TID #4 - Amcast Site Redevelopment

Records Collection Site

Project Plan

COMMUNITY INVOLVEMENT PLAN - EPA (12-21-22)

EPA Information on project

AMCAST Fact Sheet - EPA
Detailed Timeline - EPA
Timeline Highlights - EPA

AMCAST ROD - EPA (9-27-23)

WDNR Information on project

Type of District, Size and Location

Tax Incremental District No. 4 (the “TID” or “District”) is a 8.42 acre blighted area district to be created to facilitate redevelopment of the former Meta Mold Aluminum Company manufacturing site. Located in the east central portion of the City in the general vicinity of the intersection of Johnson Avenue and Hamilton Road, the properties to be included within the District are listed as part of a larger property included on the United State Environmental Protection Agency National Priorities List. The properties are contaminated with various hazardous substances including polychlorinated biphenyl (PCB), polycyclic aromatic hydrocarbons (PAH), asbestos containing building materials (ACBMs), lead based paint, and other volatile organic compounds (VOCs). The City intends to use tax incremental financing to provide incentives to a private developer for remediation and redevelopment of the properties. A map of the proposed District boundaries is found in Section 3 of this plan.

Estimated Total Project Expenditures

The City anticipates making total project expenditures (“Project Costs”) of approximately $4.54 million including $3.33 million in project incentive and assistance payments, $1.04 million for long-term interest due on the associated debt obligation, $97,000 for finance related expenses and $84,000 for administrative expense over the life of the District. Full costs to carry the debt are estimated to be $1.37 million with an expectation that the City will need to provide a net $337,766 subsidy to cover the full amount of the interest payments due. Projects to be undertaken pursuant to this Project Plan (“Plan”) are expected to be financed with general obligation debt issued by the City. A summary of total project financing, is found in Section 10 of this plan. Economic Development The development agreement obligates the developer to create a minimum of $10,025,000 in incremental valuation within the District not later than January 1, 2027. This additional value will be a result of the improvements made and projects undertaken within the District. A table detailing assumptions as to the timing of new development and associated values is found in Section 10 of this Plan. In addition, creation of the District is expected to result in other economic benefits as detailed in the Summary of Findings hereafter.

Expected Termination of District

Based on the Economic Feasibility Study located in Section 10 of this plan, the City expects the District will remain open for its entire 27-year term. The City further expects that the District will not recover its Project Costs, and that the City will be providing an estimated $878,946 subsidy to the District consisting of the $337,766 debt service gap noted in the Estimated Total Project Expenditures paragraph above plus $541,180 in estimated interest accruals on both the recovered and unrecovered portions of advanced funds. The City’s subsidy would be reduced should development occur sooner, at greater densities or higher values, or in the event of economic appreciation beyond the 1% assumed in the projections included in this Plan. While the City does not expect the District to fully recover its project costs, it is willing to provide a subsidy to eliminate a blighted and contaminated property which constitutes a public nuisance and health hazard. Cooperation with a willing developer provides an opportunity to leverage private investment and share risks in redevelopment of the site that would otherwise be entirely borne by the public.