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Full Agenda Packet CITY OF JANESVILLE CITY COUNCIL MEETING AGENDA MONDAY, March 9, 2009 7:00 P.M. 1. Call to Order and Pledge of Allegiance. 2. Roll Call. 3. Minutes of City Council meetings: “C” A.Regular meeting of February 23, 2009. 4. Licenses; and Recommendations of the Alcohol License Advisory Committee. (Refer to separate agenda.) “C” 5. Special recognition: Action on a proposed resolution in commendation of Daniel W. Wakefield’s service to the City of Janesville. (File Res. No. 2009-584) OLD BUSINESS 1. Requests and comments from the public regarding items on the Agenda not requiring a public hearing. 2. Requests and comments from the public on matters which can be affected by Council action. 3. Continued public hearing and action on a proposed ordinance adopting the City of Janesville Comprehensive Plan. (File Ord. No. 2009-431) 4. Second reading and public hearing on a proposed ordinance rezoning property within the 4700 block of Milton Avenue from Agriculture to B2, Community Shopping District and Conservancy. (File Ord. No. 2009-429) ----------------------- “C” – This designation indicates an item that the City Council will take up under a Consent Agenda. City Council Agenda – March 9, 2009 Page 2 OLD BUSINESS (CONTINUED) 5. Action on a proposed resolution approving the project plan for and establishing the boundaries for Tax Increment Finance District No. 34 at the Southern Wisconsin Regional Airport. (File Res. No. 2009-577) NEW BUSINESS 1. Council direction on transit bus fares. 2. Action on a proposed resolution authorizing the filing of an application with the Wisconsin Department of Commerce for Community Development Block Grant-Emergency Assistance Program. (File Res. No. 2009-585) 3. Introduce and schedule a public hearing on a proposed charter ordinance amending the appointment provisions of the Plan Commission, Board of Review, Library Board, and Zoning Board of Appeals and creating a charter ordinance for the Community Development Authority to require appointments to be made by the Common Council following consultation with the Citizens Advisory Committee on Appointments in amended Sections 2.20.010, 2.24.010, 2.28.010, 2.58.020, and newly created Chapter 2.26. (File Charter Ord. No. 2009-007) 4. Matters not on the Agenda. 5. Consideration of a motion to convene into closed session pursuant to Wisconsin Statute Section 19.85 (1) (e), for the purpose of deliberating or negotiating the purchasing of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session, specifically setting the negotiation/bargaining terms and conditions for acquiring certain real property for redevelopment and/or public purposes. PROCEEDINGS OF THE CITY COUNCIL CITY OF JANESVILLE, WISCONSIN REGULAR MEETING FEBRUARY 23, 2009 VOL. 59 NO. 45 Regular meeting of the City Council of the City of Janesville held in the Municipal Building on February 23, 2009. The meeting was called to order by Council President Loasching at 7:00 PM. Council President Loasching led the Council in the Pledge of Allegiance. Present: Council President Loasching, Councilmembers Brunner, McDonald, Rashkin, Steeber, Truman, and Voskuil. CONSENT AGENDA Minutes of the regular meeting of February 9, 2009. Minutes of the closed session of February 9, 2009. Licenses and Recommendations of the Alcohol License Advisory Committee. Financial statement for the month of December 2008. Authorization for the Administration to accept a liability claim from Jeff Hunt in the amount of $6,450. Council President Loasching stated that all items on the consent agenda would be approved if there were no objections. There were none. Special recognition: Action on a proposed resolution in commendation of Kevin M. Murray’s 28 and ½ years of service to the City of Janesville. Councilmember Steeber moved to adopt said resolution, seconded by Councilmember Brunner and passed unanimously. (File Res. No. 2009-575) OLD BUSINESS 1. Requests and comments from the public regarding items on the agenda not requiring a public hearing. Billy Bob Grahn, 152 S. Locust St., Mardel Wien, 1202 N. Washington St., Kelly Kaiser, 2307 Plymouth Ave., Cheryl Blohm, President of the Janesville Figure Skating Club, Andreah Briarmoon, 339 S. Locust St., Debra Swanson, 1514 Mineral Point Ave., Neil Deupree, 419 S. Franklin St. all spoke against the lease for Wisconsin Hockey Partners (Old Business #5); Harold Hanouska, 4835 Bingham Rd., Town of Harmony, spoke against the Comprehensive Plan (New Business #2); Rich Gruber, 3212 Orion Dr., spoke in favor of suspending City Ordinance 2.04.090 (New Business #1); Margaret Puleva, and Julie Backenkeller, 719 N. Grant Ave., spoke against suspending City Ordinance 2.04.090 (New Business #1). 2. Requests and comments from the public on matters which can be affected by Council action. Andreah Briarmoon, 339 S. Locust St., stated the City Attorney should not interpret ordinances and the intent of the ordinances. 3. A proposed final resolution for Public Works Projects included in Bid Schedule “A”-2009 received a public hearing. Joyce Archer, 22 N. Oakhill Ave., stated her curb and gutter was repaired in 1992 but that she is happy with the recommended credit and the customer service she received. The public hearing was closed. Councilmember Steeber moved to adopt said resolution, seconded by Councilmember Voskuil and passed unanimously. (File Res. No. 2009-581) 4. Award of Contracts 2009-1 (street surfacing), 2009-2 (landfill phase 3 construction), and 2009-3 (intermittent curb replacement) for Public Works Bid Schedule “A”-2009. Councilmember Steeber moved to approve said contracts as follows: Contract 2009-1 Rock Road $1,752,170.16 Contract 2009-2 Iverson & Sons, LLC $ 774,670.45 Contract 2009-3 Yeske Construction Co. $ 691,888.75 The motion was seconded by Councilmember Rashkin and passed with the following vote: Aye: Council President Loasching, Councilmembers Brunner, Rashkin, Steeber, Truman, and Voskuil. Nay: Councilmember McDonald. 5. Action on a proposed resolution authorizing the City Manager to execute a use agreement with the Wisconsin Hockey Partners, LLC and provide funding for Ice Center modifications up to $200,000. Councilmember Truman moved to table said resolution for two weeks, seconded by Councilmember McDonald. Councilmember Truman offered a friendly amendment to table until such time that all requested materials were available. The friendly amendment was accepted by Councilmember McDonald. The motion as amended passed unanimously. (File Res. No. 2009-569) NEW BUSINESS 1. Motion to suspend City Ordinance 2.04.090 requiring two separate readings of an ordinance adopting the City of Janesville Comprehensive Plan. Councilmember Steeber made a motion to suspend City Ordinance 2.04.090, seconded by Councilmember Voskuil. The motion failed by the following vote: Aye: Councilmembers Brunner, Steeber, Truman, and Voskuil. Nay: Council President Loasching, Councilmembers McDonald and Rashkin. 2. The proposed City of Janesville Comprehensive Plan ordinance was introduced and received a public hearing. Julie Backenkeller, 719 N. Grant Ave., Alex Cunningham, 623 Court St., and Margaret Puleva, W9539 McFarland Rd., Darien, spoke against the plan; Neil Duepree, 419 S. Franklin St., stated there has been a lot of public input but there is no urgency to pass within the next two weeks; Andreah Briarmoon, 339 S. Locust St., stated there was not enough citizen input; Doug Marklein, 3919 Dorchester Dr., Dan Cunningham, representing Forward Janesville, and Scott Beaver, 921 Thornecrest Dr. spoke in favor of the plan. The public hearing was closed. Councilmember President Loasching scheduled a second reading and continued public hearing on March 9, 2009. (File Ord. No. 2009-431) 3. Action on a proposed resolution granting easement rights to ANR Pipeline company for construction of a natural gas transmission line across City-owned property. Councilmember McDonald moved to adopt said resolution, seconded by Councilmember Steeber and passed unanimously. (File Res. No. 2009-580) 4. Action on a proposed resolution authorizing the City Administration to expend additional funds in response to the 2008 flood event in the City of Janesville. Councilmember Steeber moved to adopt said resolution, seconded by Councilmember Brunner and passed unanimously. (File Res. No. 2009-583) 5. Matters not on the agenda. Councilmember Truman requested a study session with the Codes Department to discuss ordinance enforcement and requested more proactive enforcement of snow emergency ordinances. Councilmember McDonald asked Administration to look into an unshoveled sidewalk at 202 St. Lawrence. Councilmember Voskuil stated a fire hydrant was damaged on Milwaukee St., between Lexington Ave. and Pontiac Dr. 6. Councilmember Steeber moved to adjourn, seconded by Councilmember Truman and passed unanimously. There being no further business, Council adjourned at 11:14 PM. These minutes are not official until approved by the City Council. David T. Godek Deputy Clerk-Treasurer JANESVILLE CITY COUNCIL LICENSE AGENDA MARCH 9, 2009 RECOMMENDED A. ELECTRICIAN – ORIGINAL Timothy Willms 809 N Britton Road, Union Grove, WI 53182 B. ORIGINAL CLASS “B” BEER LICENSE KEALY’S KAFE #2, LLC D/B/A KEALY’S AIRPORT KAFE Matthew Kealy 1716 W Airport Road C. ORIGINAL CLASS “C” WINE LICENSE KEALY’S KAFE #2, LLC D/B/A KEALY’S AIRPORT KAFE Matthew Kealy 1716 W Airport Road 1 HUMAN RESOURCES DIVISION MEMORANDUM March 4, 2009 TO: City Council FROM: Susan Musick, Human Resources Director SUBJECT: Retirement Recognition – Daniel W. Wakefield Executive Summary At the City Council meeting of March 9, 2009, the following retirement commendation will be considered under the consent agenda: 1. Daniel W. Wakefield for almost thirty-four years of service with the City of Janesville (File Resolution Number 2009-584) ? Daniel will be attending the March 9, 2009 Council meeting. ? Daniel began working for the City of Janesville on April 23, 1975, as a Laborer in the Public Works Streets Department. In 1978, he was promoted to the position of Sanitary Equipment Operator and in 1997 he was reclassified as an Equipment Operator. ? Daniel’s retirement date is March 10, 2009. Recommendation The City Administration recommends adoption of File Resolution 2009-584. 1 RESOLUTION NO. 2009-584 Whereas, Daniel W. Wakefield is retiring from City of Janesville employment after having diligently served the people of the City of Janesville and the community for almost thirty-four years; retiring as an Equipment Operator for the City of Janesville Public Works Division; and Whereas, during Daniel W. Wakefield’s employment with the City of Janesville, he provided exemplary professional service and demonstrated conscientious devotion to the duties of his position, which he performed with competence, sincerity, honesty, and dedication; and Whereas, it is desired that such commendable service to the City of Janesville be properly recognized; Now, Therefore, Be It Resolved that the people of the City of Janesville, through the City Council, do express their grateful appreciation to Daniel W. Wakefield for his almost thirty-four years of loyal public service. th Dated this 9 day of March, 2009. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner Eric J. Levitt, City Manager Loasching ATTEST: McDonald Rashkin Jean Ann Wulf, City Clerk-Treasurer Steeber APPROVED AS TO FORM: Truman Voskuil City Attorney Proposed by: Human Resources Prepared by: Human Resources FIRE DEPARTMENT MEMORANDUM March 2, 2009 TO: City Council FROM: Gerry Luiting, Deputy Fire Chief SUBJECT: Requests and comments from the public regarding the Agenda not requiring a public hearing – Mercy Health System Donation Rich Gruber, Vice President of Mercy Health System, would like to formally present the Janesville City Council and Fire Department with a donation of five new monitor/defibrillators. Deputy Chief Gerry Luiting will be present to accept this donation on behalf of the Fire Department. Mercy Health System has provided the Fire Department with five new ZOLL E-Series monitor/defibrillators, a donation worth nearly $100,000. The machines went into service on January 23 and are all capable of 12-lead ECG administration. The machines can transmit 12-lead ECGs to hospitals, which international guidelines now recommend for out-of-hospital use to help reduce time to perfusion in S-T segment elevation myocardial infarction (STEMI) patients. Four citizens have already benefitted from the capabilities of the machines and the STEMI program. A feature of these machines also instantly provides paramedics with technology to see how well they are performing the rate and depth of CPR chest compressions. Another feature allows for “See-Thru CPR”, which enables the paramedics to minimize interruptions in CPR that effect resuscitation success. This donation is a critical component to enhanced cardiac care for the citizens of Janesville and the Fire Department would like to thank Mercy Health System for their generous donation. About Sudden Cardiac Arrest Sudden cardiac arrest (SCA) claims more than 1 million lives each year worldwide. It is the leading cause of unexpected death in the world and strikes without warning. Currently, only about 5 percent of victims survive; 95 percent will die from SCA. SCA is an abrupt disruption of the heart’s function, which causes a lack of blood flow to vital organs. CPR and a defibrillating shock are essential to helping restore the heart’s normal rhythm and circulation. Cc: Eric Levitt, City Manager Jay Winzenz, Director of Administrative Services COMMUNITY DEVELOPMENT DEPARTMENT March 3, 2009 TO: City Council FROM: Bradley A. Cantrell, Community Development Director SUBJECT: Public Hearing and action on an ordinance adopting the City of Janesville Comprehensive Plan (Ordinance No. 2009-431) RECOMMENDATION Following the public hearing and review of the Janesville Comprehensive Plan, the Community Development Department recommends that the City Council support the following motions: 1. A motion to approve the following text changes including: a. Changes to Volume 2 as listed in Exhibit A as recommended by the Plan Commission, b. Incorporating the guiding principles of the Eco-municipality in the Plan, c. Changing policy on Page 73 to read “Work with neighboring towns and Rock County to consider implementing a Purchase or Transfer of Development Rights program in areas appropriate and designed for long term agricultural uses.” d. Changes to Volume 1 and 2 as listed in Exhibit B. 2. A motion to remove the urban reserve designation from the Future Land Use Map. 3. A motion to approve the City of Janesville Comprehensive Plan by adopting Ordinance 2009-431. City Manager Recommendation The City Manager recommends approval. I understand that the changing local and national economy presents concerns for the plan, however I believe these changes can be addressed in the future as I see this as a living document. Overall, there are critical areas that are addressed in ways that present a good guide to the future. Finally, one area of concern has been farmland preservation. The plan takes some steps to address farmland preservation and provides policy alternatives as possible future steps such as whether the City would support purchase of development rights. 1 If the Council would like to see changes and delay the vote, I request that specific areas to be reviewed be addressed in any motion to continue the review of the Comprehensive Plan. Request Attached for Council information is the previous memorandum distributed to you on this matter. Also forwarded to you was an updated copy of Volume 1 of the Plan. An early draft version was previously submitted to you by mistake. This version is the most up-to-date and in addition to reformatting adjustments includes additional narrative on air quality in the area, updated information on the wastewater and water utility sections which reference long range facility plans currently under development, and additional information in the Economic Development section derived from the economic summit. On February 23 the City Council held a public hearing and reviewed the draft comprehensive plan. At the hearing individuals spoke in favor and against the adoption of the plan. The primary concerns raised in opposition included: employment data and references in the Plan which were no longer relevant in light of the closure of the General Motors plant, the estimated population increase and land area projected over the next 20 to 25 years, and the potential future development of prime farmland. The following address the concerns raised at the City Council meeting. Concern about employment data and references in the Plan which are no longer relevant in light of the closure of the GM plant. City staff and the consultant have prepared a number of text changes to Volume I and 2 of the Plan which address the closure of the General Motors plant and its associated suppliers. (See Exhibit B.) The changes update information in both sections and recognize the GM closure will affect the percentage of the labor force employed in manufacturing and the overall labor force participation rates. At the time of Plan preparation no new information except the 2000 census was available on local employment distributions. As employment data is obtained in the 2010 census this information can be utilized to update these forecasts. Concern about the estimated population increase and land use projected over the next 20 to 25 years. The Plan makes population and land use projections based on recent trends and a set of informed assumptions. Those assumptions take into account what has been experienced in reality over an extended time period, including economic fluctuations. The projections serve as guidelines to help ensure that the Plan remains relevant and that decisions are cost-effective and forward-looking. The Plan is not intended or designed to make exact predictions about population growth or future land use; this 2 is impossible due to the dynamic nature of the City, the region, and external influences such as the economy. The population projections were based on the past 15 year trend data for the city. We are projecting that the city within the next 20 to 25 years will grow by approximately 20,000 people or 1.15% per year. Historically the city has gone through different types of growth cycles with some decades of slow to moderate growth (1980’s) while other decades have experienced a faster pace (1970’s and 1990’s). If the city does not realize this population projection in 2030 then the life of the Plan will be extended beyond that horizon. In addition, State law now requires that all communities update their Plan within 10 years following Plan adoption. Thus, if necessary, the projections can be revised at that time. The Comprehensive Plan identifies potential growth areas for the City, along with the types of land uses that would be appropriate in future growth areas. The Plan does not compel or mandate that growth to occur or dictate when and if it will ever occur. In fact, the Plan states that “Not all land shown for development on Map 1 (the Future Land Use Map) will be immediately appropriate for rezoning and other land use approvals following the adoption of this plan. Given service demands and other factors, careful consideration to the amount, mix and timing of development to keep it manageable and sustainable is essential. The City advocates the phased development of lands that advance the vision of the community and can be efficiently served with transportation, utilities, public services, and other community facilities.” This is the basis upon which future decision making is expected to occur as advocated in the Plan. The Plan functions as a guide by which the City Council, Plan Commission and staff will make and advise decisions. In order for the Plan to become realized, the City will need to take subsequent actions – like updating its zoning and subdivision ordinances. These ordinances were originally adopted in the late 1970’s, early 1980’s and have become dated. The Future Land Use Map is not a zoning map, but instead advises direction on future zoning decisions. The City Council and Plan Commission will retain the ability to make discretionary decisions that are guided by the Plan, but also consider other factors mentioned in the Plan such as timing, availability of services and utilities, and quality of development. The Plan’s Future Land Use Map illustrates City growth areas derived not only on the basis of demand projections but also in accordance with understandable, recognized, and logical boundaries, such as the planned west-side bypass, environmental corridors on the south and east side of the City, City of Milton, and Henke Road. As a result, the mapped growth areas do not exactly “match” the land use projections. Precisely matching land use projections would create boundaries that would be more arbitrary and less logical, fail to provide the degree of flexibility and/or responsiveness 3 to shifting market demand, and ultimately undermine the City’s ability to grow in a logical and cost-effective manner. Concern about the development of prime farmland The Plan acknowledges the importance of the preservation of agricultural land. The Plan includes a chapter entitled “Agricultural Resources” that includes a broad range of policies and programs. The policies are intended to support and preserve the region’s valued agricultural resources, including: ? Enhance regional economies – biobased products, food - based on regional agricultural inputs (thus creating more of a market for ag products and farmland preservation); ? Promote compact urban development through encouraging more efficient development to occur in the City, stimulating urban infill development, limiting rural sprawl in agricultural areas, and ? Exploring a TDR or PDR program with the County. ? Land Use Policies directing city development away from the most productive soils, and seeking to minimize rural residential development which tends to be much less efficient than urban development. The Plan does not advocate for preventing development in the City as a viable strategy to preserve agricultural land because: ? This is not realistic, desirable or sustainable. The City is positioned along a key Midwest growth corridor and proximity to Madison, Milwaukee and Chicago suggests that the City and region will continue to grow. Communities that are positioned for growth that try to shut it down tend to have more wild fluctuations and have a more difficult time sustaining a managed growth approach. ? Demand for development in the region will remain regardless of whether it is City or Town development. If development does not occur in the City and in the rural area, that development is likely to occur at an overall density of 1 home per every 5 acres (versus the average City density of 4 homes per acre). The City would be able to accommodate its projected number of new households on about 2,100 acres (3.3 square miles) whereas if that development did not occur in the City, but in the Towns that would occupy 43, 780 acres (68 square miles). Therefore, development in the City is 20 times more efficient, demonstrating that consumption of land for urban development is significantly less than would otherwise occur in rural settings. ? There is an uneven commitment among the Towns surrounding Janesville for farmland preservation. While the Town of LaPrairie is committed to preserving agricultural land, other towns adjacent to Janesville (Harmony and Janesville) have planned substantial area for growth and development and have an active and recent history of approving such development. The Plan 4 recognizes that if future growth on the City’s fringe is to occur, it should be developed in the City at urban densities. ? Preventing development will negatively impact the economy of the City. If the City wants to promote economic growth, it will need to have appropriate places to accommodate that growth. The Plan does not promote development at any cost, but it does designate a number of appropriate locations for residential and business growth, including infill development sites and redevelopment. For some businesses, redevelopment or infill sites will not be the best option. The Plan is designed to accommodate appropriate economic development without requiring Plan Amendments for each new proposal that comes forth, which would likely be seen as an obstacle to the promotion of economic development. ? Landowners who are concerned about preserving their land for uses are not prevented from taking independent action to preserve their land or to continue farming by the City’s Plan. Even in areas where the City’s Future Land Use Map shows development, landowners are not forced to develop or sell their land. Landowners have tools at their disposal and under their complete control to permanently preserve agricultural land, including conservation easements and exclusive agricultural zoning. The City’s seeks to prevent fragmentation of long-term Agricultural areas by limiting new development in those locations to a density of 1 new home per every 35 acres, and hopes that the County, Towns and landowners will help to support this. The Plan has been in preparation for more than two years and has incorporated numerous public hearings, vision sessions, open houses and opportunities for public comment. The Plan Commission guided the Plan preparation process and made various adjustments to the text and Land Use Map based on public input. The Plan satisfies the State’s requirement for a Comprehensive Plan as set for in Section 66.1001, and Community Development staff believes the Plan is ready for City Council adoption as recommended. cc: Eric Levitt Jacob J. Winzenz 5 Community Development Department Memorandum March 9, 2009 TO: Janesville City Council FROM: Bradley Cantrell, Community Development Director SUBJECT: Public Hearing, Rezoning of property within the 4700 block of Milton Avenue from Agriculture to B2, Community Shopping District and Conservancy. This item was originally introduced at the City Council on January 26, 2009 and scheduled for a public hearing on this evening’s agenda (March 9). Since that time, City staff and the developer have engaged in extensive discussions on various components of this development. There will be a number of public improvements both on-site and off- site that will be necessary to develop this property. The details of those items will be outlined in a Memorandum of Understanding (MOU) that will define the type, nature, timing, and responsibilities regarding the installation of public improvements and other actions associated with this development including but not limited to the street extension and intersection improvements associated with the McCormick Drive and STH 26 connection. Those details to be outlined have yet to be finalized in the MOU. It is the applicant’s desire to have the MOU, CSM, and Rezoning to be brought forward for Council review all at the same time. Therefore, the applicant has requested to postpone review and action on this item until the March 23, 2009 City Council meeting. Because a public hearing has been scheduled for March 9, the Community Development Department and the applicant request that the City Council open the public hearing, allow anyone wishing to speak to do so, and then continue the hearing and action on this item until the March 23, 2009 meeting. Cc: Eric Levitt Jacob Winzenz REZONE TO CONSERVANCY REZONE TO B2 Area to rezone to B2 Area to rezone to Conservancy Ô»¹»²¼ Æ±²» Ü·¬®·½¬ Þ±«²¼¿®·» Îï Í·²¹´»óÚ¿³·´§ ú Ì©± Ú¿³·´§ Î»·¼»²½» Ü·¬®·½¬ Ñí Ò»·¹¸¾±®¸±±¼ Ñºº·½» Ü·¬®·½¬ Óï Ô·¹¸¬ ×²¼«¬®·¿´ Ü·¬®·½¬ ÎïÜ Ì©± Ú¿³·´§ Î»·¼»²½» Ü·¬®·½¬ Þï Ò»·¹¸¾±®¸±±¼ Ý±²ª»²·»²½» Ü·¬®·½¬Óî Ù»²»®¿´ ×²¼«¬®·¿´ Ü·¬®·½¬ Îî Ô·³·¬»¼ Ù»²»®¿´ Î»·¼»²½» Ü·¬®·½¬ Þî Ý±³³«²·¬§ Í¸±°°·²¹ Ü·¬®·½¬Óí Ý»²¬®¿´ Ô·¹¸¬ ×²¼«¬®·¿´ Ü·¬®·½¬ Îí Ù»²»®¿´ Î»·¼»²½» Ü·¬®·½¬ Þí Ù»²»®¿´ Ý±³³»®½·¿´ Ü·¬®·½¬Óì Ý»²¬®¿´ Ù»²»®¿´ ×²¼«¬®·¿´ Ü·¬®·½¬ Ü¿¬»æ ïñïìñðç ÎíÓ Ó»¼·«³ Ü»²·¬§ Î»·¼»²½» Ü·¬®·½¬ Þì Þ«·²» Ø·¹¸©¿§ Ü·¬®·½¬ß ß¹®·½«´³¬«®¿´ Ü·¬®·½¬ Îì Ý»²¬®¿´ Î»·¼»²½» Ü·¬®·½¬ Í½¿´»æ ïþã ìððù Þë Ý»²¬®¿´ Þ««·²» Ü·¬®·½¬ Ó Ó·²·²¹ Ü·¬®·½¬ Ñï Ñºº·½» ñ Î»·¼»²½» Ü·¬®·½¬ Þê Ý»²¬®¿´ Í»®ª·½» Ü·¬®·½¬ Ý Ý±²»®ª¿²½§ Ü·¬®·½¬ Ó¿° Ý±±®¼·²¿¬»æ Ïóîí Ñî Ý»²¬®¿´ Ñºº·½» ñ Î»·¼»½» Ü·¬®·½¬ ÞÌ Þ«·²» Ì»½¸²±´±¹§ Ü·¬®·½¬ ÔÑÝßÌ×ÑÒ ñ ÆÑÒ×ÒÙ ÓßÐ Ý×ÌÇ ÑÚ ÖßÒÛÍÊ×ÔÔÛ ÎÛÆÑÒ×ÒÙ ÑÚ ÐÎÑÐÛÎÌÇ É×ÌØ×Ò ÓßÐ ï ÐÔßÒÒ×ÒÙ ÍÛÎÊ×ÝÛÍ ÌØÛ ìéðð ÞÔÑÝÕ ÑÚ Ó×ÔÌÑÒ ßÊÛÒËÛ ÍæÐ®±¶»½¬ÄÐ´¿²²·²¹ÄÝ¿»ÄÏóîíÁÎ»¦±²»É·´´±©ò³¨¼ 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 NEIGHBORHOOD SERVICES MEMORANDUM March 2, 2009 TO: City Council FROM: Jennifer Petruzzello, Neighborhood Services Director SUBJECT: Council Direction on Transit Bus Fares Summary The Neighborhood Services Department has considered two primary options to address the affordability of Janesville Transit System (JTS) bus fares for low to moderate income individuals given the current economic conditions. This report includes background information on transit fares and ridership, as well as a brief analysis of two options. Department Recommendation Based on a review of the options, the Neighborhood Services Department recommends that the Transit fare increase originally scheduled for July 1, 2009 as part of the passage of the 2009 Transit System budget not be implemented. Given the current economic conditions, the Department is sympathetic to the financial needs of our riders, many of whom live at or below the poverty line; and feel that eliminating the rate increase is the most equitable means to address their needs at this time. The Administration believes that this course of action will benefit the greatest number of citizens and carries with it the possibility of at least a portion of the projected revenue loss being made-up by increased ridership in the last 6 months of the year. Adopting this alternative also creates no additional administrative workload for transit staff, results in a small cost-savings as public information activities that generally accompany a fare increase would not have to be carried out, and re-printing of bus passes and token bag inserts would not have to occur. This option also relieves the City of being put in the position of choosing which agencies qualify to receive discounted tokens and which do not, and the potential difficulties that process may cause. Finally, while there is a potential $10,000 negative impact on the General Fund, the possibility does exist that this impact can be lessened, if not eliminated by some additional revenues as well as potential expenditure reductions. Suggested Motion I move to direct the Administration not to implement the 2009 mid-year increase in transit fares and that transit fares remain at their current level throughout 2009. City Manager Recommendation This memo addresses two concerns raised about the fairs for the transit. First, the increase proposed during the budget would disproportionately impact individuals who are unemployed and lower income individuals. Second, there 1 are current clients of various not-for-profits who have a need for assistance in riding the public transit. The two options presented address each concern. The Council could delay the increase indefinitely, or delay an increase in the rates to be reviewed again in October 2009. I would prefer a delay of the increase with a review in October. I am also supportive of the second option because it provides some immediate relief to potential users of the system, but am only recommending implementation of this option if it is capped at between 3000 and 5000 tokens and implements a 50% decrease in token cost for this program from the $1.25. Request The review of the Transit Fare increase and consideration for a discounted fare program was requested by Council President Loasching and City residents Tim Cullen and Larry Barton. The concept of their proposal is to “provide a reduced City of Janesville bus token purchase price to charitable organizations, thereby making public transportation more affordable for the needy, with increased bus usage and revenue for the city”. They have suggested that recognized charitable organizations be given the right to purchase bus tokens in bulk for the reduced price of $175 for units of 500 tokens, or a cost of $0.35 per ride. The current price of these tokens would be $1.00 each or $500.00. This proposal amounts to a 65% fare reduction. Charitable organizations receiving reduced cost tokens could be required to commit to purchase a certain dollar amount or quantity of tokens each year or portion of the year to assure the City of a base amount of revenue from this program. Background The 2009 Adopted Budget includes a mid-year increase of $.25 in the basic cash fare charged to JTS customers to $1.50/ride, effective July 1, 2009. There would also be proportional increases in all other cash fares, token and pass prices charged to bus riders. This fare increase was anticipated to bring in an additional $10,000 in fare revenue during the last six months of 2009. Approximately 13% of transit revenue comes from passenger fares, with the balance coming from other operating revenues such as bus advertising. Currently, 75-80% of the cost of a bus ride is underwritten by federal, state or local funds. The general fund operating subsidy for Transit in 2009 is budgeted at $718,000. A majority of bus riders in Janesville are what is commonly referred to as “transit dependent”. This includes low income individuals without access to a vehicle, senior citizens who no longer have a driver’s license and disabled persons who are unable to drive. The most recent survey of JTS passengers was completed in 2005. That survey included a question regarding total family income. At that time, 42% of the bus riders responding had family incomes under $10,000 and 85% had family incomes under $35,000. The following table demonstrates the 2 income disparity of Transit riders as compared to the City of Janesville as a whole, and is further indication of the strong transit dependency of JTS riders. Annual Household Income - 2005 Percentage of City of Janesville Response ResponsesPercentages Under $10,000 41.9 5.6 $10,000 to $19,999 24.9 9.5 $20,000 to $34,999 18.6 21.6 $35,000 to $ $50,000 9.4 17.6 Over $50,000 5.2 45.8 Total100.0100.0 As required by Federal law, the Transit System currently offers fares at one-half the regular rates for senior citizens (defined as persons over the age of 65 years) and disabled individuals who possess a federal Medicare card or who have received a special identification card from the Transit System. These customers are presently charged $.60 per ride. Children under the age of five ride free when accompanied by a fare paying adult (limit two children per adult). An unlimited ride monthly pass is available for $37.50, which can produce a savings of 25% per ride for frequent riders who use JTS an average of 40 times per month. Tokens may be purchased in a 10 pack for $10.00, which is a 20% discount. An All Around Town one-day Pass good for unlimited rides within Janesville from 8:45 am to 6:15 pm is $3.00. In 2001, the City Council approved a discounted youth token program with Partners in Prevention (at that time the United Way Youth Violence Task Force). Under this program, half price tokens are available to agencies which provide after-school and non-school day programming for youth aged 11-17, as a means of connecting those who might not otherwise have transportation available to programs which provide an alternative to gangs and anti-social behavior. Partners in Prevention funds this program with private donations and has in the past used Community Development Block Grant funding as well. In 2008, approximately 2,000 Youth Tokens were purchased for distribution to these agencies, generating $1,200 in revenue to the City. In addition to the Youth token program, JTS token and pass sales to private non profit agencies, state and county governmental service organizations totaled over $42,000 in 2008. This number reflects 19 separate organizations that were billed for the passes, or those who requested a receipt. This does not include “over the counter” cash sales by the Transit System office or the five other fare sales outlets in the community where no receipts are requested. If these were included, the actual number would be somewhat higher. 3 In researching this issue, Transit staff surveyed sixteen of our peer transit systems. Twelve of the sixteen do not offer agencies a special or discounted rate on fares. One system offered a group rate through their domestic violence center; another offered a fares through their Boys & Girls Club & YMCA for after school programs (similar to our arrangement with Partners in Prevention), and a third offered a discount to passengers, with the difference paid by the hospital. Madison Metro has an extensive pass program, encompassing the University, private business firms as well as community agencies. Analysis Staff considered 2 primary options to address the concerns of affordable transportation. Do not implement the July 2009 planned rate increase. 1. The advantages of this option include: a. Maintaining affordable fares for all transit riders equally. Since an estimated 85-95% of all riders are persons of low to moderate income, repealing the July 2009 increase is the most equitable way to reach this population; and b. Administrative efficiency would be maintained. Because the change would be across the board, a new program would not need to be created and managed by the Transit staff. The disadvantage of this option is a potential increase in the general fund subsidy for the Transit System. The anticipated revenue from this fare increase is $10,000. To balance the budget, this amount would have to be added to the General Fund’s share of Transit revenues. To eliminate both the fare increase and any effect on the General Fund. Transit expenditures would have to be reduced by $21,000, as state and federal assistance are also reduced. It is possible that Transit expenditures for diesel fuel in 2009 may be less than anticipated, which could offset the loss of fare revenue. At present, fuel costs per gallon are approximately half of the budgeted amount. However there is no way of knowing what costs for the balance of the year will be at this early date, so making this assumption now is not recommended. Implement a pilot program whereby a limited number of tokens (i.e. 2. 5,000) would be available for non-profit organizations at a reduced cost. The advantages of this option include: a. Providing additional tokens to low income individuals which will increase their mobility to access jobs, job training and services in the community; b. Reduced cost tokens may provide some financial relief to non profit organizations who are struggling with shrinking budgets and increasing demands; and have to choose among giving rent 4 assistance, food assistance and transportation with limited budgets; and c. The tokens provided under this program may be targeted to address specific needs (i.e. employment, education, health care). The disadvantages of this option include: a. A value decision would be made as to who would receive the discounted tokens; both from the standpoint of which agencies would be eligible participants as well as which clients of the agencies would qualify. (i.e. Private non-profits only or government-sponsored agencies as well; individuals accessing the services of the participating non-profit, rather than being spread across all of the low-moderate income individuals); b. The number of non-profit agencies anticipated to request the tokens and the amount of their request may significantly exceed the tokens available, leading to demands for program expansion; c. Current Transit customers who are managing to pay the regular fare may shift from paying those fares to discounted fares through the non- profits, resulting in a net loss of revenue and an increase in cost to the General Fund, which ultimately must make –up the difference; d. A new program would be created, which would add an additional administrative responsibility to already stretched staff; and There are obviously other variations of this plan which could be considered at the Council’s option. These could include: a general fare decrease to ease the burden of transportation costs on all citizens, with, however a commensurate impact on the General Fund. The reduced-cost token sales to agencies could also be adjusted by allowing a decreased or increased number of tokens being available through non-profit organizations, or modifications of the cost structure to the agencies. cc: Eric Levitt, City Manager Jay Winzenz, Director of Administration 5 NEIGHBORHOOD SERVICES MEMORANDUM February 27, 2009 TO: City Council FROM: Kelly Lee, Neighborhood Development Specialist SUBJECT: Community Block Grant Supplemental Disaster Allocation Emergency Assistance Program Summary The Neighborhood Services Department is seeking the Council’s approval to apply for Community Development Block Grant-Emergency Assistance Program funding. The CDBG-EAP grants are to be used to provide assistance to individuals and businesses that were damaged during the disaster period of June 5 through July 25, 2008. In addition, the funds can be used to reimburse the City of Janesville for repair and replacement of public infrastructure damaged during that same period. Reimbursement costs are only eligible if other funding was not available such as insurance or other state or federal programs. Department Recommendation The Neighborhood Services Department recommends that the Council approve file resolution 2009-585 authorizing the filing of an application with the Wisconsin Department of Commerce for the Community Development Block Grant Emergency Assistance Program in the amount of $2,056,845. Suggested Motion I move that the Council approve file resolution 2009-585 authorizing the filing of an application with the Wisconsin Department of Commerce for the Community Development Block Grant Emergency Assistance Program. Background The Federal Government through the Department of Housing and Urban Development’s Community Development Block Grant (CDBG) program, has recently awarded the State of Wisconsin a total of $24 million in Disaster Assistance. The Community Development Block Grant-Emergency Assistance Program (CDBG-EAP) is a special program the Wisconsin Department of Commerce, Division of Housing and Community Development (DHCD) activated to assist local units of government that have recently experienced a natural or manmade disaster. The storms and flooding of June 5 through July 25, 2008, led to a federal disaster declaration, FEMA-DR-1768 WI, in 31 Wisconsin counties including Rock County. As a result of this declaration, DHCD has reallocated a share of its annual CDBG allocation and is in the process of obtaining Supplemental Disaster Allocation funds through HUD to address unmet housing and community needs. 1 There are three categories of eligible activities. The repair and replacement of low and moderate-income (LMI) owner occupied housing that is the principal place of residence and was damage during the disaster; the repair and replacement of public infrastructure limited to facilities that affect the health and safety of residents of the community that was damaged; and assistance to businesses having unmet recovery needs including the repair of flood damages, loss on inventory and lack of working capital due to lost revenues. The City of Janesville has the opportunity to apply for a portion of these funds by way of a grant application under a very short application deadline. At the time this memo was written, staff has not yet determined the final dollar amount that will be requested through the grant application. Analysis The City of Janesville would benefit from an additional source of funding to assist in flood recovery effort. Under this program, these funds may be used as local match for the Hazard Mitigation Grant, otherwise known as the Buy-Out program that council approved last year ($194,941). However, in the grant application, staff is requesting $569,909 in this category. We arrived at this figure based on the required local match of 12.5% for the Hazard Mitigation Grant for the eight owner occupied primary dwellings and the full pre-flood value for the four rental properties. Wisconsin Emergency Management has indicated that there may not be enough funding to reach beyond owner occupied dwellings based on the applications and the FEMA grant award. In addition, costs of repair or replacement of water and sewers mains and components and repairs to the library and the senior center that were not otherwise funded are considered reimbursable costs ($411,747). Local businesses that have not been provided with a significant amount of assistance other than loans may also benefit from this grant; therefore, we have included one million dollars ($1,000,000) in this category. Wisconsin Department of Commerce has not established solid program rules at this time. Staff will receive training with regard to grant administration after awards have been made. Staff would need to spend a substantial amount of time on administration of the grant funds should an award be made. Staff feels that this effort is worthwhile given the expense of the disaster incurred by both the City and its residents. City Manager recommendation The City Manager concurs with the Department of Neighborhood Services recommendation to submit the CDBG application. cc: Eric Levitt, City Manager Jacob J. Winzenz, Director of Administrative Services 2 RESOLUTION NO. 2009-585 A RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION WITH THE WISCONSIN DEPARTMENT OF COMMERCE FOR COMMUNITY DEVELOPMENT BLOCK GRANT-EMERGENCY ASSISTANCE PROGRAM WHEREAS , Federal monies are available under the Wisconsin Small Cities Community Development Block Grant-Emergency Assistance program (CDBG- EAP), administered by the State of Wisconsin, Department of Commerce, Bureau of Community Finance, for the purpose of disaster recovery; and WHEREAS, the State of Wisconsin has received a total of $24 million dollars in Disaster Assistance to aid local units of government that have recently experienced a natural or manmade disaster; and WHEREAS, the storms and flooding of June 5 through July 25, 2008, led to a federal disaster declaration,FEMA-DR-1768 WI in 31 Wisconsin counties including the county of Rock; and WHEREAS, the City of Janesville has undertaken housing, public facilities and business assistance activities that address damages and losses during the disaster period; and WHEREAS, there is no local match requirement for CDBG-EAP; and WHEREAS, the City of Janesville and its citizens have incurred significant cost associated with the disaster; and WHEREAS, the City is seeking additional CDBG funding by way of CDBG-EAP to be used for eligible activities to related to the disaster period of June 5 through July 25, 2008; and WHEREAS , the Common Council hereby find that this funding and application are in the best interest and benefit of the City and community. NOW, THEREFORE BE IT RESOLVED by the Common Council of the City of Janesville that it authorizes and directs the City Manager to submit an application to the Wisconsin Department of Commerce, including all certifications and that the City Manager is authorized to act in connection with the application and to provide such additional information as may be required and to administer the program in accordance with all applicable State and Federal regulations. 3 BE IT FURTHER RESOLVED, that the City Manager, and his designees, are hereby authorized to negotiate, draft, prepare, execute, file and modify such other documents, papers and agreements ancillary and/or pertaining thereto and, from time to time, to take and/or make whatever other minor actions and/or minor modifications to the above described agreements as the City Manager and/or his designee may deem necessary and/or desirable to effectuate the purposes of such agreements and the intent of this resolution. ADOPTED: 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: Neighborhood Development Specialist Prepared by: Neighborhood Development Specialist 4 CITY MANAGER’S OFFICE MEMORANDUM March 2, 2009 TO: City Council FROM:Eric Levitt, City Manager Rebecca Smith, Management Assistant SUBJECT: Introduction and schedule a public hearing on a proposed charter ordinance amending the appointment provisions of the Plan Commission, Board of Review, Library Board, and Zoning Board of Appeals and creating a charter ordinance for the Community Development Authority to require appointments to be made by the Common Council following consultation with the Citizens Advisory Committee on Appointments in amended Sections 2.20.010, 2.24.010, 2.28.010, 2.58.020, and newly created Chapter 2.26. (Charter Ord. 2009-007) Request The Council asked the Administration to prepare materials changing the appointment authority for citizen members of the Plan Commission, Board of Review, Library Board, Zoning Board of Appeals and Community Development Authority from the City Manager to the City Council following consultation with the Citizens Advisory Committee on Appointments. This memo will outline Janesville’s current appointment authority, detail the steps necessary to change the appointment authority and provide a recommendation. Summary The Council may change the appointment authority for citizen members of the Plan Commission, Board of Review, Library Board, Zoning Board of Appeals and Community Development Authority from the City Manager to the City Council following consultation with the Citizens Advisory Committee on Appointments. Charter Ordinance 2009-007 is attached and reflects the appointment authority changes. The Administration recommends the adoption of this charter ordinance. Background Janesville has 14 standing committees that include citizens. Of those, 8 (57.1%) have citizen members appointed by the Council President and confirmed by the Council. Four (28.6%) have citizen members appointed by the City Manager and confirmed by the Council. Two (14.3%) are appointed by the City Manager with no confirmation needed by the City Council. There are currently no committees that are appointed by the City Council. Table 1 details how citizens are currently appointed to each of the committees. 1 Table 1: How Citizen Appointments are Made Currently Council President Appoints, Council City Manager Appoints, City Manager ConfirmsCouncil ConfirmsAppoints Committee 1ALACX 2Appointment CommitteeX 3Board of ReviewX 4CableX 5CDAX 6Golf AdvisoryX 7Historic CommissionX 8Leisure AdvisoryX 9LibraryX 10Plan CommissionX 11X Police & Fire Commission 12Sustainable JanesvilleX 13TransportationX 14ZBAX Total842 Percentage of Total57.1%28.6%14.3% How citizens are appointed to committees is determined through a Council Policy Statement, a General or Charter ordinance (described in Attachment 1) or by a state statute requirement. Table 2 details how committee appointments are determined. Table 2: How Committee Appointments are Determined Currently How is the Committee Appointment Committee Determined? 1ALAC Council Policy #66-A 2 Appointment CommitteeCouncil Policy #82 3Board of Review Charter Ordinance Chapter 2.20 4Cable Council Policy #72 5CDA State statute 66.1335 6Golf Advisory Council Policy #41 7Historic Commission City Ordinance Chapter 18.36.070 8Leisure Advisory Council Policy #49 9Library State statute 43.54 10Plan Commission Charter Ordinance Chapter 2.48.020 11 State statute 62.13 Police & Fire Commission 12Sustainable Janesville Council Policy #81 13Transportation Council Policy #43 14ZBA State statute 62.23 (7) The City Council may change the appointment process for all of Janesville’s standing boards, committees and commissions, except the Police and Fire Commission. 2 Committees Governed by Charter Ordinances The Board of Review and the Plan Commission are governed by charter ordinances and currently have the City Manager appointing the citizen members. To change the appointment authority for citizen members of these committees to the City Council following consultation with the Citizens Advisory Committee on Appointments, a charter ordinance update is required. Please find attached Charter Ordinance 2009-007 which reflects the appointment authority changes for the Board of Review and the Plan Commission. Committees Governed by State Statutes The Community Development Authority, Library Board of Trustees and the Zoning Board of Appeals are currently governed by state statutes. To change the appointment authority for citizen members of these committees to the City Council following consultation with the Citizens Advisory Committee on Appointments, a new charter ordinance is required. Please find attached Charter Ordinance 2009-007 which reflects the appointment authority changes for the Community Development Authority, Library Board of Trustees and the Zoning Board of Appeals. Police and Fire Commission Appointments to the Police and Fire Commission (PFC) are controlled by several statutes and, in Janesville, are restricted to the City Manager. Specifically, Wisconsin Statutes 62.13(1) requires that each city have a board of police and fire commissioners and that the mayor annually make appointments. Chapter 62 of the Wisconsin Statutes goes on to indicate that section 62.13 “shall be construed as an enactment of statewide concern for the purpose of providing uniform regulation of police and fire departments” (Wis. Stats. 62.13(12). In matters of “statewide concern” the courts have held that local governments are prevented from altering the statutory requirements. Therefore, according to statute, appointments to the PFC must be made by the mayor. Janesville does not have a mayor and is organized under the Council-Manager form of government as provided in Chapter 64 of the Wisconsin Statutes. Chapter 64.11 of the Statutes describes the powers of the City Manager. This section indicates the City Manager “shall be the chief executive officer of the city and head of the city administration and shall possess and exercise all the executive and general administrative powers imposed and conferred by general law or special charter upon the mayor and common council and upon various boards, commissions and officers and in force in such city at the time of its reorganization under ss.64.01 to 64.15, and such additional powers as are herein imposed and conferred.” The power to appoint members to boards and commissions is an exercise of executive power; therefore, under the Council-Manager form of government those appointment powers conferred on the mayor by statute are delegated to the City Manager. Even though the authority of the City Manager to appoint members to the PFC cannot be changed, I am willing to take into consideration recommendations from the Citizen Advisory Committee on Appointments before making appointments. At the March 23, 2009, meeting of the City Council staff will bring forward changes to the council policy 3 which established this committee authorizing them to review applications and make recommendations to the City Manager for the Police and Fire Commission. Analysis Janesville’s council-manager form of government was enacted by the citizens of Janesville through a referendum in 1923. One of the responsibilities of the City Manager under the City of Janesville’s charter ordinance and Council policies is to appoint committee members. Pros & Cons for the City Council Making Committee Appointments Pros 1. Having the Council appoint committee members provides the Council the ability to obtain a diverse representation of the community. 2. The new appointment process assists the Council in appointing individuals who are attempting to move policies in a similar direction to the City Council. Cons 1. The new appointment process brings a new challenge to the Council and the City Management. The challenge is how to maintain a positive line of communications between the Council and the committee and how to coordinate the work programs of the staff and the committee. The challenge needs to be met through proper communication and coordination of work between the City Manager and key staff with the City Council. Proposed Appointment Timeline Table 3 outlines the proposed timeline for citizen appointments. This table takes into consideration the recently adopted Citizen Advisory Committee on Appointments. At their September 8 meeting, the Council indicated their preference for the outgoing Council President to make the appointments. This timeline has been updated to reflect that committee appointments will be made at the first Council meeting in April, which is the last meeting for the outgoing Council President. This table also reflects the addition of City Council appointments for Plan Commission, Board of Review, Library Board, ZBA and CDA. 4 Table 3: Annual Timeline for Citizen Appointments MonthActivity Committee, Commission & Board vacancies publicized Late January Late January - mid Residents interested in serving on a committee complete an Februaryapplication form Citizen Advisory Committee on Appointments meets to review applications & choose volunteers for recommendation to Council Late February, early President or entire Council. Alternates would also be chosen in case Marcha volunteer declines or there is a resignation throughout the year. Committee's recommendations shared with Council President or entire Council Mid March Council President appointments brought forward for Council First Council Meeting in confirmation & Council's appointments brought forward for Aprilappointment Other times throughout Committee meets to choose volunteers for recommendationt on an the year if neededas needed basis Recommendation While I understand that the change proposed by the Council is a change for the city government in Janesville, I believe it is consistent with many other cities that have Council-Manager form of government. I recommend this change, or an amended version of this change, and believe it can be managed positively through proper coordination. I am fine with the timeline for this year, but recommend that the appointment timeline going into the future may want to be reviewed. The Administration recommends the City Council adopt Charter Ordinance No. 2009-007 to amend the appointment provisions of the Plan Commission, Board of Review, Library Board of Trustees, and Zoning Board of Appeals and creating a charter ordinance for the Community Development Authority to require appointments be made by the City Council following consultation with the Citizens Advisory Committee on Appointments in amended Sections 2.20.010, 2.24.010, 2.28.010, 2.58.020, and newly created Chapter 2.26. Suggested Motion: I move to adopt Charter Ordinance 2009-007. Attachment 1: What is a charter ordinance? Every city has a charter that establishes the form and substance of the City’s structure and operation. To make changes to the charter, the Council must pass a charter ordinance. Janesville’s charter details how citizens are appointed to the Board of Review and the Plan Commission. A charter ordinance is also used to make the appointment authority changes to the Community Development Authority, Library Board of Trustees and the Zoning Board of Appeals. 5 Charter ordinances are more involved than typical “general ordinances”. ? Amending a Charter Ordinance requires a two-thirds vote, or 5 affirmative votes, of the Common Council, instead of a simple majority (4 votes). ? A Charter Ordinance does not take effect until 60 days after its passage and publication. If citizens oppose the Charter Ordinance, they may use this 60 day time period to gather the appropriate signatures to require a referendum on the Charter Ordinance. Having this 60 day waiting period in place also means the Board of Review, Community Development Authority, Library Board of Trustees, Plan Commission and the Zoning Board of Appeals website pages will not be updated until after the waiting period has passed. CC: Jacob J. Winzenz, Director of Administrative Services 6 JANESVILLE AREA METROPOLITAN PLANNING ORGANIZATION February 27, 2009 TO: City Council FROM: Terry Nolan, MPO Coordinator SUBJECT: Schedule MPO Policy Board Meeting for March 23, 2009. Staff would like to request that the next MPO Policy Board meeting be scheduled on Tuesday, March 23, at 6:30 p.m. in the training room. Preliminary agenda items include review and approval of amendments to the 2009-2014 Transportation Improvement Program (TIP). cc: Eric Levitt Jacob J. Winzenz 1