HomeMy WebLinkAbout01. 17-534 NOVEMBER 8, 2017 17-534 RESOLUTION
(CARRIED 6-1P LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE PROPOSED TERMS AND CONDITIONS FOR THE
SALE OF A PORTION OF LAKESHORE MUNICIPAL GOLF
COURSE AND DEVELOPMENT AGREEMENT WITH OSHKOSH
CORPORATION FOR A NEW GLOBAL HEADQUARTERS
INITIATED BY: ADMINISTRATION
WHEREAS, Oshkosh Corporation has been soliciting proposals for the possible
development of a new Global Headquarters; and
WHEREAS, the competition for a Global Headquarters, such as is being proposed
for Oshkosh Corporation, will involve competition from communities throughout the
country that may wish to house a Global Headquarters for a Fortune 500 company such
as Oshkosh Corporation; and
WHEREAS,the City of Oshkosh and the Greater Oshkosh Economic Development
Corporation (GO-EDC) submitted 19 possible locations for a potential Global
Headquarters for Oshkosh Corporation; and
WHEREAS, of the 19 sites evaluated by the City and GO-EDC, the site on
Lakeshore Municipal Golf Course is the only site that meets all of the criteria that
Oshkosh Corporation has for a Global Headquarters; and
WHEREAS, the economic impact of Oshkosh Corporation and its supply chain is
projected to have an estimated economic impact of over $70 million annually; and
WHEREAS, the City is interested in retaining Oshkosh Corporation's Global
Headquarters in the City of Oshkosh to maintain a positive economic impact on the
Oshkosh community and surrounding area; and
WHEREAS, a new Global Headquarters has the potential to add to the City's
economic base through new jobs created as a result of the new Global Headquarters and
its impact on Oshkosh Corporation's supply chain.
NOVEMBER 8, 2017 17-534 RESOLUTION
CONT'D
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh, Wisconsin, that it hereby approves the terms and conditions as identified on
Exhibit 1 as its formal proposal to Oshkosh Corporation to consider the City of Oshkosh
as a site for its new Global Headquarters; and
BE IT FURTHER RESOLVED, that the Common Council hereby authorizes and
directs staff to prepare the necessary agreements for a land sale of approximately 35 acres
of land on Lakeshore Municipal Golf Course for purposes of developing a new Global
Headquarters for Oshkosh Corporation; and
BE IT FURTHER RESOLVED, that the Common Council hereby authorizes and
directs staff to prepare the necessary development agreements that reflect the terms and
conditions identified on Exhibit 1 for Council to approve at a later time.
EXHIBIT 1
City
Purchaser
Construct public Infrastructure and Site
Construct and pay for all costs of construction of the
Preparation described in Exhibit 2, to be
Headquarters facility, including parking, any trail
completed in 2018-19 to coincide with
connections and other onsite improvements — PD
Headquarters construction (construction of
zoning with high standards for approval, construct in
additional trails and Riverwalk may come later)
2018-19; completion no later than December 31, 2019.
The design of such facility and onsite improvements on
No special assessments for 2018-19
the Subject Property are currently in process and will
improvements
vary from the City's Concept Plan.
Council will adopt a resolution (concurrent with
Incorporate sustainable design principles
approval of the term sheet) committing to
funding such Infrastructure and Site Preparation.
Provide mechanisms for preservation, relocation
and/or replacement of public memorials and plantings
which currently exist onsite
Paygo Development Grant - $6 million payable
Investment to create no less than $18,532,000 million in
from increment generated from first $18,532,000
taxable value (creates $500,000 in TIF increment)
of taxable value - $500,000 per year for not less
than 12 years, beginning with partial payment in
2020 and ending when Oshkosh Corporation has
received total credits of $6 million
Purchaser will agree that the taxable value, upon the
completion of the project, shall not be less than
$18,532,000
Paygo Incentive Payment for any additional tax
increment generated in excess of $500,000 for
ears 3-20 of the TIF
City will seek and apply for grant funding to
Oshkosh Corporation will assist in grant preparation
support development of public infrastructure.
and documentation required for any grants sought by
The City's Proposal is not contingent upon the
the City associated with the site development and
receipt of such grant funding.
accompanying infrastructure
Oshkosh Corp to maintain all trails, landscaping and
maintenance on its headquarters property and the
landscaping on adjacent public land between the
headquarters property and up to, but not including,
the public trail located along the shoreline, generally
N/NW of the headquarters property, for life of TID
Ciry�
Oshkosh
TO: Honorable Mayor & Members of the Common Council
Mark Rohloff, City Manager
FROM: Allen Davis, Community Development Director
DATE: November 3, 2017
RE: Proposed Terms and Conditions for the Sale of a Portion of Lakeshore Municipal
Golf Course & Development Agreement with Oshkosh Corporation for a New
Global Headquarters
Background
Earlier this year, Oshkosh Corporation began exploring the possibility of building a new global
headquarters. As part of this effort, CBRE, a consultant site selector, solicited competitive
proposals from a wide range of national and regional locations for the global headquarters. The
City of Oshkosh, working with the Greater Oshkosh Economic Development Corporation,
identified 19 possible sites. The site selection criteria provided by Greater Oshkosh EDC were:
• WOW! World Class location.
• Urgency
• Workforce Base — retention and attraction
• Welcoming Community
• Makes Financial Sense
Based on the site selection criteria, the Lakeshore Municipal Golf Course site was the only site
that met all the site criteria in Oshkosh. Oshkosh Corporation performed soil borings on a
portion of the golf course and determined that the site was suitable for their project. Over the
past month, the City of Oshkosh has developed a concept plan for the possible sale of a portion
of Lakeshore Municipal Golf Course for the global headquarters. The City has also received
hundreds of public comments regarding the concept plan and the proposal to sell a portion of
the golf course to Oshkosh Corporation for the global headquarters.
The time has now come for the City of Oshkosh to submit a proposal to Oshkosh Corporation
for the proposed global headquarters site. The proposal would include sale of a portion of the
golf course and the proposed terms and conditions related to the land sale and future
development agreement.
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
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Oshkosh
Analysis
The proposed Oshkosh Corporation global headquarters project includes the following:
• About 450 current jobs are retained.
• About 200 additional jobs would be created.
• The global headquarters campus would be about 30 to 35 acres in size.
• The office building would be about 150,000-160,000 square feet of Class A office space.
The economic impact of this type of project is substantial. The direct and indirect impact of the
jobs that could be lost, and the jobs that could be created in Oshkosh are:
• Loss of 450 direct jobs would be a loss of about 600 total jobs in Oshkosh, and a total 670
in Winnebago County when all direct and indirect jobs are added together.
• The loss of the 200 future direct jobs would be a loss of about 260 total future jobs in
Oshkosh and the loss of $26 million in future earnings.
• When adding the potential loss of earnings from the retained jobs, the total loss in
Oshkosh earnings could approach $75 million.
Other economic impacts that are generated from a global headquarters include guests and other
Oshkosh Corporation employees visiting the site on a temporary basis. These economic impacts
are more difficult to measure, but just as real, and include support businesses such as hotels,
restaurants, business and personal services, and retail sales.
In addition, the location of the Oshkosh Corporation global headquarters would have a major
effect on development in the Oshkosh Avenue neighborhood, a major City gateway that is in
need of mixed use redevelopment.
The concept plan and the elements of the terms and conditions for the land sale and
development agreement are attached. The major elements of each document are:
Concept Plan
The Oshkosh Corporation global headquarters would be located in the central part of the site,
overlooking the water, but not fronting on the water as shown in Exhibits 1 and 2. A new, public
riverwalk extension would be built near the shoreline from Rainbow Park west to connect to the
Tribal Heritage Trail. Both Koeller Street and Westfield Street would be extended north to
City Hall, 215 Church Avenue P.O. Box 1 130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
intersect near the entrance to the Oshkosh Corporation campus. Westfield would be upgraded
with 4 -way traffic signals, the Koeller roundabout and north leg of the street would be expanded
to accommodate additional traffic. Public water main, sanitary sewer and storm sewer would
be installed by the City. The City would also install a regional stormwater management facility
to serve development along Oshkosh Ave. and the Oshkosh Corporation campus. No decisions
have been made on the use of the remaining acres from the golf course. The Advisory Parks
Board and the City Council would determine the uses on the remaining 70 acres of public land
at a future date.
Terms and Conditions
The City would sell approximately 35 acres to Oshkosh Corporation at $100,000 per acre. The
final property survey and measurements would determine the final acreage amount. The
proposed terms and conditions are contained in Exhibit 3. The City would install the public
infrastructure as identified above and in greater detail in Exhibit 4. The public infrastructure
and site preparation would cost about $7,225,700.
The City would propose to create a Tax Increment Finance (TIF) District as a pay -go incentive
for Oshkosh Corporation. The pay -go would have two elements: A $500,000/year TIF pay -go
payment that would total $6,000,000 paid over 12 years, and an annual TIF pay -go incentive
payment that would be based on tax increment generated over and above the $500,000 pay -go
payment, for the life of the TIF District. The City would not provide any TIF funding upfront
as a grant, the TIF pay -go payments would be generated within the TIF district by Oshkosh
Corporation, and paid by the City only when sufficient increment is generated.
Oshkosh Corporation would construct a global headquarters on the site, break ground in 2018,
and complete construction by December 31, 2019. The post -construction taxable value would
create no less than $18,532,000 within the TIF District. In addition, Oshkosh Corporation would
incorporate sustainable design principles into their campus, assist the City with grant
preparation and maintain the public land between their campus and the new riverwalk.
Timeline
If Oshkosh Corporation selects Oshkosh for the global headquarters project, the following
actions would be required to implement the proposal:
December, 2017 Land Purchase Agreement
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
December to January, 2018
December to April, 2018
January - February, 2018
March - April, 2018
Spring, 2018
Summer, 2018 - Fall, 2019
Fiscal Impact
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City
of
Oshkosh
Tax Increment Finance Project Plan
Traffic Impact Analysis and Infrastructure Design
Development Agreement
Property Closing
Infrastructure bid award
Infrastructure construction
There are multiple fiscal impacts relating to this project. Firstly, the land sale would provide the
City with up to $3,500,000. These sale proceeds could be used to satisfy golf course debt, fund
additional park improvements, and/or other uses to be determined by the Advisory Parks Board
and the Council.
Secondly, the public infrastructure that would be installed would be funded by the City. The
breakdown of the costs and funding source is explained in detail in the accompanying memo
and attachments in the companion resolution next on the agenda.
Thirdly, the TIF pay -go elements would be a neutral fiscal impact for the 20 -year life of the TIF
since there are no up -front grants, and the pay -go payments would be solely generated by
Oshkosh Corporation. Upon TIF closure, the property value would be recognized by the entire
City and spread the levy across a higher value.
Lastly, the direct and indirect fiscal impact to the City via higher property values, business
income and personal earnings, and philanthropic activities and donations, while not currently
measurable, would be substantial.
Recommendation
The Council approves the proposed terms and conditions for a possible land sale and
development agreement as proposed.
Submitted,
Allen Davis
Community Development Director
Approved:
Mark A. Rohloff
City Manager
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
EXHIBIT 1
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EXHIBIT 3
City
Purchaser
Construct public Infrastructure and Site
Construct and pay for all costs of construction of the
Preparation described in Exhibit 2, to be
Headquarters facility, including parking, any trail
completed in 2018-19 to coincide with
connections and other onsite improvements — PD
Headquarters construction (construction of
zoning with high standards for approval, construct in
additional trails and Riverwalk may come later)
2018-19; completion no later than December 31, 2019.
The design of such facility and onsite improvements on
No special assessments for 2018-19
the Subject Property are currently in process and will
improvements
vary from the City's Concept Plan.
Council will adopt a resolution (concurrent with
Incorporate sustainable design principles
approval of the term sheet) committing to
funding such Infrastructure and Site Preparation.
Provide mechanisms for preservation, relocation
and/or replacement of public memorials and plantings
which currently exist onsite
Paygo Development Grant - $6 million payable
Investment to create no less than $18,532,000 million in
from increment generated from first $18,532,000
taxable value (creates $500,000 in TIF increment)
of taxable value - $500,000 per year for not less
than 12 years, beginning with partial payment in
2020 and ending when Oshkosh Corporation has
received total credits of $6 million
Purchaser will agree that the taxable value, upon the
completion of the project, shall not be less than
$18,532,000
Paygo Incentive Payment for any additional tax
increment generated in excess of $500,000 for
ears 3-20 of the TIF
City will seek and apply for grant funding to
Oshkosh Corporation will assist in grant preparation
support development of public infrastructure.
and documentation required for any grants sought by
The City's Proposal is not contingent upon the '
the City associated with the site development and
receipt of such grant funding.
accompanying infrastructure
Oshkosh Corp to maintain all trails, landscaping and
maintenance on its headquarters property and the
landscaping on adjacent public land between the
headquarters property and up to, but not including,
the public trail located along the shoreline, generally
N/NW of the headquarters property, for life of TID
EXHIBIT 4
Activity
Description/Notes
Estimated
Cost
Infrastructure/Site Preparation
Extension of N. Westfield Street
Includes concrete paving for 40',11' driving lane and 5'
and intersection improvements
bike lane in each direction, 8' parking on one side, 5'
$2,060,300
sidewalk on both sides, 10" water main, 12" sanitary,
and street lights on N. Westfield. Includes traffic signal
design, traffic signals, intersection pavement, right of
way costs, street lights, and 5' sidewalk on Oshkosh
Ave at N. Westfield. Capacity to meet or exceed the
requirements identified in the findings of the Traffic
Impact Anal sis (see below).
Extension of N. Koeller Street
Includes concrete paving for 40',11' driving lane and 5'
$2,154,400
and intersection improvements
bike lane in each direction, 8' parking on one side, 5'
sidewalk on both sides, 10" water main, street lights,
and fill area between Rath and N. Koeller. Includes
roundabout design, intersection pavement, ROW costs,
street lights, 5' sidewalk, 10' sidewalk and bike path,
brick island work. Capacity to meet or exceed the
requirements identified in the findings of the Traffic
Impact Analysis (see below).
Storm sewer for streets
Includes storm sewer for N. Koeller and storm sewer
$705,000
and outfall for N. Westfield.
Environmental Contingency
$50,000
Riverfront Trail
4,500 LF of 12' wide asphalt
$600,000
Stormwater Management
Stormwater quality management for new public streets
$122,000
Floodplain Mitigation and
Filling ROW above regional flood elevation
$212,000
filling for ROW
Installation of electric/natural
Wisconsin Public Service and communications
$100,000
gas and communications
providers
conduit
Demo and remove Clubhouse
$100,000
Stormwater Management
$1,072,000
including quality and quantity
Planning/Engineering
Traffic Impact Analysis
Consultant
$50,000
TOTAL:
$7,225,700