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HomeMy WebLinkAbout38. 18-59 JANUARY 23, 2018 18-59 RESOLUTION (CARRIED 6-1P LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE TAX INCREMENT DISTRICT NO. 34 PROJECT PLAN; DESIGNATE TAX INCREMENT DISTRICT NO. 34 BOUNDARIES; CREATE TAX INCREMENT DISTRICT NO. 34 OSHKOSH CORPORATION GLOBAL HEADQUARTERS INITIATED BY: CITY ADMINISTRATION PLAN COMMISSION RECOMMENDATION: Approved WHEREAS, the City of Oshkosh (the "City") has determined that use of Tax Incremental Financing is required to promote development and redevelopment within the City; and WHEREAS, Tax Increment District No. 34 (the "District") is proposed to be created by the City in accordance with the provisions of Wisconsin Statutes Section 66.1105 (the "Tax Increment Law"); and WHEREAS, a Project Plan for the District has been prepared that includes: a. A statement listing the kind,number and location of all proposed public works or improvements within the District, or to the extent provided in Wisconsin Statutes Sections 66.1105(2)(k) and 66.1105(4)(gm), outside of the District; b. An economic feasibility study; c. A detailed list of estimated project costs; d. A description of the methods of financing all estimated project costs and the time when the related costs or monetary obligations are to be incurred; e. A map showing existing uses and conditions of real property in the District; f. A map showing proposed improvements and uses in the District; g. Proposed changes of zoning ordinances, master plan, map,building codes and City ordinances; h. A list of estimated non-project costs; i. A statement of the proposed plan for relocation of any persons to be displaced; j. A statement indicating how the District promotes the orderly development of the City; JANUARY 23, 2018 18-59 RESOLUTION CONT'D k. An opinion of the City Attorney or of an attorney retained by the City advising that the plan is complete and complies with Wisconsin Statutes Section 66.1105(4)(f); and WHEREAS, prior to its publication, a copy of the notice of public hearing was sent to owners of all property in the proposed district, to the chief executive officers of Winnebago County, the Oshkosh Area School District, and the Fox Valley Technical College District, and any other entities having the power to levy taxes on property located within the District, in accordance with the procedures specified in the Tax Increment Law; and WHEREAS, in accordance with the procedures specified in the Tax Increment Law, the Plan Commission, on January 2, 2018 held a public hearing concerning the project plan and boundaries and proposed creation of the District, providing interested parties a reasonable opportunity to express their views thereon; and WHEREAS, after said public hearing, the Plan Commission designated the boundaries of the District, adopted the Project Plan, and recommended to the Common Council that it create such District and approve the Project Plan NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that: 1. The boundaries of the District shall be named "City of Oshkosh Tax Increment District No. 34, Oshkosh Corporation Global Headquarters", are hereby established as specified in Exhibit A of this Resolution. 2. The District is created effective as of January 1, 2018. 3. The Common Council finds and declares that: (a) Not less than 50% by area of the real property within the District is suitable for industrial uses within the meaning of Wisconsin Statutes Section 66.1101, and has been zoned for industrial uses. (b) All real property within the TID is zoned for industrial use and will remain zoned for industrial uses for the life of the TID. JANUARY 23, 2018 18-59 RESOLUTION CONT'D (c) Based upon the finding, as stated in 3(a) above, the District is declared to be an Industrial district based on the identification and classification of the property included within the District. (d) The improvement of such area is likely to enhance significantly the value of substantially all of the other real property in the District. (e) The equalized value of the taxable property in the District plus the value increment of all other existing tax incremental districts within the City, does not exceed 12% of the total equalized value of taxable property within the City. (f) 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 Wisconsin Statutes Section 66.1105(5)(b). (h) The project costs relate directly to promoting industrial development of the area consistent with the purpose for which the District is created. (i) All property within TID #34 was within the City boundaries as of January 1, 2004. 4. The attached Project Plan for "City of Oshkosh Tax Increment District No. 34, Oshkosh Corporation Global Headquarters" is hereby approved, and the City further finds the Plan is feasible and in conformity with the master plan of the City. BE IT FURTHER RESOLVED that the Common Council of the City of Oshkosh hereby approves creation of Tax Incremental Financing District No. 34 Oshkosh Corporation Global Headquarters. "Exhibit A" TID 34 Oshkosh Corporation Global Headquarters Legal Description BEING ALL OF LOT 2 OF CERTIFIED SURVEY MAP NUMBER 7312 RECORDED AS DOCUMENT NUMBER 1757108 IN VOLUME 1, PAGE 7312, WINNEBAGO COUNTY REGISTER OF DEEDS, ALL PART OF THE NORTHWEST 1/40F SECTION 15 AND PART OF FRACTIONAL SECTION 10, ALL IN TOWNSHIP 18 NORTH, RANGE 16 EAST, CITY OF OSHKOSH, WINNEBAGO COUNTY, WISCONSIN BOUNDED AND DESCRIBED AS FOLLOWS: COMMENCING FROM THE WEST 1/4 CORNER OF SAID SECTION 15, TOWNSHIP 18 NORTH, RANGE 16 EAST; THENCE N01°26'05"W, 764.90 FEET ALONG THE WEST LINE OF SAID SECTION 15; THENCE N89°17'30"E, 1,728.60 FEET ALONG A LINE PARALLEL WITH THE SOUTH LINE OF THE FRACTIONAL NORTHWEST 1/4 OF SECTION 15 TO THE SOUTHERNMOST CORNER OF SAID LOT 2 OF CSM NUMBER 7312 AND POINT OF BEGINNING; THENCE N28°28'07"W, 1,224.29 FEET ALONG A WESTERN LINE OF SAID LOT 2;THENCE N46°4929"E, 1,103.75 FEET ALONG A NORTH LINE OF SAID LOT 2; THENCE N90°00'00"E, 483.82 FEET ALONG A NORTH LONE OF SAID LOT 2; THENCE S01°13'58"W, 1,054.73 FEET ALONG AN EAST LINE OF SAID LOT 2; THENCE S66°5845"W, 393.29 FEET ALONG A SOUTH LINE OF SAID LOT 2; THENCE S01°13'58"W, 455.29 FEET ALONG AN EAST LINE OF SAID LOT 2; THENCE S61°36'01"W, 353.21 FEET ALONG A SOUTH LINE OF SAID LOT 2 TO THE POINT OF BEGINNING. DESCRIBED AREA CONTAINS 1,429,335 SQUARE FEET OR 32.813 ACRES, MORE OR LESS. Tax Increment q u tr ict #34 Oshkosh Corporation GIlobp I peodquortiers Piairicell Identification Oshkosh tura Ibmeme,aylDistrict#34 m Oshkosh Coffpot 'Ron Global Headuottea:s. Parcel ld n tiificalion m{� 6wan rwvknrr>+w m+oa quu�'I.Ia, 0, m61 dk h5114bM d�moml Ad drr�re�u '�®uw � war#p a avTrrvk!� " Y w�m ar wP!, V., wq� Mwal r� rwim� mrw�rm " 'I1 VA9 ,ITER.,°,Y 0A 1,�4 NI rY.4.r Llai vv'" Vy, UN ) 'il�, d u.tl MP„f9 ptl,h NII„,, yyN!Q ➢"d I'", f 111 � : ...� .. i TQFAIl a, 5�a] 5+� w 5r7 , f I i ,; uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu uuuuuuuuuuuuu ' uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu �- � uuuuuuuuuuuuuuuuuuuu uuuuuuuuuuuuuuu ',I, �II v"" .r°'"' �° i � or v.✓cr. a a G„ G 1 aP' r 1 Ji 1 / " J e i „ 1 Legend TO 434 RykuGhV'arryN Q5 NG ."" reit P, www _ wwwwww�wwwwwiw___ 1 it fif y r: V'alfoaf��;p r"a Iu jY ll:b I^�up GI�:a�co C1 y i `,„1-1 Ilk F"ii,J_.p ari^uJ l'sr I.hleii,s F1 1 g 9 a II'iltu1,ry '1 8 2£B 1 E3 TO: Honorable Mayor and Members of the Common Council FROM: Darryn Burich Director of Planning Services DATE: January 18, 2018 RE: Approve Tax Increment District No. 34 Project Plan; Designate Tax Increment District No. 34 Boundaries; Create Tax Increment District No. 34 Oshkosh Corporation Global Headquarters; (Plan Commission recommends approval) BACKGROUND Tax Incremental District No. 34 (the "TID" or "District") is a proposed industrial district, comprising 32.80 acres of the Lakeshore Municipal Golf Course, being created to facilitate the construction of Oshkosh Corporation's new global headquarters which will help to retain 450 current jobs as well as create an additional 200 jobs in the future. TIF will be used to pay development incentives to Oshkosh Corporation and offset costs associated with infrastructure development and site preparation of the area. TID No. 34 is a city initiated TID. The City anticipates making expenditures of approximately $12.24 million to undertake projects identified in the Project Plan with major costs going to infrastructure development, site preparation, and development incentives. 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 in excess of $500,000 annually. All development incentive payments will be made on "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 Plan to proceed including; street improvements; water and sanitary sewer system improvements; storm water management improvements; demolition of the existing clubhouse; natural gas and electric installation; construction of Riverwalk trail; and a traffic impact analysis. Page 20 of the Project Plan shows the map of proposed improvements (in and outside the district) and detailed estimated project costs are on page 22. The Project Plan includes a statement listing the kind, number, and location of proposed improvements. It contains an economic feasibility analysis, a detailed list of estimated project costs and timing of those costs as well as a method of financing. These costs are described starting on page 15 of the Project Plan. The Project Plan also includes costs outside the district and within 1/2 mile of the boundary of the district. These costs are described on page 18 of the Project Plan. As an Industrial TID, this District may stay open for 20 years and current projections have it running out its entire statutory timeframe. Using the City's new TIF scoring matrix (attached) this TID proposal received a composite staff score of 93 points. The proposed TID received high point totals for: proposed employment potential; attracting, retaining or expanding businesses; and the presence of extraordinary development costs. ANALYSIS As a result of the creation of this District, the City projects that additional land and improvements value of no less than $19,008,132 will result from the 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 direct result of the improvements made and projects undertaken within the District. A table detailing assumptions as to the timing of new development and redevelopment and associated values is shown on page 24 of the Project Plan. The District is being created 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 and is being rezoned from Institutional (I) to Corporate Business Park with a Planned Development Overlay. The proposed Plan is in general conformance with the City of Oshkosh's Comprehensive Plan identifying the area as appropriate for commercial. 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. FISCAL IMPACT Oshkosh Corporation will receive the entire increment for the first 12 years of the district. Starting in year 13, the first $500,000 of increment will be retained by the City to pay for infrastructure improvements and any increment above the $500,000 will be provided as incentive to Oshkosh Corporation. City Hall • 215 Church Avenue • P.O. Box 1130 • Oshkosh, WI 54903-1130 http://www.ci.oshkosh.wi.us RECOMMENDATION The Plan Commission recommended approval of Tax Increment District No. 34 Project Plan and the designation of the boundaries at its January 2, 2018 meeting. Respectfully Submitted, Darryn Burich Director of Planning Services Approved: ",- Kwe�� Mark A. Rohloff City Manager City Hall • 215 Church Avenue • P.O. Box 1130 • Oshkosh, WI 54903-1130 http://www.ci.oshkosh.wi.us Project: Oshkosh Corp Global Headquarters, TID #34 Type of TID: Economic Development Industrial and Business Park Development Criteria Score Notes 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 Retaining Oshkosh Corp's global headquarters City's economic base. 20 footage in Oshkosh. 2. Projects that involve development that is targeted to encourage an inflow 5 points if market stud shows a or leakage articular product or service that current) p Y gap g p p Y Amen g pace Development brio Class Aofflces which of customers from outside the city of that provides services or fill 3 is not offered in the neighborhood or area Oshkosh currently does not have and also bring underserved markets in the City additional services In surrounding areas. 3. Presence of extraordinary development/redevelopment costs such as: a. Remodeling/Rehab/Demo 20 points if costs are greaterthan 20% for Fair Market Value (FMV); There will be high costs for installing public b. Environmental Remediation m 20 of f FMV 10 % 15 points if costs are 1 10 points if costs are 10 % of FMV infrastructure, environmental work, and c. Facility Expansion 5 points if costs are 5% of FMV construction of the facility. d. Public Infrastructure 4. Proposed Employment Potential 40 5 points for every 5 permanent jobs created or retained at or above the current Maximum 40 points allowed. Otherwise Oshkosh/Neenah MSA median income level points would likely be 200+. S. Projects that directly implement specific recommendations of the City's strategic planning documents such as: The city's Bike and Ped Plan references a. The Comprehensive Plan installing a trail in this area, the city's 2017- b. The Downtown Action Plan 10 points if project is implements a specific recommendation in local planning document; 2018 Strategic Plan states the city will attract c. The Riverwalk Plan 10 5 points if project implements a general recommendation in a local planning document and retain business and support d. The Vision Report redevelopment opportunities, the Economic e. Imagine Oshkosh Development Strategic Plan states the city will f. Other retain businesses and foster economic growth in the community. 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 There has been no information submitted to b. Use of Green infrastructure 0 on-site renewable sources. award points in this category. c. Solar or wind energy production d. TMDL-Phosphorus exceeds minimum requirements 5 points if site exceeds architectural design OR landscape requirements by 15% per Zoning 7. Quality of development and overall aesthetics (architectural, site Code; There has been no information submitted to design, landscaping, etc.) beyond that which is minimally required by the 0 Zoning Ordinance 5 BONUS points if BOTH architectural and landscaping requirements exceed 15% per Zoning Code award points in this category. TOTAL SCORE 93 1 Point Total must be greater than 50 points or Council Waiver is required ITEM: PUBLIC HEARING ON PROPOSED CREATION OF TAX INCREMENT FINANCING DISTRICT NO. 34 OSHKOSH CORPORATION GLOBAL HEADQUARTERS; DESIGNATION OF BOUNDARIES AND APPROVAL OF PROJECT PLAN Plan Commission meeting of January 2, 2018 Prior to taking action on proposed Tax Increment District (TI:D) No. 34 and the designation of boundaries for said TID, the Plan Commission is to hold a public hearing and take comments concerning proposed creation of TID No. 34. The public hearing is required as part of the formal review process the City must follow in the creation of any tax incremental financing district or amendment thereto. GENERAL INFORMATION Applicant/Owner: City of Oshkosh Administration GENERAL DESCRIPTION/BACKGROUND Tax Incremental District No. 34 (the "TID" or "District") is a proposed industrial district, comprising 32.80 acres of the Lakeshore Municipal Golf Course, is being created to pay the costs of development incentives and public infrastructure needed to facilitate construction of Oshkosh Corporation's new global headquarters which will help to retain 450 current jobs as well as create an additional 200 jobs over time. The City anticipates making expenditures of approximately $12.24 million to undertake projects identified in the Project Plan with major costs going to infrastructure development, site preparation, and development incentives. 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 in excess of $500,000 annually. All development incentive payments will be made on "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 Plan to proceed including; street iunprovements; water and sanitary sewer system improvements; storm water management improvements; demolition of the existing clubhouse; natural gas and electric installation; construction of Riverwalk trail; and a traffic impact analysis. Page 20 of the Project Plan shows the map of proposed improvements (in and outside the district) and detailed estimated project costs are on page 22. The Project Plan includes a statement listing the kind, number, and location of proposed improvements. It contains an economic feasibility study, a detailed list of estimated project costs and timing of those costs as well as a method of financing. These costs are described starting on page 15 of the Project Plan. The Plan also includes costs outside the district and within 1/2 mile of the boundary of the district. These costs are described on page 18 of the Project Plan. ANALYSIS As a result of the creation of this District, the City projects that additional land and improvements value of no less than $19,008,132 will result from the 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 direct result of the improvements made and projects undertaken within the District. A table detailing assumptions as to the timing of new development and redevelopment and associated values is shown on page 24 of the Project Plan. Based on the Economic Feasibility Study shown on page 23 of the Project Plan, this T I F District is expected to remain open for its entire statutory maximum life of 20 years. The District is being created 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 and is being rezoned from Institutional (I) to Corporate Business Park with a Planned Development Overlay. The proposed Plan is in general conformance with the City of Oshkosh's Comprehensive Plan identifying the area as appropriate for commercial. 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. RECOMMENDATIONS/CONDITIONS Staff recommends approval of the Project Plan and Boundaries for TID #34 as proposed. The Plan Commission approved -Creation of Tax Increment Financing District No. 34 Oshkosh Corporation Global Headquarters; designation of boundaries and approval of project plan. The following is the Plan Commission's discussion on this item. Mr. Burich presented the item and reviewed the site and surrounding area as well as the land use, zoning classifications and the boundaries of the TID district. He discussed improvements included in the TID project plan as well as the estimated project costs and method of financing. Mr. Burich stated there are outside the district costs, for example N. Westfield St. and Koeller St. improvements that will be paid for by TID #34 and TID #35. Ms. Propp questioned why project costs in TID #34 and #35 were duplicated. Mr. Burich responded that some of the costs are shared between the two TIDs districts, such as the Traffic Impact Analysis and are considered outside the district costs. Mr. Bowen inquired about the riverfront trail and how it is incorporated in the larger riverwalk and trail system in the City. TID #34 Oshkosh Corporation Global Headquarters Mr. Burich responded that the goal is to connect the riverfront trail to the Tribal Heritage Trail which connects to the Wiouwash Trail. To the east, the trail could pass through Rainbow Park, over the Oshkosh Avenue Bridge to connect with the trails running east and west along the north shore of the Fox River. Mr. Bowen questioned why the administrative costs were delayed to years 2031-2039. Mr. Taves responded that the administrative costs are delayed in TID #34 because the first $500,000 generated by tax revenue from the TID will go to Oshkosh Corporation until the total amount aggregates to $6 million. After the $6 million is reached, any increment above $500,000 for the life of the TID will get paid to Oshkosh Corporation. Roughly the first 10 years of the TID, there will be no monies that remain in the TID to pay for administrative costs. Mr. Kiefer questioned if the money for infrastructure costs such as storm water, sewer and street construction is paid for by the TID or utilities. Mr. Taves responded that most of the infrastructure costs are to be paid with existing funding from previous borrowing, grant funds and tax increment financing. Mr. Bowen questioned if special assessments are anticipated for the infrastructure. Mr. Gohde responded that there has not been an exact determination if there will be special assessments. Ms. Propp inquired if TID money will pay for park improvements. Mr. Burich responded park improvements could be paid for by the money from the land sale but has not been determined because the park plan is not in place. Mr. Fojtik opened the Public Hearing on the proposed Tax Increment Financing District #34 Oshkosh Corporation Headquarters. Dan Jensen, 1319 Oshkosh Avenue, inquired what the financial ramifications are for owning a home in TID #34 or #35. Mr. Taves explained that homes in a TID are still assessed the same as homes outside the TID and pay the same tax rate and tax bill. If improvements to a property are made during the life of the TID, the increment from the improvements goes back into the TID to pay for the program of improvements that the City intends to make within the district. Mr. Fojtik closed the Public Hearing on the proposed Tax Increment Financing District #34 Oshkosh Corporation Headquarters. Motion by Borsuk to approve the proposed creation of Tax Incremental Financing District #34 Oshkosh Corporation Headquarters; Designation of boundaries and approval of project plan. Seconded by Vajgrt. TID #34 Oshkosh Corporation Global Headquarters The Commission discussed the financing for the infrastructure and their concerns about using special assessments to pay for the infrastructure. Motion carried 9-0. TID #34 Oshkosh Corporation Global Headquarters 40 EHLERS LEADERS IN PUBLIC FINANCE January 10, 2017 Project Plan for the Creation of Tax Incremental District No. 34 (Oshkosh Corporation Global Headquarters) Oshkosh Organizational Joint Review Board Meeting Public Hearing: Approval by Plan Commission: Adoption by Common Council: Approval by the Joint Review Board: January 2, 2018 January 2, 2018 January 2, 2018 Scheduled for January 23, 2018 Scheduled for January 30, 2018 Tax Incremental District No. 34 Creation Project Plan City of Oshkosh Officials Common Council Steve Cummings Steve Herman Debra L. Allison-Aasby Lori Palmeri Caroline Panske Thomas R. Pech, Jr. Jake Krause City Staff Mark Rohloff Allen Davis Lynn Lorenson Darryn Burich Kelly Nieforth Trena Larson Pamela Ubrig Plan Commission David Borsuk Edward Bowen Thomas Fojtik, Chair Mike Ford John Hinz Joint Review Board Mark Rohloff, City Manager Mark Harris, County Executive Melissa Kohn, Director — Oshkosh Campus Allison Garner, School Board President To Be Appointed Mayor Deputy Mayor Council Member Council Member Council Member Council Member Council Member City Manager Community Development Director City Attorney Planning Director Economic Development Services Manager Finance Director City Clerk John Kiefer Kathleen Propp Robert Vajgrt Mayor Steve Cummings City Representative Winnebago County Fox Valley Technical College District Oshkosh School District Public Member 1-800-552-1171 1 www.ehlers-iiic.com 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 ANNEXEDPROPERTY...........................................................................................................................................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 PLAN COMMISSION PUBLIC HEARING/MINUTES OF JANUARY 2, 2018 ............................................33 COMMON COUNCIL CREATION RESOLUTION OF JANUARY 23, 2018 .............................................36 JOINT REVIEW BOARD RESOLUTION OF JANUARY 30, 2018.......................................................... 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 through the year 2037. 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. Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 4 January 10, 2018 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. Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 4 December 28, 2017 TID 34 LEGAL DESCRIPTION BEING ALL OF LOT 2 OF CERTIFIED SURVEY MAP NUMBER 7312 RECORDED AS DOCUMENT NUMBER 1757108 IN VOLUME 1, PAGE 7312, WINNEBAGO COUNTY REGISTER OF DEEDS, ALL PART OF THE NORTHWEST 1/4 OF SECTION 15 AND PART OF FRACTIONAL SECTION 10, ALL IN TOWNSHIP 18 NORTH, RANGE 16 EAST, CITY OF OSHKOSH, WINNEBAGO COUNTY, WISCONSIN BOUNDED AND DESCRIBED AS FOLLOWS: COMMENCING FROM THE WEST 1/4 CORNER OF SAID SECTION 15, TOWNSHIP 18 NORTH, RANGE 16 EAST; THENCE N01°26'05"W, 764.90 FEET ALONG THE WEST LINE OF SAID SECTION 15; THENCE N89°17'30"E, 1,728.60 FEET ALONG A LINE PARALLEL WITH THE SOUTH LINE OF THE FRACTIONAL NORTHWEST 1/4 OF SECTION 15 TO THE SOUTHERNMOST CORNER OF SAID LOT 2 OF CSM NUMBER 7312 AND POINT OF BEGINNING; THENCE N28°28'07"W, 1,224.29 FEET ALONG A WESTERN LINE OF SAID LOT 2; THENCE N46°4929"E, 1,103.75 FEET ALONG A NORTH LINE OF SAID LOT 2; THENCE N90000'00"E, 483.82 FEET ALONG A NORTH LONE OF SAID LOT 2; THENCE S01013'58"W, 1,054.73 FEET ALONG AN EAST LINE OF SAID LOT 2; THENCE S66058'45"W, 393.29 FEET ALONG A SOUTH LINE OF SAID LOT 2; THENCE S0101358"W, 455.29 FEET ALONG AN EAST LINE OF SAID LOT 2; THENCE S61036'01"W, 353.21 FEET ALONG A SOUTH LINE OF SAID LOT 2 TO THE POINT OF BEGINNING. DESCRIBED AREA CONTAINS 1,429,335 SQUARE FEET OR 32.813 ACRES, MORE OR LESS. 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 fmdings are made: 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. 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. Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 5 January 10, 2018 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 fmdings, 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. Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 6 January 10, 2018 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 $19 million global headquarters which will include 150,000 — 160,000 square feet of Class A office space. The City expects that its investment in this District will result in the retention of 450 current jobs, and creation of up to an additional 200 jobs over time. The Project Costs included in this Plan relate directly to promoting industrial development in the District consistent with the purpose for which the District is created. Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 7 January 10, 2018 SECTION 3: Preliminary Maps of Proposed District Boundary Tax Increment District #34 Vv E Oshkosh Corporation Global Headquarters ci,"A: s District Boundary Oshkosh Lake Butte des Monw 1 lrl$ Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 8 January 10, 2018 " Tax Increment District #34 � VV E Oshkosh Corporation (Global Headquarters a,"A S Parcel Identification Oshkosh Tax Increment District #34 - Oshkosh Corporation Global Headquarters . Parcel Identification Map Parcel N Owner local Address Land lmprw. ID Valve Volvo Tolal Egvallzed CVass Description Valu"a Volae Dwelling Census Zoning Trmu 'ell' 16.0647-00W CrY OF OSHKOSH 2175 PUNHC)QUA ST $01 $D $D $� 4 LAKESHORE GOLF COURSE D 1 10 1 TOTALS: 30 50 S*l SO Linke Billie des` Morls ui�k�f`""5F R vRn or o M&Dw Oe aFap M1+l- -- AY f lL !a2 ! i ip, b Legend F TID #34 Boundary 0 125 250 5IX7 75d Feat ` .. _. Dote: weanezdoy. DecemUe+1>, 2017 Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 9 January 10, 2018 SECTION 4 - Maps Showing Existing Uses and Conditions " Tax Increment District #34 E Oshkosh Corporation Global Headquarters ` S Existing Land Use Oshkosh Lake Butte 61e.5 A lr)t-ts J M TI❑ #34 Boundary 6 10944 2 404 BW t � � J Feet C�iv: Wvd vayaY• Cvcam4c. 13, 71 ? ko iz,; -- tFiE°INF AVE Existing land Use ® Institutional I I Commercial f, School SF & TF Residential Mixed -Use MF Residential Vacant Land 'NX'X Parks & Recreation Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 10 January 10, 2018 N Tax Increment District #34 ,A E Oshkosh Corporation Global Headquarters Existing Zoning Oshkosh I Lake Butle Y des Aforls 14 II � RAM UMU �I ` SR -2, SR -9 -SMU_ t �r NMU Y j Tone l7isfricfs SM U NMU: Neighborhood Mked-Use ` RMU: Rive&ont Mked-Use SMU: Suburbon Mixed-use UMU: Urban Mixed -Use Legends F t Insvtutional MR -20 SR -2; Single oro iy Residentlal - 2 - -TID#34 Boundary SR -5: Sin glEPam iyResidenVol -5 SR -4: Sin glePam AlResidenVol +-4 1 -PD r 0 t25 250 500 750 MR -12: Murii-FamityResidential - 12 Fees MR -20: Multi-0=omMyResldentiol-2R Coto: Wacnosclw, Docaobar 13, 2017 PD: Plannea Developmenf overlay Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 11 January 10, 2018 " Tax Increment District #34 E Oshkosh Corporation Global Headquarters s Existing Conditions Oshkosh Lake Bite cies moms IU I� m P,EAVE 6X� Legend ED TID #34 Boundary zD 125 250 500 750 Feet Daf—VCd c .y, D« b6 , U. 2017 - Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 12 January 10, 2018 WOR P Imj DQ 5.. .. PFPP AVE TX[X Il[hY[ AYF GPA I XAiA I r { F F -77T I� m P,EAVE 6X� Legend ED TID #34 Boundary zD 125 250 500 750 Feet Daf—VCd c .y, D« b6 , U. 2017 - Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 12 January 10, 2018 SECTION 5: Preliminary Parcel List and Analysis Notes: 'Parcel number shown is for Lakeshore Municipal Golf Course. The 32.80 acre lotto be created by Certified Survey Map priorto December 31, 2017 will be assigned a new parcel number. Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 13 January 10, 2018 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 Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 14 January 10, 2018 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. Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 15 January 10, 2018 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 Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 16 January 10, 2018 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. Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 17 January 10, 2018 Redevelopment Authority (RDA) Activities Contribution to Redevelopment Authority As provided for in Wis. Stats. § 66.1105(2)(f)l.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)l.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 %2 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 %2 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)l.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. Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 18 January 10, 2018 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. Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 19 January 10, 2018 SECTION 8 - Mar) Showina Proposed Improvements and Uses " Tax Increment District #34 E Oshkosh Corporation Global Headquarters O. Proposed Improvements Oshkosh Lake Butte des marts Clubhouse Demolition r' w Riverfront Trail oI� rm Sewer Outfall ;rte Trail System f ll N. Koeller Street & Street Extension, St'reetscaping, � lic Utilities � x'11 Rath Lane Vater Main ,' • O"s_hkosh Ave ; a . Trail ;• System .R.TCRM1�S SR fI PAH ❑Q PN i-0Ra� GR #34 l IF PR Ay' -ATHERIH[ AVE N. -:Westfield Sfreef— GPANM1IA M1YF Street Extens!ibn, � Streetscaping =_=w— Public =w— - I Public Utiliti ME ++� r` * ! Oshkosh=Aloe. Bulyne Utili#s sy-iJ' • I mAPiE hVF s. •� k OshkoshlAve.: ." �� `•��•& N. Westfield St.. Oshkosh Ave. Inters tion & N. KoeIIer St o Im rove HAVE Inte I ction � ,� _ - A GSI pK_ Imencs I Legend wia Ln r" �TID #34 Boundary 0 100 aoo o0 600 Feet fJ ba fe: Vd d_sd.V. 6cc b- N. 3017 Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 20 January 10, 2018 Tax Increment District #34 VVE Oshkosh Corporation Global Headquarters ct.Y4 S Proposed Land Use Oshkosh La11le Butle cies :Wof-ls TID #34 Oshkosh Corporation Global Headqua►fers ED TID #34 Boundary 0 100 200 400 600 Feet 7n}=: Yi =�r�.-•-1ny, h7fiC9mt]Fir 13.701 t rna:rt ndt � Proposed Land Use EaInstRutionai [ Commercial School ♦ ; + SF & TF Residential Mixed -Use go MF Residential EMVacant Land \NX Parks & Recreation Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 21 January 10, 2018 f r r.,.:., � ff • i♦ i' •t t t• ti+ t 1 rna:rt ndt � Proposed Land Use EaInstRutionai [ Commercial School ♦ ; + SF & TF Residential Mixed -Use go MF Residential EMVacant Land \NX Parks & Recreation Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 21 January 10, 2018 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 Project Project Name/Type Funding Total Cost ID Period 1 N. Westfield St. Extension & Intersection Improvements 2018 $ 1,212,008 2 KoellerSt. Extension & Intersection Improvements 2018 $ 1,429,680 3 Water Main Extension - Rath Lane , West of Koeller 2018 $ 333,300 4 Storm Sewerfor 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 RiverfrontTrail/Riverwalk 2018 $ 600,000 12 TrafficlmpactAnalysis 2018 $ 25,000 13 Environmental Contingency 2018 $ 250,000 14 5% Contingencyon 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 Hand 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: 1Cost estimates for pub is infrastructure I ine items provided by City staff. Development incentives per draft development agreement. 2Cash on hand is unspent proceeds from prior year borrowings as a result of lower bid prices and deferred projects. Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 22 January 10, 2018 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 I and Table 2 included hereafter include the assumptions as to timing and values of the development and projections of tax increment collections. Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 23 January 10, 2018 Table 1— Development Assumptions Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 24 January 10, 2018 City of Oshkosh, Tax Increment District # 34 Development Assum• • Oshkosh Corp. Construction Year Actual HQ_l Annual Total Construction Year 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: lAssumed valuation is total needed to generate $500,000 in tax increment based on 2017/18 TID Interim Rate. Table 1— Development Assumptions Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 24 January 10, 2018 District Creation Date Valuation Date Expenditure Period/Termination Extension Eligibility/Years January23, 2018 Jan 1, 2018 15 1/23/2033 Yes 3 Construction I of latio n Year Va Iue Added Va l uation Year Increment Appreciation Factor Base Tax Rate Tax Exempt Discount Rate Total Increment Revenue Year Tax Rate 0.00% E--]Ap ply to Base Va luer $26.30 4.00% Tax Exempt NPV Taxable NPV Tax Increment Calculation 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 0 500,000 538,527 510,060 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 Future Value of Increment 9,625,000 Notes: 'Tax rate shown is actual TID Interim Rate for the 2017/18 levy per DOR Form PC -202 (Tax Increment Collection 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 through the year 2037 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 25 January 10, 2018 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: Projects Fund $ 1,359,000 —Capital Water Enterprise Fund $ 881,000 Sewer Enterprise Fund $ 228,600 Stormwater Enterprise Fund $ 827,000 Revolving Loan Fund $ 900,000 —City 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 26 January 10, 2018 C- 0 O 0 N O O y 00 = City of Oshkosh, Tax Increment District # 34 0 Cash Flow Projection 111111IF-Projected Revenues Expenditures Balances Advances Development Incentives Development City Incentive Year Tax From Other Total Repayment of Total Incentives City Advances Increments Funds' Revenues Contribution' Payments' Total Project Costs Advances° Admin. Expenditures Annual Cumulative Outstanding Outstanding Year 2018 2,214,166 2,214,166 2,214,166 2,214,166 0 0 6,000,000 2,280,591 2018 2019 0 0 0 0 6,000,000 2,347,016 2019 2020 125,000 125,000 125,000 0 125,000 125,000 0 0 5,875,000 2,413,441 2020 2021 500,000 500,000 500,000 0 500,000 500,000 0 0 5,375,000 2,479,866 2021 2022 500,000 500,000 500,000 0 500,000 500,000 0 0 4,875,000 2,546,291 2022 2023 500,000 500,000 500,000 0 500,000 500,000 0 0 4,375,000 2,612,716 2023 2024 500,000 500,000 500,000 0 500,000 500,000 0 0 3,875,000 2,679,141 2024 2025 500,000 500,000 500,000 0 500,000 500,000 0 0 3,375,000 2,745,566 2025 2026 500,000 500,000 500,000 0 500,000 500,000 0 0 2,875,000 2,811,991 2026 2027 500,000 500,000 500,000 0 500,000 500,000 0 0 2,375,000 2,878,416 2027 2028 500,000 500,000 500,000 0 500,000 500,000 0 0 1,875,000 2,944,841 2028 2029 500,000 500,000 500,000 0 500,000 500,000 0 0 1,375,000 3,011,266 2029 2030 500,000 500,000 500,000 0 500,000 500,000 0 0 875,000 3,077,691 2030 2031 500,000 500,000 500,000 0 500,000 500,000 0 0 375,000 3,144,116 2031 2032 500,000 500,000 375,000 0 375,000 117,500 7,500 500,000 0 0 0 3,093,041 2032 2033 500,000 500,000 0 0 0 492,275 7,725 500,000 0 0 0 2,667,191 2033 2034 500,000 500,000 0 0 0 492,043 7,957 500,000 0 0 0 2,241,573 2034 2035 500,000 500,000 0 0 0 491,805 8,195 500,000 0 0 0 1,816,193 2035 2036 500,000 500,000 0 0 0 491,559 8,441 500,000 0 0 0 1,379,120 2036 2037 500,000 500,000 0 0 0 491,305 8,695 500,000 0 0 0 929,188 2037 2038 500,000 500,000 0 0 0 491,045 8,955 500,000 0 0 0 466,019 2038 0 0 0 (0)1 2039 2039 500,000 500,000 0 0 0 480,000 20,000 500,000 Total 1 9,625,000 2,214,166 11,839,166 6,000,000 0 6,000,000 2,214,166 3,547,531 77,468 1 11,839,166 1 Total P roj ected District Clos u re Yea r Notes: 'As identified in 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 on hand applied, the City expects to record an advance to the District to be repaid over the District's life. 'The 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. 3lncentive Payments are paid from available tax increment and are equal to any annual tax increment collected in excess of $500,000 through calendar year 2037. °Assumes 3% simple interest accrual on advances. 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 28 January 10, 2018 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 29 January 10, 2018 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 30 January 10, 2018 n, City f Oshkosh City Attorney's Office Phone: (920) 236-5115 Fax: (920) 236-5106 http://www.ci.oshkosh.wi.us December 27, 2017 Darryn Burich Director of Planning Services City of Oshkosh 215 Church Avenue Oshkosh, WI 54903-1130 Dear Mr. Burich: I reviewed the project plan for, City of Oshkosh Tax Increment District #34 Oshkosh Corporation Global Headquarters, pursuant to Section 66.1105(4)(0 of the Wisconsin Statutes. I find that the plan includes a statement listing the kind, number, and location of proposed public improvements within and outside the District. It includes an economic feasibility study, a detailed list of estimated project costs, and a description of the method of financing all estimated project costs, the time when the costs are to be incurred, and a list of estimated non -project costs. The plan contains maps of existing uses and conditions of real property, as well as, proposed improvements and uses. The plan identifies any proposed changes in zoning of the real property in the district, and any proposed changes in the City's master plan, map or other municipal codes required or proposed as part of the district. The plan includes a statement of the proposed method for relocation of any persons to be displaced. The plan further specifies that the district will promote the orderly development within the City, which is consistent with the City's Comprehensive Plan (Master Plan), building codes, and other city ordinances in relation to project elements. Upon adoption of the project plan by the Plan Commission and their submission to the City Council, all requirements of Section 66.1105(4)(0, Wisconsin Statutes, shall be complete and it is, therefore, my opinion that the project plan attached hereto is complete and complies with Wis. Stat. § 66.1105. Sincerely, CIT F OSHKOSH Lorenson City Attorney LL/tw City Attorney City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5115 http://www.ci.oshkosh.wi.us Exhibit A: Calculation of the Share of Projected Tax Increments Estimated to be Paid by the Owners of Property in the Overlying Taxing Jurisdictions Estimated Portion of Taxes that Owners of Taxable Property in each Taxing Jurisdiction g District would.. 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 Fox Valley Winnebago Oshkosh Area Technical Revenue Year County City of Oshkosh School District 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. Project Plan TID No. 34 Creation City of Oshkosh Prepared by Ehlers Page 32 January 10, 2018 PLAN COMMISSION MINUTES January 2, 2018 PRESENT: David Borsuk, Ed Bowen, Thomas Fojtik, John Hinz, Steve Cummings, Kathleen Propp, John Kiefer, Robert Vajgrt, Michael Ford EXCUSED: none STAFF: Darryn Burich, Planning Director; Mark Lyons, Principal Planner; Steven Wiley, Assistant Planner; Steve Gohde, Assistant Director of Public Works; Todd Taves, Ehlers Associates; Andrea Flanigan, Recording Secretary Chairperson Fojtik called the meeting to order at 4:00 pm. Roll call was taken and a quorum declared present. The minutes of December 19, 2017 were approved as presented. (Vajgrt/Ford) IV. PUBLIC HEARING ON PROPOSED CREATION OF TAX INCREMENT FINANCING DISTRICT #34 OSHKOSH CORPORATION HEADQUARTERS; DESIGNATION OF BOUNDARIES AND APPROVAL OF PROJECT PLAN Tax Incremental District No. 34 (the "TID" or "District") is a proposed industrial district, comprising 32.80 acres of the Lakeshore Municipal Golf Course, is being created to pay the costs of development incentives and public infrastructure needed to facilitate construction of Oshkosh Corporation's new global headquarters which will help to retain 450 current jobs as well as create an additional 200 jobs over time. The City anticipates making expenditures of approximately $12.24 million to undertake projects identified in the Project Plan with major costs going to infrastructure development, site preparation, and development incentives. 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 in excess of $500,000 annually. All development incentive payments will be made on "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 Plan to proceed including; street improvements; water and sanitary sewer system improvements; storm water management improvements; demolition of the existing clubhouse; natural gas and electric installation; construction of Riverwalk trail; and a traffic impact analysis. Page 20 of the Project Plan shows the map of proposed improvements (in and outside the district) and detailed estimated project costs are on page 22. Mr. Burich presented the item and reviewed the site and surrounding area as well as the land use, zoning classifications and the boundaries of the TID district. He discussed improvements included in the TID project plan as well as the estimated project costs and method of financing. Mr. Burich Plan Commission Minutes Page 33 January 2, 2018 stated there are outside the district costs, for example N. Westfield St. and Koeller St. improvements that will be paid for by TID #34 and TID #35. Ms. Propp questioned why project costs in TID #34 and #35 were duplicated. Mr. Burich responded that some of the costs are shared between the two TIDs districts, such as the Traffic Impact Analysis and are considered outside the district costs. Mr. Bowen inquired about the riverfront trail and how it is incorporated in the larger riverwalk and trail system in the City. Mr. Burich responded that the goal is to connect the riverfront trail to the Tribal Heritage Trail which connects to the Wiouwash Trail. To the east, the trail could pass through Rainbow Park, over the Oshkosh Avenue Bridge to connect with the trails running east and west along the north shore of the Fox River. Mr. Bowen questioned why the administrative costs were delayed to years 2031-2039. Mr. Taves responded that the administrative costs are delayed in TID #34 because the first $500,000 generated by tax revenue from the TID will go to Oshkosh Corporation until the total amount aggregates to $6 million. After the $6 million is reached, any increment above $500,000 for the life of the TID will get paid to Oshkosh Corporation. Roughly the first 10 years of the TID, there will be no monies that remain in the TID to pay for administrative costs. Mr. Kiefer questioned if the money for infrastructure costs such as storm water, sewer and street construction is paid for by the TID or utilities. Mr. Taves responded that most of the infrastructure costs are to be paid with existing funding from previous borrowing, grant funds and tax increment financing. Mr. Bowen questioned if special assessments are anticipated for the infrastructure. Mr. Gohde responded that there has not been an exact determination if there will be special assessments. Ms. Propp inquired if TID money will pay for park improvements. Mr. Burich responded park improvements could be paid for by the money from the land sale but has not been determined because the park plan is not in place. Mr. Fojtik opened the Public Hearing on the proposed Tax Increment Financing District #34 Oshkosh Corporation Headquarters. Dan Jensen, 1319 Oshkosh Avenue, inquired what the financial ramifications are for owning a home in TID #34 or #35. Plan Commission Minutes Page 34 January 2, 2018 Mr. Taves explained that homes in a TID are still assessed the same as homes outside the TID and pay the same tax rate and tax bill. If improvements to a property are made during the life of the TID, the increment from the improvements goes back into the TID to pay for the program of improvements that the City intends to make within the district. Mr. Fojtik closed the Public Hearing on the proposed Tax Increment Financing District #34 Oshkosh Corporation Headquarters. Motion by Borsuk to approve the proposed creation of Tax Incremental Financing District #34 Oshkosh Corporation Headquarters, Designation of boundaries and approval of project plan. Seconded by Vajgrt. The Commission discussed the financing for the infrastructure and their concerns about using special assessments to pay for the infrastructure. Motion carried 9-0. There being no further business, the meeting adjourned at approximately 5:20 pm. (Vajgrt/Bowen) Plan Commission Minutes Respectfully submitted, Darryn Burich Director of Planning Services Page 35 January 2, 2018