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HomeMy WebLinkAbouttid-39-final-project-plan Organizational Joint Review Board Meeting: December 17, 2019 Public Hearing: December 17, 2019 Approval by Plan Commission: December 17, 2019 Adoption by Common Council: January 14, 2020 Approval by the Joint Review Board: January 20, 2020 December 17, 2019 Project Plan for the Creation of Tax Incremental District No. 39 (Cabrini School Redevelopment) Tax Incremental District No. 39 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 Finance Director Pamela Ubrig City Clerk Plan Commission Thomas Fojtik, Chair John Hinz Kathleen Propp, Vice-Chair John Kiefer Mamadou Coulibaly Justin Mitchell Lynnsey Erickson Lori Palmeri, Mayor Mike Ford Thomas Perry Derek Groth 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 ........................................................................................ 7 PRELIMINARY MAPS OF PROPOSED DISTRICT BOUNDARY ...................................................................... 8 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 ......................................................................... 15 DETAILED LIST OF PROJECT COSTS .............................................................................................................. 17 ECONOMIC FEASIBILITY STUDY, FINANCING METHODS, AND THE TIME WHEN COSTS OR MONETARY OBLIGATIONS RELATED ARE TO BE INCURRED .................................................................. 18 ANNEXED PROPERTY........................................................................................................................................... 23 ESTIMATE OF PROPERTY TO BE DEVOTED TO RETAIL BUSINESS ...................................................... 23 PROPOSED ZONING ORDINANCE CHANGES ................................................................................................ 23 PROPOSED CHANGES IN MASTER PLAN, MAP, BUILDING CODES AND CITY OF OSHKOSH ORDINANCES .......................................................................................................................................................... 23 RELOCATION ........................................................................................................................................................... 23 ORDERLY DEVELOPMENT OF THE CITY OF OSHKOSH ............................................................................. 24 LIST OF ESTIMATED NON-PROJECT COSTS ................................................................................................. 24 OPINION OF ATTORNEY FOR THE CITY OF OSHKOSH ADVISING WHETHER THE PLAN IS COMPLETE AND COMPLIES WITH WISCONSIN STATUTES 66.1105 ...................................................... 25 CALCULATION OF THE SHARE OF PROJECTED TAX INCREMENTS ESTIMATED TO BE PAID BY THE OWNERS OF PROPERTY IN THE OVERLYING TAXING JURISDICTIONS ..................................... 26 _____________________________________________________________________________________________ TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 4 December 17, 2019 SECTION 1: Executive Summary Description of District Tax Incremental District (“TID”) No. 39 (“District”) is a proposed district in need of rehabilitation or conservation consisting of a 1.28-acre parcel at the location of the former St. Francis Cabrini School which had stood vacant since 2017. The City has received an application from Northpointe Development Corporation (“Developer”) for tax incremental financing (“TIF”) assistance to support rehabilitation of the school structure for use as low-income senior apartments (“Project”). The Project will include construction of approximately 35 apartment units and 26 single car garage units as well as surface parking. The Project would be financed with a combination of Low-Income Housing Tax Credits (LIHTC), Historic Tax Credits, Community Development Block Grant funds and a “pay as you go” development incentive provided by the District. Developer intends to make application in early January 2020 to the Wisconsin Housing & Economic Development Authority for the tax credits. If credits are awarded, Developer expects to commence construction in October of 2020 with Project completion and occupancy in the summer of 2021. Developer is requesting creation of the District at this time as the application for tax credits must include documentation of the Project’s funding sources and financial feasibility. 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 $582,500 (“Project Costs”) to undertake the projects listed in this Project Plan (“Plan”). Project Costs include a $500,000 development incentive, and an estimated $82,500 in District administrative expense. The potential incentive amount is based on Developer’s assistance request. 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 and may therefore vary from the assumptions used in the Plan for purposes of assessing economic feasibility. Incremental Valuation The City projects that an incremental increase in land and improvements value of approximately $1,830,000 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 2035, reflecting 14 years of tax increment collections, and 16 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. _____________________________________________________________________________________________ TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 5 December 17, 2019 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. The City recognizes the community need for affordable senior housing which typically requires TIF participation. The Developer’s application for TIF assistance reflects an Internal Rate of Return of 4.04% for the tax credit investor if $500,000 in development incentives are provided to the Project, and a 1.41% return without incentives. Developer has further stated that tax credit investors typically seek a 4% to 5.5% return on similar projects. Based on the Developer’s representations in their application for TIF assistance, the City has concluded that the Project would not likely proceed without a development incentive. The specific amount and terms of any incentive provided to the Project will be subject to additional due diligence undertaken by the City prior to approval of a development agreement to include verification of the Project’s sources and uses, projected cashflows, financing gap and investor returns. The City has elected to defer further analysis until the Developer has secured the tax credit allocation for the Project. 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 result in rehabilitation and conservation of the former school building, creation of affordable senior housing, and provision of employment and commercial opportunities related to the construction and operation of the Project. 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 in need of rehabilitation or conservation within the meaning of Wis. Stat. § 66.1337(2m)(a) and as further detailed in Section 5 of the Plan. 5. Based on the foregoing finding, the District is designated a district in need of rehabilitation or conservation based on the identification and classification of the property included within the District. 6. The Project Costs relate directly to rehabilitating and conserving property, consistent with the purpose for which the District is created. _____________________________________________________________________________________________ TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 6 December 17, 2019 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 none 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. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 7 December 17, 2019 SECTION 2: Type and General Description of District The District is a proposed district in need of rehabilitation or conservation consisting of a 1.28 acre parcel at the location of the former St. Francis Cabrini School which had stood vacant since 2017. The City has received an application from Developer for TIF assistance to support rehabilitation of the school structure for use as low-income senior apartments. The Project will include construction of approximately 35 apartment units and 26 single car garage units as well as surface parking. The Project would be financed with a combination of Low-Income Housing Tax Credits (LIHTC), Historic Tax Credits, Community Development Block Grant funds and a “pay as you go” development incentive provided by the District. Developer intends to make application in early January 2020 to the Wisconsin Housing & Economic Development Authority for the tax credits. If credits are awarded, Developer expects to commence construction in October of 2020 with Project completion and occupancy in the summer of 2021. Developer is requesting creation of the District at this time as the application for tax credits must include documentation of the Project’s funding sources and financial feasibility. _____________________________________________________________________________________________ TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 8 December 17, 2019 SECTION 3: Preliminary Maps of Proposed District Boundary _____________________________________________________________________________________________ TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 9 December 17, 2019 _____________________________________________________________________________________________ TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 10 December 17, 2019 SECTION 4: Maps Showing Existing Uses and Conditions _____________________________________________________________________________________________ TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 11 December 17, 2019 _____________________________________________________________________________________________ TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 12 December 17, 2019 SECTION 5: Preliminary Parcel List and Analysis The District will consist of a single tax parcel: Lot 2 (“Lot”) of a Certified Survey Map approved on November 5, 2019. As of January 1, 2020, the Lot was part of the following parcel: Parcel Number: 04-0435-000 Address: 605 Merritt Avenue Owner: St. Mary’s Congregation The Lot comprises 1.28 acres of the original 2.51-acre parent parcel and is the site of the former St. Francis Cabrini School. The school structure, which has sat vacant for the past three years, will be converted to a 35-unit low income senior apartment complex is in need of rehabilitation or conservation as defined in Wis. Stat. § 66.1337(2m)(a). Specifically, the Project will involve carrying out plans for a program of voluntary repair and rehabilitation of buildings or other improvements as identified below. The rehabilitation of the building will include: • ADA accessibility improvements which includes installing an elevator. • The interior must be modified for apartments which will include new code-compliant spaces for bedrooms, bathrooms and kitchens. • The plumbing system must be replaced. • The HVAC system must be replaced. • The electrical system must be replaced. The conservation of the building exterior will include: • Brick maintenance and tuck pointing. • Window replacement. • Door replacement. • Roof and stairway repairs as needed. _____________________________________________________________________________________________ TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 13 December 17, 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 $176,732,100, or about 4.2% of the City’s total equalized value. This value is less than the maximum of $505,391,460 in equalized value that is permitted for the City. District Creation Date 1/14/2020 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 Value of District 0 Total Value Subject to 12% Test 176,732,100 Compliance PASS City of Oshkosh, Wisconsin Tax Increment District # 39 Valuation Test Compliance Calculation _____________________________________________________________________________________________ TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 14 December 17, 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. 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. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 15 December 17, 2019 SECTION 8: Map Showing Proposed Improvements and Uses _____________________________________________________________________________________________ TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 16 December 17, 2019 _____________________________________________________________________________________________ TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 17 December 17, 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 Timeframe Total Development Incentives1 2023 - 2035 500,000$ TIF Administrative Expenses 2020 - 2035 82,500$ Total Projects 582,500$ Notes: 1 Incentive shown reflects requested amount from Developer's TIF Application dated 10-23-2019, and is identified for 1 purposes of establishing economic feasibility only. The City has not agreed to final terms or conditions with Developer. City of Oshkosh, Wisconsin Tax Increment District # 39 Detailed List of Project Costs _____________________________________________________________________________________________ TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 18 December 17, 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 $1,830,000 in incremental value by January 1, 2022. 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 $1,194,350 in incremental tax revenue over the 27-year term of the District as shown in Table 2. _____________________________________________________________________________________________ TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 19 December 17, 2019 35 Unit Senior Apt. Complex Annual Total 1 2020 0 2020 1 2 2021 1,830,000 1,830,000 2021 2 3 2022 0 2022 3 4 2023 0 2023 4 5 2024 0 2024 5 6 2025 0 2025 6 7 2026 0 2026 7 8 2027 0 2027 8 9 2028 0 2028 9 10 2029 0 2029 10 11 2030 0 2030 11 12 2031 0 2031 12 13 2032 0 2032 13 14 2033 0 2033 14 15 2034 0 2034 15 16 2035 0 2035 16 17 2036 0 2036 17 18 2037 0 2037 18 19 2038 0 2038 19 20 2039 0 2039 20 21 2040 0 2040 21 22 2041 0 2041 22 23 2042 0 2042 23 24 2043 0 2043 24 25 2044 0 2044 25 26 2045 0 2045 26 27 2046 0 2046 27 Totals 1,830,000 1,830,000 Notes: 1Estimated valuation taken from Developer's TIF Application dated 10-23-2019. Developer anticipates 1Project completion and occupancy in summer of 2021. City of Oshkosh Tax Increment District # 39 Development Assumptions1 Construction Year Construction Year Table 1 – Development Assumptions _____________________________________________________________________________________________ TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 20 December 17, 2019 0 2 2021 1,830,000 2022 0 1,830,000 2023 $25.11 45,943 3 2022 0 2023 0 1,830,000 2024 $25.11 45,943 4 2023 0 2024 0 1,830,000 2025 $25.11 45,943 5 2024 0 2025 0 1,830,000 2026 $25.11 45,943 6 2025 0 2026 0 1,830,000 2027 $25.11 45,943 7 2026 0 2027 0 1,830,000 2028 $25.11 45,943 8 2027 0 2028 0 1,830,000 2029 $25.11 45,943 9 2028 0 2029 0 1,830,000 2030 $25.11 45,943 10 2029 0 2030 0 1,830,000 2031 $25.11 45,943 11 2030 0 2031 0 1,830,000 2032 $25.11 45,943 12 2031 0 2032 0 1,830,000 2033 $25.11 45,943 13 2032 0 2033 0 1,830,000 2034 $25.11 45,943 14 2033 0 2034 0 1,830,000 2035 $25.11 45,943 15 2034 0 2035 0 1,830,000 2036 $25.11 45,943 16 2035 0 2036 0 1,830,000 2037 $25.11 45,943 17 2036 0 2037 0 1,830,000 2038 $25.11 45,943 18 2037 0 2038 0 1,830,000 2039 $25.11 45,943 19 2038 0 2039 0 1,830,000 2040 $25.11 45,943 20 2039 0 2040 0 1,830,000 2041 $25.11 45,943 21 2040 0 2041 0 1,830,000 2042 $25.11 45,943 22 2041 0 2042 0 1,830,000 2043 $25.11 45,943 23 2042 0 2043 0 1,830,000 2044 $25.11 45,943 24 2043 0 2044 0 1,830,000 2045 $25.11 45,943 25 2044 0 2045 0 1,830,000 2046 $25.11 45,943 26 2045 0 2046 0 1,830,000 2047 $25.11 45,943 27 2046 0 2047 0 1,830,000 2048 $25.11 45,943 Totals 1,830,000 0 Future Value of Increment 1,194,530 Notes: City of Oshkosh Tax Increment District # 39 Tax Increment Projection Worksheet Table 2 – Tax Increment Projection Worksheet _____________________________________________________________________________________________ TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 21 December 17, 2019 Financing and Implementation The City anticipates making total Project Cost expenditures of $582,500 including a $500,000 development incentive, and an estimated $82,500 in District administrative expense. The potential incentive amount is based on Developer’s assistance request. 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 and may therefore vary from the assumptions used in the Plan for purposes of assessing economic feasibility. Development incentive payments will be paid from tax increments as they are collected on a “pay as you go” basis. Administrative expenses will be paid from tax increments collected, or from advances from other funds to the extent those costs exceed cash amounts available. The City will recover any amounts advanced to the District as cash flows permit. 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 2035, reflecting 14 years of tax increment collections, and 16 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. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 22 December 17, 2019 Cash Flow City of Oshkosh Tax Increment District # 39 Cash Flow Projection Year 90%Year 2020 15,000 15,000 15,000 15,000 0 0 2020 2021 4,500 4,500 4,500 4,500 0 0 0 2021 2022 0 4,500 4,500 4,500 4,500 0 0 500,000 2022 2023 45,943 45,943 41,349 4,500 45,849 94 94 458,651 2023 2024 45,943 45,943 41,349 4,500 45,849 94 189 417,302 2024 2025 45,943 45,943 41,349 4,500 45,849 94 283 375,953 2025 2026 45,943 45,943 41,349 4,500 45,849 94 377 334,603 2026 2027 45,943 45,943 41,349 4,500 45,849 94 472 293,254 2027 2028 45,943 45,943 41,349 4,500 45,849 94 566 251,905 2028 2029 45,943 45,943 41,349 4,500 45,849 94 660 210,556 2029 2030 45,943 45,943 41,349 4,500 45,849 94 755 169,207 2030 2031 45,943 45,943 41,349 4,500 45,849 94 849 127,858 2031 2032 45,943 45,943 41,349 4,500 45,849 94 943 86,509 2032 2033 45,943 45,943 41,349 4,500 45,849 94 1,038 45,160 2033 2034 45,943 45,943 41,349 4,500 45,849 94 1,132 3,810 2034 2035 45,943 45,943 3,810 31,410 4,500 39,720 6,223 7,356 0 2035 2036 45,943 45,943 0 45,943 53,299 0 2036 2037 45,943 45,943 0 45,943 99,243 0 2037 2038 45,943 45,943 0 45,943 145,186 0 2038 2039 45,943 45,943 0 45,943 191,130 0 2039 2040 45,943 45,943 0 45,943 237,073 0 2040 2041 45,943 45,943 0 45,943 283,017 0 2041 2042 45,943 45,943 0 45,943 328,960 0 2042 2043 45,943 45,943 0 45,943 374,903 0 2043 2044 45,943 45,943 0 45,943 420,847 0 2044 2045 45,943 45,943 0 45,943 466,790 0 2045 2046 45,943 45,943 0 45,943 512,734 0 2046 2047 45,943 45,943 0 45,943 558,677 0 2047 2048 45,943 45,943 0 0 45,943 604,620 (0)2048 Total 1,194,530 24,000 1,218,530 500,000 31,410 82,500 613,910 Total Notes: 1Incentive shown reflects requested amount from Developer's TIF Application dated 10-23-2019, and is identified for purposes of establishing economic feasibility only. 1The City has not agreed to final terms or conditions with Developer. Projected Revenues Tax Increments Advance to Cover Admin. Expense Total Expenditures Repay Advance @ 2% Interest Balances Admin. Expense Projected Expenditures MRO Payments Outstanding Development Incentives (MRO)1 @ Projected TID Closure Annual Cumulative Total Revenues Table 3 _____________________________________________________________________________________________ TID No. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 23 December 17, 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 none 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 territory to be included in the District is presently zoned I, Institutional District and will be rezoned to I – PD, Institutional District with a Planned Development Overlay to allow for construction of the Project. 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 a Community Facility. The Institutional District with a Planned Development Overly is consistent with the Comprehensive Plan. 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. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 24 December 17, 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 the provision of appropriate financial incentives that will result in rehabilitation and conservation of property, and creation of affordable senior housing. 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 Project will be compatible with adjacent land uses. Redevelopment of the existing structure within the District will add to the tax base and will generate positive secondary impacts such as employment and commercial opportunities related to the construction and operation of the Project. 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. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 25 December 17, 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. 39 Project Plan City of Oshkosh Prepared by Ehlers Page 26 December 17, 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% Total 3,708,374 Total 241,489 477,519 425,264 50,258 1,194,530 Notes: § 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