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Home My WebLink Abouttid-38-final-project-plan September 3, 2019 Project Plan for the Creation of Tax Incremental District No. 38 (Pioneer Redevelopment) Organizational Joint Review Board Meeting: September 3, 2019 Public Hearing: September 3, 2019 Approval by Plan Commission: September 3, 2019 Adoption by Common Council: September 24, 2019 Approval by the Joint Review Board: September 26, 2019 Tax Incremental District No. 38 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 William 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 Planning Services Manager Kelly Nieforth Economic Development Services Manager Russ Van Gompel Interim Finance Director Pamela Ubrig City Clerk Plan Commission Thomas Fojtik, Chair John Kiefer Kathleen Propp, Vice-Chair Justin Mitchell Lynnsey Erickson Lori Palmeri, Mayor Mike Ford Thomas Perry Derek Groth John Hinz 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 William Castle Public Member Table of Contents EXECUTIVE SUMMARY .............................................................................................................................. 4 TYPE AND GENERAL DESCRIPTION OF DISTRICT ................................................................................ 7 PRELIMINARY MAPS OF PROPOSED DISTRICT BOUNDARY ................................................................ 8 MAPS SHOWING EXISTING USES AND CONDITIONS .......................................................................... 11 PRELIMINARY PARCEL LIST AND ANALYSIS ........................................................................................ 13 EQUALIZED VALUE TEST ......................................................................................................................... 14 STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PU BLIC WORKS AND OTHER PROJECTS ................................................................................................................................................. 15 MAP SHOWING PROPOSED IMPROVEMENTS AND USES .................................................................. 18 DETAILED LIST OF PROJECT COSTS ..................................................................................................... 20 ECONOMIC FEASIBILITY STUDY, FINANCING METHODS, AND THE TIME WHEN COSTS OR MONETARY OBLIGATIONS RELATED ARE TO BE INCURRED ............................................................ 21 ANNEXED PROPERTY .............................................................................................................................. 26 ESTIMATE OF PROPERTY TO BE DEVOTED TO RETAIL BUSINESS .................................................. 26 PROPOSED ZONING ORDINANCE CHANGES ....................................................................................... 26 PROPOSED CHANGES IN MASTER PLAN, MAP, BUILDING CODES AND CITY OF OSHKOSH ORDINANCES ............................................................................................................................................ 26 RELOCATION ............................................................................................................................................. 26 ORDERLY DEVELOPMENT OF THE CITY OF OSHKOSH ...................................................................... 27 LIST OF ESTIMATED NON-PROJECT COSTS ........................................................................................ 27 OPINION OF ATTORNEY FOR THE CITY OF OSHKOSH ADVISING WHETHER THE PLAN IS COMPLETE AND COMPLIES WITH WISCONSIN STATURES 66.1105 ................................................. 28 CALCULATION OF THE SHARE OF PROJECTED TAX INCREMENTS ESTIMATED TO BE PAID BY THE OWNERS OF PROPERTY IN THE OVERLYING TAXING JURISDICTIONS ................................... 29 APPENDIX A- DEVELOPERS TAX INCREMENTAL FINANCING APPLICATION ................................... 30 PLAN COMMISSION PUBLIC HEARING/MINUTES OF SEPTEMBER 3, 2019 ....................................... 38 COMMON COUNCIL CREATION RESOLUTION OF SEPTEMBER 24, 2019 ......................................... 46 JOINT REVIEW BOARD RESOLUTION OF SEPTEMBER 26, 2019 ........................................................ 51 _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 4 September 3, 2019 SECTION 1: Executive Summary Description of District Tax Incremental District (“TID”) No. 38 (“District”) is a proposed blighted area district consisting of three parcels and approximately 20 acres comprising Pioneer Island, the adjacent Pioneer Marina, and adjoining City and State-owned lands. The Pioneer Inn Resort was constructed and began operation on the island in 1965. In 2004, the resort owner partially demolished the existing hotel with plans to rebuild, but the resort closed in 2005 after those plans did not proceed. Since that time, the Pioneer Marina has continued to operate but the site had otherwise remained idle and underutilized. In 2019 the remaining portion of the resort building, and other structures were razed. A prospective purchaser and developer of the site has requested that the City create the District to assist with costs related to proposed redevelopment which may include payment of development incentives and the need to construct or rehabilitate public infrastructure (“Project”). Creation of the District is also expected to assist the developer with efforts to attract private investment capital given that the site is located within a designated Opportunity Zone census tract. The City desires to see this high profile and currently blighted site redeveloped and will consider providing appropriate public investment in the project based on final approved development plans. As no specific redevelopment plan has been approved at the time of District creation, this Project Plan (“Plan”) is intended to provide a framework for potential funding of costs based on a general assessment of known conditions and likely impediments to redevelopment. Specific costs to be funded via this District will be determined at the time redevelopment plans are approved and will be set forth in accompanying development agreements. The parcels to be included in the District are presently located within Tax Incremental District No. 20, which will be partially overlapped by the District. 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 $29 million (“Project Costs”) to undertake the projects listed in this Plan. Project Costs include an estimated $16.3 million in public infrastructure costs, the potential for $5.9 million in development incentives, $6.6 million for interest on long-term debt and advances, and an estimated $200,000 in District administrative expense. The potential incentive amount is based on projected cash flows and the assumptions included in this Plan. To the extent development incentives are provided, the amounts, timing of and related conditions will be determined based on the City’s review and confirmation of a demonstrated financing gap. Furthermore, actual development plans will determine the scope of public improvement projects that are needed, and which can be funded through the District. The intent of this Plan is to identify all costs that may be required under a full development scenario, with implementation to be adjusted based on actual development plans. _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 5 September 3, 2019 Incremental Valuation The City projects that an incremental increase in land and improvements value of approximately $50 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 by the year 2046, reflecting 26 years of tax increment collections, and 28 years of total elapsed time. If necessary, the District would be permitted to remain open for up to 29 years, allowing for up to a total of 27 years of tax increment collection. 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 that despite its prime location the site has not redeveloped in an otherwise active real estate development market. Subject to approval of specific redevelopment plans, the City recognizes that it will likely be necessary to make a public investment in the Project in the form of development incentives and construction or rehabilitation of public infrastructure. Of note, costly seawall improvements will need to be made as part of any redevelopment effort. Unknown environmental conditions and permitting processes that will involve State and Federal agencies may also increase redevelopment costs. The City therefore finds it to be reasonable and necessary to use tax incremental financing to pay development incentives or to fund the costs public infrastructure construction and rehabilitation. Any provision of tax incremental financing assistance will be subject to additional due diligence undertaken by the City at the time specific redevelopment plans are submitted and reviewed. 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 in addition to the incremental value expected to be created, the Project will eliminate blight, provide employment opportunities and facilitate development of commercial or other uses that will promote tourism and economic activity that will benefit and serve City residents and visitors. 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. _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 6 September 3, 2019 4. Not less than 50% by area of the real property within the District is a blighted area within the meaning of Wisconsin Statutes Section 66.1105(2)(a)1. and as further detailed in Section 5 of the Plan. 5. Based on the foregoing finding, the District is designated a blighted area district based on the identification and classification of the property included within the District. 6. The Project Costs relate directly to promoting the elimination of blight, consistent with the purpose for which the District is created. 7. 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 approximately 50% of the territory within the District will be devoted to retail business at the end of the District’s maximum expenditure period, pursuant to Wis. Stat.§ 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. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 7 September 3, 2019 SECTION 2: Type and General Description of District The District is a proposed blighted area district consisting of three parcels and approximately 20 acres comprising Pioneer Island, the adjacent Pioneer Marina, and adjoining City and State-owned lands. The Pioneer Inn Resort was constructed and began operation on the island in 1965. In 2004, the resort owner partially demolished the existing hotel with plans to rebuild, but the resort closed in 2005 after those plans did not proceed. Since that time, the Pioneer Marina has continued to operate but the site had otherwise remained idle and underutilized. In 2019 the remaining portion of the resort building, and other structures were razed. A prospective purchaser and developer of the site has requested that the City create the District to assist with costs related to proposed redevelopment which may include payment of development incentives and the need to construct or rehabilitate public infrastructure. Creation of the District is also expected to assist the developer with efforts to attract private investment capital given that the site is located within a designated Opportunity Zone census tract. The City desires to see this high profile and currently blighted site redeveloped and will consider providing appropriate public investment in the project based on final approved development plans. As no specific redevelopment plan has been approved at the time of District creation, this Plan is intended to provide a framework for potential funding of costs based on a general assessment of known conditions and likely impediments to redevelopment. Specific costs to be funded via this District will be determined at the time redevelopment plans are approved and will be set forth in accompanying development agreements. The parcels to be included in the District are presently located within Tax Incremental District No. 20, which will be partially overlapped by the District. . _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 8 September 3, 2019 SECTION 3: Preliminary Maps of Proposed District Boundary _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 9 September 3, 2019 _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 10 September 3, 2019 _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 11 September 3, 2019 SECTION 4: Maps Showing Existing Uses and Conditions _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 12 September 3, 2019 _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 13 September 3, 2019 SECTION 5: Preliminary Parcel List and Analysis The following table identifies the parcels to be included in the District. Parcel 03-0210-000 (Map ID #1) is a blighted area as defined in Wis. Stat. § 66.1105(2)(ae). Specifically, this parcel is an area which is predominantly open that 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. In determining that the parcel is blighted, the City has considered that despite its prime location the site has sat idle and underutilized since 2005, has not redeveloped in an otherwise active real estate development market, and that certain extraordinary costs or potential costs related to needed seawall improvements, unknown environmental conditions and permitting processes pose impediments to redevelopment. City of Oshkosh, Wisconsin Tax Increment District # 38 Base Property Information1 District Classification Map ID #Parcel Number Street Address Owner Acreage Land Imp Total Equalized Value Ratio Land Imp Total Blighted Area 1 03‐0210‐000 1000 PIONEER DR DECADES MONTHLY INCOME & APPREC FUND 17.80 1,370,300 638,800 2,009,100 94.90% 1,443,893 673,107 2,117,000 17.80 2 03‐0612‐0000 0 PIONEER DR STATE OF WISCONSIN 1.86 0 0 0 94.90% 0 0 0 0.00 3 03‐0485‐0100 0 E 14TH AVE CITY OF OSHKOSH 0.61 0 0 0 94.90% 0 0 0 0.00 Total Acreage 20.27 1,370,300 638,800 2,009,100 1,443,893 673,107 2,117,000 17.80 87.81% Estimated Base Value 2,117,000 Notes: 1Assessed values as of 1‐1‐2019 per City. Equalization ration calculated based on equalized value provided by City. Property Information Assessment Information Equalized Value _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 14 September 3, 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 $178,849,100. This value is less than the maximum of $505,391,460 in equalized value that is permitted for the City. District Creation Date 9/24/2019 Valuation Data Currently Available 2019 Total EV (TID In)4,211,595,500 12% Test 505,391,460 Increment of Existing TIDs 176,732,100 Projected Base of New or Amended District 2,117,000 Total Value Subject to 12% Test 178,849,100 Compliance PASS City of Oshkosh, Wisconsin Tax Increment District # 38 Valuation Test Compliance Calculation _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 15 September 3, 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. Property, Right-of-Way and Easement Acquisition Property Acquisition for Development To promote and facilitate development 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 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 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 Wis. Stat. § 66.1105(2)(f)1.c., and subject to recovery as an eligible Project Cost. Property Acquisition for Conservancy To promote the objectives of this Plan, the City may acquire property within the District that it will designate for conservancy. These conservancy objectives include: preserving historic resources or sensitive natural features; protection of scenic and historic views; maintaining habitat for wildlife; maintaining adequate open space; reduction of erosion and sedimentation by preserving existing vegetation; and providing adequate areas for management of stormwater. The cost of property acquired for conservancy, and any costs associated with the transaction, are eligible Project Costs. 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. _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 16 September 3, 2019 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 Wis. Stat. Chapter 32 and Wis. Admin. Code ADM 92. 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. Demolition 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, 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. Public Improvements Street Improvements To allow development to occur, the City may need to construct or reconstruct streets, highways, alleys, access drives and parking areas. Eligible Project Costs include, but are not limited to: excavation; removal or placement of fill; construction of road base; asphalt or concrete paving or repaving; installation of curb and gutter; installation of sidewalks and bicycle lanes; installation of culverts, box culverts and bridges; rail crossings and signals; utility relocation, to include burying overhead utility lines; street lighting; installation of traffic control signage and traffic signals; pavement marking; right-of-way restoration; installation of retaining walls; and installation of fences, berms, and landscaping. Costs for such improvements may be made within the District, or outside of but within ½ mile of the District’s boundary as permitted under Wis. Stat. § 66.1105(2)(f)1.n. Streetscaping and Landscaping To attract development and/or redevelopment consistent with the objectives of this Plan, the City may install amenities to enhance development sites, rights-of-way and other public spaces. These amenities include but are not limited to: landscaping; lighting of streets, sidewalks, parking areas and public areas; installation of planters, benches, clocks, tree rings, trash receptacles and similar items; and installation of brick or other decorative walks, terraces and street crossings. These and any other similar amenities installed by the City are eligible Project Costs. Costs for such improvements may be made within the _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 17 September 3, 2019 District, or outside of but within ½ mile of the District’s boundary as permitted under Wis. Stat. § 66.1105(2)(f)1.n. Sanitary Sewer, Water System and Stormwater Management Improvements The Project may require that the City make improvements to its sanitary sewer collection system, water distribution system and stormwater management system. To the extent that improvements are necessitated by, or provide a benefit to, the Project the City may allocate the cost, or a portion of the costs, to the District. Any costs incurred by the City for improving the its utility systems that benefit the Project are eligible Project Costs. Costs for such improvements may be made within the District, or outside the District as permitted under Wis. Stat. § 66.1105(2)(f)1.k. Sidewalks and Multi-Use Trails The Project may require the City to install or improve sidewalks or multi-use trails to promote connectivity to the District and to improve pedestrian safety. To the extent that improvements are necessitated by, or provide a benefit to, the Project the City may allocate the cost, or a portion of the costs, to the District. Any costs incurred by the City for installing improving sidewalks or multi-use trails that benefit the Project are eligible Project Costs. Costs for such improvements may be made within the District, or outside of but within ½ mile of the District’s boundary as permitted under Wis. Stat. § 66.1105(2)(f)1.n. 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. 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. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 18 September 3, 2019 SECTION 8: Map Showing Proposed Improvements and Uses _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 19 September 3, 2019 _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 20 September 3, 2019 SECTION 9: Detailed List of Project Costs The following list identifies the Project Costs that the City may 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 Phase I Phase II Develop. Incentives General District Costs Total 2020 ‐ 2021 2028 ‐ 2029 2022 ‐ 2036 2019‐2047 Public Infrastructure1 Public Riverwalk 4,000,000 4,000,000 8,000,000 E. 9th Avenue Extension to Pioneer Drive 5,000,000 5,000,000 Less Portion Funded by Utilities (3,000,000) (3,000,000) Install Sidewalk in ROW on Pioneer Drive 200,000 200,000 Remove/Upgrade Stormwater Facilities 500,000 500,000 Extend Public Sanitary Sewer on Pioneer Drive 700,000 700,000 Loop Public Watermain on Pioneer Drive 900,000 900,000 Railroad Mitigation 500,000 500,000 1,000,000 Interest on Long‐Term Debt & Fiscal Charges 2,467,917 2,906,243 5,374,160 Development Incentives2 5,931,228 5,931,228 Repay Utility Advance (With Interest)4,270,000 4,270,000 TIF Administrative Expenses 200,256 200,256 Total Projects 10,567,917 8,106,243 5,931,228 4,470,256 29,075,643 Notes: 1Public infrastructure cost estimates per K. Nieforth 8‐7‐2019 e‐mail. 2Incentive amount shown for purposes of establishing economic feasibility only. The City has not agreed to terms or conditions with 1potential developer(s) as to any public participation in the project. City of Oshkosh, Wisconsin Tax Increment District # 38 Detailed List of Project Costs _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 21 September 3, 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 $50 million in incremental value by January 1, 2024. 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 $30,754,514 in incremental tax revenue over the 27-year term of the District as shown in Table 2. _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 22 September 3, 2019 Redevelopment Project Annual Total 1 2019 0 2019 1 2 2020 12,500,000 12,500,000 2020 2 3 2021 12,500,000 12,500,000 2021 3 4 2022 12,500,000 12,500,000 2022 4 5 2023 12,500,000 12,500,000 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 50,000,000 50,000,000 Notes: 1Estimate of valuation based on full development scenario. The City has not approved any specific 1plans for site development. Incremental value potential may be greater or less than estimated 1based on approved development projects. Project Costs will need to be adjusted accordingly. City of Oshkosh Tax Increment District No. 38 Development Assumptions1 Construction Year Construction Year Table 1 – Development Assumptions _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 23 September 3, 2019 Type of District Base Value 6,275,000 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 9/24/2041 Revenue Periods/Final Year 27 2047 Extension Eligibility/Years Yes 3 Tax Exempt Discount Rate 0.00% Eligible 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 0 2020 0 0 2021 $25.11 0 2 2020 12,500,000 2021 0 12,500,000 2022 $25.11 313,822 3 2021 12,500,000 2022 0 25,000,000 2023 $25.11 627,643 4 2022 12,500,000 2023 0 37,500,000 2024 $25.11 941,465 5 2023 12,500,000 2024 0 50,000,000 2025 $25.11 1,255,286 6 2024 0 2025 0 50,000,000 2026 $25.11 1,255,286 7 2025 0 2026 0 50,000,000 2027 $25.11 1,255,286 8 2026 0 2027 0 50,000,000 2028 $25.11 1,255,286 9 2027 0 2028 0 50,000,000 2029 $25.11 1,255,286 10 2028 0 2029 0 50,000,000 2030 $25.11 1,255,286 11 2029 0 2030 0 50,000,000 2031 $25.11 1,255,286 12 2030 0 2031 0 50,000,000 2032 $25.11 1,255,286 13 2031 0 2032 0 50,000,000 2033 $25.11 1,255,286 14 2032 0 2033 0 50,000,000 2034 $25.11 1,255,286 15 2033 0 2034 0 50,000,000 2035 $25.11 1,255,286 16 2034 0 2035 0 50,000,000 2036 $25.11 1,255,286 17 2035 0 2036 0 50,000,000 2037 $25.11 1,255,286 18 2036 0 2037 0 50,000,000 2038 $25.11 1,255,286 19 2037 0 2038 0 50,000,000 2039 $25.11 1,255,286 20 2038 0 2039 0 50,000,000 2040 $25.11 1,255,286 21 2039 0 2040 0 50,000,000 2041 $25.11 1,255,286 22 2040 0 2041 0 50,000,000 2042 $25.11 1,255,286 23 2041 0 2042 0 50,000,000 2043 $25.11 1,255,286 24 2042 0 2043 0 50,000,000 2044 $25.11 1,255,286 25 2043 0 2044 0 50,000,000 2045 $25.11 1,255,286 26 2044 0 2045 0 50,000,000 2046 $25.11 1,255,286 27 2045 0 2046 0 50,000,000 2047 $25.11 1,255,286 Totals 50,000,000 0 Future Value of Increment 30,754,514 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. 38 Tax Increment Projection Worksheet Blighted Area September 24, 2019 Table 2 – Tax Increment Projection Worksheet _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 24 September 3, 2019 Financing and Implementation The City anticipates making total Project Cost expenditures of approximately $29 million to undertake the projects listed in this Plan. Project Costs include an estimated $16.3 million in public infrastructure costs, the potential for $5.9 million in development incentives, $6.6 million for interest on long-term debt and advances, and an estimated $200,000 in District administrative expense. The potential incentive amount is based on projected cash flows and the assumptions included in this Plan. To the extent development incentives are provided, the amounts, timing of and related conditions will be determined based on the City’s review and confirmation of a demonstrated financing gap. Furthermore, actual development plans will determine the scope of public improvement projects that are needed, and which can be funded through the District. The intent of this Plan is to identify all costs that may be required under a full development scenario, with implementation to be adjusted based on actual development plans. The City expects to finance the cost of public improvements through issuance of long-term debt. Public infrastructure work that must be undertaken to permit redevelopment to occur is projected for completion in 2020 and 2021. Additional infrastructure improvements needed to fully implement and achieve the objectives of the Plan are identified for completion in 2028 and 2029. Actual timing for completion of additional infrastructure improvements will be determined by need and the capacity of the District to pay the costs. If the District does not have the financial capacity to pay all required public infrastructure costs, the City may determine it necessary to complete the projects and to pay the costs from other sources. In this case, the City may also choose to advance funds to the District, and to recover those advances when District cash flows permit. The City expects that any approved Development Incentive payments will be paid from tax increments as they are collected on a “pay as you go” basis. Based on the cash flow exhibit (Table 3), the City anticipates that the District will generate enough tax increment to pay all Project Costs by the year 2046, reflecting 26 years of tax increment collections, and 28 years of total elapsed time. If necessary, the District would be permitted to remain open for up to 29 years, allowing for up to a total of 27 years of tax increment collection. The projected 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. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 25 September 3, 2019 Cash Flow City of Oshkosh Tax Increment District No. 38 Cash Flow Projection Year Principal Amount: Principal Amount: Dated Date: Dated Date: Prin (12/1) Est. Rate1 Interest Total Prin (12/1) Est. Rate1 Interest Total 35%Year 2019 0 15,000 15,000 (15,000) (15,000)2019 2020 30,375 (225)8,675,000 8,705,150 4,050,000 168,738 5,000 4,223,738 4,481,413 4,466,413 8,675,000 2020 2021 0 36,621 36,621 254,399 254,399 4,050,000 5,100 4,309,499 (4,272,877)193,535 14,606,228 2021 2022 313,822 2,903 316,725 179,576 179,576 109,838 5,202 294,615 22,110 215,645 14,496,390 2022 2023 627,643 3,235 630,878 300,000 1.510% 179,576 479,576 219,675 5,306 704,557 (73,679)141,966 13,976,715 2023 2024 941,465 2,129 943,594 455,000 1.540% 175,046 630,046 329,513 5,412 964,970 (21,376)120,590 13,192,202 2024 2025 1,255,286 1,809 1,257,095 460,000 1.560% 168,039 628,039 439,350 5,520 1,072,909 184,186 304,776 12,292,852 2025 2026 1,255,286 4,572 1,259,858 470,000 1.640% 160,863 630,863 439,350 5,631 1,075,844 184,014 488,790 11,383,502 2026 2027 1,255,286 7,332 1,262,618 475,000 1.720% 153,155 628,155 439,350 5,743 1,073,248 189,370 678,160 10,469,152 2027 2028 1,255,286 19,500 10,172 5,300,000 6,584,959 485,000 1.810% 144,985 629,985 439,350 2,600,000 119,350 5,858 3,794,543 2,790,416 3,468,576 14,844,802 2028 2029 1,255,286 32,529 1,287,815 490,000 1.900% 136,206 626,206 278,109 278,109 439,350 2,600,000 5,975 3,949,641 (2,661,826)806,750 13,915,451 2029 2030 1,255,286 12,101 1,267,388 500,000 1.990% 126,896 626,896 196,313 196,313 439,350 6,095 1,268,654 (1,266)805,483 12,976,101 2030 2031 1,255,286 12,082 1,267,369 510,000 2.070% 116,946 626,946 196,313 196,313 439,350 6,217 1,268,826 (1,457)804,026 12,026,751 2031 2032 1,255,286 12,060 1,267,347 520,000 2.150% 106,389 626,389 100,000 3.040% 196,313 296,313 439,350 6,341 1,368,393 (101,046)702,980 10,967,401 2032 2033 1,255,286 10,545 1,265,831 535,000 2.220% 95,209 630,209 105,000 3.060% 193,273 298,273 439,350 6,468 1,374,300 (108,469)594,511 9,888,051 2033 2034 1,255,286 8,918 1,264,204 545,000 2.280% 83,332 628,332 110,000 3.140% 190,060 300,060 439,350 6,597 1,374,339 (110,135)484,376 8,793,700 2034 2035 1,255,286 7,266 1,262,552 560,000 2.330% 70,906 630,906 115,000 3.220% 186,606 301,606 439,350 75,000 6,729 1,453,591 (191,039)293,337 7,679,350 2035 2036 1,255,286 4,400 1,259,686 570,000 2.380% 57,858 627,858 120,000 3.310% 182,903 302,903 439,350 100,000 6,864 1,476,975 (217,288)76,049 6,550,000 2036 2037 1,255,286 1,141 1,256,427 585,000 2.420% 44,292 629,292 360,000 3.400% 178,931 538,931 100,000 7,001 1,275,224 (18,797)57,252 5,605,000 2037 2038 1,255,286 859 1,256,145 600,000 2.460% 30,135 630,135 370,000 3.490% 166,691 536,691 100,000 7,141 1,273,967 (17,822)39,431 4,635,000 2038 2039 1,255,286 591 1,255,878 615,000 2.500% 15,375 630,375 385,000 3.570% 153,778 538,778 100,000 7,284 1,276,437 (20,559)18,872 3,635,000 2039 2040 1,255,286 283 1,255,569 395,000 3.650% 140,033 535,033 700,000 7,430 1,242,463 13,107 31,978 3,240,000 2040 2041 1,255,286 480 1,255,766 410,000 3.720% 125,616 535,616 700,000 7,578 1,243,194 12,572 44,550 2,830,000 2041 2042 1,255,286 668 1,255,955 430,000 3.780% 110,364 540,364 700,000 7,730 1,248,093 7,861 52,412 2,400,000 2042 2043 1,255,286 786 1,256,072 445,000 3.830% 94,110 539,110 700,000 7,884 1,246,994 9,078 61,490 1,955,000 2043 2044 1,255,286 922 1,256,209 460,000 3.880% 77,066 537,066 700,000 8,042 1,245,108 11,100 72,590 1,495,000 2044 2045 1,255,286 1,089 1,256,375 480,000 3.920% 59,218 539,218 295,000 8,203 842,421 413,954 486,545 1,015,000 2045 2046 1,255,286 7,298 1,262,584 495,000 3.960% 40,402 535,402 8,367 543,769 718,815 1,205,360 520,000 2046 2047 1,255,286 18,080 1,273,367 520,000 4.000% 20,800 540,800 0 8,534 549,334 724,032 1,929,392 (0)2047 Total 30,754,514 49,875 200,647 13,975,000 44,980,035 8,675,000 2,299,179 10,974,179 5,300,000 2,786,893 8,086,893 5,931,228 13,300,000 4,270,000 288,088 200,256 43,050,643 Total Notes: 1Assumes 8-6-2019 MMD AA scale plus 0.50% for 2020 Bonds and plus 2.00% for 2028 Bonds. Debt shown assumes separate bond issuance for TID projects. City would most likely include costs in overall annual CIP debt issuance and allocate a portion of the debt service to the District which would lower allocable cost of issuance and discount. 2Incentive amount shown for purposes of establishing economic feasibility only. The City has not agreed to terms or conditions with potential developer(s) as to any public participation in the project. 3Debt cost of issuance and discount. Projected Revenues Tax Increments Proceeds of LT Debt Total Expenditures Repay Utility Advance Balances Admin. Expense Public Infrastructure Projected Expenditures General Obligation Bonds - Phase I $8,675,000 07/01/20 General Obligation Bonds - Phase II $5,300,000 07/01/28 G.O. Debt Principal & MRO Payments Outstanding Development Incentives2 @ Projected TID Closure Fiscal Charges3 Interest Earnings @ 1.5% Temp. Inv. of Bond Proceeds Fund Balance Annual Cumulative Total Revenues Table 3 _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 26 September 3, 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 50% 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 commercial land uses. 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. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 27 September 3, 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 commercial 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 including elimination of blight, employment opportunities, and development of commercial or other uses that will promote tourism and economic activity that will benefit and serve City residents and visitors. 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. At present, the City has not identified any non-project costs associated with implementation of the Plan. If the District is unable to fully fund all Project Costs required to implement the Plan, those costs will become non-project costs to the extent they are funded from other sources. If, in the course of implementation of the Plan: 1) improvements are made within the District that benefit property outside the District; or 2) improvements are made outside the District that will only partially benefit the District; the City will apportion those costs based on a reasonable allocation of the benefit. The costs related to benefit received by properties outside the District are non-project costs. _____________________________________________________________________________________________ TID No. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 28 September 3, 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. 38 Project Plan City of Oshkosh Prepared by Ehlers Page 29 September 3, 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% Fox Valley Techncial College 156,024 4.21% Revenue Year Winnebago County City of Oshkosh Oshkosh Area School District Fox Valley Techncial College Total Revenue Year 2021 0 0 0 0 0 2021 2022 63,443 125,452 111,723 13,204 313,822 2022 2023 126,886 250,903 223,447 26,407 627,643 2023 2024 190,329 376,355 335,170 39,611 941,465 2024 2025 253,771 501,807 446,894 52,814 1,255,286 2025 2026 253,771 501,807 446,894 52,814 1,255,286 2026 2027 253,771 501,807 446,894 52,814 1,255,286 2027 2028 253,771 501,807 446,894 52,814 1,255,286 2028 2029 253,771 501,807 446,894 52,814 1,255,286 2029 2030 253,771 501,807 446,894 52,814 1,255,286 2030 2031 253,771 501,807 446,894 52,814 1,255,286 2031 2032 253,771 501,807 446,894 52,814 1,255,286 2032 2033 253,771 501,807 446,894 52,814 1,255,286 2033 2034 253,771 501,807 446,894 52,814 1,255,286 2034 2035 253,771 501,807 446,894 52,814 1,255,286 2035 2036 253,771 501,807 446,894 52,814 1,255,286 2036 2037 253,771 501,807 446,894 52,814 1,255,286 2037 2038 253,771 501,807 446,894 52,814 1,255,286 2038 2039 253,771 501,807 446,894 52,814 1,255,286 2039 2040 253,771 501,807 446,894 52,814 1,255,286 2040 2041 253,771 501,807 446,894 52,814 1,255,286 2041 2042 253,771 501,807 446,894 52,814 1,255,286 2042 2043 253,771 501,807 446,894 52,814 1,255,286 2043 2044 253,771 501,807 446,894 52,814 1,255,286 2044 2045 253,771 501,807 446,894 52,814 1,255,286 2045 2046 253,771 501,807 446,894 52,814 1,255,286 2046 2047 253,771 501,807 446,894 52,814 1,255,286 2047 Total 6,217,399 12,294,267 10,948,900 1,293,948 30,754,514 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 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Pi o n e e r I s l a n d a n d M a r i n a c o n c e p t u a l p l a n Page 37 __________________________________ Plan Commission Minutes September 3, 2019 PLAN COMMISSION MINUTES September 3, 2019 PRESENT: Lynnsey Erickson, Thomas Fojtik, Michael Ford, Derek Groth, John Hinz, John Kiefer, Justin Mitchell, Lori Palmeri, Thomas Perry, Kathleen Propp EXCUSED: None STAFF: Mark Lyons, Planning Services Manager; Allen Davis, Director of Community Development; James Rabe, Director of Public Works; Kelly Nieforth, Economic Development Services Manager; Justin Gierach, Engineering Division Manager / City Engineer; Jeff Nau, Associate Planner; Brian Slusarek, Assistant Planner; Steven Wiley, Assistant Planner; Mina Kuss, Recording Secretary Chairperson Fojtik called the meeting to order at 4:00 pm. Roll call was taken and a quorum declared present. The minutes of August 20, 2019 were approved as presented. (Hinz/Mitchell) V. PUBLIC HEARING: PROPOSED CREATION OF TAX INCREMENT FINANCING DISTRICT NO. 38 PIONEER REDEVELOPMENT DESIGNATION OF BOUNDARIES AND APPROVAL OF PROJECT PLAN Site Inspections: Report: Mr. Hinz, Ms. Palmeri and Ms. Propp reported visiting the site. Staff report accepted as part of the record. Tax Incremental District No. 38 (the “TID” or “District”) is a proposed 20 acre blight district comprising of Pioneer Island, the adjacent Pioneer Marina and adjoining City and State-owned lands. The proposed district is comprised of three parcels. One under contract by the applicant, one City-owned and one State-owned. The subject area is previously the Pioneer Inn Resort. Mr. Lyons presented the item and reviewed the site and surrounding area as well as the land use and zoning classifications in this area. Based on the assumption of $50 million in potential value generated, the following expenditure could be accommodated. The City could anticipate making possible total expenditures of approximately $29 million to undertake project identified in the Project Plan. Project costs could include up to an estimated $5.9 million in “pay as you go” development incentives, $16.3 million could be contributed for additional public infrastructure improvements, $6.6 million for interest on long-term debt services and an estimated $200,000 in administrative costs. The City has taken a broad approach to this TID, with the goal of creating as much flexibility for the City of Oshkosh and developer. The developer has indicated they intend to use the TID to help promote and secure additional development within the District. Mr. Lyons explained the items in the Project Plan and stated it is consistent with other City plans. He said staff recommends approval of the Project Plan and Boundaries for TID #38 as proposed. Page 38 __________________________________ Plan Commission Minutes September 3, 2019 Mr. Fojtik opened technical questions to staff. Ms. Propp said she is interested primarily in the uses. Mr. Lyons explained the land uses that are outlined in the application are very general. He said because the applicant is using the TID as a tool to secure additional development, they tried not to focus on the land use listed in the application. He said that is why in the TID plan they referenced the anticipation of commercial, retail and recreational uses. Ms. Propp commented she would hope Plan Commission would be able to see the plans for uses prior to the development. Mr. Lyons explained the entire area is zoned with a Planned Development and therefore would have to come back to Plan Commission and Common Council. Ms. Propp inquired about the boundary of TID 38. Mr. Lyons pointed out the boundary of TID 38. He pointed out what areas were owned by the city, what areas were owned by the state and what areas were privately owned. Ms. Nieforth added the very northern part of the island is subject to the state land lease because it has been filled in the past. She said there are certain requirements that need to be followed with the state. Ms. Palmeri questioned how Plan Commission can determine consistency with compatible land uses if they do not know what those land uses are yet. Mr. Lyons replied the land uses identified in the application all fit within the Comprehensive Plan and the City’s redevelopment plans. He said they know the applicant would like to secure additional further redevelopment. He said all the redevelopment discussed are all permitted uses. He said the details of the uses would be later reviewed during the Planned Development process. He said if there is a use that is not permitted, they would have to look into amending the Plan. Ms. Palmeri said in the application, there is an assumption about the building of seawall or stabilization. She asked if that was factored into the project costs. Mr. Lyons replied that is some of the public improvement items that are outlined in the Project Plan. Ms. Palmeri asked where that information was listed. Mr. Lyons replied it would be on page 20 and outlined in text on page 17. Ms. Palmeri asked where it was listed on page 20. Page 39 __________________________________ Plan Commission Minutes September 3, 2019 Ms. Nieforth answered it is part of the riverwalk. Mr. Ford asked if there had been a similar TID created in the past. Ms. Nieforth replied Oshkosh Avenue that went along with Oshkosh Corporation Global Headquarters. She said that was to improve the Oshkosh corridor. She said there was not a specific project in mind but they knew there would be additional increment that would be generated. She said they identified multiple public projects that they could use that additional increment to pay for those improvements. Mr. Ford inquired about the $16.3 million in infrastructure costs and asked if the process for improving the infrastructure would occur after the uses have been identified or will it be used to lure development. Ms. Nieforth said with the riverwalk, the city does have an agreement with the state and the current owner on when the riverwalk needed to be installed. She said they are working with the DNR on that. She said as far as the other improvements, they would have to see what type of uses would be on the island to determine what utilities or public improvements might be needed for the public infrastructure. Mr. Ford asked for confirmation that other improvements besides the riverwalk would not be funded by the TID until the specific uses have been identified. Ms. Nieforth replied correct. She commented hopefully by the end of this year or early next year, they will have a better idea of what direction they are going in. Mr. Ford asked what the process would be for amending or modifying the TID agreement. Todd Taves (Senior Municipal Advisor, Ehlers), said they have designed the plan in a way that it would be unlikely it would have to be amended. He said the agreement is a separate part of the process. He explained if it did need to be amended, it would follow the same process as cre ating it. Mr. Lyons added they have tried to tailor the plan in such a way that the TID is broad enough to cover anything that could be anticipated. He said they would look to Council during the development agreement process to nail down the specifics of what would be taking place. Ms. Palmeri said this is a blight TID though a mixed-use is the desire. She asked for an explanation how the points were calculated to come up with the blight TID. Ms. Nieforth said not knowing if it would be a mixed use or not, they went with blight because they met the requirements for blight. She said the mixed-use is 20 years whereas the blight goes to 27 years which gives additional time to capture increment. Page 40 __________________________________ Plan Commission Minutes September 3, 2019 Ms. Palmeri referenced the City’s TIF policy and asked how staff came up with the points that attributed to the blight. She read the TIF policy that referred to the points and asked how staff came up with the 50 points. Ms. Nieforth said as Mr. Lyons mentioned, there will be quite a bit of redevelopment costs needed relating to contamination and infrastructure. She said there were points for that. She said it is in the blight and will be eliminating blight. She said redevelopment is needed. She mentioned it is in quite a few of the City’s plans. She said there is no historic preservation at this time. She said some of the items do go into specific site plans with the quality of development, meeting the zoning ordinance and environmental. She said it will be improving the streetscape and pedestrian experience by adding the riverwalk. She said there will be jobs created with the redevelopment. She said it will fill a gap in underserved markets in the city for any type of use that is chosen. Ms. Propp commented the last time she saw the marina piers, they looked like they were in desperate need of rehab. She said it looks like it would be valuable increment and asked why it was not part of the boundary to generate increment. Mr. Lyons explained right now a lot of the base land value of the property is within the marina and those piers. Ms. Nieforth added it is not within the boundary but it is assessed with the property. Mr. Taves commented it is not a parcel. Mr. Lyons stated the applicant has indicated that fixing up the marina is one of their first projects they would like to undertake. Mr. Hinz referenced page 18 and questioned if 6th Avenue was going to be closed off. He said it looks like 6th Avenue is getting closed off at the corner. Mr. Lyons said the long-term anticipation is that Pioneer Drive will be removed and become parkland along with the riverwalk. He said it should not have any impact on 6th Avenue. Ms. Nieforth commented currently 6th Avenue does not go all the way through. Mr. Lyons said Pioneer Drive east of Main Street would be removed until approximately where the new 9th Avenue comes in. He said 9th Avenue would be the main thoroughfare that serves the area. Mr. Hinz inquired about the park space once Pioneer Drive has been removed. Mr. Lyons said it would be linear park along with the riverwalk. He said RDA owns most of the property in the area. Page 41 __________________________________ Plan Commission Minutes September 3, 2019 Mr. Mitchell referenced the blighted commentary section and asked if there is a list of efforts to redevelop the property in the last 15 years. Mr. Lyons replied it has been privately held and they have not been able to make development work. Ms. Nieforth said the city has been in close communications over the last five years with a local developer, Art Dumke, since he has had the option to develop the property. She said prior to that it was privately owned by Decades. She said they were in communication with Decades as well but not as much as they have been with Mr. Dumke since he has had the option. Mr. Mitchell asked for confirmation that there is no detailed report that explains that development is not possible without $29 million of assistance on 20 acres of prime waterfront real estate in the city. Mr. Lyons commented it is not $29 million in incentives. He said right now it is outlined at potentially about $5.9 million in incentives. Mr. Taves said the city customarily, depending on the nature of the project, has them review the proposed development project cash flow. He said they look at the internal rate of return or the cash on cash return depending on what is appropriate. He said his assumption is that the actual project comes in with the application and it is ready to be transformed into a development agreement. He said that exercise will be undertaken and then ultimately that is what they do to make the determination that the provision of whatever the TIF assistance is at that point is necessary to allow the project to proceed. He said to remember this is like an umbrella of everything that could be needed in order to facilitate full development of this property. He said what actually happens still needs to be determined and it is scalable. He explained what scalable meant. Mr. Davis pointed out the City is in a four party agreement regarding the development of the property with the DNR, the Bureau of Land Commissions and the current owner. He explained the city is obligated to build the riverwalk in conjunction with the redevelopment of the property. He stated that is why the riverwalk is first and foremost on the list. He said the extension of 9th Avenue has always been in the plans in order to create a better access point for Pioneer. He said the rest of the development really drives the other project costs for the development incentives. He said the city has been waiting for the right time to do those two projects. Mr. Mitchell asked why 9th Avenue and the riverwalk were included in the TIF district versus just doing them. He asked if other parts of the riverwalk utilized TIF. Mr. Lyons said it is customary to look at those things that can help enhance the TID to bring that value in and help with the infrastructure costs that the city has. Page 42 __________________________________ Plan Commission Minutes September 3, 2019 Mr. Mitchell clarified his questions and said the projects in question would be pulling money from Fox Valley Tech., the school district and Winnebago County versus the city just paying for it as general road construction. Mr. Lyons explained public infrastructure improvements like road improvements, the riverwalk and public utilities that help service the development are part of what TIF districts are designed to do. He said they are supposed to help fund some of those improvement costs. Mr. Davis added every section of the riverwalk in the downtown used TIF funds for the local match when they did get TIF funds. He said the only time he did not think they used TIF funds was out at Lakeshore. He explained it was something they were able to fund by using land proceeds, donations and the grant funds from the DNR. He stated TIF 15, 17, 20 and 21 have funded the riverwalk. Mr. Mitchell inquired about the $4.27 million developer incentives. Mr. Lyons explained those are Pay-Go TIF assistance that counts when they do the developer agreement. He said the developer can chose to do Pay-Go TIF assistance. Mr. Taves clarified it is a cash contribution to a private development. Mr. Mitchell asked if they are grants. Mr. Taves said the statute requires a development agreement to be entered into which specifies the terms and conditions. He said there are representations that have to be made by the developer as to what they are constructing, minimum values and so on depending on what the city chooses to put in the agreement. He said it is contingent on meeting the developer’s contractual obligations. Mr. Mitchell referenced the key goals in the Comprehensive Plan. He said there is only one reference to environmental in the Project Plan. He asked if the City is going to be dedicating almost $5 million to a developer, what would arguably be more key natural environment areas of the urban city. He asked what the developer’s vision is for the space that is one of the City’s more valuable environmental region. He stated it is not listed at all in the Plan. Mr. Lyons replied there is a four party agreement with the state that is dictating a lot of can actually take place of the island. He said that is why it was not referenced specifically in the Plan. He said there are two overriding state agencies that are involved in the riverwalk. He said as far as the public side, there is public greenspace and public access. He pointed out the proposed greenspace and parkland areas on the map. He also pointed out the public land in the area. Ms. Nieforth pointed out the hatched area all around the island. She explained it is an easement for the riverwalk that is already in place. Mr. Lyons mentioned the island tip is state owned property and will stay state owned property for greenspace and public property. Page 43 __________________________________ Plan Commission Minutes September 3, 2019 Mr. Davis commented it has been very important to the city to get the riverwalk out to that point. Mr. Kiefer said he noticed there was a repayment of utility cost in the Plan. He asked if the plan was for the utility infrastructure improvements to be paid as it normally would for a street reconstruction and then those funds would be repaid. Ms. Nieforth replied that is the idea. She said they would have to pay for some of the upfront costs and then repay the utilities over time. Mr. Kiefer commented he is happy it is in the Plan because it was not in previous Plans. He commended staff for adding it. Ms. Palmeri said she knows how many years people have been waiting to see some activity on this site and that it is very important. She said it is a compressed timeframe because of the opportunity zone. She asked since the uses are not known if there was thought given to bifurcating the actual boundaries between the island and the marina or if it was less than desirable as far as the whole valuation expectation. Mr. Taves answered it is Mr. Dumke’s desire to be able to represent to investors that there is a Tax Increment District in place on the island. He said by excluding that, they would not be accommodating that request. Ms. Erickson referenced the environmental remediation on page 11. She asked if that was covered elsewhere in the Plan because it does not list a specific amount. Mr. Taves answered it would be part of the development incentive. Ms. Palmeri inquired about the $210,000 for demolition and asked if most of it was already done. Mr. Lyons replied the final portion was done earlier this year. Ms. Palmeri asked if this would include project costs of demolition that has already been completed. Mr. Lyons said the application is a little different than the actual TIF funding. Mr. Davis commented they still need to do additional demolition as well. Mr. Fojtik opened up the public hearing. Tim Hess (applicant), 2645 Templeton Place, said he is representing part of the associates at Dumke and Associates. He said he is available to address any questions. Page 44 __________________________________ Plan Commission Minutes September 3, 2019 Mr. Mitchell asked what Mr. Hess’ vision was for the natural environmental of the plot given that it is quiet extensive shoreland frontage which is quiet valuable for the natural environment. Mr. Hess replied Mr. Dumke’s vision is to try and get as much fishing and outdoor activity as possible. He said they presented at Council a couple weeks ago and showed images of the shoreline which included some recreational condos. He said they have now come to appreciate the floodway. He said they have to reconfigure their plan on the northern portion of the site because of the floodway. He said Mr. Dumke is trying to do all that he can to try and get people to come to the marina and allow the public to use the area via the riverwalk/easement. Ms. Palmeri asked if Mr. Hess was a principal at Dumke and Associates. Mr. Hess replied he is not. He said he is an associate that works for them and that he is not an owner. There were no other public comments on this item. Mr. Fojtik closed the public hearing. Motion by Kiefer to approve the project plan and recommending the boundaries to the council and adopting the staff report as the findings. Seconded by Palmeri. Mr. Fojtik asked if there was any discussion on the motion. Ms. Propp said this is vitally important and if there was one TID district that the city should be behind, it should be this one. Mr. Fojtik commented this was a very thoughtful, fruitful and through discussion which is need for the type of request. Motion carried 9-0. There being no further business, the meeting adjourned at approximately 5:16 pm. (Hinz/Propp) Respectfully submitted, Mark Lyons Planning Services Manager Page 45 SEPTEMBER 24, 2019 19-537 RESOLUTION CARRIED 6-0 LOST LAID OVER WITHDRAWN PURPOSE: APPROVE TAX INCREMENT DISTRICT NO. 38 PROJECT PLAN; DESIGNATE TAX INCREMENT DISTRICT NO. 38 BOUNDARIES; CREATE TAX INCREMENT DISTRICT NO. 38 PIONEER REDEVELOPMENT INITIATED BY: DUMKE AND ASSOCIATES, LLC 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. 38 (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 46 SEPTEMBER 24, 2019 19-537 RESOLUTION CONTD 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 September 3, 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. 38, Pioneer 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 47 SEPTEMBER 24, 2019 19-537 RESOLUTION CONTD 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 approximately 50% 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 #38 was within the City boundaries as of January 1, 2004. 4. The attached Project Plan for "City of Oshkosh Tax Increment District No. 38, Pioneer 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. 38 Pioneer Redevelopment. Page 48 Exhibit A" TID 38 Pioneer Redevelopment Legal Description ALL OF CERTIFIED SURVEY MAP NUMBER 6006 RECORDED AS DOCUMENT 1418036, WINNEBAGO COUNTY REGISTER OF DEEDS, PART OF FRACTIONAL SECTION 24, PART OF GOVERNMENT LOTS 1 AND 2, FRACTIONAL SECTION 25 AND PART OF PIONEER DRIVE, LOCATED IN TOWNSHIP 18 NORTH, RANGE 16 EAST, CITY OF OSHKOSH, WINNEBAGO COUNTY, WISCONSIN BOUNDED AND DESCRIBED AS FOLLOWS: COMMENCING FROM THE NORTHWEST CORNER OF SAID FRACTIONAL SECTION 2; THENCE N8905121"E, 2,342.99 FEET ALONG THE NORTH LINE OF SAID FRACTIONAL SECTION 25; THENCE N16053'05"E, 52.88 FEET TO THE POINT OF BEGINNING; THENCE N89'59"05"E, 59.99 FEET; THENCE S61'2355"E, 592.80 FEET; THENCE 94.24 FEET ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 60.00 FEET WITH A CHORD WHICH BEARS S16024'01"E, 84.85 FEET; THENCE S28036'01"W, 7.55 FEET TO A POINT ON THE ORIGINAL GOVERNMENT 1835 MEANDER LINE; THENCE S62039'05"E, 70.03 FEET ALONG SAID MEANDER LINE; THENCE S42020'55"W, 541.88 FEET ALONG SAID MEANDER LINE; THENCE 161.58 FEET ALONG AN ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 179.90 FEET WITH A CHORD WHICH BEARS S3004631"E, 156.20 FEET; THENCE N44059'05"E, 35.40 FEET; THENCE S1400255"E, 169.00 FEET; THENCE S77046'05"W, 60.60 FEET;THENCE 264.38 FEET ALONG AN ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 184.80 FEET WITH A CHORD WHICH BEARS N64005'35"W, 242.40 FEET; THENCE S74056'05"W, 45.03 FEET TO A POINT ON SAID ORIGINAL GOVERNMENT 1835 MEANDER LINE; THENCE S42020'55"W, 452.67 FEET ALONG SAID MEANDER LINE; THENCE S20020'55W, 161.59 FEET ALONG SAID MEANDER LINE; THENCE S73006'55"E, 39.90 FEET; THENCE S16053'05"W, 50.00 FEET; THENCE S76020'55"E, 55.00 FEET; THENCE S18025'05"W, 333.00 FEET; THENCE S57019'05"W, 75.64 FEET; THENCE S89012'07"W, 67.76 FEET TO A POINT ON SAID ORIGINAL GOVERNMENT 1835 MEANDER LINE; THENCE S20020'55W, 743.85 FEET ALONG SAID MEANDER LINE TO A POINT ON THE CENTERLINE OF VACATED E. 16TH AVENUE; THENCE N8900641"W, 203.33 FEET ALONG SAID CENTERLINE; THENCE N00053'18"E, 30.00 FEET TO A POINT ON THE NORTH LINE OF SAID VACATED E. 16TH AVENUE; THENCE N1703722"E, 89.39 FEET TO THE SOUTHEAST CORNER OF CERTIFIED SURVEY MAP NUMBER 6006; THENCE N7203649"W (RECODED AS N7203742"W),45.00 FEET ALONG THE SOUTH LINE TO THE SOUTHWEST CORNER OF SAID CERTIFIED SURVEY MAP; THENCE N1703722"E (RECORDED AS N17022'16"E), 587.00 FEET TO A POINT ON THE SOUTH LINE OF E. 14TH AVENUE; THENCE S 89004'17"E, 46.93 FEET ALONG THE SOUTH LINE OF SAID E 14THE AVENUE; THENCE N1403225"E, 61.74 FEET TO A POINT ON THE WEST LINE OF PIONEER DRIVE; THENCE N17016'03"E, 1,863.58 FEET ALONG SAID WEST LINE; THENCE N45032'50"E, 114.22 FEET TO THE POINT OF BEGINNING. SAID AREA CONTAINS 1,156,311 SQUARE FEET OR 26.545 ACRES, MORE OR LESS. Page 49 N Tax IIncrernenif District #38 0 w E Pioneer Reldevellopment CR,v IF : Parcel Identificafion Oshkosh Tux Increment Wstltl#3;7-Awicifion Plazo Redeyellopment P43ircel ldenfiflC9fiCn N GP po I':of Yo,"cry 11.o clo(l A dd o rs TokN I i z q d r.."loss E)v"'Aling (.Qn&us ZOrihriCp ID V,Ou 9, Urli I 1 62 (Y"I.M cii FCW)F 5,M N TH11.Y 14CCMI91 A.APPIRE.C., I'.Y.X)F X..)t,4 FFIR IDR I,,q7O js,4k'J(j 2,01(1(4,1(.K) $2,1 1;r B 15 Rl,,qLl P Di R&H.1 P D 2 (0 Om2 0,,.A)0 STAIL C)F al DR cj 0 Ul 2 15 RIFID ITYC'i Cl- V11(0 ,t 15 ill030,1 (Ni K. c ix'C"Sil 1E I T,l I'vi. 50 IIOTALS1,370 01(ili,I(Y) j 177,75 Atl f al`ff. . . . I'aIII"i 10 AV v F ITN............A-V E 11TH AV— 7 711711 Il7lfrI)MI '' *,' ,V`q% 2 1Jrrr40 Ui forell 03-0,612-0000 I—A Ilk 'Oum)r A RK ijjWtolu"H-PA K' E$GVTH , : 11 I g111STU'll"T jil; ff(jfg) Rf,11nn 1gg0fM LAKEM E14TH AV -, 2 OV, 3 03-06 2-00,00, 0,3-0,485-0 100 5 T-old, an. ..... Vpll WINNEBAGO I STWAV:7, E 1671, Of joi lu Legend 16TH AV JI TIE) #38 Bounclory mi ;` / f f............ 0 1 Do 21M AM NO Wl Pem l3u0e:Tue duv.Auou!J Oel 1)1,: Page 50 Page 51 Page 52