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HomeMy WebLinkAbouttid-36-final-project-plan Organizational Joint Review Board Meeting: May 7, 2019 Public Hearing: May 7, 2019 Approval by Plan Commission: May 7, 2019 Adoption by Common Council: June 11, 2019 June 11, 2019 Project Plan for the Creation of Tax Incremental District No. 36 (Merge Redevelopment Project) Approval by the Joint Review Board: June 28, 2019 Tax Incremental District No. 36 Creation Project Plan City of Oshkosh Officials Common Council Lori Palmeri Mayor Steve Herman Deputy Mayor Debra L. Allison-Aasby Council Member Jake Krause Council Member Bill Miller Council Member Matt Mugerauer Council Member Bob Poeschl Council Member City Staff Mark Rohloff City Manager Allen Davis Community Development Director Lynn Lorenson City Attorney Mark Lyons Interim Planning Director Kelly Nieforth Economic Development Services Manager Trena Larson Finance Director Pamela Ubrig City Clerk Plan Commission Thomas Fojtik, Chair Thomas Perry Kathleen Propp, Vice-Chair Robert Vajgrt Ed Bowen Derek Groth Mike Ford John Kiefer John Hinz Andrew Mott Lori Palmeri, Mayor Joint Review Board Mark Rohloff, City Manager City Representative Mark Harris, County Executive Winnebago County Amy Van Straten, Chief Financial Officer Fox Valley Technical College District Barbara Herzog, School Board President Oshkosh School District Burk Tower Public Member Table of Contents EXECUTIVE SUMMARY ........................................................................................................................................... 4  TYPE AND GENERAL DESCRIPTION OF DISTRICT ........................................................................................ 6  PRELIMINARY MAPS OF PROPOSED DISTRICT BOUNDARY ...................................................................... 7  MAPS SHOWING EXISTING USES AND CONDITIONS ................................................................................. 10  PRELIMINARY PARCEL LIST AND ANALYSIS ................................................................................................. 12  EQUALIZED VALUE TEST ..................................................................................................................................... 13  STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PUBLIC WORKS AND OTHER PROJECTS ................................................................................................................................................................ 14  MAP SHOWING PROPOSED IMPROVEMENTS AND USES ......................................................................... 16  DETAILED LIST OF PROJECT COSTS .............................................................................................................. 18  ECONOMIC FEASIBILITY STUDY, FINANCING METHODS, AND THE TIME WHEN COSTS OR MONETARY OBLIGATIONS RELATED ARE TO BE INCURRED .................................................................. 19  ANNEXED PROPERTY........................................................................................................................................... 24  ESTIMATE OF PROPERTY TO BE DEVOTED TO RETAIL BUSINESS ...................................................... 24  PROPOSED ZONING ORDINANCE CHANGES ................................................................................................ 24  PROPOSED CHANGES IN MASTER PLAN, MAP, BUILDING CODES AND CITY OF OSHKOSH ORDINANCES .......................................................................................................................................................... 24  RELOCATION ........................................................................................................................................................... 24  ORDERLY DEVELOPMENT OF THE CITY OF OSHKOSH ............................................................................. 25  LIST OF ESTIMATED NON-PROJECT COSTS ................................................................................................. 25  26  CALCULATION OF THE SHARE OF PROJECTED TAX INCREMENTS ESTIMATED TO BE PAID BY THE OWNERS OF PROPERTY IN THE OVERLYING TAXING JURISDICTIONS ...................................... 27  OPINION OF ATTORNEY FOR THE CITY OF OSHKOSH ADVISING WHETHER THE PLAN IS COMPLETE AND COMPLIES WITH WISCONSIN STATUTES 66.1105 ......................................................  _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 4 June 12, 2019 SECTION 1: Executive Summary Description of District Tax Incremental District (“TID”) No. 36 (“District”) is a proposed 5.82-acre blighted area district consisting of three parcels currently owned by the City’s Redevelopment Authority located on Marion Road and Jackson Street. The District will be created to pay the costs of incentives needed to facilitate development of a mixed-use project consisting of 240 residential units and approximately 39,000 square feet of commercial space (“Project”) to be developed by Merge Urban Development Group (“Developer”). The parcels to be included in the District are currently located within both Tax Incremental District No. 13 and Tax Incremental District No. 21. Any increased valuation occurring after January 1, 2019 will be captured as increment within Tax Incremental District No. 36. Authority The City is creating the District under the provisions of Wis. Stat. § 66.1105. Estimated Total Project Cost Expenditures The City anticipates making total expenditures of approximately $10 million (“Project Costs”) to undertake the projects listed in this Project Plan (“Plan”). Project Costs include an estimated $9.8 million in development incentive principal and interest, and an estimated $215,000 in District administrative expense. Incremental Valuation The City projects that an increase in land and improvements value of approximately $26 million will result from the Project. Creation of this additional value will be made possible by the Project Costs made within the District. Assumptions as to the development timing and associated values are included in Section 10 of this Plan. Expected Termination of District Based on the Economic Feasibility Study located within Section 10 of this Plan, the City anticipates that the District will generate enough tax increment to pay all Project Costs within 17 of its allowable 27 years. Summary of Findings As required by Wis. Stat. § 66.1105, and as documented in this 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 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 reaching this determination, the City has considered a review of the Project’s sources and uses, and cash flow proforma. Ehlers’ evaluation examined the Project’s cash on cash returns. From Project stabilization in 2023 through 2029 the average cash on cash return without incentives is 3.55%. With incentives, this return improves to an average of 7.69%. To attract investment capital, most projects require a cash on cash return of 8% to 12% dependent on the risk profile. At the end of the incentive term, the Project reflects _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 5 June 12, 2019 projected returns of 10% or greater. Based on Ehlers review, provision of pay as you go development incentives in the amount requested is necessary to provide an acceptable return on investment and indicates that “but for” the assistance, the project would not likely proceed. 2. The economic benefits of the 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 that the Project will provide increased employment opportunities, provision of housing to meet existing demand and provision of space to accommodate retail and service businesses to support residents and workers in the 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. As required by Wis. Stat. § 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 prepared and can be found in Appendix A of this plan. However, because the Project would not occur without the use of tax incremental financing, these tax increments would not be paid but for creation of the District. Accordingly, the City finds that the benefits expected to be realized as set forth in this Plan outweigh the value of the tax increments to be invested in the Project. 4. Not less than 50% by area of the real property within the District is a blighted area as defined by Wis. Stat. § 66.1105(2)(ae)1. and as further detailed in Section 5 of the Plan. 5. Based on the foregoing finding, the District is designated as a blighted area district. 6. The Project Costs relate directly to the elimination of blight in the District, consistent with the purpose for which the District is created. 7. Improvements to be made in the District are likely to significantly enhance the value of substantially all of the other real property in the District. 8. The equalized value of taxable property in the District, plus the incremental value 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. That there are no parcels to be included within the District that were annexed by the City within the three-year period preceding adoption of this Resolution. 10. 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 Section 66.1105(5)(b). 11. The Plan for the District is feasible and is in conformity with the Master Plan of the City. _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 6 June 12, 2019 SECTION 2: Type and General Description of District The District is a proposed 5.82-acre blighted area district consisting of three parcels currently owned by the City’s Redevelopment Authority located on Marion Road and Jackson Street. The District will be created to pay the costs of incentives needed to facilitate development of a mixed-use project consisting of 240 residential units and approximately 39,000 square feet of commercial space (“Project”) to be developed by Merge Urban Development Group (“Developer”). The parcels to be included in the District are currently located within both Tax Incremental District No. 13 and Tax Incremental District No. 21. Any increased valuation occurring after January 1, 2019 will be captured as increment within Tax Incremental District No. 36. _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 7 June 12, 2019 SECTION 3: Preliminary Maps of Proposed District Boundary _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 8 June 12, 2019 _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 9 June 12, 2019 _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 10 June 12, 2019 SECTION 4: Maps Showing Existing Uses and Conditions _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 11 June 12, 2019 _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 12 June 12, 2019 SECTION 5: Preliminary Parcel List and Analysis The following table identifies the parcels to be included in the District. The entirety of the area is a blighted area as defined in Wis. Stat. § 66.1105(2)(ae). Specifically, the District consists of land upon which buildings or structures have been demolished and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of the community. City of Oshkosh, Wisconsin Tax Increment District # 36 Base Property Information District  Classification Map  ID #Parcel Number Street Address Owner Acreage TID  Overlaps Land Imp PP Total Equalized  Value  Ratio Land Imp PP Total Blighted Area 1 01‐0202‐0000 0 JACKSON ST REDEVELOPMENT AUTH  CITY OF OSHKOSH 1.78 TID 13/  TID 21 0 0 0 0 94.83% 0 0 0 0 1.78 2 01‐0200‐0200 0 MARION RD REDEVELOPMENT AUTH  CITY OF OSHKOSH 1.41 TID 13/  TID 21 0 0 0 0 94.83% 0 0 0 0 1.41 3 01‐0222‐0300 0 MARION RD REDEVELOPMENT AUTH  CITY OF OSHKOSH 2.63 TID 13/  TID 21 0 0 0 0 94.83% 0 0 0 0 2.63 0 94.83% 0 0 0 0 Total Acreage 5.82 0 0 0 0 0 0 0 5.82 100.00% Estimated Base Value 0 Property Information Assessment Information Equalized Value _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 13 June 12, 2019 SECTION 6: Equalized Value Test The following calculations demonstrate that the City expects to be in compliance with Wis. Stat. § 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 $147,710,300. This value is less than the maximum of $488,841,912 in equalized value that is permitted for the City. District Creation Date 5/28/2019 Valuation Data Percent Valuation Data Currently Available Change Est. Creation Date 2018 Total EV (TID In) 4,073,682,600 4,073,682,600 12% Test 488,841,912 488,841,912 Increment of Existing TIDs 147,710,300 147,710,300 Total Existing Increment 147,710,300 147,710,300 Projected Base of New or Amended District 0 0 Less Value of Any Underlying TID Parcels 0 0 Total Value Subject to 12% Test 147,710,300 147,710,300 Compliance PASS PASS City of Oshkosh, Wisconsin Tax Increment District # 36 Valuation Test Compliance Calculation _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 14 June 12, 2019 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 as outlined in this Plan. Project Costs will be diminished by any income, special assessments or other revenues, including user fees or charges, other than tax increments, received or reasonably expected to be received in connection with the implementation of the Plan. If Project Costs incurred benefit territory outside the District, a 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, design and construction is completed. With all Project Costs, 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. The following is a list of public works and other tax incremental financing eligible Project Costs that the City expects to make, or may need to make, in conjunction with the implementation of the District’s Plan. The map found in Section 7 of this Plan along with the Detailed List of Project Costs found in Section 9 provide additional information as to the kind, number and location of potential Project Costs. Public Improvements Jackson Street Bridge Construction or Rehabilitation The Wisconsin Department of Transportation has advised the City that it plans to reconstruct or rehabilitate the Jackson Street Bridge, although the timeline and scope of work is uncertain. To the extent the reconstruction or rehabilitation work requires the City to modify existing infrastructure such as sidewalks or the riverwalk within the District, the adjoining rights of way or other areas located within ½ mile of the District’s boundaries, the City’s cost for such infrastructure are eligible Project Costs to the extent they benefit the District and are necessary for the implementation of its Project Plan. The City has not specifically identified a cost for these improvements in the Detailed List of Project Costs section of this Plan as they remain unknown. To the extent incurring these costs becomes necessary, they would be made in addition to the specific costs identified in this Plan without requiring that this Plan be further amended. Site Preparation Activities Environmental Audits and Remediation If 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. Community Development Cash Grants (Development Incentives) The City may enter into agreements with property owners, lessees, or developers of land located within the District for 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. _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 15 June 12, 2019 Miscellaneous 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 relating to the implementation of the Plan. _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 16 June 12, 2019 SECTION 8: Map Showing Proposed Improvements and Uses _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 17 June 12, 2019 _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 18 June 12, 2019 SECTION 9: Detailed List of Project Costs The following list identifies the Project Costs that the City currently expects to incur in implementing the District’s Plan. All projects identified, and related costs reflect the best estimates available as of the date of preparation of this Plan. All costs are preliminary estimates and may increase or decrease. Certain Project Costs listed may become unnecessary, and other Project Costs not currently identified may need to be made. (Section 7 details the general categories of eligible Project Costs). Changes in Project Cost totals or the types of Project Costs to be incurred will not require that this Plan be amended. This Plan is not meant to be a budget nor an appropriation of funds for specific Project Costs, but a framework within which to manage Project Costs Project Name/Type Estimated Cost Development Incentives1 9,820,250 TIF Administrative Expenses 215,256 Total Projects 10,035,506 Notes: 1Incentive amount shown for purposes of establishing economic feasibility only. The City has not agreed to terms or  1conditions with the proposed Developer as to any public participation in the project. City of Oshkosh, Wisconsin Tax Increment District # 36 Detailed List of Project Costs _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 19 June 12, 2019 SECTION 10: Economic Feasibility Study, Financing Methods, and the Time When Costs or Monetary Obligations Related are to be Incurred This Section includes a forecast of the valuation increases expected within the District, the associated tax increment collections, a summary of how Project Costs would be financed, and a projected cash flow demonstrating that the District is economically feasible. Key Assumptions The Project Costs the City plans to make are expected to create $26 million in incremental value by January 1, 2023. The development Project estimated valuations and timing are included in Table 1. Assuming the City’s current equalized TID Interim tax rate of $25.11 per thousand of equalized value, and no economic appreciation or depreciation, the Project would generate $16,971,029 in incremental tax revenue over the 27-year term of the District as shown in Table 2. _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 20 June 12, 2019 Building Site J Building Site I Building Site H Annual Total 1 2019 7,370,542 7,370,542 2019 1 2 2020 11,167,489 357,776 850,712 12,375,977 2020 2 3 2021 3,796,946 542,085 850,712 5,189,743 2021 3 4 2022 184,309 876,491 1,060,800 2022 4 5 2023 0 2023 5 6 2024 0 2024 6 7 2025 0 2025 7 8 2026 0 2026 8 9 2027 0 2027 9 10 2028 0 2028 10 11 2029 0 2029 11 12 2030 0 2030 12 13 2031 0 2031 13 14 2032 0 2032 14 15 2033 0 2033 15 16 2034 0 2034 16 17 2035 0 2035 17 18 2036 0 2036 18 19 2037 0 2037 19 20 2038 0 2038 20 21 2039 0 2039 21 22 2040 0 2040 22 23 2041 0 2041 23 24 2042 0 2042 24 25 2043 0 2043 25 26 2044 0 2044 26 27 2045 0 2045 27 Totals 22,334,977 1,084,170 2,577,916 25,997,063 City of Oshkosh Tax Increment District No. 36 Development Assumptions Construction Year Construction Year Table 1 – Development Assumptions _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 21 June 12, 2019 Type of District Base Value 0 District Creation Date Appreciation Factor 0.00% Valuation Date Jan 1, 2019 Base Tax Rate $25.11 Max Life (Years) Rate Adjustment Factor Expenditure Period/Termination 22 5/28/2041 Revenue Periods/Final Year 27 2047 Extension Eligibility/Years Yes 3 Tax Exempt Discount Rate 0.00% Recipient District Taxable Discount Rate 0.00% Construction Year Value Added Valuation Year Inflation Increment Total Increment Revenue Year Tax Rate1 Tax Increment 1 2019 7,370,542 2020 0 7,370,542 2021 $25.11 185,043 2 2020 12,375,977 2021 0 19,746,519 2022 $25.11 495,750 3 2021 5,189,743 2022 0 24,936,263 2023 $25.11 626,043 4 2022 1,060,800 2023 0 25,997,063 2024 $25.11 652,675 5 2023 0 2024 0 25,997,063 2025 $25.11 652,675 6 2024 0 2025 0 25,997,063 2026 $25.11 652,675 7 2025 0 2026 0 25,997,063 2027 $25.11 652,675 8 2026 0 2027 0 25,997,063 2028 $25.11 652,675 9 2027 0 2028 0 25,997,063 2029 $25.11 652,675 10 2028 0 2029 0 25,997,063 2030 $25.11 652,675 11 2029 0 2030 0 25,997,063 2031 $25.11 652,675 12 2030 0 2031 0 25,997,063 2032 $25.11 652,675 13 2031 0 2032 0 25,997,063 2033 $25.11 652,675 14 2032 0 2033 0 25,997,063 2034 $25.11 652,675 15 2033 0 2034 0 25,997,063 2035 $25.11 652,675 16 2034 0 2035 0 25,997,063 2036 $25.11 652,675 17 2035 0 2036 0 25,997,063 2037 $25.11 652,675 18 2036 0 2037 0 25,997,063 2038 $25.11 652,675 19 2037 0 2038 0 25,997,063 2039 $25.11 652,675 20 2038 0 2039 0 25,997,063 2040 $25.11 652,675 21 2039 0 2040 0 25,997,063 2041 $25.11 652,675 22 2040 0 2041 0 25,997,063 2042 $25.11 652,675 23 2041 0 2042 0 25,997,063 2043 $25.11 652,675 24 2042 0 2043 0 25,997,063 2044 $25.11 652,675 25 2043 0 2044 0 25,997,063 2045 $25.11 652,675 26 2044 0 2045 0 25,997,063 2046 $25.11 652,675 27 2045 0 2046 0 25,997,063 2047 $25.11 652,675 Totals 25,997,063 0 Future Value of Increment 16,971,029 Notes: 1Tax rate shown is actual rate for 2018/19 levy taken from DOR Form PC-202 (Tax Increment Collection Worksheet). 27 Yes City of Oshkosh Tax Increment District No. 36 Tax Increment Projection Worksheet Blighted Area May 28, 2019 Table 2 – Tax Increment Projection Worksheet _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 22 June 12, 2019 Financing and Implementation Expected District Project Costs consist of development incentive principal and interest in an estimated amount of $9.8 million, and an estimated $215,000 in District administrative expense. All Project Costs will be paid from tax increment as it is received, and the City’s obligation to make development incentive payments will be limited to tax increment generated by the Project and subject to annual appropriation. The City will advance funds as needed to pay District administrative expenses prior to the availability of tax increments. Based on assumed $6.3 million development incentive payment accruing interest at 5% as shown in the cash flow exhibit (Table 3), the District is projected to accumulate enough funds by the year 2037 to pay off all Project related debt and other District liabilities and obligations. The projected early closure is based on the various assumptions noted in this Plan and will vary dependent on actual Project Costs incurred and the actual amount of tax increments collected. _________________________________________________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 23 June 12, 2019 City of Oshkosh Tax Increment District No. 36 Cash Flow Projection Year 6,300,000 Principal Est. Rate Interest Year 2019 0 30,000 30,000 (30,000) (30,000)2019 2020 0 5,000 5,000 (5,000) (35,000)6,300,000 2020 2021 185,043 185,043 0 5.00% 315,000 5,100 5,100 179,943 144,943 6,300,000 2021 2022 495,750 495,750 0 5.00% 315,000 630,000 5,202 635,202 (139,452)5,491 6,300,000 2022 2023 626,043 626,043 210,000 5.00% 309,750 519,750 5,306 525,056 100,987 106,478 6,090,000 2023 2024 652,675 652,675 280,000 5.00% 297,500 577,500 5,412 582,912 69,763 176,240 5,810,000 2024 2025 652,675 652,675 290,000 5.00% 283,250 573,250 5,520 578,770 73,904 250,145 5,520,000 2025 2026 652,675 652,675 305,000 5.00% 268,375 573,375 5,631 579,006 73,669 323,813 5,215,000 2026 2027 652,675 652,675 320,000 5.00% 252,750 572,750 5,743 578,493 74,181 397,995 4,895,000 2027 2028 652,675 652,675 340,000 5.00% 236,250 576,250 5,858 582,108 70,566 468,561 4,555,000 2028 2029 652,675 652,675 355,000 5.00% 218,875 573,875 5,975 579,850 72,824 541,385 4,200,000 2029 2030 652,675 652,675 375,000 5.00% 200,625 575,625 6,095 581,720 70,955 612,340 3,825,000 2030 2031 652,675 652,675 395,000 5.00% 181,375 576,375 6,217 582,592 70,083 682,423 3,430,000 2031 2032 652,675 652,675 415,000 5.00% 161,125 576,125 6,341 582,466 70,209 752,632 3,015,000 2032 2033 652,675 652,675 435,000 5.00% 139,875 574,875 6,468 581,343 71,332 823,963 2,580,000 2033 2034 652,675 652,675 455,000 5.00% 117,625 572,625 6,597 579,222 73,452 897,416 2,125,000 2034 2035 652,675 652,675 480,000 5.00% 94,250 574,250 6,729 580,979 71,695 969,111 1,645,000 2035 2036 652,675 652,675 505,000 5.00% 69,625 574,625 6,864 581,489 71,186 1,040,297 1,140,000 2036 2037 652,675 652,675 530,000 5.00% 43,750 573,750 7,001 580,751 71,924 1,112,220 610,000 2037 2038 652,675 652,675 610,000 5.00% 15,250 625,250 7,141 632,391 20,283 1,132,504 0 2038 2039 652,675 652,675 5.00% 0 0 7,284 7,284 645,391 1,777,894 0 2039 2040 652,675 652,675 5.00% 0 0 7,430 7,430 645,245 2,423,139 0 2040 2041 652,675 652,675 5.00% 0 0 7,578 7,578 645,096 3,068,236 0 2041 2042 652,675 652,675 5.00% 0 0 7,730 7,730 644,945 3,713,181 0 2042 2043 652,675 652,675 5.00% 0 0 7,884 7,884 644,790 4,357,971 0 2043 2044 652,675 652,675 5.00% 0 0 8,042 8,042 644,633 5,002,603 0 2044 2045 652,675 652,675 5.00% 0 0 8,203 8,203 644,472 5,647,075 0 2045 2046 652,675 652,675 5.00% 0 0 8,367 8,367 644,308 6,291,383 0 2046 2047 652,675 652,675 5.00% 0 0 8,534 8,534 644,140 6,935,523 0 2047 Total 16,971,029 16,971,029 6,300,000 3,520,250 9,820,250 215,256 10,035,506 Total Notes: 1Incentive amounts, payment percentages, term and interest rate shown for purposes of establishing economic feasibility only. The City has not 1agreed to terms or conditions with the proposed Developer as to any public participation in the project. Balances Municipal Revenue Obligation (MRO) Total MRO Payment Tax Increments Total Revenues Projected Revenues Projected Expenditures Projected TID Closure TIF Admin. Total Expenditures Annual Cumulative MRO Principal Outstanding Cash Flow Table 3 _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 24 June 12, 2019 SECTION 11: Annexed Property A tax incremental district cannot include annexed territory unless at least three years have elapsed since the annexation, or certain other requirements are met. None of the property within the proposed District boundary was annexed during the past three years. SECTION 12: Estimate of Property to be Devoted to Retail Business Pursuant to Wis. Stat. § 66.1105(5)(b), 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’s current zoning ordinances. Individual properties may require rezoning at the time of development. 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’s Comprehensive Plan identifying the area as appropriate for mixed use development. Development within the District will be required to conform to 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. No changes to the existing regulations are proposed or needed. SECTION 15: Relocation Implementation of this Plan will not require relocation of individuals or business operations. Should implementation of this Plan require relocation of individuals or business operations, relocations will be handled in compliance with Wis. Stat. Chapter 32 and Wis. Admin. Code ADM 92. _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 25 June 12, 2019 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 development of the City through elimination of blight and the provision of appropriate financial incentives that will create opportunities for mixed use development. Through use of tax increment financing, the City can attract new investment that results in increased tax base. Development 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 increased employment opportunities, provision of housing to meet existing demand and provision of space to accommodate retail and service businesses to support residents and workers in the area. SECTION 17: List of Estimated Non-Project Costs Non-project costs are public works projects which only partly benefit the District. Costs incurred that do not benefit the District may not be paid with tax increments. Examples of non-project costs are:  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. No improvements to be made within the District will benefit property outside the District. Furthermore, there will be no improvements made outside the District that will only partially benefit the District. _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 26 June 12, 2019 SECTION 18: Opinion of Attorney for the City of Oshkosh Advising Whether the Plan is Complete and Complies with Wisconsin Statutes 66.1105 _____________________________________________________________________________________________ TID No. 36 Project Plan City of Oshkosh Prepared by Ehlers Page 27 June 12, 2019 DOR Form PC-202 2018/19 Percentage Winnebago County 749,693 20.22% City of Oshkosh 1,482,441 39.98% Oshkosh Area School District 1,320,217 35.60% School District 0.00% Fox Valley Techncial College 156,024 4.21% Total 3,708,374 Revenue Year Winnebago County City of Oshkosh Oshkosh Area School District Fox Valley Techncial College Total Revenue Year 2021 37,409 73,972 65,877 7,785 185,043 2021 2022 100,222 198,179 176,492 20,858 495,750 2022 2023 126,562 250,264 222,877 26,340 626,043 2023 2024 131,946 260,910 232,358 27,460 652,675 2024 2025 131,946 260,910 232,358 27,460 652,675 2025 2026 131,946 260,910 232,358 27,460 652,675 2026 2027 131,946 260,910 232,358 27,460 652,675 2027 2028 131,946 260,910 232,358 27,460 652,675 2028 2029 131,946 260,910 232,358 27,460 652,675 2029 2030 131,946 260,910 232,358 27,460 652,675 2030 2031 131,946 260,910 232,358 27,460 652,675 2031 2032 131,946 260,910 232,358 27,460 652,675 2032 2033 131,946 260,910 232,358 27,460 652,675 2033 2034 131,946 260,910 232,358 27,460 652,675 2034 2035 131,946 260,910 232,358 27,460 652,675 2035 2036 131,946 260,910 232,358 27,460 652,675 2036 2037 131,946 260,910 232,358 27,460 652,675 2037 2038 131,946 260,910 232,358 27,460 652,675 2038 2039 131,946 260,910 232,358 27,460 652,675 2039 2040 131,946 260,910 232,358 27,460 652,675 2040 2041 131,946 260,910 232,358 27,460 652,675 2041 2042 131,946 260,910 232,358 27,460 652,675 2042 2043 131,946 260,910 232,358 27,460 652,675 2043 2044 131,946 260,910 232,358 27,460 652,675 2044 2045 131,946 260,910 232,358 27,460 652,675 2045 2046 131,946 260,910 232,358 27,460 652,675 2046 2047 131,946 260,910 232,358 27,460 652,675 2047 3,430,900 6,784,252 6,041,848 714,029 16,971,029 Notes: 1The projection shown above is provided to meet the requirements of Wis. Stat. § 66.1105(4)(i)4. Estimated Portion of Taxes that Owners of Taxable Property in Each Taxing Jurisdiction  Overlaying District Would Pay by Jurisdiction1 Exhibit A: Calculation of the Share of Projected Tax Increments Estimated to be Paid by the Owners of Property in the Overlying Taxing Jurisdictions 730 WILLIAMSON STREET #331, MADISON, WI 53703 / 604 CLAY STREET, CEDAR FALLS, IA 50613 WWW.MERGEURBANDEVELOPMENT.COM CITY OF OSHKOSHMARION ROAD REDEVELOPMENT PLAN TIF APPLICATION Page 28 Developer's Cover Letter .................................................................................................................Pg. 1-3 City Application .................................................................................................................................Pg. 4-8 Application Narratives .....................................................................................................................Pg. 9-12 Site Plan ..............................................................................................................................................Pg. 13 US Bank Letter of Support .............................................................................................................Pg. 14 Capital Partner Letter of Support .................................................................................................Pg. 15 Letter of Recommendation .............................................................................................................Pg. 16 Ehlers Financial Analysis .................................................................................................................Pg. 17-22 TABLE OF CONTENTS Page 29 1 DEVELOPER’S COVER LETTER Page 30 2 DEVELOPER’S COVER LETTER Page 31 3 DEVELOPER’S COVER LETTER Page 32 4 CITY APPLICATION Page 33 5 CITY APPLICATION Page 34 6 CITY APPLICATION Page 35 7 CITY APPLICATION Page 36 8 CITY APPLICATION Page 37 9 APPLICATION NARRATIVES Page 38 10 APPLICATION NARRATIVES Page 39 11 APPLICATION NARRATIVES Page 40 12 APPLICATION NARRATIVES Page 41 13 SITE PLAN Page 42 14 US BANK LETTER OF SUPPORT Page 43 15 CAPITAL PARTNER LETTER OF SUPPORT Page 44 16 LETTER OF RECOMMENDATION Page 45 17 EHLERS FINANCIAL ANALYSIS Page 46 18 EHLERS FINANCIAL ANALYSIS Page 47 19 EHLERS FINANCIAL ANALYSIS Page 48 20 EHLERS FINANCIAL ANALYSIS Page 49 21 EHLERS FINANCIAL ANALYSIS Page 50 22 EHLERS FINANCIAL ANALYSIS Page 51 __________________________________ Plan Commission Minutes May 7, 2019 PLAN COMMISSION MINUTES May 7, 2019 PRESENT: Ed Bowen, Michael Ford, John Hinz, Lori Palmeri, Thomas Perry, Kathleen Propp, Robert Vajgrt EXCUSED: Thomas Fojtik, Derek Groth, John Kiefer, Andrew Mott STAFF: Darryn Burich, Planning Director; Kelly Nieforth, Economic Development Services Manager; Justin Gierach, Engineering Division Manager / City Engineer; Mark Lyons, Principal Planner; Jeff Nau, Associate Planner; Brian Slusarek, Assistant Planner; Steven Wiley, Assistant Planner; Mina Kuss, Recording Secretary Vice Chairperson Propp called the meeting to order at 4:00 pm. Roll call was taken and a quorum declared present. The minutes of April 16, 2019 were approved as presented. (Vajgrt/Hinz) V. PUBLIC HEARING: PROPOSED CREATION OF TAX INCREMENT FINANCING DISTRICT NO. 36 MERGE REDEVELOPMENT PROJECT; DESIGNATION OF BOUNDARIES AND APPROVAL OF PROJECT PLAN Site Inspections Report: Mr. Ford and Ms. Propp reported visiting the site. Staff report accepted as part of the record. Tax Incremental District No. 36 (the “TID” or “District”) is a proposed 5.82 acre blighted area district located in the vicinity of the Jackson Street/Marion Road/Pearl Avenue intersections. The proposed district is comprised of three parcels owned by the City’s Redevelopment Authority. Proposed TID No. 36 would overlap TIDs No. 13 (Marion Road) and TID No. 21 (Fox River Corridor) with any increased valuation occurring after January 1, 2019 being captured by the new district. Mr. Burich presented the item and discussed the purpose of the proposed TID creation. The City is projecting that new land and improvements value of approximately $26 million will result from redevelopment activity within the District. The developer is proposing a mixture of residential, commercial and office uses. The parcels are described as Parcels J, H and I as found in the Marion Road Pearl Avenue Redevelopment Plan. Site J is approximately 2.62 acres and is proposed to consist of three buildings and associated surface parking. Site H is approximately 1.78 acres in size and is proposed to consist of parking lot and a 2-story mixed use building. Site I is 1.41 acres in size and is proposed to consist of nine two-story town home units and a surface parking lot. The developer is anticipating being able to fully develop the district by sometime in 2022 starting with the $22 million Site J on the river. The District is being created as a blighted area district as defined in Wis. Stat. 66.1105(2)(ae). Specifically, the District consists of land upon which buildings or Page 52 __________________________________ Plan Commission Minutes May 7, 2019 structures have been demolished and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of the community. In this particular case, all of the parcels involved contain either some levels of environmental contamination or poor structural soils due to the historic industrial uses of the area increasing development costs. The proposed Plan is in general conformance with the City of Oshkosh’s Comprehensive Plan identifying the area as appropriate for Center City mixed use development. The development is also consistent with the Marion Road/Pearl Avenue Redevelopment Guidelines 2003 identifying the area as appropriate for a mixed-use development pattern with strong urban streetwall fabric which the associated Planned Development is proposing. Ms. Propp opened up technical questions to staff. Ms. Propp inquired about the Plan Commission’s function. Mr. Burich stated the Plan Commission’s role is to look at the project plan and decide if it is consistent with the Comprehensive and local plans. He said they have relied heavily on Common Council to make the decisions about the cash flow portion. He said it is all part of the plan but would prefer Plan Commission to focus on consistency with other plans. Ms. Palmeri questioned if Anthem would consider having a building that is one story taller as a problem in terms of views. Mr. Burich said he has not heard anything from Anthem. Ms. Palmeri questioned the rent rate of the upper floors and if the project would devalue Anthem’s rates. Mr. Burich said he wouldn’t think so. He said Anthem will have an impacted view but will still have good views of the river. He said only one side is impacted. Ms. Propp opened up the public hearing. There were no public comments on this item. Ms. Propp closed the public hearing. Motion by Vajgrt to adopt the project plan and recommending the boundaries to the council and adopting the staff report as the findings. Seconded by Ford. Ms. Propp asked if there was any discussion about the motion. Ms. Propp inquired about the TIF districts overlapping. Page 53 __________________________________ Plan Commission Minutes May 7, 2019 Mr. Burich explained the new value would go to the new TIF #36 and the old value would be frozen / maintained. Motion carried 6-0. There being no further business, the meeting adjourned at approximately 6:25 pm. (Vajgrt/Hinz) Respectfully submitted, Darryn Burich Director of Planning Services Page 54 JUNE 11, 2019 19-351 RESOLUTION CARRIED 6-0 LOST LAID OVER WITHDRAWN PURPOSE: APPROVE TAX INCREMENT DISTRICT NO. 36 PROJECT PLAN; DESIGNATE TAX INCREMENT DISTRICT NO. 36 BOUNDARIES; CREATE TAX INCREMENT DISTRICT NO. 36 MERGE REDEVELOPMENT INITIATED BY: CITY ADMINISTRATION PLAN COMMISSION RECOMMENDATION: Approved WHEREAS, the City of Oshkosh (the "City") has determined that use of Tax Incremental Financing is required to promote development and redevelopment within the City; and WHEREAS, Tax Increment District No. 36 (the "District") is proposed to be created by the City as a blighted area district in accordance with the provisions of Wisconsin Statutes Section 66.1105 (the "Tax Increment Law"); and WHEREAS, a Project Plan for the District has been prepared that includes: a. A statement listing the kind,number and location of all proposed public works or improvements within the District, or to the extent provided in Wisconsin Statutes Sections 66.1105(2)(k) and 66.1105(4)(gm), outside of the District; b. An economic feasibility study; c. A detailed list of estimated project costs; d. A description of the methods of financing all estimated project costs and the time when the related costs or monetary obligations are to be incurred; e. A map showing existing uses and conditions of real property in the District; f. A map showing proposed improvements and uses in the District; g. Proposed changes of zoning ordinances, master plan, map,building codes and City ordinances; h. A list of estimated non-project costs; i. A statement of the proposed plan for relocation of any persons to be displaced; j. A statement indicating how the District promotes the orderly development of the City; Page 55 JUNE 11, 2019 19-351 RESOLUTION CONT'D k. An opinion of the City Attorney or of an attorney retained by the City advising that the plan is complete and complies with Wisconsin Statutes Section 66.1105(4)(f); and WHEREAS, prior to its publication, a copy of the notice of public hearing was sent to owners of all property in the proposed district, to the chief executive officers of Winnebago County, the Oshkosh Area School District, and the Fox Valley Technical College District, and any other entities having the power to levy taxes on property located within the District, in accordance with the procedures specified in the Tax Increment Law; and WHEREAS, in accordance with the procedures specified in the Tax Increment Law, the Plan Commission, on May 7, 2019 held a public hearing concerning the project plan and boundaries and proposed creation of the District, providing interested parties a reasonable opportunity to express their views thereon; and WHEREAS, after said public hearing, the Plan Commission designated the boundaries of the District, adopted the Project Plan, and recommended to the Common Council that it create such District and approve the Project Plan NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that: 1.The boundaries of the District shall be named "City of Oshkosh Tax Increment District No. 36, Merge Redevelopment", are hereby established as specified in Exhibit A of this Resolution. 2.The District is created effective as of January 1, 2019. 3.The Common Council finds and declares that: a) 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. b) Based upon the findings, as stated in 3(a) above, the District is declared to be a blighted area district based on the identification and classification of the property included within the District. Page 56 JUNE 11, 2019 19-351 RESOLUTION CONT'D c) The improvement of such area is likely to significantly enhance the value of substantially all of the other real property in the District. d) The equalized value of the taxable property in the District plus the incremental value of all other existing tax incremental districts within the City, does not exceed 12% of the total equalized value of taxable property within the City. e) 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 Section 66.1105(5)(b). f) The project costs relate directly to promoting elimination of blight consistent with the purpose for which the District is created. g) All property within TID #36 was within the City boundaries as of January 1, 2004. 4. The attached Project Plan for "City of Oshkosh Tax Increment District No. 36, Merge Redevelopment" is hereby approved, and the City further finds the Plan is feasible and in conformity with the master plan of the City. BE IT FURTHER RESOLVED that the Common Council of the City of Oshkosh hereby approves creation of Tax Incremental Financing District No. 36 Merge Redevelopment. Page 57 Exhibit A" TID 36 Merge Redevelopment Legal Description ALL OF LOT 2 OF CERTIFIED SURVEY MAP NUMBER 6553 RECORDED AS DOCUMENT NUMBER 1577796,WINNEBAGO COUNTY REGISTER OF DEEDS, LOT 3 OF CERTIFIED SURVEY MAP NUMBER 7068 RECORDED AS DOCUMENT NUMBER 1709684, WINNEBAGO COUNTY REGISTER OF DEEDS,LOT 2 OF CERTIFIED SURVEY MAP NUMBER 7150 RECORDED AS DOCUMENT NUMBER 1724920,WINNEBAGO COUNTY REGISTER OF DEEDS,AND PART OF MARION ROAD, ALL LOCATED IN THE SOUTHEAST 1/4 OF THE NORTHEAST 1/4 AND THE NORTHEAST 1/4 OF THE SOUTHEAST 1/4,SECTION 23,TOWNSHIP 18 NORTH, RANGE 16 EAST, CITY OF OSHKOSH, WINNEBAGO COUNTY,WISCONSIN,BOUNDED AND DESCRIBED AS FOLLOWS: COMMENCING FROM THE EAST 1/4 CORNER OF SAID SECTION 23,TOWNSHIP 18 NORTH, RANGE 16 EAST;THENCE S89°34'30"W, 70.48 FEET ALONG THE SOUTH LINE OF SAID SOUTHEAST 1/4 OF THE NORTHEAST 1/4 TO A POINT ON THE WEST LINE OF JACKSON STREET AND POINT OF BEGINNING;THENCE S01°20'11"E,3.93 FEET ALONG SAID WEST LINE TO THE SOUTHEAST CORNER OF SAID LOT 2 OF CERTIFIED SURVEY MAP NUMBER 6553;THENCE S88°39'43"W,314.04 FEET ALONG THE SOUTH LINE OF SAID LOT 2 TO A POINT ON THE EAST LINE OF SAID LOT 2 OF CERTIFIED SURVEY MAP NUMBER 7150;THENCE S01°3928"E,249.88 FEET ALONG THE EAST LINE OF SAID LOT 2 TO A POINT ON THE NORTH LINE OF MARION ROAD, ALSO BEING THE BEGINNING OF A 349.43 FOOT RADIUS CURVE CONCAVE TO THE NORTH; THENCE 2.75 FEET ALONG SAID CURVE WITH A CHORD BEARING N88047'20"E, 2.75 FEET; THENCE N8803348"E,310.32 FEET ALONG SAID NORTH LINE AND EXTENDED NORTH OF MARION ROAD TO A POINT ON THE EXTENDED WEST LINE OF JACKSON STREET;THENCE S01024'37"E,441.96 FEET ALONG SAID EXTENDED WEST LINE AND WEST LINE OF JACKSON STREET;THENCE S8803523"W,30.00 FEET ALONG A SOUTH LINE OF SAID LOT 3 OF CERTIFIED SURVEY MAP NUMBER 7068;THENCE S0500642"W,88.04 FEET ALONG AN EAST LINE OF SAID LOT 3;THENCE N6504326"W,381.07 FEET ALONG A SOUTH LINE OF SAID LOT 3 TO THE SOUTHWEST CORNER OF SAID LOT 3;THENCE N24013'38"E, 188.89 FEET ALONG A WEST LINE OF SAID LOT 3;THENCE N1704937"W,97.21 FEET ALONG A WEST LINE OF SAID LOT 3 TO THE NORTHWEST CORNER OF SAID LOT 3,ALSO BEING A POINT ON THE SOUTH LINE OF MARION ROAD;THENCE N65054'10"W, 91.57 FEET ALONG SAID SOUTH LINE;THENCE N6502622"W,262.96 FEET ALONG SAID SOUTH LINE TO A POINT ON THE EXTENDED WEST LINE OF SAID LOT 2 OF CERTIFIED SURVEY MAP NUMBER 7150;THENCE N29021'00"E, 190.85 FEET ALONG SAID EXTENDED WEST LINE AND WEST LINE OF SAID LOT 2;THENCE N3702342"E, 15.13 FEET ALONG THE WEST LINE OF SAID LOT 2;THENCE N37020'01"E, 60.15 FEET ALONG THE WEST LINE OF SAID LOT 2 TO THE NORTHWEST CORNER OF SAID LOT 2;THENCE N89034'30"E, 189.24 FEET ALONG THE NORTH LINE OF SAID LOT 2 TO THE NORTHEAST CORNER OF SAID LOT 2,ALSO BEING A POINT ON THE WEST LINE OF SAID LOT 2 OF CERTIFIED SURVEY MAP NUMBER 6553; THENCE N0103928"W, 83.71 FEET ALONG THE WEST LINE OF SAID LOT 2;THENCE N36057'26"E, 290.27 FEET ALONG THE NORTHWESTERLY LINE OF SAID LOT 2 TO A POINT ON THE SOUTHERLY LINE OF PEARL AVENUE;THENCE S53002'34"E, 159.59 FEET ALONG SAID SOUTHERLY LINE TO THE BEGINNING OF A 25.00 FOOT RADIUS CURVE CONCAVE TO THE SOUTHWEST;THENCE 22.56 FEET ALONG SAID CURVE WITH A CHORD BEARING S27011'23"E, 21.80 FEET TO A POINT ON THE WEST LINE OF JACKSON STREET;THENCE S01020'11"E,212.53 FEET ALONG SAID WEST LINE TO THE POINT OF BEGINNING. SAID AREA CONTAINS 315,041 SQUARE FEET OR 7.232 ACRES,MORE OR LESS. Page 58 Page 59 Page 60