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Oshkosh review highlights Oshkosh Corp. TIFs, micro‑TIF strategy and mixed performance across districts
Summary
City staff reviewed 2019 annual tax increment financing (TIF) reports, highlighting TIF 34 and 35 tied to Oshkosh Corporation development, ongoing PAYGo agreements, progress on several redevelopment parcels and continuing concerns about the Aviation Business Park.
Oshkosh City officials reviewed the 2019 annual reports for the city’s tax increment financing (TIF) districts and emphasized recent growth tied to two new Oshkosh Corporation districts and a continued shift toward single‑parcel (“micro”) TIFs.
City staff said TIF 34, created for the Oshkosh Corporation Global Headquarters parcel, showed increment up to about $10,000,000 in the 2019 report and staff expect the number to rise when full build‑out is reflected in next year’s report. Staff noted the development agreement for that project includes a minimum assessment of $18,000,000 and that the city expects to exceed that minimum once the project is fully assessed.
TIF 35, established to fund infrastructure — including extension of Keller Avenue and related intersection work on Oshkosh Avenue — has produced increment from Bank First and a Casey’s convenience store, and staff said an office building is under construction along the frontage and a hotel is expected to begin construction later this year. Staff also said approved implementation plans are now in place for the hotel, retail and office buildings within TIF 35.
Why this matters: TIFs are a common local tool to finance public infrastructure that supports private development; the city’s recent use of PAYGo (pay‑as‑you‑go) TIF agreements shifts certain risk and payments to developers and affects how quickly taxing jurisdictions see distributions.
City staff identified several TIFs that have recovered from earlier problems after using TIF 7 to pay project costs; those include former problem districts referred to as 20, 21 and 13 (Marion Road and South Shore). By contrast, the Aviation Business Park remains a concern: staff said the park has had little development, although recent land sales in TIF 23 (the transload site north of the railroad in the Southwest Industrial Park) to Illinois Cement and an expected sale to Blicon, plus a planned option exercise by WAPCO for roughly 10 more acres, should accelerate activity in that transload area.
County investment in a first “nub” of a taxiway into the Aviation Business Park was described as a necessary step to create lots suitable for tenants that require taxiway access; staff noted a “chicken and egg” problem because FAA and other funders are reluctant to pay until a tenant can be shown to need the taxiway, but tenants are reluctant to commit without the taxiway.
Staff updated the board on other redevelopment items mentioned in the reports: the RDA has sold three parcels to the developer Merge and Merge’s building plan review has been approved; staff said final site engineering is pending and an early July groundbreaking was being discussed. The Merge agreement was amended so parcel priorities shifted (parcel J to parcel H), and staff described a stepped PAYGo incentive that reduces the developer’s payout if they do not complete all three buildings on the original schedule.
Other project notes included: Mine Shaft is expanding and staff said it is expected to open later this summer after adding a bakery; Pioneer marina work is limited and not proceeding on a broader marina/restaurant plan at this time; Cabrini recently received tax credits and staff said any PAYGo payment will follow approval of a development agreement by council.
Staff and the board also discussed the city’s TIF profile: the report shows the city’s taxable value participation is about 4.2%, well below a cited statutory maximum value cap of 12%, and staff characterized Oshkosh’s approach as mostly micro‑TIFs—single‑parcel districts created as development warrants rather than large, multi‑parcel districts.
Board members and staff noted tradeoffs: micro‑TIFs reduce the city’s large‑area exposure but increase administrative costs because each parcel requires separate documents and review. Finance staff were said to be monitoring consistency with the Sawdust District plan and the comprehensive plan when evaluating future small TIFs, and staff said additional TIFs could appear later this year but would not show up in reports until the next annual cycle.
The board moved on to the next agenda item and later adjourned the meeting.
