#08 Dissolve TIF District #7 (File Res. #2009-602)Economic Development Memorandum
Date: May 4, 2009
TO: City Council
FROM: Doug Venable, Director of Economic Development
SUBJECT: Action on a Resolution Dissolving Tax Incremental Finance District No. 7 (File
Resolution 2009- 602)
I. Summary
Wisconsin’s Tax Increment Finance (TIF) Law (Wisconsin Statutes 66.1105) requires
the dissolution of a TIF district when all of the TIF project costs have been recovered or no
later than 27 years after the date of creation. The City Council created the 25.26-acre TIF
No. 7 in 1992 to facilitate the expansion of Swing N’Slide. In 1999, the Project Plan for TIF
No. 7 was amended to share its positive tax increments with TIF No. 3 for five years. In
2003, the Project Plan was amended again to share the positive tax increments with TIF
No. 3 for a second, five-year period.
All TIF No. 7 costs have been recovered and the district is ready to be dissolved. TIF
No. 7 was created with a base value of $1.83 million and now has a value of $3.78 million.
Over the life of the TIF District, the City invested $225,581 in TIF No. 7; and transferred
$551,169 in positive TIF incremental revenues to TIF No. 3. TIF No. 7 will be dissolved with
a fund balance of $ -0-.
II. Recommendation
The Community Development Department recommends that the Council adopt
Resolution 2009 - 602, dissolving Tax Increment Finance District No. 7.
III. Suggested Motion
Move to adopt file Resolution No. 2009 - 602 dissolving TIF No. 7.
IV. City Manager Recommendation
The City Manager concurs with staff’s recommendation.
V. Background and Project Summary
TIF No. 7 was created by the City Council in 1992 to facilitate the continued expansion
of Swing N’Slide on Barberry Dr. The TIF No. 7 Project Plan included funds for industrial
land development, street improvements, and administrative costs. Over the life of the TIF
District, the City invested $176,691 in capital improvements, compared to a Project Plan
budget of $194,275. Interest and financing charges totaled $34,656. The City also spent
$14,637 in administrative costs, compared to a Project Plan budget of $20,000.
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Economic Development Department Box 5005 Janesville, WI 53547-5005 755-3180
Dissolution of TIF No. 7
May 4, 2009
Page 2
In 1999 and 2003, the City Council adopted amendments to TIF No. 7 which allowed
the positive tax increments from TIF No. 7 to be shared by TIF No. 3 downtown. From 2000
– 2009, TIF No. 7 provided TIF No. 3 with a total of $551,169 in shared TIF funds. Over the
life of TIF No. 7, TIF revenues of $775,298 equaled TIF expenditures, so there are no funds
remaining to be returned to the participating taxing jurisdictions.
The primary development in TIF No. 7 was a 48,000 SF expansion by Swing N’Slide
with an estimated value of $1.2 million. Combined with the value of the existing building, the
after-construction value of Swing N’Slide’s facility was to exceed $2.86 million. For 2009,
Swing N’Slide’s facility has an equalized property valuation of $3,207,700 and generated
approximately $42,500 in TIF incremental revenues.
The TIF Agreement with Swing N’Slide also called for the Company to expand
employment by Sixty (60) workers to 215 workers by July, 1994. The company employed
220 workers in early 1995. Swing N’Slide went public and merged with Playcore, but retains
a production facility here in Janesville. Today, the company employs approximately 70
workers year round and expands employment to 200 workers during peak seasonal
production. The company also leases additional warehouse space at several locations in the
City.
The measures for property value created, taxes paid, and jobs created all show that
TIF No. 7 has been successful at retaining a local manufacturing employer and facilitating its
growth. Upon dissolution, $1.95 million in new property tax base will be returned to the tax
rolls.
VI. Financial Summary
Attached Table One summarizes the revenues and expenditures for TIF No. 7 from
the date of creation through April 30, 2009. TIF revenues equaled TIF costs so there are no
excess TIF funds to be returned to the participating taxing jurisdictions.
Douglas Venable
cc: Jacob J. Winzenz, Director of Administrative Services/Assistant City Manager
Attachments: Resolution 2009 - 602
TIF No. 7 Map
TIF No. 7 Sources and Uses Statement
Resolution No. 2009 – 602
A Resolution Authorizing the Dissolution of Tax Increment Finance District No. 7
WHEREAS, the Common Council of the City of Janesville, pursuant to Wisconsin’s Tax Increment Law
(Section 66.1105 Wisconsin Statutes), created Tax Increment Finance District No. 7 (TIF No. 7) by
adopting Resolution No. 92 - 1519 on July 27, 1992; and
WHEREAS, the development projects contemplated in the TIF No. 7 Project Plan are completed and all
of the City’s costs associated with TIF No. 7 have been fully recovered through the positive tax
increments on new property value created within TIF No. 7; and
WHEREAS, TIF No. 7 has received tax increments equal to project costs and there are no TIF No. 7
funds to return to the overlying local taxing jurisdictions,
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville, that TIF
No. 7 is hereby terminated and dissolved and that the City Clerk-Treasurer is hereby directed to notify
the Wisconsin Department of Revenue of this dissolution according to Section 66.1105 (8), Wisconsin
Statutes.
ADOPTED:
Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Brunner
McDonald
Eric J. Levitt, City Manager
Perrotto
Rashkin
ATTEST:
Steeber
Truman
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
City Attorney
Proposed by: City Manager
Prepared by: Director of Economic Development
CITY OF JANESVILLE
TAX INCREMENTAL DISTRICT NO. 7
DETAILED SUMMARY OF SOURCES, USES AND STATUS OF FUNDS
From Date of Creation Through April 30, 2009
199219931994199519961997199819992000
SOURCES OF FUNDS
TIF Increment$ -$ - $ 43,341$ 47,375$ 42,596$ 34,749$ 34,407$ 38,946$ 33,525
Computer exemption increment - - - - - - - - 7,040
Guarantee payments - - - - - 12,177 16,035 6,236 10,714
Investment income - - 504 1,450 1,877 2,549 3,330 3,265 2,479
Proceeds of long-term debt - 170,000 - - - - - - -
Total Sources of Funds - 170,000 43,845 48,825 44,473 49,475 53,772 48,447 53,758
USES OF FUNDS
Capital expenditures 168,929 - - 7,068 - 694 - - -
Administrative costs 2,495 698 1,531 1,948 167 174 89 46 859
Interest on advances 978 3,299 - - - - - - -
Transfers to TIF # 3 - - - - - - - - 123,241
Issuance Expenses - 1,112 - - - - - - -
Interest on long-term debt - - 8,671 7,020 5,783 4,270 2,623 900 -
Principal on long-term debt - - 15,000 20,000 25,000 30,000 35,000 45,000 -
Total Uses 172,402 5,109 25,202 36,036 30,950 35,138 37,712 45,946 124,100
TAX INCREMENTAL DISTRICT NO. 7
DETAILED SUMMARY OF SOURCES, USES AND STATUS OF FUNDS
From Date of Creation Through April 30, 2009
Project
Plan
200120022003200420052006200720082009TotalsEstimate
SOURCES OF FUNDS
TIF Increment$ 33,814$ 44,060$ 50,746$ 76,300$ 43,089$ 52,379$ 37,763$ 35,199$ 42,482$ 690,771$ 763,083
Computer exemption increment 4,605 109 - - 8,969 - 2,256 2,787 - 25,766
-
Guarantee payments - - - - - - - - - 45,162
-
Investment income - - - - - - - - - 15,454
12,215
Proceeds of long-term debt - - - - - - - - -
170,000 -
Total Sources of Funds 38,419 44,169 50,746 76,300 52,058 52,379 40,019 37,986 42,482 947,153 775,298
USES OF FUNDS
Capital expenditures - - - - - - - - -
176,691 194,275
Administrative costs - 27 3,038 93 - 16 19 34 3,403 14,637
20,000
Interest on advances - - - - - - - - -
4,277 -
Transfers to TIF # 3 38,419 44,142 47,708 76,207 52,058 52,363 40,000 37,952 39,079 551,169 561,023
Issuance Expenses - - - - - - - - - 1,112
-
Interest on long-term debt - - - - - - - - -
29,267 -
Principal on long-term debt - - - - - - - -
- 170,000 -
Total Uses 38,419 44,169 50,746 76,300 52,058 52,379 40,019 37,986 42,482 947,153 775,298
FUND BALANCE
- April 30, 2009$ -0-