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Home My WebLink AboutItem V - Staff Report PLAN COMMISSION STAFF REPORT MAY 7,2019 ITEM V: PUBLIC HEARING: PROPOSED CREATION OF TAX INCREMENT FINANCING DISTRICT NO.36 MERGE REDEVELOPMENT PROJECT; DESIGNATION OF BOUNDARIES AND APPROVAL OF PROJECT PLAN Prior to taking action on proposed Tax Increment District(TID) No. 36 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. 36. 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: Merge Urban Development Group Owner: Redevelopment Authority City of Oshkosh GENERAL DESCRIPTION/BACKGROUND Please see attached TID No. 36 Project Plan for more detailed information. Tax Incremental District No.36 (the "TID" or "District") is a proposed 5.82 acre blighted area district located in the vicinity of the Jackson Street/Marion Road/Pearl Avenue intersections. The proposed district is comprised of three parcels owned by the City's Redevelopment Authority. Proposed TID No. 36 would overlap TIDs No. 13 (Marion Road) and TID No. 21 (Fox River Corridor) with any increased valuation occurring after January 1,2019 being captured by the new district. The City anticipated making total expenditures of approximately$10 million to undertake project identified in the Project Plan. Project costs include an estimated$9.8 million in"pay as you go" development incentives (principal and interest) and an estimated$200,000 in administrative costs. The Project Plan also identifies potential costs related to environmental remediation and the Jackson Street Bridge reconstruction or rehabilitation. The Project Plan includes a statement listing the kind,number and location of proposed improvements which starts on page 14. 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 starting on page 18. ANALYSIS The City is projecting that new land and improvements value of approximately$26 million will result from redevelopment activity within the District. These key assumptions are identified in Section 10 of the Plan starting on page 19. The "expected" improvements will occur on the three parcels located in the district and will entail the following: Use Page 1 The developer is proposing a mixture of residential, commercial and office uses. The parcels are described as Parcels J,H and I as found in the Marion Road Pearl Avenue Redevelopment Plan. Site Site J is the primary focus of the development. It located at the southwest corner of Jackson Street and Marion Road. The parcel is approximately 2.62 acres and is proposed to consist of three buildings and associated surface parking. Building 1 would be an approximate 110,000 sq. ft. multi-use 5-story building. The building is proposed to include 111 upper floor residential uses with commercial and office space on the ground floor. The building is split in the in middle to include a pedestrian walkway. Building 2 would be approximately 85,000 sq.ft.multi-use 5-story building and consist of 9 walkup residential units on ground floor,29 upper floor residential units and commercial space on the ground floor. Building 3 would be approximately 7,600 sq. ft. 2- story rowhome building consisting of 8 residential units. The applicant is proposing 62 on-site parking spaces as part of the Site J development. Site H Site H is located at the southwest corner of Jackson Street and Pearl Avenue. The parcel is approximately 1.78 acres in size and presently consists of a parking lot and building. The site contained soil contamination and a parking lot cap was constructed in 2010 as part of the remediation plan. The applicant is proposed to make minor modifications to existing parking lot and develop a 2-story approximately 21,600 sq.ft. mixed use building. The building will include 14 upper floor residential units and approximately 10,800 sq. ft. of first floor commercial. The proposed parking lot modifications would yield approximately 128 available parking spaces. Site I Site I is located on the north side of Marion Road approximately 315 feet west of Jackson Street. The parcel is approximately 1.41 acres in size and is presently vacant. The applicant is proposing to construct nine two-story town home units and a surface parking lot. The units are conceptually depicted as three 3-unit buildings.The applicant is proposing 91 on-site parking spaces are part of the Site I development. Table 1 on page 20 shows the development assumptions when values will be added to each of the sites. The developer is anticipating being able to fully develop the district by sometime in 2022 starting with the$22 million Site J on the river. District Life Based on the Municipal Revenue Obligation(MRO) for the development incentive identified on Table 3 on Page 23 of the Plan,the district is anticipated to pay off costs by 2038 at which time the city could potentially terminate,which would be 19 years. At that point the full value of the properties would be added back to the overall tax rolls which current estimate is$26 million in improvement value alone. This payoff date could change based on potential changes in assessed value of the site. Additionally, should additional project expenditures be undertaken this may adjust the anticipated termination date of the district. Item V.•Creation of TID#36 Merge Redevelopment Plan Page 2 Type of District The District is being created as a blighted area district as defined in Wis. Stat. 66.1105(2)(ae). Specifically, the District consists of land upon which buildings or structures have been demolished and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of the community. In this particular case, all of the parcels involved contain either some levels of environmental contamination or poor structural soils due to the historic industrial uses of the area increasing development costs. Consistency with Plans The proposed Plan is in general conformance with the City of Oshkosh's Comprehensive Plan identifying the area as appropriate for Center City mixed use development. Center City land use's intent to allow"high intensity office,retail,housing,hospitality, conference and public land uses." The development is also consistent with the Marion Road/Pearl Avenue Redevelopment Guidelines 2003 identifying the area as appropriate for a mixed-use development pattern with strong urban streetwall fabric which the associated Planned Development is proposing. Creation of the District and implementation of the projects will promote orderly development of the City of Oshkosh by continuing redevelopment and re-use of the this former blighted industrial area for Center City mixed-use development. 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 #36 as proposed. Item V.-Creation of TID#36 Merge Redevelopment Plan Page 3 Tax Increment District #36 w E Merge p e Redevelopment Cat o,` S District Boundary Oshkosh SA �s0 1 fir` / 5 , are .\ f 17 i,•, \� •/ \,�.-.. O �..r-^ i fib 4`"_,/ 7 !; 4906 I t j i I V l� iLegend TID #36 Boundary 0 125 250 Feet Date;Thursday,March 21,2019 Page 4 TIF 36 MERGE ANNE B HILLENBRAND ANNEX 71 LLC 300 N MAIN ST STE 300 409 MASSACHUSETTS AVE 300 OSHKOSH WI 54901 INDIANAPOLIS IN 46204 ANTHEM LUXURY LIVING LLC AURORA MEDICAL GROUP INC CITY OF OSHKOSH 5160 EXPO DR PO BOX 341880 PO BOX 1130 MANITOWOC WI 54220 MILWAUKEE WI 53234 OSHKOSH WI 54903 EDWARD A TIEDJE MURKEN PROPERTIES LLC OSHKOSH CHAMBER OF 141 W 23RD AVE 1729 KNAPP ST COMMERCE INC OSHKOSH WI 54902 OSHKOSH WI 54902 120 JACKSON ST OSHKOSH WI 54901 ST PETERS CONG THE RIVERS PHASE II OSHKOSH LLC 90 RIVERWAY LLC 449 HIGH AVE 230 OHIO ST 200 90 RIVERWAY DR OSHKOSH WI 54901 OSHKOSH WI 54902 OSHKOSH WI 54901 REDEVELOPMENT AUTf IORn Y OF OSHKOSH PO BOX 1130 OSHKOSH WI 54903 Page 5 Nv � r f I rt .1 ` .. . f 1 N 1 in=0.07 mi 1in=350ft City of Oshkosh maps and data are intended to be used for general identification purposes only,and it}; the City of Oshkosh assumes no liability for the accuracy of the information. Those using the c>f information are responsible for verifying accuracy. For full disclaimer please go to Printing Date:5/3/2019 �( ]��trJJ� www.ci.oshkosh.wi.us/GlSdisclaimer Prepared by:City of Oshkosh,WI J1GISTIanningRan Commission Site Plan Map TemplateRan Commission Site Plan Map Template.mxd User:katieb Page 6 P_ _ s TR _._......._- 0F 1 _D �.... — _...._. TR-10PD_U10 I_P_D - — ...... ........... r� I-P.D — —= - ----- ......... — ::::.. -_ ._.............._.. ::::::... .......... -PD-UTO _JT,R_1.0_PD-- a........_-- UMU-PD---- _. _ ....._... ........_ TR-10PDUT�O Is ' — _..... .......... .... ®� �., 17. UMU UMU MR=36-UTO I-UTO 0!PD.... _:_:.... MULTIPLE CMU-PD —.. CMU-PD UMU t / f-...... JUMU=UTO -.......... - UMU-PD=UTO UMU-UTO t um -Ulu UMU CMU li UMU=PD-UTO, i UI-RFO UMU-PD I-PD CMU N CMU -PD-'RFO 1;; CMU ; Mu.PD-RFO RMU= D -PD-RF0 CMU-RFO C. MU I-PD RMU F,O a9 I-PD - CM ,-RFO MR=12 IrPD`=RFOCMU-R 13 RMU-P_D RMU-PD-RFO i RMU_P—D RMU-PD RMU-P.D i LL I UMU — ' ti t [ CMU I RMU=RFO UMU i i TR=10' CMU-PD HI RMU i iI 17777F : CMU RMU-RFO N ''.1� tin=0.11mi 1 in=600ft City of Oshkosh maps and data are intended to be used for general identification purposes only,and (--ity the City of Oshkosh assumes no liability for the accuracy of the information. Those using the car Printing Date:5l3/2019 information are responsible for verifying accuracy. For full disclaimer please go to Oshkosh I www.ci.oshkosh.wi.us/GlSdisclaimer Prepared by:City of Oshkosh,WI s ] J:IGISTlanningRan Commission Site Plan Map TemplateRan Commission Site Plan Map Templale.mxd User:katieb Page 7 f a N a. v } 2 p. 40 � f } y 0p " .; ME _ +a 3 N 1 in=0.06 mi City of Oshkosh maps and data are intended to be used for general identification purposes only,and City JOEL— the City of Oshkosh assumes no liability for the accuracy of the information. Those using the C?r Printing Date:5l3/2019 information are responsible for verifying accuracy. For full disclaimer please go to �� www.ci.oshkosh.wi.us/GlSdisclaimer Prepared by:City of Oshkosh,WI TUSTIanningRan Commission Site Plan Map TemplatelPlan Commission Site Plan Map Template.mxd User:katieb Page 8