HomeMy WebLinkAbout12. 18-71 FEBRUARY 13, 2018 18-71 RESOLUTION
(CARRIED 6-0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE AMENDMENTS TO 2018 OPERATING BUDGET—
COMMUNITY DEVELOPMENT SPECIAL FUND; TIF 34
OSHKOSH CORPORATION GLOBAL HEADQUARTERS; AND
TIF 35 OSHKOSH AVENUE CORRIDOR
INITIATED BY: DEPARTMENT OF PUBLIC WORKS
WHEREAS, on November 28, 2018, the Common Council adopted the 2018
Operating Budget; and
WHEREAS, the Oshkosh Housing Authority is rehabilitating the former Waite
Rug property within the City and has requested assistance from the City to take
advantage of the City's rates for excavation, removal and disposal of contaminated soils
at the site and it is necessary to provide for an additional three hundred thousand dollars
in the Community Development Special Fund for this purpose which amount will be
reimbursed by the Housing Authority; and
WHEREAS, it is necessary to establish a fund for TIF 34 Oshkosh Corporation
Global Headquarters and TIF 35 Oshkosh Avenue Corridor to allow expenditures to be
made within those newly created TIF Districts.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that attached Amendment #3 to the 2018 Operating Budget Amendment is
hereby approved.
TO: Honorable Mayor and Members of the Common Council
FROM: Allen Davis, Community Development Director
DATE: February 8, 2018
RE: Res. 18-71 Approve Budget Amendment to Community Development Special
Fund; $300,000; TIF #34 $75,000 & TIF #35 $25,000
BACKGROUND
Special Fund: The Oshkosh Housing Authority is rehabilitating the Waite Rug site and there
are significant environmental clean-up costs related to the project. The City has the
opportunity to assist with the project with tipping fees at the landfill. The tipping fees will be
fully reimbursed by the Oshkosh Housing Authority.
TIFs: Since the approval of Tax Increment Finance (TIF) Districts #34 and TIF #35, staff has
estimated the costs that will be required in 2018 to advance the development of the Oshkosh
Corporation Headquarters project and the Oshkosh Avenue Corridor. These development
costs are not in the 2018 budget but are costs that must be paid upfront, prior to any tax
increment being generated to pay these costs. In addition, since both the TIFs are City -
sponsored, there are no application fees from which to draw these funds.
ANALYSIS
Special Fund: The $300,000 budget amendment is an estimate for the tipping fees for the
environmental clean-up of the Waite Rug project. The tipping fees estimate is based on the
number of tons of landfilled material generated at the site.
TIFs: The development costs for the TIFs include fees paid for the creation of the districts and
the documentation and agreements related to the TIF developments. These costs include:
• city's financial consultant -Ehlers,
• outside attorney fees,
• any surveyor fees for the CSMs that create new lots and dedicate right-of-way,
• title searches,
• Department of Revenue fees
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
• Other development costs not related to the infrastructure.
These fees are an estimate of the 2018 costs. The 2019 City budget will contain estimates for
future year developmental costs and will be determined by the timing of the development and
needs of the TIF District as the projects proceed.
FISCAL IMPACT
Special Fund: The Oshkosh Housing Authority will reimburse the City for all tipping fees.
There is no impact to the City's 2018 budget.
TIFs: These 2018 costs will be paid out of future TIF account increment for TIFs 34 and 35. Until
this increment is generated these expenditures will show a negative cash balance in TIF 34 & 35.
However, there is sufficient cash in other TIF accounts to cover this liability. There is no impact
to the City's operating budget.
RECOMMENDATION
Council approves a Budget Amendment to Community Development Special Fund; $300,000;
TIF #34 $75,000 & TIF #35 $25,000.
Submitted, Approved:
4
Allen Davis Mark A. Rohloff
Community Development Director City Manager
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
Amendment 3
2018 Budget Amendments
CDBG Revolving Loan Fund (0307)
Account Description(s):
Contractual Services
TOTAL
APPROVED AMENDMENT: 01.09.18 Res 18-04
Add: Project Expenditures to include rehabilitation and down payment
assistance of $800,000.00
Revolving Loan Fund Balance $800,000
$ 800,000
$ 800,000
$ 1,638,250
Senior Center Building Account (0201) Account Description(s):
APPROVED AMENDMENT: 01.09.18 Res 18-04 Permits Other Materials TOTAL
Add: Room Renovation $5,000.00
Revolving Loan Fund $5,000 $ 350 $ 4,650 $ 5,000
Public Works Special Fund (0307) Account Description(s):
APPROVED AMENDMENT: 01.23.18 Res 18-55 Misc Contractual Srvs TOTAL
Add: Lead Service Line Replacement Program
DNR Grant Awarded 2017 $500,000 $ 437,900 $ 437,900
Community Development Special Fund (0249)
Account Description(s):
Contractual Services
TOTAL
PROPOSED AMENDMENT: 02.13.18 Res 18 -XX
Add: Waite Rug Environmental Cleanup Assistance
Reimbursable Expenditure
$ 300,000
$ 300,000
$ 1,638,250
TIF #34 Oshkosh Corp Headquarters (0580)
Account Description(s):
Multiple Accounts
TOTAL
PROPOSED AMENDMENT: 02.13.18 Res 18 -XX
Add: Development Costs
Future Year(s) Increment
$ 75,000
$ 75,000
$ 1,638,250
TIF #35 Oshkosh Ave Corridor (0581)
Account Description(s):
Multiple Accounts
PROPOSED AMENDMENT: 02.13.18 Res 18 -XX
Add: Development Costs
Future Year(s) Increment
$ 25,000
$ 1,638,250
$ 4,650
1 $ -
Is -
Is -
Is -
TOTAL
$ 25,000
$ 1,642,900