HomeMy WebLinkAbouttid-30-project-plan-final
July 27, 2016
Project Plan
Tax Incremental District No. 30
Consideration for Approval by the Joint Review Board: September 6, 2016
Consideration for Adoption by Common Council: August 23, 2016
Consideration for Approval by Plan Commission: August 2, 2016
Public Hearing Held: August 2, 2016
Organizational Joint Review Board Meeting Held: August 2, 2016
Project Plan
Tax Incremental District No. 30
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
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
Public Member
Thomas Fojtik, Chair Kathleen Propp
Table of Contents
EXECUTIVE SUMMARY ...........................................................................................................................................1
TYPE AND GENERAL DESCRIPTION OF DISTRICT ........................................................................................4
PRELIMINARY MAPS OF PROPOSED DISTRICT BOUNDARY......................................................................5
MAPS SHOW ING EXISTING USES AND CONDITIONS ...................................................................................7
PRELIMINARY PARCEL LIST AND ANALYSIS ...................................................................................................9
EQUALIZED VALUE TEST .....................................................................................................................................10
STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PUBLIC WORKS AND OTHER
PROJECTS................................................................................................................................................................11
MAPS SHOW ING PROPOSED IMPROVEMENTS AND USES ......................................................................14
DETAILED LIST OF PROJECT COSTS ..............................................................................................................16
ECONOMIC FEASIBILIT Y STUDY, FINANCING METHODS, AND THE TIME WHEN COSTS OR
MONETARY OBLIGATIONS RELATED ARE TO BE INCURRED ..................................................................17
ANNEXED PROPERT Y...........................................................................................................................................22
ESTIMATE OF PROPERT Y 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 W ISCONSIN 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
APPENDIX A – TAX INCREMENT FINANCING APPLICATION……………………………………………...26
APPENDIX B – MARKET STUDY AND INVESTMENT ANALYSIS REPORT (INVESTA-ANALYTICS).…38
PLAN COMMISSION PUBLIC HEARING/MINUTES OF AUGUST 2, 2016 ...........................................56
JOINT REVIEW BOARD RESOLUTION OF SEPTEMBER 6, 2016 ........................................................65
COMMON COUNCIL CREATION RESOLUTION OF AUGUST 23, 2016 ..............................................62
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Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 1 July 27, 2016
SECTION 1:
Executive Summary
Description of District
Type of District, Size and Location
Tax Incremental District No. 30 (the “TID” or “District”) is a proposed one acre district in need of
rehabilitation or conservation located in downtown Oshkosh at the intersection of Washington and State
Street. The proposed District will be created to help support a proposed renovation of the Fraternal
Reserve Association Building located at 105 Washington Avenue involving conversion of roughly 29,100
sq. ft. of vacant commercial space to twenty residential apartment units. The District also includes a
public parking lot currently owned by the City which will be partially converted to enclosed private
parking, and an additional commercial building located at 300 State Street which could potentially be
rehabilitated in the future. 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 $680,000 to facilitate
rehabilitation of 105 Washington Avenue including an estimated $530,000 for development incentives,
$88,000 for parking lot reconstruction and the balance for administrative expense and payment of interest
on funds expected to be advanced to the District to cover necessary expenditures prior to establishment of
the District’s increment revenue stream. No specific Project Costs are identified for 300 State Street,
however, the City would expect to make available appropriate development incentives or other assistance
at the time a rehabilitation project is proposed without further amending this Plan.
Economic Development
As a result of the creation of this District, the City projects that additional land and improvements value
of approximately $1.3 million will be created as a result of the rehabilitation project and subsequent
economic appreciation. 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 development 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 25 years of its 27 year maximum statutory life.
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:
The economics associated with rehabilitation projects which typically involve additional costs
such as abatement of hazardous materials, utility relocations, use of high end finishes needed to
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Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 2 July 27, 2016
attract tenants, provision of adequate off-street parking through the construction of garages, 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.
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 and other
related Project Costs needed to facilitate the desired rehabilitation work.
The rehabilitation expected to occur within the District will create 20 residential units, providing
housing opportunities for City residents.
It is expected that the rehabilitation project will create a 0.5 Full-Time Equivalent (FTE) position
for property management and another 0.5 FTE position for property maintenance.
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.
4. Not less than 50% by area of the real property within the District is in need of rehabilitation or
conservation work within the meaning of Wisconsin Statutes Section 66.1337(2m)(b).
5. Based upon the finding stated above the District is declared to be a District In Need of Rehabilitation
of Conservation based on the identification and classification of the property included within the
District.
6. The Project Costs relate directly to promoting rehabilitation or conservation consistent with the
purpose for which the District is created.
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Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 3 July 27, 2016
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.
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Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 4 July 27, 2016
SECTION 2:
Type and General Description of District
The District, comprising one acre in downtown Oshkosh at the intersection of Washington and State
Street, is being created by the City under the authority provided by Wisconsin Statute Section 66.1105
and will be classified as a district “in need of rehabilitation or conservation” 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 66.1337(2m)(a). The preliminary parcel list included in Section 5 to this Plan identifies
those parcels meeting those criteria. Collectively, these parcels represent 100% of the total District 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 pay the necessary costs needed to incentivize the
developer to undertake the rehabilitation project. A preliminary map of the proposed District boundary
can be found in Section 3 of this Plan.
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Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 5 July 27, 2016
SECTION 3:
Preliminary Maps of Proposed District Boundary
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Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 6 July 27, 2016
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Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 7 July 27, 2016
SECTION 4:
Maps Showing Existing Uses and Conditions
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Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 8 July 27, 2016
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Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 9 July 27, 2016
SECTION 5:
Preliminary Parcel List and Analysis
City of Oshkosh, Wisconsin
Tax Increment District # 30
Base Property Information
Comments
Parcel
Number Street Address Owner Acreage Land Imp PP Total
Equalized
Value
Ratio Land Imp PP Total Blighted
Rehab/
Conservation
200880000 105 Washington Avenue Discovery Properties LLC 0.2393 42,000 398,000 0 440,000 100.13% 41,945 397,483 0 439,429 0.2393 Existing Bldg. to be Converted to 20 Residential Units
200620000 0 State Street City of Oshkosh 0.7206 0 0 0 0 100.13% 0 0 0 0 0.7206 Existing Public Parking to be Converted to Partial Private Use
200640000 300 State Street Kieckhafer Rev Trust H A/P D 0.0918 16,100 105,900 0 122,000 100.13% 16,079 105,763 0 121,842 0.0918 Potential Future Rehabilitation Project
Total Acreage 1.0517 58,100 503,900 0 562,000 58,025 503,246 0 0 1.0517
0.00% 100.00%
Estimated Base Value 561,270
NOTES:
1Assessed valuations listed are preliminary January 1, 2016.
2Ratio shown is for January 1, 2015. Ratio for 2016 not yet available.
Property Information Assessment Information1 Equalized Value2 District Classification
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Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 10 July 27, 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
$246,105,970. 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 9/1/2016
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 561,270 561,270
Total Value Subject to 12% Test 246,105,970 246,105,970
Compliance PASS PASS
TID #27
TID #21
TID #23
TID #24
TID #25
TID #26
TID #20
TID #11
TID #12
TID #13
TID #14
TID #15
TID #16
TID #17
TID #18
TID #19
TID #10
City of Oshkosh, Wisconsin
Tax Increment District # 30
Valuation Test Compliance Calculation
TID #7
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Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 11 July 27, 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.
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Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 12 July 27, 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.
RDA Type Activities
Contribution to Redevelopment Authority
As provided for in Wisconsin Statues 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.
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Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 13 July 27, 2016
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.
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.
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Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 14 July 27, 2016
SECTION 8:
Maps Showing Proposed Improvements and Uses
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Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 15 July 27, 2016
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Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 16 July 27, 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.
Proposed TIF Project Cost Estimates
Projected
Project ID Project Name/Type Total Year
1 Parking Lot Reconstruction1 88,000 2016
2 Development Incentive2 530,739 2018 ‐ 2042
3 Administrative Expense3 36,000 2016 ‐ 2042
4 Interest on Advances3 24,162 2018 ‐ 2037
Total Projects 678,901
Notes:
1Reflects City contribution requested by developer and listed within the "Tax Incremental Financing Policy and Application" dated April 30, 2016.
2Projected incentive amount based on 25 years of tax increment after recovering all other City costs.
3Calculated by Ehlers.
City of Oshkosh, Wisconsin
Tax Increment District # 30
Estimated Project List
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Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 17 July 27, 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.
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Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 18 July 27, 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 the 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 City anticipates making total Project Cost expenditures of approximately $680,000 to support
rehabilitation of 105 Washington Avenue including an estimated $530,000 for development incentives,
$88,000 for public parking lot reconstruction and the balance for administrative expense and payment of
interest on funds expected to be advanced to the District to cover necessary expenditures prior to
establishment of the District’s increment revenue stream. The City expects to incur the development
incentive obligation through a development agreement to be entered into in 2016, with payments to be
made on a “pay as you go” basis through the life of the District. The City would also incur the cost for
parking lot reconstruction in 2016 and expects to advance funds for this purpose with recovery of the
advanced amounts and accrued interest over time. No specific Project Costs are identified for 300 State
Street, however, the City would expect to make available appropriate development incentives or other
assistance at the time a rehabilitation project is proposed without further amending this 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.
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Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 19 July 27, 2016
Development Assumptions
Actual 20 Unit Apt.
Building1 Annual Total
1 2016 856,287 856,287 2016 1
2 2017 0 2017 2
3 2018 0 2018 3
4 2019 0 2019 4
5 2020 0 2020 5
6 2021 0 2021 6
7 2022 0 2022 7
8 2023 0 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 0 856,287 856,287
Notes:
1Projected valuation as estimated by developer and listed within the "Tax Incremental Financing Policy
1and Application" dated April 30, 2016. Converted to equalized value by Ehlers.
Construction Year Construction Year
City of Oshkosh, Wisconsin
Tax Increment District # 30
Development Assumptions
_____________________________________________________________________________________________
Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 20 July 27, 2016
Increment Revenue Projections
Type of District Base Value 561,270
District Creation Date Appreciation Factor 1.00%x Apply to Base Value
Valuation Date Jan 1, 2016 Base Tax Rate $25.95
Max Life (Years) Rate Adjustment Factor
Expenditure Period/Termination 22 9/1/2038
Revenue Periods/Final Year 27 2044
Extension Eligibility/Years Yes 3 Discount Rate 2.05%
Recipient District
Construction
Year Value Added Valuation Year
Inflation
Increment
Total
Increment Revenue Year Tax Rate1 Tax Increment NPV Calculation
1 2016 856,287 2017 5,613 861,900 2018 $25.95 22,365 21,916
2 2017 0 2018 14,232 876,131 2019 $25.95 22,735 43,746
3 2018 0 2019 14,374 890,505 2020 $25.95 23,108 65,489
4 2019 0 2020 14,518 905,023 2021 $25.95 23,484 87,142
5 2020 0 2021 14,663 919,686 2022 $25.95 23,865 108,705
6 2021 0 2022 14,810 934,495 2023 $25.95 24,249 130,174
7 2022 0 2023 14,958 949,453 2024 $25.95 24,637 151,548
8 2023 0 2024 15,107 964,560 2025 $25.95 25,029 172,827
9 2024 0 2025 15,258 979,819 2026 $25.95 25,425 194,008
10 2025 0 2026 15,411 995,230 2027 $25.95 25,825 215,090
11 2026 0 2027 15,565 1,010,795 2028 $25.95 26,229 236,071
12 2027 0 2028 15,721 1,026,515 2029 $25.95 26,637 256,951
13 2028 0 2029 15,878 1,042,393 2030 $25.95 27,049 277,728
14 2029 0 2030 16,037 1,058,430 2031 $25.95 27,465 298,401
15 2030 0 2031 16,197 1,074,627 2032 $25.95 27,885 318,968
16 2031 0 2032 16,359 1,090,986 2033 $25.95 28,310 339,429
17 2032 0 2033 16,523 1,107,508 2034 $25.95 28,739 359,783
18 2033 0 2034 16,688 1,124,196 2035 $25.95 29,172 380,028
19 2034 0 2035 16,855 1,141,051 2036 $25.95 29,609 400,164
20 2035 0 2036 17,023 1,158,074 2037 $25.95 30,051 420,190
21 2036 0 2037 17,193 1,175,267 2038 $25.95 30,497 440,105
22 2037 0 2038 17,365 1,192,633 2039 $25.95 30,947 459,909
23 2038 0 2039 17,539 1,210,172 2040 $25.95 31,402 479,600
24 2039 0 2040 17,714 1,227,886 2041 $25.95 31,862 499,177
25 2040 0 2041 17,892 1,245,778 2042 $25.95 32,326 518,641
26 2041 0 2042 18,070 1,263,848 2043 $25.95 32,795 537,991
27 2042 0 2043 18,251 1,282,099 2044 $25.95 33,269 557,226
Totals 856,287 425,813 Future Value of Increment 744,966
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 # 30
Tax Increment Projection Worksheet
Rehabilitation
September 1, 2016
27
Yes
_________________________________________________________________________________________________________________________________
Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 21 July 27, 2016
Cash Flow
City of Oshkosh, Wisconsin
Tax Increment District # 30
Cash Flow Projection
Year
Year
2016 98,000 98,000 88,000 10,000 98,000 0 0 98,653 2016
2017 1,000 1,000 1,000 1,000 0 0 101,646 2017
2018 22,365 22,365 15,774 5,591 1,000 22,365 0 0 97,088 2018
2019 22,735 22,735 16,051 5,684 1,000 22,735 0 0 93,346 2019
2020 23,108 23,108 16,331 5,777 1,000 23,108 0 0 89,436 2020
2021 23,484 23,484 16,613 5,871 1,000 23,484 0 0 85,354 2021
2022 23,865 23,865 16,899 5,966 1,000 23,865 0 0 81,095 2022
2023 24,249 24,249 17,187 6,062 1,000 24,249 0 0 76,654 2023
2024 24,637 24,637 17,478 6,159 1,000 24,637 0 0 72,028 2024
2025 25,029 25,029 17,772 6,257 1,000 25,029 0 0 67,211 2025
2026 25,425 25,425 18,069 6,356 1,000 25,425 0 0 62,199 2026
2027 25,825 25,825 18,369 6,456 1,000 25,825 0 0 56,987 2027
2028 26,229 26,229 18,672 6,557 1,000 26,229 0 0 51,570 2028
2029 26,637 26,637 18,978 6,659 1,000 26,637 0 0 45,942 2029
2030 27,049 27,049 19,287 6,762 1,000 27,049 0 0 40,098 2030
2031 27,465 27,465 19,599 6,866 1,000 27,465 0 0 34,034 2031
2032 27,885 27,885 19,914 6,971 1,000 27,885 0 0 27,744 2032
2033 28,310 28,310 20,232 7,077 1,000 28,310 0 0 21,221 2033
2034 28,739 28,739 20,554 7,185 1,000 28,739 0 0 14,461 2034
2035 29,172 29,172 20,879 7,293 1,000 29,172 0 0 7,457 2035
2036 29,609 29,609 21,207 7,402 1,000 29,609 0 0 204 2036
2037 30,051 30,051 28,843 208 1,000 30,051 0 0 0 2037
2038 30,497 30,497 29,497 1,000 30,497 0 0 2038
2039 30,947 30,947 29,947 1,000 30,947 0 0 2039
2040 31,402 31,402 30,402 1,000 31,402 0 0 2040
2041 31,862 31,862 30,862 1,000 31,862 0 0 2041
2042 32,326 32,326 31,326 1,000 32,326 0 0 2042
2043 32,795 32,795 0 32,795 32,795 2043
2044 33,269 33,269 0 33,269 66,064 2044
Total 744,966 99,000 843,966 530,739 123,162 88,000 36,000 777,901 Total
Notes:
1Equal to 100% of increment generated by rehabilitation project less annual administrative expense and amounts paid to recover prior City advances.
2Assumes the City will charge a 2% cost of funds on advanced amounts and will allocate 25% of the annual increment collected to repay the advance.
Projected Revenues
Tax
Increments
Advance From
Other City
Funds
Total
Revenues
Balances
Municipal
Revenue
Obligation1
City Contrib.
to Parking Lot
Rennovation Admin.
Expenditures
Total
Expenditures Annual Cumulative
Advance
Outstanding
Repayment of
City Advance2
Pro ected TID Closure
_____________________________________________________________________________________________
Project Plan TID No. 30 Creation City of Oshkosh
Submitted by Ehlers Page 22 July 27, 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 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. 30 Creation City of Oshkosh
Submitted by Ehlers Page 23 July 27, 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 preserving, rehabilitating and reusing existing structures. 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. 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 and increased employment opportunities.
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. 30 Creation City of Oshkosh
Submitted by Ehlers Page 25 July 27, 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 4,413 9,319 7,745 888 22,365 2018
2019 4,486 9,473 7,873 902 22,735 2019
2020 4,560 9,628 8,002 917 23,108 2020
2021 4,634 9,785 8,133 932 23,484 2021
2022 4,709 9,944 8,265 947 23,865 2022
2023 4,785 10,104 8,398 963 24,249 2023
2024 4,861 10,266 8,532 978 24,637 2024
2025 4,939 10,429 8,668 994 25,029 2025
2026 5,017 10,594 8,805 1,009 25,425 2026
2027 5,096 10,761 8,943 1,025 25,825 2027
2028 5,176 10,929 9,083 1,041 26,229 2028
2029 5,256 11,099 9,225 1,057 26,637 2029
2030 5,337 11,271 9,367 1,074 27,049 2030
2031 5,419 11,444 9,511 1,090 27,465 2031
2032 5,502 11,619 9,657 1,107 27,885 2032
2033 5,586 11,796 9,804 1,124 28,310 2033
2034 5,671 11,975 9,952 1,141 28,739 2034
2035 5,756 12,155 10,102 1,158 29,172 2035
2036 5,842 12,337 10,254 1,175 29,609 2036
2037 5,930 12,521 10,407 1,193 30,051 2037
2038 6,018 12,707 10,561 1,211 30,497 2038
2039 6,107 12,895 10,717 1,229 30,947 2039
2040 6,196 13,085 10,875 1,247 31,402 2040
2041 6,287 13,276 11,034 1,265 31,862 2041
2042 6,379 13,470 11,195 1,283 32,326 2042
2043 6,471 13,665 11,357 1,302 32,795 2043
2044 6,565 13,862 11,521 1,321 33,269 2044
146,997 310,408 257,988 29,573 744,966
Notes:
The projection shown above is provided to meet the requirements 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.
Appendix A
Tax Increment Financing Application
Page 26
Page 27
28
29
30
31
32
33
34
35
36
37
Appendix B
Market Study and Investment Analysis
Report (Investa-Analytics)
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
Page 56
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