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HomeMy WebLinkAbouttid-14-mercy-medical-center-redevelopmentProject Plan for: City of Oshkosh TAX INCREMENTAL FINANCE DISTRICT # 14 HAZEL STREET/MERCY MEDICAL CENTER REDEVELOPMENT Department of Community Development June 2000 Adopted by Common Council: June 13, 2000 2000 TAX INCREMENTAL DISTRICT #14 CITY OF OSHKOSH ADOPTED BY THE PLAN COMMISSION February 1, 2000 Public Hearing ADOPTED BY THE COMMON COUNCIL June 13, 2000 Public Hearing ADOPTED BY THE JOINT REVIEW BOARD July 11, 2000 PREPARED BY: DEPARTMENT OF COMMUNITY DEVELOPMENT February -June 2000 TABLE OF CONTENTS 7Le7V INTRODUCTION PURPOSE I 2 BOUNDARIES 2 NAME OF DISTRICT 2 CREATION DATE 3 PROPOSED PROJECT COSTS AND IMPROVEMENTS SUMMARY AND ESTIMATE OF TIMING OF THE PROJECT COSTS 4 METHOD OF FINANCING 4 MASTER PLAN, ZONING, & OTHER CODE CONSIDERATIONS 4 ESTIMATED NON -PROJECT COSTS 5 PROMOTION OF ORDERLY DEVELOPMENT 5 ECONOMIC FEASIBILITY 5 RELOCATION 5 6 FINDINGS TABLES TABLE 1 DETAILED ESTIMATES OF PROJECT COSTS AND IMPROVEMENTS 3 TABLE 2 SUMMARY OF AND ESTIMATE OF THE PROJECT COSTS 4 TABLE 3 ESTIMATED PROJECT INCREMENTS AND DEBT SERVICE 7 ATTORNEY'S OPINION 8 APPENDIX A 9 MAP 1 - TID #14 Boundaries MAP 2— Proposed Public Improvements 10 MAP 3 - Existing Land Use ii MAP 4- Proposed Land Use and On -Site Improvements 12 MAP 5 - Existing Zoning 13 14 MAP 6 - Proposed Zoning MAP 7 —Conditions of Real Property 15 APPENDIX B - Common Council Report to the Joint Review Board 16 APPENDIX C — Notice of Public Hearing before the Plan Commission — February 1, 2000 17 APPENDIX D — Plan Commission Minutes of February 1, 2000 18 APPENDIX E — Common Council Resolution — June 13'", 2000 20 APPENDIX F — Joint Review Board Resolution — July 11'", 2000 23 APPENDIX G — Joint Review Board Minutes— July 11'", 2000 24 Introduction Wisconsin's Tax Incremental Financing law provides a mechanism that enables cities and villages to rehabilitate blighted areas, improve business areas, and/or develop industrial sites. The intent is to defray the cost of public improvements in a Tax Incremental District (TID) by using tax revenues or increments generated from new development. Under Tax Incremental Financing, the tax increment generated from private investment in a TID is applied entirely to the retirement of debt incurred by the municipality in order to make the area attractive to investment or reinvestment. When the cost of public improvements have been recovered, the TID is dissolved and all taxing jurisdictions benefit on the same shared basis as before the creation of the TID. The tax incremental financing law provides benefits to all taxing entities by promoting development of new taxable value which otherwise would not occur. It provides a tool to municipalities to make feasible the required levels of investment to meet identified needs and fill legitimate public purpose roles. The law also recognizes that since municipalities do not share the investment risk with other tax entities, they are entitled within a prescribed period of time, to receive all new tax revenues of the TID as the source of paying off all public investment costs. All other taxing entities receive benefits in the future from the increased tax base generated as a result of the city's investment in the TO. Purpose The City of Oshkosh is proposing to create Tax Incremental District #14 to help finance demolition, public improvements, and environmental remediation to aid in the prevention of blighting conditions and to stimulate redevelopment of the Hazel Street Mercy Medical Center which is expected to be vacated by mid year 2000. The proposed TID is located on the city's east side just west of Menominee Park and Lake Winnebago. The TID is bordered on the west by Grove Street, on the east by Hazel Street, on the north by Irving Avenue, and on the south by Parkway Avenue. The TID is composed of six tax parcels covering approximately 7.38 acres. The purpose of this TID is to ensure that the Mercy Medical Center site is redeveloped prior to its becoming a blighting influence in its older established neighborhood after the hospital moves in mid- year 2000. Goals of the City of Oshkosh Comprehensive Plan, adopted in August 1993, as it relates to the creation of this TID are: ♦ Stabilization of older neighborhoods; ♦ Promote and support affordable housing; ♦ Provision of housing opportunities appropriate for all segments of the population; ♦ Redevelop older sections of the City that are underutilized, blighted, or obsolete. This TID will result in the construction of a 64 -unit elderly apartment building complex with income limitations, 2 single story attached garage four unit apartment structures, and the creation of 4 lots for single family construction. Boundaries/Property Identification A part of Charles Barber's Block 3, Barber & Madison's Addition Block 2, Carl Hennig's Addition Block 2, Hazel Street, E. Irving Avenue, Oak Street, Grove Street and Cleveland Avenue all in the Eleventh Ward, City of Oshkosh, Winnebago County, Wisconsin described as follows: Commencing at the intersection of the centerline of Cleveland Avenue and Hazel Street; thence north along the centerline of Hazel Street to the extended south line of E. Irving Avenue; thence west along the extended south line and south line of E. Irving Avenue to the northwest corner of Lot 9 Charles Barber's Replat Block 3; thence south along the west line of said Lot 9 to the southwest comer of said Lot 9; thence west along the south lines of Lots 10 and 11 of Charles Barber's Replat Block 3 to the southeast corner of Lot 12 Charles Barber's Replat Block 3; thence north along the east line and extended east line of said Lot 12 to the centerline of E. Irving Avenue; thence west along the centerline of E. Irving Avenue to the centerline of Oak Street; thence south along the centerline of Oak Street to the extended north line of Lot 5 Barber & Madison's Addition Block 2; thence west along the extended north line and north line of said Lot 5 to the northwest corner of said Lot 5; thence south along the west line of said Lot 5, 16.666 feet; thence west parallel and 16.666 feet south of the north line and extended north line of Lot 9 Barber & Madison's Addition Block 2 to the centerline of Grove Street; thence south along the centerline of Grove Street to the intersection with the centerline of Cleveland Avenue; thence east along the centerline of Cleveland Avenue to the centerline of Hazel Street also being the point of beginning Total area within the TID is estimated at 6.27 acres. The boundaries of TID #14, and real property determined to be blighted, underutilized, or in need of rehabilitation or clearance are identified in Map 1. Name Of The District The name of the TID shall be City of Oshkosh Tax Incremental District #14 (TID # 14) — Hazel Street/Mercy Medical Center Redevelopment Project. Creation Date The date of creation for the capture of all new taxable value created within TID #14 shall be January 1, 2000. The value established as of this date shall be used as the base in computing any increments that may accrue in the tax base for the District. Proposed Project Costs And Improvements Project costs relative to TID fmancing are estimated at $733,500 including costs related to demolition, environmental remediation, site preparation, and related administrative/engineering costs. It is anticipated that all costs will be incurred within the TID. It is also projected that most project costs will be incurred over a period of four years, but they could be incurred over the seven year period allowed by state statute, The detailed cost estimates and potential phasing of the project is presented in Table 1 below. Map 2 on page 9 illustrates the location of the activities and improvements proposed to be undertaken in TID #14. All project expenditures must be made within seven years of the creation of the TID, Tax increments may be received until project costs are recovered but for no longer than sixteen years after the last expenditure is made. The maximum life of the TID is twenty-three years or sixteen years after the last expenditure. In the case of TID #14, all project expenditures must be made by January 1, 2007. Table I Detailed Estimate of Phase I Project Costs and Improvements Activity TIF Costs Other Costs Gross Costs Asbestos Abatement $629,200 629,200 Building Demolition 113,300 113,300 City Administrative/Engineering $50,000 $50,000 Site Preparation $30,000 $30,000 Street Construction $191,000 $764,000 $955,000 Total Estimated Costs without Financing $1,013,500 $1,477,500 Total Estimated Costs to be TID Bonded* $733,500 $733,500 Estimated Financing Cost $518,433 Total Bonding Costs including Financing $1,251,933 *Developer shall use a $300,000 seller subsidy to reduce project costs and make initial interest payments on bonded debt service. Administrative related costs include city personnel, consultant services, and supplies and materials used in connection with the planning and implementation of this project plan. Costs related to "preplanning" of this TID and paid for from general city accounts and department budgets are eligible for reimbursement through TID increments per Wisconsin Statute 66.46 (2)(f). Other costs include special assessments for street infrastructure related improvements not paid for through TID borrowing. Summary of and Estimate of Timing of the Project Costs Table lI summarizes project costs by year of expenditure and provides an estimate of costs to be incurred. The estimated project costs may be adjusted within the amounts shown without modification of the Project Plan. Table II TID Eligible Activity Year TID Eligible Asbestos Abatement 2000 $629,200 Demolition 2000-2001 $113,300 Site Preparation 2000-2003 $30,000 Street Reconstruction/Infrastructure Improvements 2000-2003 $191,000 City Administrative/Engineering 2000-2007 $50,000 Total Project Costs Without Financing $1,013,500 TID Eligible Costs to be Bonded* 2000-2003 $733,500 Estimated TID Costs paid back through increment 2000-2007 $50,000 Financing Cost $518,433 Total Estimate of TID Costs $1,301,933 *Developer will use a seller subsidy oreduce overall costs and mace initial interest payments on bonded debt service Method of Financing The project costs, including financing, are the estimated amount of tax increment revenues to be requested under the provisions of Section 66.46 Wisconsin Statutes, Tax Increment Law. The method of financing project costs is expected to be through loans from the State Trust Fund or any other method of financing approved by the City of Oshkosh Common Council. Project expenditures will be recovered through tax increments. If tax increments are not sufficient to cover debt service payments, a debt service guarantee will be provided from the developer to cover any shortfalls. 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 City Council. Existing land uses in the TID are shown on Map 3, and proposed land uses are shown on Map 4. Zoning changes in terms of adding a planned development overlay and changing a portion of the site from its current R-2 Two Family District classification to R-5 PD Multiple Family Planned Development District is needed to implement this project plan. The multiple family zoning is needed for the elderly campus building and the four apartment buildings. The twenty-two single-family lots will retain their current R-2 zoning. No changes in the City's Official Map, Building Codes or other City Ordinances appear to be necessary to implement the Project Plan. The existing zoning of the TID is shown on Map 5, and the proposed zoning is illustrated on Map 6. Estimated Non -Project Costs There are no estimated non -project costs associated with implementing this project plan. Promotion of Orderly Development Mercy Medical Center is currently in the process of constructing its new facility on the city's west side. By mid year 2000, the Hazel Street facilities should be vacated leaving the two main structures, in excess of 300,000 square feet, to an uncertain future were it not for the tool of tax incremental financing. The costs associated with demolition and asbestos abatement alone make redevelopment of this site prohibitive for most developers who can build similar facilities in "greenfield" locations for much less money and environmental problems. Use of TIF for this redevelopment area will help fill the financing gap and promote orderly development by ensuring that the project area is redeveloped prior to its becoming a blighting influence in the neighborhood. TID also necessitates good planning through the public hearing process, reviews by the Plan Commission, Common Council, and Joint Review Board as well as the project plan being drafted and developed by the City's Department of Community Development. Economic Feasibility Determination of the economic feasibility of this TID is based on the development of a $2.5 million 64 unit senior village, two apartment buildings with eight living units worth approximately $650,000, the development of four new single family lots and houses worth an estimated $460,000, and the sale of one single family house owned by the hospital and located within the proposed TID boundaries that is currently tax exempt but worth approximately $70,000. The district is projected to have an equalized value of approximately $6.4 million dollars when costs are paid in full and the TID is terminated at the end of its maximum 23 -year life span. The district may be terminated prior to the 23 -year life span provided that all financed project costs and debt service is fully paid. Relocation No displacement and relocation of persons or businesses is needed or will be undertaken in this project area. If 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 Federal regulations. Findings • More than 50 percent of the real property within the TID is blighted, in need of rehabilitation, or conservation within the meaning of Section 66.435 (2m)(b) Wis. Stats.. • The redevelopment of the area calling for the construction of new multiple family units for elderly persons and the creation of 4 buildable single family lots will have a significant positive impact on the value of all real property in the District; • Project costs associated with implementing this project plan are consistent with the purpose for which the District was created; • The equalized value of taxable property of the district plus all existing districts does not exceed 7% of the total equalized value of taxable property within the city. Based on January 1, 2000 equalized values, the base value of TID #14 is estimated at $0 due to its current exempt status. The equalized value of taxable property in TID #14 plus all existing districts does not exceed 7 percent of the total equalized value of taxable property within the City of Oshkosh. The January 1, 2000 equalized value of all existing TID's including the estimated value of proposed TID #14 is $123,640,900 or 5 percent of the estimated $2,267,759,900 total equalized value of the City at the time of TID #14's creation. Hi _a 0o nNNObNCOnmCON gn0)n dU)VN n me Q-ONNNNv�v"i�COO nm$c0 2 si Vn 98ntn� lNon m Nn-N2.NaO nuN din -01 OQNEM�Nm m-mC�r{mmm dmmm pN imp OCpj .Q. a rm N(N1 CnJ0m V1�N ICNNO O, W mb 1D CCII er m Q b O CO0 mm00{my N000NO0O)nn rOO�tNll�Om�pmp NtO l�OJnNnNpN fON 01 �p p0� m O f` N 0 N N 0 0 0 N N N N O K® h N f0 0 Ol r r CO Nu N U m c '' V N NN 0nO N 6 m b fO o b n COO �C'') 0 m N Y V Y d p CO 0 0 b N (O CO N N 00 N L R d6p CO O O OH W N N 0 0. 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NCON(ONNONMNNO-ON V r � CO CO CO CO d d Q Q Y Y d V N N N N UI UI CO CO 000440' Onl90 bO b N a n COLD - "UN1N0 tempo �to tibpb`r p y CO pp 0b NNN 1O s0 rO CO N CO yyr U) N�y m�Nt9 N N0m00( bNra0Nl 0Na)L (Yd CO CO CO C)d d d d d d V C0000000 CD CO O O O O O O 0 8 O O r` 0 Q b b n 0 m N N N N N N N N N N N N ON N N N N N N N N N N N N N N 7 CITY HALL 215 Church Avenue P.O. Box 1130 Oshkosh, Wisconsin 54902-1130 City of Oshkosh (0 — Of HKO City Atlurncr's Unice Phone: (920) 236-5115 Pax: (920) 236-5091) January 24. 2000 Mr. Jackson It. Kinney Director of Community Development (Iv of Oshkosh 215 Church Avenue )shkosh. WI 54903- 1130 Dear Mr. Kinney I have reviewed the project plan for City of Oshkosh "fax Increment District # 14 — Hazel Street/Mercy Medical Center Redevelopment, pursuant to Section 66.46(4)(1) 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 linancing 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 66.4(i(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. 66.46(4)(1), Wis. Stats. Sincerely. CITY O � O,[ SI IKOSI I Warren P. Kraft City Attorney iJ 8 APPENDIX A WROJOc I�T71 ir.'I1 Map 1 TID#14 Boundaries LINCOLN A OCC U E IRVING AVEU __ __ iii y H I II ii / 2 i x CLEVELAND AVE E PARKWAY AVE (09/00) Map 2 I #14 PROPOSED IMPROVEMENTS E LINCOLN AVE U) H Ht___ - E IRVING AVE I 1 __ 1? 1< I 1 1 1 1 i 1 I 1 1 I .Remediation I Demolition - I ♦ �eeN�4fr e 1 I Site Preparation 1 Reconstruction 1 i 1 CLEVELAND AVE E PARKWAY AVE R HO1LH H (odoo) II) C) �lrj Ij I- cu __ 0 C C) E rID 1/ O r' a °® 0 0 6 v' 0 0 ®OH ©®00 v 05 C C I I -t TID #14 Map 7 CONDITIONS OF REAL PROPERTY ELINCOLN AVE LJ U 1UUp tLE Hl f0 oQ Q Q — o o a c,uco lnH �o a o °y Q❑ C� ❑ o x E [RVING AVE LEGEND In lkhbJitatim CLEVELAND AVE 1�7 ❑ O ❑ C� r. ❑ D � ❑ o ml di o❑f E PARKWAY AVE n ❑0u❑ ❑ �y ❑LJu ❑ 90 7C ❑ 0 o Q Q (Ma)) 1S APPENDIX B COMMON COUNCIL REPORT TO THE JOINT REVIEW BOARD Section 66.46(4)(i), Wisconsin Statutes, requires the Common Council provide the Joint Review Board with certain information and projections. This Appendix will provide the required information either by reference to its location in the Project Plan, or by separate narrative. All projections and information presented in this report assume TID #14 will be in existence for the twenty-three years allowed by Statute. Specific projects that may be undertaken in TID #14 and their estimated costs are listed in Table I of the Project Plan. 2. The estimated amount of tax increments to be created over the life of TID #14 is shown on Table 2 of the Project Plan. The value increment (equalized value of all taxable property minus the tax incremental base) when project costs are paid in full is an estimated $6.4 million. Project costs in 1 above are associated with demolition, public improvements, environmental remediation and associated costs as well as engineering and administrative services. The project costs incurred by the TID are necessary for the redevelopment of the area. If the property owner had to pay for all project costs, it is unlikely the project would proceed, the property would remain exempt and represent a blighting influence in the neighborhood. The share of projected tax increments to be paid by the overlying taxing jurisdiction for 2000 is estimated to be as follows: School District 38.1%, City 32%, County 21.2%, FVTC 7.8%, State .9%. 5. Benefits received by property owners in the overlying taxing jurisdictions to compensate them for their share of the projected tax increments are as follows: First, property that is in need of rehabilitation and constructed for special purposes may quickly become a blighting influence in an established residential neighborhood will be redeveloped prior to its becoming a blighting influence in the area. Second, more multiple family living units will be made available to elderly persons within the community offering more locational choices for persons seeking these types of living accommodations. Third, if the property is not redeveloped and retains its current exempt status, no property taxes will be generated and there will be no public benefit. Appendix C NOTICE OF PUBLIC HEARING BEFORE THE CITY OF OSHKOSH PLAN COMMISSION Tuesday, February 1, 2000 5:00 PM, Room 404 City Hall, Oshkosh, WI The Plan Commission will hear public comments on the designation of a Tax Incremental Financing District. The project plan for the proposed district will also be considered. Interested persons are encouraged to attend. Copies of the project plan are available upon request. For information, call the City of Oshkosh Planning Services Division at (920) 236-5055 between 8 AM — 4:30 PM, Monday through Friday. The district shall be named: Tax Incremental District No. 14 — Hazel Street/Mercy Medical Center Redevelopment Project. The general location of the proposed TID is: south of Irving Avenue, east of Grove Street, north of Parkway Avenue, and west of Hazel Street. Legal Description: The proposed boundaries of Tax Incremental District No. 14 are described as follows: A part of Charles Barber's Replat Block 2 and Block 3, Barber & Madison's Addition Block 2, Carl Hennig's Addition Block 2, Voss Subdivision, Corbett's Replat and Evans 3rd Addition Block 66 all in the Eleventh Ward, City of Oshkosh, Winnebago County, Wisconsin described as follows: Commencing at the intersection of the centerline of E. Parkway Avenue and Hazel Street; thence north along the centerline of Hazel Street to the extended north line of Lot 7 in Charles Barber's Replat Block 3; thence west along the extended north lines and north lines of Lot 7 and Lot 13 in said Charles Barber's Replat Block 3 to the southeast comer of Lot 12 Charles Barber's Replat Block 3; thence north along the east line and extended east line of said Lot 12 to the centerline of E. Irving Avenue; thence west along the centerline of E. Irving Avenue to the centerline of Oak Street; thence south along the centerline of Oak Street to the extended north line of Lot 5 Barber & Madison's Addition Block 2; thence west along the extended north line and north line of said Lot 5 to the northwest comer of said Lot 5; thence south along the west line of said Lot 5, 16.666 feet; thence west parallel and 16.666 feet south of the north line and extended north line of Lot 9 Barber & Madison's Addition Block 2 to the centerline of Grove Street; thence south along the centerline of Grove Street to the intersection with a line that is 10 feet south of the extended south line of Lot 20 Evans 3rd Addition Block 66; thence east along a line that is 10 feet south of and parallel to the extended south lines and south lines of Lot 20 and Lot 9 Evans 3rd Addition Block 66 to the centerline of Oak Street; thence north along the centerline of Oak Street to the centerline of E. Parkway Avenue; thence east along the centerline of E. Parkway Avenue to the extended west line of Lot 3 Voss Subdivision; thence south along the extended west line and west line of said Lot 3 to the southwest corner of said Lot 3; thence east along the south line of said Lot 3 to the southeast comer of said Lot 3; thence north along the east line and extended east line of said Lot 3 to the centerline of E. Parkway Avenue; thence east along the centerline of E. Parkway Avenue to the centerline of Hazel Street also being the point of beginning. (13.52 acres) PUBLISHED: Jan 21 & 25, 2000 17 Appendix D Plan Commission Minutes Page 8 February I, 2000 Motion by Bettes for approval of the rezoning from R-2, Two Family Residence District to R-5 PD, Multiple Dwelling District with a Planned Development Overlay District. Mr. Borsuk asked if a condition could be made for single family homes to be constructed within a given time frame. Mr. Kinney stated it was not part of this rezoning request. The Planned Development overlay was discussed regarding giving the Plan Commission's further review of this development. Seconded by Blassingame. Motion carried 8-0. VIII: PUBLIC HEARING ON PROPOSED CREATION OF TAX INCREMENTAL REDEVELOPMENT PROJECT, DESIGNATION OF BOUNDARIES AND APPROVAL OF PROJECT PLAN Chairman Ruppenthal opened the public hearing on Tax Incremental Financing District (TID) #14 and the designation of boundaries for said Tax Incremental Financing District. Mrs. Bloechl asked what would happen in the TID layout if single family housing were eliminated. Mr. Kinney stated the proposed layout was all inter -related and the single-family housing was a necessary part of the development. Mrs. Bloechl also asked how Mr. Seno could go about selling lots in an area that was already designated as a TID District. Mr. Kinney stated a value had already been set for the property to determine the taxes. Ken Bender, 806 Oak Street, stated he was basically pleased with the layout of the development, but would like to see a couple of conditions before approval. He stated the first condition would be to increase the right of way on Parkway Avenue to 54 feet to enable vehicles easier access for turning. The second condition Mr. Bender asked for was to have no parking on the north side of Parkway Avenue between Grove Street and Hazel Street. The third condition he requested was to have a 10' easement from Parkway Avenue to Cleveland Avenue extending to the south to provide access to Webster Stanley School for the children. Mr. Bender also stated he was not in favor of elderly people living in the area with no medical care on site. Paul Weimer, 503 W. Lincoln, stated he had some aesthetic concerns, however, he liked the inclusion of the single family housing in the development and stated it could be a profitable TID District. Mark Harris, 242 Sandstone Court, was concerned about the development being subject to property taxes. Mr. Seno stated he insisted the housing development would be taxed. Mr. Bender asked if the TID District could be changed from a 20 year to a 15 year contract. Chairman Ruppenthal stated the State Government makes the ruling as to the length of time a TID District is in effect. There being nor further comments from the public, the public hearing was closed. Plan Commission Minutes Page 9 February 1, 2000 Mr. Borsuk referred to table 1 on page 3of the plan, and questioned what costs were covered in the i "Other Costs" column. Mr. Kinney explained $848,000 would cover special assessments. He stated the TID District and property owners would pay a portion of those costs. Mr. Borsuk asked what other TID projects were developed for profit making entities to build housing developments. Mr. Bluemke replied the Division Street development was an example of another TID District developed for such a purpose. Mr. Borsuk stated the owner should be liable for the project site as he has the ability to pay the costs, and the City shouldn't be giving them a gift of over 4 million dollars. He stated it is not appropriate to take tax money away from the schools. Mr. Gehling stated the TID District would return the money to the City. Mr. Kinney stated the money would be returned to the normal tax rolls after 20 years. Mr. Bettes stated even though the TID District may be taking taxes away from schools, and may not be creating new jobs, new housing is being developed that has not been on the tax rolls. He stated he can support the project but not the TID, as he feels 40% of the costs being designated for asbestos removal is too much. Mr. Gehling stated the TID is actually creating new jobs by supporting the building of a new hospital. He stated this development helps Affinity to relocate and the City will be getting the money back. Mr. Kinney stated the Commission shouldn't dismiss the fact that this property could sit vacant for many years and have a negative impact on the neighborhood, and Menominee Park. He explained the TID District is created to deal with blighted situations and without it developers may not be encouraged to come forward to develop this site. Discussion continued on what the polluters role was and what the governments role was in cleaning up the pollution on the site, and what the best outcome was for the City and it's future, not for Affinity Health Systems. Mr. Borsuk stated he could see the City being obligated to $1.2 million and ask the owner to come back with a counter offer. Motion by Smith to approve the boundaries of TID #14 and the TID #14 Project Plan, and recommend approval of the TID boundaries and Project Plan by the Common Council. Seconded by Blassingame. Motion carried 5-3. Nays: Bettes, Bloechl, and Borsuk. NEW BUSINESS I. SPECIAL MEETING TO BE HELD ON FEBRUARY 8TH, 2000. Mr. Kinney stated he would like to hold a special meeting on February 8, 2000 to discuss meeting procedures. He stated a notice would be sent out as to the time and place. There being no further business, the meeting adjourned. Respptfully submitted, JIN C. BLUEMKE Principal Planner JCB/vlr 10 APPENDIX E JUNE 13, 2000 f 00-257 RESOLUTION (CARRIED ��� LOST LAID OVER WITHDRAWN PURPOSE: APPROVE TAX INCREMENTAL DISTRICT NO. 14 PROJECT PLAN; CREATE TAX INCREMENTAL DISTRICT NO. 14 INITIATED BY: CITY ADMINISTRATION PLAN COMMISSION RECOMMENDATION: Approved WHEREAS, pursuant to Section 66.46, Wis. Stats. the City of Oshkosh proposes to create Tax Incremental District No. 14 - Hazel St./Mercy Medical Center Redevelopment; and WHEREAS, the City of Oshkosh Plan Commission has prepared and adopted a project plan for Tax Incremental District No. 14 - Hazel St./Mercy Medical Center 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. 14 promotes the orderly development of the City. 10) Contains an opinion of the City Attorney that the Plan complies with Section 66.46(4)(f), Wis. Stats. and 20 JUNE 13, 2000 00-257 RESOLUTION CONT'D WHEREAS, the Plan Commission has held a public hearing on the creation of TID No. 14 and the proposed boundaries thereof 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 which includes property within the District pursuant to Section 66.46, Wis. Stats.; and WHEREAS, the City of Oshkosh Plan Commission has found that: 1) Said Project Plan for Tax Incremental District No. 14 is feasible; and 2) 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 approves said Project Plan for Tax Incremental District No. 14 - Hazel St./Mercy Medical Center Redevelopment, pursuant to the provisions of Section 66.46, Wis. Stats. BE IT FURTHER RESOLVED that the Common Council of the City of Oshkosh hereby approves creation of Tax Incremental Financing District No. 14 - Hazel St./Mercy Medical Center Redevelopment, as described in the attached "Exhibit A". BE IT FURTHER RESOLVED that the improvements contemplated in TID 14 - Hazel St./Mercy Medical Center Redevelopment, are likely to significantly enhance the value of substantially all real property in TID No. 14. BE IT FURTHER RESOLVED that the value of equalized, taxable property in TID No. 14, together with all other established Tax Incremental 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 TID #14 is blighted and in need of rehabilitation or conservation within the meaning of Section 66.435(3), Wis. Stats. BE IT FURTHER RESOLVED that the project costs are consistent with the purposes for which the Tax Incremental District is created with the primary objective being the redevelopment of a blighted area. 21 "Exhibit A" TID #14 HAZEL STREET/MERCY MEDICAL CENTER REDEVELOPMENT PROJECT AREA Boundaries/Property Identification A part of Charles Barber's Replat Block 3, Barber & Madison's Addition Block 2, Carl Hennig's Addition Block 2, Hazel Street, E. Irving Avenue, Oak Street, Grove Street and Cleveland Avenue all in the Eleventh Ward, City of Oshkosh, Winnebago County, Wisconsin described as follows: Commencing at the intersection of the centerline of Cleveland Avenue and Hazel Street; thence north along the centerline of Hazel Street to the extended south line of E. Irving Avenue; thence west along the extended south line and south line of E. Irving Avenue to the northwest corner of Lot 9 Charles Barber's Replat Block 3; thence south along the west line of said Lot 9 to the southwest corner of said Lot 9; thence west along the south lines of Lots 10 and 11 of Charles Barber's Replat Block 3 to the southeast corner of Lot 12 Charles Barber's Replat Block 3; thence north along the east line and extended east line of said Lot 12 to the centerline of E. Irving Avenue; thence west along the centerline of E. Irving Avenue to the centerline of Oak Street; thence south along the centerline of Oak Street to the extended north line of Lot 5 Barber & Madison's Addition Block 2; thence west along the extended north line and north line of said Lot 5 to the northwest corner of said Lot 5; thence south along the west line of said Lot 5, 16.666 feet; thence west parallel and 16.666 feet south of the north line and extended north line of Lot 9 Barber & Madison's Addition Block 2 to the centerline of Grove Street; thence south along the centerline of Grove Street to the intersection with the centerline of Cleveland Avenue; thence east along the centerline of Cleveland Avenue to the centerline of Hazel Street also being the point of beginning. Total area within the TID is estimated at 6.27 acres. The boundaries of TID #14, and real property determined to be blighted, underutilized, or in need of rehabilitation or clearance are identified in Map 1. APPENDIX F July 11, 2000 00-01 Resolution (Carried} (3 Lost Laid Over Withdrawn Purpose: Approve Tax Increment District No. 14 WHEREAS, on June 13`h , 2000, the City of Oshkosh Common Council approved a Project Plan for development of TID # 14 and adopted TID # 14 boundaries; WHEREAS, the City has complied with all Statutory requirements relative to creation of said District; and WHEREAS, the TIF Joint Review Board has received and reviewed copies of the TID # 14 Project Plan; and WHEREAS, redevelopment of the Hazel Street Mercy Medical Center campus would not in all likelihood not occur without the financing mechanism provided through TIF; and WHEREAS, benefits provided by the planned redevelopment of TID #14 outweigh the anticipated tax increments to be paid by owners of property in the overlying taxing districts; NOW, THEREFORE, BE IT RESOLVED by the TIF Joint Review Board that TID # 14, City of Oshkosh — Hazel Street/Mercy Medical Center Redevelopment and saidroject Plan are hereby approved. /, ' A TIF Joint Review Board City of Oshkosh 23 APPENDIX G TID # 14 JOINT REVIEW BOARD MEETING MINUTES July 11th, 2000 8:00 AM, City Manager's Office Present: Susan Werblow (Chair), Board of Education; Gerald Rickman, Fox Valley Technical College; Paul Sundquist, Winnebago County Supervisor. Excused: Michael Dempsey, Public Member Others: Richard Wollangk, City Manager; Darryn Burich, Chairperson Werblow called the meeting to order at 8:15 AM. Darryn Burich informed the Board that member Dempsey was unable to attend the meeting due to another out of town meeting that he needed to attend. Mr. Burich then provided the Board with a brief description of the TID # 14 Project Plan as well as the proposed boundaries for the district. Mr. Burich also informed the Board that there was a good possibility that the TID would be expanded in the near future to encompass the Mercy Medical Center property to the south of the district. Motion by Paul Sundquist and second by Gerald Rickman to approve TID # 14. Motion carried. Respectfully submitted, � Darryn Burich Principal Planner Recording Secretary 24