HomeMy WebLinkAbouttid-13-marion-and-pearl-avenue-redevelopment-amendment-2AMENDMENT NO. 2
TAX INCREMENT DISTRICT # 13
MARION ROAD/PEARL AVENUE REDEVELOPMENT
PROJECT PLAN
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Adopted by:
Plan Commission April 15, 2003
Common Council April 22, 2003
Joint Review Board May 27, 2003
Department of Community Development
April 2003
Table of Contents
PlanSummary............................................................................................................................................1
Introduction................................................................................................................................................2
Purpose........................................................................................................................................................2
Boundaries/Legal Description..................................................................................................................3
Nameof District.........................................................................................................................................3
CreationDate.............................................................................................................................................3
ProjectCosts and Improvements.............................................................................................................3
Methodof Financing..................................................................................................................................4
Master Plan, Zoning, Building and Other Code Considerations..........................................................4
EconomicFeasibility/Expectation for Develop�nent...............................................................................4
Promotionof Orderly Development.........................................................................................................4
ProposedUses.............................................................................................................................................5
Non- Project Costs......................................................................................................................................5
Relocation...................................................................................................................................................5
Findings.......................................................................................................................................................6
Appendix A — Project Maps
Boundaries..............................................................................................................7
ProposedImprovements........................................................................................8
ExistingZoning......................................................................................................9
ProposedZoning..................................................................................................10
ExistingLand Use................................................................................................11
ProposedLand Use..............................................................................................12
AppendixB — Notice of Public Hearing.................................................................................................13
Appendix C — Plan Commission/Public Hearing Minutes of April 15, 2003 ......................................14
Appendix D — Common Council Creation Resolution of April 22, 2003 ...........................................17
Appendix E — Joint Review Board Approval Minutes May 27, 2003 .................................................19
TAX INCREMENT DISTRICT #I3
Amendment No. 2
PROJECT PLAN
CITY OF OSHKOSH
ADOPTED BY THE PLAN COMMISSION
April 15, 2003
ADOPTED BY THE COMMON COUNCIL
April 22, 2003
ADOPTED BY THE JOINT REVIEW BOARD
May 27, 2003
PREPARED BY:
DEPARTMENT OF COMMUNITY DEVELOPMENT
April 2003
Plan Summary
City of Oshkosh
Tax Increment District # 13 Project Plan
District Name: City of Oshkosh Tax Increment District # 13 Marion Road/Pearl
Avenue Redevelopment
Location: Central City of Oshkosh; North of the Fox River, south of Pearl
Avenue, west of Jackson Street, and east of Wisconsin Street.
Size: Approximately 35 acres
Purpose: Redevelopment of a blighted industrial area. The amendment will
allow the provision of grants to the Oshkosh Redevelopment
Authority to carry out project activities.
Proposed Costs: Approximately $4.3 million for costs related to infrastructure
improvements including: sanitary sewer, water, utility relocation,
streets and sidepaths, storm sewer and drainage. Costs also include
financing and administrative/organizational costs.
Project Financing: Project costs will be financed using a combination of General
Obligation notes or loans from the State Land Trust Fund Program.
Economic Feasibility: Economic feasibility is based on redevelopment of a number of
blighted and underutilized properties within the district with a
change of use from industrially oriented to commercial and
residential uses.
Introduction
Wisconsin's Tax Increment Finance (TIF) law allows municipalities to amend a Tax
Increment District (TID) in three ways:
1) Addition of projects not included in the original project plan.
2) Allocation of positive tax increments from one TID to another TID.
3) Addition of territory to the TID.
The process for amending a TID is very similar to that of creating a TID with the notable
exception that there is not a waiting period required between when the public hearing is
held and when the city council or village board may adopt its approval resolution. In order
to amend a TID, a municipality must hold a public hearing and obtain approvals from their
local legislative bodies as well as a Joint Review Board. With this amendment, the City is
proposing to add a project to the TID # 13 Project Plan.
The incorporation of additional territory to a TID can only be done once during the
district's first seven years. Expenditures can only be made in the new territory for three
years and the implementation period for the original portion does not change. TID # 13
was previously amended in June 2000 to add additional territory and projects to the original
project plan.
The intent of the TID is to defray costs incurred within the district by using tax revenues or
value increments generated from new development occurring in the district. The value
increment is the difference between the certified base value of the TID at the time of
creation and the increased value of the property in subsequent years until the TID is
dissolved. It is the value increment generated from new development that is used to retire
the debt incurred by the city in implementation of project activities. TIDs provide benefits
to all taxing entities by promoting development of new taxable value that may not
otherwise occur. .
Purpose
The purpose of this amendment is to add a project not originally included in the approved
Project Plan that involves the provision of a grant by the City of Oshkosh to the Oshkosh
Redevelopment Authority (RDA) to carry out plan activities and continue redevelopment
of the district. The RDA and the City would enter into an agreement wherein funds granted
to the RDA could only be used for identified project activities. The activities proposed are
related to provision of and reconstruction of various infrastructure items such as sewer,
water, sidewalks, streets, undergrounding of utilities, installation of decorative lighting,
streetscaping, etc. Preparing acquired sites for redevelopment would also be an activity
which could include, but not be limited to, environmental remediation, removal of old
foundations, grading, filling, etc.
2
Boundaries/Legal Description
The boundaries of the district will not be changed as a result of this amendment. Total area
within the TID is estimated at 34.88 acres. The boundaries of the district are illustrated on
page 7.
Name of District
The district will continue to be identified as City of Oshkosh Tax Increment District # 13
(TID # 13) — Marion Road/Pearl Avenue Redevelopment Project.
Creation Date
The date of creation for the district remains as September 22, 1998, which is the date the
Common Council approved the creation resolution for TID # 13.
Project Costs and Improvements
The original and amended Project Plans identified various costs associated with
redeveloping the district. These costs included street construction, sanitary sewers, water
mains, storm sewers, land acquisition, environmental remediation, etc. These approved
projects are still all eligible project costs. With this amendment, the City will grant to the
RDA funds to carry out these projects. As conditions have changed within the district,
relative to provision of infrastructure to various areas within the district, cost estimates
based on the most recent data available have been developed. Table 1 provides a list of
estimated project costs and the year to be implemented. The table indicates the RDA could
be granted an estimated $2.75 million to implement project costs. Financing, while a
project cost, would not be assumed by the RDA, but these would be paid through tax
increment.
Table 1
Detailed Cost Estimate and Timing of Project Costs
Description
Gross Cost
Estimate
Year
Public Utility Construction — Water, Sanitary, Storm
$261,018
2003-05
Street and Pedestrian Path Construction
$673,596
2003-05
Environmental Remediation
$449,650
2003-05
Undergrounding of Utilities
$770,000
2003-05
Stormwater Management
$250,000
2003-05
Streetsca ing
$100,000
2003-05
Organizational, Planning, Legal, Engineering, and
Real Estate Services
$150,000
2003-05
Project Costs
$2,654,264
Financing Cost
$1,605,436
Total Project Costs
$4,259,700
2003-21
Organizational costs include estimates for administrative, planning, professional
organizational and legal costs. Components of these costs include, in general, cost of
salaries and employee benefits for City employees engaged in the planning, engineering,
implementing and administering activities in connection with the Tax Increment District,
the cost of supplies and materials contract and outside consultant services, and those costs
of City departments such as the City Attorney, Public Works, Finance, Community
Development, Parks, and Transportation. It is anticipated that the positive tax increments
remaining after annual debt service has been addressed will be used to repay the City for
incurring these costs.
Method of Financing
The method of financing project costs will be through the issuance of general obligation
notes, loans from the State Land Trust, or any other method of financing approved by the
Oshkosh Common Council. Total project expenditures will be recovered through tax
increment.
Master Plan, Zoning, Building, and Other Code Considerations
The project elements proposed in the Project Plan conform to the objectives and conceptual
recommendations contained in the City's 1993 Comprehensive Plan, as approved by the
Plan Commission and Common Council. Additionally, project elements confonn to the
goals and objectives identified in Redevelopment Project Plans as amended for this area.
The existing and proposed zoning are shown on the maps on pages 9 and 10 in Appendix
A. It will be necessary to change the zoning from M-2 Central Industrial to C-3PD Central
Commercial with a Planned Development Overlay to implement redevelopment plans for
this area where residential uses may be proposed.
Economic Feasibility/Expectations for Development
The original determination of economic feasibility of this district remains on the
predication that redevelopment will continue to occur as blighted properties are eliminated
and sites are made ready for redevelopment. Through January 1, 2002, the District has
realized a tax increment of approximately $2.2 million and has seen the development of
two commercial strip centers, a new restaurant, and five new apartment buildings with 44
living units with an additional 50 + unit $3 million apartment building under construction.
The 2002 increment does not include the value of Radford Square and Tumbleweed
Restaurant, the value of the land associated with the three eight unit structures in Radford
Village, and the new Concord Development which is expected to exceed $3 million. Once
fully realized, these properties should add approximately $6 million in new increment to
the district.
Promotion of Orderly Development
The elimination of blighted and underutilized properties within a planned development
district promotes orderly development by ensuring that land is developed to its highest and
4
best use in a manner consistent with appropriate local plans. All activities within TID #13
must be reviewed by the City's Plan Commission, Redevelopment Authority, and the
Common Council to ensure compliance with the goals and objectives of various plans as
they relate to this district, which will promote orderly development of the area.
Proposed Uses
The proposed uses in the district remain the same as approved in the Project Plan as
previously amended. This will be a mixed -use area with a combination of commercial,
retail, and residential uses for which the zoning of the district will be changed to C-3PD
Central Commercial District with a Planned Development Overlay to accommodate this.
Non -Project Costs
It is anticipated there will be no non -project costs related to implementing this Project Plan.
Relocation
No displacement and resulting relocation of persons or businesses is needed or will need to
be undertaken in this project as all businesses or individuals have been relocated. If
additional relocation of individuals or businesses were required, it would be carried out in
accordance with applicable relocation requirements set forth by the State of Wisconsin
and/or federal regulations.
5
FindinEs and Report to the Joint Review Board
The original findings the Council based its decision on in order to create this district remain
as stated. These being:
• More than 50 percent of the real property within the TID is blighted within the meaning
of Section 66.1105(2), Wisconsin Statutes;
• Not less than 50% of the structures within the TID are in need of rehabilitation within
the meaning of Section 66.1331, Wisconsin Statutes;
• Based on present and historical land uses in the general area, environmental
contamination exists, or is perceived to exist, to an extent the Project Plan will not be
able to proceed without tax increment financing and the donation of positive tax
increments between Tax Increment Districts;
• The redevelopment of the area calling for the construction of new multiple family
housing and commercial developments together with the elimination of brownfield
properties will have a significant positive impact on the value of all real property in the
District and is in keeping with the goals and objectives of the Comprehensive Plan;
• Were it not for the financing mechanisms provided through Tax Increment Law,
planned redevelopment of this district would in all likelihood not occur.
A new finding relevant to this Amendment to the TID # 13 Project Plan would be:
The primary objective for Amendment No. 2 to the TID # 13 Project Plan is to continue
with blight elimination in the district and the preparation of land within the district for
redevelopment;
The amended plan is feasible and is in conformity with the City's Comprehensive Plan;
The provision of grants to the Oshkosh RDA from the City of Oshkosh will ensure
continued redevelopment of the district.
Appendix A
Project Maps
1;7
Appendix B
NOTICE OF PUBLIC HEARING
BEFORE THE CITY OF OSHKOSH PLAN COMMISSION
TUESDAY, APRIL 15, 2003
4:00 PM, Room 404
City Hall, Oshkosh, WI
The Plan Commission will hear public comments on Amendment No. 2 to Tax Increment District # 13
Marion Road/Pearl Avenue Redevelopment Project and Amendment No. 1 to Tax Increment District # 17
City Center Redevelopment Project. The purpose of the amendments is to add projects not included in their
original Project Plans. Interested persons are encouraged to attend.
Amendment No. 2 to Tax Increment District # 13 Marion Road/Pearl Avenue Redevelopment
The purpose of this amendment is to transfer approximately $2.6 million in project costs to the Oshkosh
Redevelopment Authority to complete implementation of the plan for redevelopment of this district.
Amendment No. 1 to Tax Increment District # 17 City Center Redevelopment
The purpose of this amendment is to add a project to the previously adopted project plan. The project
involves realignment of the Jackson/Marion/Division Street intersection. The anticipated cost of realignment
which includes activities such as acquisition, environmental remediation, street construction, utility work,
etc. is $1.3 million.
The draft amended project plans will be available for review on or about April 10, 2003. For information,
call the City of Oshkosh Planning Services Division at 920-236-5055 between 8 am — 4:30 pm, Monday thru
Friday.
PUBLISHED: April 4 & 8, 2003
13
Appendix C
Plan Commission Minutes April 15 2003
V: PUBLIC HEARING ON AMENDMENT NO.2 TO TAX INCREMENT DISTRICT
#13 MARION ROAD/PEARL AVENUE REDEVELOPMENT PROJECT
City Administration requests the Plan Commission to review and approve Amendment No. 2 to Tax
Increment District #13 Marion Road/Pearl Avenue Redevelopment. The TID was originally
created in 1998 for the purpose of redeveloping the 30+ acre Marion Road area that contained a
number of blighted and underutilized properties. The TID was subsequently amended in 2000 to
add territory to the district that expanded it to Jackson Street and the Fox River.
Vice Chairman Bettes opened the Public Hearing portion of the meeting for Amendment No. 2 to
Tax Increment District #13 Marion Road/Pearl Avenue Redevelopment Project.
Mr. Burich handed out an amended map of the proposed improvements in the area.
Mr. Burich proceeded to show slides of improvements already made to the Marion Road/Pearl
Avenue Redevelopment area. Mr. Kinney stated Amendment No. 2 to Tax Increment District #13
was basically to add street construction projects for Phase 2 of the district. He used the map as
displayed to show the broader area which showed Phase 1 and the improvements proposed for
Phase 2 of the redevelopment area. He stated the staff would hopefully be issuing a request for
proposals to developers in June for parcels G,H, I & J. Mr. Kinney stated the costs included in the
proposed area basically related to construction of the streets.
Mr. Kinney stated this amendment will also create a new project wherein funds will be provided to
the recently created City of Oshkosh Redevelopment Authority for the completion of the street
related projects such as environmental remediation, public utility construction, streetscaping,
undergrounding of utilities, and stormwater management.
Ken Bender, 806 Oak Street, pointed out the property just outside the center of the TID District.
Mr. Burich stated that was the Lamico property, and they couldn't put a street through their
property.
Mr. Bender questioned the impact the tax dollars would have on the area. Mr. Kinney stated the
taxes from that area would be used to pay off the improvements in the area and in all likelihood
would be less than identified in the Project Plan.
Mr. Bender questioned if the City could afford to use the taxes in this way given the current budget
concerns. Mr. Kinney stated the City must make improvements to the infrastructure to lure new
development. He explained approximately $7 million had been added to the district with Phase 1
developments and an additional $20-$30 million in development value is estimated for the Phase 2
area. Mr. Kinney stated the actual costs of investment would probably be less than the estimated
$2.7 million with additional costs for decorative lighting, undergrounding of utilities, etc.
14
Appendix C
Plan Commission Minutes
April 15 2003
Vice Chairman Bettes Closed the Public Hearing portion of the meeting for Amendment No. 2 to
Tax Increment District #13 Marion Road/Pearl Avenue Redevelopment Project.
Mr. Gehling questioned if the realignment of Marion Road with Jackson Street and Division Street
had been reviewed by the Traffic Advisory Committee. Mr. Kinney stated that would be covered in
the next item pertaining to TID #17.
Mr. Gehling questioned if the City had a plan for the placement of uses within the development, or
if development would occur on a first come first serve basis. He stated he was concerned with the
balance of uses in the area.
Mr. Kinney stated the staff is preparing development guidelines. He explained research the
University of Wisconsin Oshkosh has done for the development of this area, and how the City's
consultant's have taken their recommendations to develop a mix of commercial and residential uses
for the area along with some possible educational links from Mercury Marine. He stated other
studies will be taken into account to include a river promenade, and pedestrian and bike path. He
explained the zoning throughout the area will also be looked at to have the right zoning
classification for the uses in the area. He stated the Plan Commission will be actively involved in
continuing redevelopment efforts in this area.
Mr. Borsuk noted a lot of surface parking throughout the area and stated he would like to see it be a
more useable area. Mr. Kinney stated that was one of the points that would be addressed in the
development guidelines.
Mr. Gehling questioned if there would be underground parking in the area. Mr. Kinney stated that
was another area to be explored.
Mr. Reschenberg was excused at this time.
Mr.
Borsuk questioned if the costs for Marion
Road
were included in
the $2.7 million estimated for
the
area. Mr. Kinney stated the cost of Marion
Road
had already been
contracted for.
Mr. Borsuk also questioned if the previous property owners would be required to help with the
remediation costs. Mr. Kinney stated there weren't any remediation costs that would apply to the
former property owners.
Mr. Borsuk questioned how the funds would flow to the Redevelopment Authority (RDA). Mr.
Kinney explained the Common Council will allocate funds for the RDA to manage. He stated the
Department of Community Development staff will support the RDA which will review what can be
done on a yearly basis.
Mr. Pressley questioned if the Redevelopment Authority would initiate projects. Mr. Kinney stated
the RDA can initiate projects.
15
Appendix C
Plan Commission Minutes
April 15 2003
Mr. Bettes stated the City has had a good vision and it is exciting to see it all fall in place.
Motion by Gehling for approval and recommendation of Amendment No. 2 to Tax
Increment District #13 to the Common Council for approval. Seconded by Propp.
Motion carried 6-0.
16
Appendix D
Common Council Creation Resolution
APRIL 22, 2003 03-111 RESOLUTION
(CARRIED 5-0 LOST LAID OVER WITHDRAWN
PURPOSE: APPROVE PROJECT PLAN AMENDMENT NO. 2 TAX
INCREMENT DISTRICT NO. 13 MARION ROAD/PEARL AVENUE
REDEVELOPMENT
INITIATED BY: CITY ADMINISTRATION
PLAN COMMISSION RECOMMENDATION: Approved
WHEREAS, additional projects are proposed to be undertaken to improve Tax
Increment District No. 13; and
WHEREAS, these projects were not originally included in the adopted Project Plan
for Tax Increment District No. 13; and
WHEREAS, pursuant to §66.1105, Wis. Stats., the City of Oshkosh proposes
Amendment No. 2 to the Project Plan of Tax Increment District No. 13 Marion Road/Pearl
Avenue Redevelopment; and
WHEREAS, the City of Oshkosh Plan Commission has prepared and adopted a
Project Plan for Tax Increment District No. 13 Marion Road/Pearl Avenue Redevelopment
which:
1) Includes a statement listing the kind, number and location of all proposed public
works or improvements within such district.
2) Contains an economic feasibility study.
3) Contains a detailed list of estimated project costs.
4) Contains a description of the methods of financing all estimated project costs and
the time when such costs or monetary obligations related thereto are to be incurred.
5) Includes a map showing existing uses and conditions of real property in such district.
6) Includes a map showing proposed improvements and uses therein.
7) Contains a list of estimated non -project costs.
8) Contains a statement of a proposed method for the relocation of any person to be
displaced.
9) Indicates how the creation of TID No. 13 promotes the orderly development of the
City.
17
Appendix D
Common Council Creation Resolution
APRIL 22, 2003 03-111 RESOLUTION
CONT'D
and
WHEREAS, the Plan Commission has held a public hearing on Amendment No. 2
to TID No. 13 and has notified the Chief Executive Officers of all local government entities
having the power to levy taxes on property within the district, including the School Board
of any school district that includes property within the district pursuant to §66.1105, Wis.
Stats.; and
WHEREAS, the City of Oshkosh Plan Commission has found that said Project Plan
is in conformity with the Master Plan of the City of Oshkosh.
NOW, THEREFORE, BE IT RESOLVED that the Common Council of the City of
Oshkosh hereby approves of said Amendment No. 2 to the Project Plan for Tax Increment
District No. 13 Marion Road/Pearl Avenue Redevelopment, pursuant to the provisions of
§66.1105, Wis. Stats.
BE IT FURTHER RESOLVED that the improvements contemplated in amended TID
No. 13 are likely to significantly enhance the value of substantially all real property within
amended TID No. 13.
BE IT FURTHER RESOLVED that the value of equalized taxable property in
amended TID No. 13, together with all other established Tax Increment Districts, does not
exceed 7% of the total equalized value of taxable property within the City of Oshkosh.
BE IT FURTHER RESOLVED that more than 50% of the real property within
amended TID No. 13 is blighted or in need of rehabilitation or conservation within the
meaning of § 66.1337, Wis. Stats..
BE IT FURTHER RESOLVED that the project costs are consistent with the
purposes for which the district is being created with the primary objective being
rehabilitation of this area and blight elimination.
BE IT FURTHER RESOLVED that if the property owner was required to fully pay
for the improvements associated with the proposed rehabilitation and redevelopment of the
area, the redevelopment would in all likelihood not occur.
BE IT FURTHER RESOLVED by the Common Council of the City of Oshkosh that
this resolution be forwarded to the Joint Review Board for their consideration of amended
Project Plan of TID No. 13 — Marion Road/Pearl Avenue Redevelopment.
18
Appendix E
JOINT REVIEW BOARD
Amendment No. 2 TID # 13 Marion Road/Pearl Avenue Redevelopment
TID # 19 Northwest Industrial Park Expansion
MEETING MINUTES
May 27, 2003
8:00 AM, Department of Community Development Conference Room
Present: Teresa Thiel, Board of Education; Lori Becker, Fox Valley Technical College; Steve Hintz,
Mayor, City of Oshkosh; Mike Hert, Winnebago County.
Staff: Jackson Kinney, Director of Community Development, Darryn Burich, Principal Planner.
The meeting was called to order at 8:00 am.
Mr. Burich and Mr. Kinney provided a brief overview of the proposed amendment No. 2 to TID # 13. Mr.
Kinney explained the purpose of the amendment was to amend the project plan to allow for a project expenditure
to occur that was not originally identified. Motion by Mike Hert and second by Lori Becker to approve
Amendment No. 2 to TID # 13. Motion carried unanimously.
Mr. Burich and Mr. Kinney provided a brief overview of proposed TID # 19, the Northwest Industrial Park
Expansion No. 1. Mr. Burich explained that the City was beginning to exhaust its supply of industrial sites and
the TID would help to add developable sites. Mr. Kinney discussed a consultant's report regarding the potential
for additional industrial development opportunities in the area.
Motion by Mike Heil and second by Lori Becker to approve the boundaries and Project Plan for TID # 19.
Motion carried unanimously.
Motion by Steve Hintz and second by Teresa Thiel to adjourn the meeting. Motion carried.
R ectfully Submitted,
Darryn Burich
Principal Planner
Recording Secretary
19