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TO:

Honorable Mayor and Members of the Common Council

FROM:

Kelly Nieforth, Director of Community Development

DATE:

August 27, 2024

SUBJECT:

Res 24-491 Approve Tax Incremental District No. 44 Project Plan; Designate Tax Incremental District No. 44 Boundaries; Create Tax Incremental District No. 44 Northwest Oshkosh Expansion Area (Plan Commission Recommends Approval)

BACKGROUND

Tax Incremental District No. 44 (the “TID” or “District”) is a proposed Mixed-Use district comprised of approximately 392 acres located in the northwest portion of the City, generally including the areas east and west of US HWY 45 between Interstate 41 and Ryf Road interchanges. The District will be created to pay the costs of public infrastructure improvements needed to allow for full development of areas within the District. This is the City’s first Mixed-Use Tax Incremental District.

ANALYSIS

The District is being created as “Mixed Use” within the meaning of Wis. Stat. 66.1105(2)(cm) based on the combination of industrial, commercial, or residential uses. The statute further limits that land proposed for newly platted residential use, as shown in the Project Plan, may not exceed 35 percent, by area in the District. Establishment of the District will allow for the extension of necessary public infrastructure and enable the City to grow in the northwest portion of the City limits. Without the extension of the public infrastructure, it is unlikely the area within the District would develop to its full potential. The proposed projects and potential developments scored 75 points on the Mixed-Use scoring matrix within the City’s TIF Policy, exceeding the minimum 50 points required. The project is consistent with recommendations within the City’s 2040 Comprehensive Plan.

FISCAL IMPACT

The City anticipates making total expenditures of approximately $44.8 million to undertake projects identified in the Project Plan. Project costs include an estimated $18.6 million in “pay as you go” development incentives, an estimated $16.9 million for public infrastructure, and an estimated $314,000 in administrative costs. In addition to the public infrastructure projects, development incentives may be considered only for projects that can demonstrate a verifiable gap and are approved by the Common Council through a TIF Development Agreement. Based on the Project Cost expenditures identified on Table 3, page 30 of the Plan, the District is anticipated to close in 2043. At that point the full value of the properties would be included in the overall tax rolls which is currently estimated at $162 million if full development takes place.

RECOMMENDATION

The Plan Commission recommended approval of the Tax Increment District No. 44 Project Plan and boundaries on August 6, 2024. Please see the attached staff report and meeting minutes for more information.

Attachments

RES 24-491

TID 44 Staff Report

Oshkosh TID No. 44 Project Plan