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HomeMy WebLinkAbouttid-16-100-block-redevelopmentProject Plan for: City of Oshkosh TAX INCREMENTAL FINANCE DISTRICT # 16 100 Block Redevelopment Project Department of Community Development Adopted by: Plan Commission 4/17/01 Common Council 5/22/01 May 2001 Project Plan for: City of Oshkosh TAX INCREMENTAL FINANCE DISTRICT # 16 100 Block Redevelopment Project Department of Community Development Adopted by: Plan Commission 4/17/01 Common Council Pending Joint Review Board Pending May 2001 TAX INCREMENTAL DISTRICT #16 PROJECT PLAN CITY OF OSHKOSH ADOPTED BY THE PLAN COMMISSION April 17th Public Hearing ADOPTED BY THE COMMON COUNCIL Pending May 22nd Public Hearing ADOPTED BY THE JOINT REVIEW BOARD Pending June Meeting PREPARED BY: DEPARTMENT OF COMMUNITY DEVELOPMENT April 2001 TABLE OF CONTENTS PAGE INTRODUCTION 1 PURPOSE 1 PROPOSAL 2 RELATIONSHIP TO LOCAL PLANS 2 BOUNDARIES/PROPERTY IDENTIFICATION 3 NAME OF DISTRICT 5 CREATION DATE 5 PROPOSED PROJECT COSTS AND IMPROVEMENTS 5 SUMMARY AND ESTIMATE OF TIMING OF THE PROJECT COSTS 9 METHOD OF FINANCING 10 MASTER PLAN, ZONING, & OTHER CODE CONSIDERATIONS 10 ESTIMATED NON -PROJECT COSTS 10 PROMOTION OF ORDERLY DEVELOPMENT 10 ECONOMIC FEASIBILITY 11 RELOCATION 11 FINDINGS 11 TABLES TABLE 1 ESTIMATES OF PROJECT COSTS 8 TABLE 2 ESTIMATE AND TIMING OF THE PROJECT COSTS 9 TABLE 3 ESTIMATED PROJECT SCHEDULE 9 TABLE 4 ESTIMATED PROJECT INCREMENTS AND DEBT SERVICE 12 APPENDIX A MAP 1 - TID #16 Boundaries 13 MAP 2 — Proposed Improvements and Land Use 14 MAP 3 - Existing Land Use 15 MAP 4 - Existing Zoning 16 MAP 5 - Proposed Zoning 17 MAP 6 — Conditions of Real Property 18 MAP 7 — Oshkosh Centre Redevelopment Area 19 APPENDIX B — Notice of Public Hearing before the Plan Commission — April 17, 2001 20 APPENDIX C— Plan Coimirission Minutes of April 17, 2001 21 APPENDIX D — Plan Commission Staff Report 22 APPENDIX B— Attorneys Letter 25 APPENDIX F — Common Council Report to the Joint Review Board 26 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 designated Tax Incremental District (TID) by using tax revenues or increments generated from new development to pay for project improvements in the district. 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 improvements has been recovered and the debt service attributable to the district. retired, the TID.is,dissolved and all taxing jurisdictions.benefit.on the same shared basis as before the creation of the TID. If the TID has been successful, each of the taxing jurisdictions should receive a much larger share of the property taxes generated by the new development that came about as a direct result of the creation of the TID. Tax incremental financing laws provide benefits to all taxing entities, city, county, public schools, and technical college, by promoting development of new taxable value which otherwise would not occur. It provides a tool for municipalities to make reasonable levels of investment using local financing sources 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 TID. Purpose The City of Oshkosh is proposing to create Tax Incremental District #16 to help finance improvements associated with the redevelopment of the 100 block of North Main Street, located in the heart of downtown Oshkosh. The proposed project involves the construction of a minimum 65,000 square foot mixed use office and commercial/residential structure with one level of underground parking, surface parking, and related site improvements. A possibility exists that an additional two stories be constructed depending on market demand. The creation of this TID will serve to meet several community development goals not the least of which is to eliminate a blighting influence in the City's Central Business District (CBD), which generally coincides with the boundaries of the City's Downtown Business Improvement District. This TID will help to reverse a decade long slide in property values in the CBD that has seen a 31% decrease in its total assessed value, going from $33,563,600 in 1987 to $23,136,700 in 2000. Much of this decline in value can be attributed to loss in value of the old Park Plaza Mall due to a high vacancy rate resulting in less profits for mall ownership which then results in lower property tax valuation. While the mall is the most prolific example of the overall value loss, many of the properties in the district have experienced valuation losses due to the same circumstances. Proposal TID funds will be used to finance about 25% of overall project costs. The TID funds are needed to help reduce development costs which can be translated into more reasonable lease and rental rates for tenants of the proposed structure. Tentative lease rates for the Class A office space in the new building are expected to be somewhere in the range of $13 to $14 per square foot. Relationship To Local Plans Implementation of this TID is in keeping with goals and objectives identified in various local planning documents including the City of Oshkosh Comprehensive Plan, adopted pT in August 1993, as well as the Downtown Action Plan approved in October 2000. These planning documents reflect prevailing community attitudes towards how the city should develop. Business Improvement District 0 The Comprehensive Plan, a community wide planning document, has recognized that there is a need to "revitalize the central city" and target for redevelopment in those areas underutilized, blighted, or obsolete. The Comprehensive Plan specifically calls for the City to take action to meet this need in the Central City by helping to redevelop these properties. In this regard, the City has been acquiring blighted properties in the 100 block to meet this goal. The old buildings have been removed, most of the site preparation has been completed, and the block is now ready for redevelopment. The Comprehensive Plan also recommended that more Class A office space be developed. This TID will result in a minimum of 48,000 square feet of newly constructed Class A office space and help meet the goal for the retention and creation of jobs in the Central City. The other important community planning document that relates to this Project Plan is the Downtown Action Plan that was approved by the Common Council in October 2000. The Downtown Action Plan is a planning document that addresses existing conditions in the downtown and provides recommendations about what the community would like to achieve in the future and how to get there with various stated goals and objectives. In the preparation of the Downtown Action Plan, a partnership was formed between the City of Oshkosh, Oshkosh Area Community Foundation, Oshkosh Chamber of Commerce, and the Oshkosh Commercial Development Corporation, with representation from local community officials, business leaders, educators, and local citizens. Additionally, because the Plan is meant to be a community wide planning document "Town Hall" meetings were held to obtain public input in its development. Based on the ppublic input,. nine, critical focus areas were created, two. of which, to maximize economic development and to increase downtown residential development are reflected in this Project Plan. Another planning document that relates to the creation of this TID is the City's 2000-2004 Consolidated Plan, Because Oshkosh is an entitlement community under the Community Development Act of 1974, the City receives an annual block grant allocation as part of the Community Development Block Grant (CDBG) program. To utilize these funds, each entitlement community must prepare a consolidated plan that identifies various community development and housing related needs and identifies ways to meet those needs, which includes the use of CDBG funds. The main objective of the block grant program is to benefit persons of low to moderate income and the rules of the program identify eligible uses of these funds to meet the objective. One eligible activity is the creation of employment opportunities for low to moderate income persons. In implementing this Project Plan, the development group is proposing to create a minimum of 6 new jobs in the building and make them available to persons of low to moderate income that will then fulfill CDBG regulations regarding the disposition of real property acquired using CDBG funds. Implementation of this TID is in keeping with the aforementioned planning documents that have been adopted by the community through various administrative meetings and public hearings. Boundaries/Property Identification A part of N. Main Street, Otter Avenue, State Street, Ceape Avenue, and L.M. Miller's First Addition, Block 21, all in the 8th Ward, City of Oshkosh, Winnebago County, Wisconsin, described as follows: Commencing at the intersection of the centerline of N. Main Street and the centerline of Otter Avenue; thence east along the centerline of Otter Avenue to the centerline of State Street; thence south along the centerline of State Street to the centerline of Ceape Avenue; thence west along the centerline of Ceape Avenue to the centerline of N. Main Street; thence north along the centerline of N. Main Street to the centerline of Otter Avenue, also being the point of beginning. Area within the TID is estimated at 1.258 acres (54,830 square feet). Boundaries of TID #16, and real property determined to be blighted, underutilized, or in need of rehabilitation are identified in Map 1. Map#1 1 TID#16 Boundaries /1 / PEARL AVE til t) f r .... .-.--... Z . I ...f &y-'; ...... c. h t --- / // 4 @4/2001) Name Of The District The name of the TID shall be City of Oshkosh Tax Incremental District #16 (TID #16) -100 Block Redevelopment Project. Creation Date The date of creation for the capture of all new taxable value created within TID #16 shall be January 1, 2001. The value established as of this date shall be used as the base in computing any increments that will accrue in the tax base for the district. Proposed Project Costs And Improvements Costs related to implementing this project plan are, attributable to those costs that involve construction of the new building that will include office, commercial, and residential space as well as underground parking for building tenants. The development group will construct a minimum 4 story structure containing approximately 65,000 square feet of space with an additional 16,000 feet of underground parking. The concept rendering below, looking to the east along North Main Street and Otter Avenue, shows how the building should look once completed. The first three stories of the structure would be devoted to office space with one or two ground floorrestaurants or shops. Approximately 11 or 12 residential units would be constructed on the fourth floor with varying floor plan layouts including two to three bedrooms per unit with balconies. A rooftop garden may also be constructed as part of the project. Additionally, the development group has left open the possibility of adding up to an additional two stories of either commercial and/or residential space depending on demand. Project costs are estimated at about $7,308,400 for the four floor option. Each additional story would add about $1.5 million to overall project costs bringing the improvement value of a 6 story structure to over $10 million. Either option selected will prove a significant increase in property values for the area. The diagram below shows a site plan of how the building is proposed to be situated on the block. The building will be predominantly laid out in the northwest portion of the block along North Main Street and Otter Avenue. Surface parking will be on the south and east sides of the block. The underground parking entrance will be in the north half of the block off State Street. ............._ TED #16 Proposed Land Use and On Site Improvements NORTH MAJN STREET @0® app lJ S C © w , .,n.. e Pe tri, o •@t® e ® e U STgrE S7k� (LILOUI( The site plan shows that angle parking is proposed in order to accommodate more parking spaces to support the development. Landscaping improvements will be placed along the parking lot perimeter as well as the building itself. The diagram below shows how the residential units may be configured. The diagram shows that 2 and 3 bedroom units can be accommodated, all with individual balconies. The development group has left open the possibility that the residential units could be "custom" designed to meet prospective tenant needs. TID .#16 Residential Dwellings Units Layout TID funds will be used to contribute approximately 25% of overall project costs with an estimated City contribution of $1,827,100 for the four story option and $2,622,400 for the six story option. Whichever option is selected, the public funding is necessary to offset overall project costs and allow more "reasonable" lease rates to be charged in the new structure. While "public funding" is being used to offset costs in a "private development," economic development benefits derived from this project will flow to the entire community in the form of a significant amount of additional tax base, job creation, elimination of blighting conditions, and increased residential units in the downtown. It is anticipated that all costs will be incurred within the TID during its first two years, but costs could be incurred over the seven year period allowed by state statute. 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 is made. Detailed cost estimates for both the 4 story option and the 6 story option are presented in Table I below. Table I Estimated Project Costs 4 and 6 Story Options Activity 4 Story Building 6 Story Building Office/Commercial Space Construction $3,916,800 $3,916,800 Apartment Space $1,305,600 $3,916,800 Underground Parking Level and Site Work $765,000 $765,000 Architectural and Engineering $359,000 $520,000 Development Fees $534,000 $800,000 Construction Interest $158,000 $225,000 Legal $25,000 $25,000 Appraisal $7,000 $7,000 Insurance $7,000 $10,000 Title and Recording $10,000 $14,000 Loan Fees $56,000 $80,000 Leasing Fees $60,000 $60,000 Holding Costs $105,000 $150,000 Total Estimated Costs without Financing $7,308,400 $10,489,600 25% TIF Contribution $1,827,100 $2,622,400 Estimated Finance Costs on City Contribution $1,358,798 $1,950,252 Estimated TIF Contribution with Financing $3,185,898 $4,572,652 City Administrative, Engineering, and Planning Costs $75,000 $75,000 Future Streetscaping $100,000 $100,000 Total Estimated TID Costs $3,360,898 $4,747,652 Administrative related costs include city personnel, consultant services, and supplies and materials used in conjunction with planning and implementation of this project plan. Costs related to "preplanning" of this TID and paid for from the general city accounts and department budgets are eligible for reimbursement through TID increments per Wisconsin Statute Section 66.46 (2)(f). Streetscaping has been included to give the City some flexibility to implement these activities if needed at a future date when increment is available. Summary of and Estimate of Timing of the Project Costs Table II 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 this Project Plan. Table II Estimate and Timing of Project Costs TID Eligible Activity Year 4 Story 6 Story Building Construction/Site Development and Related Costs 2001-2003 $1,827;100 $2,622,400 City Administrative/Engineering 2001-2008 $75,000 $75,000 Streetsca in 2001-2008 $100,000 $100,000 Total Project Costs Without Financing $2,002,100 $2,797,400 TID Eligible Costs to be Financed 2001-2003 $1,827,100 $2,622,400 Estimated TID Costs paid back through increment 2001-2008 $1,827,100 $2,622,400 Financing Cost 2001-2021 $1,358,798 $1,950,252 Total Estimate of TID Costs $3,260,898 $4,572,652 Table III shows the estimated time frame over which the project will be constructed. Table III Estimated Development Schedule Task Task Name Estimated Date(s) 1 Lease up at least 40% of space to obtain financing April through June 01 2 Close on property with the City June 6, 01 3 Final Plan Development April through August 01 4 Start Construction September 01 5 6 Substantial completion of first floor First floor occupancy July 02 August 02 7 Substantial completion of floors 2-4 November 02 8 Occupancy of floors 2-4 December 02 9 Substantial completion of floors 5-6 February 03 10 Occupancy of floors 5-6 March 03 11 Project Completion March 03 The development group is currently seeking prospective tenants for the commercial and office space in the structure. In order to obtain project financing, the development group must pre -lease 40% of the commercial and office space in the structure. The development group is hoping to move as expeditiously as possible in order to have space available for prospective major tenant in the building. Tasks 9 and 10 will only occur if enough space is demanded to warrant construction of the extra floors. 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 a loan 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 development group to cover any shortfalls. Additionally, because the first debt service payment will be due prior to the City having received any property taxes on the development, the development group will be required to make the first 'debt service payment on the City financing. 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 and 2000 Downtown Action Plan, as approved by the Plan Commission and City Council. Existing land uses in the TID are shown on Map 3, and proposed land use and on site improvements are shown on Map 2 in the appendix. No changes in the City's Official Map, Zoning Ordinance, Building Codes or any other City Ordinances appear to be necessary to implement the Project Plan. The existing zoning of the TID is shown on Map 4, and the proposed zoning is illustrated on Map 5 in the appendix. Estimated Non -Project Costs There are no estimated non -project costs associated with implementing this project plan. Promotion of Orderly Development Implementation of this Project Plan promotes orderly development by redeveloping a prime piece of land in the heart of the Central Business District in keeping with the stated goals and objectives of the Comprehensive Plan and Downtown Action Plan relative to this property. The project will help to increase property tax values in the district by adding $7 million - $10 million worth of improvements to the area. As was demonstrated earlier, property values of the central business district have seen a dramatic decline in assessed value in recent years. Much of this decline is due to the fact that many businesses, commercial and retail, have relocated to other areas of the City or to other communities seeking improved Class A office space. This has resulted in rental incomes generated from the properties declining which in turn result in lower property assessments that generate less property tax collections in the area. Use of TIF for this redevelopment project will add at least 48,000 square feet of new Class A office space and 16,000 square feet of residential living space to the Central Business District. Involvement of TID in this project represents a partnership between the City, a private development group, and the other taxing 10 jurisdictions, and shows the City's commitment to continued redevelopment of the downtown. 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 Economic feasibility of this TID is based on the development group's implementation of its plans to construct the 4 to 6 story structure on the block. Overall project costs are estimated at between $7.3 million for the 4 story structure and $10.5 million for the 6 story structure. The project will generate $3.4 to $5 millionjin tax,increments over -the life of the TID depending on the project undertaken. TID increments will then be used to payoff City associated debt service for implementing this project plan. The attached increment table shows estimated project increments and debt service for the 4 and 6 story options. The district is projected to have an equalized value of approximately $7 to $10 million dollars when costs are paid in full and the TID is terminated at the end of its maximum 23 -year life span. Relocation No displacement or relocation of persons or businesses is needed or will be undertaken in the 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. Scats.. • Redevelopment within the TID resulting in the construction of office commercial/residential structure containing approximately 65,000 to 97,920 square feet of Class A office space will have a significant positive impact on the value of all real property in the District and assist in stabilizing property values within the central business district; • Implementation of this Project Plan is consistent with the City's 1993 Comprehensive Plan and its associated amendments and additions; • 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. For January 1, 2001 equalized values, the base value of TID #16 is estimated at $165,500. The equalized value of taxable property in TID #16 plus all existing districts does not exceed 7 percent of the total equalized value of taxable property within the City of Oshkosh. January 1, 2000 equalized value of all existing TID's including the estimated value of proposed TID #16 is $139 million or 5.7 percent of the estimated $2,432,030,100 total equalized value of the City at the time of TID #16's creation. 11 sa »» od wwww fi n '3 mm6^6Rm xa 003('1v MmO'eato0) n'4mn g aim ax ahm�m��rMsoe�g dr wwwwwwwwwwwww- ww wwwwwwwwwwwwwww nm^ �axaao o�a�saa �m M�mn?R�-mcnocaooa »wwwwwwww»»�» »�»#� s o^WSW n^ mnzs� �& E0 » ooh w rrw �� www w tea -��agym ow » gas's �� ��a�amo � a a sum xsss „a aha mwm uu ww �n www w wwwwwwwwww wwwwwwww ww wwwwww wwwwwwww -n�s��.n gas wgaonm ft� 5 c ��-. V! zn w »wwww in Ya dl 0 o at ^ aaa- ° � w� OILt„0 VI 000 0 00 o »wwww«"aaaw»oas�a -------------- wwwwwwwwwwwwwwwwwwww------------------------ E wwwwww»»wwwwwwwwwwwww A0 ��maswos s sssemms s E E%m nwf,NN7a�rrrnwnrnnNrnm rAf'. f', YlNr«rrnr�rww�n tea a4s.nIe W s wm a"sm� t -o0 $e �m^3� wwwwwwwwww»wwwtQ)I*flN 81! www Co g sm mo ---------------------------------- a�§ „ miIn ss oB o� soosam g 2 � m w �M M nn���n oEatt smmr�msmwo���mw»m�msag a <� d wFw o $ mavdm;: :$mmmw30mw E gE > arnnviD eR��ee�SSCq - --J OtJ `�mAm Rm .'^--$mA0 Bum fwd a� wwwwwwwwwwwwwwwwwww gag »wwwwwwwwwwwww.-.- g o '-U,# m ------------------—- w # � Fo ��� ������a� g 12 APPENDIX A MAPS 3nN3ny 213110 8 45� IL ii 0 ceo a Cu � Z I 3nN34v 3db'3c) 14 TID #16 Oshkosh Centre Redevelopment Area Fl 19 (042001) 11 APPENDIX B NOTICE OF PUBLIC HEARING BEFORE THE CITY OF OSHKOSH PLAN COMMISSION TUESDAY, APRIL 17, 2001 4:00 PM, Room 404 City Hall, Oshkosh, WI The Plan Commission will hear public comments on the designation of a Tax Incremental Financing District. TheProject Plan for the proposed district will also be considered at the public hearing. Interested persons are- encouraged to attend. The draft Project Plan will be available for review on or about April 11, 2001. For information, call the City of Oshkosh Planning Services Division at 920-236-5055 between 8 am — 4:30 pm, Monday thru Friday. The district shall be named: Tax Incremental Financing District #16 100 Block Redevelopment Project. The general location of the proposed TID is: south of Otter Ave, west of State Street, north of Ceape Ave, and west of Main Street. Legal Description: A part of N. Main Street, Otter Avenue, State Street, Ceape Avenue, and L.M. Miller's First Addition, Block 21, all in the 8th Ward, City of Oshkosh, Winnebago County, Wisconsin, described as follows: Commencing at the intersection of the centerline of N. Main Street and the centerline of Otter Avenue; thence east along the centerline of Otter Avenue to the centerline of State Street; thence south along the centerline of State Street to the centerline of Ceape Avenue; thence west along the centerline of Ceape Avenue to the centerline of N. Main Street; thence north along the centerline of N. Main Street to the centerline of Otter Avenue, also being the point of beginning. PUBLISHED: April 6, and April 10, 2001 20 APPENDIX C PLAN COMMISSION MINUTES OF APRIL 17, 2001 VHI: PUBLIC HEARING ON PROPOSED CREATION OF TAX INCREMENTAL FINANCING DISTRICT # 16 100 BLOCK REDEVELOPMENT PROJECT: DESIGNATION OF BOUNDARIES AND APPROVAL OF PROJECT PLAN Prior to taking action on Tax Incremental District (TID) # 16 and the designation of boundaries for said Tax Incremental Financing District, the Plan Commission is to hold a public hearing and take comments concerning the proposed creation of the TID. This public hearing is required as part of the formal process the city must follow in the creation of a TID. Chairman Borsuk opened the public hearing portion of the meeting at this time. Mr. Burich introduced the item outlining the uses and costs of a minimum 4 -story structure proposed on the 100 block of N. Main Street. Mr. Ruppenthal questioned if the parking lot would be owned by the City. Mr. Burich replied the parking on site will be owned by the developers, and the street parking will be made available for -long-term permit parking. Chairman Borsuk closed the public hearing portion of the meeting at this time. Motion by Ruppenthal for approval of the boundaries of TID #16 and the TID #16 Project Plan. Seconded by Timmerman. Motion carried 5-0. 21 APPENDIX D STAFF REPORT PLAN COMMISSION APRIL 17, 2001 ITEM VIII: PUBLIC HEARING ON PROPOSED CREATION OF TAX INCREMENTAL FINANCING DISTRICT # 16 100 BLOCK REDEVELOPMENT PROJECT: DESIGNATION OF BOUNDARIES AND APPROVAL OF PROJECT PLAN - City Administration Prior to taking action on Tax Incremental District (TID) # 16 and the designation of boundaries for said Tax Incremental Financing District, the Plan Commission is to hold a public hearing and take comments concerning the proposed creation of the TID. This public hearing is required as part of the formal process the city must follow in the creation of a TID. GENERAL DESCRIPTION/BACKGROUND Recognizing a need to rehabilitate the downtown, in 1980, the City created the Oshkosh Centre Redevelopment Project Plan to redevelop blighted properties along the riverfront south of Ceape from about one block west of North Main Street to Broad Street. This redevelopment area was amended in 1985 to include the 100 block of North Main Street and subsequently the City commenced acquisition, relocation and clearance activities on the block. In 2000, the City completed the removal of structures from the block and the remediation of environmental issues, putting the block in a development ready state. It is proposed that the city create a TID around the 100 Block of North Main Street. Creation of the TID will allow for construction of a minimum 4 story structure with approximately 65,000 square feet mixed office/commerciallresidential uses on the block with an additional 16,000 square feet of an underground parking level with approximately 45 parking stalls. Project costs for the 4 story structure are estimated at $7.3 million. Additionally, the development group has left open the possibility that an additional two stories of commercial and/or residential usage may be constructed depending on demand. Project costs for the 6 story structure are estimated at $10.5 million. On Tuesday, April 10, 2001, the Oshkosh Common Council approved a resolution allowing City officials to enter into a development agreement with members of 100 Block LLC to redevelop the property with the minimum 4 story mixed use structure and underground parking. 22 Tax Incremental Financing Law, §66.46 of Wisconsin Statutes, provides a mechanism that enables cities and villages to rehabilitate blighted areas, improve business areas, and/or develop industrial sites. The intent of the law is to defray the cost of improvements in a Tax Incremental Financing District by using incremental tax revenue generated by the new development. 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. Since the law was enacted, the City of Oshkosh has created fourteen TIDs, three of which have been dissolved. The general area surrounding the proposed TID is characterized by commercial uses with some upper floor residential units. ANALYSIS The City has long recognized the need to redevelop the downtown and in particular the 100 Block and surrounding area. The previously mentioned Oshkosh Centre Redevelopment Plan was created for this purpose, as well as a goal stated in the City's 1993 Comprehensive Plan and the recently adopted Downtown Action Plan. Redeveloping blighted properties, increasing the amount of Class A office space, and creating more residential units downtown are all important stated goals of the plans. Approval of this TID Project Plan and boundaries will help meet these goals and significantly enhance the downtown as well as prove to be a major step forward in revitalization of the area. The rendering below shows what the minimum project would look like when completed. The rendering above shows the 65,000 square foot four story mixed use structure. The first three floors will be devoted to office and commercial usage with a possibility for one or two ground floor restaurants. 23 Approximately 11 or 12 residential units of varying configurations will be constructed on the fourth floor, all with individual balconies. A roof top garden to be used by building residents has also been discussed. The site plan below shows how the development would be configured on the block. • TID #16 Proposed Land Use and On Site Improvements NORTH -MAIN STREET w,Ian,. 0 O@ @ e OHO@ V en.. w Ll U ...n.., e > 0 S i srgT� STN (JIAWI) The TID # 16 Project Plan identifies proposed project costs and improvements including an economic feasibility analysis of the proposed TID based on anticipated redevelopment value. The development group has agreed to provide a guarantee to cover any shortfalls in the debt service payments of the district if the value increment is not sufficiently high enough to cover financed debt service. Additionally, the development group has agreed to make the City's first year debt service payment due to the fact that no tax increment will be available before the first payment is due. RECOMMENDATIONS/CONDITIONS The Department of Community Development asks that the Plan Commission approve the boundaries of TID # 16 and the TID # 16 Project Plan, and recommend approval of the TID boundaries and Project Plan by the Common Council. 24 CITY HALL 215 Church Avenue APPENDIX E PO. Box 1130 OShko554903-Wisconsin 1130 City of Oshkosh OfHKOIH City Attorney's Office Phone: (920) 236.5115 Fax: (920) 236.5090 http;//www.ci.oshkosh.wi.us April 17, 2001 Mr. Jackson R. Kinney Director of Community Development City of Oshkosh 215 Church Avenue Oshkosh, WI 54903-1130 Dear Mr. Kinney I have reviewed the project plan for City of Oshkosh Tax Increment District 1116 — 100 Block Redevelopment, 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 66.1105(4)(f), Wisconsin Statutes. Sincerely, CITY OF OSHKOSH War n P. Kraft City Attorney 25 APPENDIX F COMMON COUNCIL REPORT TO THE JOINT REVIEW BOARD Section 66.1105, 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 #16 will be in existence for the twenty-three years allowed by Statute. Specific projects that may be undertaken in TID #16 and their estimated costs are listed in Tables I and II of the Project Plan. 2. The estimated amount of tax increments to be created over the life of TID #16 is shown on Table 4 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 to be between $7 to $10 million based scope of the project to be undertaken. Project costs in I above are associated with redeveloping the 100 block property of North Main Street. TID funds will be used to help finance building improvements, financing, capitalization of interest, and for city administration of the proposed district. The project costs incurred by the TID are necessary for redevelopment of the block. If the property owner had to pay for all project costs, it is unlikely the project would proceed, the property may remain vacant for an extended period of time and not return to productive use on the property tax rolls. Creation of this TID is in conformity with the city's 1993 Comprehensive Plan and its related amendments and additions including the Downtown Action Plan. The share of projected tax increments to be paid by the overlying taxing jurisdiction for 2001 is estimated to be as follows: School District 37.01%, City 33.16%, County 21.17%, FVTC 7.81%, State .85%. 6. 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, blighted vacant tax exempt property will be developed and owned privately and be returned to the tax rolls, which the taxing jurisdictions will eventually receive benefits from. Second, the redeveloped property should help to stabilize or increase property values in the area, outside of the TID, which benefits all participating taxing jurisdictions. 26 I e .. 1 ■ 0 IN r