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TO: Honorable Mayor and Members of the Common Council FROM: Kelly Nieforth, Director of Community Development DATE: July 23, 2024 SUBJECT: Res 24-442 Approve Dissolving Tax Incremental District No. 28 Oshkosh Beach Building Redevelopment

BACKGROUND

On June 14, 2016, Council approved a creation resolution for a project plan and boundaries for Tax Incremental Financing District (TID) No. 28 Oshkosh Beach Building Redevelopment. The TID was created to assist in the adaptive reuse of the Beach Building at 240 Algoma Boulevard into a mixed-use modern commercial/residential apartment complex and retail/service business center. On March 12, 2024, Common Council approved an Affordable Housing Extension to extend TID 28 for one additional year, which will result in approximately $64,000 being added to the Healthy Neighborhood Initiative for housing improvements in the community.

ANALYSIS

On January 16, 2024, the property was sold to the Christine Ann Center. The new owners have requested tax-exempt status, and the City has determined the property is eligible. As a result, the prior development agreement for Paygo development assistance is now void.

FISCAL IMPACT

The cash balance for TID No. 28 is about $150,000. After the final audit is complete, the City will retain about 30% of the funds to establish a reserve fund to help underdeveloped TIDs. According to state statutes, the municipality must return excess funds based on each taxing jurisdiction's portion of the total tax rate. The Department of Revenue recommends basing the distribution on the most recent tax levy proportions without the tax increment. The other taxing jurisdictions include the Oshkosh Area School District, Winnebago County, and Fox Valley Technical College, in proportion to their contributions.

RECOMMENDATION

Staff recommends approval of dissolving Tax Incremental District No. 28 Oshkosh Beach Building Redevelopment.

Attachments Res 24-442

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