represents to the Developer that:
a) Cily Authority. Subject to the approval of City Common Council, the execution,
delivery, and performance of this Agreement and the consummation of the transactions
contemplated hereby have been duly authorized and approved by the City, and no other
or further acts or proceedings of the City or its officials are necessary to authorize and
approve the execution, delivery, and, subject to annual appropriation by the City
Common Council, performance of this Agreement, and the matters contemplated hereby.
This Agreement, the exhibits, documents, and instruments associated herewith and made
a part hereof, have, if applicable, been duly executed and delivered by the City and
constitute the legal, valid, and binding agreement and obligation of the City, enforceable
against the City in accordance with their respective terms, except as the enforceability
thereof may be limited by applicable law.
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June 8, 2017
b) Special Assessments. No special assessments or other charges of any kind shall be
assessed or levied against or accrue or come due from the Developer or the Property with
respect to the Property Project Costs. Notwithstanding the previous sentence, special
assessments may be assessed if certain actions or improvements that are related to the
Overall Project occur within the public right-of-way. These actions or improvements
may include, as examples, curb cuts, driveway aprons, sidewalks, or similar projects.
The City acknowledges, however, that the Developer will be undertaking improvements
in the public right-of-way at its expense, with the labor and materials for such public
improvements to be donated and more particularly subject to the terms of a separate
Development Agreement.
8) CONDITIONS TO/LIMITATIONS ON THE OBLIGATIONS.
a) Release of Obligations. The existence of certain conditions and/or limitations identified
in this paragraph may result in the suspension or termination of the parties'
responsibilities pursuant to this Agreement, or the suspension or termination of the
performance of any and all of the parties' obligations under this Agreement, without
recourse against the other party.
b) Non -Certification. The Wisconsin Department of Revenue fails to certify all or any portion
of the creation of the District or the Overall Project Plan; provided, however, the City shall
first make all reasonable efforts in good faith to cure such Non -Certification; or
c) Involuntary Termination. The District is involuntarily terminated or dissolved; provided,
however, the City shall first make all reasonable efforts in good faith to cure such
Involuntary Termination.
9) DEFAULT.
a) Event of Default. The occurrence of any one or more of the following events shall
constitute a default of the terms of this Agreement:
i) Failure to Construct the Overall Project. The Developer materially fails to construct
and complete the Overall Project in a manner that is consistent with the terms of this
Agreement after the City has first provided Developer with written notice of such
failure and provided the Developer with a reasonable opportunity to cure the same; or
ii) Failure to Pay Taxes. The Developer fails to pay any real estate tax, personal property
tax, or any special assessment levied or imposed by the State, County, or City against
all or any portion of the property that is part of the Overall Project, or against any other
property within the City that is owned by the Developer, or against the Developer entity
itself if such tax is not attached to any property. This provision shall become effective
if the Developer fails to cure such failure within ninety (90) days after the City provides
written notice of such failure. The Developer shall have the right to contest the same
in accordance with applicable law. Any payments otherwise due to the Developer may
be held in abeyance by the City until this issue is resolved; or
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June 8, 2017
iii) Tax Exemption. All or any portion of the Property becomes owned by any entity
having a tax exempt status that would cause all or any part of the Property to become
tax exempt; or
iv) Breach of Agreement. It shall be considered a breach of this agreement if either party
breaches any representation, warranty, covenant, or promise made in this Agreement,
or if it is proven that any material document or information provided as a predicate to
this Agreement was false in a material way as of the time it was given or provide.
However, the breaching party shall be provided written notice of such breach and that
party shall not be in default unless it has failed to cure such breach within sixty
(60) days of such notice. The breaching party shall have a longer period to cure a
breach if it has begun to cure such breach in good faith, is diligently continuing to cure
such breach, and the actions necessary to cure the breach cannot be reasonably
completed within the initial time -frame.
v) Insolvency. The Developer shall: (i) become insolvent or generally not pay, or be
unable to pay, or admit in writing its inability to pay, its debts as they mature; or (ii)
make a general assignment for the benefit of creditors or to an agent authorized to
liquidate any substantial amount of its assets; or (iii) become the subject of an order for
relief within the meaning of the United States Bankruptcy Code, or file a petition in
bankruptcy, for reorganization or to effect a plan or other arrangement with creditors;
or (iv) have a petition or application filed against it in bankruptcy or any similar
proceeding, and such petition, application or proceeding have not been dismissed for a
period of ninety (90) days or more, or the Developer shall file an answer to such a
petition or application, admitting material allegations thereof; or (v) apply to a court
for the appointment of a receiver or custodian for any of its assets or properties or have
a receiver or custodian appointed for any of its assets or properties, with or without
consent, and such receiver shall not be discharged within ninety (90) days after its
appointment; or (vi) adopt a plan of complete liquidation of its assets
b) Remedies Upon Event of Default. Whenever an Event of Default occurs as described in
this Agreement, the City may take one or more of the following actions, in the City's sole
and absolute discretion:
i) Pursue any or all of the rights and remedies available to the City at law and/or in equity
against the Developer and/or any other interested entity, including but not limited to
specific performance.
ii) Suspend or terminate the performance of any and all of its undertakings and obligations
under this Agreement, including, but not limited to, making any further payments for
the City Contribution, or any other lawful action under this Agreement. The City may
elect to withhold further payments or performance pending the resolution any disputes
regarding Developer's Default.
13
June 8, 2017
iii) Take any action, including legal or administrative action, at law or in equity, which
may appear necessary or desirable to the City to enforce performance and observance
of any term, obligation, or covenant of the Developer under this Agreement or to seek
remedy for its breach. Such rights and remedies shall not be exclusive of any other
remedy or remedies, and such rights and remedies shall be cumulative and shall be in
addition to every other right and remedy given under this Agreement or now or
hereafter existing at law or in equity or by statute. Notwithstanding the foregoing, if
an Event of Default occurs, the City's exclusive remedies shall be as set forth in this
Agreement: provided, further, that, if Developer fails to complete construction of the
Project by no later than October 1, 2017, City shall have the further remedy to recover
from Developer any costs or expenses related to the Overall Project previously paid by
City.
10) INSURANCE.
a) Required Coverage. The Developer shall maintain the following insurance policies
issued by insurers with a rating of at least "A-" and in a fmancial size category of at least
"X" as established by A.M. Best Company and licensed to do business in the State of
Wisconsin: (i) property insurance on the Property with coverage limits equal to the full
replacement cost of the building and contents; (ii) commercial general liability insurance
with limits of $1,000,000 per occurrence and $5,000,000 in the aggregate; (iii) statutory
worker's compensation insurance; and (iv) automobile liability insurance with a
combined single limit of $1,000,000.
b) Notification before Cancellation. Each insurance policy shall require the insurer to
provide at least thirty (30) days prior written notice to the City of any material change or
cancellation of such policy.
11) NONDISCRIMINATION. The Developer shall not use the Overall Project in any manner to
permit discrimination or restriction on the basis for age, creed, ethnic origin or identity, color,
gender, religion, marital status, age, handicap, or national origin, and the Developer shall
construct and operate the Overall Project in compliance with all laws, rules, regulations, and
ordinances relating to discrimination or any of the foregoing.
12) NO PERSONAL LIABILITY. Under no circumstances shall any Common Council member,
official, Director, Member, attorney, employee, or agent of a party have any personal liability
arising out of this Agreement, and no party shall seek or claim any such personal liability.
13) CITY AUTHORIZATION. The execution of this Agreement by the City is authorized by
Common Council Resolution No. /7- 9.6` dated June 13, 2017.
14) MISCELLANEOUS PROVISIONS.
a) Term. Unless otherwise terminated by the terms of this Agreement, above, the term of
this Agreement shall begin as of the Effective Date and shall continue until November 1,
2044.
14
June 8, 2017
b) Restriction on Assignment of Agreement.
i) Completion of Overall Project. Until the Overall Project is completed, the Developer
shall not convey any property comprising the Overall Project or assign any part of this
Agreement without the City's consent. The City shall not have any obligation to
consent to any such a transfer, conveyance, or assignment and consent may be withheld
solely at the City's discretion.
ii) Subsequent Transfers of Property. The Developer may transfer, convey, or assign all
or part of real property subj ect to this Agreement after completion of the Overall Proj ect
without the consent of the City provided the subsequent owner agrees to assume all of
the Developer's obligations under this Agreement. The terms of this Agreement will
attach to the property that comprise the Overall Project. The recording of this
Development Agreement with the Winnebago County Register of Deeds shall act as
notice to all subsequent owners of the property and their acceptance of these terms.
c) Tax Exempt Organizations. For and in consideration of this Agreement and the nature of
the District, the Developer and all successors in interest acknowledges and agree that,
during the term of the TIF District, neither the Property nor any part thereof or interest
therein shall be sold, transferred, leased, assigned, gifted, owned, used, or conveyed in
any way to any person, partnership, organization, or entity that is all or partially exempt
from federal or State of Wisconsin income taxes or real or personal property taxes,
without the express prior written consent of the City, which such consent may be
withheld in the City's sole and absolute discretion.
d) Delay in Exercise of Rights Not Waiver. No delay or omission to exercise any right or
power accruing to the City or the Developer upon any default by the other party shall
impair any such right or power or shall be construed to be a waiver thereof, but any such
right and power may be exercised from time to time and as often as may be deemed
expedient as long as the default is continuing.
e) Written Waiver Required. No waiver, amendment, or variation of the terms of this
Agreement shall be valid unless it is in writing and signed by authorized representatives
of the City and of the Developer. Such written waivers, amendments, or variations shall
be narrowly construed and applied only to the extent specifically set forth in writing.
f) Force Majeure. A party shall be excused from its obligations under this Agreement if and
to the extent and during such time as the party is unable to perform its obligations or is
delayed in doing so due to events or conditions outside of the party's reasonable control
(each a "Force Majeure Event") based solely upon acts of God, war, fire, or other
casualty, riot, civil unrest, extreme weather conditions, terrorism, strikes, and labor
disputes. Upon the occurrence of a Force Majeure Event, the party incurring such Force
Majeure Event will promptly give notice to the other party, and thereafter the parties shall
meet and confer in good faith in order to identify a cure of the condition affecting its
performance as expeditiously as possible.
15
June 8, 2017
g) TIF District Information. As soon as practicable, but no later than December 15 of each
calendar year, the City shall provide to the Developer the information pertaining to the
Available Tax Increment for the calendar year of the request; provided, however, the City
is only required to submit information in its possession and is not required to reply to any
request prior to December 15 of any calendar year.
h) Time of the Essence. Time is considered to be of the essence with regard to all dates and
time periods set forth herein and incorporated herein.
i) Headings. While the Recitals are incorporated into this Agreement, descriptive headings
are for convenience only and shall not control or affect the meaning or construction of
any provision of this Agreement.
j) Delivery of Notices. Any notice required by this Agreement shall be given in writing,
signed by the parry giving notice, personally delivered, mailed by certified or registered
mail, return receipt requested, sent by overnight delivery service, or faxed to the parties
respective addresses as follows, provided any notice given by facsimile is also given by
one of the other methods:
To The City: City of Oshkosh
Attn: Director of Community Development
215 Church Avenue
Post Office Box 1130
Oshkosh, WI 54903-1130
Facsimile No. 920-236-5053
With a copy to: City of Oshkosh
Attn: City Attorney
215 Church Avenue
Post Office Box 1130
Oshkosh, WI 54903-1130
Facsimile No. 920-236-5106
To Developer: 50 W 6th Street, LLC
Attn: Andy Dumke
230 Ohio Street, Suite 200
Oshkosh, WI 54902
Facsimile No. 920-426-4606
With a copy to:
•M
Oshkosh, WI
Facsimile No. 920-
16
June 8, 2017
Notices shall be considered to be delivered upon personal delivery, or upon the first
business day after certification or registration, the first business day after deposit with the
overnight delivery service, or upon acknowledgement of receipt by facsimile or electronic
mail (provided notice is promptly sent by one of the other methods).
k) Entire Agreement. This Agreement and all other documents and agreements expressly
referred to herein, contain the entire agreement between the Developer and the City with
respect to the matters set forth herein. This Agreement may be modified only in writing
signed by all parties.
1) Law Applicable. This Agreement shall be construed in accordance with the internal laws
of the State of Wisconsin. Venue of disputes shall be in Winnebago County or within
judicial districts in which Winnebago County is located.
m) Originals and Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original.
n) Amendments to Agreement. This Agreement shall not be amended orally but only by the
written agreement of the parties signed by the appropriate representatives of each party
and with the actual authority of each party.
o) Limitation on Liability. The parties acknowledge and agree that in carrying out any of
the provisions of this Agreement or in exercising any power or authority granted to them
thereby, there shall be no personal liability of the either parties' officers, members,
agents, employees, or representatives, it being understood and agreed that in such matters
they act as agents and representatives of the applicable party.
p) No Partnership. This Agreement specifically does not create any partnership or joint
venture between the parties, or render any party liable for any debts or obligations of the
other party.
q) Recording of Agreement. The parties agree that this Agreement will be recorded with the
Winnebago County Register of Deeds or, at the City's option a memorandum of this
Agreement, including reference to any Restrictive Covenants, may be recorded in lieu of
the full Agreement. The Developer shall upon request of the City execute and deliver
any such memorandum or other document in connection with such recording.
r) Obligations Run with the Land. The obligations under this Agreement and all consents,
waivers, restrictions, and other requirements as set forth in this Agreement, shall be
deemed to be covenants running with the land and shall be binding upon the Property and
the parties' successors, assigns, and other transferees. The obligations of this Agreement
shall end upon the termination of the TIF District, except that in the event a separate
storm water maintenance agreement is not entered into between the parties at the time the
District is terminated, then this Agreement shall continue until the separate storm water
agreement is executed and filed with the Winnebago County Register of Deeds.
17
June 8, 2017
s) Severance. If any portion of this Agreement is deemed invalid or unenforceable by a
court of competent jurisdiction, then the remainder of this Agreement shall remain in full
force and effect and enforceable to the fullest extent permitted by law.
t) Third Parties. This Agreement is made for the exclusive benefit of the parties to this
Agreement, their successors in interest, and their permitted assignees. This Agreement is
not for the benefit of any other persons, as third party beneficiaries or otherwise, and this
Agreement shall not be deemed to have conferred any rights, expressed or implied, upon
any other party, except as described in this Agreement.
u) Neutral Construction. This Agreement is the result of negotiations between the parties
and each party had sufficient opportunity to have reviewed the final terms with legal
counsel. No term, covenant, or provision herein., or the failure to include a term,
covenant, or provision shall be construed against any party because that party may have
been involved with drafting any portion of this Agreement including attachments hereto.
15) OTHER APPROVALS.
In addition to any approvals required under this Agreement, the Developer shall be required
to obtain all approvals, consents, and licenses as may be required by any governmental or
non-governmental authority in connection with the Overall Project, including, without
limitation, all building permits, Overall Project Plan approvals, storm water approvals, and
zoning approvals. The Developer's compliance with the terms of this Agreement shall not
relieve the Developer from complying with all applicable federal, state and local laws, rules,
regulations and ordinances in connection with the Overall Project and to the extent any
governmental or non-governmental entity imposes different or more restrictive conditions on
the Developer, or the Overall Project, compliance by the Developer with the terms of this
Agreement shall not relieve the Developer from complying with such different or more
restrictive conditions. Likewise, any less restrictive conditions imposed on the Developer, or
the Overall Project by any governmental or non-governmental authority shall not relieve the
Developer, or the Overall Project from complying with all of the terms and conditions of this
Agreement.
[Signature Pages Follow]
18
June 8, 2017
IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the
date stated in the first paragraph of this Agreement.
50 W 6TH STREET, LLC
BY: el_'�
Andrew llumke, Managing Member
STATE OF WISCONSIN
} ss.
COUNTY OF WINNEBAGO }
Personally came before me this c, —day of 2017, the
above-named Andrew Dunike, to me known to be the person who executed and acknowledged the
foregoing instrument.
Notary Public, 'State of Wisconin
My Commission expires:
19
June 8, 2017
Approved as to form:
1111
0 It, Rumam ml
STATE OF WISCONSIN I
Iss
COUNTY OF WINNEBAGO }
CITY OF OSHKOSH, WISCONSIN
By: —'1-0 11K�tye�
MarkA. Rohloff, City Manager
By:
Pamela R. Ubrig, City Clerk
I hereby certify that appopil I at km I : wo avA
able to meet claims On lid
recommend the allowanc a
Personally came before me this C)1a day of 5 2017, the above named
Mark A. Rohloff, to me known to be the person who executed and acknowledged the foregoing
instrument.
Notary Public, �tate of WiscAT
My Commission expires: I Ir
STATE OF WISCONSIN
)SS
COUNTY OF WINNEBAGO )
Personally came before me this day of 2017, the above named
Pamela R. Ubrig, to me known to be the person who executed and acknowledged the foregoing
instrument.
Notary Public, tate of Wiscon in
My Commission expires:—/,)I) m
I I
20
June 8, 2017
Description of Property
\June 8, 2017 21
LEGAL DESCRIPTION
Property within TID Number 32:
All of Lot 1 of Certified Survey Map Number 1252 as recorded in Volume 1,
Page 1252, Document Number 611506, Winnebago County Register of Deeds,
all of Lots 9 and 10 in Block 5 in the Plat of the Original Third Ward, Parts of
W. 5TH Avenue, W. 6TH Avenue, and Nebraska Street, all located in the
fractional Southwest 1/a of the Southwest 1/a of Section 24, Township 18 North,
Range 16 East, City of Oshkosh, Winnebago County, Wisconsin, bounded and
described as follows:
Commencing from the Southwest Corner of Section 24, Township 18 North,
Range 16 East; thence N00°38'33"W, 689.77 feet along the West line of said
Section 24 to a Point on the extended South line of W. 6' Avenue; thence
S89042'25"E, 433.02 feet along the extended South line and South line of said
W. 6TH Avenue to the Northeast corner of Lot 9 of Block 5 of the Plat of the
Original Third Ward and the Point of Beginning: thence N00019'06"W, 60.00
feet along the extended West line of said Lot 9 to a Point on the North line of
W. 6' Avenue; thence S89°42'25"E, 100.10 feet along said North line of
W. 6TH Avenue to the Northeast corner of W. 6TH Avenue and Nebraska Street;
thence N00°19'05"W, 150.87 feet along the West line of said Nebraska Street
to a Point on the South line of vacated Nebraska Street; thence N89°40'56"E,
22.00 feet along the North line of said Nebraska Street; thence S89'3 8'29"E,
16.00 feet to the Northeast corner of said Nebraska Street and W. 5TH Avenue;
thence S73053'45"E, 150.29 feet along the North line of said W. 5TH Avenue
to a Point on the extended West line of Lot 1 of Certified Survey Map Number
1252; thence S00°01'38"W, 170.13 feet along the extended West line and
West line of said Lot 1 to a Point on the South line of W. 6TH Avenue; thence
N89042'25"W, 121.14 feet along the South line of said W. 6TH Avenue to the
Southeast corner of W. 61 Avenue and Nebraska Street; thence S00°l9'05"E,
90.00 feet along the East line of said Nebraska Street to a Point on the extended
South line of Lot 10 of Block 5 of the Plat of the Original Third Ward; thence
N89°42'25"W, 160.00 feet along the said extended South line and South lines
of Lots 10 and 9 of Block 5 of said Plat of the Original Third Ward to the
Southwest corner of said Lot 9; thence N00°19'05"W, 90.00 feet along the West
line of said Lot 9 to the Point of Beginning.
Said area contains 55,825 square feet or 1.282 acres, more or less.
Tax Parcel Numbers: 90300100000 and 90300190000
Property Not Within TID Number 32:
All of Lot 3 of Certified Survey Map Number 1252 as recorded in Volume 1,
Page 1252, Document Number 611506, Winnebago County Register of Deeds,
on May 25, 1984, located in the fractional Southwest 1/a of the Southwest %a of
Section 24, Township 18 North, Range 16 East, City of Oshkosh, Winnebago
County, Wisconsin.
Tax Parcel Number: 90300110000
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Description of Overall Project Plan
June 8, 2017
April 24, 2017
Project Plan for the Creation of
Tax Incremental District No. 32
(Granary Rehabilitation)
ME
Cty,
O
Oshkosh
Organizational Joint Review Board Meeting:
Public Hearing:
Approval by Plan Commission:
Adoption by Common Council:
Approval by the Joint Review Board:
May 2, 2017
May 2, 2017
May 2, 2017
May 23, 2017
May 30, 2017
EHLERS
LEADERS IN PUBLIC FINANCE
Y49 Y i S 5i§r i' a i ✓ I E �.. .3 # «x� . �_ l�> 4 4
Tax Incremental District No. 32 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
John Hinz
John Kiefer
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
Karl Nollenberger
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
EXECUTIVESUMMARY...........................................................................................................................................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
EQUALIZEDVALUE 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
ANNEXEDPROPERTY...........................................................................................................................................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......................................................28
CALCULATION OF THE SHARE OF PROJECTED TAX INCREMENTS ESTIMATED TO BE PAID BY
THE OWNERS OF PROPERTY IN THE OVERLYING TAXING JURISDICTIONS......................................29
APPENDIX A - TAX INCREMENT FINANCING APPLICATION................................................................ 30
APPENDIX B - MARKET STUDY AND INVESTMENT ANALYSIS REPORT (INVESTA-ANALYTICS).... 42
PLAN COMMISSION PUBLIC HEARING/MINUTES OF MAY 2, 2017 .......................................................56
COMMON COUNCIL CREATION RESOLUTION OF MAY 23, 2017..........................................................58
JOINT REVIEW BOARD RESOLUTION OF MAY 30, 2017........................................................................61
SECTION 1:
Executive Summary
Description of District
Type of District, Size and Location
Tax Incremental District ("TID") No. 32 (the "TID" or "District") is a proposed 0.45 -acre district in need
of rehabilitation or conservation, located at the northeast and southwest corners of the intersection of
West 6th Avenue and Nebraska Street. Creation of the District is intended to facilitate rehabilitation of the
historic H.P. Schmidt Mill building, subsequently the site of The Granary restaurant. The building, which
has sat idle for a decade, would be renovated to create 5,459 -sq. ft. of office space on the first and second
floors. The non -original addition to the main mill structure would be renovated into a 4,059 -sq. ft.
brewpub and restaurant. A future build out of the third floor of the main mill structure for use as office
space is projected to occur in 2021. The project also includes construction of a new parking lot on the
southwest lot on the corner of West 6 1 Avenue and Nebraska Street and milling with overlay and curb on
a portion of 5t" Avenue to facilitate additional on -street parking. 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 $710,000 to facilitate rehabilitation of the main
mill structure, the addition and the parking lot. The estimated
expenditures include $661,806 in projected development
incentives to be made on a "pay as you go" basis, and $47,500 for
administrative expenses that will be incurred over the life of the
District.
Economic Development
T The City projects that additional land and improvement value of
approximately $1.68 million will result from the rehabilitation
project and subsequent economic appreciation. 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 22 -years. The statutory maximum life of the District would be 27 -years.
Project Plan TCD No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 4 April 20, 2017
Summary of Findings
As required by Wisconsin Statutes Section 66.1105, and as documented in this Project Plan and the
exhibits contained and referenced herein, the following findings are made:
1. That "but for" the creation of this District, the development projected to occur as detailed in
this Project Plan: 1) would not occur; or 2) would not occur in the manner, at the values, or
within the timeframe desired by the City. In making this determination, the City has considered
the following information:
At the City's request, Ehlers completed a limited independent review of the developer's sources
and uses, and cash flow proforma for project. The developer's projected return on investment
over 10 years without TIF assistance is 1.95%, and improves to 4.72% with TIF assistance in a
present value amount of $369,105. (Projected future value payments of $661,806). Both return on
investment numbers are at a level that would not attract interest in the project from a typical
investor. The developer has cited their interest in being a participant in the City's redevelopment
efforts in this area and a commitment to the community as their motivation for involvement in the
project. Based on Ehlers review, TIF assistance in the amount requested is warranted as the
projected return on investment will still be below market even with assistance.
• The structure has suffered from a lack of maintenance over the past decade. Significant water
penetration has occurred leading to mold issues that will require remediation. The age of the
structure, current condition and fact that the site has been vacant and underutilized for more than
a decade suggest that absent the use of TIF, redevelopment is unlikely to occur.
2. The economic benefits of the Tax Incremental District, as measured by increased employment,
business and personal income, and property value, are sufficient to compensate for the cost of
the improvements. In making this determination, the City has considered the following information:
• As demonstrated in the Economic Feasibility Section of this Project Plan, the tax increments
projected to be collected are sufficient to pay for the proposed project costs. On this basis alone,
the finding is supported.
• The developer has reported that the proposed office space tenant has hired eight new full-time
employees in anticipation of an expanded office, and that the restaurant is expected to create the
equivalent of 10 full-time jobs upon opening.
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 #1) and since the District will generate economic benefits that are
more than sufficient to compensate for the cost of the improvements (see Finding #2), the City
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 5 April 20, 2017
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)(1)4., a calculation of the share of projected tax increments estimated to be paid by the
owners of property in the overlying taxing jurisdictions has been made and can be found in
Appendix A of this plan.
4. Not less than 50% by area of the real property within the District is in need of rehabilitation or
conservation work within the meaning of Wisconsin Statutes Section 66.1337(2m)(b).
5. Based upon the findings, as stated above, the District is declared to be a district in need of
rehabilitation or conservation based on the identification and classification of the property included
within the District.
6. The project costs relate directly to promoting the rehabilitation of the area consistent with the purpose
for which the District is created.
7. The improvement of such area is likely to enhance significantly the value of substantially all of the
other real property in the District.
8. The equalized value of taxable property of the District, plus the value increment of all existing tax
incremental districts within the City, does not exceed 12% of the total equalized value of taxable
property within the City.
9. The City estimates that less than 35% of the territory within the District will be devoted to retail
business at the end of the District's maximum expenditure period, pursuant to Wisconsin Statutes
Sections 66.1105(5)(b) and 66.1105(6)(am)1.
10. The Project Plan for the District in the City is feasible, and is in conformity with the master plan of
the City.
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 6 April 20, 2017
SECTION 2:
Type and General Description of District
The District, comprising 0.45 acres located at the northeast and southwest corners of the intersection of
West 6 1 Avenue and Nebraska Street, is being created by the City under the authority provided by
Wisconsin Statute Section 66.1105 and will be classified as a district in need of rehabilitation or
conservation based on a finding that at least 50%, by area, of the real property within the District meets
that condition as defined in Wisconsin Statute Section 66.1337(2m)(b). The preliminary parcel list
included in Section 5 to this Plan identifies those parcels meeting those criteria. Collectively, these
parcels represent 53.33% of the total District area.
Creation of the District is intended to facilitate rehabilitation of the historic H.P. Schmidt Mill building. A
preliminary map of the proposed District boundary can be found in Section 3 of this Plan.
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 7 April 20, 2017
SECTION 3:
Preliminary Maps of Proposed District Boundary
r�
7
0
0
Tax Increment District #32 OA%
Granary Redevelopment 011, :
District Boundary Oshkosh
I Mi.
11 , Ho"-8� I I
M
M
;0a
W 7TH AVE
W 8TH AVE
Legend
TID #32 Boundary
F1
0 25 50 100 150
Feet(&86R 962 864 A66 840 832 9d4 ada,
fe:Wedne day, ApiII9,2017
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 8 April 20, 2017
Tax Increment District #32
Granary Redevelopment Cllo
Parcel Identification Oshkosh
Tax Increment#32 -Granary Building Redevelopment - Parcel identification
an Improv. Total Equalize Dwelling •Cenros
Map ID Parcel'N Owner Local Address Class Descrlpilori Zoning
Value Value Value d Value DnDI. Tract
WEST
Z
W 7TH AVE
Legend
TID ##32 Boundary
D 2� sD i0o
Feet w.
April, 2017
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 9 April 20, 2017
Tax Increment Disfricf #32
Granary Redevelopment
Existing Conditions
City Q
01'
Oshkosh
13 TID #32 Boundary
0 25 50 100
Fe
2Q17
Project
April, 7
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 11 April 20, 2017
SECTION 5:
Preliminary Parcel List and Analysis
NOTES:
'Property and assessment information per City of Oshkosh Parcel Viewer on 4-12-2017.
IEqualization ratio as of January 1, 2016 as published by the Wisconsin Department of Revenue.
'Propertles within the District meet the definition of requiring "rehabilitation or conservation work" asset forth in Wis. Stat. 4 66.1337(2m)(a)1. -"Carrying out plans for a program of voluntary or
compulsory repair and rehabilitation of buildings or other improvements."
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 12 April 20, 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
Total EV (TID In)
12% Test
Total Existing Increment
Projected Base of New District
Total Value Subject to 12% Test
Compliance
7/1/2017
Valuation Data
Percent
Valuation Data
Currently Available
Change
Est. Creation Date
2016
3,776,2251300)
453,147,036
453,147,036
0
264,138,900
110,000
110,000
264,248,900
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 13 April 20, 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
There have been no known environmental studies performed within the proposed District. If, however, it
becomes necessary to evaluate any land or improvement within the District, any cost incurred by the City
related to environmental audits, testing, and remediation are eligible Project Costs.
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;
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 14 April 20, 2017
installation of traffic control signage and traffic signals; pavement marking; right-of-way restoration;
installation of retaining walls; and installation of fences, berms, and landscaping.
Streetscaping 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 Statute 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 may
find it necessary to make the following project cost expenditures outside the District in the public rights -
Project Plan TID No, 32 Creation City of Oshkosh
Prepared by Ehlers Page 15 April 20, 2017
of-way adjacent to the District's boundaries: amenities to enhance public spaces such as landscaping;
lighting of streets, sidewalks, parking areas and public areas; installation of planters, benches, tree rings,
trash receptacles; and installation of brick or other decorative walks, terraces and street crossings.
Professional Service and Organizational Costs
The costs of professional services rendered, and other costs incurred, in relation to the creation,
administration and termination of the District, and the undertaking of the projects contained within this
Plan, are eligible Project Costs. Professional services include, but are not limited to: architectural;
environmental; planning; engineering; legal, audit; financial; and the costs of informing the public with
respect to the creation of the District and the implementation of the Plan.
Administrative Costs
The City may charge to the District as eligible Project Costs reasonable allocations of administrative
costs, including, but not limited to, employee salaries. Costs allocated will bear a direct connection to the
time spent by City employees in connection with the implementation, of the Plan.
Financing Costs
Interest expense, debt issuance expenses, redemption premiums, and any other fees and costs incurred in
conjunction with obtaining financing for projects undertaken under this Plan are eligible Project Costs.
With all Projects the costs of engineering, design, survey, inspection, materials, construction, restoring
property to its original condition, apparatus necessary for public works, legal and other consultant fees,
testing, environmental studies, permits, updating City ordinances and plans, judgments or claims for
damages and other expenses are included as Project Costs.
In the event any of the Project Cost expenditures included in this Plan are determined not to be
reimbursable out of the TIF fund by counsel retained by the City for purposes of making such
determination, or a court of record so rules in a final order, then such Project Cost is deleted from this
Plan and the remainder of the Projects shall be deemed the entirety of the Projects for purposes of this
Plan.
The City reserves the right to implement only those projects that remain viable as the Plan period
proceeds.
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 16 April 20, 2017
SECTION 8:
Map Showing Proposed Improvements and Uses
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 17 April 20, 2017
s
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Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 18 April 20, 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
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 19 April 20, 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 that redevelopment and other economic growth within the District, and 3)
a cash flow model demonstrating that the projected tax increment collections and all other
revenues available to the District will be sufficient to pay all Project Costs.
Available Financing Methods
To the extent Project Costs cannot be paid from cash on hand, the following is a list of the types of debt
obligations that the City could utilize to raise the capital needed to finance Project Costs or to pay
commitments to developers.
General Obligation (G.O.) Bonds or Notes
The City may issue G.O. Bonds or Notes to finance the cost of projects included within this Plan. The
Wisconsin State Constitution limits the principal amount of G.O. debt that the City may have outstanding
at any point in time to an amount not greater than five percent of its total equalized value. As of
December 31, 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.
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 20 April 20, 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 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 & Timeline
The City anticipates making total Project Cost expenditures of approximately $710,000 to facilitate
rehabilitation of the main mill structure, the addition and the parking lot. The estimated expenditures
include $661,806 in projected development incentives to be made on a "pay as you go" basis, and
$47,500 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. While the
City could borrow funds in the implementation of this Plan, it does not expect to do so. 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 its administration during the District's initial two years when no increment will
be generated. These advances will be repaid as funds become available. Development incentive payments
will be made only following receipt of associated tax increment revenue from the Project, and will be
limited to no more than 90% 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.
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 21 April 20, 2017
Development Assumptions
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 22 April 20, 2017
i ®
•
N
Construction
Year
���
ita
Brew Pub &
Office SpaceZ
Third Floor
Buildout
Additional
Lot
Property
Annual Total
Construction
Year
�w
1 2017
929,500
30,000
75,000
1,034,500
2017
1
2 2018_
(15,000)
(15,000)
2018
2
3 2019
(15,000)
(15,000)
2019
3
4 2020
(15,000)
(15,000)
2020
4
5 2021
326,474
(15,000)
311,474
2021
5
6 2022`
(15,000)
(15,000)
2022
6
7 2023
0
2023
7
8 2024
0
2024
8
9 2025
0
2025
9
10 2026
:.;z
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
Totals
Aa
929,500
326,474
30,000
0
1,285,974
Notes:
lAssumptions as
to incremental value and timing taken from Invista Analytics, LLC report dated 4-10-2017.
2Projected initial building valuation of $1,039,500 less estimated $110,000 TID base value.
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 22 April 20, 2017
Increment Revenue Projections
Type of District
District Creation Date
Valuation Date
Max Life (Years)
Expenditure Period/Termination
Revenue Periods/Final Year
Extension Eligibility/Years
Recipient District
Construction
Year Value Added
1 2017
1,034,500
2 2018
-15,000
3 2019
-15,000
4 2020
-15,000
5 2021
311,474
6 2022
-15,000
7 2023
0
8 2024
0
9 2025
0
10 2026
0
11 2027
0
12 2028
0
13 2029
0
14 2030
0
15 2031
0
16 2032
0
17 2033
0
18 2034
0
19 2035
0
20 2036
a-
21 2037
0
22 2038
0
23 2039
0
24 2040
0
25 2041
0
26 2042
0
27 2043
0
=' �fietia iitaYio0.r� ,., u
Mg
Base Value
Appreciation
Base Tax Rate
Rate Adjustment Factor
Tax Exempt Discount Rate
Taxable Discount Rate
Notes:
'Tax rate shown is actual TID Interim Rate for the 2016/17 levy per DOR Form PC -202 (Tax Increment Collection Worksheet).
Project Plan TID No, 32 Creation City of Oshkosh
Prepared by Ehlers Page 23 April 20, 2017
Tax Exempt
Inflation
Total
NPV
Taxable NPV
rtionYear
Increment
Increment
Revenue Year
Tax Rate'
Tax Increment
Calculation
Calculation
2018
1,034,500
2019
$26.98111,
' 23r9t+1
27,101
26,712
2019
11,445
1,030,945
2020
$26.98
53,322
52,186
2020
11,409
1,027,354
2021
$26.98
'j
78,691
76,478
2021
11,374
1,023,728
2022
$26.98
#631
103,234
99,642
2022
11,337
1,346,539
2023
$26.98
134,576
128,798
2023
14,565
1,346,105
2024
$26.98
164,995
156,690
2024
14,561
1,360,666
2025
$26.98
��✓ilS
194,848
183,669
2025
14,707
1,375,372
2026
$26.98%7�7
;".�%
224,144
209,765
2026
14,854
1,390,226
2027
$26.98
252,895
235,008
2027
15,002
1,405,228
2028
$26.98f
,�s_T>9
281,109
259,424
2028
15,152
1,420,381
2029
$26.98
"'=' f326j
308,796
283,040
2029
2030
15,304
15,457
1,435,684
1,451,141
2030
2031
$26.98
$26.98
�' �.r" 3Bj'ti��
*-9
335,967
362,631
305,883
327,978
2031
15,611
1,466,753
2032
$26.98
"'=
388,796
349,349
2032
15,768
1,482,520
2033
$26.98
s > A4,r
414,473
370,019
2033
15,925
1,498,445
2034
$26.98
439,669 439,669
390,012
2034
16,084
1,514,530
2035
$26.98
-"`=--'-'"
464,394
409,349
2035
16,245
1,530,775
2036
$26.98$i443
488,657
428,052
2036
16,408
1,547,183
2037
$26.98
s g1,r7,8
512,465
446,142
2037
16,572
1,563,755
2038
$26.98
,5v
535,827
463,638
2038
16,738
1,580,492
2039
$26.98
;,`"•126$91
558,752
480,559
2039
16,905
1,597,397
2040
$26.98
P R,>7S'J3,„ &
581,247
496,925
2040
17,074
1,614,471
2041
$26.98
112-111W,-
603,320
512,754
2041
17,245
1,631,716
2042
$26.98
�*
624,979
528,063
2042
17,417
1,649,133
2043
$26.98
-A4 A99
646,232
542,869
2043
17,591
1,666,724
2044
$26.98
f 094973
667,086
557,189
2044
17,767
1,684,492
2045
$26.98..
45,4B3T
687,548
571,038
Notes:
'Tax rate shown is actual TID Interim Rate for the 2016/17 levy per DOR Form PC -202 (Tax Increment Collection Worksheet).
Project Plan TID No, 32 Creation City of Oshkosh
Prepared by Ehlers Page 23 April 20, 2017
Cash Flow
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 24 April 17, 2017
Interest
Pay As You
Go (PAYGO)
Year
Earnings/
Developer
Obligation'
Tax
(Cost)
Total
Dev. Incentive
Present Value:
Total
Principal
Increments
1.00%
Revenues
Payments
,'5.75%_..
Admin.
Expenditures
Annual
Cumulative Outstanding
Year
2017
0
01
10,000
10,000
(10,000)
(10,000)
2017
2018
(100)
(100)
0':
1,500
1,500
(1,600)
(11,600)
2018
2019
27,914
(116)
27,798
25,123
23,757
1,500
26,623
1,175
(10,425)
2019
2020
27,818
(104)
27,714
25,036
46,144:
1,500
26,536
1,178
(9,247)
2020
2021
1 27,721
(92)
27,629
24,949
..67,241'
1,500
26,449
1,180
(8,067)
2021
2022
27,623
(81)
27,543
24,861
87,120':
1,500
26,361
1,182
(6,886)
2022
2023
36,334
(69)
36,265
32,700
11..1,846:
1,500
34,200
2,065
(4,821)
2023
2024
36,322
(48)
36,274
32,690
135,220`
1,500
34,190
2,084
(2,737)
2024
2025
36,715
(27)
36,688
33,044
: 157,5621
1,500
34,544
2,144
(593)
2025
2026
37,112
(6)
37,106
33,401
;:,.....178,918:
1,500
34,901 1
2,205
1,612
2026
2027
37,513
16
37,529
33,761
'. 199,330.
1,500
35,261
2,267
3,880
2027
2028
37,917
39
37,956
34,126
218,841
1,500
35,626
2,331
6,210
2028
2029
38,326
62
38,388
34,494
237,490'.
1,500
35,994
2,395
8,605
2029
2030
38,739
86
38,825
34,865
255,315-.
1,500
36,365
2,460
11,065
2030
2031
39,156
111
39,267
35,241
1 272,3521
1,500
36,741
2,526
13,591
2031
2032
39,578
136
39,713
35,620
". 288,636
1,500
37,120
2,594
16,185
2032
2033
40,003
162
40,165
36,003
304,201<.
1,500
37,503
2,662
18,847
2033
2034
40,433
188
40,621
36,389
319,077.
1,500
37,889
2,732
21,579
2034
2035
40,867
216
41,083
36,780
I 333,295'.
1,500
38,280
2,802
24,381
2035
2036
41,305
244
41,549
37,175
346,885.'
1,500
1 38,675
2,874
27,255
2036
2037
41,748
273
42,020
37,573
359,873:
1,500
39,073
---------------------------
2,94730,203
2037
------
2038
42,195
302
42,497
37,975
372,286'.
7,500
45,475I
(2_978)
____ 27,224
2038
2039
42,647
272
42,919
0
42,919
70,143
2039
2040
43,103
701
43,804
0
43,804
113,947
2040
2041
43,563
1,139
44,703
0
44,703
158,650
2041
2042
44,029
1,587
45,615
0
45,615
204,266
2042
2043
44,499
2,043
46,541
0
46,541
250,807
2043
2044
44,973
2,508
47,481
0
47,481
298,289
2044
2045
45,453
2,983
48,436
1
0
48,436
346,724
2045
Total 1 1,043,606 12,424 1,056,030 1 661,806
47,5001 709,306
Total
Notes:
rPercentage, term and Interest rate shown for purposes of
establishing economic feasibility only. The City
r----------------------------------
has not L --_---_--_Projected
I'D Closure -_-_------
i
agreed to terms or conditions with the proposed developer as to any public participation in the project.
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 24 April 17, 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)l, the City estimates that less
than 35% of the territory within the District will be devoted to retail business at the end of the District's
maximum expenditure period.
SECTION 13:
Proposed Zoning Ordinance Changes
The proposed Plan is in general conformance with the City of Oshkosh's present zoning and no changes
are anticipated to the Plan area's RMU-PD (Riverfront Mixed Use — Planned Develeopment) and UMU
(Urban Mixed Use) 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.
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 25 April 20, 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 redevelopment of an
underutilized site. By utilizing the provisions of the Tax Increment Finance Law, the City can stabilize
property values and attract new investment that results in increased tax base. Development of new uses in
the District will add to the tax base and will generate positive secondary impacts in the community such
as increased employment opportunities and increased demand for retail, service and hospitality related
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.
Project Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 26 April 20, 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 Plan TID No. 32 Creation City of Oshkosh
Prepared by Ehlers Page 27 April 20, 2017
ACORN
a k (pl
C ify
of
Oshkosh
City Attorney's Office
Phone: (920) 236-5115
Fax: (920) 236-5106
http://www.ci.oshkosh.ivi,us
May 16, 2017
Darryn Burich
Director of Planning Services
City of Oshkosh
215 Church Avenue
Oshkosh, WI 54903-1130
Dear Mr. Burich:
I reviewed the project plan for, City of Oshkosh Tax Increment District #32 Granary Rehabilitation,
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 CoLmcil,
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,
CIT
AOF OSHKOS
nn A. Lorens
City Attorney
LL/tw
City Attorney
City Nall, 215 Church Avenue P.O. Box 1130 Oshkosh, Wl 54903-1130 920.236.5115 hilp://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 Plan TID No. 32 Creation City of Oshkosh
Submitted by Ehlers Page 29 April 20, 2017
Statement of Taxes
Data Year:
fl
Percentage
Winnebago County,
19.58%
City of Oshkosh
41.85%
School District of Oshkosh Area
��
34.54%
Fox Valley Technical
College
U
4.03%
School District
Fox Valley
Winnebago
of Oshkosh
Technical
Revenue Year
County
City of Oshkosh
Area
College
Total
Revenue Year
2019
5,465
11,683
9,642
1,124
27,914
2019
2020
5,446
11,643
9,609
1,120
27,818
2020
2021
5,427
11,602
9,576
1,116
27,721
2021
2022
5,408
11,561
9,542
1,112
27,623
2022
2023
7,114
15,207
12,551
1,463
36,334
2023
2024
7,111
15,202
12,546
1,462
36,322
2024
2025
7,188
15,367
12,682
1,478
36,715
2025
2026
7,266
15,533
12,819
1,494
37,112
2026
2027
7,344
15,701
12,958
1,510
37,513
2027
2028
7,424
15,870
13,098
1,526
37,917
2028
2029
7,504
16,041
13,239
1,543
38,326
2029
2030
7,585
16,214
13,381
1,559
38,739
2030
2031
7,666
16,388
13,525
1,576
39,156
2031
2032
7,749
16,565
13,671
1,593
39,578
2032
2033
7,832
16,743
13,818
1,610
40,003
2033
2034
7,916
16,923
13,966
1,628
40,433
2034
2035
8,001
17,104
14,116
1,645
40,867
2035
2036
8,087
17,288
14,268
1,663
41,305
2036
2037
8,174
17,473
14,421
1,680
41,748
2037
2038
8,261
17,660
14,575
1,698
42,195
2038
2039
8,350
17,849
14,731
1,717
42,647
2039
2040
8,439
18,040
14,889
1,735
43,103
2040
2041
8,529
18,233
15,048
1,754
43,563
2041
2042
8,620
18,428
15,209
1,772
44,029
2042
2043
8,712
18,625
15,371
1,791
44,499
2043
2044
8,805
18,823
15,535
1,810
44,973
2044
2045
8,899
19,024
15,700
1,830
45,453
2045
204,322
436,791
360,485
42,008
1,043,606
Note: The projection shown above is provided to meet the requirements of Wisconsin Statute 66.1105(4)(i)4.
Project Plan TID No. 32 Creation City of Oshkosh
Submitted by Ehlers Page 29 April 20, 2017
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: 50 W 6th St, LLC
Mailing Address: 230 Ohio St - Suite 200
Primary Contact #: 920 230 3628
Cell #: 920 379 1645
E-mail: andy@alliancedevelopment.biz FAX #:
Attorney:
Legal Entity: Individual(s)
Joint Tenants Tenants in Common Corporation
LLC X Partnership Other
If not a Wisconsin corporation/partnership/LLC, state where organized:
Will a new entity be created for ownership? Yes No
Principals of existing or proposed corporation/partnership/LLC and extent of ownership interest.
Name: Address: Title: Interest:
Andy Dumke 230 Ohio St Suite 200
Cal Schultz 230 Ohio St Suite 200
Member / owner 25%
Member / owner 25%
Chet Wesenberg 240 Algoma Blvd Suite A Member / owner 25%
Tim Hess 240 Al oma Blvd Suite A Member / owner 25%
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 No X
If yes, please furnish details:
Page30
Date: 4/10/2017
RE: Summary Letter Granary TIF Application
C/O: Mark Rohloff
City Manager -Oshkosh, W1
215 Church Avenue
Oshkosh, W154903
Dear Mr. Mark Roliloff
We humbly submit for your review a project that we believe will significantly contribute to the revitalization efforts
of Oshkosh's south shore and hope that the community might view this project favorably enough to utilize Tax
Incremental Financing to help make financially feasible the development of a 5,459 square foot office space and a
separate 4,059 square foot brewpub and restaurant. hi addition, we propose to acquire a redevelopment authority
owned lot adjacent to our building so that we call provide additional parking to service (lie tenants as well as remill
and overlay a portion of W 511' Ave adjacent to the building, This building has sat vacant for the past decade and will
continue to fall into disrepair without the im:ned.iate action we are proposing. This locallyhistoric renovation and
updating of public space will serve to remove blight and repurpose a building that has significantly fallen out of use
due to substantial deferred maintenance and hope that you will support our efforts,
Name of Developer & Owner: 50 W 6'" Street, LLC (Andy Dunike, Cal Schultz, Chet Wesenberg, and Tim Hess
Co -Developers / Co -Owners)
Description of Site/Building: The H. P. Schmidt Mill building consists of 9,200 Sq. Ft. of vacant space that was
most recently used as 'a night club and then a restaurant before this. Tire building nests upon a roughly 10,500 Sq. Ft..
parcel. A semi -adjacent 4, t86 Sq. Ft. lot provides parking for this building as well as a'connecting office space
owned by Mr Kurt Koeppler & Mrs Peggy Hirschberg.
Current & Proposed Uses: The most recent use Was as a night club and then restaurant before that, however has sat
vacant the past decade. We are proposing to turn it into office space and a brewpub and restaurant.
Description of End Users: Given the local prominence of the now closed Granary restaurant, we anticipate that.
many locals will again be interested to try out the revived brewpub and restaurant. The proposed operators presently
run one of the most successful similar type establishments in Oshkosh.
The office will be occupied by a local professional firm that has seen significant growth over the past decade and is
looking to expand its current footprint in Oshkosh.
Project Start & End Dates: Initial demolition efforts will begin shortly to further understand the challenges and
refine the budget. We are anticipating an August 1 completion elate for the Office space and a September, 15
completion date for the restaurant.
Description of Public Benefit (Joh Creation): The professional office firin justhired 8 new full-time :employees in
anticipation .of an expanded office while the restaurant is expected to create the equivalent of 10 full-time jobs upon
opening.
Overview of Private Sector Funding anti Total Development Costs: We anticipate Verve credit union to be our
private financing partner for the project providing a $800,112 loan as well as monetizing the TIF municipal revenue
obligation. In addition, our LLC will contribute $393,384 word} of cash and equity participation into the project.
Summary of increment Projections and TIF Assistance Requested: Over tite next 26 years, We estimate the tax
increment to exceed $1,600,000 with this project. We are requesting the full 90% of the increment, or $369,105, of
net present value as a PayGo note to be paid over the course of the 25 -year payback period.
Page31
The `But For' Provision: As with any preservation of a historical building, the H. P. Schmidt Mill has many
significant challenges that have been exacerbated by the obvious lack of any maintenance over the past decade.
Moreover, significant water penetration has occurred leading to substantial mold issues that were noted before we
purchased the building. White we have taken preliminary mediation steps, a significant amount of remediation
remains, especially considering we intend to re -open a portion of the building as a restaurant. While the landmark's
commission has designated the property as a locally significant structure, two independent surveys commissioned
for the City of Oshkosh both determined the building does not qualify for listing in the National Register of Historic
Places, and thus do not qualify for any assistance in the form of Historic Tax Credits. Therefore we are left with the
challenge to bring back into service a locally significant building, which conics with the challenges one typically
faces with buildings well beyond 100 years old, without any other means of covering the financial gap that exists in
making this a financially feasible project.
Our analysis has determined that without TIF assistance, not only would we have to bring in $679,000 of cash or
equity up front, which would be more than 63% of the completed project's value, but that doing so would only result
in an internal rate of return of 1.95°/x. With the projected TIF assistance We anticipate an internal rate of return of
4.72%. We would point out that this rate of return is extremely small relative to many project that we see. In fact,
staff from the City of Madison report their typical IRR in `CIF deals range fi-om 12 to 15%. In this case, however, we
are interested in continuing to see the inspirational revival efforts of this city continue and would be willing to
proceed with the 4.72% return in hopes that this will continue to spur the momentum the city has gained.
Again, we strongly feel that with the City's collaboration, together we can move forward with this project that
benefits the entire city. Please feel fi•ee to contact me with any questions or clarifications that might be needed.
Best regards,
Andy Dumke
Page32
Tax Incremental Financing
Policy and Application
Overall Project Summary and Objectives: Renovate locally historic Granary building into a single occupant
office space and a separate restaurant / brewpub.
Current and Proposed Uses: The building has sat vacant for the past decade. Before this it was used as a night
club for less than one year. Prior to this is was operated as The Granary Restaurant for 20 years. We propose to
renovate the building into a roughly 5,549 sf office space and a 4,059 sf restaurant.
Description of End Users: The office space will be occupied by a professional service organization that has
successfully operated in Oshkosh for the past 16 years. Their success has lead them to seek an office space for
expansion as well a future potential growth. The restaurant will be operated by a well-regarded pair with experience
operating similar establishment in Oshkosh. The restaurant will be open to the public.
Property Summary:
Parcel/Land Area: 14,717 SF
Building Area: 9518 SF
# of Dwelling Units: o
# of Stories: 2
# of Parking Spaces: 18
Describe any zoning changes that will be needed:
None
Identify any other approvals, permits or licenses (i.e. Liquor License, Health Department, etc):
A liquor license is associated with this property and is getting transferred to the restaurant operator and a
Wisconsin seller's permit.
Describe briefly what the project will do for the property and neighborhood:
This building has sat vacant for the past decade and is showing substantial deterioration. This project will
substantially revitalize the appearance of the building removing blight. The new parking lot as well as the remilling
and overlay on 5th ave will provide sufficient parking to make this building a financially viable project.
Page33
Tax Incremental Financing
Policy and Application
Project Timetable
Final Plan/Specification Preparation: Now - May 1, 2017
Bidding and Contracting: May 1 - June 15
Firm Financing Approval: May 1
Construction/Rehabilitation: Deconstruction Now - I
Landscaping/Site Work: June 1 - July 15, 2017
Date
15, 2017, Construction May 15 - Sept 15, 2017
Occupancy/Lease Up: Office Space - Aug 1, 2017 occupancy, Restaurant - Sept 15, 2017 occupancy
Development Team
Developer: Andy Dumke, Cal Schultz, Chet Wesenberg, Tim Hess
Architect: Chet Wesenberg
Surveyor:
Contractor: Chet Wesenberg
Other Members:
Describe Team expertise and experience in developing similar projects:
Collectively this team has substantial experience in development, architecture, general contracting, and
investment analysis.
Other current Team projects in development:
Andy and Chet are working on a retail development in Green Bay presently.
Financial ability of the applicant to complete the project:
The development team has committed to the up -front portion needed, and has an initial verbal indication
that project will be financed through Verve.
Full and part-time jobs to be created by the proposed project including estimated salary:
The office tenant recently hired 8 new professional employees in part because they will soon have expanded
space. Then anticipate another 10-12 in the next 5 years. The restaurant expects to hire the equivalent of
Professional Studies 8 full tune positions.
Market Studies: Applications for commercial and residential projects must include a comprehensive market
study. The market study must identify target markets, analysis of competition, demographics, market rents,
letters of intent/interest from prospective tenants, or for housing developments, sale prices or rental rates of
comparable properties.
Appraisal: All projects that involve the transfer of land must include a recent appraisal. Projects that include
land as a form of equity or collateral must also submit a recent appraisal. The appraisal must value the property
"as is", and the impact on value must be considered for such items as demolition, environmental remediation,
relocation of utilities, lease buy-outs, and other work necessary to make the site developable. The property
must be valued assuming that the highest and best use is the proposed use.
Page34
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
Land Acquisition:
Demolition:
Environmental Remediation:
Site Clearance and Preparation:
Soft Costs/ Fees:
Soft Cost Contingency:
Hard Construction Costs:
Total Project Costs:
Sources of Funds
Equity
Developer Equity:
Other Equity:(
Total Equity:
Loans
Construction Financing:
Permanent Financing:
TIF Assistance
Other: (
Total Sources of Funds
Amount ($) $ per SF of Building Area
$117,500 $12.74
$20,000
$2.10
$32,000 $3.36
0
$313,350 $32.92
$30,000 $3.15
$1,101,751 $115.75
$1,562,601 (+325K at yr 5) $164.17
% of total project costs
$ 393,384
25.17 %
$
$
Rate Term
$ 800,000
4.5 % 6 mos.
$ 800,112
4.5 % 20 yrs, 51.20
$ 369,106
23.63
$ 1,562,601
100%
Financing
Source Amount Terms: Years/Interest
Equity: $393,384
Loans 1: $800,112
2: $369,106 (TIF Note Monitizatio
3:
4:
/4.5%
5.75%
Page35
Contact Information
Verve CU
Verve CU
Tax Incremental Financing
Policy and Application
Detailed Pro Forma (must correspond to line items for Uses of Funds on previous page)
Land Acquisition
$
117,500
Demolition
$
$20,000
Site Clearance and Preparation
Infrastructure
$
Utilities/removal
$
Utilities/relocation
$
Utilities/installation
$
Hazardous Materials Removal
$
32,000
Other( )
$
Total Site Clearance and Preparation
Soft Costs/Fees
Project Management (2 %)
$
22,035
General Contractor (10 %)
$
110,175
Architect/Engineer (3 %)
$
33,053
Developer Fee (6 %)
$
82,621
Appraisal
$
4,000
Soil Testing
$
Market Study
$18,000
Legal/Accounting
$
4,000
Insurance
$
2,500
Title/Recording/Transfer
$
3,000
Building Permit
$
10,821
Mortgage Fees
$
2,500
Construction Interest
$
6,301
Commissions
$
Marketing
$
Real Estate Taxes
$
4,344
Other Taxes
$
Other ( )
$
Other( )
$
Sub -total Soft Costs/Fees
$
313,350
Soft Cost Contingency
$
30,000
Page36
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 I 1 th year net operating income. The reversionary value is then added to the 1 oth 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.
Page37
Tax Incremental Financing
Policy and Application
Revenue Projections - Rental Project
Reversion in Year 10
Year 11 NOI before Debt & Capital Expenses $115,122
Capitalization Rate 7.802 %
Gross Reversion $ 1,475,500
Page38
Year 1
Year 2
>>Year 11
Income rent per sf (or avg.)
$
$
$
Commercial Rent
$ 130,800
$ 130,800
$ 178,128
Commercial Expense Recoveries
$
$
$
Residential Rent
$
$
$
Other Revenue ( )
$
$
$
Gross Potential Income
$ 130,800
$ 130,800
$ 178,128
Commercial Vacancy 1 %
$ 1,308
$ 1,308
$ 1,781
Residential Vacancy %
$
$
$
Effective Gross Income (EGI)
$ 129,492
$ 129,492
$ 176,346
Expenses
Maintenance & Repairs
$ 5,000
$ 5,100
$ 6,095
Real Estate Taxes
$ 8,364
$ 4,047
$ 39,901
Insurance
$ 2,600
$ 2,652
$ 3,169
Management Fee
$ 2,590
$ 2,590
$ 3,527
Professional Fees
$ 2,500
$ 25,50
$ 3,047
Other Expense ( CAM )
$ 4,500
$ 4,590
$ 5,485
Other Expense ( )
$
$
$
Total Expenses
$ 25,554
$ 21,529
$ 61,225
Net Operating Income (NOI)
$ 103,938
$ 107,963
$ 115,122
Capital Expenses (reserves, tenant improvements, commissions)
$ 4,800
$ 4,848
$ 5,302
Debt Service
$ 88,765
$ 88,765
$ 116,431
Net Cash Flow (before depreciation)
$ 10,374
$ 14,351
$ 26,628
Reversion in Year 10
Year 11 NOI before Debt & Capital Expenses $115,122
Capitalization Rate 7.802 %
Gross Reversion $ 1,475,500
Page38
Tax Incremental Financing
Policy and Application
Revenue Projects - For -Sale Project
Gross Sales Revenue
Housing Units Unit Type* Number
Total Housing Sales:
*affordable units if any
Housing Unit Upgrades:
Commercial Space
Total Commercial Sales:
Total Gross Sales Revenue
Cost of Sales
Commissions
Marketing
Closing
Other Costs
Total Costs of Sales
Net Sales Revenue
Unit Type Size-sf
Price/Unit
Price per sf
Page39
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 parldng 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
Page40
Tax Incremental Financing
Policy and Application
Filing Requirements
You must provide all of the following items with your signed application:
1. Fee: An application fee of 1% 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
Notes
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:
1. I have read and will abide by all the requirements of the City for Tax Incremental Financing.
2. The information submitted is correct.
3. I agree to pay all costs involved in the legal and fiscal review of this project. These costs may
include, but not be limited to, bond counsel, outside legal assistance, and outside financial
assistance, and all costs involved in the issuance of the bonds or loans to finance the project.
4. I understand that the City reserves the right to deny final approval, regardless of preliminary
approval or the degree of construction completed before application for final approval.
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`- Andy D U m ke Date 4/10/2017
Page4l
*INVISTA
ANALYTICS
H. P. SCHMIDT MILL BUILDING
MARKET STUDY and
INVESTMENT ANALYSIS REPORT
APRIL 10, 2017
Prepared Exclusively For:
50 West 6th Street, LLC
Prepared By:
Timothy M Hess, PhD
Invista Analytics, LLC
member of
ASAI, illf=3
AMERICAN STATISTICAL p
ASSOCIATION
Page42
CONTENTS:
Introduction / Objective.........................................................................1
MarketStudy.........................................................................................2
ProjectValuation................................................................................3
Overall Investment Analysis
.................................................................4
PotentialIncome..............................................................................4
Budgetand Funding.......................................................................4
TIFFunding......................................................................................5
Operational Proforma....................................................................7
Return On Investment...................................................................10
Page43
INTRODUCTION / OBJECTIVE
Invista Analytics, LLC (IA) has been engaged to provide a market study of commercial rental
rates of properties in Oshkosh, and specifically what an investment property in the third ward,
is likely to command. This information, along with the current proposed lease rates were uti-
lized to create an operational proforma and investment analysis for the development of the H.
P. Schmidt Mill building located at 50 West 6th Avenue in Oshkosh, Wisconsin.
The original mill portion of the building contains 3 stories and a basement. In 1984, develop-
ers converted the entire building into The Granary restaurant. However, this renovation only
refurbished the first and second floors of the original mill structure. The third floor substantially
remains as it was left in 1984, with only scuttle -hole access. The proposed development plan
calls for substantially renovating the first and second floors to provide approximately 5,459
square -feet of office space. The non -original addition to the main mill structure will be renovat-
ed into a 4,059 square foot brewpub and restaurant.
Figure 1 - Front elevation and overhead view of site
"I
The plan calls for the construction of a new parking lot on the south-west lot on the corner of W
6th Ave and Nebraska St. to service both tenants, in addition to milling with overlay and curb
a portion of 5th avenue to facilitate additional on -street parking. Afuture build -out of the third
floor of the office space is estimated to occur in year 5 of the plan.
The developers of this project are requesting Tax Incremental Financing (TIF) through the City
of Oshkosh. Thus Invista Analytics sought to provide reasoning for methods of valuation for
both the existing building and the completed project in order to estimate the potential increment
generated. Two different proformas, with and without TIF, were created to evaluate the effect of
the potential TIF funding mechanism. Finally, return on investment metrics were calculated on
the 'with TIF' and 'without TIF' investment scenarios.
H. R SCHMIDT MILL INVESTMENT ANALYSIS ( 1
Page44
Source of Information
In many instances in this report IAwas required to seek outside sources of information includ-
ing assessment data from the City of Oshkosh, construction cost estimates from the general
contractor, financing terms, capitalization rates, among other metrics. In all cases we sought to
document the sources of information and any assumptions used. While much of the informa-
tion was provided by the developers, these terms should be reviewed to be sure they align with
any potential changes the developer may have in securing potential funding. It is also recom-
mended that any reader also perform his/her own investment analysis.
This report should be acceptable for external investing and/or lending purposes. Invista Ana-
lytics will be available to answer any questions related to these market findings, operational
proforma and investment analyses.
ABBREVIATED MARKET STUDY
To assess the potential market rents within the downtown / south -shore area, IA conducted
a comprehensive web search of available commercial space for lease within one mile of our
subject property location. Websites included typical real estate agencies including realtor.com,
firstweber.com, coldwelIhomes. com, and Oshkosh realty.com. In addition, individual developer
and property management sites were also searched including blackteak.com, alexanderbish-
op.com, alliancedevelopment.biz, and schwabproperties.com. Properties were considered
as potential comparisons if they were constructed of either stone, brick or masonry and had
between 1,500 and 10,000 square feet of space available for lease. This search resulted in six
potential comparable properties, which are displayed on the map below.
Figure 2 - Comparable Commercial Properties for Lease
For each property we recorded the modified gross asking rent along with the salient features
that distinguish each of the properties. The results are in the table below.
Universiiy,Qf
Wisconsin
C rshkosh
Rate / SF
g i Irving Ave
. too . s,€
Source
' cc
01
cz
Furnished
1-146 Algoma - Suite C
$9.00
2187
2 1
None
ti
�9,, 3 Merritt Ave
T1er
4
$9.00
500-2500
www.blackteak.com
5-25
Not Included
y£',
iVc tia t2'etAVe
3 -16 Washinton Ave
r Y.
5
Oil �
N 51h Ave
W
30 stalls
6th AYE
W7th Ave,,
No
4 - 217 N Main St
$12.00
w 9th Ave
MIS # 50092395
ttd I 01 Ave
Included
For each property we recorded the modified gross asking rent along with the salient features
that distinguish each of the properties. The results are in the table below.
f,-1gina1 hd,goffered az— lease. To add-, estimated tares—Inmr 10 d Into apers .— foot rate.
2 1 INVISTA-ANALYTICS,COM
Page45
Available Commercial Space
Rate / SF
Sci Ft
Source
Parking
Utilities
Furnished
1-146 Algoma - Suite C
$9.00
2187
www.blackteak.com
None
Not Included
No
2 - 240 Algoma Blvd
$9.00
500-2500
www.blackteak.com
5-25
Not Included
No
3 -16 Washinton Ave
$9.60
5000
MLS # 50154082
30 stalls
Not Included
No
4 - 217 N Main St
$12.00
5825
MIS # 50092395
add
Included
No
5 - 601 Oregon St'
$13.68
7000
MLS # 50141734
8
Not Included
Yes
6 - 683 N Main
$6.80
1500
MLS # 50148375
Shared
Not Included
No
f,-1gina1 hd,goffered az— lease. To add-, estimated tares—Inmr 10 d Into apers .— foot rate.
2 1 INVISTA-ANALYTICS,COM
Page45
The developer is proposing to lease 5,459 square feet of office space at a modified gross net
rate of $14.07 per square foot. The brewpub has a potential tenant willing to lease the space
at $13.30 per square foot per annum. Both of these lease rates appear to be higher than the
typical lease rate of the comps listed on the previous page. Thus we are comfortable with the
claim that the potential TIF financing is not simply being used to lower the lease rates for the
tenants.
PROJECT VALUATION
The City of Oshkosh TIF policy states that at most 90% of the increment created within the TIF
district can be made available to assist any deserving development when the pay-as-you-go
funding mechanism is used. In order to calculate the potential assistance, we must estimate
the value of the property both at the time of the TIF district creation, as well as the value of the
completed project. The difference between these two valuations is then the increment created.
Base Valuation
While not an arms -length sale, the developer purchased the property from the U.S. Small
Business Administration for $50,000 in May of 2015. Prior to this, the US -SBA conducted an
auction of the building in January of 2015. Records show the auction lasted for one week with
a starting bid of $100,000. No bids were placed on the property at this time. Records from the
auction showed that the property was in need of extensive mold remediation. This was likely
the reason for the lack of bids on the property at auction. While a portion of the remediation
was taken care of by the developer after purchase, there is still extensive remediation work to
be done.
In addition to the remediation, the building needs extensive work before one could even obtain
occupancy. Both roofs have extensive damage and allow water in. The HVAC units have all
been sitting unused for the past 10 years and are now completely unservicable. Most every
window is cracked or broken. Even with the partial remediation that was completed on the
building, we estimate it's present value to be $110,000.
Completed Project Valuation
To arrive at a valuation for the completed project we employed a modified income approach.
With this approach, one simply takes the Net Operating Income (NOI) of a property and divides
by the appropriate cap rate to arrive at a valuation. However, when arriving at a valuation for a
tax assessment purpose, one needs to factor the property tax out of the NOI calculation or risk
running into a circular argument.
In this case we factor the taxes out by removing the taxes from the expenses and arrive at an
Adjusted NOI via the formula
NOI = EGI - (EXPENSE - TAXES).
Then the adjusted NOI is divided by a loaded cap rate. Following the assessor's lead from
prior analyses, we employed a loaded cap rate of 10.5%. Data for the effective gross income
(EGI) and other values can be found on the Profit and Loss Proforma with TIF on page 12. Us-
ing this approach results in a completed project valuation of $1,069,500.
H. P. SCHMIDT MILL INVESTMENT ANALYSIS ( 3
Page46
"flail InwmeLiw6acb Ca4cutation tarAuessmenY Va7uaEipn ":
_
Year 1
Year 2
Year 6
Year 11
Amount Percent
Amount Percent
Amount Percent
Amount Percent
EGI
129,492
129,492
170,935
176,611
Expense
25,554 19.73%
21,529 16.63%
50,077 29.30%
61,230 34.67%
Taxes
8,364
4,047
30,539
39,901
Adjusted NOI
112,302 86.73%
112,010 86.500A
151,397 88.57%
155,281 87.92%
Loaded CAP RATE
10.50%
10.505A
10.50%
10.50%
Valuation
1,069,500
1,066,800
1,441,900
1,478,900
Valuation from Taxes
310,000
150,000
1,131,907
1,478,900
H. P. SCHMIDT MILL INVESTMENT ANALYSIS ( 3
Page46
It is anticipated that work will begin mid -way through year 5 to finish off the 3rd floor of the mill
building to provide yet another floor of office floor space for the tenant. Using the same income
approach we estimate the value of the entire project to be $1,441,900 upon completion of this
work.
OVERALL INVESTMENT ANALYSIS
Potential Income
We first document the expected maximum revenue given the proposed rates each of the pro-
spective tenants have tentatively agreed to. The table below summarizes the rates and poten-
tial annual income upon completion of the renovations. In total the developers could anticipate
a maximum annual income of $130,800.
Budget and Funding
Next we look at the detailed budget and sources of income. The table on the following page
lists all expected expenses of the initial build -out for each space, the associated equipment for
the restaurant, and the exterior and common areas. Including a 10% contingency, we antici-
pate hard costs of $1,101,751. Adding soft costs and site aquisition, the total estimated cost of
this project is $1,562,601 under the TIF scenario.
On the funding side the developers anticipate bringing roughly $393K to the project in the form
of cash investment and equity. Given our estimates of valuation and increment, 90% of the net
present value of the increment over the 27 year proposed TIF time frame would be approx-
imately $369K using 5.75% discount rate if we monetize the municipal revenue obligation
note. This would then leave approximately $800K remaining that the developer would look to
finance. Initial conversations with Verve credit union have been met with favorable reactions to
the prospect of providing this long term financing.
We further estimate the cost to build -out of the third floor of office space to be $325,000. At this
point we anticipate the developer refinancing the original note and adding 80% of the $325K to
the primary note on the project. The remaining 20%, or $65K, will be from a cash investment
on the part of the developer.
4 1 INVISTA-ANALYTICS.COM
Page47
Maxm imuRental Income Potential
Unit Type
Sci Ft Rent/sf Monthly Rent
Annual Rent
Office Space
Brew Pub
5459 14.07 6,400
4059 13.30 4,500
76,800
54,000
Total
$130,800
Budget and Funding
Next we look at the detailed budget and sources of income. The table on the following page
lists all expected expenses of the initial build -out for each space, the associated equipment for
the restaurant, and the exterior and common areas. Including a 10% contingency, we antici-
pate hard costs of $1,101,751. Adding soft costs and site aquisition, the total estimated cost of
this project is $1,562,601 under the TIF scenario.
On the funding side the developers anticipate bringing roughly $393K to the project in the form
of cash investment and equity. Given our estimates of valuation and increment, 90% of the net
present value of the increment over the 27 year proposed TIF time frame would be approx-
imately $369K using 5.75% discount rate if we monetize the municipal revenue obligation
note. This would then leave approximately $800K remaining that the developer would look to
finance. Initial conversations with Verve credit union have been met with favorable reactions to
the prospect of providing this long term financing.
We further estimate the cost to build -out of the third floor of office space to be $325,000. At this
point we anticipate the developer refinancing the original note and adding 80% of the $325K to
the primary note on the project. The remaining 20%, or $65K, will be from a cash investment
on the part of the developer.
4 1 INVISTA-ANALYTICS.COM
Page47
et
Detailed Project Budget
Amount
w/ TIF w/o TIF Notes
Acquisition & Site Pre
Land Acquisition
110,000
110,000
Lot Acquisition
7,500
7,500
Subtotal
$117,500
$117,500
Soft Costs Fees
General Contractor
110,175
110,175
Architect/Engineer
55,088
55,088
Developer Fee (6%)
82,621
82,621
Appraisal
4,000
4,000
TIF Application
10,000
TIF Consulting / Market Study
18,000
Legal/Accounting
4,000
4,000
Insurance
2,500
2,500
Title/Recording/Transfer
3,000
3,000
Building Permit
10,821
10,821
Mortgage Fees
2,500
2,500
Construction Interest
6,301
6,301
Real Estate Taxes
4,344
4,344
4/1/2017 - 8/15/2017
Soft Cost Contingency
30,000
30,000
Subtotal
$343,350
$315,350
Hard Costs
Brew Pub
265,853
265,853
Office Space
351,083
351,083
Resteraunt Equipment
126,315
126,315
Exterior/Parking Lot
258,341
258,341
Contingency (10%)
100,159
100,159
Subtotal
$1,101,751
$1,101,751
Total Project Costs $1,562,601 $1,534,601
Source of Fu
riding i
Permanent Financing
800,112
855,600
TIF Monitization Note
369,106
Equity by developer
393,384
679,001
Total Source of Funds
1,562,601
1 534 601
TIF Funding
We assume that the project will be completed by September 2017 and that the assessor will
apply the new assessed value before the first of the year, 2018. Thus the full value of the
project will be on the 2018 tax year assessment and the increment can be paid out in the fall of
2019. We assume the assessed value will increase at a rate of 1 % per year and that the base
value will be $110,000. Adding the estimated $325K cost to build out the third floor in year five
to the present budget of $1.562 million results in an overall project cost of $1.887 million. The
net present value of the 90% of the increment is $369K or 19.5% of the total estimated project
costs. This is significantly below the 25% cap in the City of Oshkosh TIF policy. (See TIF Note
payoff schedule on the following page.)
H. P. SCHMIDT MILL INVESTMENT ANALYSIS ( 5
Page48
V 1 IN V iS A -ANAL t i ICS.COM
Page49
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Page49
Operational Proforma
The operational proforma, both with and without TIF assistance can be found on the following
page. The following assumptions were used to generate these:
The brew pub will maintain a stable rent for the first 5 years then
increase by 2% every year thereafter. The first term of this lease would
be for 10 years.
• The office tenant lease will be for an initial term of 7 years. It will then
increase by 10% at the beginning of each of 2 five year extension peri-
ods. For purposes of the proforma however, we assume the third floor
is built out at year 5 and that a new lease is negotiated at this point.
The third floor would add 2,500 square feet of space and the new
lease rate would be $14.74 per square foot.
• For planning purposes we assume a vacancy / credit loss of 1 %.
• Expenses including Maintenance and Repairs, Insurance, Professional
Fees, and Common Area Maintenance will all increase by 2% per year.
• Capital reserves will increase by 1 % per year.
• Debt service will be fixed over the first 5 years with a 20 year amorti-
zation schedule and a 4.5% interest rate offered through Verve. At the
beginning of year 6, we assume $260K or 80% of the $325K project-
ed cost to complete the third floor will be added to the original note
remaining amount. This new amount will be amortized over 15 years at
5%.
The proforma with the TIF assistance starts with a modest cash flow of $10,374 the first year
and rising up to $25,861 by the end of year 10. Below the "with TIF' proforma is the he "without
TIF' proforma. In this scenario, the cash flow does turn out slightly better in the beginning but
then loses ground relative to the "with TIF' scenario ultimately ending up with a year 10 cash
flow of $17,134.
H. P. SCHMIDT MILL INVESTMENT ANALYSIS 1 7
Page50
8 1 INVISTA-ANALYTICS.COM
Page51
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H. P. SCHMIDT MILL INVESTMENT ANALYSIS 1 9
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H. P. SCHMIDT MILL INVESTMENT ANALYSIS 1 9
Page52
Return On Investment
In order to calculate the Internal Rate of Return (IRR) we first need to calculate an assumed
reversion at the end of year ten. To do this we use the NOI from year eleven and divide by a
terminal cap rate. We again follow the lead of the assessor and use the 10.5% loaded cap rate
and subtract off the presumed mill rate of 2.698% to arrive at a non -loaded cap rate of 7.802%.
This results in a valuation of $1.475 million in the TIF scenario. However after 10 years there
would still be $914,773 left to pay off on the mortgage. After a 5% realtor fee we estimate a net
reversion of $486,952 in addition to the year 10 net cash flow. This leads to a 10 year Internal
Rate of Return of 4.72%. A similar calculation without TIF leads to an IRR of 1.95%.
The developer considers these rates of return to be substantially different. However, beyond
just the rate of return is the amount of up -front cash the developer would need to put into each
deal. In the 'with TIF' scenario the developer is putting in $393K up front, however, in the 'with-
out TIF scenario the developer would need to bring in over $679K to make the project work.
Combine this with the rates of return and it is clear that this is a project that the developer
would not undertake but for the potential TIF assistance.
10 1 INVISTA-ANALYTICS.COM
Page53
Return on Investment Metrics
With TIF
Without TIF
Net Cash Flow Reversion
Total
Net Cash Flow Reversion
Total
-393,384
-393,384
-679,001
-679,001
Initial Cash Outlay
Year 1
10,374
10,374
34,183
34,183
Year 2
14,351
14,351
38,160
38,160
Year 3
12,292
12,292
10,982
10,982
Year 4
11,951
11,951
10,745
10,745
Year 5
-53,397
-53,397
-54,501
-54,501
Year 6
23,937
23,937
23,736
23,736
Year 7
23,763
23,763
15,731
15,731
Year 8
24,475
24,475
16,457
16,457
Year 9
25,161
25,161
16,790
16,790
Year 10
25,861 486,952
512,814
17,134 680,325
697,459
Yr 11 NOI
115,122
115,122
Terminal Cap Rate
7.802%
7.802%
Gross Reversion Bldg
1,475,500
1,475,500
Mortgage Payoff
914,773
721,400
5% Realtor Fee
73,775
73,775
Net Reversion
486,952
680,325
10yr IRR =>
4.72%
10yr IRR =>
1.95%
The developer considers these rates of return to be substantially different. However, beyond
just the rate of return is the amount of up -front cash the developer would need to put into each
deal. In the 'with TIF' scenario the developer is putting in $393K up front, however, in the 'with-
out TIF scenario the developer would need to bring in over $679K to make the project work.
Combine this with the rates of return and it is clear that this is a project that the developer
would not undertake but for the potential TIF assistance.
10 1 INVISTA-ANALYTICS.COM
Page53
The findings presented herein are based upon the information available and received at
the time this report was compiled. Invista Analytics (IA) has taken every possible precau-
tion to evaluate this information for its completeness, accuracy and reliability. To the best
of its knowledge, IA feels the information and conclusions presented herein are sound and
reliable.
It should also be understood that normal economic and marketplace conditions change con-
stantly. IA assumes no responsibility for information that becomes outdated once this report
is written; nor is it responsible for keeping this information current after April 10, 2017.
The results presented in this report are the professional opinion of IA and are based on the
information available at this time. These opinions infer proper and professional management
of the business operation. The opinions also infer that market conditions do not change the
information received upon which these opinions are based. IA assumes no responsibility for
changes in market conditions.
Furthermore, it is assumed that the reader of this report completely understands its contents,
assumptions and recommendations. If the reader does not fully understand the contents
contained herein, clarification should be sought from Invista Analytics.
Finally, IA assumes no responsibility should the management of the proposed business ven-
ture deviate from any recommendations that may have been provided in this report.
Any further questions about this report should be directed to IA.
Sincerely,
Timothy Hess, PhD
INVISTA
ANALYTICS
240 Algoma Blvd - Suite A
Oshkosh, WI 54901
920.203.2177
www.invista-analytics.com
Page54
H. P. SCHMIDT MILL INVESTMENT ANALYSIS 111
INVISTA
ANALYTICS
Page55
Mr. Nau presented the item and reviewed the site and surrounding area as well as the land use
and zoning classifications in this area. He discussed the proposed use which would be a hydraulic
repair business which is relocating from their current site on W. 14th Avenue. He discussed the
number of employees and hours of operation and that the use would have a minimal traffic
generation compared to the previous use. The operations would be conducted within the building
with no adverse effects on the neighboring properties. The use is consistent with commercial land
use plans and the site is fully developed with no changes proposed to the existing site design. He
also discussed outdoor storage which is not proposed but would be required to be screened
appropriately if established. He reviewed the parking stalls for the site and the access to the site
and stated that the parking stalls were in need of being repainted. The existing roof sign is going
to be re -used and he reviewed the site plan and photos of the site. He discussed the monument
signage that the petitioner was considering however he has since decided not to install one at this
time. Landscaping and storm water management plans are not required for the site as the existing
conditions are not being altered. He discussed the removal of some of the windows on the front
elevation to enable the installation of overhead doors. He stated that details for a refuse enclosure
have not been submitted but will be addressed during the site plan review process and he
reviewed the conditions recommended for this request.
There was no discussion on this item.
Motion by Borsuk to approve a conditional use permit for a light industrial use (hydraulic cylinder
repair) for property located at 541 W. 101h Avenue with the following conditions:
1. No outdoor storage of equipment, parts, materials or inoperable vehicles unless a designated storage
area is created and provides minimum screening requirements.
2. Parking stall striping be repainted within the off-street parking area.
Seconded by Nollenberger. Motion carried 8-0.
V. PUBLIC HEARING ON PROPOSED CREATION OF TAX INCREMENT FINANCING
DISTRICT NO. 32 GRANARY REHABILITATION; DESIGNATION OF BOUNDARIES
AND APPROVAL OF PROJECT PLAN
Tax Incremental District No. 32 (the "TID" or "District") is a proposed 0.45 acre district in need of
rehabilitation or conservation located in the former "The Granary" restaurant building at 50 W. 6f
Avenue. Creation of the District is intended to facilitate rehabilitation of the historic locally
Landmarked H.P. Schmidt Mill building, which also includes an adjacent non -original building
addition to the east for total building area of about 9,500 square feet. TIF in this case would be
used to rehabilitate the structure into a combination of offices for one user in the original building
and a brew pub in the addition. The building has sat vacant for a number of years and reflects
some deferred maintenance creating a blighting influence in the area.
The City anticipates making total Project Cost expenditures of approximately $710,000 to
facilitate rehabilitation within the District. This total is comprised of $661,806 in potential "pay as
Plan Commission Minutes
Page56
May 2, 2017
you go" development incentives for a total project cost of approximately $1.5 million dollars
which includes $110,000 for acquisition of the property. Hard construction costs are estimated at
approximately $1.1 million. The District also includes a vacant property to the southwest that will
be turned into a parking lot. The project also will include rehabilitation of the existing parking lot
to the east of and adjacent to 40 W. 6th Avenue as well as improvement to the "alley" to the north
of the building which is W. 51h Avenue where additional public parking will be provided.
Ms. Williams presented the item and discussed the purpose of the creation of the District and
reviewed the boundaries and photos of the existing structure. She reviewed the site and
surrounding area as well as the land use and zoning classifications in this area and discussed the
proposed uses for the site. She reviewed the project cost expenditures and stated that the life of
the proposed TIF would be 22 to 27 years. She discussed the IRR (Internal Rate of Return) which
would be 1.95% without the TIF assistance and 4.74% with the TIF which is generally consistent
with the IRR's of other TIF redevelopment projects. She stated that the proposed plan is in
conformance with the City's zoning designation, redevelopment plans and Comprehensive Plan.
She further stated that the development was in character with the other uses in the area and
would be coming back before the Plan Commission for review and approval of the General
Development Plan and Specific Implementation Plan. She discussed the improvements within the
District which would include sidewalks, the riverwalk, building improvements, and
improvements to the private parking lot adjacent to the existing structure and the parking lot
adjacent to the district.
Mr. Borsuk stated that he was not clear on the amount of money raised during the life of the TIF
and questioned if there was a guaranteed increment included as part of the developer's
agreement.
Ms. Williams responded that the TIF project plan and development agreement will be approved
together and this would be addressed at that time.
Chet Wesenberg, 240 Algoma Boulevard, stated that he was the architect for the development and
was available to answer any questions related to this item.
Motion by Borsuk to approve the creation of Tax Increment Financing District No. 32 Granary
Rehabilitation; designation of boundaries and approval of project plan.
Seconded by Thoms. Motion carried 8-0.
There being no further business, the meeting adjourned at approximately 4:35 pm. (Hinz/Bowen)
Plan Commission Minutes
Respectfully submitted,
Elizabeth Williams
Planner
Page57
May 2, 2017
MAY 23, 2017
17-271 RESOLUTION
(CARRIED 4-3 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE TAX INCREMENT DISTRICT NO. 32 PROJECT PLAN;
DESIGNATE TAX INCREMENT DISTRICT NO. 32 BOUNDARIES;
CREATE TAX INCREMENT DISTRICT NO. 32 GRANARY
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. 32 (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;
j. A statement indicating how the District promotes the orderly development of
the City;
Page 58
MAY 23, 2017
17-271 RESOLUTION
CONTD
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 May 2, 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. 32, Granary 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:
(a) Not less than 50% by area of the real property within the District is in
need of rehabilitation or conservation work within the of Wisconsin
Statutes Section 66.1337(2m)(b).
(b) Based upon the finding, as stated in 3(a) above, the District is declared
to be a District in need of rehabilitation or conservation based on the
identification and classification of the property included within the
District.
Page 59
MAY 23, 2017 17-271 RESOLUTION
CONTD
(c) The improvement of such area is likely to enhance significantly the
value of substantially all of the other real property in the District.
(d) The equalized value of the taxable property in the District plus the value
increment of all other existing tax incremental districts within the City,
does not exceed 12% of the total equalized value of taxable property
within the City.
(e) The City estimates that less than 35% of the territory within the District
will be devoted to retail business at the end of the District's maximum
expenditure period, pursuant to Wisconsin Statutes Section
66.1105(5)(b).
(f) The project costs relate directly to promoting rehabilitation or
conservation of the area consistent with the purpose for which the
District is created.
(g) All property within TID #32 was within the City boundaries as of
January 1, 2004.
4. The Project Plan for "City of Oshkosh Tax Increment District No. 32,
Granary Redevelopment" (attached as Exhibit B) is hereby approved, and
the City further finds the Plan is feasible and in conformity with the master
plan of the City.
BE IT FURTHER RESOLVED that the Common Council of the City of Oshkosh
hereby approves creation of Tax Incremental Financing District No. 32 Granary
Redevelopment.
JOINT REVIEW BOARD
RESOLUTION APPROVING THE CREATION OF
TAX INCREMENTAL DISTRICT NO, 32,
CITY OF OSHKOSH
WHEREAS, the City of Oshkosh (the "City") seeks to create Tax Incremental District No. 32;
and
WHEREAS, Wisconsin Statutes Section 66.1105 requires that a Joint Review Board (the
"JRB") shall convene to review the proposal; and
WHEREAS, the JRB consists of one representative chosen by the School District; one
representative chosen by the Technical College District; and one representative chosen by the
County, all of whom have the power to levy taxes on property within the District; and one
representative chosen by the City and one public member; and
WHEREAS, the public member and JRB's chairperson were selected by a majority vote of
the other JRB members before the public hearing was held, under Wisconsin Statutes Sections
66.1105 (4)(a) and (e), and
WHEREAS, all JRB members were appointed and the first JRB meeting was held within 14
days after the notice was published under Wisconsin Statutes Sections 66.1105 (4)(a) and (e); and
WHEREAS, the JRB has reviewed the public record, planning documents, the minutes
adopted by the Plan Commission approving the boundaries of the District and adopting the Project
Plan, and the resolution passed by the Common Council approving the creation of the District under
Wisconsin Statutes Section 66.1105 (4)(gm); and
WHEREAS, project costs benefitting the District are to be made outside of, but within a one-
half mile radius of the District, pursuant to Wisconsin Statutes Section 66.1105(2)(f)1.n, as identified
in the Project Plan; and
WHEREAS, the JRB has considered whether, and concluded that, the District meets the
following criteria:
1. The development expected in the District would not occur without the use of tax
increment financing and the creation of a tax incremental district.
2. The economic benefits of the District, as measured by increased employment, business
and personal income and property value, are sufficient to compensate for the cost of the
improvements.
3. The benefits of the proposal outweigh the anticipated tax increments to be paid by the
owners of property in the overlying taxing districts.
City of Oshkosh of Wisconsin, TID No. 32 Joint Review Board Resolution
Page 61
NOW, THEREFORE, BE IT RESOLVED that the JRB approves the creation of this District:
BE IT FURTHER RESOLVED that in the judgment of the JRB, the development described in
the Project Plan, the information provided by the City, and the public record and planning
documents relating to the Distxiet, would not occur without the creation of the District.
Passed and adopted this S(Jday of t 2017,
joint Review Board
Representing
Winnebago County
Oshkosh Area School District
Fox Valley Technical College District
City of Oshkosh
PublicMember
City of Oshkosh of Wisconsin, TIDNo, 32 Joint Review Board Resolution
Page 62
A
Estimate of Property Overall Project Costs
June 8, 2017
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:
$117,500
$12.74
Developer Equity:
$ 393,384
25.17 %
Demolition:
$20,000
$2.10
Total Equity:
$
Environmental Remediation:
$32,000
$3.36
Site Clearance and Preparation:
0
4.5 % 6 mos.
Soft Costs/ Fees:
$313,350
$32.92
TTP Assistance
$ 369,106
23.63
Soft Cost Contingency:
$30,000
$3.15
Hard Construction Costs:
$1,101,751
$115.75
Total Project Costs:
$1,562,601 (+325K at yr 5)
$164.17
Sources of Funds
% of total project costs
Equity
Developer Equity:
$ 393,384
25.17 %
Other Equity:(
) $
%
Total Equity:
$
Loans
Rate Term
Construction Financing:
$ 800,000
4.5 % 6 mos.
Permanent Financing:
$ 800,112
4.5 % 20 yrs, 51.20 %
TTP Assistance
$ 369,106
23.63
Other: ( )
$
%
Total Sources of Funds
$1,562,601
100%
Financing
Source Amount Terms: Years/Interest Contact Information
Equity: $393,384
Loans 1: $800,112 20yrs / 4.5% Verve CU
2. $369,106 (TIF Note Monitization) 25yrs/ 5.75% Verve CU
3:
4:
Tax Incremental Financing
Policy and Application
Detailed Pro Forma (must correspond to line items for Uses of Funds on previous page)
Land Acquisition
$ 117,500
Demolition
$ $20,000
Site Clearance and Preparation
Infrastructure
$
Utilities/removal
$
Utilities/relocation
$
Utilities/installation
$
Hazardous Materials Removal
$ 32,000
Other( )
$
Total Site Clearance and Preparation
Soft Costs/Fees
Project Management (2 %)
$ 22,035
General Contractor (io %)
$110,175
Architect/Engineer (3 %)
$ 33,053
Developer Fee (6 %)
$ 82,621
Appraisal
$ 4,000
Soil Testing
$
Market Study
$18,000
Legal/Accounting
$ 4,000
Insurance
$ 2,500
Title/Recording/Transfer
$ 3,000
Building Permit
$10,821
Mortgage Fees
$ 2,500
Construction Interest
$ 6,301
Commissions
$
Marketing
$
Real Estate Taxes
$ 4,344
Other Taxes
$
Other ( )
$
Other ( )
$
Sub -total Soft Costs/Fees
$ 313,350
Soft Cost Contingency
$ 30,000
EXHIBIT D
City Contribution
Payment Schedule
Subject to the City's annual receipt of Available Tax Increment and the terms and conditions of
the Development Agreement, the City shall pay to Developer the total Available Tax Increment
for the prior year and certified by the Wisconsin Department of Revenue:
Payment Date
Payment Amount
November 1, 2019
Available Tax Increment for 2018
November 1, 2020
Available Tax Increment for 2019
November 1, 2021
Available Tax Increment for 2020
November 1, 2022
Available Tax Increment for 2021
November 1, 2023
Available Tax Increment for 2022
November 1, 2024
Available Tax Increment for 2023
November 1, 2025
Available Tax Increment for 2024
November 1, 2026
Available Tax Increment for 2025
November 1, 2027
Available Tax Increment for 2026
November 1, 2028
Available Tax Increment for 2027
November 1, 2029
Available Tax Increment for 2028
November 1, 2030
Available Tax Increment for 2029
November 1, 2031
Available Tax Increment for 2030
November 1, 2032
Available Tax Increment for 2031
November 1, 2033
Available Tax Increment for 2032
November 1, 2034
Available Tax Increment for 2033
November 1, 2035
Available Tax Increment for 2034
November 1, 2036
Available Tax Increment for 2035
November 1, 2037
Available Tax Increment for 2036
June 8, 2017
November 1, 2038
Available Tax Increment for 2037
November 1, 2039
Available Tax Increment for 2038
November 1, 2040
Available Tax Increment for 2039
November 1, 2041
Available Tax Increment for 2040
November 1, 2042
Available Tax Increment for 2041
November 1, 2043
Available Tax Increment for 2042
November 1, 2044
Available Tax Increment for 2043
The amount payable to the Developer will be the Available Tax Increment, which is ninety percent
(90%) of the annual gross tax increment as certified by the Wisconsin Department of Revenue.
The total amount of the City Contribution will vary based upon final costs, assessments, increment,
and contribution adjustments. However, the parties estimate as of the date this Agreement is
executed that the City Contribution will be $803,000.00 over the 27 year life of the TIF District.
June 1, 2017
EXHIBIT E
Projected TIF District Revenue and Expenses
See attached
June 8, 2017
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EXHIBIT F
10 Year Internal Rate of Return (IRR)
June 1, 2017
Exhibit F
_.. - Retutn ORlgvestr�iBnt.Metrics , , xA ..... -
With TIF
Without TIF
Net Cash Flow Reversion
Total
Net Cash Flow Reversion
Total
-393,384
-393,384
-679,001
-679,001
Initial Cash Outlay
Year
10,374
10,374
34,183
34,183
Year
14,351
14,351
38,160
38,160
Year3
12,292
12,292
10,982
10,982
Year 4
11,951
11,951
10,745
10,745
Years
-53,397
-53,397
-54,501
-54,501
Year 6
23,937
23,931
23,736
23,736
Year7
23,763
23,763
15,731
15,731
Year 8
24,475
24,475
16,457
16,457
Year
25,161
25,161
16,790
16,790
Year 10
25,861 486,952
512,814
17,134 680,325
697,459
Yr 11 NOI
115,122
115,122
Terminal Cap Rate
7.802%
7.802%
Grass Reversion Bldg
1,475,500
1,475,500
Mortgage Payoff
914,773
721,400
5% Realtor Fee
73,775
73,775
Net Reversion
486,952
680,325
10yr IRR =>
4.72%
10yr IRR =>
1.95%
10 1 INVISTA-ANALYTICS.COM
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