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HomeMy WebLinkAbouttid-13-marion-and-pearl-avenue-redevelopment-amendment-3AMENDMENT NO. 3 TAX INCREMENT DISTRICT #13 MARION ROAD/PEARL AVENUE REDEVELOPMENT PROJECT PLAN iII:r,, T IN ISTRICT#13 b �OO II1 -.-: Schedule: Plan Commission April 19, 2005 Common Council April 26, 2005 Joint Review Board May 3, 2005 Department of Community Development April 2005 TAX INCREMENT DISTRICT #13 Amendment No. 3 PROJECT PLAN CITY OF OSHKOSH PLAN COMMISSION April 19, 2005 COMMON COUNCIL April 26 2005 JOINT REVIEW BOARD May 3, 2005 PREPARED BY: DEPARTMENT OF COMMUNITY DEVELOPMENT April 2005 Table of Contents PlanSummary............................................................................................................................................1 Introduction................................................................................................................................................2 Purpose................................... Boundaries/Legal Description..................................................................................................................2 Nameof District.........................................................................................................................................4 CreationDate.............................................................................................................................................4 ProjectCosts and Improvements.............................................................................................................4 Methodof Pinancing..................................................................................................................................5 Master Plan, Zoning, Building and Other Code Considerations......................................................5 EconomicIi'easibility/Expectation for Development...............................................................................5 Promotionof Orderly Development.........................................................................................................6 ProposedUses..........:..................................................................................................................................6 Non -Project Costs......................................................................................................................................6 Relocation...................................................................................................................................................6 Findings......................................................................................................................................................6 Attorney's Opinion....................................................................................................................................9 Appendix A — Project Maps # 1 Boundaries......................................................................................................10 # 2 Parcel Identification.......................................................................................11 # 3 Proposed Improvements..........................................................................:.....13 #4 Existing Zoning..............................................................................................14 # 5 Proposed Zoning............................................................................................15 # 6 Existing Land Use.........................................................................................16 #7 Existing Conditions........................................................................................17 # 8 Proposed Land Use........................................................................................18 AppendixB — Notice of Public Hearing.................................................................................................19 2 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 36.66 acres Parcels: Ten Estimated District Base Value: $880,000 Purpose: Redevelopment of a blighted industrial area. The purpose of the amendment is to include several properties located on the periphery of the TID in the district to support continuing redevelopment efforts. Proposed Costs: Potentially $1.5 million for costs related to acquisition and clearance and potential rehabilitation of one property within the district. Costs also include financing and administrative and 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. Project activities within the district are funded through tax increments generated within the district and from increment donations from TID # 7. 1 Introduction Wisconsin's Tax Increment Finance (TIE) 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 territory and projects to the Project Plan. TID's maybe amended up to four times during the life of the TID by adding or subtracting area from the district. Expenditures can be made in the TID up to 5 years before the end of the life of the TID with the maximum life of blighted area TID being 27 years. TID # 13 was previously amended in 2000 to add territory and projects to the original project plan and a project plan amendment in 2003 to allow continued implementation of the project plan by the Redevelopment Authority. 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 territory and projects not originally included in the approved Project Plan. Specifically the City is proposing to expand the TID to add several properties to the district for ongoing redevelopment activity. Expansion of the TID will allow for acquisition and clearance of the sites to prepare for future redevelopment. The sites in the Jackson Street expansion have been included for acquisition for redevelopment, rehabilitation, and or open space purposes. Boundaries/Legal Description The boundaries of the district change as a result of this amendment by incorporating several parcels along Campus Place and along Jackson Street. Total area within the TID is estimated at 36.66 acres. The boundaries of the district are illustrated on Map 1 in Appendix A. 2 LEGAL DESCRIPTION A part of Western Addition Blocks A, C, E, F, G, H, K, L, M and N, Libbey's Replat, Pearl Avenue, Jackson Street, Marion Road, Campus Place, vacated Radford Place, vacated Dawes Street and vacated Warren Road, all in the First Ward, City of Oshkosh, Winnebago County, Wisconsin described as follows: Commencing at the southeast comer of Wisconsin Street and High Avenue; thence southeast along the southwesterly line of High Avenue and along the northeasterly lines of Lots I through 6 of the Western Addition Block K to a point 3 feet southeasterly of the northeast corner of Lot 5 of said Block K, Western Addition as measured along the southwesterly line of High Avenue; thence southwesterly along a line parallel and 3 feet southeasterly of the southeasterly line of said Lot 5 to the northeasterly line of Lot 15 of said Block K, Western Addition; thence southeasterly along the northeasterly lines of Lots 11, 13, 14, and 15 of said Block K, Western Addition to the northwesterly line of Dawes Street; thence southwesterly along the northwesterly line of Dawes Street to the northwesterly comer of Campus Place and Dawes Street; thence southeasterly along the north line of vacated Pearl Avenue and the north line of Pearl Avenue to the northwesterly line of Lot 17, Block H of the Western Addition; thence northeasterly along the northwesterly line of said Lot 17 to the northeast corner of Lot 18, Block H of the Western Addition; thence northwesterly along the southwesterly line of Lots 14 and 15, Block H of the Western Addition to the most westerly corner of said Lot 14; thence northeasterly along the northwest line of said Lot 14 to the southwesterly line of High Avenue; thence southeasterly along the southwesterly line of High Avenue to the center line of Jackson Street; thence south along the centerline of Jackson Street to the northerly shoreline of the Fox River; thence northwesterly along the northerly shoreline of the Fox River to the northwesterly line of Lot 3 Western Addition Block A; thence northeasterly along the northwesterly line and extended northwesterly line of said Lot 3 to the southwesterly line of Marion Road: thence northwesterly along the southwesterly line of Marion Road to a point that bears S. 30°59'45" W. of a point on the northerly line of Marion Road that is 19 feet southeast of the southwest corner of Lot 19 Western Addition Block E as measured along the northerly line of Marion Road; thence N. 30°59'45" E. to the northerly line of Marion Road; thence N. 30°5945" E., 132.21 feet to the centerline of vacated Hancock Avenue; thence N. 52°03'42" W., 179.79 feet along the centerline of vacated Hancock Avenue: thence N. 39°00'56" E., 149.92 feet to the northwest comer of Lot 24 Western Addition Block F; thence S. 52°04'30" E., 119.97 feet to the southeast corner of Lot 12 Western Addition Block F; thence N. 39°03'20" E. along the southeasterly line of said Lot 12 and the extended southeasterly line of said Lot 12 to the centerline of vacated Warren Road; thence northwesterly along the centerline of vacated Warren Road to the extended northwesterly line of Lot 11 of the Western Addition Block F; thence southwesterly along the extended northwesterly line of said Lot 11, 24.98 feet to the former northerly right-of- way line the Wisconsin Central Limited R.R.; thence westerly 704.56 feet along the arc of a curve concave to the left of radius 618.11 feet and whose chord bears S. 88°25'56.4" W., 667.03 feet and which is also the former northerly right-of-way line of the Wisconsin Central Limited R.R. to the southeasterly line of Dawes Street; thence southwesterly along the southeasterly line of Dawes Street to the northerly line of Marion Road: thence northwesterly to the northwest corner of Dawes Street and Marion Road; thence northwesterly along the northerly line of Marion Road to the southeasterly line of Wisconsin Street; thence northeasterly along the southeasterly line and extended southeasterly of Wisconsin Street to the point of beginning. Total area within the TID is estimated at 36.66 acres. 3 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 eligible project costs. With this amendment, the City is adding additional projects to the Project Plan that will allow for continued redevelopment of this area. All or most of the activities listed may actually not be undertaken but have been included to allow the RDA to take advantage of development opportunities as they arise. At this time acquisition and clearance of the properties at 401 and 405 High Avenue are priorities for implementation. The majority of project costs are attributed to acquisition and clearance of the identified properties. Although the gas station at 203 Jackson Street has been identified for acquisition, it may be possible to work with an owner/developer to rehabilitate the property to modern standards which would include site and building improvements. Address Estimated Acquisition Costs Estimated Relocation Costs Estimated Demolition Costs Total Estimated Timing 405 High 200,000 0 20,000 220,000 2005 401 High 120,000 0 15,000 135,000 2005 203 Jackson 325,000 125,000 25,000 475,000 2005-2020 Sub total 645,000 125,000 60,000 830,000 533 High 125,000 30,000 15,000 170,000 2005-2020 526 Campus 100,000 20,000 15,000 135,000 2005-2020 518 Campus 100,000 10,000 15,000 125,000 2005-2020 514 Campus 100,000 10,000 15,000 125,000 2005-2020 Subtotal 425,000 70,000 60,000 555,000 Subtotal 1,070,000 195,000 120,000 1,385,000 Administration 166,200 Total 1,551,200 Financing Cost* 938,246 Project Costs w/financing 2,489,446 *Estimate based on financing all project costs at this time. Acquisition costs generally include, appraisals, purchase price, closing costs and lost rent. Relocation costs include relocation benefits. Demolition costs include, asbestos testing, asbestos abatement, razing including removal of foundation, tipping fees, filling and grading. 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 positive tax increments remaining after annual debt service has been addressed will be used to repay the City for incurring these costs. It is anticipated that all project costs will be paid through tax increment generated in the district, which at this time is approximately $324,000, as well as increment contributions from TID #7 - Southwest Industrial Park. 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 Comprehensive Plan, as approved by the Plan Commission and Common Council. Additionally, project elements conform to the goals and objectives identified in Redevelopment Project Plans for this area. The existing and proposed zoning are shown on Maps #4 and #5 in Appendix A. The recommended zoning in the expansion area is C-3 PD Central Commercial with a Planned Development Overlay. This zoning is consistent with zoning in the redevelopment area and provides the most flexibility for redevelopment. 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. As of 2004, the District has realized a tax increment of approximately $10.6 million and has seen the development of several new commercial and residential developments including strip centers, a new restaurant, and 6 new apartment buildings. The value increment translates into roughly $324,658 in annual property taxes ($6,493,160 remaining district life) generated over and above the base that is used to offset annual debt service requirements needed to finance district improvements. 5 Significant levels of new development value in the expansion areas are not anticipated as the primary purpose of expansion is to eliminate a number of blighting influences on the district's periphery that impact redevelopment in the existing district. A nominal value increase is expected along Campus Place where the existing equalized value of the structures is about $295,000. Based on the area and depth of the Campus Place parcels, the City envisions that similar "Division Street" style of development could be accommodated on the parcel and result in approximately 10 new dwelling units. The new dwelling units are valued at about $59,108 per unit with a total structure value of $591,080. That equates to about a $437,536 value increment for this area or an annual property tax increase of about $10,042 at 2005 rates and would generate approximately $229,354 in additional property taxes over the remaining life of the district (assuming a 2% growth rate). Improvements in the balance of the expanded area will be limited to the creation of open space or space that could be better incorporated into an adjacent development. In the case of the parcels along Jackson Street, the City has the option to acquire all parcels for a limited redevelopment site or to acquire the two multiple family structures in support of a rehabilitation project involving the gas station. The multiple family structure at 533 High Avenue next to the commercial structure may be able to be incorporated into a site improvement plan for that development. The current equalized value of the three parcels in the Jackson Street area is $483,800 generating approximately $10,700 in annual property taxes at current rates or about $214,516 over the remaining life of the district. Based on the limited and irregular size and shape of these parcels any redevelopment project would probably not result in a significant value increase for the area. The improvement value for this area is due to the elimination of highly visible blighting and underutilized parcels adjacent to the redevelopment area. The district currently has a scheduled total debt service of about $15 million dollars that will terminate in 2023 and requires an annual debt service payment on average of about $1.3 million. As was envisioned when the district was established, initial tax increments from the district would be unable to support significant levels of debt service associated with redevelopment of the area and TID #7 - Southwest Industrial Park, was amended to enable "donation" of positive increments from the district. TID #7 currently has an increment of $108,414,200 generating approximately $2.5 million in annual property tax payments (at current rates) with a share of the payment offsetting debt service costs in TID #13. TID #7 will continue to act as a "donor" to TID #13. 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 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 are identified in Map #7 in Appendix A. The parcels along Campus Place can be utilized for a Division Street style of development and the parcel should be able to accommodate 10 dwelling units. The parcel adjacent University Plaza maybe able to be incorporated into the development to create additional building or site improvement area. The parcels along Jackson Street may be used in a redevelopment project for the entire assemblage, a rehabilitation project involving the gas station, or the creation of open space. At a minimum, the two small multiple family structures will need to be acquired and removed for blight elimination purposes. Non -Project Costs It is anticipated there will be no non -project costs related to implementing this Project Plan. Relocation Relocation of individuals or businesses will be carried out in accordance with applicable relocation requirements set forth by the State of Wisconsin and/or federal regulations. Findings 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 66.1333, 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; • The primary objective for Amendment No. 3 to the TID #13 Project Plan is to continue with blight elimination in the district; • The amended plan is feasible and is in conformity with the City's Comprehensive Plan; A new finding relevant to this Amendment to the TID #13 Project Plan would be: The area is a blighted area district; Improvement of the area is likely to enhance significantly the value of substantially all of the other property in the district; The equalized value of taxable property within the district plus the value increment of all existing districts within the city does not exceed 12 percent of the total equalized value of taxable property within the city. Supplemental Data The project plan contains a listing of project costs and statement that all costs are proposed to be paid for through tax increments generated within the district (currently about $324,658) as well as continued donation from positive increments in TID #7 to offset negative cash flow. New increment generated in the expansion area will be derived from a new apartment building with an estimated 10 units generating an annual property tax increment of approximately $437,536 over the remaining life of the TID. Property owners in the district benefit from improvements and should not pay for them because the blighting influences were not created by new development within the district. The benefits received at the end of the T1D timeframe will be the elimination of blighting influences in the area and increased property tax values. The share of tax increments paid by property owners within the district, based on the estimated increment from only the new apartment building is shown in the following table. Share of Estimated Apartment Increment Current Rates Taxes City County Schools FVTC Generated* 34.42% 23.28% 34.00% 7.46% 2007 $ 10,042 3,456.30 2,337.67 3,414.12 749.10 2008 $ 10,242 3,525.42 2,384.42 3,482.40 764.08 2009 $ 10,447 3,595.93 2,432.11 3,552.05 779.36 2010 $ 10,656 3,667.85 2,480.75 3,623.09 794.95 2011 $ 10,869 3,741.20 2,530.37 3,695.55 810.85 2012 $ 11,087 3,816.03 2,580.97 3,769.47 827.06 2013 $ 11,308 3,892.35 2,632.59 3,844.85 843.61 2014 $ 11,535 3,970.20 2,685.25 3,921.75 860.48 2015 $ 11,765 4,049.60 2,738.95 4,000.19 877.69 2016 $ 12,001 4,130.59 2,793.73 4,080.19 895.24 2017 $ 12,241 4,213.20 2,849.60 4,161.79 913.15 2018 $ 12,485 4,297.47 2,906.60 4,245.03 931.41 2019 $ 12,735 4,383.42 2,964.73 4,329.93 950.04 2020 $ 12,990 4,471.09 3,024.02 4,416.53 969.04 2021 $ 13,250 4,560.51 3,084.50 4,504.86 988.42 2022 $ 13,515 4,651.72 3,146.19 4,594.96 1,008.19 2023 $ 13,785 4,744.75 3,209.12 4,686.86 1,028.35 2024 $ 14,061 4,839.65 3,273.30 4,780.59 1,048.92 2025 $ 14,342 4,936.44 3,338.77 4,876.21 1,069.90 $ 229,354 $ 78,944 $ 53,394 $ 77,980 $ 17,110 *Assumes 2% annual growth 8 CITY HALL • 215 Church Avenue P.O. Box 1130. Oshkosh, Wisconsin 549903-1130 03.1M City of Oshkosh OIHKQIH City Attorneys Office Phone: (920) 236.5115 Fax: (920) 236.5090 http;//www.cl.oshkosh.wLus April 7, 2005 Mr. Darryn Bunch Director of Planning Services City of Oshkosh 215 Church Avenue Oshkosh, WI 54901 Dear Mr. Bunch: I have reviewed the project plan for Amendment No. 3 to City of Oshkosh Tax Increment District # 13 — Marion Road/Pearl Avenue Redevelopment Project, pursuant to Section 66.1105(4)(f) of Wisconsin Statutes. I find that the plan includes a statement listing the kind, number and location of proposed public improvements. It also shows an economic feasibility study, a detailed list of estimated project costs, and a description of the method of financing all estimated project costs and the time when the costs are to be incurred. The plan also has a map of existing uses of the real property in the district and map showing proposed improvements in the district and which also indicates the zoning of the district. The plan further shows how the district will promote the orderly development of the City. Upon adoption by the Plan Commission of the project plan and their submission to the City Council, all requirements of Section 66.1105(4)(f), Wisconsin Statutes, shall be complete and it is, therefore, my opinion that the project plan attached hereto is complete and complies with Sec. 66.1105, Wis. Stats. Sincerely, CITY OF OSHKOSH Warren P. Kraft City Attorney APPENDIX A PROJECT MAPS 0 1s F- 04v Q'4. 10 C 0 0 C C) IS NOSN0Vf F — Os ua C 0 I M C N LL 0) - U U QJ l-� E E E M LI- (O J n J ' n F- > Q O U' 0. S (O •• a (+) If) ('O , N N N V• _ N J Ui N V' (D 0) . 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U C U) b C C) E a) I- 0 C X CCi as NOSM0VP 18 '\ Q) .a PIP Appendix B COMBINED NOTICE OF PUBLIC HEARING BEFORE THE CITY OF OSHKOSH PLAN COMMISSION TUESDAY, APRIL 19, 2005 4:00 PM, Room 404 City Hall, Oshkosh, WI The Plan Commission will hear public comments on the proposed amendments to two City of Oshkosh Tax Increment Districts (TID): Amendment No. 2 to TID #8 South Aviation Industrial Park and Amendment No. 3 to TID #13 Marion Road/Pearl Avenue Redevelopment Project. The Project Plan and boundaries for the proposed district will be considered at the public hearing. Interested persons are encouraged to attend. The draft Project Plan will be available upon request on or about April 14, 2005. For information, call the City of Oshkosh Planning Services Division at 920-236-5055 between 8 am — 4:30 pm, Monday thru Friday. Proposed Amendments Amendment No. 1, TID # 8 South Aviation Industrial Park The amendment involves the addition of two parcels of land generally located at 300 and 370 W. Waukau Avenue along the north side of the street approximately 480 feet west of Oregon Street. The primary purpose of this amendment is to relocate existing City sewer lines to accommodate expansion of facilities located at 370 W. Waukau Avenue with an approximate cost of $222,000. The amendment adds territory to the existing TID and projects to the project plan. Amendment No. 3, TID # 13 Marion Road/Pearl Avenue Redevelopment Project The amendment involves expansion of existing TID boundaries to include several additional properties generally located along Campus Place and Jackson Street. The Campus Place expansion involves six properties along the north side of Campus Place located between Dawes Street on the east and 545 High Avenue on the west and one property at 533 High Avenue. The Jackson Street expansion involves three properties bordered on the north by High Avenue, on the south by Pearl Avenue, on the east by Jackson Street and on the west by 435 High Avenue. The purpose of the amendment is to support continued redevelopment activity in the area and may involve acquisition and clearance of the majority of properties located in the proposed expansion area. Project activities may also involve the rehabilitation of a property within the district and this may include the provision of a developer assistance grant. The estimated cost of the amendment is $1.5 million, PUBLISHED: April 8 & 11, 2005 19