HomeMy WebLinkAbout52. Oshkosh Corporation UpdateTO: Honorable Mayor & Members of the Common Council
Mark Rohloff, City Manager
FROM: Allen Davis, Community Development Director
DATE: January 18, 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
and turning movements counts have been completed and alternative concepts are being
developed. A joint workshop with the City Council, Plan Commission and Traffic Review Board
is scheduled for January 30, 2018 at 5:30, City Hall, Room 404 to review the results and possible
alternatives.
City staff continues to work on surveying and 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. As a result,
the lot to be conveyed to Oshkosh Corporation is now 32.81 acres due to the city retaining the
water hazard. The recorded lot was created on December 27, 2017.
As mentioned in previous project updates, 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. 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 has been submitted to the State Historical Society for approval.
After the ground thaws this spring, the archeologist, working with a team from the University
of Wisconsin - Milwaukee, 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
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.
A second CSM will be required for the Koeller Street extension for right-of-way or easement
dedications needed for the public improvements, currently under design. A third CSM will also
be required for future Westfield Street and Oshkosh Avenue right-of-way dedication. The
second CSM for extending Koeller Street will likely come before Council later this winter,
depending on the traffic impact analysis results and additional preliminary design of the
infrastructure.
Staff continues to work on grant applications. The WisDOT grant will be submitted in the near
future, and the WisDNR grant will be submitted in May, 2018.
Tax Increment Finance Plans
The draft Tax Increment Finance Plans created by city staff and Ehlers is on the Council agenda
for action on January 23, 2018. The drafts include 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 1130 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.
Development Agreement
City Council gave direction to city staff regarding a Development Agreement during closed
session on January 9, 2018. City staff has finished editing the draft and has circulated the draft
for comments. The Development Agreement is scheduled for Council action on February 13,
2018.
Timeline
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
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
is still planned for the next month or so. Oshkosh Corporation performed additional soil
borings on the site in January.
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us