HomeMy WebLinkAboutItem IV Project PlanOrganizational Joint Review Board Meeting: Scheduled for January 2, 2018
Public Hearing: Scheduled for January 2, 2018
Approval by Plan Commission: Scheduled for January 2, 2018
Adoption by Common Council: Scheduled for January 23, 2018
Approval by the Joint Review Board: TBD
December 28, 2017
Project Plan for the Creation of
Tax Incremental District No. 34
(Oshkosh Corporation Global
Headquarters)
Tax Incremental District No. 34 Creation
Project Plan
City of Oshkosh Officials
Common Council
Steve Cummings Mayor
Steve Herman Deputy Mayor
Debra L. Allison-Aasby Council Member
Lori Palmeri Council Member
Caroline Panske Council Member
Thomas R. Pech, Jr. Council Member
Jake Krause Council Member
City Staff
Mark Rohloff City Manager
Allen Davis Community Development Director
Lynn Lorenson City Attorney
Darryn Burich Planning Director
Kelly Nieforth Economic Development Services Manager
Trena Larson Finance Director
Pamela Ubrig City Clerk
Plan Commission
David Borsuk John Kiefer
Edward Bowen Kathleen Propp
Thomas Fojtik, Chair Robert Vajgrt
Mike Ford Mayor Steve Cummings
John Hinz
Joint Review Board
Mark Rohloff, City Manager City Representative
Mark Harris, County Executive Winnebago County
Melissa Kohn, Director – Oshkosh Campus Fox Valley Technical College District
Allison Garner, School Board President Oshkosh School District
To Be Appointed Public Member
Table of Contents
EXECUTIVE SUMMARY ........................................................................................................................................... 4
TYPE AND GENERAL DESCRIPTION OF DISTRICT ........................................................................................ 7
PRELIMINARY MAPS OF PROPOSED DISTRICT BOUNDARY ...................................................................... 8
MAPS SHOWING EXISTING USES AND CONDITIONS ................................................................................. 10
PRELIMINARY PARCEL LIST AND ANALYSIS ................................................................................................. 13
EQUALIZED VALUE TEST ..................................................................................................................................... 14
STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PUBLIC WORKS AND OTHER
PROJECTS ................................................................................................................................................................ 15
MAP SHOWING PROPOSED IMPROVEMENTS AND USES ......................................................................... 20
DETAILED LIST OF PROJECT COSTS .............................................................................................................. 22
ECONOMIC FEASIBILITY STUDY, FINANCING METHODS, AND THE TIME WHEN COSTS OR
MONETARY OBLIGATIONS RELATED ARE TO BE INCURRED .................................................................. 23
ANNEXED PROPERTY........................................................................................................................................... 28
ESTIMATE OF PROPERTY TO BE DEVOTED TO RETAIL BUSINESS ...................................................... 28
PROPOSED ZONING ORDINANCE CHANGES ................................................................................................ 28
PROPOSED CHANGES IN MASTER PLAN, MAP, BUILDING CODES AND CITY OF OSHKOSH
ORDINANCES .......................................................................................................................................................... 28
RELOCATION ........................................................................................................................................................... 29
ORDERLY DEVELOPMENT OF THE CITY OF OSHKOSH ............................................................................. 29
LIST OF ESTIMATED NON-PROJECT COSTS ................................................................................................. 29
OPINION OF ATTORNEY FOR THE CITY OF OSHKOSH ADVISING WHETHER THE PLAN IS
COMPLETE AND COMPLIES WITH WISCONSIN STATUTES 66.1105 ...................................................... 30
CALCULATION OF THE SHARE OF PROJECTED TAX INCREMENTS ESTIMATED TO BE PAID BY
THE OWNERS OF PROPERTY IN THE OVERLYING TAXING JURISDICTIONS ..................................... 32
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 4 December 28, 2017
SECTION 1:
Executive Summary
Description of District
Tax Incremental District (“TID”) No. 34 (“District”) is a proposed industrial district comprising 32.80
acres of Lakeshore Municipal Golf Course that will be created to pay the costs of development incentives
and public infrastructure needed to facilitate construction of Oshkosh Corporation’s (“Developer”) new
global headquarters. (“Project”). In addition to the incremental property value that will be created, the
City expects the Project will result in the retention of 450 current jobs, and creation of up to an additional
200 jobs over time.
Estimated Total Project Cost Expenditures
The City anticipates making total expenditures of approximately $12.24 million (“Project Costs”) to
undertake the projects listed in this Project Plan (“Plan”). Project Costs include development incentives in
the form of a $6 million City Contribution to the Project and additional Incentive Payments for creation of
incremental value that produces tax increment collections in excess of $500,000 annually. All
development incentive payments will be made on a “pay as you go” basis. The City will also incur an
estimated $6.16 million in public infrastructure and related costs needed to allow for the Project to
proceed including: street improvements; water and sanitary sewer system improvements; storm water
management improvements; demolition of the existing Lakeshore clubhouse; natural gas and electric
installation; construction of Riverwalk trail; and a traffic impact analysis. Administrative expenses
estimated at $77,000 are also included and will be incurred over the life of the District after the full City
Contribution payment has been made. Except for development incentives and administrative expenses
which will be paid from tax increments as they are collected, Project Costs will be funded with cash on
hand from various funds of the City as identified in Section 10 of this Plan. The City has included up to
$365,000 for District Project Cost funding in its 2018 Capital Improvements Program financings. The
City expects to recover a portion of those costs funded with cash or debt proceeds from future tax
increment collections.
Incremental Valuation
The City projects that new land and improvements value of no less than $19,008,132 million will result
from construction of Oshkosh Corporation’s new global headquarters which will include 150,000 –
160,000 square feet of Class A office space. This additional value will be a result of the improvements
made and projects undertaken within the District. A table detailing assumptions as to the development
timing and associated values is included in Section 10 of this Plan.
Expected Termination of District
Based on the Economic Feasibility Study located within this Plan as well as the terms of the proposed
development agreement, the District would remain open for its entire statutory maximum life of 20-years.
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 5 December 28, 2017
Summary of Findings
As required by Wis. Stat. § 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 reaching this determination, the City has considered
that as part of its exploration into the possibility of building a new global headquarters, Oshkosh
Corporation solicited competitive proposals from various national and regional locations. To
effectively compete, it was necessary for the City to offer certain incentives in the form of public
infrastructure and direct incentives to Oshkosh Corporation. Absent the use of tax incremental
financing, the City would have been unable to provide the necessary incentive package to retain
Oshkosh Corporation’s headquarters.
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:
Retention of Oshkosh Corporation’s headquarters in the City will result in the retention of 450
current jobs, and creation over the life of the District of an estimated additional 200 jobs.
Using recognized local or regional economic projections, the loss of 450 direct jobs would result
in a loss of about 600 total jobs in Oshkosh, and a total of approximately 670 in Winnebago
County when all direct and indirect jobs are considered.
Using the same economic projections, the loss of the 200 future direct jobs would result in 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 projected loss in
Oshkosh earnings could approach $75 million.
Other economic impacts that are generated from a global headquarters include business
associates, 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 is expected to have a
major effect on development in the Oshkosh Avenue neighborhood, a major City gateway that is
in need of mixed use redevelopment.
3. The benefits of the proposal outweigh the anticipated tax increments to be paid by the owners
of property in the overlying taxing jurisdictions. As required by Wis. Stat. § 66.1105(4)(i)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 prepared and can be found in Appendix A of this plan.
However, because the Project would not occur without the use of tax incremental financing, these tax
increments would not be paid but for creation of the District. Accordingly, the City finds that the
benefits expected to be realized as set forth above outweigh the value of the tax increments to be
invested in the Project.
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 6 December 28, 2017
4. Not less than 50% by area of the real property within the District is suitable for industrial sites and
zoned for industrial use within the meaning of Wis. Stat. § 66.1101. Any real property within the
District that is found suitable for industrial sites and is zoned for industrial use at the time of the
creation of the District will remain zoned for industrial use for the life of the District.
5. Based upon the findings, as stated above, the District is declared to be an industrial district based on
the identification and classification of the property included within the District.
6. The Project Costs relate directly to promoting industrial development in the District 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 none of the territory within the District will be devoted to retail business at the
end of the District’s maximum expenditure period, pursuant to Wis. Stat. § 66.1105(5)(b).
10. The Project Plan for the District in the City is feasible, and is in conformity with the Master Plan of
the City.
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 7 December 28, 2017
SECTION 2:
Type and General Description of District
Located within the Lakeshore Municipal Golf Course, this 32.80-acre District is being created by the City
under the authority provided by Wis. Stat. § 66.1105 and will be classified as an industrial district based
on a finding that at least 50%, by area, of the real property within the District is suitable for industrial
sites and zoned for industrial use within the meaning of Wis. Stat. § 66.1101. The single parcel that will
comprise the District will be rezoned to Commercial Business Park – Planned Development (CBP-PD) on
January 9, 2018.
Creation of the District will enable construction of Oshkosh Corporation’s new $19 million global
headquarters which will include 150,000 – 160,000 square feet of Class A office space. The City expects
that its investment in this District will result in the retention of 450 current jobs, and creation of up to an
additional 200 jobs over time. The Project Costs included in this Plan relate directly to promoting
industrial development in the District consistent with the purpose for which the District is created.
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 8 December 28, 2017
SECTION 3:
Preliminary Maps of Proposed District Boundary
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 9 December 28, 2017
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 10 December 28, 2017
SECTION 4:
Maps Showing Existing Uses and Conditions
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 11 December 28, 2017
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 12 December 28, 2017
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 13 December 28, 2017
SECTION 5:
Preliminary Parcel List and Analysis
City of Oshkosh, WI
Tax Increment District # 34
Base Property Information
District Classification
Parcel
Number1 Street Address Owner Acreage Land Imp PP Total
Equalized
Value Ratio Land Imp PP Total
Industrial
(Zoned and Suitable)
16-0847-0000 2175 Punhoqua St. City of Oshkosh 32.80 0 0 0 0 98.14% 0 0 0 0 32.80
0 98.14% 0 0 0 0
0 98.14% 0 0 0 0
0 98.14% 0 0 0 0
0 98.14% 0 0 0 0
Total Acreage 32.80 0 0 0 0 0 0 0 32.80
100.00%
Estimated Base Value 0
Notes:
1Parcel number shown is for Lakeshore Municipal Golf Course. The 32.80 acre lot to be created by Certified Survey Map prior to December 31, 2017 will be assigned a new parcel number.
Assessment Information Equalized ValueProperty Information
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 14 December 28, 2017
SECTION 6:
Equalized Value Test
The following calculations demonstrate that the City expects to be in compliance with Wis. Stats. §
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 $277,319.800. This value is less than the maximum of $471,813,384
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 1/23/2018
Valuation Data Percent Valuation Data
Currently Available Change Est. Creation Date
2017
Total EV (TID In)3,931,778,200 3,931,778,200
12% Test 471,813,384 471,813,384
Increment of Existing TIDs 277,319,800 277,319,800
Total Existing Increment 277,319,800 277,319,800
Projected Base of New District 0 0.00%0
Total Value Subject to 12% Test 277,319,800 277,319,800
Compliance PASS PASS
City of Oshkosh, WI
Tax Increment District # 34
Valuation Test Compliance Calculation
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 15 December 28, 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 as outlined in this Plan. Project Costs will be diminished by any income, special
assessments or other revenues, including user fees or charges. If Project Costs incurred benefit territory
outside the District, a 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, design
and construction is completed.
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.
The following is a list of public works and other tax incremental financing eligible projects that the City
expects to make, or may need to make, in conjunction with the implementation of the District’s Plan. The
map found in Section 8 of this Plan along with the Detailed List of Project Costs found in Section 9
provide additional information as to the kind, number and location of potential Project Costs.
Right-of-Way and Easement Acquisition
Acquisition of Rights-of-Way
The City will 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 will 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.
Relocation Costs
The City does not expect to pay relocation costs in conjunction with the acquisition of rights of way or
easements. Should relocation costs apply, these expenses are eligible Project Costs and may include, but
are not limited to: preparation of a relocation plan; allocations of staff time; legal fees; publication of
notices; obtaining appraisals; and payment of relocation benefits as required by Wis. Stat. Chapter 32 and
Wis. Admin. Code ADM 92.
Site Preparation Activities
Environmental Audits and Remediation
If it becomes necessary to evaluate any land or improvement within the District, any cost incurred by the
City related to environmental audits, testing, and remediation are eligible Project Costs.
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 16 December 28, 2017
Demolition
To make sites suitable for development the City may incur costs related to demolition and removal of
structures or other land improvements, to include abandonment of wells or other existing utility services
as well as costs related to archeological permitting. Any cost incurred by the City related to demolition is
an eligible Project Costs.
Site Grading
Land within the District may require grading to make it suitable for development, to provide access, and
to control stormwater runoff. The City may need to remove and dispose of excess material, or bring in
fill material to provide for proper site elevations. Expenses incurred by the City for site grading are
eligible Project Costs.
Utilities
Sanitary Sewer System Improvements
There are inadequate sanitary sewer facilities serving the District. To allow development to occur, the
City will need to construct, alter, rebuild or expand sanitary sewer infrastructure within and outside of the
District. Eligible Project Costs include, but are not limited to, construction, alteration, rebuilding or
expansion of: collection mains; manholes and cleanouts; service laterals; force mains; interceptor sewers;
pumping stations; lift stations; wastewater treatment facilities; and all related appurtenances. To the extent
sanitary sewer projects undertaken within the District provide direct benefit to land outside of the District,
the City will make an allocation of costs based on such benefit. Those costs corresponding to the benefit
allocated to land within the District, and necessitated by the implementation of the Project Plan, are
eligible Project Costs. Implementation of the Project Plan may also require that the City construct, alter,
rebuild or expand sanitary sewer infrastructure located outside of the District. That portion of the costs of
sanitary sewer system projects undertaken outside the District which are necessitated by the
implementation of the Project Plan are eligible Project Costs.
Water System Improvements
There are inadequate water distribution facilities serving the District. To allow development to occur, the
City will need to construct, alter, rebuild or expand water system infrastructure within the District.
Eligible Project Costs include, but are not limited to, construction, alteration, rebuilding or expansion of:
distribution mains; manholes and valves; hydrants; service laterals; pumping stations; wells; water
treatment facilities; storage tanks and reservoirs; and all related appurtenances. To the extent water
system projects undertaken within the District provide direct benefit to land outside of the District, the
City will make an allocation of costs based on such benefit. Those costs corresponding to the benefit
allocated to land within the District, and necessitated by the implementation of the Project Plan, are
eligible Project Costs. Implementation of the Project Plan may also require that the City construct, alter,
rebuild or expand water system infrastructure located outside of the District. That portion of the costs of
water system projects undertaken outside the District which are necessitated by the implementation of the
Project Plan are eligible Project Costs.
Stormwater Management System Improvements
To manage stormwater runoff, the City will need to construct, alter, rebuild or expand stormwater
management infrastructure within the District. Eligible Project Costs include, but are not limited to,
construction, alteration, rebuilding or expansion of: stormwater collection mains; inlets, manholes and
valves; service laterals; ditches; culvert pipes; box culverts; bridges; stabilization of stream and river
banks; and infiltration, filtration and detention Best Management Practices (BMP’s). To the extent
stormwater management system projects undertaken within the District provide direct benefit to land
outside of the District, the City will make an allocation of costs based on such benefit. Those costs
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 17 December 28, 2017
corresponding to the benefit allocated to land within the District, and necessitated by the implementation
of the Project Plan, are eligible Project Costs. Implementation of the Project Plan may also require that
the City construct, alter, rebuild or expand stormwater management infrastructure located outside of the
District. That portion of the costs of stormwater management system projects undertaken outside the
District which are necessitated by the implementation of the Project Plan are eligible Project Costs.
Electric Service
To create sites suitable for development the City may incur costs to provide, relocate or upgrade electric
services. Relocation may require abandonment and removal of existing poles or towers, installation of
new poles or towers, or burying of overhead electric lines. Costs incurred by the City to undertake this
work are eligible Project Costs.
Gas Service
To create sites suitable for development the City may incur costs to provide, relocate or upgrade gas
mains and services. Costs incurred by the City to undertake this work are eligible Project Costs.
Communications Infrastructure
To create sites suitable for development the City may incur costs to provide, relocate or upgrade
infrastructure required for voice and data communications, including, but not limited to: telephone lines,
cable lines and fiber optic cable. Costs incurred by the City to undertake this work are eligible Project
Costs.
Streets and Streetscape
Street Improvements
There are inadequate street improvements serving areas of the District. To allow development to occur,
the City may need to construct or reconstruct streets, highways, 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, box culverts and bridges; rail crossings and signals; utility
relocation, to include burying overhead utility lines; street lighting; installation of traffic control signage
and traffic signals; pavement marking; right-of-way restoration; installation of retaining walls; and
installation of fences, berms, and landscaping. Costs incurred by the City for street improvements are
eligible Project Costs.
Streetscaping and Landscaping
To attract and promote redevelopment and rehabilitation of existing sites within the district 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, tree rings, trash
receptacles and similar items; and installation decorative walks, terraces and street crossings. These and
any other similar amenities installed by the City are eligible Project Costs.
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 18 December 28, 2017
Redevelopment Authority (RDA) Activities
Contribution to Redevelopment Authority
As provided for in Wis. Stats. § 66.1105(2)(f)1.h 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.
Miscellaneous
Cash Grants (Development Incentives)
The City may enter into agreements with property owners, lessees, or developers of land located within
the District for sharing costs to encourage the desired kind of improvements and assure that sufficient tax
base is generated 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 Wis. Sta. § 66.1105(2)(f)1.n, the City may undertake projects within territory located within
one-half mile of the boundary of the District provided that: 1) the project area is located within the City’s
corporate boundaries and 2) the projects are approved by the Joint Review Board. The cost of projects
completed outside the District pursuant to this section are eligible Project Costs, and may include any
project cost that would otherwise be eligible if undertaken within the District. The City intends to make
the following Project Cost expenditures outside the District as identified on the Proposed Improvements
Map included in Section 8 of this Plan:
Construction of a Riverfront trail.
Construction of trails currently undetermined as to specific location that would connect properties
in the District and within ½ mile of the District to the Riverfront trail.
Extension of N. Koeller Street and N. Westfield Street including streetscaping.
Improvements to the intersections of Oshkosh Avenue with N. Koeller Street and N. Westfield
Street.
Burying of overhead utility lines within ½ mile of the District to the extent those costs are not
paid by Tax Incremental District No. 35 or another revenue source.
The District will also be paying the costs of installing or replacing certain water system, sanitary sewer
system and stormwater management infrastructure located outside of the District as permitted under Wis.
Stats. § 66.1105(2)(f)1.k.
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.
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 19 December 28, 2017
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.
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 20 December 28, 2017
SECTION 8:
Map Showing Proposed Improvements and Uses
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 21 December 28, 2017
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 22 December 28, 2017
1 N. Westfield St. Extension & Intersection Improvements 2018 1,212,008$
2 Koeller St. Extension & Intersection Improvements 2018 1,429,680$
3 Water Main Extension - Rath Lane , West of Koeller 2018 333,300$
4 Storm Sewer for Koeller, Westfield and Outfall 2018 51,000$
5 Storm Sewer Relay Within Former Golf Course 2018 436,000$
6 Filling of ROW Above Regional Flood Elevation 2018 212,000$
7 Water Quality Treatment Options 2018 966,000$
8 2-48" Private 300ft Storm Sewer Outfalls to Lake 2018 152,000$
9 Clubhouse Demo 2018 100,000$
10 Natural Gas & Electric 2018 100,000$
11 Riverfront Trail/Riverwalk 2018 600,000$
12 Traffic Impact Analysis 2018 25,000$
13 Environmental Contingency 2018 250,000$
14 5% Contingency on Project ID Lines 1 - 13 2018 293,400$
15 Development Incentives 2020-2039 6,000,000$
16 Administrative Cost 2032-2039 77,468$
Subtotal Project Costs 12,237,856$
Less Cash on Hand2
Capital Projects Fund (1,359,000)$
Water Enterprise Fund (881,000)$
Sewer Enterprise Fund (228,600)$
Stormwater Enterprise Fund (827,000)$
Less Revolving Loan Fund (900,000)$
Less Grants (TEA/DNR)(1,250,000)$
Land Sale Proceeds (350,000)$
Total Project Costs Net of Cash on Hand 6,442,256$
Paid From Future Tax Increments (6,077,468)$
Balance to be Financed 364,788$
Notes:
1 Cost estimates for public infrastructure line items provided by City staff. Development incentives per draft development agreement.
2 Cash on hand is unspent proceeds from prior year borrowings as a result of lower bid prices and deferred projects.
Project
ID
City of Oshkosh, WI
Tax Increment District # 34
Estimated Project List
Project Name/Type Funding
Period Total Cost
SECTION 9:
Detailed List of Project Costs
The following list identifies the Project Costs that the City currently expects to incur in implementing the
District’s Plan. All projects identified and related costs reflect the best estimates available as of the date of
preparation of this Plan. All costs are preliminary estimates and may increase or decrease. Certain Project
Costs listed may become unnecessary, and other Project Costs not currently identified may need to be
made. (Section 7 details the general categories of eligible Project Costs). Changes in Project Cost totals or
the types of Project Costs to be incurred will not require that this Plan be amended. This Plan is not meant
to be a budget nor an appropriation of funds for specific Project Costs, but a framework within which to
manage Project Costs.
Project Cost Estimates
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 23 December 28, 2017
SECTION 10:
Economic Feasibility Study, Financing Methods, and the
Time When Costs or Monetary Obligations Related are to
be Incurred
This Section includes a forecast of the valuation increases expected within the District, the associated tax
increment collections, a summary of how Project Costs would be financed, and a projected cash flow
demonstrating that the District is economically feasible.
Key Assumptions
For purposes of the Plan, it is assumed that the Project will be completed and fully valued at not less than
$19,008,132 by January 1, 2020. The increase in valuation will occur because of: 1) sale of the City
owned tax-exempt property located within the District to Developer; and 2) construction of 150,000 –
160,000 square feet of Class A office space. The valuation estimate is based on the incremental value
needed to generate $500,000 in incremental taxes per year assuming the City’s current tax rate.
Assuming the $19,008,132 valuation as a constant, and the City’s current equalized TID Interim tax rate
of $26.30 per thousand of equalized value, the Project would generate $9,625,000 in incremental tax
revenue over the 20-year term of the District. Table 1 and Table 2 included hereafter include the
assumptions as to timing and values of the development and projections of tax increment collections.
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Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 24 December 28, 2017
Actual Oshkosh Corp.
HQ1 Annual Total
1 2018 4,752,033 4,752,033 2018 1
2 2019 14,256,099 14,256,099 2019 2
3 2020 0 2020 3
4 2021 0 2021 4
5 2022 0 2022 5
6 2023 0 2023 6
7 2024 0 2024 7
8 2025 0 2025 8
9 2026 0 2026 9
10 2027 0 2027 10
11 2028 0 2028 11
12 2029 0 2029 12
13 2030 0 2030 13
14 2031 0 2031 14
15 2032 0 2032 15
16 2033 0 2033 16
17 2034 0 2034 17
18 2035 0 2035 18
19 2036 0 2036 19
20 2037 0 2037 20
Totals 0 19,008,132 19,008,132
Notes:
1Assumed valuation is total needed to generate $500,000 in tax increment based on 2017/18 TID Interim Rate.
Construction Year Construction Year
City of Oshkosh, WI
Tax Increment District # 34
Development Assumptions
Table 1 – Development Assumptions
_____________________________________________________________________________________________
Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 25 December 28, 2017
District Creation Date Appreciation Factor 0.00%Apply to Base Value
Valuation Date Jan 1, 2018 Base Tax Rate $26.30
Expenditure Period/Termination 15 1/23/2033
Extension Eligibility/Years Yes 3 Tax Exempt Discount Rate 4.00%
Construction
Year Value Added Valuation Year
Inflation
Increment
Total
Increment Revenue Year Tax Rate
1 Tax Increment
Tax Exempt
NPV
Calculation
Taxable NPV
Calculation
1 2018 4,752,033 2019 0 4,752,033 2020 $26.30 125,000 111,125 106,452
2 2019 14,256,099 2020 0 19,008,132 2021 $26.30 500,000 538,527 510,060
3 2020 0 2021 0 19,008,132 2022 $26.30 500,000 949,490 892,627
4 2021 0 2022 0 19,008,132 2023 $26.30 500,000 1,344,647 1,255,250
5 2022 0 2023 0 19,008,132 2024 $26.30 500,000 1,724,606 1,598,969
6 2023 0 2024 0 19,008,132 2025 $26.30 500,000 2,089,951 1,924,768
7 2024 0 2025 0 19,008,132 2026 $26.30 500,000 2,441,245 2,233,583
8 2025 0 2026 0 19,008,132 2027 $26.30 500,000 2,779,027 2,526,298
9 2026 0 2027 0 19,008,132 2028 $26.30 500,000 3,103,817 2,803,753
10 2027 0 2028 0 19,008,132 2029 $26.30 500,000 3,416,116 3,066,744
11 2028 0 2029 0 19,008,132 2030 $26.30 500,000 3,716,403 3,316,024
12 2029 0 2030 0 19,008,132 2031 $26.30 500,000 4,005,140 3,552,309
13 2030 0 2031 0 19,008,132 2032 $26.30 500,000 4,282,773 3,776,275
14 2031 0 2032 0 19,008,132 2033 $26.30 500,000 4,549,727 3,988,566
15 2032 0 2033 0 19,008,132 2034 $26.30 500,000 4,806,413 4,189,789
16 2033 0 2034 0 19,008,132 2035 $26.30 500,000 5,053,227 4,380,522
17 2034 0 2035 0 19,008,132 2036 $26.30 500,000 5,290,549 4,561,312
18 2035 0 2036 0 19,008,132 2037 $26.30 500,000 5,518,742 4,732,676
19 2036 0 2037 0 19,008,132 2038 $26.30 500,000 5,738,159 4,895,107
20 2037 0 2038 0 19,008,132 2039 $26.30 500,000 5,949,137 5,049,070
Totals 19,008,132 0 Future Value of Increment 9,625,000
Notes:
1Tax rate shown is actual TID Interim Rate for the 2017/18 levy per DOR Form PC-202 (Tax Increment Collection Worksheet).
January 23, 2018
City of Oshkosh, WI
Tax Increment District # 34
Tax Increment Projection Worksheet
Table 2 – Tax Increment Projection Worksheet
Financing and Implementation
Development incentives to be paid to the Developer consist of two elements under the proposed
development agreement:
City Contribution. First, a total of $6 million would be paid from the annual tax increments
collected on a “pay as you go” basis with annual payments not to exceed $500,000. Once the $6
million in incentives is fully paid, the first $500,000 collected annually would flow to the District
to reimburse prior City advances or to pay for additional Project Costs.
Incentive Payments. The second portion is an incentive payment consisting of payment of 100%
of any amount of annual increment collected more than $500,000 for the District’s life on a “pay
as you go” basis. The City’s obligation to make Incentive Payments is strictly limited to the
amount of any incremental taxes collected within the District.
The City will also incur an estimated $6.16 million in public infrastructure and related costs needed to
allow for the Project to proceed including: street improvements; water and sanitary sewer system
improvements; storm water management improvements; demolition of the existing Lakeshore clubhouse;
natural gas and electric installation; construction of Riverwalk trail; and a traffic impact analysis.
Administrative expenses estimated at $77,000 are also included and will be incurred over the life of the
District after the full City Contribution payment has been made.
_____________________________________________________________________________________________
Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 26 December 28, 2017
Administrative expenses will be paid from current revenues over the life of the District. All other
infrastructure and associated costs will be paid from cash on hand or future borrowing as follows:
Funding Source Projected
Amount
Cash On Hand:
Capital Projects Fund $ 1,359,000
Water Enterprise Fund $ 881,000
Sewer Enterprise Fund $ 228,600
Stormwater Enterprise Fund $ 827,000
City Revolving Loan Fund $ 900,000
Grants (TEA/DNR) $ 1,250,000
Land Sale Proceeds $ 350,000
Proceeds from Future Debt Issuance $ 364,788
Total $ 6,160,388
Projected Recovery of Advances ($ 2,214,166)
Costs Not Recovered (Non-Project Costs) $ 3,946,222
Based on the proposed Development Agreement, the City would receive up to $500,000 in annual tax
increment collections once the City Contribution to the Project is paid. Based on the projections included
in this Plan, the City would receive $3,625,000 between the years of 2032 and 2039. Assuming the City
would charge a 3% interest rate on any advances made to the District, the $3,625,000 in future revenue
could reimburse an upfront advance of $2,214,166 by 2039 after netting out annual administrative
expenses paid from current year revenue. The estimated balance of $3,946,222 would not be recovered
through the District and would represent non-Project Costs. This figure is provided for information only
and is not intended to limit the City’s ability to recover eligible costs made for the benefit of the District
should changing circumstances permit it to do so. A projected of District cash flows is found in Table 3.
_____________________________________________________________________________________________
Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 27 December 28, 2017
City of Oshkosh, WITax Increment District # 34Cash Flow ProjectionYearYear20182,214,1662,214,1662,214,1662,214,166006,000,0002,280,5912018201900006,000,0002,347,01620192020125,000125,000125,0000125,000125,000005,875,0002,413,44120202021500,000500,000500,0000500,000500,000005,375,0002,479,86620212022500,000500,000500,0000500,000500,000004,875,0002,546,29120222023500,000500,000500,0000500,000500,000004,375,0002,612,71620232024500,000500,000500,0000500,000500,000003,875,0002,679,14120242025500,000500,000500,0000500,000500,000003,375,0002,745,56620252026500,000500,000500,0000500,000500,000002,875,0002,811,99120262027500,000500,000500,0000500,000500,000002,375,0002,878,41620272028500,000500,000500,0000500,000500,000001,875,0002,944,84120282029500,000500,000500,0000500,000500,000001,375,0003,011,26620292030500,000500,000500,0000500,000500,00000875,0003,077,69120302031500,000500,000500,0000500,000500,00000375,0003,144,11620312032500,000500,000375,0000375,000117,5007,500500,0000003,093,04120322033500,000500,000000492,2757,725500,0000002,667,19120332034500,000500,000000492,0437,957500,0000002,241,57320342035500,000500,000000491,8058,195500,0000001,816,19320352036500,000500,000000491,5598,441500,0000001,379,12020362037500,000500,000000491,3058,695500,000000929,18820372038 500,000500,000000491,045 8,955 500,000000 466,019 20382039 500,000500,000000480,000 20,000 500,000000(0)2039Total 9,625,000 2,214,166 11,839,166 6,000,0000 6,000,000 2,214,166 3,547,531 77,468 11,839,166TotalNotes:1As identified is this Plan, City funds on hand will be used to fund a portion of the District's Project Costs. To recover some of the funds ion hand applied, the City expects to record an advance to the District to be repaid over the District's life.2The City Contribution is an incentive paid from available tax increment with maximum annual payments of $500,000 and a cumulative maximum payment of $6,000,000.3Incentive Payments are paid from available tax increment and are equal to any annual tax increment collected in excess of $500,000 for the life of the District.4Assumes 3% simple interest accrual on advances.Projected District Closure YearCity Advances OutstandingCumulativeAnnualTotal ExpendituresAdmin.TotalDevelopment Incentives OutstandingRepayment of Advances4Project CostsProjected RevenuesTax IncrementsAdvances From Other Funds1Total RevenuesCity Contribution2Development IncentivesBalancesExpendituresIncentive Payments3
Table 3 – Cash Flow
_____________________________________________________________________________________________
Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 28 December 28, 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 Wis. Stat. § 66.1105(5)(b), the City estimates that none of the territory within the District will
be devoted to retail business at the end of the District’s maximum expenditure period.
SECTION 13:
Proposed Zoning Ordinance Changes
The District is being created by the City under the authority provided by Wis. Stat. § 66.1105 and will be
designated as an “Industrial District” based on a finding that at least 50%, by area, of the real property
within the District is zoned and suitable for industrial sites within the meaning of Wis. Stat. § 66.1101.
Prior to City Council adoption of the resolution creating the District, the area to be included within the
District will be rezoned from Institutional (I) to Corporate Business Park – Planned Development
Overlay. (CBP-PD). The land within the District will remain zoned CBP-PD or an equivalent zoning
classification suitable for industrial sites for the life of the District.
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 commercial 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.
_____________________________________________________________________________________________
Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 29 December 28, 2017
SECTION 15:
Relocation
Implementation of this Plan is not expected to require relocation of individuals or business operations. If
relocation were to become necessary, relocations will be handled in compliance with Wis. Stat. Chapter
32 and Wis. Admin. Code ADM 92.
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 retaining the headquarters of the City’s largest employer.
Development in the District will add to the tax base, retain and provide for employment opportunities, and
will generate positive secondary impacts in the community such as anticipated redevelopment of
properties located along Oshkosh Avenue in Tax Incremental District No. 35 to be created concurrently
with the District.
SECTION 17:
List of Estimated Non-Project Costs
Non-project costs are public works projects which only partly benefit the District. Costs incurred that do
not benefit the District may not be paid with tax increments. Examples of non-project costs are:
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.
No improvements to be made within the District will benefit property outside the District. Furthermore,
there will be no improvements made outside the District that will only partially benefit the District. While
all costs included within this Plan are eligible Project Costs, the City expects that it will provide an
estimated $3,946,222 in funding to pay for public infrastructure and related expenditures which will not
be recovered from tax increments. Any funds provided by the City to pay for projects which are not
recovered by tax increments will become non-project costs. Additional detail as to the anticipated non-
project costs to be incurred by the City are included in Section 10 of this Plan.
_____________________________________________________________________________________________
Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 30 December 28, 2017
SECTION 18:
Opinion of Attorney for the City of Oshkosh Advising
Whether the Plan is Complete and Complies with
Wisconsin Statutes 66.1105
See next page.
_____________________________________________________________________________________________
Project Plan TID No. 34 Creation City of Oshkosh
Prepared by Ehlers Page 32 December 28, 2017
Exhibit A:
Calculation of the Share of Projected Tax Increments
Estimated to be Paid by the Owners of Property in the
Overlying Taxing Jurisdictions
DOR Form PC-202 Year 2017/18 Percentage
Winnebago County 19,253,275 20.03%
City of Oshkosh 37,861,700 39.39%
Oshkosh Area School District 35,051,183 36.46%
Fox Valley Technical College 3,962,683 4.12%
Total 96,128,841
Revenue Year
Winnebago
County City of Oshkosh
Oshkosh Area
School District
Fox Valley
Technical
College Total Revenue Year
2020 25,036 49,233 45,578 5,153 125,000 2020
2021 100,143 196,932 182,314 20,611 500,000 2021
2022 100,143 196,932 182,314 20,611 500,000 2022
2023 100,143 196,932 182,314 20,611 500,000 2023
2024 100,143 196,932 182,314 20,611 500,000 2024
2025 100,143 196,932 182,314 20,611 500,000 2025
2026 100,143 196,932 182,314 20,611 500,000 2026
2027 100,143 196,932 182,314 20,611 500,000 2027
2028 100,143 196,932 182,314 20,611 500,000 2028
2029 100,143 196,932 182,314 20,611 500,000 2029
2030 100,143 196,932 182,314 20,611 500,000 2030
2031 100,143 196,932 182,314 20,611 500,000 2031
2032 100,143 196,932 182,314 20,611 500,000 2032
2033 100,143 196,932 182,314 20,611 500,000 2033
2034 100,143 196,932 182,314 20,611 500,000 2034
2035 100,143 196,932 182,314 20,611 500,000 2035
2036 100,143 196,932 182,314 20,611 500,000 2036
2037 100,143 196,932 182,314 20,611 500,000 2037
2038 100,143 196,932 182,314 20,611 500,000 2038
2039 100,143 196,932 182,314 20,611 500,000 2039
Total 1,927,754 3,790,942 3,509,536 396,768 9,625,000
1The projection shown above is provided to meet the requirements of Wis. Stat. § 66.1105(4)(i)4.
Estimated Portion of Taxes that Owners of Taxable Property in each Taxing Jurisdiction
Overlaying District would pay by Jurisdiction1