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HomeMy WebLinkAbout10. 19-07 JANUARY 8, 2019 19-07 RESOLUTION (CARRIED 6-0 LOST LAID OVER WITHDRAWN ) PURPOSE: AUTHORIZE APPLICATION FOR AN ECONOMIC DEVELOPMENT ADMINISTRATION (EDA) GRANT AND EXECUTION OF THE NECESSARY AGREEMENTS INITIATED BY: CITY ADMINISTRATION WHEREAS, the Public Works and Economic Development Act of 1965, Title III, establishes a planning partnership grant program for the funding of planning and programming of economic development activities by states, economic development districts and redevelopment areas; and WHEREAS, the City of Oshkosh (the "City') is authorized under the Economic Development Administration (EDA) under the Public Works and Economic Development Act of 1965 to submit an application for a public facilities grant under said Act for economic development activities; and WHEREAS, the City has determined the need for improved roadway system to serve the Transload site in the Southwest Industrial Park that would benefit the City; and WHEREAS, the City has participated in the applicable district Comprehensive Economic Development Strategy (CEDS) process which has been submitted to EDA; and WHEREAS, the City is authorized to submit grant applications to apply for a Public Works grant and to accept an EDA award; and WHEREAS, the City has agreed to provide the required local share of financing which is readily available for the sole use of the project, in the amount of$1,500,000. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the City be authorized to make application to the Economic Development Administration for a Public Works grant requesting $1,500,000 in federal funds which JANUARY 8, 2019 19-07 RESOLUTION CONT'D the City will match with more than 50 percent of the cost of the project currently estimated at $3,000,000, and will be funded through the sale of general obligation bonds or the receipt of loan funds from the State of Wisconsin Land Trust, resulting in an estimated total project cost of $3,000,100 in order to finance the construction of the improved roadway system to serve the transload site. BE IT FURTHER RESOLVED by the Common Council of the City of Oshkosh that the City Manager and his designated officials are authorized and directed to execute and deliver any and all agreements and documents relating to said grant and required for purposes of the same, and are further authorized and directed if said grant is awarded to accept such funds pursuant to the terms of the grant application. k VI .Oshkosh TO: Honorable Mayor and Members of the Common Council FROM: Allen Davis, Community Development Director DATE: January 3, 2019 RE: Authorize the City of Oshkosh to Formally Apply for an Economic Development Administration (EDA) Grant and to Execute the Necessary Agreements BACKGROUND The City of Oshkosh Southwest Industrial Park (SWIP) contains the recently completed Transload site serving rail shippers in Oshkosh and northeast Wisconsin. The site is served by a gravel road that is a long dead-end road and inadequate for truck and semi-trailer traffic. At one point, the City expected to connect the road across the railroad tracks to the south. This alternative has proven to be infeasible due to the numerous rail lines and spurs serving existing and future businesses in the SWIP. As an alternative, staff has designed a looped road back to Claireville Road. In the meantime, staff has also been working with Greater Oshkosh EDC, Watco and multiple private businesses interested in purchasing and developing about 50 acres of the SWIP. The lack of a complete roadway system serving the Transload site in the South West Industrial park makes the projects difficult, and city staff cannot maintain a gravel road for the projected truck traffic. City staff has approached the Economic Development Administration (EDA) about a possible Public Works grant for street, public utilities and stormwater management for the completed roadway system, The proposed grant is for $1,500,000. EDA reviewed the preliminary proposal, and has now invited the City to make a formal application. In order to make the grant application, the City Council must approve the accompanying resolution by January 16, 2019. ANALYSIS The City and our economic development partners have been exploring alternatives for funding the proposed improvements at the SWIP including other state and federal funds. The City has also developed Tax Increment Finance District #23 to help finance the costs of the public improvements. The EDA grant application would help complete the construction the public improvements in the 80+ acres and significantly reduce the local costs of the infrastructure. City Hall,215 Church Avenue P.O. Box 1130 Oshkosh,WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us The proposed EDA grant of$1,500,000 would be matched by City funds of$1,500,000 for projects that the City would have funded entirely on its own in the future. This significantly reduces the City's costs which helps with the performance of TIF #23 or could make the funds available for other project costs. Lastly, the roadway projects would ensure that the City can sell the SWIP acreage for rail users. The timing of the EDA grant would be: EDA Grant review and award..___._Winter, 2019 Design.................................................Winter/Spring, 2019 Bidding................................................Spring, 2019 Construction......................................Summer/Fall, 2019 The construction schedule and project results align well with the City's plans to market the Transload site and the completed SWIP. FISCAL IMPACT The City has planned to borrow the funds for TIF #23 SWIP for construction of the roadway and public infrastructure for paving the dead-end road, The $1,500,000 EDA grant would allow the City to complete the looped roadway and improve Clairville Road with FDA funds and avoid spending City funds. This EDA grant would significantly reduce the City's costs for the roadway infrastructure. The resulting land sales in the SWIP of about 50 acres at$35,000/acre would reduce the City's Industrial Park Land Fund deficit by about$1,600,000. The additional development within TIF #23 would help to begin to pay-off the debt already incurred to fill and grade the land, extend sewer, water and gravel roadway, and install the stormwater management system. The remaining local matching costs are all eligible costs for reimbursement in the TIF #23 Plan. RECOMMENDATION The City Council approves the submittal of the EDA grant application and accompanying resolution. Submitted, Approved: 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 littp://www,ci.oshkosh.wi.us