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HomeMy WebLinkAbout33. Oshkosh Corporation UpdateTO: Honorable Mayor & Members of the Common Council Mark Rohloff, City Manager FROM: Allen Davis, Community Development Director DATE: January 4, 2018 RE: Oshkosh Corporation Global Headquarters Construction, Public Improvements, Tax Increment Finance Plan, Timeline Public Improvements The traffic consultant, KL Engineering, continues work on the Traffic Impact Analysis. Traffic counts and turning movements have been completed. A joint workshop with the City Council, Plan Commission and Traffic Review Board to review the results and proposed improvements is scheduled for January 30, 2018 at 5:30, City Hall, Room 404. City staff has begun work on preliminary design of the infrastructure. As identified earlier, the stormwater from the Eagle/Punhoqua neighborhood discharges through the current golf course water hazards and that system will need to be maintained. The lot to be conveyed to Oshkosh Corporation is now 32.81 acres due to the city retaining the water hazard. The recorded lot reflects the change in the boundaries of the land to be conveyed to Oshkosh Corporation and relaying the stormwater pipes on city -retained land will be required. These stormwater changes will not affect Oshkosh Corporation's planned development of the property but will result in additional project costs that the City can recover through the TIFs. As mentioned in the previous project update, in anticipation of permitting requirements, the City has retained an archeologist to identify the location and develop a plan for excavating any area that may be an archeological site under applicable laws and regulations and may be disturbed during construction. Unfortunately, the archeologist has determined that the area to be examined is now many times larger than previously represented by the State Historical Society maps. The archeologist has developed a draft recovery plan for the area to excavate and preserve any artifacts that may be present on the site. The plan will be submitted to the State Historical Society for approval. After the ground thaws this spring, the archeologist, working with a team, will excavate most of the high ground around the clubhouse and recover any artifacts in the impacted area prior to construction. This archeological work will result in additional environmental costs that will be reflected in the proposed TIF plans. City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us 7v City, Oshkosh Staff has also initiated the clubhouse demolition process which starts with an asbestos investigation and asbestos removal. The demolition of the clubhouse will not occur until this spring. The Plan Commission approved the draft Certified Survey Map on December 19, 2017 and it was recorded on December 27, 2017. A second CSM will be required for any right-of-way or easement dedications needed for the public improvements that still need to be designed. The second CSM will come before Council in February, 2018. WEDC has informed city staff that a grant for a part of the infrastructure is not a good candidate. WEDC suggested that the City saves the one grant application per year for a possible Sawdust District or Central City grant application later this year. Staff continues to work on the WisDOT grant and the WisDNR grant. Tax Increment Finance Plans Staff and Ehlers have completed the drafts on a Pay -go - Tax Increment Finance Plan #34 for the Oshkosh Corporation Global Headquarters and Tax Increment Finance Plan #35 for the Oshkosh Avenue Corridor Redevelopment. Staff presented the draft plans to the Joint Review Board and Plan Commission on January 2, 2018. The Plan Commission approved each TIF Plan. Both TIF Plans are designed to provide the Council with maximum flexibility to reimburse the City for the upfront public infrastructure costs necessary for the Oshkosh Corporation Development as well as other projects in and around the corridor. While both TIF Districts are closely intertwined, staff is recommending that the City create two TIF Plans to best serve the City's interests in the development situation for the following reasons: • Because the Oshkosh Corporation TIF anticipates pay -go payments, it is desirable to keep this project separate from any other tax increment generated along Oshkosh Avenue. • Because of the pay -go financing of both a grant to Oshkosh Corporation and an incentive payment, it is anticipated that the Oshkosh Corporation TIF will generate little or no increment for public costs for at least 13 years. Creation of a separate TIF along Oshkosh Ave. may allow the City to reimburse itself for a part of the infrastructure costs the City is building and financing in the area through the creation of the second TID. City Hall, 215 Church Avenue P.O. Box 1 130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us • The Oshkosh Ave. TIF can include the streetscaping and Sawyer intersection improvements which have been previously identified as desirable for this area and are not directly related to the Oshkosh Corporation development. • The Oshkosh Ave. TIF life can extend for 27 years, greater than the 20 year life for the Oshkosh Corporation TIF. Oshkosh Corporation TIF The proposed TIF Plan matches the proposal the City submitted to Oshkosh Corporation last fall. The key element is the Pay -go payments for Oshkosh Corporation in the amount of $6,000,000 and an incentive payment for value created which generates increment at an amount greater than $500,000 each year. After the $6,000,000 is paid, the Council can choose to redirect the first $500,000 of tax increment each year to reimbursing the City for the upfront costs and/or paying for other project costs. The TIF Plan will include the option to reimburse the city for the stormwater, street and utility costs for the Oshkosh Corporation project. Oshkosh Avenue TIF The major costs for this City -initiated TIF will be public infrastructure costs needed for the redevelopment of Oshkosh Avenue. The street, intersections, roundabout and other infrastructure serving this area and necessary for the development of the Oshkosh Corporation site could be reimbursed by this TIF. In addition, this TIF plan will include the potential reconstruction of the Oshkosh Avenue/Sawyer Street intersection which is the most expensive estimated project cost. In addition, project costs for the Oshkosh Ave redevelopment could include stormwater management, streetscaping and a new Revolving Loan Fund that could be used to assist property owners to make improvements to the private properties in the corridor. The TIF Plans will come before the Council on January 23, 2018 for possible action. Development Agreement Staff has done preliminary work on the Development Agreement, however, much of it depends on the draft TIF Plans which are drafted, and Council direction. Staff anticipates a closed session with Council at their January 9, 2018 meeting to review the draft Development Agreement elements and conditions that are reflected in the proposed TIF plans. City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.cl.oshkosh.wi.us Timeline New Zoning District — Plan Commission is recommending the creation of a new zoning district, Corporate Business Park; the district will encompass the Oshkosh Corporation Global Headquarters campus and the commercial properties on the north side of Oshkosh Ave. The new draft code will be on the Council's January 9, 2018 agenda for action. Rezoning — If the Council creates the new Corporate Business Park zoning district, the Plan Commission is recommending a rezoning of the parcels for the Oshkosh Corporation Global Headquarters and the commercial parcels on the north side of Oshkosh Avenue to Corporate Business Park. The proposed rezoning will be on the Council January 9, 2018 agenda for action. Oshkosh Corporation — Staff continues to meet with Oshkosh Corporation representatives on a frequent basis as they develop their site plans and building plans. Submittal of their draft plans is still planned for the next month or so. They will also be doing additional soil borings on the site in January, weather permitting. City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us