HomeMy WebLinkAbout02. 17-535 NOVEMBER 8, 2017 17-535 RESOLUTION
(CARRIED 6-1P LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE INFRASTRUCTURE FUNDING PLAN FOR OSHKOSH
CORPORATION GLOBAL HEADQUARTERS
INITIATED BY: ADMINISTRATION
WHEREAS, the City of Oshkosh is interested in retaining Oshkosh Corporation's
presence in the city by creating incentives to induce them into constructing a new Global
Headquarters in Oshkosh; and
WHEREAS, the construction of infrastructure to their proposed Global
Headquarters, as shown on Exhibit 1, will serve as a significant inducement to encourage
Oshkosh Corporation's retention in Oshkosh; and
WHEREAS,in order to improve the city's chances to retain Oshkosh Corporation's
Global Headquarters, an overall financing plan to fund the construction of
aforementioned infrastructure is necessary.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh, Wisconsin, that the Common Council hereby approves the infrastructure
funding plan as identified in Exhibit 2 to develop the infrastructure necessary to serve
Oshkosh Corporation's Global Headquarters; and
BE IT FURTHER RESOLVED, that staff is authorized and directed to execute the
necessary budget and capital improvement program adjustments to effectuate the
funding of these infrastructure improvements.
EXHIBIT 1
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 Analysis (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
EXHIBIT 2
Infrastructure Funding Sources
SOURCES:
Total Sources
Revolving Loan Fund
1,322,000.00
Grants - Tea/WEDC/DNR
1,500,000.00
Proceeds Land Disposition
350,000.00
Deferred Capital Projects
827,000.00
Project Savings from Prior Capital Projects
2,468,600.00
2018 GO Borrowing
758,100.00
Total Sources $ 7,225,700.00
* If grant funding is not awarded proceeds from land disposition will be applied
TO: Honorable Mayor & Members of the Common Council
FROM: Mark Rohloff, City Manager
DATE: November 2, 2017
RE: Resolution Identifying Funding Plan for Oshkosh Corporation Global
Headquarters Infrastructure
BACKGROUND
City staff has been working with Oshkosh Corporation and its agent, CBRE, on a proposal for
the possible development of a new Global Headquarters for Oshkosh Corporation on the site
of Lakeshore Municipal Golf Course (LMGC). As part of this package, the city is proposing to
construct infrastructure that will lead from Oshkosh Avenue into the proposed site for
Oshkosh Corporation. As part of the incentive package, the city would construct these public
improvements, at a total cost of approximately $7.2 million. As part of the final proposal, staff
recommends that Council confirm to Oshkosh Corporation the funding sources for the $7.2
million in public improvements so that Oshkosh Corporation is confident that they can
construct on their site with appropriate street and utility access.
ANALYSIS
The attached resolution includes two exhibits, one which summarizes the infrastructure
improvements, and the second exhibit identifying the funding sources. The funding sources
are a variety of grants, unused capital projects funds, revolving loan funds, some proceeds
from the sale of a portion of Lakeshore Municipal Golf Course, and future borrowing. The
sources are summarized as follows:
• Revolving Loan Fund (RLF) -$ 1,322,000.00 - In 2013, the City created a fund for the
cash from the closure if TIF#6, TIF#8, TIF#9. This funding source was designated to
incentivize economic development and for the retention and attraction of businesses.
There is available cash balance of $2,595,000. Draws from this fund have included
$125,000 to GO -EDC for the matching grant funds to create their Capital Catalyst Fund
and $105,000 for two loan requests.
• Grants - WisDOT TEA/WEDC/DNR - $1,500,000 - The City is anticipating submitting a
minimum of three grant applications to include a WisDOT TEA Grant, WEDC Grant,
DNR Grant.
City Manager Mark A. Rohloff
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5002 http://www.ci.oshkosh.wi.us
• Proceeds Land Disposition - $350,000 - Apply proceeds from the land sale to avoid
issuance of taxable borrowing.
• Deferred Capital Project(s) -$827,000 - Delay 2018 City Infrastructure projects for the
Storm Water Fund, and add the necessary Storm Water infrastructure project(s) to
support the Oshkosh Corporation development. The project that will be deferred to
future years includes a reduced scope for the Stringham Creek Outfall project, and
Fernau Watershed improvements, both of which were going to be delayed regardless.
• Project Savings from Prior Capital Projects -$2,468,600 - Apply proceeds from
previously issued debt for projects that have been completed and have available
proceeds to apply to new project(s) of similar purpose to support the Oshkosh
Corporation.
• General Obligation Borrowing (GO) Debt Issuance for 2018 - $758,100 - Add
Infrastructure into the 2018 CIP to support the Oshkosh Corporation development. As
currently proposed, the 2018 CIP is approximately $800,000 under Council's self-
imposed annual borrowing ceiling of $11.4 million. Adding these projects will bring the
2018 GO issuance up to the $11,400,000 limit for GO borrowing and maintain the ceiling
established by the Common Council.
FISCAL IMPACT
As the analysis shows, the grant funds, estimated at $1.5 million, will not be certain until after
applications are approved. Should grant funds be denied, the proposal identifies additional
proceeds from the sale of the LMGC land that may be used to for the proposed improvements.
If these funds are not available, it would be appropriate to consider additional general
obligation borrowing over and above the $758,100 proposed. As proposed, there will be no
additional general obligation borrowing above the City's self-imposed cap of $11.4 million
annually. Should other general obligation borrowing be necessary in the future, it will add to
our outstanding debt and result in an impact on our tax levy in future years.
Respectfully Submitted
Mark Rohloff
City Manager