Tax Incremental District No 6 Meeting

Notice is hereby given that a majority of the City Council may be present at the aforementioned meeting of the Plan Commission to gather information about a subject over which they have decision making responsibility. This constitutes a meeting of the City Council pursuant to State ex rel. Badke v. Greendale Village Bd., 173 Wis. 2d 553, 494 N. W. 2d 408 (1993), and must be noticed as such, although the Council will not take any formal action at this meeting. AGENDA JOINT REVIEW BOARD CITY OF HUDSON TAX INCREMENTAL DISTRICT NO. 6 CREATION June 19, 2018 at 4:00 p.m. Council Chambers of Hudson City Hall 505 3rd Street 1. Call to order 2. Consideration and appointment and/or reaffirmation of the Joint Review Board’s public member 3. Election and/or reaffirmation of Chairperson 4. Discuss responsibilities of the Joint Review Board 5. Discuss & review project plan 6. Set next meeting date 7. Adjourn Posted in City Hall lobbies and emailed to Hudson Star Observer on 6/15/2018 City of Hudson, WI Joint Review Board (JRB) Meeting and Planning Commission Public Hearing Creation of Tax Increment District (TID) No. 6 June 19, 2018 1 Review Topics • Tax Increment Financing Basics • Proposed TID No. 6 – Boundaries –P r o j e c t s – “Mixed-Use” – Preliminary Redevelopment & Development Assumptions – Preliminary Cash Flow • Timeline & Next Steps • Questions 2 How does TIF work? 3 Eligible Project Costs • Public works & improvements • Financing costs • Real property assembly costs (land write-down) • Professional service costs • Administrative costs • Relocation costs • Contribution to Community Development Authority 4 • Organizational costs • Pro-rated costs of utility infrastructure • Cash grants (requires developer agreement) • Environmental remediation • Projects within ½ mile of district TID No. 6 – Mixed-Use District • Purpose: Promote development and redevelopment in Hudson’s Historic Downtown through public improvements and other incentives • Goal: Increase tax base and provide employment opportunities • Required Finding: at least 50%, by area, of the real property within the District is suitable for Mixed- Use development (Combination of Industrial, Commercial, & Residential) 5 • Preliminary Projects: – Cash Grant / Redevelopment / Business Incentives – Second Street Reconstruction – Waterfront Upgrades & Improvements – Storm water Improvements – Parking & Meters – Creation / Administration / Marketing – Total: $34,000,000 – Other Funding including Grants are projected to fund a significant share of the Waterfront Upgrades – Projects and Incentives must be individual approved by City TID No. 6 – Preliminary Development Assumptions 6 Actual River City  Center FLAZ/     Business Gerrard Other Future  Redevelop. Annual Total 1 2018 7,300,000 8,000,000 15,300,000 2018 1 2 2019 20,000,000 20,000,000 2019 2 3 2020 10,000,000 10,000,000 2020 3 4 2021 0 2021 4 5 2022 0 2022 5 6 2023 8,000,000 8,000,000 2023 6 7 2024 0 2024 7 8 2025 5,000,000 5,000,000 2025 8 9 2026 3,700,000 3,700,000 2026 9 10 2027 0 2027 10 11 2028 0 2028 11 12 2029 0 2029 12 13 2030 0 2030 13 14 2031 0 2031 14 15 2032 0 2032 15 16 2033 0 2033 16 17 2034 0 2034 17 18 2035 0 2035 18 19 2036 0 2036 19 20 2037 0 2037 20 Totals 0 7,300,000 8,000,000 20,000,000 26,700,000 62,000,000 Notes: Construction Year Construction Year City of Hudson, Wisconsin Tax Increment District # 6 Development Assumptions Tax Increment District No. 6 – Preliminary Cash Flow 7 • Projected combination of City “Pay as You Go” Financing & City Debt for TID 6 projects City of Hudson, Wisconsin Tax Increment District # 6 Cash Flow Projection Expenditures Year Dated Date:   Dated Date:   Dated Date:   Dated Date:   Principal Est. Rate Interest Principal Est. Rate Interest Principal Es t. Rate Interest Principal Est. Rate Interest 2018 0 2019 0 2020 283,050 283,050 100,000 0.00% 0 100,000 0.00% 0 2021 655,881 655,881 100,000 0.00% 0 100,000 0.00% 0 157,895 0.00% 0 25,000 2.30% 53,996 2022 847,439 847,439 100,000 0.00% 0 100,000 0.00% 0 157,895 0.00% 0 45,000 2.50% 35,423 2023 855,914 855,914 100,000 0.00% 0 100,000 0.00% 0 157,895 0.00% 0 45,000 2.65% 34,298 2024 864,473 864,473 100,000 0.00% 0 100,000 0.00% 0 157,895 0.00% 0 45,000 2.75% 33,105 2025 1,021,118 1,021,118 100,000 0.00% 0 100,000 0.00% 0 157,895 0.00% 0 45 ,000 2.85% 31,868 2026 1,031,329 1,031,329 100,000 0.00% 0 100,000 0.00% 0 157,895 0.00% 0 50 ,000 2.90% 30,585 2027 1,134,142 1,134,142 100,000 0.00% 0 100,000 0.00% 0 157,895 0.00% 0 50 ,000 3.00% 29,135 2028 1,213,933 1,213,933 100,000 0.00% 0 100,000 0.00% 0 157,895 0.00% 0 50 ,000 3.15% 27,635 2029 1,226,073 1,226,073 100,000 0.00% 0 100,000 0.00% 0 157,895 0.00% 0 55 ,000 3.25% 26,060 2030 1,238,334 1,238,334 100,000 0.00% 0 100,000 0.00% 0 157,895 0.00% 0 55 ,000 3.35% 24,273 2031 1,250,717 1,250,717 100,000 0.00% 0 100,000 0.00% 0 157,895 0.00% 0 55 ,000 3.45% 22,430 2032 1,263,224 1,263,224 100,000 0.00% 0 100,000 0.00% 0 157,895 0.00% 0 60 ,000 3.55% 20,533 2033 1,275,856 1,275,856 100,000 0.00% 0 100,000 0.00% 0 157,895 0.00% 0 60 ,000 3.65% 18,403 2034 1,288,615 1,288,615 100,000 0.00% 0 100,000 0.00% 0 157,895 0.00% 0 65 ,000 3.70% 16,213 2035 1,301,501 1,301,501 100,000 0.00% 0 100,000 0.00% 0 157,895 0.00% 0 65 ,000 3.80% 13,808 2036 1,314,516 1,314,516 100,000 0.00% 0 100,000 0.00% 0 157,895 0.00% 0 65 ,000 3.90% 11,338 2037 1,327,661 1,327,661 100,000 0.00% 0 100,000 0.00% 0 157,895 0.00% 0 70 ,000 3.95% 8,803 2038 1,340,938 1,340,938 100,000 0.00% 0 100,000 0.00% 0 157,895 0.00% 0 75 ,000 4.00% 6,038 2039 1,354,347 1,354,347 100,000 0.00% 0 100,000 0.00% 0 157,895 0.00% 0 75 ,000 4.05% 3,038 Total 22,089,059 0 22,089,059 2,000,000 0 2,000,000 0 3,000,000 0 1,055,0 00 446,976 Notes: Projected Revenues Tax  Increments Interest  Earnings/  (Cost) Total  Revenues Municipal Revenue Obligation (MRO) 3,000,00 0 Dec. 1, 2020 G.O. Bond 1,055,000 Dec. 1, 202 0 Municipal Revenue Obligation (MRO) 2,000,000 Dec. 1, 2019 Municipal Revenue Obligation (MRO) 2,000,000 Dec. 1, 2019 Tax Increment District No. 6 – Preliminary Cash Flow 8 Dated Date:   Dated Date:   Stormwater Principal Est. Rate Interest Principal Est. Rate Interest Projects Year 25,000 25,000 (25,000) (25,000) 2018 5,000 7,500 12,500 (12,500) (37,500) 2019 5,000 7,500 212,500 70,550 33,050 2020 5,000 7,500 449,391 206,490 239,540 2021 83,333 0.00% 0 5,000 7,500 534,151 313,289 552,828 2022 83,333 0.00% 0 5,000 7,500 533,026 322,888 875,716 2023 83,333 0.00% 0 280,000 2.30% 390,476 5,000 7,500 1,202,309 (337,836) 537,880 2024 83,333 0.00% 0 415,000 2.50% 253,878 5,000 100,000 7,500 1,299,473 (278,356) 259,524 2025 83,333 0.00% 0 425,000 2.65% 243,503 5,000 7,500 1,202,816 (171,487) 88,038 2026 83,333 0.00% 0 435,000 2.75% 232,240 5,000 100,000 7,500 1,300,103 (165,961) (77,923) 2027 83,333 0.00% 0 450,000 2.85% 220,278 5,000 7,500 1,201,641 12,293 (65,631) 2028 83,333 0.00% 0 460,000 2.90% 207,453 5,000 100,000 7,500 1,302,241 (76,168) (141,798) 2029 83,333 0.00% 0 475,000 3.00% 194,113 5,000 7,500 1,202,113 36,220 (105,578) 2030 83,333 0.00% 0 490,000 3.15% 179,863 5,000 100,000 7,500 1,301,021 (50,304) (155,882) 2031 83,333 0.00% 0 505,000 3.25% 164,428 5,000 7,500 1,203,688 59,536 (96,346) 2032 83,333 0.00% 0 520,000 3.35% 148,015 5,000 600,000 7,500 1,800,146 (524,289) (620,635) 2033 83,333 0.00% 0 540,000 3.45% 130,595 7,500 1,200,536 88,079 (532,556) 2034 83,333 0.00% 0 560,000 3.55% 111,965 7,500 1,199,501 102,000 (430,555) 2035 83,333 0.00% 0 580,000 3.65% 92,085 7,500 1,197,151 117,365 (313,190) 2036 83,333 0.00% 0 600,000 3.70% 70,915 7,500 1,198,446 129,216 (183,974) 2037 83,333 0.00% 0 620,000 3.80% 48,715 7,500 1,198,481 142,457 (41,517) 2038 83,333 0.00% 0 645,000 3.90% 25,155 7,500 1,196,921 157,427 115,909 2039 1,500,000 0 8,000,000 2,713,674 75,000 1,000,000 25,000 157,500 21,973, 150 Total Balances G.O. Bond 8,000,00 0 Oct. 1, 2023 Marketing Creation Admin. Total  Expenditures Annual Cumulative Municipal Revenue Obligation (MRO) 1,500,000 Dec. 1, 2021 Projected  TID  Closure Preliminary Timeline / Questions • June 19, 2018: – 4:00 Joint Review Board (JRB) Meeting – 7:00 Planning Commission Public Hearing – Approval of Resolution recommending TID 6 Creation to City Council • July 9, 2018 – City Council Meeting: TID 6 Creation Resolution on Agenda • Within 45 Days: JRB convenes to vote on Creation • Questions 9 (651) 697-8509 slentz@ehlers-inc.com Sean Lentz Senior Municipal Advisor (651) 697-8582 chetland@ehlers-inc.com Chris Hetland Financial Specialist 10