HomeMy WebLinkAbouttid-29-project-plan-final
June 7, 2016
Project Plan
Tax Incremental District No. 29
Morgan Redevelopment
Organizational Joint Review Board Meeting Held: June 21, 2016
Public Hearing Held: June 21, 2016
Consideration for Approval by Plan Commission: June 21, 2016
Consideration for Approval by the Joint Review Board: August 2, 2016
Consideration for Adoption by Common Council: July 12, 2016
Project Plan
Tax Incremental District No. 29
City of Oshkosh Officials
Common Council
Steve Cummings Mayor
Debra L. Allison-Aasby Deputy Mayor
Caroline Panske Council Member
Lori Palmeri Council Member
Thomas R. Pech, Jr. Council Member
Steve Herman Council Member
Ben Stepanek Council Member
City Staff
Mark Rohloff City Manager
Allen Davis Community Development Director
Darryn Burich Planning Director
Trena Larson Finance Director
Pamela Ubrig City Clerk
Lynn Lorenson City Attorney
Plan Commission
David Borsuk Donna Lohry
Edward Bowen Karl Nollenberger
Thomas Fojtik, Chair Kathleen Propp
Ben Krumenauer Jeffrey Thoms
John Hinz Robert Vajgrt
Joint Review Board
Mark Rohloff, City Manager City Representative
Mark Harris, County Executive Winnebago County
Melissa Kohn, Director – Oshkosh Campus Fox Valley Technical College District
Allison Garner, School Board President Oshkosh Area School District
Bill Castle Public Member
Table of Contents
EXECUTIVE SUMMARY ........................................................................................................................................... 1
TYPE AND GENERAL DESCRIPTION OF DISTRICT ........................................................................................ 4
PRELIMINARY MAP OF PROPOSED DISTRICT BOUNDARY ........................................................................ 5
MAP SHOWING EXISTING USES AND CONDITIONS ...................................................................................... 6
PRELIMINARY PARCEL LIST AND ANALYSIS ................................................................................................... 7
EQUALIZED VALUE TEST ....................................................................................................................................... 8
STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PUBLIC WORKS AND OTHER
PROJECTS .................................................................................................................................................................. 9
MAP SHOWING PROPOSED IMPROVEMENTS AND USES ......................................................................... 14
DETAILED LIST OF PROJECT COSTS .............................................................................................................. 15
ECONOMIC FEASIBILITY STUDY, FINANCING METHODS, AND THE TIME WHEN COSTS OR
MONETARY OBLIGATIONS RELATED ARE TO BE INCURRED .................................................................. 17
ANNEXED PROPERTY........................................................................................................................................... 22
ESTIMATE OF PROPERTY TO BE DEVOTED TO RETAIL BUSINESS ...................................................... 22
PROPOSED ZONING ORDINANCE CHANGES ................................................................................................ 22
PROPOSED CHANGES IN MASTER PLAN, MAP, BUILDING CODES AND CITY OF OSHKOSH
ORDINANCES .......................................................................................................................................................... 22
RELOCATION ........................................................................................................................................................... 22
ORDERLY DEVELOPMENT OF THE CITY OF OSHKOSH ............................................................................. 23
LIST OF ESTIMATED NON-PROJECT COSTS ................................................................................................. 23
OPINION OF ATTORNEY FOR THE CITY OF OSHKOSH ADVISING WHETHER THE PLAN IS
COMPLETE AND COMPLIES WITH WISCONSIN STATUTES 66.1105 ...................................................... 24
CALCULATION OF THE SHARE OF PROJECTED TAX INCREMENTS ESTIMATED TO BE PAID BY
THE OWNERS OF PROPERTY IN THE OVERLYING TAXING JURISDICTIONS ...................................... 25
COMMON COUNCIL CREATION RESOLUTION OF JULY 12, 2016......................................................89
PLAN COMMISSION PUBLIC HEARING/MINUTES OF JUNE 21, 2016.................................................81
JOINT REVIEW BOARD RESOLUTION OF AUGUST 2,2016 .................................................................92
_____________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 1 June 22, 2016
SECTION 1:
Executive Summary
Description of District
Type of District, Size and Location
Tax Incremental District No. 29 (the “TID” or “District”) is a proposed 36 acre blighted area district
located in downtown Oshkosh on the south side of the Fox River in the general area of Oregon Street and
Sixth Avenue. The proposed District, referred to as the “Morgan District” will be created to facilitate a
proposed 27 acre $55 million redevelopment project consisting of residential, commercial and retail uses.
The City owns an additional 8.9 acres within the proposed District with redevelopment potential. A map
of the proposed District boundaries is located in Section 3 of this plan.
Estimated Total Project Expenditures
The City anticipates making total Project Cost expenditures of approximately $38.8 million to facilitate
redevelopment within the District. This total is comprised of $26.3 million in potential “pay as you go”
development incentives, $5.7 million for riverwalk improvements and $6.8 million in street and other
public infrastructure improvements. The projections included in this plan indicate that while the District
will be able to fully fund the proposed development incentives, it will only be able to contribute
approximately $10 million towards the $12.5 million in costs for the riverwalk and other public
improvements which do not include the costs of related debt service. As such, it is expected that the City
will need to contribute other funds through its normal capital improvements planning to fully implement
the Projects outlined in the Plan.
Economic Development
As a result of the creation of this District, the City projects that additional land and improvements value
of approximately $57.7 million will be created as a result of redevelopment projects. This additional value
will be a direct result of the improvements made and projects undertaken within the District. A table
detailing assumptions as to the timing of new development and redevelopment and associated values is
located in Section 10 of this Plan. In addition, creation of the District is expected to result in other
economic benefits as detailed in the Summary of Findings hereafter.
Expected Termination of District
Based on the Economic Feasibility Study located in Section 10 of this plan, this District would be
expected to remain open for its 27 year maximum statutory life. As noted in the summary of Estimated
Total Project Expenditures above, the District is not expected to fully fund all related public
improvements. This could change if valuations exceed projections, or if properties within the area gain in
value as a result of economic appreciation which this Plan does not assume.
Summary of Findings
As required by Wisconsin Statutes Section 66.1105, and as documented in this Project Plan and the
exhibits contained and referenced herein, the following findings are made:
1. That “but for” the creation of this District, the development projected to occur as detailed in
this Project Plan: 1) would not occur; or 2) would not occur in the manner, at the values, or
within the timeframe desired by the City. In making this determination, the City has considered
the following information:
_____________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 2 June 22, 2016
The economics associated with redevelopment projects which typically involve additional costs
related to demolition, site preparation, installation of necessary public and private infrastructure,
provision of adequate off-street parking, and other similar costs. As such, the City believes that
these sites are not likely to be redeveloped under normal market conditions without public
investment and participation.
The lack of other financial resources to pay the costs of the public infrastructure improvements
and other related expenditures that will be required to facilitate redevelopment including:
development incentive payments; repair or replacement of pavement surfaces; curb and gutter;
sidewalks; and repair or replacement of underlying utilities including sanitary sewer, storm sewer
and water main. Without the use of TIF to pay for or partially offset these costs, the City will not
undertake these improvements and expenditures.
2. The economic benefits of the Tax Incremental District, as measured by increased employment,
business and personal income, and property value, are sufficient to compensate for the cost of
the improvements. In making this determination, the City has considered the following information:
As demonstrated in the Economic Feasibility Section of this Project Plan, the tax increments
projected to be collected are sufficient to pay for the cost of the development incentives needed to
facilitate the desired redevelopment, and to also pay for a substantial portion of the public
improvements the City expects to make within the area.
The redevelopment expected to occur within the District will create approximately 400 residential
units, providing a variety of housing opportunities for City residents. Commercial and retail uses
to be located within the District will provide employment opportunities and services to residents
living within the District and the larger downtown area.
3. The benefits of the proposal outweigh the anticipated tax increments to be paid by the owners
of property in the overlying taxing jurisdictions.
If approved, the District’s creation would become effective for valuation purposes as of January
1, 2016. As of this date, the values of all existing real and personal property within the District
would be frozen and the property taxes collected on this base value would continue to be
distributed amongst the various taxing entities as they currently are now. Taxes levied on any
additional value established within the District due to new construction, renovation or
appreciation of property values occurring after January 1, 2016 would be collected by the TID
and used to repay the costs of TIF-eligible projects undertaken within the District.
Since the development expected to occur is unlikely to take place or in the same manner without
the use of TIF (see Finding #1) and since the District will generate economic benefits that are
more than sufficient to compensate for the cost of the improvements (see Finding #2), the City
reasonably concludes that the overall benefits of the District outweigh the anticipated tax
increments to be paid by the owners of property in the overlying taxing jurisdictions. It is further
concluded that since the “but for” test is satisfied, there would, in fact, be no foregone tax
increments to be paid in the event the District is not created. As required by Section
66.1105(4)(i)4., a calculation of the share of projected tax increments estimated to be paid by the
owners of property in the overlying taxing jurisdictions has been made and can be found in
Appendix A of this plan.
_____________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 3 June 22, 2016
4. Not less than 50% by area of the real property within the District is a blighted area within the
meaning of Wisconsin Statutes Section 66.1105(2)(ae)1.
5. Based upon the finding stated above the District is declared to be a Blighted Area District based
on the identification and classification of the property included within the District.
6. The project costs relate directly to promoting the elimination of blight consistent with the
purpose for which the District is created.
7. The improvement of such area is likely to enhance significantly the value of substantially all of
the other real property in the District.
8. The equalized value of taxable property of the District, plus the value increment of all existing
tax incremental districts within the City, does not exceed 12% of the total equalized value of
taxable property within the City.
9. The City estimates that less than 35% of the territory within the District will be devoted to
retail business at the end of the District’s maximum expenditure period, pursuant to Wisconsin
Statutes Sections 66.1105(5)(b) and 66.1105(6)(am)1.
10. The Project Plan for the District in the City is feasible, and is in conformity with the master
plan of the City.
_____________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 4 June 22, 2016
SECTION 2:
Type and General Description of District
The District, comprising 36 acres in downtown Oshkosh is being created by the City under the authority
provided by Wisconsin Statute Section 66.1105 and will be classified as a “blighted area” district based
on a finding that at least 50%, by area, of the real property within the District meets that condition as
defined in Wisconsin Statute Section 66.1105(2)(ae)1. The preliminary parcel list included in Section 5 to
this Plan identifies those parcels meeting those criteria. Collectively, these parcels represent 73.64% of
the total TID area.
Creation of the District is intended to facilitate achievement of the City’s project goals and desired
outcomes for this area by providing the means to recover a majority of the costs of the public investment
that will need to be made in the area, and to incentivize developers to make the necessary private
investment. A preliminary map of the proposed District boundary can be found in Section 3 of this Plan.
_________________________________________________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 5 June 22, 2016
SECTION 3:
Preliminary Map of Proposed District Boundary
_________________________________________________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 6 June 22, 2016
SECTION 4:
Map Showing Existing Uses and Conditions
_______________________________________________________________________________________________________________________________________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 7 June 22, 2016
SECTION 5:
Preliminary Parcel List and Analysis
City of Oshkosh, Wisconsin
Tax Increment District # 29
Base Property Information
Map
Ref # Parcel Number Street Address Owner Acreage1
Part of Existing
TID? …Indicate
TID #
Land Imp PP Total
Equalized
Value
Ratio3 Land Imp PP Total Blighted Area4
1 03‐0001‐0200 0 OREGON ST CITY OF OSHKOSH REDEVELOPMENT AUTH 0.2992 TID 20 ‐ ‐ ‐ ‐ 100.13%‐ ‐ ‐ ‐ 0.2992 Morgan District Redevelopment Project
2 03‐0001‐0100 0 OREGON ST SIX RIVERS INVESTMENTS LLC 3.4708 TID 20 457,700 ‐ ‐ 457,700 100.13% 457,106 ‐ ‐ 457,106 3.4708 Morgan District Redevelopment Project
3 09‐0001‐0000 421 OREGON ST SIX RIVERS INVESTMENTS LLC 21.3846 TID 20 215,100 53,100 ‐ 268,200 100.13% 214,821 53,031 ‐ 267,852 21.3846 Morgan District Redevelopment Project
4 09‐0001‐0100 0 W 4TH AVE SIX RIVERS INVESTMENTS LLC 1.8410 TID 20 118,600 ‐ ‐ 118,600 100.13% 118,446 ‐ ‐ 118,446 1.8410 Morgan District Redevelopment Project
5 09‐0245‐0000 322 W 6TH AVE SHERRIANE AIROLA 0.1435 13,000 46,100 ‐ 59,100 100.13% 12,983 46,040 ‐ 59,023 In Need of Rehabilitation
6 09‐0244‐0000 326 W 6TH AVE JOEL R/MOLLY A NOVOTNY 0.1578 13,700 57,200 ‐ 70,900 100.13% 13,682 57,126 ‐ 70,808 In Need of Rehabilitation
7 09‐0243‐0000 332 W 6TH AVE RONALD D FRANKLIN SR 0.1263 11,500 71,900 ‐ 83,400 100.13% 11,485 71,807 ‐ 83,292 In Need of Rehabilitation
8 09‐0242‐0000 336 W 6TH AVE PERPETUA H MOLASH 0.1435 13,000 73,200 ‐ 86,200 100.13% 12,983 73,105 ‐ 86,088 In Need of Rehabilitation
9 09‐0241‐0000 342 W 6TH AVE 457 W 12TH AVE LLC 0.1435 13,000 73,000 ‐ 86,000 100.13% 12,983 72,905 ‐ 85,888 In Need of Rehabilitation
10 09‐0240‐0000 346 W 6TH AVE MEE VANG 0.1435 13,000 22,000 ‐ 35,000 100.13% 12,983 21,971 ‐ 34,955 In Need of Rehabilitation
11 09‐0239‐0000 0 IOWA ST CITY OF OSHKOSH 0.0631 TID 20 ‐ ‐ ‐ ‐ 100.13%‐ ‐ ‐ ‐ 0.0631 Morgan District Redevelopment Project
12 09‐0784‐0101 362 MICHIGAN ST CITY OF OSHKOSH REDEVELOPMENT AUTH 1.8363 TID 20 ‐ ‐ ‐ ‐ 100.13%‐ ‐ ‐ ‐ Future Redevelopment Site
13 09‐0497‐0300 0 MICHIGAN ST CITY OF OSHKOSH 5.0000 TID 20 ‐ ‐ ‐ ‐ 100.13%‐ ‐ ‐ ‐ Future Redevelopment Site
14 06‐0006‐0101 0 W 4TH AVE CITY OF OSHKOSH 1.9920 TID 20 ‐ ‐ ‐ ‐ 100.13%‐ ‐ ‐ ‐ Future Redevelopment Site
Total Acreage 36.75 868,600 396,500 ‐ 1,265,100 867,472 395,985 0 27.0587
73.64%
Estimated Base Value 1,263,458
NOTES:
1Parcel acreages obtained on 2‐10‐2016 from City property records as listed at http://opa.ci.oshkosh.wi.us/pt/search/commonsearch.aspx?mode=owner.
2Land and improvements value as of 1‐1‐2015 taken from D. Burich e‐mail dated 2‐9‐2016.
3Equalized value ratio taken from Wisconsin Department of Revenue Preliminary Major Class Comparison Report for 2015 posted at https://www.revenue.wi.gov/equ/mclass/index.html.
4Parcels noted consist of land upon which buildings or structures have been demolished and which because of obsolete platting, diversity of ownership, deteriorating of structures or site improvements, or otherwise, substantially impairs or arrests the sound growth of the community.
Assessment Information2 Equalized ValueProperty Information District Classification
_____________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 8 June 22, 2016
SECTION 6:
Equalized Value Test
The following calculations demonstrate that the City expects to be in compliance with Wisconsin Statutes
Section.66.1105(4)(gm)4.c. which requires that the equalized value of the taxable property in the
proposed District, plus the value increment of all existing tax incremental districts, does not exceed 12%
of the total equalized value of taxable property within the City. The equalized value of the increment of
existing tax incremental districts within the City, plus the base value of the proposed District, totals
$245,544,700. This value is less than the maximum of $449,237,400 in equalized value that is permitted
for the City of Oshkosh. The City therefore anticipates that it will be in compliance with the statutory
equalized valuation test and may proceed with creation of this District.
District Creation Date 7/12/2016
Valuation Data Percent Valuation Data
Currently Available Change Est. Creation Date
2015
Total EV (TID In) 3,743,645,000 3,743,645,000
12% Test 449,237,400 449,237,400
Increment of Existing TIDs
140,981,300 140,981,300
568,200 568,200
266,200 266,200
3,972,600 3,972,600
10,624,400 10,624,400
18,070,500 18,070,500
7,736,900 7,736,900
5,095,700 5,095,700
11,724,400 11,724,400
13,335,400 13,335,400
9,302,100 9,302,100
0 0
5,700,300 5,700,300
0 0
8,327,900 8,327,900
9,838,800 9,838,800
0 0
0 0
Total Existing Increment 245,544,700 245,544,700
Projected Base of New or Amended District 1,263,458 1.00% 1,276,092
Total Value Subject to 12% Test 246,808,158 246,820,792
Compliance PASS PASS
TID #27
City of Oshkosh, Wisconsin
Tax Increment District # 29
Valuation Test Compliance Calculation
TID #23
TID #24
TID #25
TID #21
TID #15
TID #16
TID #17
TID #18
TID #7
TID #10
TID #11
TID #26
TID #12
TID #13
TID #14
TID #19
TID #20
_____________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 9 June 22, 2016
SECTION 7:
Statement of Kind, Number and Location of Proposed
Public Works and Other Projects
Project Costs are any expenditure made, estimated to be made, or monetary obligations incurred or
estimated to be incurred, by the City as outlined in this Plan.
Project Costs will be diminished by any income, special assessments or other revenues, including user
fees or charges received. To the extent the costs of a Project benefit the City outside the District that
proportionate share of the cost is not a Project Cost. Costs identified in this Plan are preliminary estimates
made prior to design considerations and are subject to change after planning is completed. Pro-ration of
costs in the Plan are also estimates and subject to change based upon implementation, future assessment
policies and user fee adjustments.
The following is a list of public works and other TIF-eligible projects that the City may need to
implement in conjunction with this District. Any costs necessary or convenient to the creation of the
District or directly or indirectly related to the public works and other projects are considered Project Costs
and eligible to be paid with tax increment revenues of the District.
Property, Right-of-Way and Easement Acquisition
Property Acquisition
In order to promote and facilitate redevelopment the City may acquire property within the District. The
cost of property acquired, and any costs associated with the transaction, are eligible Project Costs.
Following acquisition, other Project Costs within the categories detailed in this Section may be incurred
in order to make the property suitable for development. Any revenue received by the City from the sale
of property acquired pursuant to the execution of this Plan will be used to reduce the total project costs of
the District. If total Project Costs incurred by the City to acquire property and make it suitable for
development and/or redevelopment exceed the revenues or other consideration received from the sale or
lease of that property, the net amount shall be considered “real property assembly costs” as defined in
Wisconsin Statutes Section 66.1105(2)(f)1.c., and subject to recovery as an eligible Project Cost.
Acquisition of Rights-of-Way
The City may need to acquire property to allow for installation of streets, driveways, sidewalks, utilities,
stormwater management practices and other public infrastructure. Costs incurred by the City to identify,
negotiate and acquire rights-of-way are eligible Project Costs.
Acquisition of Easements
The City may need to acquire temporary or permanent easements to allow for installation and
maintenance of streets, driveways, sidewalks, utilities, stormwater management practices and other public
infrastructure. Costs incurred by the City to identify, negotiate and acquire easement rights are eligible
Project Costs.
Relocation Costs
If relocation expenses are incurred in conjunction with the acquisition of property, those expenses are
eligible Project Costs. These costs may include, but are not limited to: preparation of a relocation plan;
allocations of staff time; legal fees; publication of notices; obtaining appraisals; and payment of relocation
benefits as required by Wisconsin Statutes Sections 32.19 and 32.195.
_____________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 10 June 22, 2016
Site Preparation Activities
Environmental Audits and Remediation
There have been no known environmental studies performed within the proposed District. If, however, it
becomes necessary to evaluate any land or improvement within the District, any cost incurred by the City
related to environmental audits, testing, and remediation are eligible Project Costs.
Demolition
In order to make sites suitable for development, the City may incur costs related to demolition and
removal of structures or other land improvements, to include abandonment of wells or other existing
utility services.
Site Grading
Land within the District may require grading to make it suitable for development and/or redevelopment,
to provide access, and to control stormwater runoff. The City may need to remove and dispose of excess
material, or bring in fill material to provide for proper site elevations. Expenses incurred by the City for
site grading are eligible Project Costs.
Utilities
Sanitary Sewer System Improvements
There are inadequate sanitary sewer facilities serving areas of the District. To allow redevelopment to
occur, the City may need to construct, alter, rebuild or expand sanitary sewer infrastructure within the
District. Eligible Project Costs include, but are not limited to, construction, alteration, rebuilding or
expansion of: collection mains; manholes and cleanouts; service laterals; force mains; interceptor sewers;
pumping stations; lift stations; wastewater treatment facilities; and all related appurtenances. To the extent
sanitary sewer projects undertaken within the District provide direct benefit to land outside of the District,
the City will make an allocation of costs based on such benefit. Those costs corresponding to the benefit
allocated to land within the District, and necessitated by the implementation of the Project Plan, are
eligible Project Costs. Implementation of the Project Plan may also require that the City construct, alter,
rebuild or expand sanitary sewer infrastructure located outside of the District. That portion of the costs of
sanitary sewer system projects undertaken outside the District which are necessitated by the
implementation of the Project Plan are eligible Project Costs. The improvements to the wastewater
treatment facilities, although not within the ½ mile radius, is an eligible project cost under Section
66.1105(2)(f)1 k.
Water System Improvements
There are inadequate water distribution facilities serving areas of the District. To allow redevelopment to
occur, the City may need to construct, alter, rebuild or expand water system infrastructure within the
District. Eligible Project Costs include, but are not limited to, construction, alteration, rebuilding or
expansion of: distribution mains; manholes and valves; hydrants; service laterals; pumping stations;
wells; water treatment facilities; storage tanks and reservoirs; and all related appurtenances. To the extent
water system projects undertaken within the District provide direct benefit to land outside of the District,
the City will make an allocation of costs based on such benefit. Those costs corresponding to the benefit
allocated to land within the District, and necessitated by the implementation of the Project Plan, are
eligible Project Costs. Implementation of the Project Plan may also require that the City construct, alter,
rebuild or expand water system infrastructure located outside of the District. That portion of the costs of
water system projects undertaken outside the District which are necessitated by the implementation of the
Project Plan are eligible Project Costs.
_____________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 11 June 22, 2016
Stormwater Management System Improvements
Redevelopment within the District will cause stormwater runoff and pollution. To manage this
stormwater runoff, the City may need to construct, alter, rebuild or expand stormwater management
infrastructure within the District. Eligible Project Costs include, but are not limited to, construction,
alteration, rebuilding or expansion of: stormwater collection mains; inlets, manholes and valves; service
laterals; ditches; culvert pipes; box culverts; bridges; stabilization of stream and river banks; and
infiltration, filtration and detention Best Management Practices (BMP’s). To the extent stormwater
management system projects undertaken within the District provide direct benefit to land outside of the
District, the City will make an allocation of costs based on such benefit. Those costs corresponding to the
benefit allocated to land within the District, and necessitated by the implementation of the Project Plan,
are eligible Project Costs. Implementation of the Project Plan may also require that the City construct,
alter, rebuild or expand stormwater management infrastructure located outside of the District. That
portion of the costs of stormwater management system projects undertaken outside the District which are
necessitated by the implementation of the Project Plan are eligible Project Costs.
Electric Service
In order to create sites suitable for development, the City may incur costs to provide, relocate or upgrade
electric services. Relocation may require abandonment and removal of existing poles or towers,
installation of new poles or towers, or burying of overhead electric lines. Costs incurred by the City to
undertake this work are eligible Project Costs.
Gas Service
In order to create sites suitable for development, the City may incur costs to provide, relocate or upgrade
gas mains and services. Costs incurred by the City to undertake this work are eligible Project Costs.
Communications Infrastructure
In order to create sites suitable for development, the City may incur costs to provide, relocate or upgrade
infrastructure required for voice and data communications, including, but not limited to: telephone lines,
cable lines and fiber optic cable. Costs incurred by the City to undertake this work are eligible Project
Costs.
Streets and Streetscape
Street Improvements
There are inadequate street improvements serving areas of the District. To allow redevelopment to occur,
the City may need to reconstruct streets, highways, alleys, access drives and parking areas. Eligible
Project Costs include, but are not limited to: excavation; removal or placement of fill; construction of
road base; asphalt or concrete paving or repaving; installation of curb and gutter; installation of sidewalks
and bicycle lanes; installation of culverts, box culverts and bridges; utility relocation, to include burying
overhead utility lines; street lighting; installation of traffic control signage and traffic signals; pavement
marking; right-of-way restoration; installation of retaining walls; and installation of fences, berms, and
landscaping.
Streetscaping, Landscaping and Riverwalk
In order to attract development consistent with the objectives of this Plan, the City may install amenities
to enhance development sites, rights-of-way and other public spaces. These amenities include, but are not
limited to: landscaping; lighting of streets, sidewalks, parking areas and public areas; installation of
planters, benches, clocks, tree rings, trash receptacles and similar items; and installation of brick or other
decorative walks along the Fox River, terraces and street crossings. These and any other similar amenities
installed by the City are eligible Project Costs.
_____________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 12 June 22, 2016
RDA Type Activities
Contribution to Redevelopment Authority
As provided for in Wisconsin Statutes Sections 66.1105(2)(f)1.h and 66.1333(13), the City may provide
funds to its RDA to be used for administration, planning operations, and capital costs, including but not
limited to real property acquisition, related to the purposes for which it was established in furtherance of
any redevelopment or urban renewal project. Funds provided to the RDA for this purpose are eligible
Project Costs.
Revolving Loan/Grant Program
To encourage private redevelopment consistent with the objectives of this Plan, the City, through its
RDA, may provide loans and/or matching grants to eligible property owners in the District. Loan and/or
matching grant recipients will be required to sign an agreement specifying the nature of the property
improvements to be made. Eligible improvements will be those that are likely to improve the value of the
property, enhance the visual appearance of the property and surrounding area, correct safety deficiencies,
or as otherwise specified by the RDA in the program manual. Any funds returned to the RDA from the
repayment of loans made are not considered revenues to the District, and will not be used to offset
District Project Costs. Instead, these funds may be placed into a revolving loan fund and will continue to
be used for the program purposes stated above. Any funds provided to the RDA for purposes of
implementing this program are considered eligible Project Costs.
Miscellaneous
Cash Grants (Development Incentives)
The City may enter into agreements with property owners, lessees, or developers of land located within
the District for the purpose of sharing costs to encourage the desired kind of improvements and assure tax
base is generated sufficient to recover project costs. No cash grants will be provided until the City
executes a developer agreement with the recipient of the cash grant. Any payments of cash grants made
by the City are eligible Project Costs.
Projects Outside the Tax Increment District
Pursuant to Wisconsin Statutes Section 66.1105(2)(f)1.n, the City may undertake projects within territory
located within one-half mile of the boundary of the District provided that: 1) the project area is located
within the City’s corporate boundaries and 2) the projects are approved by the Joint Review Board. The
cost of projects completed outside the District pursuant to this section are eligible project costs, and may
include any project cost that would otherwise be eligible if undertaken within the District. The City
intends to repair or replace pavement surfaces, curb and gutter, sidewalks, and underlying utilities
(sanitary sewer, storm sewer and water main) on portions of Oregon Street, Iowa Street, Minnesota
Street, and West Fourth and Fifth Avenues. Segments of each identified street project comprise
either a portion of the TID boundary, or lie just outside of the TID boundary. The City intends for
the full cost of all identified street projects to be eligible Project Costs utilizing this provision.
Professional Service and Organizational Costs
The costs of professional services rendered, and other costs incurred, in relation to the creation,
administration and termination of the District, and the undertaking of the projects contained within this
Plan, are eligible Project Costs. Professional services include, but are not limited to: architectural;
environmental; planning; engineering; legal, audit; financial; and the costs of informing the public with
respect to the creation of the District and the implementation of the Plan.
_____________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 13 June 22, 2016
Administrative Costs
The City may charge to the District as eligible Project Costs reasonable allocations of administrative
costs, including, but not limited to, employee salaries. Costs allocated will bear a direct connection to the
time spent by City employees in connection with the implementation of the Plan.
Financing Costs
Interest expense, debt issuance expenses, redemption premiums, and any other fees and costs incurred in
conjunction with obtaining financing for projects undertaken under this Plan are eligible Project Costs.
With all Projects the costs of engineering, design, survey, inspection, materials, construction, restoring
property to its original condition, apparatus necessary for public works, legal and other consultant fees,
testing, environmental studies, permits, updating City ordinances and plans, judgments or claims for
damages and other expenses are included as Project Costs.
In the event any of the Project Cost expenditures included in this Plan are determined not to be
reimbursable out of the TIF fund by counsel retained by the City for purposes of making such
determination, or a court of record so rules in a final order, then such Project Cost is deleted from this
Plan and the remainder of the Projects shall be deemed the entirety of the Projects for purposes of this
Plan.
The City reserves the right to implement only those projects that remain viable as the Plan period
proceeds.
_________________________________________________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 14 June 22, 2016
SECTION 8:
Map Showing Proposed Improvements and Uses
_____________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 15 June 22, 2016
SECTION 9:
Detailed List of Project Costs
All costs are based on 2016 prices and are preliminary estimates. The City reserves the right to increase
these costs to reflect inflationary increases and other uncontrollable circumstances between 2016 and the
time the expenditure is made. The City also reserves the right to increase certain Project Costs to the
extent others are reduced or not implemented without amending the Plan. The tax increment allocation is
preliminary and is subject to adjustment based upon the implementation of the Plan.
This Plan is not meant to be a budget nor an appropriation of funds for specific projects, but a
framework within which to manage projects. All costs included in the Plan are estimates based on
best information available. The City retains the right to delete projects or change the scope and/or
timing of projects implemented as they are individually authorized by the Common Council,
without amending the Plan.
_________________________________________________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 16 June 22, 2016
Proposed TIF Project Cost Estimates
Total
Project Name/Type Projected Year > 2016‐2044 2016‐2020 2017‐2025 2016‐2038
1 Development Incentives 26,259,597 26,259,597
2 Riverwalk1 5,700,000 5,700,000
3 Street Projects2, 3 & 4
a. Oregon Street ‐ Fox River to 100' south of W. 6th Avenue 951,732 951,732
b. W. 4th Avenue ‐ Michigan Street to Iowa Street 960,966 960,966
c. W. 5th Avenue ‐ Michigan Street to Iowa Street 1,199,881 1,199,881
d. W. 5th Avenue ‐ Iowa Street to Minnesota Street 876,090 876,090
e. Iowa Street ‐ W. 4th Avenue to W. 5th Avenue 1,082,452 1,082,452
f. Iowa Street ‐ W. 5th Avenue to W. 6th Avenue 1,194,727 1,194,727
g. Minnesota Street ‐ W. 5th Avenue to W. 6th Avenue 517,690 517,690
4 Administration 42,000 42,000
Total Projects 26,259,597 5,700,000 6,783,538 42,000 38,785,135
Notes:
1Estimated costs for riverwalk provided by D. Burich. E‐mail dated 4‐28‐2016.
2Estimated costs for street projects provided by Jeff Nau. E‐mail dated 3‐9‐2016).
3Scope of work varies by project but may include repair or replacement of pavement surfaces, curb and gutter, sidewalks, and underlying utilities (sanitary sewer, storm sewer and watermain).
4Segments of each identified street project comprise either a portion of the TID boundary, or lie outside of the TID boundary. The full cost of all identified street projects are eligible Project Costs
as their completion is necessitated by the redevelopment proposed within the District. To the extent a portion of a street project is located outside of the TID boundary, it remains an
eligible Project Cost under the provisions of Wisconsin Statute 66.1105(2)(f)1.n. (1/2 Mile Rule).
City of Oshkosh, Wisconsin
Tax Increment District # 29
Estimated Project List
Project
ID
Development
Incentives Riverwalk Street
Improvements Administration
_____________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 17 June 22, 2016
SECTION 10:
Economic Feasibility Study, Financing Methods, and the
Time When Costs or Monetary Obligations Related are to
be Incurred
The information and exhibits contained within this Section demonstrate that the proposed District is
economically feasible insofar as:
The City has available to it the means to secure the necessary financing required to accomplish
the projects contained within this Plan. A listing of “Available Financing Methods” follows.
The City expects to complete the projects in one or multiple phases, and can adjust the timing of
implementation as needed to coincide with the pace of private development. A discussion of the
phasing and projected timeline for project completion is discussed under “Plan Implementation”
within this Section. A table identifying the financing method for each phase and the time at which
that financing is expected to be incurred is included.
The development anticipated to occur as a result of the implementation of this Plan will generate
sufficient tax increments to pay for the cost of the Projects. Within this Section are tables
identifying: 1) the development and redevelopment expected to occur; 2) a projection of tax
increments to be collected resulting from that development and redevelopment and other
economic growth within the District; and 3) a cash flow model demonstrating that the projected
tax increment collections and all other revenues available to the District will be sufficient to pay
all Project Costs.
Available Financing Methods
To the extent Project Costs cannot be paid from cash on hand, the following is a list of the types of debt
obligations that the City could utilize to raise the capital needed to finance Project Costs or to pay
commitments to developers.
General Obligation (G.O.) Bonds or Notes
The City may issue G.O. Bonds or Notes to finance the cost of projects included within this Plan. The
Wisconsin State Constitution limits the principal amount of G.O. debt that the City may have outstanding
at any point in time to an amount not greater than five percent of its total equalized value. As of
December 31, 2015 the City had approximately $41.8 million in unused G.O. debt capacity available.
Bonds Issued to Developers (“Pay as You Go” Financing)
The City may issue a bond or other obligation to one or more developers who provide financing for
projects included in this Plan. Repayment of the amounts due to the developer under the bonds or other
obligations are limited to an agreed percentage of the available annual tax increments collected that result
from the improvements made by the developer. To the extent the tax increments collected are insufficient
to make annual payments, or to repay the entire obligation over the life of the District, the City’s
obligation is limited to not more than the agreed percentage of the actual increments collected. Bonds or
other obligations issued to developers in this fashion are not general obligations of the City and, therefore,
do not count against the City’s statutory borrowing capacity.
_____________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 18 June 22, 2016
Tax Increment Revenue Bonds
The City has the authority to issue revenue bonds secured by the tax increments to be collected. These
bonds may be issued directly by the City, or as a form of lease revenue bond by a Redevelopment
Authority. Tax Increment Revenue Bonds and Lease Revenue Bonds are not general obligations of the
City and therefore do not count against the City’s statutory borrowing capacity. To the extent tax
increments collected are insufficient to meet the annual debt service requirements of the revenue bonds,
the City may be subject to either a permissive or mandatory requirement to appropriate on an annual basis
a sum equal to the actual or projected shortfall.
Utility Revenue Bonds
The City can issue revenue bonds to be repaid from revenues of its various systems, including revenues
paid by the City that represent service of the system to the City. There is neither a statutory nor
constitutional limitation on the amount of revenue bonds that can be issued, however, water rates are
controlled by the Wisconsin Public Service Commission and the City must demonstrate to bond
purchasers its ability to repay revenue debt with the assigned rates. To the extent the City utilizes utility
revenues other than tax increments to repay a portion of the bonds, the City must reduce the total eligible
Project Costs in an equal amount.
Special Assessment “B” Bonds
The City has the ability to levy special assessments against benefited properties to pay part of the costs for
street, curb, gutter, sewer, water, storm sewers and other infrastructure. In the event the City determines
that special assessments are appropriate, the City can issue Special Assessment B bonds pledging
revenues from special assessment installments to the extent assessment payments are outstanding. These
bonds are not counted against the City's statutory borrowing capacity. If special assessments are levied,
the City must reduce the total eligible Project Costs under this Plan in an amount equal to the total
collected.
Plan Implementation
The Plan includes potential Project Cost expenditures of approximately $38.8 million to facilitate
redevelopment within the District. This total is comprised of $26.3 million in potential “pay as you go”
development incentives, $5.7 million for riverwalk improvements and $6.8 million in street and other
public infrastructure improvements. The projections included in this plan indicate that while the District
will be able to fully fund the proposed development incentives, it will only be able to contribute
approximately $10 million towards the $12.5 million in costs for the riverwalk and other public
improvements which do not include the costs of related debt service. As such, it is expected that the City
will need to contribute other funds through its normal capital improvements planning to fully implement
the Projects outlined in the Plan.
It is important to note that this Plan does not constitute approval of any particular projects. Based on the
27 year maximum life of the District and corresponding 22 year expenditure period, it can be expected
that economic conditions will change throughout the District’s life and will alter the projections contained
in this Plan. Decisions to undertake specific Projects through the life of the District must be made in the
context of the current financial position of the TID and forecasts updated to reflect the best information
available at that time.
If financing as outlined in this Plan proves unworkable, the City reserves the right to use alternate
financing solutions for the projects as they are implemented.
_________________________________________________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 19 June 22, 2016
Development Assumptions
Actual Morgan District
Phase I
Morgan District
Phase II
Morgan District
Phase III
Morgan District
Phase IV
Morgan District
Phase V
Parcels
12 & 143 Annual Total
1 2016 0 2016 1
2 2017 16,100,000 16,100,000 2017 2
3 2018 7,200,000 7,200,000 2018 3
4 2019 12,800,000 9,000,000 21,800,000 2019 4
5 2020 8,900,000 8,900,000 2020 5
6 2021 0 2021 6
7 2022 0 2022 7
8 2023 3,700,000 3,700,000 2023 8
9 2024 0 2024 9
10 2025 0 2025 10
11 2026 0 2026 11
12 2027 0 2027 12
13 2028 0 2028 13
14 2029 0 2029 14
15 2030 0 2030 15
16 2031 0 2031 16
17 2032 0 2032 17
18 2033 0 2033 18
19 2034 0 2034 19
20 2035 0 2035 20
21 2036 0 2036 21
22 2037 0 2037 22
23 2038 0 2038 23
24 2039 0 2039 24
25 2040 0 2040 25
26 2041 0 2041 26
27 2042 0 2042 27
Totals 0 16,100,000 7,200,000 12,800,000 9,000,000 8,900,000 3,700,000 57,700,000
Notes:
1Assumptions as to timing for Morgan District project taken from "Tax Incremental Financing Application: Morgan District Redevelopment" submitted December 2015 by The Morgan District, LLC.
2Assumptions as to value for the Morgan District project provided by City assessor per D. Burich e‐mail received 3‐2‐2016.
3Projected value for other future redevelopment sites assumes same average valuation per acre as Morgan District project. Parcel 13 is excluded from calculation.
Construction
Year
Construction
Year
City of Oshkosh, Wisconsin
Tax Increment District # 29
Development Assumptions1 & 2
_____________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 20 June 22, 2016
Increment Revenue Projections
Type of District Base Value 1,263,458
District Creation Date Appreciation Factor 0.00%x Apply to Base Value
Valuation Date Jan 1, 2016 Base Tax Rate $25.95
Max Life (Years) Rate Adjustment Factor
Expenditure Periods/Termination 22 7/12/2038
Revenue Periods/Final Year 27 2044
Extension Eligibility/Years Yes 3 Tax Exempt Discount Rate 4.00%
Recipient District Taxable Discount Rate 5.50%
Construction
Year Value Added Valuation Year
Inflation
Increment
Total
Increment Revenue Year Tax Rate1 Tax Increment
Tax Exempt
NPV
Calculation
Taxable NPV
Calculation
1 2016 0 2017 0 0 2018 $25.95 0 0 0
2 2017 16,100,000 2018 0 16,100,000 2019 $25.95 417,776 386,257 375,351
3 2018 7,200,000 2019 0 23,300,000 2020 $25.95 604,607 923,750 890,243
4 2019 21,800,000 2020 0 45,100,000 2021 $25.95 1,170,291 1,924,120 1,834,921
5 2020 8,900,000 2021 0 54,000,000 2022 $25.95 1,401,235 3,075,833 2,907,054
6 2021 0 2022 0 54,000,000 2023 $25.95 1,401,235 4,183,249 3,923,294
7 2022 0 2023 0 54,000,000 2024 $25.95 1,401,235 5,248,072 4,886,554
8 2023 3,700,000 2024 0 57,700,000 2025 $25.95 1,497,245 6,342,095 5,862,158
9 2024 0 2025 0 57,700,000 2026 $25.95 1,497,245 7,394,040 6,786,901
10 2025 0 2026 0 57,700,000 2027 $25.95 1,497,245 8,405,525 7,663,434
11 2026 0 2027 0 57,700,000 2028 $25.95 1,497,245 9,378,107 8,494,271
12 2027 0 2028 0 57,700,000 2029 $25.95 1,497,245 10,313,282 9,281,795
13 2028 0 2029 0 57,700,000 2030 $25.95 1,497,245 11,212,489 10,028,262
14 2029 0 2030 0 57,700,000 2031 $25.95 1,497,245 12,077,111 10,735,815
15 2030 0 2031 0 57,700,000 2032 $25.95 1,497,245 12,908,479 11,406,480
16 2031 0 2032 0 57,700,000 2033 $25.95 1,497,245 13,707,870 12,042,182
17 2032 0 2033 0 57,700,000 2034 $25.95 1,497,245 14,476,516 12,644,744
18 2033 0 2034 0 57,700,000 2035 $25.95 1,497,245 15,215,598 13,215,892
19 2034 0 2035 0 57,700,000 2036 $25.95 1,497,245 15,926,255 13,757,264
20 2035 0 2036 0 57,700,000 2037 $25.95 1,497,245 16,609,578 14,270,414
21 2036 0 2037 0 57,700,000 2038 $25.95 1,497,245 17,266,620 14,756,811
22 2037 0 2038 0 57,700,000 2039 $25.95 1,497,245 17,898,390 15,217,852
23 2038 0 2039 0 57,700,000 2040 $25.95 1,497,245 18,505,862 15,654,857
24 2039 0 2040 0 57,700,000 2041 $25.95 1,497,245 19,089,970 16,069,079
25 2040 0 2041 0 57,700,000 2042 $25.95 1,497,245 19,651,612 16,461,708
26 2041 0 2042 0 57,700,000 2043 $25.95 1,497,245 20,191,652 16,833,867
27 2042 0 2043 0 57,700,000 2044 $25.95 1,497,245 20,710,922 17,186,625
Totals 57,700,000 0 Future Value of Increment 36,341,288
Notes:
1Tax rate is actual rate for 2015/16 taken from the City's Tax Increment Worksheet (DOR Form PC‐202).
City of Oshkosh, Wisconsin
Tax Increment District # 29
Tax Increment Projection Worksheet
Blighted Area
July 12, 2016
27
Yes
_________________________________________________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 21 June 22, 2016
Cash Flow
City of Oshkosh, Wisconsin
Tax Increment District # 29
Cash Flow Projection
Year Site 1 Site 2 Site 3 & 4 Site 5 Year
73.50% 73.50% 73.50% 73.50%50.00%
2016 20,000 20,000 20,000 20,000 0 0 2016
2017 1,000 1,000 1,000 1,000 0 0 2017
2018 0 1,000 1,000 1,000 1,000 0 0 7,983,692 2018
2019 417,776 417,776 307,065 307,065 24,040 85,671 1,000 417,776 0 0 11,109,652 2019
2020 604,607 604,607 307,065 137,321 444,386 159,221 1,000 604,607 0 0 20,643,927 2020
2021 1,170,291 1,170,291 307,065 137,321 415,778 860,164 309,127 1,000 1,170,291 0 0 23,687,877 2021
2022 1,401,235 1,401,235 307,065 137,321 415,778 169,744 1,029,908 370,328 1,000 1,401,235 0 0 22,657,969 2022
2023 1,401,235 1,401,235 307,065 137,321 415,778 169,744 1,029,908 370,327 1,000 1,401,235 0 0 21,628,061 2023
2024 1,401,235 1,401,235 307,065 137,321 415,778 169,744 1,029,908 370,328 1,000 1,401,235 0 0 21,558,259 2024
2025 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 418,333 1,000 1,497,245 0 0 20,480,346 2025
2026 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 418,333 1,000 1,497,245 0 0 19,402,433 2026
2027 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 418,333 1,000 1,497,245 0 0 18,324,520 2027
2028 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 418,333 1,000 1,497,245 0 0 17,246,607 2028
2029 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 418,333 1,000 1,497,245 0 0 16,168,694 2029
2030 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 418,333 1,000 1,497,245 0 0 15,090,781 2030
2031 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 418,333 1,000 1,497,245 0 0 14,012,868 2031
2032 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 418,333 1,000 1,497,245 0 0 12,934,955 2032
2033 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 418,333 1,000 1,497,245 0 0 11,857,042 2033
2034 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 418,333 1,000 1,497,245 0 0 10,779,129 2034
2035 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 418,333 1,000 1,497,245 0 0 9,701,217 2035
2036 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 418,333 1,000 1,497,246 0 0 8,623,304 2036
2037 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 418,333 1,000 1,497,245 0 0 7,545,391 2037
2038 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 418,333 1,000 1,497,245 0 0 6,467,478 2038
2039 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 419,333 1,497,245 0 0 5,389,565 2039
2040 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 419,333 1,497,245 0 0 4,311,652 2040
2041 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 419,333 1,497,245 0 0 3,233,739 2041
2042 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 419,333 1,497,245 0 0 2,155,826 2042
2043 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 419,333 1,497,245 0 0 1,077,913 2043
2044 1,497,245 1,497,245 307,065 137,321 415,778 169,744 1,029,908 48,005 419,333 1,497,245 0 0 0 2044
Total 36,341,288 22,000 36,363,288 7,983,692 3,433,026 9,978,661 3,904,113 25,299,491 960,105 24,040 10,037,651 42,000 36,363,287 Total
3,805,265 1,675,025 4,985,480 1,997,911 12,463,680 Present Value of Incentive Payments @ 6.5%
4,037,000 1,615,000 5,197,000 1,595,000 12,444,000 "Monetized TIF Note" Amount From Developer Sources & Uses
Notes:
1Prior to the time that tax increments are received, the City expects to fund costs associated with creation of the TID and annual adminstrative costs with advances from other City funds, to be recovered with 3% accrued interest.
2Developer has requested 90% of tax increments generated. City analysis assumes 73.5% of increment will be paid as an incentive which generates a present value approximately equal to the "Monetized TIF Note" amount requested bv developer.
3Represents projected annual amount available to offset City debt service issued to pay the costs of riverwalk and street improvement costs, or to repay advances to the TID for that purpose.
Total
Expenditures Annual Cumulative
Incentives &
Debt Principal
Outstanding
Balances
Admin.
Projected Revenues
Tax
Increments
City Advance
From Other
Funds1
Total
Revenues
Expenditures
Riverwalk &
Street
Projects3
Morgan Dist.
Project2
Other
Redev. Sites
Development Incentives
Repayment
of Advance1
Projected TID Closure
_____________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 22 June 22, 2016
SECTION 11:
Annexed Property
There are no lands proposed for inclusion within the District that were annexed by the City on or after
January 1, 2004.
SECTION 12:
Estimate of Property to be Devoted to Retail Business
Pursuant to Wisconsin Statutes Sections 66.1105(5)(b) and 66.1105(6)(am)1, the City estimates that less
than 35% of the territory within the District will be devoted to retail business at the end of the District’s
maximum expenditure period.
SECTION 13:
Proposed Zoning Ordinance Changes
The proposed Plan is in general conformance with the City of Oshkosh’s present zoning and no changes
are anticipated to the Plan area’s C-3 PD Central Commercial Planned Development Overlay zoning to
implement the Plan.
SECTION 14:
Proposed Changes in Master Plan, Map, Building Codes
and City of Oshkosh Ordinances
The proposed Plan is in general conformance with the City of Oshkosh’s Comprehensive Plan identifying
the area as appropriate for mixed downtown development. All development within the District will be
required to conform to the State Building Codes and will be subject to the City's permitting and inspection
procedures. The proposed Plan conforms to all relevant State and local ordinances, plans, and codes, thus,
no changes to the existing regulations are proposed or needed.
SECTION 15:
Relocation
Where the relocation of individuals and business operations would take place as a result of the City’s
acquisition activities occurring within the District, relocation will be carried out in accordance with the
relocation requirements set forth in Chapter 32 of the Wisconsin Statutes and the Federal Uniform
Relocation Assistance and Real Property Acquisitions Policy Act of 1970 (P.L. 91-646) as applicable.
_____________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 23 June 22, 2016
SECTION 16:
Orderly Development of the City of Oshkosh
Creation of the District and the implementation of the projects in its Plan will promote the orderly
redevelopment of the City of Oshkosh by eliminating blight, facilitating the assembly of parcels of land
suitable for redevelopment, providing necessary public infrastructure improvements and providing
appropriate financial incentives for private redevelopment projects. By utilizing the provisions of the Tax
Increment Finance Law, the City can stabilize property values and attract new investment that results in
increased tax base. Redevelopment will occur in an orderly fashion in accordance with approved plans so
that the projects will be compatible with adjacent land uses. Development of new uses in the District will
add to the tax base and will generate positive secondary impacts in the community such as additional
housing opportunities; increased employment opportunities; and amenities such as public open spaces and
riverwalks that will enhance the quality of life and recreational opportunities for residents and workers
within the District and the community at large.
SECTION 17:
List of Estimated Non-Project Costs
Non-Project costs are public works projects that only partly benefit the District or are not eligible to be
paid with tax increments, or costs not eligible to be paid with TIF funds.
Examples would include:
A public improvement made within the District that also benefits property outside the District. That
portion of the total project costs allocable to properties outside of the District would be a non-project cost.
A public improvement made outside the District that only partially benefits property within the District.
That portion of the total project costs allocable to properties outside of the District would be a non-project
cost.
Projects undertaken within the District as part of the implementation of this Project Plan, the costs of
which are paid fully or in part by impact fees, grants, special assessments, or revenues other than tax
increments.
The City does not anticipate making any non-project costs in connection with the implementation of this
Plan.
Page 24
_____________________________________________________________________________________________
Project Plan TID No. 29 Creation City of Oshkosh
Submitted by Ehlers Page 25 June 22, 2016
Exhibit A:
Calculation of the Share of Projected Tax Increments
Estimated to be Paid by the Owners of Property in the
Overlying Taxing Jurisdictions
Statement of Taxes Data Year: 2014
Percentage
Winnebago County 19,340,255 19.73%
City of Oshkosh 40,840,022 41.67%
Oshkosh Area School District 33,943,225 34.63%
Fox Valley Technical College 3,890,900 3.97%
Total 98,014,402
Revenue Year
Winnebago
County City of Oshkosh
Oshkosh Area
School District
Fox Valley
Technical
College Total Revenue Year
2018 0 0 0 0 0 2018
2019 82,436 174,076 144,679 16,585 417,776 2019
2020 119,301 251,924 209,381 24,001 604,607 2020
2021 230,922 487,629 405,282 46,457 1,170,291 2021
2022 276,492 583,858 485,260 55,625 1,401,235 2022
2023 276,492 583,858 485,260 55,625 1,401,235 2023
2024 276,492 583,858 485,260 55,625 1,401,235 2024
2025 295,437 623,863 518,509 59,436 1,497,245 2025
2026 295,437 623,863 518,509 59,436 1,497,245 2026
2027 295,437 623,863 518,509 59,436 1,497,245 2027
2028 295,437 623,863 518,509 59,436 1,497,245 2028
2029 295,437 623,863 518,509 59,436 1,497,245 2029
2030 295,437 623,863 518,509 59,436 1,497,245 2030
2031 295,437 623,863 518,509 59,436 1,497,245 2031
2032 295,437 623,863 518,509 59,436 1,497,245 2032
2033 295,437 623,863 518,509 59,436 1,497,245 2033
2034 295,437 623,863 518,509 59,436 1,497,245 2034
2035 295,437 623,863 518,509 59,436 1,497,245 2035
2036 295,437 623,863 518,509 59,436 1,497,245 2036
2037 295,437 623,863 518,509 59,436 1,497,245 2037
2038 295,437 623,863 518,509 59,436 1,497,245 2038
2039 295,437 623,863 518,509 59,436 1,497,245 2039
2040 295,437 623,863 518,509 59,436 1,497,245 2040
2041 295,437 623,863 518,509 59,436 1,497,245 2041
2042 295,437 623,863 518,509 59,436 1,497,245 2042
2043 295,437 623,863 518,509 59,436 1,497,245 2043
2044 295,437 623,863 518,509 59,436 1,497,245 2044
7,170,883 15,142,458 12,585,298 1,442,648 36,341,288
Notes:
The projection shown above is provided to meet the requirments of Wisconsin Statute 66.1105(4)(i)4.
Estimated portion of taxes that owners of taxable property in each taxing jurisdiction
overlaying district would pay by jurisdiction.
Tax Incremental Financing Application
Morgan District Redevelopment
City of Oshkosh
Project Sponsor
The Morgan District, LLC
601 Oregon Street
Oshkosh, WI 54902
Submitted
December 2015
26
Tax Incremental Financing Application – Morgan District Redevelopment
Table of Contents
Application Information
Project/Property Summary
o Project/Property Summary
o Project Narrative
o Development Team Narrative
Project Budget/Financial Information
o Summary Sources and Uses
o Site 1
o Site 2
o Site 3
o Site 4
o Site 5
Certification/Agreement Page
Appendix
o City Summary Letter
o Detailed Project Narrative
o Site Map
o Project Renderings
o Appraisal
o Market Study
o Filing Fee
27
Tax Incremental Financing Application – Morgan District Redevelopment
Application Information
Page from TIF Application
28
City
of
Oshkosh
Tax Incremental Financing
Policy and Application
Please complete and submit the following information to the City of Oshkosh for a more detailed review of
the feasibility of your request for Tax Incremental Financing (TIF) assistance. The application is comprised
of five parts:
1. Applicant Information
2. Project/Property Information
3. Project Narrative
4. Project Budget/Financial Information
5. Buyer Certification and Acknowledgement.
Where there is not enough space for your response or additional information is requested, please use an
attachment. Use attachments only when necessary and to provide clarifying or additional information.
The Department of Community Development (DCD) reviews all applications for TIF assistance. Failure to
provide all required information in a complete and accurate manner could delay processing of your
application and DCD reserves the right to reject or halt processing the application for incomplete submittals.
For further information please refer to the “City of Oshkosh Tax Incremental Financing Policy” document.
Legal Name: ________________________________________________________________________
Mailing Address: ____________________________________________________________________
Primary Contact #: _______________________________ Cell #: ___________________________
E-mail: _________________________________________ FAX #: ___________________________
Attorney:___________________________________________________________________________
Legal Entity: Individual(s)_____ Joint Tenants_____ Tenants in Common_____ Corporation_____
LLC_____ Partnership_____ Other_________________________________________
If not a Wisconsin corporation/partnership/LLC, state where organized: _________________________
Will a new entity be created for ownership? Yes____ No____
Principals of existing or proposed corporation/partnership/LLC and extent of ownership interest.
Name: Address: Title: Interest:
_________________ __________________________________ ______________ ___________
_________________ __________________________________ ______________ ___________
_________________ __________________________________ ______________ ___________
Is any owner, member, stockholder, partner, officer or director of any previously identified entities, or any
member of the immediate family of any such person, an employee of the City of Oshkosh? Yes___ No___
If yes, give the name and relationship of the employee:_________________________________________
Have any of the applicants (including the principals of the corporation/partnership/LLC) ever been
charged or convicted of a misdemeanor or felony? Yes_____ No_____
If yes, please furnish details:_____________________________________________________________
___________________________________________________________________________________
Applicant Information:
29
Tax Incremental Financing Application – Morgan District Redevelopment
Project/Property Summary
Pages from TIF Application
Project Narrative
Development Team Narrative
30
City
of
Oshkosh
Tax Incremental Financing
Policy and Application
Project/Property Summary:
Overall Project Summary and Objectives: ______________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
Current and Proposed Uses: _________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
Description of End Users: ___________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
Describe any zoning changes that will be needed:
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
Property Summary:
Parcel/Land Area: ___________ SF
Building Area: ______________ SF
# of Dwelling Units: __________
# of Stories: _________________
# of Parking Spaces: __________
Identify any other approvals, permits or licenses (i.e. Liquor License, Health Department, etc):
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
Describe briefly what the project will do for the property and neighborhood:
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
31
Final Plan/Specification Preparation: ____________________________________________________
Bidding and Contracting: _____________________________________________________________
Firm Financing Approval: ____________________________________________________________
Construction/Rehabilitation: __________________________________________________________
Landscaping/Site Work: ______________________________________________________________
Occupancy/Lease Up: ________________________________________________________________
City
of
Oshkosh
Tax Incremental Financing
Policy and Application
Project/Property Summary:
Project Timetable Date
Development Team
Developer: _________________________________________________________________________
Architect: __________________________________________________________________________
Surveyor: __________________________________________________________________________
Contractor: _________________________________________________________________________
Other Members: _____________________________________________________________________
Describe Team expertise and experience in developing similar projects:
___________________________________________________________________________________
___________________________________________________________________________________
Other current Team projects in development:
___________________________________________________________________________________
___________________________________________________________________________________
Financial ability of the applicant to complete the project:
___________________________________________________________________________________
___________________________________________________________________________________
Full and part-time jobs to be created by the proposed project including estimated salary:
___________________________________________________________________________________
___________________________________________________________________________________
Professional Studies
Market Studies: Applications for commercial and residential projects must include a comprehensive market
study. The market study must identify target markets, analysis of competition, demographics, market rents,
letters of intent/interest from prospective tenants, or for housing developments, sale prices or rental rates of
comparable properties.
Appraisal: All projects that involve the transfer of land must include a recent appraisal. Projects that include
land as a form of equity or collateral must also submit a recent appraisal. The appraisal must value the property
“as is”, and the impact on value must be considered for such items as demolition, environmental remediation,
relocation of utilities, lease buy-outs, and other work necessary to make the site developable. The property
must be valued assuming that the highest and best use is the proposed use.
32
Tax Incremental Financing Application – Morgan District Redevelopment
Project Narrative
Current Status
All structures and foundations have been removed from the site. Additional site work and planning
has continued in 2015 with anticipated groundbreaking for site 1 of the Project in fall 2016.
Proposed Development
The Project is anticipated to be completed in five or more phases over several years. Currently
there is a strong market demand for multifamily properties and commercial space. Taking that into
consideration, the initial phases are anticipated to contain residential development along with
commercial space to provide amenity access to the residential tenants and the community. The
Developer is working with a grocer to fill the majority of the commercial space for site 1. Depending
on the timeliness of the Project and the approval of the TIF, the market demand could change and
dictate the Developer to reevaluate future phases of the Project prior to commencement. It is the
Developer’s ultimate goal to have a successful long-term development that provides benefits to the
community, supports the City of Oshkosh’s development goals, and provides the required rate of
return to the Developer.
Timing and Sources Overview
The commencement of construction is currently anticipated to be:
Site 1: fall 2016
Site 2: fall 2017
Site 3: fall 2018
Site 4: fall 2018
Site 5: fall 2019
The current total development cost for all five phases of planned development is approximately
$68.6 million. Substantial costs are involved with the site and public/private infrastructure work
necessary for redevelopment of the riverfront property. The Project is estimated to leverage no
more than $40.4 million in private debt coupled with approximately $15.8 million of Developer
equity, deferred financing, or additional federal and state funding sources that can be raised for the
redevelopment leaving a $12.4 million development funding gap. The Developer is requesting a
Pay-As-You-Go TIF Note to support the redevelopment and make the Project feasible to develop.
Since the first TIF application was submitted to the City in September 2014, the federal New
Markets Tax Credit (“NMTC”) program and a grant from the State of Wisconsin have been identified
as potential sources for supporting the development of the grocery store and infrastructure needs
for site 1. The funding from these two sources, if any, have not been quantified or included in the
financial analysis because the programs require applications and approvals from various
agencies. However, the financial gap for site 1 is large enough that TIF assistance in addition to
support from other programs is required. Community Development Entities (“CDEs”), the
intermediaries that award NMTC allocations, and the State of Wisconsin will look favorably on the
33
Tax Incremental Financing Application – Morgan District Redevelopment
Project with the TIF commitment from the City. It will demonstrate a strong public-private
partnership. Baker Tilly Virchow Krause, LLP is assisting the Developer in the process of applying
to CDEs for a NMTC allocation. More information about these programs can be provided in the
future as the Project moves forward.
TIF Request
The Developer is requesting a Pay-As-You-Go TIF Note to support the Project. It is anticipated that
a new 27 year Tax Increment District (“TID”) will be created by the City and that the Developer will
receive 90% of the property tax increment generated from the Project for the remaining life of the
TID for each site. The Developer understands that this percentage of TIF assistance surpasses the
City’s guidelines for the typical development requesting TIF. The request is 18.08% of total Project
costs, falling below the TIF Cap of 25%. The detailed sources and uses, operating pro forma
assumptions, and reversion calculations are included in the appendix for each site that demonstrate
why the Developer’s request is necessary to make the Project financially feasible. The ‘Detailed
Project Narrative’ in the appendix also details the TIF funding criteria that the Project meets or
exceeds.
At this time the Developer is seeking a TIF Note from the City just for site 1, but the projected need
for TIF assistance for future sites is included in this application to support the City’s efforts to
create a new TID.
Lender Relationships
The Developer has very strong relationships with many lending institutions and could have
financing in place before the commencement of any Phase of the Project. The Developer is willing
to provide letters of financial reference from lending institutions upon request.
34
Tax Incremental Financing Application – Morgan District Redevelopment
Development Team Narrative
The Development Team at this point consists of the following.
Developer – The Morgan District, LLC
Contractor – Northcentral Construction Corporation
Surveyor, Engineer, and Environmental– The Sigma Group
Accounting Company and Market Analysis – Baker Tilly Virchow Krause, LLP
Legal Firm – Whyte Hirschboeck & Dudek S.C.
*Please note that this is a list of companies that the Developer has used this far and this list can
change based on the final scope of the Project.
1. Morgan District, LLC is comprised of Jeff Kowalik, Grant and Dennis Schwab, Nicholas and Peter
Lang.
• Jeff Kowalik has over 25 years in the commercial and multifamily construction field
and founded Northcentral Construction in 1990. Northcentral Construction Corporation
has extensive development experience that is detailed below. Jeff has also earned the
designation of Senior Certified Development Professional from ICSC for his work.
• Lang Development partners Peter and Nicholas Lang manage, own and have
developed a number of commercial, retail and multi-family properties through their family
of companies. They are a second generation company grounded in a strong Midwest work
ethic. The Lang’s also have a proven track record in the remediation, clean up and
redevelopment of Brownfield sites.
• Schwab Properties, LLC, which is operated by Dennis and Grant Schwab, was started
in 1967 by Dennis Schwab focused on the purchase and rehabilitation of multifamily
properties. Over the past 40 plus years Schwab Properties has grown into owning and
developing retail, multifamily, and commercial projects around the Fox Valley area and the
State of Wisconsin. Currently Schwab Properties owns and manages over 400 multifamily
units in the City of Oshkosh. The Schwab Group was integral in redevelopment of the
former foundry site.
35
Tax Incremental Financing Application – Morgan District Redevelopment
2. Northcentral Constuction Corporation (“NCC”)
• NCC was founded in 1990. The Company is built around the core vision of
understanding and exceeding client’s needs and deadlines. They are located in Fond du Lac,
WI and serve clients throughout the Midwest in a variety of sectors including: multifamily,
senior housing, tax credit, retail, commercial, hospitality, health care, and rehabilitation.
They have constructed in excess of 6,000 multifamily units, is a preferred contractor for
Walgreen’s, TJ Maxx, and JoAnn Fabrics in the Midwest, and has built for a vast array of
other retailers including: PetSmart, Staples, Roundy’s, Petco, and McDonald’s.
3. The Sigma Group (“Sigma”)
• Sigma focuses on creating functional, innovative solutions that optimize results.
They offer a diverse range of services, expertise and can-do attitude that enables their
clients to achieve a successful balance between today’s challenges and the long-term need
to preserve important resources.
4. Baker Tilly Virchow Krause, LLP (“BTVK”)
• BTVK is one of the top 15 accounting and advisory firms in the United States. They
offer innovative financial solutions and solid business strategies through diverse industry
and service specialization.
5. Whyte Hirschboeck & Dudek S.C. (“WHD”)
• WHD is a full-service law firm founded in 1943. Much has changed since then, but,
throughout, there remains a notable constant: WHD's commitment to the success of each
client. Just as experience is important in other types of business, legal experience is an
essential component in WHD’s ability to deliver effective and efficient services. With more
than 150 professionals, WHD offers clients the legal experience necessary to provide the
technical, yet practical, advice that every client deserves. Many of WHD’s attorneys have
gone beyond the study of law and have earned graduate degrees in a wide variety of fields
including engineering, medicine, business, technology, tax, political science and dispute
resolution.
36
Tax Incremental Financing Application – Morgan District Redevelopment
Project Budget/Financial Information
Summary Sources and Uses
Site 1
Site 2
Site 3
Site 4
Site 5
37
Morgan District Redevelopment
Summary of Sources and Uses
Timing Phase I: 2016 Phase II: 2017 Phase III: 2018 Phase IV: 2018 Phase V: 2019
Sources
Site I Site II Site III Site IV Site V Total
Private First Mortgage 12,700,000$ 5,500,000$ 11,100,000$ 3,500,000$ 7,600,000$ 40,400,000$
Equity 5,961,521$ 1,400,000$ 3,200,000$ 2,340,500$ 1,900,000$ 14,802,021$
Monetized TIF Note 4,037,000$ 1,615,000$ 3,018,000$ 2,179,000$ 1,595,000$ 12,444,000$
Deferred Developers Fee 297,979$ 146,500$ 220,000$ -$ 325,400$ 989,879$
22,996,500$ 8,661,500$ 17,538,000$ 8,019,500$ 11,420,400$ 68,635,900$
Uses
Land 175,000$ 225,000$ 245,000$ 200,000$ 80,000$ 925,000$
Site Work 4,400,000$ 782,000$ 1,960,000$ 280,000$ 1,960,000$ 9,382,000$
Hard Costs 16,800,000$ 6,240,000$ 12,900,000$ 6,487,000$ 7,400,000$ 49,827,000$
Soft Costs 387,500$ 225,000$ 790,500$ 795,000$ 637,500$ 2,835,500$
Financing Fees 562,500$ 375,000$ 787,500$ 187,500$ 587,500$ 2,500,000$
Professional Fees 34,500$ 34,500$ 85,000$ 70,000$ 105,400$ 329,400$
Developer Fee/Reserves 637,000$ 780,000$ 770,000$ -$ 650,000$ 2,837,000$
22,996,500$ 8,661,500$ 17,538,000$ 8,019,500$ 11,420,400$ 68,635,900$
NOTE: PHASE I ONLY: Since the first TIF application was submitted to the City in September 2014, the federal New Markets Tax Credit (“NMTC”) program and a
grant from the State of Wisconsin have been identified as potential sources for supporting the development of the grocery store and infrastructure needs for site 1.
The funding from these two sources, if any, have not been quantified or included in the financial analysis because the programs require applications and approvals
from various agencies. However, the financial gap for site 1 is large enough that TIF assistance in addition to support from other programs is required. Community
Development Entities (“CDEs”), the intermediaries that award NMTC allocations, and the State of Wisconsin will look favorably on the Project with the TIF
commitment from the City. It will demonstrate a strong public-private partnership. Baker Tilly Virchow Krause, LLP is assisting the Developer in the process of
applying to CDEs for a NMTC allocation. More information about these programs can be provided in the future as the Project moves forward.
38
DRAFT
TIF Application Update Supporting Model
Oregon & West 5th Avenue - Oshkosh, WI
Financial Model
12/8/2015
Morgan District Site I, LLC
NOTE: Since the first TIF application was submitted to the City in September 2014, the federal New Markets Tax Credit (“NMTC”) program and a grant from the State
of Wisconsin have been identified as potential sources for supporting the development of the grocery store and infrastructure needs for site 1. The funding from
these two sources, if any, have not been quantified or included in the financial analysis because the programs require applications and approvals from various
agencies. However, the financial gap for site 1 is large enough that TIF assistance in addition to support from other programs is required. Community Development
Entities (“CDEs”), the intermediaries that award NMTC allocations, and the State of Wisconsin will look favorably on the Project with the TIF commitment from the
City. It will demonstrate a strong public-private partnership. Baker Tilly Virchow Krause, LLP is assisting the Developer in the process of applying to CDEs for a
NMTC allocation. More information about these programs can be provided in the future as the Project moves forward.
12/8/2015
39
Morgan District Site I, LLC
PROJECT ASSUMPTIONS 1.25
PROJECT INFORMATION FINANCING ASSUMPTIONS Equity Information
Owner:Morgan District Site I, LLC Construction Loan A 12,997,979$ General Partner's Capital Contribution Percent of Ownership
Interest rate 4.50%Entry Date:Year 2016 General Partner 0.01%
County Winnebago Term (months)24 Month 1 Investor 99.99%
MFI 69,500$ Day 1 Total 100.00%
First Mortgage 12,700,000$
Number of Units 121 Interest Rate 4.50%Equity $5,961,521 Cash Flow Distribution
Amortization 20 General Partner 0.01%
LP Formation 2009 Term 15 Investor 99.99%
Year 2016 Lender Required DCR 1.25 Total 100.00%
Month 1 Start Year 2016
Start Month 1 Income, Loss & Credits
Construction Start General Partner 0.01%
Year 2016 Monetized TIF Note 4,037,000$ Investor 99.99%
Month 1 Interest Rate 0.00% Total 100.00%
Amortization 0
Construction Period 12 Term 0 Sale Proceeds Distribution
Start Year 2015 General Partner 0.01%
Operations Start Month 4 Investor 99.99%
Year 2017 Total 100.00%
Month 1 New Markets Tax Credits/State Grant -$
Interest Rate 0.00%
Placed in Service Date Amortization Cash Flow
Year 2017 Term 0
Month 1 Start Year 0
Day 1 Start Month 0
Deferred Developer Fee 297,979$
Interest Rate 0.00%
5,961,521
PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/8/2015
40
Morgan District Site I, LLC
PROJECT ASSUMPTIONS
OPERATING EXPENSES Residential Per Unit Commercial
Professional Fees 200,000 1,653 12,000
Maintenance & Repairs 100,000 826 12,000
Operating Expenses 100,000 826 6,000
Insurance 100,000 826 6,000
Real Estate Taxes - - Based on RE Tax calc
500,000 4,132 36,000 Total Recoverable Expenses (Commercial Only)
Replacement Reserve - - 16,920
Property Management Fee - - 28,200
Total 500,000 4,132 81,120 Total Annual Expense
Annual Operating Exp. Increase 3.00%
Annual Real Estate Tax Increase 3.00%
Annual Management Fee Increase 3.00%
Annual Reserve Increase 3.00%
Interest rate on reserves 0.15%
Annual Commercial Exp. Increase 2.00%
RENTAL INCOME
Number of SF per Rent Monthly Monthly Monthly Annual Annual
Bedrooms Units Baths Unit*PSF/month Net Rent Utility/CAM Gross Rent Net Rent Gross Rent
Commercial Space 1 NA 35,000 14.00$ $40,833 490,000 0
Apartment Building 120 NA 900 925.00$ 925.00$ 1,332,000 0
Total 121 143,000 1,822,000 0
COMMERCIAL INCOME
INCOME Base Gross Commercial Income 1,822,000$
Base Gross Rent 1,822,000$ Commercial Expense Recovery 100%
Rent Increases 2.00%Commercial Expense Reimbursement -$
Income Increases 2.00%Commercial Income Increase 2.0%
Vacancy Loss 5.00%Commercial Vacancy 5.0%
Other Income (PUPM)-$ Other Income PSF -$
Other Income (annually)-$ Other Income (annually)-$
Stabilized NOI 1,189,480
Cap Rate 8.50%
Fair market Value (Income Approach)13,993,882 appraisal
Cap Rate 9.00%
Fair market Value (Income Approach)13,216,444 assessed value
PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/8/2015
41
Morgan District Site I, LLC
SOURCES AND USES
SOURCES OF FUNDS Construction
Post
Construction Permanent
First Mortgage -$ 12,700,000$ 12,700,000$
Equity 5,961,521 - 5,961,521
Monetized TIF Note 4,037,000 - 4,037,000
New Markets Tax Credits/State Grant - - -
Deferred Developers Fee - 297,979 297,979
Construction Loan 12,997,979 (12,997,979) -
Total Sources Of Funds 22,996,500$ -$ 22,996,500$
$0 $0 $0
Post Total
USES OF FUNDS Construction Construction Permanent
Land Acquisition 175,000 - 175,000
Site Work
Excavation/ Erosion Control 187,500 - 187,500
Environmental/ Disposal 137,500 - 137,500
Site Utilities 618,500 - 618,500
Site Concrete 157,500 - 157,500
Asphalt Paving 380,000 - 380,000
Landscaping 125,000 - 125,000
Utility Allowance 200,000 - 200,000
Site Lighting 75,000 - 75,000
Signage 75,000 - 75,000
Rammed Agg. Piers 500,000 - 500,000
Construction Contingency 190,400 - 190,400
Hard Costs
Apartment/Commercial Building 18,363,200 - 18,363,200
Soft Costs
Architecture 187,500 - 187,500
Engineering 315,400 - 315,400
Title 20,000 - 20,000
Building Permit 10,000 - 10,000
Real Estate Taxes 5,000 - 5,000
Marketing 15,000 - 15,000
Insurance 25,000 - 25,000
Financing Fees
Financing Fees 62,500 - 62,500
Construction Loan Interest 500,000 - 500,000
Professional Fees
Appraisal 5,000 - 5,000
Market Study 4,500 - 4,500
Legal/Accounting 25,000 - 25,000
Developer Fees / Reserves
Developer Fee 637,000 - 637,000
Total Uses Of Funds 22,996,500$ -$ 22,996,500$
PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/8/2015
42
Morgan District Site I, LLC
FORECAST OF NET CASH FLOW FROM OPERATIONS
1 2 3 4 5 6 7 8 9 10
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
INCOME
Residential:
Rental Income 721,503 1,332,000 1,358,640 1,385,813 1,413,529 1,441,800 1,470,636 1,500,048 1,530,049 1,560,650
Vacancy -5.00%- (66,600) (67,932) (69,291) (70,676) (72,090) (73,532) (75,002) (76,502) (78,033)
EGI Residential 721,503 1,265,400 1,290,708 1,316,522 1,342,853 1,369,710 1,397,104 1,425,046 1,453,547 1,482,617
Commercial:
Base Gross Commercial Income 408,333 490,000 499,800 509,796 519,992 530,392 541,000 551,820 562,856 574,113
Commercial Expense Reimbursement 10,658 219,854 409,944 421,875 434,157 446,800 459,814 473,211 487,003 501,199
Commercial Vacancy (20,417) (24,500) (24,990) (25,490) (26,000) (26,520) (27,050) (27,591) (28,143) (28,706)
EGI Commercial 398,574 685,354 884,754 906,182 928,150 950,672 973,764 997,439 1,021,716 1,046,606
Total Effective Gross Income 1,120,078 1,950,754 2,175,462 2,222,703 2,271,003 2,320,381 2,370,867 2,422,486 2,475,263 2,529,223
EXPENSES
Residential
Professional Fees 108,820 200,000 206,000 212,180 218,545 225,101 231,854 238,810 245,974 253,353
Maintenance & Repairs 54,410 100,000 103,000 106,090 109,273 112,551 115,928 119,406 122,988 126,678
Operating Expenses 54,410 100,000 103,000 106,090 109,273 112,551 115,928 119,406 122,988 126,678
Insurance 54,410 100,000 103,000 106,090 109,273 112,551 115,928 119,406 122,988 126,678
Residential Operating Expenses 272,050 500,000 515,000 530,450 546,364 562,754 579,638 597,028 614,938 633,387
Commercial
Professional Fees 6,529 12,000 12,240 12,485 12,734 12,989 13,249 13,514 13,784 14,060
Maintenance & Repairs 6,529 12,000 12,240 12,485 12,734 12,989 13,249 13,514 13,784 14,060
Operating Expenses 3,265 6,000 6,120 6,242 6,367 6,495 6,624 6,757 6,892 7,030
Insurance 3,265 6,000 6,120 6,242 6,367 6,495 6,624 6,757 6,892 7,030
Real Estate Taxes - 183,854 373,224 384,421 395,954 407,832 420,067 432,669 445,650 459,019
Management Fee 20,417 24,500 24,990 25,490 26,000 26,520 27,050 27,591 28,143 28,706
Reserve for Replacement 3.00%- 16,920 17,428 17,950 18,489 19,044 19,615 20,203 20,809 21,434
Commercial Operating Expenses 40,004 261,274 452,362 465,316 478,646 492,363 506,479 521,005 535,955 551,338
Total Operating Expenses 312,054 761,274 967,362 995,766 1,025,010 1,055,117 1,086,117 1,118,033 1,150,893 1,184,725
Net Operating Income 808,023 1,189,480 1,208,100 1,226,938 1,245,993 1,265,265 1,284,750 1,304,453 1,324,370 1,344,498
Debt Service
Debt Service - 1st mortgage - 964,158 964,158 964,158 964,158 964,158 964,158 964,158 964,158 964,158
DSCR- 1st - 1.23 1.25 1.27 1.29 1.31 1.33 1.35 1.37 1.39
Cash Flow 808,023 225,322 243,943 262,780 281,835 301,107 320,593 340,295 360,213 380,341
PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/8/2015
43
Morgan District Site I, LLC
Before Tax Cash Flow Equity Analysis
With TIF Note Without TIF Note
IRR -3.62%-10.31%
Period Year
Projected Cash
Flows Projected Cash Flows
0 2016 (5,961,521)$ (9,998,521)$ Equity Required
1 2017 808,023$ 808,023$
2 2018 225,322$ 225,322$
3 2019 243,943$ 243,943$
4 2020 262,780$ 262,780$
5 2021 281,835$ 281,835$
6 2022 301,107$ 301,107$
7 2023 320,593$ 320,593$
8 2024 340,295$ 340,295$
9 2025 360,213$ 360,213$
10 2026 1,532,768$ 1,532,768$ Cash Flow Year 10 + Proceeds from Reversion
Proceeds from Reversion Analysis
Year 10 NOI 1,344,498$ Per Cash Flow Tab
Cap Rate @ Sell 7.0%
Sales Price 19,207,119$ NOI/Cap Rate
Selling Expenses 1,152,427$ 6%
Net Sales Price 18,054,692$ SP - SE
Gain/Proceeds from Reversion 1,152,427$
NOTE: Project not financially
feasible but for other sources
discussed in the application
narrative (not detailed here)
and the monetized TIF note to
reduce equity required for
development
44
DRAFT
TIF Application Update Supporting Model
Oregon & West 5th Avenue - Oshkosh, WI
Financial Model
12/3/2015
Morgan District Site II, LLC
12/3/2015
45
Morgan District Site II, LLC
PROJECT ASSUMPTIONS
PROJECT INFORMATION FINANCING ASSUMPTIONS Equity Information
Owner:Morgan District Site II, LLC Construction Loan A 5,646,500$ General Partner's Capital Contribution Percent of Ownership
Interest rate 4.50%Entry Date:Year 2015 General Partner 0.01%
County Winnebago Term (months)24 Month 1 Investor 99.99%
MFI 69,500$ Day 1 Total 100.00%
First Mortgage 5,500,000$
Number of Units 2 Interest Rate 4.50%Equity $1,400,000 Cash Flow Distribution
Amortization 20 General Partner 0.01%
LP Formation 2009 Term 15 Investor 99.99%
Year 2017 Lender Required DCR 1.25 Total 100.00%
Month 1 Start Year 2016
Start Month 1 Income, Loss & Credits
Construction Start General Partner 0.01%
Year 2017 Monetized TIF Note 1,615,000$ Investor 99.99%
Month 1 Interest Rate 0.00% Total 100.00%
Amortization 0
Construction Period 12 Term 0 Sale Proceeds Distribution
Start Year 2015 General Partner 0.01%
Operations Start Month 4 Investor 99.99%
Year 2018 Total 100.00%
Month 1 State Funds -$
Interest Rate 0.00%
Placed in Service Date Amortization Cash Flow
Year 2018 Term 0
Month 1 Start Year 0
Day 1 Start Month 0
Deferred Developer Fee 146,500$
Interest Rate 0.00%
1,400,000
PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/3/2015
46
Morgan District Site II, LLC
PROJECT ASSUMPTIONS
OPERATING EXPENSES Residential Per Unit Commercial
Professional Fees - - 12,000
Maintenance & Repairs - - 12,000
Operating Expenses - - 6,000
Insurance - - 6,000
Real Estate Taxes - - Based on RE tax Calc
- - 36,000 Total Recoverable Expenses (Commercial Only)
Replacement Reserve - - 20,160
Property Management Fee - - 36,600
Total - - 92,760 Total Annual Expense
Annual Operating Exp. Increase 3.00%
Annual Real Estate Tax Increase 3.00%
Annual Management Fee Increase 3.00%
Annual Reserve Increase 3.00%
Interest rate on reserves 0.15%
Annual Commercial Exp. Increase 2.00%
RENTAL INCOME
Number of SF per Rent Monthly Monthly Monthly Annual Annual
Bedrooms Units Baths Unit*PSF Net Rent Utility/CAM Gross Rent Net Rent Gross Rent
Building 1 1 NA 24,000 14.00$ $28,000 336,000 0
Building 2 1 NA 24,000 14.00$ $28,000 336,000 0
Total 2 48,000 672,000 0
COMMERCIAL INCOME
RESIDENTIAL INCOME Base Gross Commercial Income 672,000$
Base Gross Residential Rent -$ Commercial Expense Recovery 100%
Rent Increases 2.00%Commercial Expense Reimbursement -$
Residential Income Increases 2.00%Commercial Income Increase 2.0%
Residential Vacancy Loss 5.00%Commercial Vacancy 5.0%
Other Income (PUPM)-$ Other Income PSF -$
Other Income (annually)-$ Other Income (annually)-$
Stabilized NOI:584,640
Cap Rate 8.50%
Fair Market Value (Income Approach)6,878,118 appraisal
Cap rate 9.00%
Fair Market Value (Income Approach)6,496,000 Assessed Value
PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/3/2015
47
Morgan District Site II, LLC
SOURCES AND USES
SOURCES OF FUNDS Construction
Post
Construction Permanent
First Mortgage -$ 5,500,000$ 5,500,000$
Equity 1,400,000 - 1,400,000
Monetized TIF Note 1,615,000 - 1,615,000
Deferred Developers Fee - 146,500 146,500
Construction Loan 5,646,500 (5,646,500) -
Total Sources Of Funds 8,661,500$ -$ 8,661,500$
$0 $0 $0
Post Total
USES OF FUNDS Construction Construction Permanent
Land Acquisition 225,000 - 225,000
Site Work
Excavation/ Erosion Control 125,000 - 125,000
Environmental/ Disposal 70,000 - 70,000
Site Utilities 60,000 - 60,000
Site Concrete 72,000 - 72,000
Asphalt Paving 105,000 - 105,000
Landscaping 50,000 - 50,000
Utility Allowance 30,000 - 30,000
Site Lighting 30,000 - 30,000
Signage 35,000 - 35,000
Rammed Agg. Piers 205,000 - 205,000
Hard Costs
Office Building #1 2,400,000 - 2,400,000
Office Building # 2 2,400,000 - 2,400,000
Office Interior Finish 1,440,000 - 1,440,000
Soft Costs
Architecture 100,000 - 100,000
Engineering 50,000 - 50,000
Title 20,000 - 20,000
Building Permit 10,000 - 10,000
Real Estate Taxes 5,000 - 5,000
Marketing 15,000 - 15,000
Insurance 25,000 - 25,000
Financing Fees
Financing Fees 50,000 - 50,000
Construction Loan Interest 325,000 - 325,000
Professional Fees
Appraisal 5,000 - 5,000
Market Study 4,500 - 4,500
Legal/Accounting 25,000 - 25,000
Developer Fees / Reserves
Developer Fee 780,000 - 780,000
Total Uses Of Funds 8,661,500$ -$ 8,661,500$
PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/3/2015
48
Morgan District Site II, LLC
FORECAST OF NET CASH FLOW FROM OPERATIONS
1 2 3 4 5 6 7 8 9 10
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
INCOME
Commercial:
Base Gross Commercial Income 532,000 672,000 685,440 699,149 713,132 727,394 741,942 756,781 771,917 787,355
Commercial Expense Reimbursement 45,563 116,677 200,494 206,141 211,951 217,928 224,076 230,401 236,907 243,601
Commercial Vacancy (26,600) (33,600) (34,272) (34,957) (35,657) (36,370) (37,097) (37,839) (38,596) (39,368)
EGI Commercial 550,963 755,077 851,662 870,333 889,427 908,952 928,921 949,343 970,228 991,588
Total Effective Gross Income 550,963 755,077 851,662 870,333 889,427 908,952 928,921 949,343 970,228 991,588
EXPENSES
Commercial
Professional Fees 13,500 12,000 12,240 12,485 12,734 12,989 13,249 13,514 13,784 14,060
Maintenance & Repairs 13,500 12,000 12,240 12,485 12,734 12,989 13,249 13,514 13,784 14,060
Operating Expenses 6,750 6,000 6,120 6,242 6,367 6,495 6,624 6,757 6,892 7,030
Insurance 6,750 6,000 6,120 6,242 6,367 6,495 6,624 6,757 6,892 7,030
Real Estate Taxes - 80,677 163,774 168,687 173,748 178,960 184,329 189,859 195,554 201,421
Management Fee 26,600 33,600 34,272 34,957 35,657 36,370 37,097 37,839 38,596 39,368
Reserve for Replacement 3.00%- 20,160 20,765 21,388 22,029 22,690 23,371 24,072 24,794 25,538
Commercial Operating Expenses 67,100 170,437 255,531 262,487 269,637 276,988 284,544 292,312 300,297 308,507
Total Operating Expenses 67,100 170,437 255,531 262,487 269,637 276,988 284,544 292,312 300,297 308,507
Net Operating Income 483,863 584,640 596,131 607,846 619,789 631,965 644,377 657,031 669,931 683,082
Debt Service
Debt Service - 1st mortgage - 417,549 417,549 417,549 417,549 417,549 417,549 417,549 417,549 417,549
DSCR- 1st - 1.40 1.43 1.46 1.48 1.51 1.54 1.57 1.60 1.64
Cash Flow 483,863 167,091 178,583 190,298 202,241 214,416 226,829 239,482 252,382 265,533
PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/3/2015
49
Morgan District Site II, LLC
Before Tax Cash Flow Equity Analysis
With TIF Note Without TIF Note
IRR 14.63%-0.77%
Period Year
Projected Cash
Flows
Projected Cash
Flows
0 2016 (1,400,000)$ (3,015,000)$ Equity Required
1 2017 483,863$ 483,863$
2 2018 167,091$ 167,091$
3 2019 178,583$ 178,583$
4 2020 190,298$ 190,298$
5 2021 202,241$ 202,241$
6 2022 214,416$ 214,416$
7 2023 226,829$ 226,829$
8 2024 239,482$ 239,482$
9 2025 252,382$ 252,382$
10 2026 720,921$ 720,921$ Cash Flow Year 10 + Proceeds from Reversion
Proceeds from Reversion Analysis
Year 10 NOI 683,082$ Per Cash Flow Tab
Cap Rate @ Sell 9.0%
Sales Price 7,589,795$ NOI/Cap Rate
Selling Expenses 455,388$ 6%
Net Sales Price 7,134,407$ SP - SE
Gain/Proceeds from Reversion 455,388$
NOTE: Project not financially
feasible but for the monetized
TIF note to reduce equity
required for development
50
DRAFT
TIF Application Supporting Model
Oregon & West 5th Avenue - Oshkosh, WI
Financial Model
12/9/2015
Morgan District Site III, LLC
Multi Family Units
12/9/2015
51
Morgan District Site III, LLC
PROJECT ASSUMPTIONS 1.25
PROJECT INFORMATION FINANCING ASSUMPTIONS Equity Information
Owner:Morgan District Site III, LLC Construction Loan A 11,320,000$ General Partner's Capital Contribution Percent of Ownership
Interest rate 4.50%Entry Date:Year 2015 General Partner 0.01%
County Winnebago Term (months)24 Month 1 Investor 99.99%
MFI 69,500$ Day 1 Total 100.00%
First Mortgage 11,100,000$
Number of Units 156 Interest Rate 4.50%Equity $3,200,000 Cash Flow Distribution
Amortization 20 General Partner 0.01%
LP Formation 2009 Term 15 Investor 99.99%
Year 2015 Lender Required DCR 1.25 Total 100.00%
Month 1 Start Year 2016
Start Month 1 Income, Loss & Credits
Construction Start General Partner 0.01%
Year 2015 Monetized TIF Note 3,018,000$ Investor 99.99%
Month 1 Interest Rate 0.00% Total 100.00%
Amortization 0
Construction Period 12 Term 0 Sale Proceeds Distribution
Start Year 2015 General Partner 0.01%
Operations Start Month 4 Investor 99.99%
Year 2018 Total 100.00%
Month 1 State Funds -$
Interest Rate 0.00%
Placed in Service Date Amortization Cash Flow
Year 2018 Term 0
Month 1 Start Year 0
Day 1 Start Month 0
Deferred Developer Fee 220,000$
Interest Rate 0.00%
3,200,000
PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/9/2015
52
Morgan District Site III, LLC
PROJECT ASSUMPTIONS
OPERATING EXPENSES Residential Per Unit Commercial
Professional Fees 25,000 160 0
Maintenance & Repairs 41,000 263 0
Operating Expenses 70,000 449 0
Insurance 50,000 321 0
Real Estate Taxes - - 0 Based on RE Tax Calc
186,000 1,192 - Total Recoverable Expenses (Commercial Only)
Replacement Reserve - - -
Property Management Fee 81,713 524 0
Total 267,713 1,716 0 Total Annual Expense
Annual Operating Exp. Increase 3.00%
Annual Real Estate Tax Increase 3.00%
Annual Management Fee Increase 3.00%
Annual Reserve Increase 3.00%
Interest rate on reserves 0.15%
Annual Commercial Exp. Increase 2.00%
765,000
RENTAL INCOME
Number of SF per Rent Monthly Monthly Monthly Annual Annual
Bedrooms Units Baths Unit*PSF Net Rent Utility/CAM Gross Rent Net Rent Gross Rent
TBD 156 0 850 900.00$ $140,400 $0 140,400 1,684,800 0
Total 156 132,600 1,684,800 0
COMMERCIAL INCOME
RESIDENTIAL INCOME Base Gross Commercial Income -$
Base Gross Residential Rent 1,684,800$ Commercial Expense Recovery 100%
Rent Increases 2.00%Commercial Expense Reimbursement -$
Residential Income Increases 2.00%Commercial Income Increase 2.0%
Residential Vacancy Loss 3.00%Commercial Vacancy 5.0%
Other Income (PUPM)-$ Other Income PSF -$
Other Income (annually)-$ Other Income (annually)-$
Stabilized NOI 1,201,633
Cap Rate 7.750%
Fair Market Value (Income Approach)15,504,945 appraisal
Cap Rate 8.250%
Fair Market Value (Income Approach)14,565,251
PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/9/2015
53
Morgan District Site III, LLC
SOURCES AND USES
SOURCES OF FUNDS Construction
Post
Construction Permanent
First Mortgage -$ 11,100,000$ 11,100,000$
Equity 3,200,000 - 3,200,000
Monetized TIF Note 3,018,000 - 3,018,000
Deferred Developers Fee - 220,000 220,000
Construction Loan 11,320,000 (11,320,000) -
Total Sources Of Funds 17,538,000$ -$ 17,538,000$
$0 $0 $0
Post Total
USES OF FUNDS Construction Construction Permanent
Land Acquisition 245,000 - 245,000
Site Work
Excavation/ Erosion Control 350,000 - 350,000
Environmental/ Disposal 175,000 - 175,000
Site Utilities 140,000 - 140,000
Site Concrete 105,000 - 105,000
Asphalt Paving 245,000 - 245,000
Landscaping 105,000 - 105,000
Utility Allowance 52,500 - 52,500
Site Lighting 52,500 - 52,500
Signage 35,000 - 35,000
Rammed Agg. Piers 700,000 - 700,000
Hard Costs
2 large MF Buildings 12,900,000 - 12,900,000
Soft Costs
Architecture 262,500 - 262,500
Engineering 175,000 - 175,000
Title 100,000 - 100,000
Building Permit 75,000 - 75,000
Real Estate Taxes 25,000 - 25,000
Marketing 78,000 - 78,000
Insurance 75,000 - 75,000
Soft Cost Contingency - - -
Financing Fees
Financing Fees 87,500 - 87,500
Construction Loan Interest 700,000 - 700,000
Professional Fees
Appraisal 10,000 - 10,000
Soil Testing 15,000 - 15,000
Market Study 10,000 - 10,000
Legal/Accounting 50,000 - 50,000
Developer Fees / Reserves
Developer Fee 770,000 - 770,000
Reserves and Escrows - - -
Total Uses Of Funds 17,538,000$ -$ 17,538,000$
PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/9/2015
54
Morgan District Site III, LLC
FORECAST OF NET CASH FLOW FROM OPERATIONS
1 2 3 4 5 6 7 8 9 10
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
INCOME
Residential:
Rental Income 1,238,400 1,684,800 1,718,496 1,752,866 1,787,923 1,823,682 1,860,155 1,897,358 1,935,306 1,974,012
Other Income - - - - - - - - - -
Vacancy -3.00%- (50,544) (51,555) (52,586) (53,638) (54,710) (55,805) (56,921) (58,059) (59,220)
EGI Residential 1,238,400 1,634,256 1,666,941 1,700,280 1,734,285 1,768,972 1,804,350 1,840,437 1,877,247 1,914,792
Total Effective Gross Income 1,238,400 1,634,256 1,666,941 1,700,280 1,734,285 1,768,972 1,804,350 1,840,437 1,877,247 1,914,792
EXPENSES
Residential
Professional Fees 18,110 25,000 25,750 26,523 27,319 28,139 28,983 29,852 30,748 31,670
Maintenance & Repairs 29,700 41,000 42,230 43,497 44,802 46,146 47,530 48,956 50,425 51,938
Operating Expenses 50,708 70,000 72,100 74,263 76,491 78,786 81,150 83,585 86,093 88,676
Insurance 36,220 50,000 51,500 53,045 54,636 56,275 57,964 59,703 61,494 63,339
Real Estate Taxes - 164,910 334,766 344,809 355,154 365,808 376,783 388,086 399,729 411,720
Management Fee 61,920 81,713 83,347 85,014 86,714 88,449 90,218 92,022 93,862 95,740
Reserve for Replacement 3.00%- - - - - - - - - -
Residential Operating Expenses 196,658 432,623 609,693 627,151 645,117 663,603 682,627 702,203 722,351 743,082
Total Operating Expenses 196,658 432,623 609,693 627,151 645,117 663,603 682,627 702,203 722,351 743,082
Net Operating Income 1,041,742 1,201,633 1,057,248 1,073,129 1,089,169 1,105,369 1,121,723 1,138,234 1,154,896 1,171,710
Debt Service
Debt Service - 1st mortgage - 842,689 842,689 842,689 842,689 842,689 842,689 842,689 842,689 842,689
DSCR- 1st - 1.43 1.25 1.27 1.29 1.31 1.33 1.35 1.37 1.39
Cash Flow 1,041,742 358,944 214,559 230,440 246,480 262,680 279,034 295,545 312,207 329,021
PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/9/2015
55
Morgan District Site III, LLC
Before Tax Cash Flow Equity Analysis
With TIF Note Without TIF Note
IRR 6.88%-4.88%
Period Year
Projected Cash
Flows
Projected Cash
Flows
0 2016 (3,200,000)$ (6,218,000)$ Equity Required
1 2017 1,041,742$ 1,041,742$
2 2018 358,944$ 358,944$
3 2019 214,559$ 214,559$
4 2020 230,440$ 230,440$
5 2021 246,480$ 246,480$
6 2022 262,680$ 262,680$
7 2023 279,034$ 279,034$
8 2024 295,545$ 295,545$
9 2025 312,207$ 312,207$
10 2026 1,333,343$ 1,333,343$ Cash Flow Year 10 + Proceeds from Reversion
Proceeds from Reversion Analysis
Year 10 NOI 1,171,710$ Per Cash Flow Tab
Cap Rate @ Sell 7.0%
Sales Price 16,738,709$ NOI/Cap Rate
Selling Expenses 1,004,323$ 6%
Net Sales Price 15,734,387$ SP - SE
Gain/Proceeds from Reversion 1,004,323$
NOTE: Project not financially
feasible but for the monetized
TIF note to reduce equity
required for development
56
Morgan District Redevelopment
Site IV
For Sale Waterfront Condos
Total Units 24 24
Sources Per Unit Per Unit
Equity 2,340,500 97,521 4,519,500 188,313
Debt 3,500,000 145,833 3,500,000 145,833
TIF 2,179,000 90,792 0 0
Total Sources 8,019,500$ 334,146$ 8,019,500$ 334,146$
Uses
Land Acquisition 200,000 8,333 200,000 8,333
Site Work 280,000 11,667 280,000 11,667
Hard Costs 6,487,000 270,292 6,487,000 270,292
Soft Costs 795,000 33,125 795,000 33,125
Financing Fees 187,500 7,813 187,500 7,813
Professional Fees 70,000 2,917 70,000 2,917
Developer Fee/Reserves 0 0 0 0
Total Uses 8,019,500$ 334,146$ 8,019,500$ 334,146$
Sales Price (Avg Per Unit)375,000$ 375,000$
Gross Profit 9,000,000$ 9,000,000$
SE @ 7% of GP 630,000$ 26,250 630,000$ 26,250
Net Profit 350,500$ 14,604 350,500$ 14,604
Return on Equity (before tax)15.0%7.8%
With TIF Note Without TIF Note
57
DRAFT
TIF Application Update Supporting Model
Oregon & West 5th Avenue - Oshkosh, WI
Financial Model
12/9/2015
Morgan District Site V, LLC
9 Townhouse Buildings - 108 Units
12/9/2015
58
Morgan District Site V, LLC
PROJECT ASSUMPTIONS
PROJECT INFORMATION FINANCING ASSUMPTIONS Equity Information
Owner:Morgan District Site V, LLC Construction Loan A 7,925,400$ General Partner's Capital Contribution Percent of Ownership
Interest rate 4.50%Entry Date:Year 2019 General Partner 0.01%
County Winnebago Term (months)24 Month 1 Investor 99.99%
MFI 69,500$ Day 1 Total 100.00%
First Mortgage 7,600,000$
Number of Units 108 Interest Rate 4.50%Equity $1,900,000 Cash Flow Distribution
Amortization 20 General Partner 0.01%
LP Formation 2009 Term 15 Investor 99.99%
Year 2019 Lender Required DCR 1.2 Total 100.00%
Month 1 Start Year 2016
Start Month 1 Income, Loss & Credits
Construction Start General Partner 0.01%
Year 2019 Monetized TIF Note 1,595,000$ Investor 99.99%
Month 1 Interest Rate 0.00% Total 100.00%
Amortization 0
Construction Period 12 Term 0 Sale Proceeds Distribution
Start Year 2015 General Partner 0.01%
Operations Start Month 4 Investor 99.99%
Year 2020 Total 100.00%
Month 1 State Funds -$
Interest Rate 0.00%
Placed in Service Date Amortization Cash Flow
Year 2020 Term 0
Month 1 Start Year 0
Day 1 Start Month 0
Deferred Developer Fee 325,400$
Interest Rate 0.00%
1,900,000
PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/9/2015
59
Morgan District Site V, LLC
PROJECT ASSUMPTIONS
OPERATING EXPENSES Residential Per Unit Commercial
Professional Fees 25,000 231 0
Maintenance & Repairs 50,000 463 0
Operating Expenses 25,000 231 0
Insurance 40,000 370 0
Real Estate Taxes - - 0 Based on RE Tax Calc
140,000 1,296 - Total Recoverable Expenses (Commercial Only)
Replacement Reserve - - -
Property Management Fee 56,570 524 0
Total 196,570 1,820 0 Total Annual Expense
Annual Operating Exp. Increase 3.00%
Annual Real Estate Tax Increase 3.00%
Annual Management Fee Increase 3.00%
Annual Reserve Increase 3.00%
Interest rate on reserves 0.15%
Annual Commercial Exp. Increase 2.00%
RENTAL INCOME
Number of SF per Rent Monthly Monthly Monthly Annual Annual
Bedrooms Units Baths Unit*PSF Net Rent Utility/CAM Gross Rent Net Rent Gross Rent
TBD 108 TBD 900 1.11$ $97,200 $0 97,200 1,166,400 0
Total 108 97,200 1,166,400 0
COMMERCIAL INCOME
RESIDENTIAL INCOME Base Gross Commercial Income -$
Base Gross Residential Rent 1,166,400$ Commercial Expense Recovery 100%
Rent Increases 2.00%Commercial Expense Reimbursement -$
Residential Income Increases 2.00%Commercial Income Increase 2.0%
Residential Vacancy Loss 3.00%Commercial Vacancy 5.0%
Other Income (PUPM)15.00$ Other Income PSF -$
Other Income (annually)19,440$ Other Income (annually)-$
Stabilized NOI 820,670
Cap Rate 8.00%
Fair market Value (Income Approach)10,258,370 Appraisal
Cap Rate 8.25%
Fair market Value (Income Approach)9,947,510 Assessed Value
PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/9/2015
60
Morgan District Site V, LLC
SOURCES AND USES
SOURCES OF FUNDS Construction
Post
Construction Permanent
First Mortgage -$ 7,600,000$ 7,600,000$
Equity 1,900,000 - 1,900,000
Monetized TIF Note 1,595,000 - 1,595,000
Deferred Developers Fee - 325,400 325,400
Construction Loan 7,925,400 (7,925,400) -
Total Sources Of Funds 11,420,400$ -$ 11,420,400$
$0 $0 $0
Post Total
USES OF FUNDS Construction Construction Permanent
Land Acquisition 80,000 - 80,000
Site Work
Excavation/ Erosion Control 350,000 - 350,000
Environmental/ Disposal 175,000 - 175,000
Site Utilities 140,000 - 140,000
Site Concrete 105,000 - 105,000
Asphalt Paving 245,000 - 245,000
Landscaping 105,000 - 105,000
Utility Allowance 52,500 - 52,500
Site Lighting 52,500 - 52,500
Signage 35,000 - 35,000
Rammed Agg. Piers 700,000 - 700,000
Hard Costs
9 - Townhouse Buildings 7,400,000 - 7,400,000
Soft Costs
Architecture 262,500 - 262,500
Engineering 175,000 - 175,000
Title 40,000 - 40,000
Building Permit 20,000 - 20,000
Real Estate Taxes 15,000 - 15,000
Marketing 75,000 - 75,000
Insurance 50,000 - 50,000
Financing Fees
Financing Fees 87,500 - 87,500
Construction Loan Interest 500,000 - 500,000
Professional Fees
Appraisal 10,000 - 10,000
Soil Testing 15,000 - 15,000
Market Study 8,000 - 8,000
Legal/Accounting 40,000 - 40,000
Commissions 32,400 - 32,400
Developer Fees / Reserves
Developer Fee 650,000 - 650,000
Total Uses Of Funds 11,420,400$ -$ 11,420,400$
PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/9/2015
61
Morgan District Site V, LLC
FORECAST OF NET CASH FLOW FROM OPERATIONS
1 2 3 4 5 6 7 8 9 10
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
INCOME
Residential:
Rental Income 637,200 1,166,400 1,189,728 1,213,523 1,237,793 1,262,549 1,287,800 1,313,556 1,339,827 1,366,624
Vacancy -3.00%- (34,992) (35,692) (36,406) (37,134) (37,876) (38,634) (39,407) (40,195) (40,999)
EGI Residential 637,200 1,131,408 1,154,036 1,177,117 1,200,659 1,224,673 1,249,166 1,274,149 1,299,632 1,325,625
Total Effective Gross Income 637,200 1,131,408 1,154,036 1,177,117 1,200,659 1,224,673 1,249,166 1,274,149 1,299,632 1,325,625
EXPENSES
Residential
Professional Fees 13,503 25,000 25,750 26,523 27,319 28,139 28,983 29,852 30,748 31,670
Maintenance & Repairs 27,005 50,000 51,500 53,045 54,636 56,275 57,963 59,702 61,493 63,338
Operating Expenses 13,503 25,000 25,750 26,523 27,319 28,139 28,983 29,852 30,748 31,670
Insurance 21,604 40,000 41,200 42,436 43,709 45,020 46,371 47,762 49,195 50,671
Real Estate Taxes - 114,168 231,761 238,714 245,876 253,252 260,849 268,675 276,735 285,037
Management Fee 31,860 56,570 57,702 58,856 60,033 61,234 62,458 63,707 64,982 66,281
Reserve for Replacement 3.00%- - - - - - - - - -
Residential Operating Expenses 107,474 310,738 433,663 446,097 458,892 472,059 485,607 499,551 513,901 528,667
Total Operating Expenses 107,474 310,738 433,663 446,097 458,892 472,059 485,607 499,551 513,901 528,667
Net Operating Income 529,726 820,670 720,373 731,020 741,767 752,614 763,559 774,598 785,731 796,957
Debt Service
Debt Service - 1st mortgage - 576,976 576,976 576,976 576,976 576,976 576,976 576,976 576,976 576,976
DSCR- 1st - 1.42 1.25 1.27 1.29 1.30 1.32 1.34 1.36 1.38
Cash Flow 529,726 243,693 143,397 154,044 164,791 175,638 186,582 197,622 208,755 219,981
PRELIMINARY DRAFT- FOR DISCUSSION PURPOSES ONLY 12/9/2015
62
Morgan District Site V, LLC
Before Tax Cash Flow Equity Analysis
With TIF Note Without TIF Note
IRR 7.86%-2.89%
Period Year
Projected Cash
Flows
Projected Cash
Flows
0 2016 (1,900,000)$ (3,495,000)$ Equity Required
1 2017 529,726$ 529,726$
2 2018 243,693$ 243,693$
3 2019 143,397$ 143,397$
4 2020 154,044$ 154,044$
5 2021 164,791$ 164,791$
6 2022 175,638$ 175,638$
7 2023 186,582$ 186,582$
8 2024 197,622$ 197,622$
9 2025 208,755$ 208,755$
10 2026 903,088$ 903,088$ Cash Flow Year 10 + Proceeds from Reversion
Proceeds from Reversion Analysis
Year 10 NOI 796,957$ Per Cash Flow Tab
Cap Rate @ Sell 7.0%
Sales Price 11,385,107$ NOI/Cap Rate
Selling Expenses 683,106$ 6%
Net Sales Price 10,702,000$ SP - SE
Gain/Proceeds from Reversion 683,106$
NOTE: Project not
financially feasible but for
the monetized TIF note to
reduce equity required for
development
63
Tax Incremental Financing Application – Morgan District Redevelopment
Certification/Agreement
Certification per TIF Application
64
Tax Incremental Financing Application Morgan District Redevelopment December 2015
Agreement (per page 17 of TIF Application)
I, by signing this application, agree to the following: 1. I have read and will abide by all the requirements of the City for Tax Incremental Financing. 2. The information submitted is correct. 3. I agree to pay all costs involved in the legal and fiscal review of this project. These costs may include, but not be limited to, bond counsel, outside legal assistance, and outside financial assistance, and all costs involved in the issuance of the bonds or loans to finance the project. 4. I understand that the City reserves the right to deny final approval, regardless of preliminary approval or the degree of construction completed before application for final approval. 5. The undersigned authorizes the City of Oshkosh to check credit references and verify financial and other information. 6. The undersigned also agrees to provide any additional information as may be requested by the City after filing of this application. Applicant Name: Morgan District, LLC ___________________________________________________ Grant Schwab Date: December 2015
65
Tax Incremental Financing Application – Morgan District Redevelopment
Appendix
City Summary Letter
Detailed Project Narrative
Site Map
Project Renderings
Appraisal
Market Study
Filing Fee
66
The Morgan District, LLC
601 Oregon Street
Oshkosh, WI
Mark Rohloff
City Manager
City of Oshkosh
215 Church Avenue
Oshkosh, WI 54903-1130
RE: Morgan District Redevelopment
City Summary Letter
Dear Mark,
The Morgan District, LLC is pleased to submit a Tax Increment Financing (“TIF”) Policy Application
to the City of Oshkosh for our proposed redevelopment of 27 acres of land located along the Fox
River. We seek to transform the property into a vibrant new mixed-use community connecting the
redevelopment with downtown, the riverfront and creating a place to work, shop, and play along
prime riverfront property.
The Morgan District Redevelopment Project is comprised of approximately 23.5 acres west of
Oregon Street and 3.5 acres of land east of Oregon Street (the “Project”). The Project is proposed to
consist of a mix of multifamily housing, light commercial and retail uses, and a combination of
middle to high end condominiums. End users of the property will include individuals and families
living on the site, community members frequenting and working at the commercial and retail uses,
and business owners renting space from the Developer.
The Developer and Owner, The Morgan District, LLC; is currently renting the property to Oshkosh
Corporation, formerly Oshkosh Truck. Oshkosh Corporation is using the site for vehicle parking as
they design and build specialty trucks and truck bodies. All structures and foundations have been
removed from the site. Additional site work and planning has continued since the first application
to the City in September 2014. Groundbreaking for the first phase of the Project in anticipated to be
late fall 2016. The Project is anticipated to be completed in five or more phases.
The Project meets the criteria and threshold required for TIF funding. The Project represents a
redevelopment of underutilized land which will provide many benefits to the City and the
properties surrounding area and is not financially feasible but for TIF funding. The Project will
aid/provide the following benefits:
1. Attracting businesses to the community to improve the economic base.
2. Meeting recommendations outlined in the City’s strategic planning documents by
supporting development along the Fox River and downtown.
3. Involving retail development.
4. Contributing to public infrastructure.
67
5. Creating new employment in the area with the creation of retail and office spaces and from
the management and maintenance of the residential units.
6. Enhancing the streetscape and pedestrian experience by providing land for the City River
walk, improving underutilized land providing a more appealing view for all existing and
new neighbors.
7. Providing direct benefit to the distressed area through the elimination of blight and
abatement of the environmentally contaminated land and structures that were on the site.
8. Including quality design and overall aesthetic for final plans including a comprehensive
redevelopment approach taking into account modern design, universal design, integrated
site planning with sustainable design of buildings and landscaping demanded by the people
and businesses that the City of Oshkosh wishes to attract and retain.
The current total development cost for all five phases of planned development is approximately
$68.6 million. Substantial costs are involved with the site and public/private infrastructure work
necessary for redevelopment of the riverfront property. The Project is estimated to leverage no
more than $40.4 million in private debt coupled with approximately $15.8 million of Developer
equity, deferred financing, or additional federal and state funding sources that can be raised for the
redevelopment leaving a $12.4 million development funding gap. The Developer is requesting a
Pay-As-You-Go TIF Note along with the creation of a new 27 year Tax Increment District to support
the redevelopment and make the Project feasible to develop.
Included with this application package are initial projections of development sources and uses,
operating pro forma assumptions, and reversion calculations for review. The Developer has very
strong relationships with many lending institutions and will have financing in place before the
commencement of any phase of the Project. The Developer is willing to provide letters of financial
reference from lending institutions upon request.
It is the Developer’s ultimate goal to have a successful long-term development that provides
benefits to the community, supports the City of Oshkosh’s development goals, and provides the
required rate of return to the Developer. The Project will bring construction jobs to the community
for several years to come as the Project is completed in phases. The commercial development will
create permanent part- and full-time jobs. Once development plans have been finalized the
economic impact of the Project can be provided to the City if requested.
Thank you for reviewing our application for Tax Increment Financing for the Morgan District
Redevelopment project. We look forward to future discussions and working with you and others to
see this worthy Project move forward. Please do not hesitate to reach out to me if you have any
other questions.
Sincerely,
Grant Schwab
Representative of Morgan District, LLC
68
Tax Incremental Financing Application – Morgan District Redevelopment
Detailed Project Narrative
The Morgan District Redevelopment Project is comprised of approximately 23.5 acres west of
Oregon Street and 3.5 acres of land east of Oregon Street (the “Project”). The Project is proposed to
consist of a mix of multifamily housing, light commercial and retail uses, and a combination of
middle to high end condominiums. End users of the property will include individuals and families
living on the site, community members frequenting and working at the commercial and retail uses,
and business owners renting space from the Developer.
Current Use
The Developer and Owner, The Morgan District, LLC; is currently renting the property to Oshkosh
Corporation, formerly Oshkosh Truck. Oshkosh Corporation is using the site for vehicle parking as
they design and build specialty trucks and truck bodies.
Project Overview and Timing
All structures and foundations have been removed from the site. Additional site work and planning
has continued since the first application to the City in September 2014. Groundbreaking for site 1
of the Project in anticipated to be late fall 2016. The Project is anticipated to be completed in five or
more phases.
Site 1: fall 2016
New construction of 120 rentable multifamily residential units and 35,000 square feet of rentable
commercial development along the west side of Oregon Street with on grade parking.
Site 2: fall 2017
New construction of 48,000 square feet of rentable commercial development along the east side of
Oregon Street with on grade parking.
Site 3: fall 2018
New construction of 156 “eUrban” residential rental units within three large elevator buildings with
a diverse mix of units and bedroom sizes to match market demand.
Site 4: fall 2018
New construction of 24 waterfront condos for sale to the public.
Site 5: fall 2019
New construction of nine “Big House” multifamily rental buildings with 12 units per building for a
total of 108 rental residential units with a diverse mix of units and bedroom sizes to match market
demand.
69
Tax Incremental Financing Application – Morgan District Redevelopment
Meets TIF Policy Requirements
The Project meets the criteria and threshold required for TIF funding. The Project represents a
redevelopment of underutilized land which will provide many benefits to the City and the
properties surrounding area and is not financially feasible but for TIF funds. The Project will
aid/provide the following benefits:
1. Attracting businesses to the community to improve the economic base.
2. Meeting recommendations outlined in the City’s strategic planning documents by
supporting development along the Fox River and downtown.
3. Involving retail development.
4. Contributing to public infrastructure.
5. Creating new employment in the area with the creation of retail and office spaces and from
the management and maintenance of the residential units.
6. Enhancing the streetscape and pedestrian experience by providing land for the City River
walk, improving underutilized land providing a more appealing view for all existing and
new neighbors.
7. Providing direct benefit to the distressed area through the elimination of blight and
abatement of the environmentally contaminated land and structures that were on the site.
8. Including quality design and overall aesthetic for final plans including a comprehensive
redevelopment approach taking into account modern design, universal design, integrated
site planning with sustainable design of buildings and landscaping demanded by the people
and businesses that the City of Oshkosh wishes to attract and retain.
Financing Overview
Since the first TIF application was submitted to the City in September 2014, the federal New
Markets Tax Credit (“NMTC”) program and a grant from the State of Wisconsin have been identified
as potential sources for supporting the development of the grocery store and infrastructure needs
for site 1. The funding from these two sources, if any, have not been quantified or included in the
financial analysis because the programs require applications and approvals from various
agencies. However, the financial gap for site 1 is large enough that TIF assistance in addition to
support from other programs is required. Community Development Entities (“CDEs”), the
intermediaries that award NMTC allocations, and the State of Wisconsin will look favorably on the
Project with the TIF commitment from the City. It will demonstrate a strong public-private
partnership. Baker Tilly Virchow Krause, LLP is assisting the Developer in the process of applying
to CDEs for a NMTC allocation. More information about these programs can be provided in the
future as the Project moves forward.
The current total development cost for all five phases of planned development is approximately
$68.6 million. Substantial costs are involved with the site and public/private infrastructure work
necessary for redevelopment of the riverfront property. The Project is estimated to leverage no
more than $40.4 million in private debt coupled with approximately $15.8 million of Developer
equity, deferred financing, or additional federal and state funding sources that can be raised for the
redevelopment leaving a $12.4 million development funding gap. The Developer is requesting a
Pay-As-You-Go TIF Note to support the redevelopment and make the Project feasible to develop.
70
Tax Incremental Financing Application – Morgan District Redevelopment
The Developer is requesting a Pay-As-You-Go TIF Note to support the Project. It is anticipated that
a new 27 year Tax Increment District (“TID”) will be created by the City and that the Developer will
receive 90% of the property tax increment generated from the Project for the remaining life of the
TID for each site. The Developer understands that this percentage of TIF assistance surpasses the
City’s guidelines for the typical development requesting TIF. The request is 18.08% of total Project
costs, falling below the TIF Cap of 25%. The detailed sources and uses, operating pro forma
assumptions, and reversion calculations are included in the appendix for each site that demonstrate
why the Developer’s request is necessary to make the Project financially feasible. The ‘Detailed
Project Narrative’ in the appendix also details the TIF funding criteria that the Project meets or
exceeds.
At this time the Developer is seeking a TIF Note from the City just for site 1, but the projected need
for TIF assistance for future sites is included in this application to support the City’s efforts to
create a new TID.
The Developer has very strong relationships with many lending institutions and will have financing
in place before the commencement of any phase of the Project. The Developer is willing to provide
letters of financial reference from lending institutions upon request.
Below is a summary table of sources and uses for all five sites. Detailed sources and uses, operating
pro forma assumptions, and reversion calculations are included in the appendix for each site.
Please note as discussed above, site 1 is pursuing other federal and state funding resources.
It is the Developer’s ultimate goal to have a successful long-term development that provides
benefits to the community, supports the City of Oshkosh’s development goals, and provides the
required rate of return to the Developer. The Project will bring construction jobs to the community
for several years to come as the Project is completed in phases. The commercial development will
create permanent part- and full-time jobs. Once development plans have been finalized the
economic impact of the Project can be provided to the City if requested.
71
Tax Incremental Financing Application – Morgan District Redevelopment
Site Map
The following site plan is for all five development sites contemplated within the Morgan
District Redevelopment plans. New buildings, jobs, and infrastructure are to be created on
both sides of Oregon Street. The building plans and layout are conceptual to provide an
overview of use, density and site design.
72
73
Tax Incremental Financing Application - Morgan District Redevelopment
Location Map
74
75
Tax Incremental Financing Application – Morgan District Redevelopment
Project Renderings
Building and site renderings can be provided for all sites in the future upon request and as
needed for development approval and financing. Right now a rendering for site 1 is
included.
76
77
Tax Incremental Financing Application – Morgan District Redevelopment
Appraisal
Third party reporting including the appraisal will be furnished upon request and as needed
for development approval and financing.
78
Tax Incremental Financing Application – Morgan District Redevelopment
Market Study
Third party reporting including the market study will be furnished upon request and as
needed for development approval and financing.
79
Tax Incremental Financing Application – Morgan District Redevelopment
Filing Fee
The Developer has donated a significant amount of linear feet of river walk land to the City
of Oshkosh to allow the City to develop the river walk. The Developer is in the process of
negotiating to donate more land to the City for even further continuation of the river walk.
The Developer is requesting that the City take this in consideration since they have not
submitted the filing fee with this application.
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__________________________________
Plan Commission Minutes 1 June 21, 2016
PLAN COMMISSION MINUTES
June 21, 2016
PRESENT: Thomas Fojtik, John Hinz, Steve Cummings, Kathleen Propp, Donna Lohry, Karl
Nollenberger
EXCUSED: David Borsuk, Ed Bowen, Jeffrey Thoms, Benjamin Krumenauer, Robert Vajgrt
STAFF: Darryn Burich, Director of Planning Services; Brian Slusarek, Zoning Code
Enforcement Inspector; Deborah Foland, Recording Secretary
Chairperson Fojtik called the meeting to order at 4:00 pm. Roll call was taken and a quorum
declared present.
The minutes of June 7, 2016 were approved as presented. (Nollenberger/Cummings)
I. CONDITIONAL USE PERMIT APPROVAL FOR AN EXCEPTION TO THE
PROVISIONS OF THE DOWNTOWN OVERLAY DISTRICT AT 531 NORTH
MAIN STREET (DEALERSOCKET)
The applicant is requesting approval of a conditional use permit for an exception to the signage
standards of the Downtown Overlay District to allow a hand painted sign, greater than 32 square
feet in size, to be placed higher than 18 feet above grade and above the second floor window sill.
Mr. Slusarek presented the item and reviewed the site and surrounding area as well as the land use
and zoning classifications in this area. He discussed the history of the site and reviewed a photo of
the sign which he stated was consistent with the historical sign that was in the same location on the
building when it was originally constructed. He reviewed a photo of the building from the 1920’s
depicting the original signage on the structure and stated that the Landmarks Commission had
reviewed and recommended approval of the signage as it is historically accurate.
Motion by Nollenberger to approve a conditional use permit for an exception to the
provisions of the Downtown Overlay District at 531 N. Main Street.
Seconded by Propp.
Ms. Propp commented that she liked the look of the new signage.
Mr. Hinz agreed however he would have preferred to see the vertical lettering on the current sign to
be more similar to the original historical lettering of the original signage.
Motion carried 6-0.
II. PUBLIC HEARING ON PROPOSED CREATION OF TAX INCREMENT
FINANCING DISTRICT #29 MORGAN REDEVELOPMENT; DESIGNATION OF
BOUNDARIES AND APPROVAL OF PROJECT PLAN
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Plan Commission Minutes 2 June 21, 2016
Tax Incremental District #29 (the “TID” or “District”) is a proposed 36 acre blighted area district
located in downtown Oshkosh on the south side of the Fox River in the general area of Oregon
Street and Sixth Avenue. The proposed District, referred to as the “Morgan District” will be
created to facilitate a proposed 27 acre $55 million redevelopment project consisting of residential,
commercial and retail uses. The City owns an additional 8.9 acres within the proposed District
with redevelopment potential. Five residential parcels at the edge of the district have also been
included for future rehabilitation or redevelopment activity.
Mr. Burich presented the item and reviewed the site and surrounding area as well as the land use
and zoning classifications in this area. He discussed the 14 parcels to be included in the district
and the life span of the TID which is proposed to be 27 years. He discussed the uses to be included
within the district which consist of residential, commercial and retail including mixed use and the
costs related to this project. He further stated that the redevelopment would occur in five phases
and reviewed the anticipated uses in each phase. He discussed the city expenditures for this project
which would include development incentives, riverwalk construction, street reconstruction, and
administrative costs. He explained that the properties currently possess a zoning classification of
C-3 PD Central Commercial District with a Planned Development Overlay which would remain
and the developments would be required to come back to the Plan Commission for further review
when moving forward. The plans are consistent with the City’s 1993 and 2005 Comprehensive
Plans as well as the “Let’s Be Pioneers” riverfront visioning project and the Vision Report. He
explained why the TIF assistance is necessary for the redevelopment of this area and reviewed the
cash flow analysis both with and without the TIF. He discussed the next steps in the process which
would be developing plans to move forward with Phase I of the redevelopment and planned
development review for the entire site based on the concept plan, a developer’s agreement and
more detailed plans for Phase 1. He stated that the planned development overlay will require
approval of each phase by the Plan Commission and Common Council and reviewed the area as it
currently exists and photos of the site from the past history of this portion of the city. He reviewed
the parcels included in the district and the land use plan for the proposed district and discussed the
completion of the riverwalk in this area. He also reviewed a concept plan for the district and
reviewed the areas involved with each phase of development and reviewed a rendering of Phase 1.
Ms. Propp stated that there appeared to be six to seven private properties included in the district
and questioned if there were any down side to the property owners.
Mr. Burich responded that this should be a benefit to the property owners as the City could create
“mini paygos” to make development incentives available to property owners who desire to do
improvements to their homes. He further stated that it also opens the possibility for the properties
to be acquired and incorporated in the overall development. He further discussed the paygo
options for rehabilitation of the private homes and how the property owner could be provided grant
or loan money to assist with home repairs and increased tax assessments that could help offset the
costs of the improvements.
William Carey, 247 W. 6th Avenue, displayed on the map where his home was located and
questioned how the traffic generated from this development would be handled and if there will be
trees along the perimeter or if he would be looking at a view of a parking lot from his residence.
Gary Gray, 815 W. Linwood Avenue, stated that the map on page 5 of the project plan is labeled as
preliminary and questioned if this was the actual map or if it could be altered.
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Plan Commission Minutes 3 June 21, 2016
Mr. Burich responded that everything is preliminary at this point.
Mr. Gray then questioned if the actual map would be approved at a later date.
Mr. Burich responded affirmatively.
Mr. Gray commented that there was previously a TIF district #20 in this area that would overlay
the current district area of TIF #29 and how this would be handled.
Mr. Burich replied that TIF #20 would be frozen and TIF #29 would receive the new tax
increment.
Mr. Gray also discussed the Valuation Test Compliance Calculation on page 8 and asked for
further explanation on the evaluation data.
Todd Taves, Ehlers, Inc., explained the increment values in each TID district and the current values
of each existing district plus the base value of the proposed new district which to date cannot
exceed the 12% threshold of the City’s overall equalized value which the table reflects that the
increments pass the compliance calculation. He further explained the margin available in this
calculation which is in compliance with the statutory test.
Mr. Gray felt that the table should be updated to reflect the 2016 values as it reflects the valuation
data from 2015. He also questioned if there is going to be any site preparation to be paid by the
city in regard to pollutants or contamination.
Mr. Burich replied that the city would only be paying for the riverwalk construction areas and any
work on the site preparation would be paid by the developer.
Mr. Gray felt that there should be two or three options on how to fund the expected expense to the
city as he felt it would be helpful for the Common Council to evaluate expenses for the riverwalk
construction and street reconstruction that is not covered by the TIF. He discussed the street
reconstruction which he felt should be extended from W. 6th Avenue to W. 8th Avenue and that the
Capital Improvement Program, (CIP), includes the reconstruction of Oregon Street from 8th
Avenue to 28th Avenue in the coming years.
Ken Voss, 507 W. 4th Avenue, questioned if W. 4th Avenue was going to be extended through to
Iowa Street and W. 6th Avenue.
Mr. Burich indicated that this has not yet been determined and the planned development approval
in the future will address this issue as part of the plan includes potential reconstruction of streets in
this area.
Mr. Voss then questioned what the area adjacent to the old City’s Sanitation building is proposed
to be used for.
Mr. Burich responded that the building was to be demolished and it was proposed to be possibly
for park extension as well as parking for the trail and boat/kayak launch and other public use.
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Plan Commission Minutes 4 June 21, 2016
Dorothy Reinke, 333 W. 6th Avenue, inquired about access and egress to the proposed new
development and how the traffic generated from these new uses would be addressed.
Mr. Burich explained that the main access to the site would be through Minnesota Street and traffic
studies could be completed to address any concerns.
Ms. Reinke then questioned if there would be additional traffic lights installed.
Mr. Burich responded that this has not yet been determined and the west side of the development
would require future consideration as far as traffic control.
Ms. Reinke discussed street repairs necessary and with the extra traffic and additional wear and
tear of the streets in this area due to the increased traffic from this development, if property owners
would receive some type of break in the expense of the street reconstruction costs.
Mr. Burich replied that he did not have any information on that issue and felt that the normal
assessment policy for property owners would be utilized and the TIF district may be able to offset
some of those costs.
Ms. Reinke commented that the acquisition of existing residential homes was a possibility and
questioned if it was just the homes located within the TID district area or would that be applied to
other residential properties in the vicinity.
Mr. Burich responded that the acquisition of residential homes was the properties located within
the district only.
Ms. Reinke inquired if the grant money mentioned that could be available for residential property
owners would apply to her home or was this just for the properties within the TID district area
only.
Mr. Burich indicated that the grant money associated with the TID district would be for properties
within the district area only however the city has other programs available for residential
homeowners. He discussed the housing rehabilitation program that the City administers and that if
a neighborhood association would be created in this area it could offer more assistance for
opportunities for financial aid with home improvements through neighborhood programs.
Paulette Feld, 416 W. 5th Avenue, stated that street improvements were scheduled for next summer
and questioned if this project would delay this and if it will increase the responsibilities to the
property owners.
Mr. Burich responded that the CIP improvements scheduled will still be moving forward as
proposed and that W. 6th Avenue and Oregon Street will be the main access for this development
and W. 5th Avenue should not be impacted by this proposal.
Nicholas Lang, 1950 White Swan Drive, Grant Schwab, 4006 Stonegate Drive, and Peter Lang,
2300 White Swan Drive, were present as the developers for this proposal. Mr. Lang discussed the
plans that they have been working on for the last three years and that landscaping and other details
Page 84
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Plan Commission Minutes 5 June 21, 2016
of the redevelopment will come back to the Plan Commission for review and approval at a later
date. He discussed the riverwalk plans for the City at this location and the 27 acres of the site to be
redeveloped.
Ms. Propp requested a further description of the concept plan.
Mr. Schwab displayed the area on W. 6th Avenue that would serve as the main entrance to the
development and discussed the grocery store, apartments, and parking facilities planned for this
area. He further described the outdoor patio for the residential uses, the two additional apartment
buildings, condominiums and townhouses, and office buildings which would be constructed at a
later date than the residential uses. He displayed on the map the location of the proposed uses
described and stated that the apartments will be market rate units.
Mr. Lang added that there would be no low-income housing units in this development.
Ms. Lohry questioned if there would be shrubs located along the perimeter of the development on
Oregon Street.
Mr. Schwab responded that the conceptual plan is preliminary at this time and that the site is very
large and the landscaping depicted on the plan is conceptual only.
Ms. Lohry questioned how the parking facilities would be handled for the development.
Mr. Schwab responded that there would be parking for one car per apartment unit underground and
surface parking for the remaining stalls necessary. He further discussed the placement of parking
facilities for the remaining development.
Ms. Lohry stated that the developer should keep in mind that the Commission likes trees and green
space within developments and not largely visible parking areas.
Mr. Schwab replied that the developers are all local parties who desire to construct the perfect
project for this site which will be aesthetically pleasing.
Ms. Propp questioned if there would be any park area located by the riverwalk.
Mr. Schwab responded affirmatively.
Ms. Propp also questioned if there would be any boat launches constructed within this area.
Mr. Schwab stated that it was not part of the project at this time but they will be working with the
DNR on transient docks within the development area. He displayed on the map where there are
currently transient docks located in the area.
Mr. Lang added that they have had discussions with the City Parks Department in regard to this
matter and would like to maximize as many docks as possible for the residential uses for the
condominiums and that transient docks funded by the City are not currently proposed as there are
already multiple transient docks in the area for public use. He continued to discuss the amount of
water frontage in Oshkosh and the desire to take advantage of this amenity.
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Plan Commission Minutes 6 June 21, 2016
Jeff Maurer, owner of grocery establishments in other community’s campus locations, discussed an
overview of the urban market that is proposed as part of Phase I of the redevelopment project. He
discussed his campus grocery stores that are designed for development in high density areas such
as this one and the background of his other stores currently in operation. He stated that his concept
works well in multi use buildings and reviewed a floor plan of one of his other establishments. He
also discussed the construction of transient docks that he felt would make use of his establishment
as it provides ready-made, high quality food products that could be utilized by boating enthusiasts
and reviewed photos of his other locations and some of the products they had to offer. He
discussed his concept of building smaller stores that offer online shopping and free deliveries to
homes as well as a catering program and that his facility utilizes smaller parking lots due to these
features. He further discussed their products and quality of foods offered and that they have been
in the grocery business for 40 years.
Ms. Lohry inquired about the ability to order groceries and have free delivery to homes.
Mr. Maurer responded that they offer shopping online or in the store with the benefit of having the
groceries delivered at no cost which promotes more pedestrian and bicycle traffic and reduces the
amount of parking necessary as the order can be delivered.
Ms. Lohry commented that she is a representative of aging and disabled citizens and is looking for
benefits such as this for their purpose.
Mr. Maurer stated that orders can be called in or may be placed online if the individual cannot find
transportation to come to the store.
Mr. Fojtik commented that he felt it was a very nice concept.
Motion by Nollenberger to approve the designated boundaries and Project Plan for TID
#29-Morgan Redevelopment.
Seconded by Cummings. Motion carried 6-0.
There being no further business, the meeting adjourned at approximately 4:50 pm. (Hinz/Propp)
Respectfully submitted,
Darryn Burich
Director of Planning Services
Page 86
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JULY12, 2016 16-366 RESOLUTION
CARRIED 7-0 LOST________LAIDOVER________WITHDRAWN________)
PURPOSE: APPROVETAXINCREMENT DISTRICTNO. 29PROJECT PLAN;
DESIGNATE TAXINCREMENTDISTRICTNO. 29BOUNDARIES;
CREATETAXINCREMENT DISTRICTNO. 29MORGAN
REDEVELOPMENT
INITIATED BY: CITYADMINISTRATION
PLANCOMMISSIONRECOMMENDATION: Approved
WHEREAS, the CityofOshkosh (the “City”) hasdetermined thatuseofTax
IncrementalFinancingisrequiredtopromotedevelopment andredevelopmentwithinthe
City; and
WHEREAS, TaxIncrementDistrictNo. 29 (the “District”) isproposedtobecreated
bytheCity asablightedareadistrictinaccordancewiththeprovisionsofWisconsin
StatutesSection66.1105 (the "TaxIncrementLaw"); and
WHEREAS, aProjectPlanfortheDistrict hasbeenpreparedthatincludes:
a. Astatementlistingthekind, numberandlocationofallproposedpublicworks
orimprovements withintheDistrict, ortotheextentprovided inWisconsin
StatutesSections66.1105(2)(f)1.k. and66.1105(2)(f)1.n., outside ofthe
District;
b. Aneconomic feasibilitystudy;
c. Adetailedlistofestimatedprojectcosts;
d. Adescriptionofthemethodsoffinancingallestimatedprojectcostsandthe
timewhentherelatedcostsormonetary obligationsaretobeincurred;
e. AmapshowingexistingusesandconditionsofrealpropertyintheDistrict;
f. Amapshowingproposed improvementsandusesintheDistrict;
g. Proposed changesofzoningordinances, masterplan, map, buildingcodesand
Cityordinances;
h. Alistofestimatednon-projectcosts;
i. Astatementoftheproposedplanforrelocation ofanypersonstobedisplaced;
j. AstatementindicatinghowtheDistrictpromotestheorderlydevelopment of
theCity;
k. Anopinionof theCity AttorneyorofanattorneyretainedbytheCity advising
thattheplaniscompleteandcomplieswithWisconsinStatutesSection
66.1105(4)(f); and
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WHEREAS, priortoitspublication, acopyofthenoticeofpublichearingwassent
toownersofallpropertyintheproposeddistrict, tothechiefexecutiveofficersof
Winnebago County, theOshkoshAreaSchoolDistrict, andtheFoxValley Technical
CollegeDistrict, andanyotherentitieshavingthepowertolevytaxesonpropertylocated
withintheDistrict, inaccordance withtheproceduresspecified intheTaxIncrementLaw;
and
WHEREAS, inaccordancewiththeproceduresspecifiedintheTaxIncrement
Law, thePlanCommission, onJune21, 2016heldapublichearingconcerningtheproject
planandboundariesandproposedcreationoftheDistrict, providinginterestedpartiesa
reasonable opportunity toexpresstheirviewsthereon; and
WHEREAS, aftersaidpublichearing, thePlanCommission designatedthe
boundariesoftheDistrict, adopted theProject Plan, andrecommended totheCommon
CouncilthatitcreatesuchDistrictandapprovetheProjectPlan
NOW, THEREFORE, BEITRESOLVEDbytheCommonCouncil ofthe Cityof
Oshkoshthat:
1. TheboundariesoftheDistrictshallbenamed "CityofOshkoshTax
IncrementDistrictNo. 29, MorganRedevelopment", areherebyestablished
asspecifiedinExhibitAofthisResolution.
2. TheDistrict iscreatedeffectiveasofJanuary1, 2016.
3. TheCommonCouncilfindsanddeclaresthat:
a) Notlessthan50% byareaoftherealpropertywithintheDistrictisa
blightedareawithinthemeaningofWisconsinStatutesSection
66.1105(2)(a)1.
b) Baseduponthefindings, asstatedin3(a) above, theDistrictisdeclared
tobeablightedareadistrictbasedontheidentification andclassification
ofthepropertyincludedwithin theDistrict.
c) Theimprovementofsuchareaislikelytoenhancesignificantlythevalue
ofsubstantiallyalloftheotherrealpropertyintheDistrict.
d) TheequalizedvalueofthetaxablepropertyintheDistrictplusthevalue
increment ofallotherexistingtaxincremental districtswithintheCity,
doesnotexceed12% ofthetotalequalizedvalueoftaxableproperty
withintheCity.
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TheCityestimatesthatlessthan35% oftheterritorywithintheDistricte)
willbedevotedtoretailbusinessattheendoftheDistrict’smaximum
expenditureperiod, pursuant toWisconsinStatutes Section
66.1105(5)(b).
f) Theprojectcostsrelatedirectlytopromotingtheelimination ofblightof
thearea consistentwiththepurposeforwhichtheDistrictiscreated.
g) AllpropertywithinTID #29waswithintheCityboundariesasofJanuary
1, 2004.
4. TheProjectPlanfor "CityofOshkoshTaxIncrementDistrictNo. 29, Morgan
Redevelopment " (attachedasExhibitB) isherebyapproved, andtheCity
furtherfindsthePlanisfeasible andinconformity withthemaster planof
theCity.
BEITFURTHERRESOLVED thattheCommonCouncil oftheCityofOshkosh
herebyapprovescreationofTaxIncremental Financing DistrictNo. 29 Morgan
Redevelopment.
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