HomeMy WebLinkAbout24. Draft TIF MaterialsTO: Honorable Mayor and Members of the Common Council
Mark Rohloff, City Manager
FROM: Allen Davis, Community Development Director
DATE: October 5, 2017
RE: Draft TIF materials
The City Council conducted two workshops on TIF policy and implementation issues this past
summer. Based on the comments that council members have provided, staff has drafted three updates
to critical elements of the TIF Plan: (1) Timeline, (2) Application scoring, and (3) Development
Agreement. The draft updates to these elements are attached.
Staff have incorporated the following changes to the TIF Timeline:
• City Council input and direction on Development Agreement terms from the beginning.
• Council updates throughout the process.
• Council closed sessions regarding the proposed Development Agreement from the beginning,
with additional opportunities throughout, as needed.
• Council action on the TIF Plan first, then a subsequent meeting for action on the Development
Agreement.
• TIF Team review throughout the process.
Staff has incorporated the following changes into the application scoring sheets:
• More specific range of points for performance in the categories — based on the CIP scoring sheet
model.
• The Mixed -Use TIF scoring sheet has been created.
Staff has created a Development Agreement outline for all TIF applications:
• Clearly identifies proposed Development Agreement parameters such as pay -go dollar
amounts, funding limits, and interest rates.
• Sets expectations for look back clause for all TIFs, with 2 look backs for TIFs exceeding 20 years.
Staff is asking Council for any comments or suggestions regarding the draft material in October. Staff
will be updating the TIF application with these draft measures in anticipation of placing the TIF
Application and associated materials on the November 14, 2017 Council agenda for possible action.
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
Draft Updated TID Process - Timeline Example
(New steps in bold)
May 1, Staff receives TIF application, distributed to TIF Team.
Council receives TIF application.
Next Council meeting: Applicant presents their project and proposed Development
Agreement.
Council goes into closed session to consider proposal and possible terms.
Council identifies additional information needed before considering proposal.
May 10, Staff provides Ehlers with TID application and direction from Council.
May 30, Ehlers prepares draft TIF project plan document and other reports on feasibility analysis report,
options, and
Council receives draft #1 TIF Plan.
May 30, City mails public hearing notices.
June 12, Ehlers provides the Council & City Staff with revised draft #2 TIF Project Plan.
June 14, City posts Joint Review Board (JRB) & Public Hearing/ Plan Commission meeting agendas.
June 14, Plan Commission meeting notice & draft to City Attorney for Attorney Legal Opinion.
TIF Team begins drafting Development Agreement.
Staff meets to discuss negotiations.
June 6-9, First publication of Public Hearing & JRB meeting notice.
June 12, Second publication of Public Hearing & JRB meeting notice.
June 20, Plan Commission action on TID boundary plan.
June 22, Ehlers provides the Council & City staff with revised draft #3 TIF Project Plan.
June 29, City provides Ehlers with the signed legal opinion approving the TIF Project Plan.
July 3, Ehlers provides the Council & City staff with draft #4 TIF Project Plan.
Council receives draft Development Agreement.
July 7, City posts the Council meeting agenda and distributes the resolution & Project Plan for
consideration.
July 11, Common Council reviews Plan & takes action on resolution approving TIF District Project Plan
and boundaries.
Council reviews draft Development Agreement — closed session if needed.
July 12, City mails notice & required attachments to JRB of the final meeting, along with the agenda.
July 14, Publication of JRB meeting notice.
July 19 Joint Review Board action on TID.
New: July 25 Council takes action on Development Agreement.
September, City will notify the DOR within 60 days of approval that the TIF creation took place.
September to October, City will gather, prepare, and submit state forms & all required documents to
state, once the 2017 assessed parcel values available (following the BOR).
Prosect:
Tvpe of TID: Blight and Redevelopment
Criteria
Score
1. Presence of extraordinary development/redevelopment costs such as:
a. Remodeling/Rehab/Demo
20 points if costs are greater than 20% of Fair Market Value (`MV);
b. Environmental Remediation
ff FMV
15 points if costs are 110 %FMV
10 points if costs are 10 MV
c. Facility Expansion
of F
5 points if costs are 5% of FMV
d. Public Infrastructure
25 points if property poses a heath or community -wide threat;
2. Project provides direct benefit to distressed areas through blight
20 points if property has been declared blighted or is under raze order by the City before the TIF
elimination or redevelopment
application is submitted;
15 points if property is nonconforming and/or under repair order;
10 points if property meets the Blight Designation per TIF State Statutes
3. Projects that directly implement specific recommendations of the
City's strategic planning documents such as:
a. The Comprehensive Plan
b. The Downtown Action Plan
10 points if project is implements a specific recommendation in local planning document;
c. The Riverwalk Plan
5 points if project implements a general recommendation in a local planning document;
d. The Vision Report
e. Imagine Oshkosh
f. Other
15 Points if property is land marked or on National Register;
4. Historic Preservation or rehab of a nationally or locally significant
10 Points if property is contributing or eligible for Register or located in a Historic District;
historic structure
5 Points if building is over 50 years old
S. Quality of development and overall aesthetics (architectural, site
5 points if site exceeds architectural design OR landscape requirements by 15% per Zoning Code;
design, landscaping, etc.) beyond that which is minimally required by the
5 BONUS points if BOTH architectural and landscaping requirements exceed 15% per Zoning
Zoning Ordinance
Code
6. Environmental sustainability impacts such as higher standards of
building and site design, materials and energy efficiency:
5 Points if LEED Certified or 10% of total building energy load provided by solar panels or other
a. LEED certification, Energy Star, etc.
on-site renewable sources.
b. Use of Green infrastructure
c. Solar or wind energy production
1 point for each 15% of building frontage ground floor space permanently reserved for retail,
7. Enhance the streetscape and pedestrian experience
restaurants/cafes.
1 Point for every 5 full-time equivalent jobs created or retained;
8. Proposed employment potential
5 BONUS points if 50% of the jobs create or retained are above the Oshkosh -Neenah MSA
median income level
9. Projects that involve development that is targeted to encourage an inflow
5 points if market study shows a gap or leakage for a particular product or service that currently
of customers from outside the city of that provides services or fill
is not offered in the neighborhood or area.
underserved markets in the City
TOTAL SCORE
Point Total must be greater than 50 points or Council Waiver is required
Prosect:
Type of TID: Mixed Use
Criteria
Score
30 Points if there are three or more significant revenue producing uses in the district;
20 Points if there are two or more significant revenue producing uses in the district;
1. Ratio of types of differing uses within the district
10 points if there are two or more uses in the district;
5 BONUS points if development is considered live, work, play
2. Development is walkable or pedestrian oriented
5 points if the development is pedestrian oriented and walkable
3. Development contains usable public open spaces
5 Points if development creates usable public space or enhance an existing public space
15 points for a mixture of 3 or more housing types and density
4. Development contains a mix of housing types, density, and unit costs
10 points for 2 or more housing types or density
5 points for a mixed use building with residential/commercial
S. Attracting, retaining or expanding businesses for purpose of improving the
5 points if project creates or expands a business
City's economic base.
10 points for three or more distinct monthly rental tiers that serve all income levels;
6. Development contains a mix of rent levels to promote housing income
5 points for 2 or more distinct rental tiers;
diversity
5 BONUS points if housing meets the needs identified in the adopted City CDBG Consolidated Plan
7. Projects that involve development that is targeted to encourage an inflow of
5 points if market study shows a gap or leakage for a particular product or service that currently is
customers from outside the city of that provides services or fill underserved
not offered in the neighborhood or area (i.e. fills in a food desert).
markets in the City
8. Presence of extraordinary development/redevelopment costs such as:
a. Remodeling/Rehab/Demo
20 points if costs are greater than 20% for Fair Market Value (`MV);
b. Environmental Remediation
ff FMV
15 points if costs are 110 %FMV
10 points if costs are 10 MV
c. Facility Expansion
of F
5 points if costs are 5% of FMV
d. Public Infrastructure
5 points for every 5 jobs created or retained at or above the Oshkosh/Neenah MSA median income
9. Proposed Employment Potential
level
10. Projects that directly implement specific recommendations of the
City's strategic planning documents such as:
a. The Comprehensive Plan
10 points if project is implements a specific recommendation in local planning document;
b. The Downtown Action Plan
5 points if project implements a general recommendation in a local planning document
c. The Riverwalk Plan
d. The Vision Report
e. Imagine Oshkosh
f. Other
11. Environmental sustainability impacts such as higher standards of
5 Points if LEED Certified or 10% of total building energy load provided by solar panels or other on -
building and site design, materials and energy efficiency:
site renewable sources;
a. LEED certification
or
b. Solar or wind energy production
5 points for''green'' infrastructure or site design
12. Quality of development and overall aesthetics (architectural, site
5 points if site exceeds architectural design OR landscape requirements by 15% per Zoning Code;
design, landscaping, etc.) beyond that which is minimally required by the
5 BONUS points if BOTH architectural and landscaping requirements exceed 15% per Zoning Code
Zoning Ordinance
TOTAL SCORE
Point Total must be greater than 50 points or Council Waiver is required
Project:
Type of TID: Economic Development Industrial and Business Park Development
Criteria
Score
1. Attracting, retaining or expanding businesses for purpose of improving the
20 Points for a new or retained business; 5 points for every 20% increase in building square
City's economic base.
footage
2. Projects that involve development that is targeted to encourage an inflow
5 points if market study shows a gap or leakage for a particular product or service that currently
of customers from outside the city of that provides services or fill
is not offered in the neighborhood or area
underserved markets in the City
3. Presence of extraordinary development/redevelopment costs such as:
a. Remodeling/Rehab/Demo
20 points if costs are greater than 20% for Fair Market Value (`MV);
b. Environmental Remediation
f f FMV
15 points if costs are 110 %MV
10 points if costs are 10 FMV
c. Facility Expansion
of F
5 points if costs are 5% of FMV
d. Public Infrastructure
5 points for every 5 permanent jobs created or retained at or above the current
4. Proposed Employment Potential
Oshkosh/Neenah MSA median income level
S. Projects that directly implement specific recommendations of the
City's strategic planning documents such as:
a. The Comprehensive Plan
b. The Downtown Action Plan
10 points if project is implements a specific recommendation in local planning document;
c. The Riverwalk Plan
5 points if project implements a general recommendation in a local planning document
d. The Vision Report
e. Imagine Oshkosh
f. Other
6. Environmental sustainability impacts such as higher standards of
building and site design, materials and energy efficiency:
a. LEED certification, Energy Star, etc.
5 Points if LEED Certified or 10% of total building energy load provided by solar panels or other
b. Use of Green infrastructure
on-site renewable sources.
c. Solar or wind energy production
d. TMDL-Phosphorus exceeds minimum requirements
7. Quality of development and overall aesthetics (architectural, site
5 points if site exceeds architectural design OR landscape requirements by 15% per Zoning Code;
design, landscaping, etc.) beyond that which is minimally required by the
5 BONUS points if BOTH architectural and landscaping requirements exceed 15% per Zoning
Zoning Ordinance
Code
TOTAL SCORE
Point Total must be greater than 50 points or Council Waiver is required
Draft Development Agreement elements
1) Parties
a. City/ RDA
b. Developer - who has assets and ownership interest
- who will remain involved for duration of the agreement
- Are assignments contemplated? How will we accommodate
assignments and land sales?
ii. Name of entity
iii. Type of entity / structure
1. Principals
iv. Authorized signatures
v. Address
vi. Attorney, if copied in Agreement
2) Property
a. Address
b. Legal description
c. Current use/uses
d. Proposed use/uses
3) Length of Proposed TIF in years
4) Define the Project
a. What will be constructed?
i. Private
ii. Public
iii. Public with Private Financing
b. Timeframe for construction
5) Contingencies
a. Acquiring land
b. Obtaining financing
c. Developer determining to proceed with project
d. Obtaining rezoning or permits
a
Developer's Obligations
a. Investment of not less than $
b. Construct and Use the Project
c. Pay all costs of the Project
d. Number of Jobs to be Created
i. Non -construction
ii. Full time
iii. Part time
e. Job retention during life of TID
f. Other criteria — quality of construction
7) City Contribution
a. Construct public infrastructure to support development
i. What will be constructed
ii. Timeline for construction
b. Application for grants
c. Developer Grants / Paygo Financing
8) Use of Increment
a. Administrative Costs
b. City debt service
i. Public projects
ii. Up front Developer Grant
c. Paygo financing –
i. Total TIF Funding to Developer
1. Principal
2. Interest
ii. % of annual gross or net increment to developer
iii. Cap on payments to developer
iv. Payment of specific amount to developer
v. Interest rate to developer
9) Look back Clause/ IRR
a. What is anticipated IRR?
i. Without TIF assistance?
ii. With TIF assistance?
b. Length of time for return
c. Interval of lookbacks
i. 2-20 year TIF – one lookback at halfway through projected life of TIF
ii. >20 years – two lookbacks during projected life of TIF
10) Other documents needed—
a. Deeds
b. If city -owned and environmental issues/ lease needed until WDNR certificate obtained?
c. Dedication of land or easements for public infrastructure – ROW, sidewalks, trails, etc...
11) Guaranties / security
a. Minimum tax assessment/increment guaranty
b. Special assessment guaranty
12) No sale to tax exempt / no restrictive covenants on land