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Home My WebLink AboutItem VI - Staff Report PLAN COMMISSION STAFF REPORT JULY 2,2019 ITEM VI: PUBLIC HEARING: PROPOSED CREATION OF TAX INCREMENT FINANCING DISTRICT NO.37 AVIATION PLAZA REDEVELOPMENT PROJECT; DESIGNATION OF BOUNDARIES AND APPROVAL OF PROJECT PLAN Prior to taking action on proposed Tax Increment District(TID) No. 37 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. 37. 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 Applicants/Owners: Mineshaft Oshkosh LLC Extreme Customs LLC (Currently owned by Phoenix Realty LLC) Rogan s Shoes Inc. GENERAL DESCRIPTION/BACKGROUND Please see attached TID No. 37 Project Plan far more detailed information. Tax Incremental District No. 37 (the "TID" or "District") is a proposed 27 acre in need of rehabilitation or conservation district located in the vicinity of the W. South Park Ave. and S. Koeller Street and abutting Interstate 41. The proposed district is comprised of five parcels owned by the applicants and contain approximately 117,000 sq. ft. of retail space with Rogari s Shoes as the only current occupant following the closure of the J.C. Penny Store in 2015. The former Walmart store was demolished in 2007. The City anticipates making total expenditures of approximately$4.84 million to undertake project identified in the Project Plan. Project costs include an estimated $1.89 million in "pay as you go" development incentives (principal and interest), $2.75 million for additional public infrastructure improvements and an estimated$200,000 in administrative costs. 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$12.4 million will result from redevelopment activity within the District. These key assumptions are identified in Section 10 of the Plan starting on page 20. The "expected" improvements will occur on the five parcels located in the district and will entail the following: Page 1 Use The developers are proposing a mixture of commercial and office uses. The developments are further described below as Extreme Customs, Mineshaft and Rogari s Shoes. Table 1 on page 21 shows the development assumptions when values will be added to each of the sites. The developers are anticipating being able to fully develop the district by sometime in 2020. Extreme Customs The petitioner is proposing to redevelop the existing 62,435 sq. ft. commercial structure to accommodate a new location for Extreme Customs. Extreme Customs is presently located at 3420 Jackson Street and has outgrown that location. Extreme Customs is an automotive customization company specializing in aftermarket tires and wheels. They also offer accessories for all types of trucks and cars. The business is a mixture of online sales and walk-in business. The owner believes relocating to this area will aid in increasing his walk-in business via increased visibility, while providing the additional space needed for the growing online side of the business. The applicant plans to renovate the existing building to include a retail showroom, office space, vehicle service space and warehouse space. In conjunction with the interior renovation the applicant will also be upgrading the building exterior to include a new front facade, customer entrance and updating the overall facade. The applicant will also be making improvements to their water, sewer and storm water infrastructure to bring the site into compliance with current code requirements. Mineshaft The applicant is proposing to construct a 34,423 sq. ft.building,which would include a restaurant,tavern and entertainment area. The applicant identifies an additional 30,000 sq. ft. for potential expansion. Standard hours of operation would be 6 am to 2 am daily with certain aspects of the business having shorter hours of operation. The applicant anticipates approximately 50 full-time and 50 part-time employees. The site also includes a 19,449 sq. ft. vacant retail space. The applicant is not proposing any changes to that space. The applicant will also be making improvements to their parking lot, landscaping,water, sewer and storm water infrastructure to bring the site into compliance with current code requirements. Rogan's Shoes The applicant will be snaking improvements to their water, sewer and storm water infrastructure to bring the site into compliance with current code requirements. District Life Based on the Municipal Revenue Obligation (MRO) for the development incentive identified on Table 3 on Page 24 of the Plan, the district is anticipated to pay off costs by 2036 at which time the city could potentially terminate,which would be 16 years. If necessary,the district would be permitted to remain open for up to the statutorily allowed 27 years. At that point the full value of the properties would be added back to the overall tax rolls which current estimate is$15.5 million in improvement value alone. This payoff date could change based on potential Item VT Creation of TID 437 Aviation Plaza Redevelopment Project Page 2 changes in assessed value of the site. Additionally, should additional project expenditures be undertaken this may adjust the anticipated termination date of the district. Type of District The District is being created as an area "in need of rehabilitation or conservation" within the meaning of Wis. Stat. 66.1337(2m)(a)based on a finding that over 50% of the area is need of rehabilitation. The parcels identified as "in need of rehabilitation or conservation" are shown on the Existing Conditions map on page 11 of the plan. The subject properties contained aged infrastructure which do not conform to current code requirements and are in need of rehabilitation to be bought into compliance before any redevelopment can take place. Consistency with Plans The proposed Plan is in general conformance with the City of Oshkosh's Comprehensive Plan identifying the area as appropriate for Interstate Commercial development. Interstate Commercial land use's intent is to allow "intense commercial and retail uses generally located along primary highway corridors and intersections". The development is also consistent with the City Center Corridor Plan for South Park Avenue, which identifies the area as Site B1 and recommends the site as a location the city should focus redevelopment efforts to improve the character of the gateway and act as a catalyst for further development. RECOMMENDATIONS/CONDITIONS Staff recommends approval of the Project Plan and Boundaries for TID #37 as proposed. Item VT Creation of TID 437 Aviation Plaza Redevelopment Project Page 3 W E Tax Increment District #37 CA Aviation Plaza Redevelopment Of S District Boundary Oshkosh MEANS- HIS A IT 0- Mm MEMO= RE Q W 20TH AV dosR �u R ems+ R 9 P = �v R o n '.. rr R Ct End Ills- TID #3 ;r - J� ffil- a ZEN Legend 44 TID #37 Boundary 0 75 150 300 450 Feet Docum nt Paih:H:\ja n\ rc Map Projects\T Pro s\TI 7_A tlon_(aza_Redevelopment\Map 1- ID 7 Boundaries. d Dafe:Tuesday,June t 2019 TIF NO.37 AVIATION ALDI INC CORP AVIATION RESTAURANT PC: 07-02-19 PO BOX 460049 DEPT 501 2100 S KOELLER ST HOUSTON TX 77056 OSHKOSH WI 54902 GARVENS PROPERTY HOLDINGS LLC JAMES F/MARCIE E MCDEVITT REV TRUST MASTERS OSHKOSH LLC 5363 LEONARD POINT RD 3335 13TH ST 22 N MAIN ST OMRO WI 54963 KENOSHA WI 53144 HARTFORD WI 53027 MP DEVELOPMENT 6 LLC PHOENIX REALTY LLC REALTY INCOME PROPERTIES 6 LLC 601 OREGON ST B 401 E KILBOURN AVE STE 201 11995 EL CAMINO REAL STE 101 OSHKOSH WI 54902 MILWAUKEE WI 53202 SAN DIEGO CA 92130 ROGAN STORES OSHKOSH LLC 1935 KOELLER LLC EXTREME CUSTOMS 1750 OHIO ST 691 S GREEN BAY RD 208 3420 JACKSON ST. SUITE A RACINE WI 53405 NEENAH WI 54956 OSHKOSH,WI 54901 Page 5 ®a El �o -2DT-H-AV SUBJECT SITE C �❑� � � o W 0 0 P1�w{JND-AV!__. 44 rJr 1`J 1 r\\]]AlfIJN !rllr\ N 1in=0.07mi 1 in=350ft City of Oshkosh maps and data are intended to be used for general identification purposes only,and C the City of Oshkosh assumes no liability for the accuracy of the information. Those using the Printing Date:6/17/2019 Oshkosh information are responsible for verifying accuracy. For full disclaimer please go to www.ci.oshkash.wi.us/GlSdisclaimer Prepared by:City of Oshkosh,WI CJ J:\GIS\Planning\Plan Commission Site Plan Map Template\Plan Commission Site Plan Map Template.mxd Pa�Usseer:migak ■ p . � 1 SUBJECTr�� i►�� - ►► . . 41 ��. BADGER ■ ■ 41 �� ■ ■■■■■■ ■ L � � I 1 lin=800ft City of Oshkosh maps and data are intended to be used for general identification purposes only,and Cify the City of • no liability forof • •n. Those using the Printing D. • 1 • 0 4 b R o,l r a 1 ,T m e 1 T A x t s, �3 �T a' o r s .r. r v e.: a - _ A Rq a 1 F 6 � Vi I i r N y. A a q Y ? f . o z y 1 � i Q � Q " I a = s 1 _ � a t Ar "" 1 w. w � I w I 1 A� k kl 1 Ir - 1 r �I /, J r�v1I r�rJ J 1�I r\r� N 1 in=0.06 mi 1 in=300 ft City of Oshkosh maps and data are intended to be used for general identification purposes only,and C the City of Oshkosh assumes no liability for the accuracy of the information. Those using the Printing Date:6/17/2019 Oshkosh information are responsible for verifying accuracy. For full disclaimer please go to www.ci.oshkash.wi.us/GlSdisclaimer Prepared by:City of Oshkosh,WI CJ J:\GIS\Planning\Plan Commission Site Plan Map Template\Plan Commission Site Plan Map Template.mxd P a�User:meak