The URL can be used to link to this page

#5 Approve project plan for TIF District #34 (File Res. #2009-577)Û½±²±³·½ Ü»ª»´±°³»²¬ Ó»³±®¿²¼«³ Ü¿¬»æ Ó¿®½¸ íô îððç ÌÑæ Ö¿²»ª·´´» Ý·¬§ Ý±«²½·´ ÚÎÑÓæ Ü±«¹ Ê»²¿¾´»ô Ü·®»½¬±® ±º Û½±²±³·½ Ü»ª»´±°³»²¬ ÍËÞÖÛÝÌæ ß½¬·±² ±² ¿ Î»±´«¬·±² ß°°®±ª·²¹ ¬¸» Ð®±¶»½¬ Ð´¿² º±® ¿²¼ Û¬¿¾´·¸·²¹ ¬¸» Þ±«²¼¿®·» º±® Ì¿¨ ×²½®»³»²¬ Ú·²¿²½» Ü·¬®·½¬ Ò±ò íì ¿¬ ¬¸» Í±«¬¸»®² É·½±²·² Î»¹·±²¿´ ß·®°±®¬ øÚ·´» Î»ò Ò±ò îððçó ëéé÷ I. Summary Ì¸» Ý·¬§ ¬¿ºº · °®±°±·²¹ ¬± ½®»¿¬» Ì×Ú Ò±ò íì ¬± ·²½´«¼» ·²¼«¬®·¿´ ´¿²¼ ¿¬ ¬¸» Í±«¬¸»®² É·½±²·² Î»¹·±²¿´ ß·®°±®¬ò Ì¸» Ì×Ú Ü·¬®·½¬ ©±«´¼ ¾» «»¼ ¬± °®±ª·¼» ¼»ª»´±°³»²¬ ·²½»²¬·ª» ¬± ¿ª·¿¬·±² ®»´¿¬»¼ ½±³°¿²·» ¬¸¿¬ ´±½¿¬» ¿²¼ñ±® »¨°¿²¼ ¿¬ ¬¸» ß·®°±®¬ò Ì¸» Ð´¿² Ý±³³··±² ¸»´¼ ¿ °«¾´·½ ¸»¿®·²¹ ±² ¬¸» Ð®±¶»½¬ Ð´¿² º±® Ì×Ú Ò±ò íì ¿¬ ¬¸ ¬¸»·® Ú»¾®«¿®§ ïê ³»»¬·²¹ ¿²¼ ®»½±³³»²¼»¼ ·¬ ¿¼±°¬·±²ò Í¬¿ºº ®»½±³³»²¼ ¬¸¿¬ ¬¸» Ý±«²½·´ ¿¼±°¬ Î»±´«¬·±² îððç ? ëéé ¿°°®±ª·²¹ ¬¸» ½®»¿¬·±² ±º ¿²¼ »¬¬·²¹ ¬¸» ¾±«²¼¿®·» º±® Ì×Ú Ò±ò íìò ×º ¬¸» Î»±´«¬·±² · ¿°°®±ª»¼ô Ì×Ú Ò±ò íì ©·´´ ¹± ¬± ¿ Ö±·²¬ Î»ª·»© Þ±¿®¼ º±® ®»ª·»© ¿²¼ ¿°°®±ª¿´ò II. TIF No. 34 Description Ì×Ú Ò±ò íì ©·´´ ¾» ¿² ·²¼«¬®·¿´ Ì×Ú ¼·¬®·½¬ ¼»·¹²»¼ ¬± ¬·³«´¿¬» ¬¸» ¼»ª»´±°³»²¬ ±º ¿ª·¿¬·±² ®»´¿¬»¼ ½±³°¿²·» ¿¬ ¬¸» Í±«¬¸»®² É·½±²·² Î»¹·±²¿´ ß·®°±®¬ò Ì¸» ´¿²¼ ©·¬¸·² ¬¸» Ì×Ú Ü·¬®·½¬ · ±©²»¼ ¾§ Î±½µ Ý±«²¬§ ¿²¼ ´»¿»¼ ¬± ½±³°¿²·» ¬¸¿¬ ³¿·²¬¿·² ¾«·²»» ¬¸¿¬ ®»¯«·®» ¿½½» ¬± ¿·®°±®¬ º¿½·´·¬·»ò É¸»² ¬¸» ß·®°±®¬ ¿²²»¨¿¬·±² ¾»½¿³» »ºº»½¬·ª» ·² îððéô ·¬ ½®»¿¬»¼ ¬¸» ±°°±®¬«²·¬§ º±® ¬¸» Ý·¬§ ¬± «» Ì×Ú ¼»ª»´±°³»²¬ ·²½»²¬·ª» ¬± ¬·³«´¿¬» ¿¼¼·¬·±²¿´ ¿·®°±®¬ ®»´¿¬»¼ ·²ª»¬³»²¬ò É¸·´» ²± °»½·º·½ ¼»ª»´±°³»²¬ °®±°±¿´ ¿®» °»²¼·²¹ ¿¬ ¬¸· ¬·³»ô ·¬ · ¸±°»¼ ¬¸¿¬ ¬¸» °±·¾·´·¬§ ±º Ì×Ú ·²½»²¬·ª» ©·´´ »²½±«®¿¹» »¨·¬·²¹ ½±³°¿²·» ¬± »¨°¿²¼ ±°»®¿¬·±² ¿²¼ ©·´´ «°°±®¬ ³¿®µ»¬·²¹ »ºº±®¬ ¬± ¿¬¬®¿½¬ ²»© ¾«·²»» ¬± ¬¸» ¿®»¿ò Ì¸» »¨°»²¼·¬«®» ±º ¿²§ Ì×Ú º«²¼ ©±«´¼ ¾» ´·²µ»¼ ¬± ¿ °»½·º·½ ¼»ª»´±°³»²¬ ¿¹®»»³»²¬ ©¸»®» ¬¸» ½±³°¿²§ ®»½»·ª·²¹ ¬¸» ¿·¬¿²½» ¹«¿®¿²¬»» ¬¸» °®±°»®¬§ ª¿´«» ¿²¼ ¬¿¨ ·²½®»³»²¬ ¬¸» Ý·¬§ ©·´´ ²»»¼ ·² ±®¼»® ¬± ®»½±ª»® ·¬ Ì×Ú ½±¬ò Ì¸» Ð®±¶»½¬ Ð´¿² ·²½´«¼» º«²¼·²¹ º±® ¬¸» ³¿®µ»¬·²¹ ±º ¬¸» ß·®°±®¬ ¬± ¿ª·¿¬·±²ó ®»´¿¬»¼ ¾«·²»»ò Ì×Ú º«²¼·²¹ º±® ¼»ª»´±°³»²¬ ·²½»²¬·ª» ·² «°°±®¬ ±º ²»© ¾«·²»» ¿²¼ñ±® ¾«·²» »¨°¿²·±² · ¿´± ·²½´«¼»¼ò Ì¸» Ð´¿² ¿´± °®±ª·¼» º«²¼·²¹ º±® ¬®¿²°±®¬¿¬·±² ·³°®±ª»³»²¬ ¿´±²¹ ËÍØ ëï ¿ ²»»¼»¼ ¬± ·³°®±ª» ¬®¿ºº·½ ¿º»¬§ò Û½±²±³·½ Ü»ª»´±°³»²¬ Ü»°¿®¬³»²¬ ïè Òò Ö¿½µ±² Í¬ò Ö¿²»ª·´´»ô É× ëíëìéóëððë êðèóéëëóíïèï Ì×Ú Ò±ò íì Ó¿®½¸ íô îððç Ð¿¹» î Ì¸» Ð®±¶»½¬ Ð´¿² ¿´± °®±ª·¼» º±® ¬¸» «» ±º Ì×Ú ·²½®»³»²¬¿´ ®»ª»²«» ±² °®±¶»½¬ ´±½¿¬»¼ ©·¬¸·² c ³·´» ±º ¬¸» °®±°±»¼ Ì×Ú Ü·¬®·½¬ò Ì¸· ¬§°» ±º »¨°»²¼·¬«®» · ¿´´±©»¼ ¾§ ¿ ®»½»²¬ ½¸¿²¹» ¬± ¬¸» Ì×Ú ´¿© ¿²¼ · ¼»·¹²»¼ ¬± °®±ª·¼» ¿ ³»½¸¿²·³ º±® «·²¹ Ì×Ú º«²¼ ¬± «°°±®¬ ¼»ª»´±°³»²¬ °®±¶»½¬ ¿´±²¹ ¬¸» »¿¬ ·¼» ±º ËÍØ ëï ¿ ¬¸»» °®±°»®¬·» ¿²²»¨ ¬± ¬¸» Ý·¬§ò Ì¸» ¬±¬¿´ »¬·³¿¬»¼ ½±¬ ±º Ì×Ú Ð®±¶»½¬ · üèçîôðððò ×²¬»®»¬ ½¸¿®¹» ¿²¼ º·²¿²½·²¹ ½±¬ ©·´´ ¿¼¼ ¿² »¬·³¿¬»¼ üîëðôìèë ¾®·²¹·²¹ ¬¸» ¬±¬¿´ ¿²¬·½·°¿¬»¼ Ì×Ú »¨°»²¼·¬«®» ¬± üïôïìîôìèëò Ì¸» Ì×Ú Ð®±¶»½¬ Ð´¿² ¿²¬·½·°¿¬» ¬¸¿¬ ¾»¬©»»² îððç ¿²¼ îðïêô üìôëððôððð ·² ²»© ·²½®»³»²¬¿´ °®±°»®¬§ ª¿´«» ½¿² ¾» ½®»¿¬»¼ ¾§ ¬¸» «½½»º«´ ¼»ª»´±°³»²¬ ±º °®±°»®¬·» ©·¬¸·² ¬¸» Ì×Ú ¼·¬®·½¬ò Ì¸· ²»© ª¿´«» · °®±¶»½¬»¼ ¬± ¹»²»®¿¬» üïôìéðôíêí ·² ²»© °®±°»®¬§ ¬¿¨ ®»ª»²«» ±ª»® ¬¸» îðó§»¿® ´·º» ±º ¬¸» Ì×Ú Ü·¬®·½¬ô »¨½»»¼·²¹ Ì×Ú ½±¬ ¾§ üíîéôèéè øÍ»» Ð¿¹» ïé÷ò Ì¸» Ì×Ú Ò±ò íì Ð®±¶»½¬ Ð´¿² · ¿ °´¿²²·²¹ ¼±½«³»²¬ ¿²¼ ¼±» ²±¬ ½±³³·¬ ¬¸» Ý·¬§ ¬± ·³°´»³»²¬ ¿²§ ±º ¬¸» °®±¶»½¬ »¬ º±®¬¸ ·² ¬¸» Ð´¿²ò ß · ¬¸» Ý±«²½·´? °±´·½§ô ¬¸» »¨°»²¼·¬«®» ±º ¿²§ Ì×Ú º«²¼ ©±«´¼ ¾» ´·²µ»¼ ¬± ¿ °»½·º·½ ¼»ª»´±°³»²¬ ¿¹®»»³»²¬ ©¸»®» ¬¸» °®±°»®¬§ ±©²»® ¹«¿®¿²¬»» ¬¸» °®±°»®¬§ ª¿´«» ¿²¼ ¬¿¨ ·²½®»³»²¬ ¬¸» Ý·¬§ ©·´´ ²»»¼ ·² ±®¼»® ¬± ®»½±ª»® ·¬ Ì×Ú ½±¬ò III. Development Potential Ì¸» °®±°±»¼ ¾±«²¼¿®§ º±® Ì×Ú Ò±ò íì ·²½´«¼» ¬¸®»» ³¿·² ¿®»¿ ±² ¬¸» ß·®°±®¬ °®±°»®¬§ ©¸»®» º«¬«®» ¼»ª»´±°³»²¬ °®±¶»½¬ ³¿§ ±½½«®ò Ì¸» Ý·¬§ ¸¿ ¸¿¼ ¼·½«·±² ©·¬¸ ¿ ¬©± »¨·¬·²¹ ½±³°¿²·» ¬¸¿¬ ³¿§ »¨°¿²¼ ·² ¬¸» º«¬«®» ¿ ¬¸» »½±²±³§ ·³°®±ª»ò Ì¸» Ý±«²¬§ ±©² »ª»®¿´ ´±¬ ¿´±²¹ ËÍØ ëï ©¸»®» ²»© ¿ª·¿¬·±² ®»´¿¬»¼ ½±³°¿²·» ½±«´¼ ´±½¿¬» º¿½·´·¬·»ò Ì¸» ´¿®¹» ½¿°·¬¿´ ·²ª»¬³»²¬ ¬¸¿¬ ¬¸» ¬¿¨°¿§»® ¸¿ª» ³¿¼» ·² ¬¸» Í±«¬¸»®² É·½±²·² Î»¹·±²¿´ ß·®°±®¬ ¸¿ ®»«´¬»¼ ·² ¿² »¨½»´´»²¬ º¿½·´·¬§ ¬¸¿¬ ¸±«´¼ ¾» ¿¬¬®¿½¬·ª» ¬± º·®³ ¬¸¿¬ ²»»¼ ¼·®»½¬ ¿½½» ¬± ¿·®°±®¬ º¿½·´·¬·»ò Ü»ª»´±°·²¹ ¬¸· ®»±«®½» · ±²» ½±³°±²»²¬ ·² ¬¸» ¬®¿¬»¹§ ¬± ¼·ª»®·º§ ¬¸» ¿®»¿ »½±²±³§ò IV. Recommendation Ì¸» Ð´¿² Ý±³³··±² ¸»´¼ ¿ °«¾´·½ ¸»¿®·²¹ ±² ¬¸» °®±°±»¼ Ì×Ú Ò±ò íì Ð®±¶»½¬ Ð´¿² ¿¬ ¬¸»·® Ú»¾®«¿®§ ïêô îððç ³»»¬·²¹ò Ì¸» Ð´¿² Ý±³³··±² º±«²¼ Ì×Ú Ò±ò íì ¬± ¾» ½±²·¬»²¬ ©·¬¸ Ý·¬§ °´¿² ¿²¼ ®»½±³³»²¼»¼ ¬¸¿¬ ¬¸» Ý±«²½·´ ¿¼±°¬ ¬¸» Ð®±¶»½¬ Ð´¿² º±® Ì×Ú Ò±ò íì Û½±²±³·½ Ü»ª»´±°³»²¬ Ü»°¿®¬³»²¬ ïè Òò Ö¿½µ±² Í¬ò Ö¿²»ª·´´»ô É× ëíëìéóëððë êðèóéëëóíïèï Ì×Ú Ò±ò íì Ó¿®½¸ íô îððç Ð¿¹» í Í¬¿ºº ®»½±³³»²¼ ¬¸¿¬ ¬¸» Ý±«²½·´ ¿¼±°¬ Î»±´«¬·±² îððç ó ëéé ¿°°®±ª·²¹ ¬¸» Ð®±¶»½¬ Ð´¿² ¿²¼ »¬¿¾´·¸·²¹ ¬¸» ¾±«²¼¿®·» º±® Ì×Ú Ò±ò íìò ×º ¬¸» Ý±«²½·´ ¿°°®±ª» ¬¸» ½®»¿¬·±² ±º Ì×Ú Ò±ò íìô ¬¸»² ¬¸» Ð®±¶»½¬ Ð´¿² ©·´´ ¹± ¬± ¿ Ö±·²¬ Î»ª·»© Þ±¿®¼ º±® ½±²·¼»®¿¬·±² ¿²¼ ¿°°®±ª¿´ ¾»º±®» ¹±·²¹ ¬± ¬¸» É·½±²·² Ü»°¿®¬³»²¬ ±º Î»ª»²«» º±® ½»®¬·º·½¿¬·±²ò V. City Manager Recommendation Ì¸» Ý·¬§ Ó¿²¿¹»® ½±²½«® ©·¬¸ ¬¸» Ð´¿² Ý±³³··±² º·²¼·²¹ ¬¸¿¬ Ì×Ú Ò±ò íì ©±«´¼ ¾» ½±²·¬»²¬ ©·¬¸ ¬¸» Ý·¬§ °´¿²ò × «°°±®¬ ¬¸» ½®»¿¬·±² ±º ¬¸· Ì×Ú ©·¬¸ ¬¸» µ²±©´»¼¹» ¬¸¿¬ °»½·º·½ °®±¶»½¬ ½¿² ¾» ®»ª·»©»¼ º±® ½±²·¬»²½§ ©·¬¸ ¬¸» Ì×Ú ¹±¿´ò Ü±«¹´¿ Ê»²¿¾´» ß¬¬¿½¸³»²¬æ Î»±´«¬·±² îððç ó ëéé Ì×Ú Ò±ò íì Ð®±¶»½¬ Ð´¿² Ð´¿²²·²¹ Ü»°¬ò Î»°±®¬ Ý½ Ö¿½±¾ É·²¦»²¦ Û®·½ Ô»ª·¬¬ Û½±²±³·½ Ü»ª»´±°³»²¬ Ü»°¿®¬³»²¬ ïè Òò Ö¿½µ±² Í¬ò Ö¿²»ª·´´»ô É× ëíëìéóëððë êðèóéëëóíïèï TAX INCREMENT FINANCE DISTRICT No. 34 PROJECT PLAN March 9, 2009 Prepared By: Economic Development Agency Finance Division City of Janesville, Wisconsin 18 N. Jackson St. Janesville, WI 53545 CITY OF JANESVILLE TAX INCREMENT FINANCE DISTRICT No. 34 TABLE OF CONTENTS I. WISCONSIN TAX INCREMENT LAW AND PROCESS.................... 1 II. PURPOSE AND OBJECTIVES ..................................................... 2 III. BOUNDARIES OF TIF No. 34 .................................................... 3 IV. EXISTING ZONING AND PROPOSED LAND USES ........................ 5 V. PROPOSED TIF PUBLIC WORKS PROJECTS AND ....................... 8 IMPROVEMENTS VI. DETAILED LIST OF ESTIMATED PROJECT COSTS ......................13 VII. ECONOMIC FEASIBILITY AND METHODS OF FINANCING ...........15 VIII. PROPOSED CHANGES IN ORDINANCES, CODES, & PLANS .......19 IX. LIST OF ESTIMATED NON-PROJECT COSTS ................................20 X. METHODS FOR RELOCATION OF DISPLACED PERSONS ..........20 XI. PROMOTION OF THE ORDERLY DEVELOPMENT OF .................20 THE CITY MAPS 1. Map 1 TIF No. 34 Boundary Map ……………. .................................. 4 2. Map 2 TIF No. 34 Zoning ..................................................... 7 3. Map 3 TIF No. 34 Existing Conditions and Land Use ....................... 8 4. Map 4 TIF No. 34 Proposed Improvements .......................................11 5. Map 5 TIF No. 34 Property Within ½ Mile of Boundary .....................12 LEGAL AND PROCEDURAL 1. Legal Opinion From City Attorney on Project Plan 2. TIF No. 34 Plan Adoption and Creation Resolutions 3. Joint Review Board Resolution ii City of Janesville Tax Increment Finance District No. 34 Project Plan WISCONSIN TAX INCREMENT LAW AND PROCESS I. In the Legislative Declaration that accompanied Wisconsin's Tax Increment Law (section 66.1105), the Legislature found that the, "accomplishment of the vital and beneficial public purposes of (the promotion of industry) Section 66.1101 is being frustrated because of a lack of incentives and financial resources. Consequently, in 1975 the Legislature enacted Wisconsin's Tax Increment Law, "to create a viable procedure by which a city or village, through its own initiative and efforts, may finance projects which tend to accomplish these laudable objectives." The Tax Increment Finance District Law allows a community to use the property taxes generated by new development within a TIF district to pay for the costs of the public improvements needed to stimulate the new development. Fundamental to the TIF law is the concept that new development will benefit a taxing area broader than the municipality in which the development occurs. However, an inequity occurs because the community must finance the entire cost of public improvements needed to facilitate the development, while receiving only a portion of the total taxes generated from the development. The TIF law recognizes that without the city-financed improvements, the development would not have occurred. Thus, the TIF law provides that all property taxes levied on increased property value in a TIF district are retained by the community to finance the costs of improvements within the TIF district. The property value existing at the time of the creation of a TIF district (base value) continues to provide the same level of property tax revenues to other overlying taxing jurisdictions. Once all of the TIF improvement costs have been repaid, the TIF district is dissolved and all taxing jurisdictions can collect taxes levied on the new property value created within the TIF district. State statutes are very specific as to how a TIF district is created. First, a TIF Project Plan containing the information required in Wisconsin Statutes 66.1105 (4)(f) is developed and presented to the City Council. Notice is sent to chief executive officers of all affected taxing jurisdictions informing them of the proposed TIF Project Plan and 1 the required public hearing. Next, the Council refers the proposed TIF Project Plan to the Planning Commission for a formal public hearing. The Commission makes a recommendation on the TIF Project Plan to the City Council. The Council then must pass a resolution adopting the TIF Project Plan and establishing the TIF boundaries. Finally, a Joint Review Board is created with members from the City, school district, county, vo-tech district, and one member-at-large. The Joint Review Board reviews the TIF Project Plan and public hearing comments and approves the creation of the TIF district. This document will meet the statutory requirements for a Project Plan for Tax Increment Finance District No. 34. II. PURPOSE AND OBJECTIVES TIF No. 34 is being created to stimulate continued industrial development at the Southern Wisconsin Regional Airport. With the closing of production at the General Motors plant, the City needs to become more aggressive in seeking to diversify the local economy. The Airport is currently home to several small businesses that are related to the aviation industry. Rock County owns additional land at the Airport that can be leased for new development and expansion projects. In today’s competitive development environment, TIF incentives are often needed to retain existing businesses and facilitate their growth. Similarly, development incentives are generally expected by new companies looking to site a new facility. The TIF District includes the existing businesses and developable land to the north, east, and south of the Southern Wisconsin Regional Airport. While there may be an opportunity to develop other industrial uses east of USH 51, this land is currently located in the Town of Rock. The Project Plan includes language that would allow the expenditure of TIF funds on projects located within ½ mile of the TIF No. 34 boundary. If the land along the east side of USH 51 is annexed to the City for a new development project, the City could use TIF No. 34 funds to provide development incentives within this ½ mile area surrounding TIF No. 34, or could amend the boundary of TIF No. 34 to include the development project. The TIF Project Plan will include activities to provide appropriate development incentives to encourage the retention and growth of existing employers, to attract new 2 industrial businesses and to improve the infrastructure serving this developing area. The implementation of the Project Plan will increase property values in the area as development projects occur and help create and retain jobs in the area. TIF No. 34 will advance the City of Janesville's development objectives and specifically will: A. Promote industry retention and expansion through the continued development of an existing industrial area, thereby retaining jobs and increasing tax base. B. Provide appropriate financial incentives to encourage industrial expansion both for development projects located within TIF No. 34 and for projects located in the City of Janesville and within ½ mile of TIF No. 34. C. Help to diversify the economic base of the community by utilizing the Southern Wisconsin Regional Airport to attract aviation related businesses. D. Reduce the financial risk to the taxpayer by timing the implementation of the Project Plan with the creation of additional property value through industry expansions and negotiating development agreements with tax guarantees for specific projects. E. Generate sufficient new property tax increments from each specific development project within the TIF District to fully repay the City's TIF project expenditures associated with the development project. BOUNDARIES OF TIF No. 34 III. A tract of land located in Section 23-2-12; in the Northwest ¼ of Section 26-2-12; and in the Northeast ¼ of Section 26-2-12, in the City of Janesville, Rock County, Wisconsin, whose boundaries are shown on the attached Map 1 and described as follows: 3 4 Beginning at the Northwest corner of the NW ¼ of said Section 26; thence o S030’30.46”E, 1724.80 feet along the West line of said NW ¼; thence oo N3254’22”E, 437.09 feet; thence N6855’42”E, 748.41 feet; thence oo S4914’24”E, 476.11 feet; thence N4134’34”E, 862.07 feet; thence oo N4008’05”E, 194.71 feet; thence N4855’10”W, 46.74 feet; thence o 04’50”E, 546.98 feet; thence along the arc of a curve to the right whose N41 o radius is 135.00 feet and whose chord bears N8736’25”E, with a chord length of o 52’00”E, 1301.03 feet; thence along the arc of a curve 195.94 feet; thence S45 o to the left whose radius is 690.00 feet and whose chord bears S6744’35”E, with o a chord length of 514.19 feet; thence S8937’10”E, 690.08 feet; thence oo S020’18”E, 119.54 feet; thence N8955’39’76”E, 575.72 feet to the West Right o of Way line of US Hwy 51; thence continuing N8955’39”E, 168.42 feet to the East right-of-way line of US Highway 51; thence in a Northerly direction along the East right-of-way line of US Highway 51approximately 4048 feet to its intersection with the North right-of-way line of Enterprise Dr.; thence in a Westerly direction approximately 107 feet to the Northwest intersection of the North right-of-way line of Enterprise Dr. and the East right-of-way line of US Highway 51; thence in a Northerly direction along the Easterly right-of-way line of the original US Highway 51 approximately 2610 feet to its intersection with the North Line of Section 23, T.2N., R.12E.; thence in a Westerly direction along the North Line of said Section 23 approximately 5255 feet to the Northwest Corner of said Section 23; thence in a Southerly direction along the West line of said Section 23 approximately 5295 feet to the Southwest Corner of said Section 23, said Corner also being the Northwest corner of the NW ¼ of Section 26 and the point of beginning. EXISTING ZONING AND PROPOSED LAND USES IV. The City of Janesville is proposing to create TIF No. 34 to support continued airport related development at the Southern Wisconsin Regional Airport along US Highway 51 on the City’s far south side.The proposed TIF District No. 34 contains 769.9.acres of land including two (2) large parcels of tax exempt land totaling 758.7 acres owned by Rock County and used for the Southwest Wisconsin Regional Airport and 11.2 acres of US Highway 51 street right-of-way. There are 14 parcels of land that have been leased by Rock County to a variety of airport related businesses that have been improved with buildings. Since the land owned by Rock County is tax exempt, the building improvements on the leased lots are taxed as personal property. 5 The proposed TIF district is predominately zoned and used for industrial airport related purposes (See Map 2). The two (2) parcels of land within TIF No. 34 total 757.5 acres of land (99.8%) and are zoned M-1 Light Industrial. A small 1.2 acre (0.2%) triangular shaped portion of one parcel is zoned A-Agricultural. The City Community Development Department may initiate a rezoning request to amend the zoning map to make all of the land within TIF No. 34 zoned M-1 Light Industrial. Such a zoning change will make the zoning boundary consistent with existing parcel lines and place all of the Glen Erin Golf Course within the Conservation Zoning District.. Rock County is also developing an Airport Overlay Zoning District plan which will regulate land uses in proximity to the airport. Land uses permitted under the M-1 Light Industrial zoning classification will be subject to a further review under the Airport Overlay Zoning district to ensure compatibility with airport operations. Generally, land uses closest to the glide path of approaching and departing aircraft are more heavily regulated. No major changes are proposed for land uses which are shown on Map 3. There are three main areas available for airport related development projects within TIF No. 34 – one 37 acre area north of the main runways; one 70 acre area east of the main runways; and one 50 acre area south of the main runways. Vacant land within these areas may be improved with additional roads, water and sewer utilities, parking areas, and taxiways to accommodate expansion of existing business or construction of additional airport related companies.. 6 7 8 PROPOSED TIF PROJECTS AND IMPROVEMENTS V. The TIF No. 34 Project Plan recognizes that the existing industrial uses located in this TIF district may need financial incentives and infrastructure upgrades to continue their growth. Extensions of the internal road network and water/sewer utilities may be needed to develop vacant land for additional airport related businesses. In addition, as activity at the Southern Wisconsin Airport increases, transportation improvements along US Highway 51 such as intersection upgrades to accommodate turning movements may be needed to improve transportation safety. TIF transportation improvements and incentives will facilitate development projects that will increase property values and will generate new tax increments allowing the City to recover its TIF costs. The type, kind, number, and location of all proposed improvements proposed for TIF No. 34 are shown on Map 4 - Improvement Plan. A. Transportation and Utility Improvements Transportation improvements may include the extension of internal roads, taxiways, and paved parking areas to provide access to development sites for both automobiles and planes. Primary access to the Southern Wisconsin Regional Airport is provided from US Highway 51. As activity at the Airport increases, deceleration lanes and intersection improvements may be needed to increase traffic safety. In addition, new facilities will need to be connected to municipal water and sewer services and extensions of utility mains may be needed as growth occurs. The transportation and utility improvements will be phased along with the specific development projects as needed. The design, engineering, and construction costs will be included as TIF expenditures. B. Project Financing and Development Incentives Where a specific industrial development project has been identified, project financing and development incentives may be necessary to ‘close the deal’. Project financing and development incentives may include the direct reimbursement of specified development costs, below market rate loans, forgivable loans, funding for relocation and unique start-up costs like employee training, and/or similar financing programs. Financing may go directly to a development project or to capitalize a 9 revolving loan fund to provide financing assistance for projects throughout the TIF district. The use of project financing and development incentives will be secured by a developer agreement with appropriate guarantees for future property value, property tax payments and job creation to ensure that the cost of the incentive can be recovered through future property tax increments. C. Development Projects within ½ Mile Changes to State Law also allow the expenditure of TIF funds within ½ mile of an existing TIF boundary. While much of the land within ½ mile of TIF No. 34 is currently located outside the City of Janesville corporate limits, the City does have a boundary agreement with the Town of Rock, and land surrounding the airport will be annexed to the City of Janesville as development occurs. Where industrial development projects occur on land annexed to the City within this ½ mile boundary, funding from TIF No. 34 may be used to support the development project. If the development project is contiguous to TIF No. 34, the City may propose a boundary amendment to the TIF No. 34 Project Plan. The development projects located within ½ mile of proposed TIF No 34 may need project financing and/or development incentives to maintain employment levels or to undertake future expansion projects. (See Map 5). D. Administrative Costs and Marketing Costs In order to attract development opportunities within TIF No. 34, it may be necessary to implement a marketing program. Marketing activities may include the development of brochures, photographs, topography profiles and maps for use with industry prospects. Marketing may also include architectural and feasibility studies. Once the marketing materials are available, a direct mail program may be implemented to attract new aviation related development projects. Marketing activities may also include the payment of real estate commissions where a private “buyer’s broker” facilitates a new development in TIF No. 34. The TIF No. 34 project plan includes the cost incurred for administrative, professional, organizational, and legal services related to the creation and administration of the TIF district. Direct engineering costs shall be charged to the 10 11 12 specific construction projects within the TIF District. Direct legal and planning costs will be charged as administrative costs. Finally, the cost of the three TIF audits required under Wisconsin Statutes ss.66.1105 and the Department of Revenue’s TIF review fee will be included as TIF project costs. DETAILED LIST OF ESTIMATED PROJECT COSTS VI. In order to determine the economic feasibility of the proposed TIF District No. 34, total project costs must be estimated and compared to the projected tax increments that will be generated by the new development in the TIF district. Based on 2008 construction costs, TIF No. 34 improvement costs are estimated as follows: A. Transportation and Utility Improvements $187,500 B. Project Financing & Develop. Incentives $475,000 C. Development Projects within ½ Mile $187,500 D. Administration & Marketing $ 42,000 Total Cost of Improvements $892,000 The estimated cost of TIF expenditures is $892,000. Since the project costs may be incurred over the first fifteen (15) years of the TIF district, while TIF revenues will be collected over a maximum of twenty (20) years, the City will have to finance any negative TIF fund balance through interfund borrowing. Based on conservative projections, debt service and interfund borrowing will add an additional $250,485 in TIF financing costs, bringing the total estimated TIF No. 34 project costs to $1,142,485. All project costs and interfund borrowing estimates are based on the most current cost data available in January, 2009 and may be adjusted within the total amount shown without modification or amendment of this TIF No. 34 Project Plan. All of the TIF No. 34 project costs except debt service and interfund borrowing will be incurred during the first fifteen years of the TIF District. Table No. 1 shows the schedule and timing of the proposed expenditures. The actual timing of expenditures will be contingent on the commitments from industries expanding their facilities and 13 guaranteeing a minimum property value that will generate sufficient tax increments over the life of the TIF district to cover the TIF project costs. Table No. 1 Tax Increment District No. 34 Summary of TIF Costs By Year Year Type of Cost Cost 2009 Development Incentives, Administration $110,100 2010 ½ Mile Projects, Marketing & Admin. $ 66,850 2011 Development Incentives, Administration $159,000 2012 Transportation, Utilities, ½ Mile Projects, $ 191,850 Marketing & Administration 2013 Development Incentives, $118,000 Marketing & Administration 2014 ½ mile Projects, Marketing Admin., $63,850 2015 Development Incentives, Administration $115,000 2016 Transportation & Utilities, Administration $67,350 Total Cost of Improvements 892,000 Debt Service and Interfund Borrowing $ 250,485 Total Estimated TIF No. 34 Costs $ 1,142,485 -------------------------------------------------------------------------------------------------------- Prepared By: Economic Development Agency 14 ECONOMIC FEASIBILITY AND METHODS OF FINANCING VII. A. Economic Feasibility Analysis Under Wisconsin's Tax Increment District Law (ss. 66.1105), 100% of the property taxes levied against new property value created within a TIF district is retained by the City to pay for improvement costs that were incurred to attract the new development. Implicit in the law is the concept that without the improvements, the attraction of new development, the creation of new jobs, and the expansion of the tax base would not occur. The Wisconsin TIF law allows the City fifteen (15) years in which to make the improvements needed to stimulate and support development. The property tax increments generated by the new development are retained by the City until all TIF costs are paid, or up to a maximum of five (5) years after the last expenditure is made. In no case shall the TIF district have a life longer than twenty (20) years. The City of Janesville's Tax Increment District No. 34 will be created by Council action in March, 2009. Therefore, all TIF project improvements must be completed by March, 2024. The taxes on any increased property value in the district between 2010 and 2028 will be retained by the City to repay the TIF project costs. TIF No. 34 will be dissolved when all TIF project costs are repaid, or in March, 2028 whichever comes first. In order to determine the economic feasibility of the proposed TIF district, estimated TIF costs must be compared to projected TIF property tax increments. Where tax increments exceed TIF costs over the twenty (20) year life of the TIF district, the TIF district is considered economically feasible. The City of Janesville has made conservative assumptions about the future to determine the economic feasibility of TIF No. 34. All TIF costs related to development projects are incurred according to the schedule shown in Table No. 1. TIF property value increases for are shown for development projects that may occur adding $4,500,000 in new value between 2009 through 2016. 15 The actual pace of development may be different than expected. Where possible, the expenditure of TIF monies will be phased and linked to known development projects. The City will enter into binding contracts with the developers locating projects within TIF No. 34 that will guarantee the minimum amount of investment needed to fully amortize all TIF costs associated with each project. The th overall TIF District should be able to recover all costs by the year 2025, the 17 year of the TIF district. The equalized value property tax mill rate levy is projected to increase 2.5% annually due to inflation. This assumption is conservative since equalized property values have increased an average of 5.35% over the past seven (7) years. The equalized value mill rate is projected to decrease by 1.0% per year. This too, is a conservative assumption given the rapid increase in municipal costs for health care and petroleum, and the increasing cost of debt service for major capital projects. Based on these assumptions, the $4,500,000 in new property value generated by development within TIF No. 34 will create sufficient new property tax increments to repay all planned TIF project costs. The City will limit the implementation of TIF expenditures until the actual levels of new property value are known and increases in property tax increments are guaranteed through developer agreements or already completed projects. Table 2 shows TIF costs including financing of $1,142,485. If $4,500,000 of new property value is created as projected in Table 2, the TIF district will generate a total of $1,470,363 in property tax increments over the 20 year life of the district. Since property tax increments are projected to exceed TIF costs by $327,878 TIF No. 34 is found to be economically feasible. Projected TIF revenues will cover TIF costs within 17 years and the City projects that TIF No. 34 may be dissolved by 2025. 16 17 B. Methods of Financing Wisconsin Statutes provide several methods of financing the cost of improvements in tax increment districts. For smaller amounts, financing through the general fund may be feasible. Transfers can be made from the municipal general fund account into the TIF expenditure account to cover the cost of TIF improvements. This method of financing avoids the interest cost associated with municipal borrowing. However, since the General Fund balance is reduced, the General Fund loses interest income, an interfund borrowing cost is charged to the TIF account. State law also provides for municipal borrowing. Community borrowing is divided into two forms -- that subject to a statutory limitation and borrowing not subject to limitation. Possible funding sources include: 1. General Obligation Borrowing - Is sometimes referred to as a local promissory note from a bank, State Trust Fund, or other lending institution. This form of borrowing requires little effort or legal costs and works well for smaller sums. This sort of borrowing is included in the municipal borrowing limitation. 2. General Obligation Bonding – Is a irrepealable property tax obligation of the community. General obligation bonds can often be sold at lower interest rates than other forms of borrowing. However, there are additional regulations and requirements that make G.O. Bonds suitable for larger projects. G.O. Bonds are included in the municipal borrowing limitation. 3. Mortgage Revenue Bonds - Are repaid through the revenue generated by a public utility like a water or sewer utility. Revenue bonds also have regulatory and legal requirements that make them suitable for larger project costs. Since revenue bonds do not pledge the community's taxing capacity, they are not subject to a municipal borrowing limitation. 4. Federal and State Grant or Loan Programs - Like Community Development Block Grants or State Transportation aids are sometimes available to supplement local funding sources. However, the amount of grant dollars available is limited and state and federal funding is uncertain given the need to balance budgets. 18 The actual method of financing specific TIF projects will be determined by the City based on the current fiscal condition of the City, anticipated non-TIF capital needs, municipal borrowing rates and terms, and the amount of financing needed. Where general obligation borrowing is used, TIF financing costs have been calculated assuming financing over ten (10) years, with equal principal payments. The City will not proceed with any phase of the planned public improvements until a developer or business is committed to construct a new building or renovate an existing building with a value sufficient to generate the property tax increments needed to cover the cost of the improvements. Therefore, the actual City expenditures in TIF No. 34 may be substantially different. C. Additional Economic Benefits The economic feasibility analysis has shown that the property tax increments will be sufficient to cover all TIF project costs over the twenty (20) year life of the TIF district. The development of TIF No. 34 will facilitate development projects, increase property values, and create new jobs in the City of Janesville. These jobs will help diversify the local economy and the increased payrolls will have a positive multiplier effect in the trade and service sectors. PROPOSED CHANGES IN ORDINANCES, CODES, & PLANS VIII. The proposed TIF No. 34 project plan is in conformance with the City of Janesville's present zoning ordinance, with the City's Industrial Development Plan and the General Development Plan. The proposed Project Plan is also consistent with the City’s draft 2008 Comprehensive Plan which is going through the public review process. All development in TIF No. 34 will have to conform to the State Building Codes and will be subject to the City's permitting and inspection procedures. The proposed land uses will also have to conform to the planned Airport Overlay Zoning District. The TIF No. 34 project plan conforms to all relevant State and local ordinances, plans, and codes, thus, no changes to the existing regulations are proposed or needed. 19 LIST OF ESTIMATED NON-PROJECT COSTS IX. All of the public improvements and other project costs included in this project plan are TIF eligible costs as defined in Wisconsin Statutes ss. 66.1105, the Tax Increment District Law. Some expenditures are envisioned outside the boundaries of but within ½ mile of the proposed TIF district. These expenditures are now allowed by recent changes to Wisconsin’s TIF law. Where possible, the City will use a combination of federal and state funding sources to construct the planned transportation improvements. The use of these federal and state funding sources will reduce the portion of the improvement cost allocated to the TIF district. METHODS FOR RELOCATION OF DISPLACED PERSONS X. The TIF No. 34 Project Plan does plan land acquisition for future industrial site development. There should not be any displacement of persons or business needing relocation assistance. If, for any reason, relocation should be necessitated by the City's involvement in the implementation of this Project Plan, it will be undertaken pursuant to Wisconsin Statutes Section 32.19 and 33.195, and according to a Relocation Plan, as approved by the Wisconsin Department of Commerce. Where federal dollars are used for the planned transportation improvements, federal relocation laws will be followed as well. PROMOTION OF THE ORDERLY DEVELOPMENT OF THE CITY XI. The creation of TIF No. 34 and the implementation of the projects in the TIF Project Plan will promote the orderly development of the City of Janesville by encouraging the expansion of existing industries already served by municipal transportation and utility infrastructure.Such expansion projects reduce the need to purchase and develop additional farmland into industrial parks. 20 By promoting development of aviation related industries by the Southern Wisconsin Regional Airport, the community can more fully realize the benefits of the investment in the airport infrastructure and increase aviation related activity that will improve the long term financial stability of this important transportation facility. By providing financial incentives to stimulate private development projects, the City is able to ensure that economic growth continues to occur, thus offsetting the inevitable loss of jobs and incomes when economic conditions force the closure of other employers in the community. By utilizing the provisions of the Tax Increment Finance Law, the City can increase property values through development projects that result in increased tax base. TIF No. 34 will add to the tax and employment base of the community, and will generate positive secondary impacts in the community through increased local disposable incomes. 21 CITY ATTORNEY’S OFFICE MEMORANDUM January 22, 2009 MEMORANDUM TO: J. Douglas Venable, Director of Economic Development FROM: Wald Klimczyk, City Attorney RE: Legal Opinion -- T.I.F. No. 34 Project Plan Sec. 66.1105(4)(f), Wis. Stats., of the Tax Increment Financing Law mandates that the project plan for a proposed tax increment financing district "include an opinion of the city attorney or an attorney retained by the city advising whether the plan is complete and complies with this section.” You have asked me to review a certain proposed “Tax Incremental Finance District No. 34 Project Plan,” dated March 9, 2009, for Tax Increment Finance (T.I.F.) District Number 34 and determine if, in my opinion, it is complete and complies with the requirements of Wisconsin's T.I.F. Law. This memorandum constitutes my legal opinion. Sec. 66.1105(4)(f), Wis. Stats., sets forth those components of a T.I.F. project plan which are required by state law. They are as follows: 1. A statement listing the kind, number, and location of all proposed public works or improvements within the district or, to the extent provided in Section 66.1105(4)(f) 1. k, Wis. Stats., outside the district; 2. An economic feasibility study; 3. A detailed list of estimated project costs; 4. A description of the methods of financing all of the estimated projected costs; 5. The time when the costs or monetary obligations related thereto are to be incurred; J. Douglas Venable January 22, 2009 Page 2 6. A map showing the existing uses and conditions of the real property in the district; 7. A map showing the proposed improvements and uses in the district; 8. Proposed changes of: a. Zoning ordinances. b. The master plan, if any. c. The master map, if any. d. Building codes. e. City ordinances. 9. A list of estimated non-project costs; 10. A statement of proposed methods for the relocation of any person(s) to be displaced; and 11. How the Tax Increment Financing District promotes the orderly development of the City. I have reviewed proposed “Tax Incremental Finance District No. 34 Project Plan,” dated March 9, 2009, for Tax Increment Finance (T.I.F.) District Number 34, prepared by the City of Janesville Economic Development Agency and Finance Division. It is my legal opinion that said project plan as prepared by the Economic Development Agency is complete and does comply with Section 66.1105(4) (f), Wis. Stats. According to the terms of the above cited statute, this legal opinion should now become the final component of that project plan amendment. Wald Klimczyk City Attorney wk cc: Jean Ann Wulf, City Clerk-Treasurer Resolution No. 2009 - 577 RESOLUTION APPROVING THE PROJECT PLAN AND CREATING TAX INCREMENT FINANCE DISTRICT No. 34 WITHIN THE CITY OF JANESVILLE ROCK COUNTY, WISCONSIN WHEREAS, the Plan Commission has held a public hearing on the proposed creation of Tax Increment District No. 34 and the proposed boundaries thereof, and on the proposed Project Plan for Tax Increment District No. 34 which is attached hereto by reference; and WHEREAS, the Chief Executive Officer of Janesville School District, Rock County Board, Blackhawk Technical College, and the other entities having the power to levy taxes on the property located within the proposed Tax Increment District No. 34 have been notified pursuant to Section 66.1105 (4) (a) and (e), Wisconsin State Statutes; and WHEREAS, the Joint Review Board required by Section (4m) of Chapter 66.1105 of Wisconsin State Statutes has been convened; and WHEREAS, the City Attorney has determined that the Project Plan for TIF No. 34 is complete and complies with Wisconsin Statutes; and WHEREAS, the adoption of the Project Plan and the creation of TIF No. 34 by the City of Janesville, pursuant to the Tax Increment Law finds that: A. There is hereby created a Tax Increment District to be known as Tax Increment District No. 34, in the City of Janesville, as described in the above referenced and herein incorporated TIF No. 34 Project Plan. B. Such TIF District No. 34 is created with an effective date of January 1, 2009. C. Not less than 50% of the area of real property within such TIF District No. 34 is suitable for industrial development and that TIF No. 34 shall be classified as an “industrial” district for the purposes of Section 66.1105 (4) (gm) 6. D. The improvement of such area by implementing the TIF No. 34 Project Plan is likely to significantly enhance the value of substantially all other real property in such district and the surrounding neighborhood. Resolution 2009 – 577 Page 2 E. The proposed Project Costs relate directly to promote industrial development consistent with the purpose for which the TIF District is created under Sub-section 66.1105. (4) (a). F. The aggregate equalized value of taxable property within proposed TIF District No. 34 plus the value increment of all existing Janesville TIF Districts does not exceed 12% of the total equalized value of all property within the City of Janesville. G. Such Project Plan for TIF District No. 34, City of Janesville is economically feasible. H. The Project Plan for TIF District No. 34 is in conformance with the City’s Plans. BE IT FURTHER RESOLVED, that the Common Council of the City of Janesville approve the district boundaries as described in the attached Project Plan, and further, approve the Project Plan for TIF District No. 34 pursuant to the provisions of Section 66.1105 of the Wisconsin State Statutes. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner Loasching Eric J. Levitt, City Manager McDonald Rashkin ATTEST: Steeber Truman Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: City Attorney Proposed by: City Manager Prepared by: Economic Development Director Proposed by: City Manager Prepared by: Economic Development Director