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Full Agenda CITY OF JANESVILLE CITY COUNCIL MEETING AGENDA MONDAY, June 22, 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 June 8, 2009. B. Special meeting of June 12, 2009. C. Special meeting of June 15, 2009. 4. Licenses; and Recommendations of the Alcohol License Advisory Committee including an appeal of the denial of a bartender license for Suheidy V. Roman. “C” 5. Action on a motion to approve final Certified Survey Map 09003-C, Hamilton/Tadder, 1 lot along Center Avenue. “C” 6. Financial statement for the month of May, 2009. “C” 7. 2008 Comprehensive Annual Financial Report – report on internal control. “C” 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. ----------------------- “C” – This designation indicates an item that the City Council will take up under a Consent Agenda. City Council Agenda – June 22, 2009 Page 2 OLD BUSINESS (CONTINUED) 3. Continued public hearing and action on a proposed ordinance rezoning property located at 120 North Crosby Avenue from O1, Office/Residence District, to B3, General Commercial. (File Ord. No. 2009-437) 4. Second reading, public hearing, and action 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. #2009-007) 5. Second reading, public hearing, and action on a proposed ordinance designating North Franklin Street between Highland Avenue and Mineral Point Avenue as a two-way street. (File Ord. No. 2009-435) 6. Second reading, public hearing, and action on a proposed ordinance change adding the intersection of North Franklin Street/Highland Avenue/North Pearl Street and North Washington Street to the list of all-way stop intersections. (File Ord. No. 2009-436) 7. City Council discussion and direction to staff on approach to comply with State Statutes concerning property valuation. NEW BUSINESS 1. Action on a proposed preliminary resolution for Public Works Bid Schedule “F” – 2009 and schedule a public hearing for the final resolution. (File Res. No. 2009-612) 2. Action on a proposed resolution approving the acquisition of 417 North Washington. (File Res. No. 2009-614) 3. Action on a proposed resolution approving the acquisition of properties under the Neighborhood Stabilization Program (414 North Washington Street). (File Res. No. 2009-615) City Council Agenda – June 22, 2009 Page 3 NEW BUSINESS (CONTINUED) 4. Action on a proposed resolution authorizing the sale of the former Riverside Plating property at 1728 North Washington Street. (File Res. No. 2009-618) 5. Action on a proposed resolution authorizing the City Manager to apply for the Energy Efficiency and Conservation Block Grant. (File Res. No. 2009-620) 6. Motion to authorize the Police Department to apply for the 2009 Edward Byrne Memorial Justice Assistance Grant (JAG) Program. 7. Action on a proposed resolution approving a TIF development agreement with and authorizing a TIF development loan to Recycle4U in TIF No. 33. (File Res. No. 2009-619) 8. Introduce Amendment #3 to the project plan for TIF District No. 26 and refer to the Plan Commission for a public hearing. (File Res. No. 2009-617) 9. Matters not on the agenda. 10. Consideration of one or more motions to convene into closed session, pursuant to Wisconsin Statute Section 19.85(1)(e), for the purpose of deliberating or negotiating the lease 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 negotiating and bargaining terms and conditions for: (1) a proposed TIF No. 22 Development Agreement; and (2) a proposed agreement for certain south side land acquisition for various public purposes; and 19.85(1)(c) conducting the six month employment, promotion, compensation, and performance evaluation of the City Manager over whom the governmental body has jurisdiction or exercises responsibility. PROCEEDINGS OF THE CITY COUNCIL CITY OF JANESVILLE, WISCONSIN REGULAR MEETING JUNE 8, 2009 VOL. 60 NO. 6 Regular meeting of the City Council of the City of Janesville held in the Municipal Building on June 8, 2009. The meeting was called to order by Council President Truman at 7:00 PM. Council President Truman led the Council in the Pledge of Allegiance. Present: Council President Truman, Councilmembers Brunner, McDonald, Perrotto, Rashkin, and Voskuil. Councilmember Steeber was absent. CONSENT AGENDA Minutes of the regular meeting of May 26, 2009 Minutes of the special meeting of May 26, 2009 Minutes of the closed session of May 11, 2009 Licenses and Recommendations of the Alcohol License Advisory Committee. Council President Truman stated that all items on the consent agenda would be approved if there were no objections. There were none. OLD BUSINESS 1. Requests and comments from the public regarding items on the agenda not requiring a public hearing. Burdette Erickson, 115 S. High St.; Mick Gilbertson, 10 S. High St., representing the Armory; Ron Sutterlin, 609 W. Court St.; Kurt Linck, 118 S. High St.; spoke in support of the City purchasing 614 W. Court St. (New Business #3). Ann Forbeck, Homeless Coordinator for the Janesville School District, spoke about homelessness in Janesville and the impact on school children. Traci Rogers, representing HealthNet, spoke in support of the Substantial Plan Amendment and the FY 2008 Action Plan. (New Business #2). 2. Requests and comments from the public on matters which can be affected by Council action. Becky Boys, Rock County Juvenile Detention Center Coordinator, requested Council support for “Our Spot” which is a proposed premise for 11-15 year olds to go and hang out while promoting self esteem, whole body wellness and a care for community. Tim Rutter, representing Friends of Riverside Park, stated concern about when Riverside Park wading pool would open. Andreah Briarmoon, 339 S. Locust St., opposed the purchase of 614 W. Court St. and suggested a one-way street in front of the Armory with angle parking. 3. A proposed final resolution for Public Works Projects included in Bid Schedule “E”-2009 received its public hearing. No one spoke. The public hearing was closed. Councilmember Brunner moved to adopt said resolution, seconded by Councilmember Voskuil and passed unanimously. (File Res. No. 2009-609) 4. Award of Contract 2009-16 (N. Washington/W. Memorial Rehabilitation) for Public Works Bid Schedule “E”-2009. Councilmember Rashkin moved to award Contract C2009- 16 to Frank Brothers, Inc. for $125,310.10 and include funding in the 2009 Note Issue, seconded by Councilmember Voskuil and passed unanimously. 5. A proposed ordinance rezoning property located at 120 N. Crosby Ave. from O1, Office/Residence District, to B3, General Commercial received its second reading and public hearing. Tim Richards, rezoning applicant, stated he planned on using the upstairs for office space and the downstairs for banquets and gatherings. The public hearing was closed. Councilmember Truman moved to postpone said ordinance until June 22, 2009, seconded by Councilmember Rashkin and passed unanimously. (File Ord. No. 2009-437) 6. Action on a proposed resolution acknowledging the review of the Wastewater Utility 2008 Compliance Maintenance Annual Report. Councilmember Rashkin moved to adopt said resolution, seconded by Councilmember Brunner and passed unanimously. (File Res. No. 2009-606) NEW BUSINESS 1. Presentation by Public Health Officer. Karen Cain, Rock County Health Officer, gave presentation about the H1N1 outbreak and their pandemic plan. Councilmember Voskuil asked how local businesses could plan for pandemics. Ms. Cain stated planning information is located on Rock County’s website. Councilmember Voskuil requested a link to it be placed on the City’s website. No Council action taken. 2. Action on a proposed resolution approving a Substantial Plan Amendment to the 2004- 2009 Consolidated Plan and FY2008 Action Plan for the Community Development Block Grant Program and Rock County HOME Consortium Submission. Councilmember Rashkin moved to adopt said resolution, seconded by Councilmember Voskuil and passed unanimously. (File Res. No. 2009-611) 3. Action on a proposed resolution approving an offer to purchase and authorizing the City Manager to purchase 614 W. Court St. for $45,000 using funds from TIF #9. Councilmember Voskuil moved to adopt said resolution, seconded by Councilmember McDonald and passed unanimously. (File Res. No. 2009-610) 4. Action on a proposed resolution approving the release of City of Janesville rights to a 30-foot utility easement located at 1933 W. Court St. and 1909 W. Court St. Councilmember Voskuil moved to adopt said resolution, seconded by Councilmember Brunner and passed unanimously. (File Res. No. 2009-608) 5. Action on a proposed resolution supporting Vision 2020 Campaign Goal to eliminate child poverty and action on the establishment of a task force regarding poverty. Councilmember McDonald moved to adopt said resolution, seconded by Councilmember Brunner and passed unanimously. Councilmember McDonald moved to establish a task force regarding poverty by August 1, 2009, and to have a status report presented to the Council after six months, seconded by Councilmember Rashkin and passed unanimously. (File Res. No. 2009-613) 6. (A) A proposed ordinance designating N. Franklin St. between Highland Ave. and Mineral Point Ave. as a two-way street was introduced and scheduled for public hearing on June 22, 2009 (File Ord. No. 2009-435) (B) A proposed ordinance change adding the intersection of N. Franklin St./ Highland Ave./N. Pearl St. and N. Washington St. to the list of all-way stop intersections was introduced and scheduled for public hearing on June 22, 2009. (File Ord. No. 2009-436) 7. Matters not on the agenda. Councilmember Voskuil stated a citizen inquired about streets lights on during daylight hours. Assistant City Manager Winzenz stated all street lights have sensors and City Services should be notified about the location of problem sensors. Councilmember Rashkin questioned the need for traffic signals by General Motors. Councilmember McDonald stated the Racine/Palmer Dr. traffic signals were malfunctioning. Assistant City Manager Winzenz stated the traffic signals at General Motors are being evaluated and a recommendation would be forthcoming from the Transportation Committee and the Racine/Palmer Dr. traffic signals have been fixed. City Manager Levitt reminded Council of the retreat at Holiday Inn Express at 8:00 AM on June 16, 2009. Council President Truman asked when Code personnel would be hired; identified various properties that have been neglected, asked about tunnel and roundabout project status and commented that the delay in opening Riverside wading pool is unacceptable. Neighborhood Services Director Petruzzello stated interviews for Code personnel were scheduled for the week of June 8, 2009. City Manager Levitt stated the tunnel project was federally funded and needs Department of Transportation approval before proceeding; the roundabout project would commence after hiring a consultant for design; and Riverside wading pool needs to comply with new federal standards and the Administration would make this a high priority. 8. Councilmember McDonald moved to convene into closed session, pursuant to Wisconsin Statute Section 19.85(1)(g) conferring with legal counsel for the governmental body who is rendering oral or written advice concerning strategy to be adopted by the body with respect to litigation in which it is or is likely to become involved, specifically Speich, et al. v. City of Janesville, Rock County Case No. 08 CV 1220; and Wisconsin Statute Section 19.85(1)(e) for the purpose of deliberating or negotiating the lease of public properties, the investing of public funds, or conducting other specified business, whenever competitive or bargaining reasons require a closed session, specifically setting the negotiating and bargaining terms and conditions for a potential TIF 33 Development Agreement; and 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 public purposes and related contract language, seconded by Councilmember Voskuil and passed unanimously. There being no further business, Council convened into closed session at 8:40 PM. These minutes are not official until approved by the City Council. Jean Ann Wulf Clerk-Treasurer PROCEEDINGS OF THE CITY COUNCIL CITY OF JANESVILLE, WISCONSIN SPECIAL MEETING JUNE 12, 2009 VOL. 60 NO. 7 Special meeting of the City Council of the City of Janesville held in the Municipal Building on June 12, 2009. The meeting was called to order by Council President Truman at 11:00 AM. Present: Council President Truman, Councilmembers Brunner, McDonald, and Voskuil. Councilmembers Perrotto, Rashkin, and Steeber were absent. Councilmember McDonald moved to convene into closed session, pursuant to Wisconsin Statute Section 19.85(1)(e) for the purpose of deliberating or negotiating the investment of public funds, or conducting other specific public business, whenever competitive or bargaining reasons require a closed session, specifically setting the negotiating/bargaining terms and conditions for investing public funds, seconded by Councilmember Voskuil and passed by the following vote: Aye: McDonald, Truman, Voskuil. Nay: Brunner. There being no further business, the Council convened into closed session at 11:02 AM. These minutes are not official until approved by the City Council. David T. Godek Deputy Clerk-Treasurer PROCEEDINGS OF THE CITY COUNCIL CITY OF JANESVILLE, WISCONSIN SPECIAL MEETING JUNE 15, 2009 VOL. 60 NO. 8 Special meeting of the City Council of the City of Janesville held in the Municipal Building on June 15, 2009. The meeting was called to order by Council President Truman at 5:00 PM. Present: Council President Truman, Councilmembers Brunner, McDonald, Rashkin, Steeber, and Voskuil. Councilmember Perrotto was absent. Councilmember McDonald moved to convene into closed session, pursuant to Wisconsin Statute Section 19.85(1)(e) for the purpose of deliberating or negotiating the investment of public funds, or conducting other specific public business, whenever competitive or bargaining reasons require a closed session, specifically setting the negotiating/bargaining terms and conditions for investing public funds, seconded by Councilmember Steeber and passed by unanimously. There being no further business, the Council convened into closed session at 5:02 PM. These minutes are not official until approved by the City Council. Jean Ann Wulf Clerk-Treasurer JANESVILLE CITY COUNCIL LICENSE AGENDA 6/22/2009 RECOMMENDED A. ELECTRICIAN – ORIGINAL Daniel J. Clark PO BOX 474, New Glarus, WI Kurt R. Nimmer 2820 Lime Kiln Rd., Green Bay, WI B. AMUSEMENT DEVICE LICENSE-ORIGINAL MZ GRIZZ, LLC d/b/a MZ GRIZZ Terri K. Fleming 721 Center Ave. C. ALCOHOL LICENSE RENEWALS FOR THE 2009-2010 LICENSE YEAR (See Attached List) D. AMUSEMENT CENTER-RENEWALS FOR THE 2009-2010 LICENSE YEAR (See Attached List) E. AMUSEMENT DEVICE-RENEWALS FOR THE 2009-2010 LICENSE YEAR (See Attached List) F. ELECTRICIANS-RENEWALS FOR THE 2009-2010 LICENSE YEAR (See Attached List) G. SIGN ERECTOR-RENEWALS FOR THE 2009-2010 LICENSE YEAR (See Attached List) DENIED H. OPERATOR LICENSE – ORIGINAL SUHEIDY V. ROMAN 120 Waveland Rd. 2009-2010 License RenewalsCity of Janesville6/18/2009 Page 1 of 1 TRADE NAMEOWNER NAMELOCAL ADDRESSADDRESSCITYSTZIP AMUSEMENT CENTER PATTI'S RD SALOON, JANESVILLEWI53545 ROAD DAWG SALOON & EATERY3502 MILTON AV3502 MILTON AV INC. AMUSEMENT DEVICE LAKE GENEVAWI53147 FIVE T'S VENDINGFIVE T'S VENDING2020 MILTON AVE.910 MADISON PATTI'S RD SALOON, JANESVILLEWI53545 ROAD DAWG SALOON & EATERY3502 MILTON AV3502 MILTON AV INC. 13 N FRANKLIN JANESVILLEWI53545 STEVE & HOLLY'SHOLLY LYNN MILZ13 N FRANKLIN STREET STREET ELECTRICIAN 275 RODNEY RD / PO BOX CAMBRIDGEWI53523 AB ELECTRIC OF SOUTHERN WI, INC.ALSTON, LANCE ENONE 399 1211 STORRS LAKE RDMILTONWI53563 CAP ELECTRIC, INCJACKSON, ROBERT ANONE 2928 COUNTY RD MNSTOUGHTONWI53589 ELECTRICAL SOLUTIONS INC.ESCH, BERNARD P.NONE GUENTHER ELECTRIC OF 220 LIBERTY AVE.BELOITWI53511 BROOKS, JEREMIAHNONE WISCONSIN INC. 6976 MICHELLE DR.ROCSOEIL61073 POFF ELECTRICCAMPFIELD, YOHON R.NONE P.O. BOX 468WHITEWATERWI53190 STA-LITE CORP.JONES, JEFFREY R.NONE WALKOWIAK, DANIEL 2934 S. 9TH ST.MILWAUKEEWI53215 WALKOWIAK ELECTRIC INC.NONE W SIGN ERECTOR 5129 FOREST HILLS CTLOVES PARKIL61111 CORPRO SCREENTECH, INC.FOSTER, JEFFNONE POLICE DEPARTMENT MEMORANDUM June 8, 2009 TO: City Council FROM: Steven J. Kopp, Deputy Chief of Police SUBJECT: Licenses and Recommendations of the Alcohol License Advisory Committee including an appeal of the denial of a bartender license for Suheidy V. Roman On May 20, 2009, Suheidy V. Roman applied for a City of Janesville Operator’s License. On May 21, 2009, I denied the application based upon a significant history of arrests, including a felony offense. Ms. Roman appealed the denial to the Alcohol License Advisory Committee (ALAC). At the June 2, 2009 meeting, the ALAC, on a 3-2 vote, upheld the denial. Ms. Roman indicated she will appeal to the Common Council. The following chart shows the most recent arrest history of Ms. Roman: Date Offense 6/2/2009 Warrant-Contempt of Court 9/18/2008 Disorderly Conduct 7/1/2004 Intimidate a Witness 5/6/2003 Battery-Domestic Abuse 7/17/1997 Armed Robbery Use of Dangerous Weapon Concealing Identity Though there have been instances when a felony offender has been granted an operator’s license, they typically have not involved records of arrest as serious as Ms. Roman’s. In the list of arrests above, the warrant arrest stems from her failure to pay the fine from the 2008 Disorderly Conduct arrest. That arrest involved an incident at bar closing time in the parking lot of a downtown bar in which she confronted an individual with a wooden bat in her hand. In her statement before the ALAC on June 2, 2009, Ms. Roman said that her life has changed since the felony arrest. She further reported that she has held an Operator’s License and worked as a bartender in a number of municipalities over the past ten years. cc: Eric Levitt, City Manager Jacob J. Winzenz, Director of Administrative Services 1 Community Development Department Memorandum June 22, 2009 TO: Janesville City Council FROM: Al Hulick, Development Specialist SUBJECT: Final CSM 09003-C, Hammy’s Inc., 1 lot on Center Avenue. I. RECOMMENDATION The Plan Commission and Community Development Department recommend that the City Council support a motion to approve Final CSM 09003-C subject to the following conditions: 1. Payment of land division assessments for the construction of sidewalks $5,695.14) (along the Center Avenue frontage of Lot-1. 2. Payment of any outstanding special assessments including taxes owed (the applicant should contact the City Clerk’s Office regarding this item). II. CITY MANAGER RECOMMENDATION I concur with the staff recommendation. III. REQUEST Hammy’s Inc. has requested the approval of a 1.28 acre one-lot CSM to accommodate the expansion of their existing building located at 2131 Center Avenue. The CSM will combine the parcel which is currently developed with Hammy’s Roadside Bar with the undeveloped parcel to the north to accommodate the proposed expansion project and to comply with setback regulations of the Zoning Ordinance. IV. ANALYSIS A. The applicant proposes to create a 1.28 acre lot in order to expand their existing 1,890 square foot bar located at 2131 Center Avenue. Although a site plan for the proposed expansion has not been submitted for review, staff is aware of the applicant’s intent to expand their existing facility, and the CSM will allow for that expansion to comply with the Zoning Ordinance. B. The Pedestrian Transportation Corridor Plan adopted by the City Council on 14 January 2008 establishes an official sidewalk map that affects all streets in the City of Janesville. The map identifies the subject portion of Center Avenue as part of the “yellow sidewalk” category which signifies future planned, unfunded sidewalk. In accordance with the Sidewalk Ordinance, planned unfunded sidewalk is to be constructed within seven (7) years from the date of the adoption of the Pedestrian Transportation Corridor Plan. Therefore, this survey is subject to the special assessments for the construction of sidewalk improvements to be constructed at some time as determined by the City Engineering Department before January 14, 2015. C. The survey dedicates a 50-foot wide portion of right-of-way along the Center Avenue for the construction of a future public access road. D. The final survey includes all existing utility easements and additional utility easements as requested by the utility companies having rights to serve the area. Existing utility easements remain in effect unless specific action is taken to release said easements. E. The applicant should contact the City Clerk’s Office regarding any outstanding taxes, special assessments, or other fees which must be paid. V. PLAN COMMISSION ACTION – June 1, 2009 The Plan Commission unanimously agreed to forward Final CSM 09003-C to the City Council with a favorable recommendation subject to the conditions listed in Section I. cc: Duane Cherek Brad Cantrell ACCOUNTING DIVISION MEMORANDUM June 15, 2009 TO: City Council FROM: Patty Lynch, Comptroller SUBJECT: Financial Statement for the Month of May 2009 The City prepares its Financial Statements in accordance with generally accepted accounting principals using the modified accrual method of accounting and is audited annually by Baker Tilly Virchow Krause, LLP. We prepare interim financial statements for the Council’s review on a monthly basis. Division and Department Heads are responsible for monetary expenditures to ensure budget compliance. Revenues and expenditures are projected to year-end in June and September. Key operating funds include the General Fund, Water and Wastewater Utilities, and Sanitation. A summary of their performance to budget, as compared a three-year average, is presented in the following graphs. EXPENDITURE SUMMARY The graph below indicates expenditures are being made according to budget. Sanitation is underbudget trends due to the reduced volume of refuse at the landfill. Year-To-Date April ExpendituresCompared to Three-Year Average Current YTD3 Yr. Avg. 45% 40% Percent of Total Budget 35% 30% 25% 20% 15% 10% 5% 0% General FundWater -Wastewater - OperatingOperatingSanitation April 2009 Financial Statement May 15, 2009 Page 2 REVENUE SUMMARY The graph below indicates General Fund, Water, and Wastewater revenue has been earned as anticipated. Sanitation fund is below trend due to decreased tonnage of waste collected at the landfill. Year-To-Date April RevenuesCompared to Three-Year Average Current YTD3 Yr. Avg. 50% 45% Percent of Total Budget 40% 35% 30% 25% 20% 15% 10% 5% 0% General FundWaterWastewaterSanitation Other items of interest in the Financial Statement are as follows: Proprietary Funds (pages 4) ? Stormwater Utility—The Stormwater Utility has a deficit operating cash balance of $444,403 at May 31, 2009. This is because revenue is billed on a quarterly basis (Approximately $483,450) after expenditures have been made. ? Transit System—Transit reports a negative cash balance of $614,517 due to the timing of grant reimbursements. Special Revenue Fund Balance (page 5) ? The Golf Courses fund has a negative fund balance of $70,477. This is due to the January transfer of its debt service payment ($96,764) to the debt service fund. ? TIF 3 has a positive balance of $283,908. The positive balance will be used to repay the general fund advance (plus accrued interest.) ? At May 31, 2009, the TIF districts have a combined deficit fund balance of $1,127,796. However, TIF projections indicate the districts will reach a positive fund balance before April 2009 Financial Statement May 15, 2009 Page 3 they expire. ? Landfill long-term care of site #3023 ($115,622) will be reimbursed by an insurance policy we have in place for post closure care. Capital Projects Fund (page 6) ? The Riverfront Property Acquisition account has a deficit balance of $198,628 primarily due to the purchase of the Westphal and Energetics properties. Funding will be provided via a Janesville Foundation Riverfront Reclamation Grant. ? The Reuther Way Project has a deficit balance of $50,193 at 5/31/09. It is anticipated funding will be provided with 2009 General Obligation note issue. ? The City incurred expenditures in conjunction with road projects on Highway 11 from Wright Road to Highway 14 ($185,685). These costs will be funded with future special assessments or General Obligation note issue. ? Landfill Construction- Phase 2 has a negative balance of $290,319. This project will be funded with the 2009 General Obligation note issue. ? Funding for Borrowed Street Maintenance account will be provided with the Randall Avenue State LRIP funding ($156,261). General Fund Unreserved Balance (pages 7-8) ? Snow removal has a balance of $143,977 at May 31, 2009. A representative of the Administrative Services Division will be available at the Council th Meeting on June 22 to respond to any questions Council may have relative to these reports. Once Council is satisfied, acceptance of the Financial Statement by consent and placing them on file would be in order. /Attachments Cc: Jacob J, Winzenz, Director of Administrative Services Eric J. Levitt, City Manager Community Development Department Memorandum June 22, 2009 TO: Janesville City Council FROM: Gale Price, Building & Development Services Manager SUBJECT: Continued public hearing and action on a proposed ordinance rezoning property located at 120 North Crosby Avenue from O1, Office/Residence District, to B3, General Commercial District (File Ordinance No. 2009- 437). RECOMMENDATION The Plan Commission and Community Development Department recommend that following a public hearing, the City Council modify the rezoning request by designating and approving the zoning of the site B2, Community Shopping District instead of the requested B3, General Business District zoning (due to concerns regarding other permitted uses allowed in the B3 Zoning district) and adopt Revised Ordinance No. 2009-437 approving the rezoning of 120 North Crosby Avenue from O1 to B2. CITY MANAGER RECOMMENDATION I concur with staff’s recommendation. One issue that did come to my attention is the fact that in the past when it served banquets, there were concerns at times from the neighborhood about noise. Staff believes that those concerns will be addressed via the conditional use permit. SUGGESTED MOTION Move to adopt Revised Ordinance No. 2009-437 rezoning the property at 120 North Crosby Avenue from O1 to B2. REQUEST Tim Richards has requested the rezoning of property located at 120 North Crosby Avenue from 01, Office/Residence District, to B3, General Commercial District. The applicant is requesting the rezoning to a commercial classification to allow the establishment of a small banquet hall in the lower level of the building. Before the first floor was converted to an office use, the entire building was the former location of the Moose Club. The property has been zoned O1 since the citywide rezoning in 1981. Even though fraternal organizations rent their buildings for occasional assembly activities and banquets, a banquet hall is not a permitted use in the O1 District. Such a use is a conditional use in the B2, Community Shopping District and a permitted use within the B3, General Commercial District. ANALYSIS A. The subject property is a 1.6 acre parcel located at the northeast corner of West Wall Street and North Crosby Avenue. The property is currently used as office space on the first floor. The lower level is designed to be used as a meeting and conference area for the occupants of the building. The owner would like to modify the use of the lower level space to rent the area as a banquet hall. The current zoning of O1 does not allow a banquet hall. Such a facility is allowed as a permitted use in the B3 District and a conditional use in the B2, Community Shopping District. B. The building is the former location of the Moose Club, which is now located at Rockport Road and Crosby Avenue. The Moose Club is a fraternal organization which is a permitted use in the O1 District. Although it is common practice that a fraternal organization rents out their building for banquets, the Zoning Ordinance does not permit a banquet hall as a permitted or conditional use within the O1, Office/Residence District. Renting of a fraternal organization building for an occasional banquet is considered to be accessory to the principal use, which is the fraternal organization use. C. The zoning classifications and uses surrounding the property include B3, General Commercial District to the south and south west. The zoning to the east and northeast includes R2, Limited General Residence District. The property directly north of the site is zoned R3, General Residence District and the property to the direct west is zoned O1, Office/Residence District. The land uses surrounding the site include commercial uses to the south including a fast food restaurant and a tavern. To the east and northeast properties are used for single family residence. The lot directly to the north of the site is undeveloped and the lot to the direct west is used as a dental clinic. D. The newly adopted Comprehensive Plan designations are similar to the current zoning pattern. The subject property is designated as appropriate for office use. The properties to the south are designated as appropriate for Planned Mixed use, which is a “controlled mix of commercial and residential” development. Properties to the east and northeast are designated for single family residence. The vacant lot to the north is designated as appropriate for mixed residential and the property to the west is appropriate for office use. Mixed residential focuses on permitting three or more residential units on a lot as some form of multiple family residential developments. E. Although the property is designated for office use, the site is located among a number of other land uses designated. Subsequently the site can be designated as a “transition” location between various land uses. The Comprehensive Plan includes an element of generality in the sense that zoning designations can reflect land use and zoning designations of the immediately surrounding parcels as an element of transition, depending upon the appropriateness of the site for the particular designation. The following policies are found within the Comprehensive Plan which would be applicable: a. Provide for some flexibility in land use designations in areas planned for non- residential development to accommodate a range of commercial, industrial and office development. b. Plan for logical transitions between potentially incompatible land uses and avoid locating potentially conflicting land uses adjacent to each other. Require that potentially incompatible uses are buffered from one-another through the use of landscaped buffers, open space uses, or transitions of less-intensive uses. c. Allow some flexibility in determining the mix of commercial, industrial and office uses in areas designated within any of the Future Land Use categories, per the review and discretion of the City Plan Commission. F. The Comprehensive Plan includes policies that designate this site as being appropriate for commercial development due to its proximity to commercial development, its location along an arterial street, size of the site, compatibility of the building and property for commercial reuse and the surrounding zoning and land use designations. Although the guiding policies of the Comprehensive Plan indicate that commercial use of the site may be appropriate, Staff does not believe that all types and intensities of commercial uses, such as those permitted within the B3, General Commercial District are appropriate at this location, relative to single family residences.. Specifically the site is a 1.6 acre parcel that includes an 8,000 square foot building footprint currently used for office use. The lower level is 2,800 square feet. The B3 district allows some land uses as a matter of right that may have some land use incompatibilities. Some of those land uses are permitted only as a conditional use in the B2, Community Shopping District which would require additional Plan Commission review and approval following a public hearing and notice to property owners within the area. An example of such a use is a tavern which can be open until 2 a.m. in the B3 District. Such a use can have limited hours in the B2 District, through the conditional use permit process. G. Subsequently Staff believes that it would be appropriate to zone the property to a commercial designation to allow additional uses on the site and within the building. Staff believes that a banquet hall could be an appropriate land use in this location if it is reviewed as a conditional use. Furthermore Staff is concerned about the potential impact of other, more intense land uses permitted within the B3, General Commercial District. With these concerns in mind, the Community Development Department is recommending that following a public hearing, the Plan Commission forward the proposed rezoning of property located at 120 North Crosby from O1 to B3, to the City Council with a recommendation to modify the rezoning request by designating and approving the zoning of the site B2, Community Shopping District instead of the requested B3, General Business District zoning due to concerns regarding other permitted uses allowed in the B3 Zoning district. PLAN COMMISSION ACTION – 8 JUNE 2009 Gale Price, Manager of Building & Development Services, presented the written staff report. Commissioner Zolidis questioned why staff suggests and supports rezoning the property to B2 rather than moving forward with the original request to rezone the property to B3. Price indicated that the Community Development Director made the interpretation that a banquet hall was allowed as a conditional use in the B2 District. Staff is not comfortable with the entire list of permitted uses within the B3 District as they relate to potential impact on adjoining homes. Thus staff is recommending B2 instead of B3. The public hearing was opened and the following person appeared to speak. ? Tim Richards, Owner of 120 North Crosby, stated that his intent is to keep the first floor of the building as an office and use the basement as a banquet hall. He stated that he didn’t intend to move his bar to the building except for in a case of hardship since he rents the current location of his bar. He also stated that he supports the B2 recommendation. There was a motion by Commissioner Zolidis with a second by Commissioner Perrotto to forward the rezoning of property located at 120 North Crosby Avenue from O1 to B2 to the City Council with a favorable recommendation. The motion carried on a 4-0-0 vote. FISCAL IMPACT The property is currently used as office space on the first floor. The lower level is designed to be used as a meeting and conference area for the occupants of the building. The owner would like to modify the use of the lower level space to rent the area as a banquet hall. The current zoning of O1 does not allow a banquet hall. Such a facility is allowed as a permitted use in the B3 District and a conditional use in the B2, Community Shopping District. The building is the former location of the Moose Club, which is now located at Rockport Road and Crosby Avenue. The Moose Club is a fraternal organization which is a permitted use in the O1 District. Although it is common practice that a fraternal organization rents out their building for banquets, the Zoning Ordinance does not permit a banquet hall as a permitted or conditional use within the O1, Office/Residence District. Renting of a fraternal organization building for an occasional banquet is considered to be accessory to the principal use, which is the fraternal organization use. Staff believes that this change in use, and subsequent change in Zoning from O1 to B2 will have a very negligible fiscal impact. c: Duane Cherek Brad Cantrell ÍËÞÖÛÝÌ Í×ÌÛ q Ô»¹»²¼ Æ±²» Ü·¬®·½¬ Þ±«²¼¿®·»Ð¿®µ·²¹ Ñª»®´¿§ Ü·¬®·½¬ Ô±½¿¬·±²Ó¿°Í¸¿°» 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 ìñïìñðç 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 îððù 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 Öóïë 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 ßÌ ÓßÐ ï ÐÔßÒÒ×ÒÙ ÍÛÎÊ×ÝÛÍ ïîð ÒÑÎÌØ ÝÎÑÍÞÇ ßÊÛÒËÛ ÍæÐ®±¶»½¬ÄÐ´¿²²·²¹ÄÝ¿»ÄÖóïëÁÎ»¦±²»ïîðÒÝ®±¾§ ORDINANCE NO. 2009-437 An ordinance changing the zoning classification of 120 North Crosby Avenue from O1, Office/Residence District, to B3, General Commercial District, with a penalty and injunctive relief for a violation thereof as set forth in Section 18.28.010 of the Code of General Ordinances of the City of Janesville. THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS FOLLOWS: SECTION II. The zoning classification of the following described property is hereby changed from O1, Office/Residence District, to B3, General Commercial District: Property located in part of the SW.1/4 and NW.1/4 of Section 35, T.3N., R.12E., City of Janesville, Rock County, Wisconsin, more fully described as follows: Bound on the south by the centerline of West Wall Street, on the west by the centerline of North Crosby Avenue, the north by a line 279.5’ north and parallel to the north line of West Wall Street and on the east by the centerline of North Marion Avenue. SECTION III. This ordinance shall take effect immediately upon adoption by the Common Council, the public health, welfare, peace, tranquility, good order, public benefit, and police power so requiring. 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: Applicant Prepared by: Community Development Department REVISED ORDINANCE NO. 2009-437 An ordinance changing the zoning classification of 120 North Crosby Avenue from O1, Office/Residence District, to B2, Community Shopping District, with a penalty and injunctive relief for a violation thereof as set forth in Section 18.28.010 of the Code of General Ordinances of the City of Janesville. THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS FOLLOWS: SECTION II. The zoning classification of the following described property is hereby changed from O1, Office/Residence District, to B2, Community Shopping District: Property located in part of the SW.1/4 and NW.1/4 of Section 35, T.3N., R.12E., City of Janesville, Rock County, Wisconsin, more fully described as follows: Bound on the south by the centerline of West Wall Street, on the west by the centerline of North Crosby Avenue, the north by a line 279.5’ north and parallel to the north line of West Wall Street and on the east by the centerline of North Marion Avenue. SECTION III. This ordinance shall take effect immediately upon adoption by the Common Council, the public health, welfare, peace, tranquility, good order, public benefit, and police power so requiring. 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: Applicant Prepared by: Community Development Department CITY MANAGER’S OFFICE MEMORANDUM June 9, 2009 TO: City Council FROM:Eric Levitt, City Manager Rebecca Smith, Management Assistant SUBJECT: Second reading, public hearing, and action 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. At their March 9 meeting, the Council asked staff to postpone the introduction of this charter ordinance until May 11, 2009. At the May 11 meeting, Councilmember Brunner said he would sponsor this item along with Councilmember McDonald. 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 has no recommendation on the adoption of this charter ordinance. Recommendation Staff has no recommendation. City Manager Recommendation No recommendation. Suggested Motion: I move to adopt Charter Ordinance 2009-007. 1 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. 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. 2 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. 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 3 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. 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 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 4 September 8, 2008 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. 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 Late February, early applications & choose volunteers for recommendation to Council MarchPresident or entire Council. 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 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. 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, Assistant City Manager/Director of Administrative Services 5 CHARTER ORDINANCE NO. 2009 – 007 A 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. THE COMMON COUNCIL OF THE CITY OF JANESVILLE HEREBY FIND AS FOLLOWS: WHEREAS, according to Section 66.0101, in particular Sections 66.0101(1),(1m),(2),(3), and (5) of the Wisconsin Statutes, a charter ordinance may change the legislative activities of the City of Janesville and may amend a previous charter or charter ordinance; and WHEREAS, Section 64.11 provides that 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 the various boards, commissions and officers; and WHEREAS, Section 64.105 of the Wisconsin Statutes provides that the Common Council in a city which has determined by referendum to operate under the city manager form of government may by charter ordinance allocate powers to the council, president of the council and City Manager in a manner other than provided by Chapter 64 of the Wisconsin Statutes; and WHEREAS, the appointment of members to the Plan Commission (62.23(1)), Board of Review (70.46), Community Development Authority (66.1335(2)), Library Board of Trustees (43.54), and Zoning Board of Appeals (62.23(7)(e)(2)) are governed by various Wisconsin State Statutes; and WHEREAS, Section 2.20.010 of the Code of General Ordinances of the City of Janesville currently provides that the City Manager shall appoint the members to the Board of Review; and WHEREAS, Section 2.48.020 of the Code of General Ordinances of the City of Janesville currently provides as a Charter Ordinance that the City Manager shall appoint the non-Council members to the Plan Commission; and WHEREAS, the Common Council of the City of Janesville now desire to require the Common Council to appoint the non-Council members to the Plan Commission, Board of Review, Community Development Authority, Library Board, and Zoning Board of Appeals following consultation from the Citizens Advisory Committee on Appointments; and WHEREAS, pursuant to Sections 64.105, 62.23(1), 70.46, 66.1335(2), 43.54, 62.23(7)(e)(2) and other applicable provisions of the Wisconsin Statutes, the Common Council of the City of Janesville is empowered to make such a change to the appointment of members to the Janesville Plan Commission, Board of Review, Community Development Authority, Library Board, and Zoning Board of Appeals by charter ordinance. NOW, THEREFORE, THE COMMON COUNCIL OF THE CITY OF JANESVILLE HEREBY DO ORDAIN AS FOLLOWS: SECTION I. Section 2.20.010of the Code of General Ordinances of the City of Janesville is hereby amended to read as follows: 2.20.010 Charter Ordinance - Membership--Appointment--Council approval--Term of office . 2.20.010 Charter Ordinance - Membership--Appointment--Council approval--Term of office . A. In order to create a more objective and unbiased Bboard of Rreview that will be able to examine objections to valuations with impartiality, the Bboard of Rreview shall consist of five residents of the city, none of whom shall occupy any public office or be publicly employed. B. The members of the Bboard of Rreview shall be appointed by the city manager with the approval of the Ccommon Ccouncil and shall hold office as members of the Bboard of Rreview for a single term of five years and until their successor(s) are appointed and qualified. There shall be an exception to the provisions of this section for any appointee who is, by virtue of his/her unique knowledge or critical capacity within an unfinished project, considered by the city manager Common Council to be indispensable at the time of his term expiration. He/she may then be appointed for an additional term. The Council shall take into consideration the recommendations of the Citizen Advisory Committee on Appointments when making appointments to the Board of Review. Pursuant to Section 66.0101 of the Wisconsin Statutes concerning charter ordinances, this charter ordinance shall apply regardless of any other ordinance(s) or Wisconsin State statute(s) to the contrary which shall cease to be in effect in Janesville, pursuant hereto, Section 66.0101(4), and other applicable provisions of the Wisconsin Statutes. C . The members of the Bboard of Rreview shall serve without salary. (Ord. 87-519 s. 3, 1987). D . Alternate members of the Bboard of Rreview may be appointed from time to time and at any time by the city manager with approval of the Ccommon Ccouncil. The city manager Common Council shall decide the number of alternate members to appoint from time to time. Each alternate member shall be a resident of the city, shall not occupy any other public office, shall not be publicly employed, and shall hold office as an alternate for a single term of five years until his/her time expires or he/she resigns. Additional term(s) as an alternate shall be as set forth above. Each alternate so appointed shall be designated by seniority. In the event that a standing member of the board of review is removed or unable to serve for any reason, the alternate with the most seniority shall serve in his/her stead. The Council shall take into consideration the recommendations of the Citizen Advisory Committee on Appointments when making appointments of alternate members to the Board of Review. Pursuant to Section 66.0101 of the Wisconsin Statutes concerning charter ordinances, this charter ordinance shall apply regardless of any other ordinance(s) or Wisconsin State statute(s) to the contrary which shall cease to be in effect in Janesville, pursuant hereto, Section 66.0101(4), and other applicable provisions of the Wisconsin Statutes. SECTION II . Section 2.24.010 of the Code of General Ordinances is hereby amended to read as follows: Chapter 2.24 LIBRARY BOARD* Sections: 2.24.010 Charter Ordinance – Powers – Duties Created. 2.24.010 Charter Ordinance – Powers – Duties Created. The Llibrary Bboard is created by statute, especially Section 43.26 of the Wisconsin Revised Statutes, and exists by virtue of the statutes, and not by reason of any ordinance. The members of the Library Board shall be appointed by the Common Council. The Council shall take into consideration the recommendations of the Citizen Advisory Committee on Appointments when making appointments to the Library Board. Pursuant to Section 66.0101 of the Wisconsin Statutes concerning charter ordinances, this charter ordinance shall apply regardless of any other ordinance(s) or Wisconsin State statute(s) to the contrary which shall cease to be in effect in Janesville, pursuant hereto, Section 66.0101(4), and other applicable provisions of the Wisconsin Statutes. SECTION III. The contents page of Title 2 of the Code of General Ordinances of the City of Janesville is hereby amended to read as follows: Title 2 ADMINISTRATION AND PERSONNEL* Chapters: 2.04 City Council Meetings 2.08 City Officers--Duties 2.12 Compensation for City Officers and Employees 2.16 Health Department 2.20 Board of Review 2.24 Library Board 2.26 Community Development Authority 2.28 Zoning Board of Appeals 2.32 Committee of Public Works 2.36 Fire Department 2.40 Police Department 2.44 Fire and Police Commission 2.48 Plan Commission 2.52 Civil Defense 2.56 Public Works Contracts 2.58 Maintenance of and Access to City Records 2.60 Destruction of Public Records SECTION IV. Chapter 2.26 of the Code of General Ordinances of the City of Janesville is hereby created to read as follows: Chapter 2.26 COMMUNITY DEVELOPMENT AUTHORITY Sections: 2.26.010 Charter Ordinance - Powers--Duties. 2.26.010 Charter Ordinance - Powers--Duties . The Community Development Authority has the same powers and duties as shown in Section 66.1335 of the Wisconsin Statutes. The commissioners of the Community Development Authority shall be appointed by the Common Council. The Council shall take into consideration the recommendations of the Citizen Advisory Committee on Appointments when making appointments of Community Development Authority commissioners. Pursuant to Section 66.0101 of the Wisconsin Statutes concerning charter ordinances, this charter ordinance shall apply regardless of any other ordinance(s) or Wisconsin State statute(s) to the contrary which shall cease to be in effect in Janesville, pursuant hereto, Section 66.0101(4), and other applicable provisions of the Wisconsin Statutes. SECTION V. Section 2.28.010 of the Code of General Ordinances is hereby amended to read as follows: Chapter 2.28 ZONING BOARD OF APPEALS Sections: 2.28.010 Charter Ordinance - Powers--Duties. 2.28.010 Charter Ordinance - Powers--Duties . The Zzoning Bboard of Aappeals has the same powers and duties as shown in Section 62.23(7) (e) of the Wisconsin Statutes as from time to time amended or renumbered. The members of the Zoning Board of Appeals shall be appointed by the Common Council. The Council shall take into consideration the recommendations of the Citizen Advisory Committee on Appointments when making appointments to the Zoning Board of Appeals. Pursuant to Section 66.0101 of the Wisconsin Statutes concerning charter ordinances, this charter ordinance shall apply regardless of any other ordinance(s) or Wisconsin State statute(s) to the contrary which shall cease to be in effect in Janesville, pursuant hereto, Section 66.0101(4), and other applicable provisions of the Wisconsin Statutes. SECTION VI. Section 2.48.020 of the Code of General Ordinances is hereby amended to read as follows: 2.48.020 Charter Ordinance – Plan Commission Membership and Appointments “ – Council Confirmation . The City Plan Commission shall consist of two members of the Common Council and five city citizen members. The members of the Plan Commission shall select their own presiding officer, from time to time. The Council Members on the Plan Commission shall be appointed by the Council President, subject to confirmation by the Common Council, in accord with Janesville Charter Ordinance No. 80-A adopting Charter Ordinance Section 2.04.150. The City Manager Common Council shall continue to appoint the non-Ccouncil Mmembers to the Plan Commission., which appointments shall remain not subject to Ccouncil approval. The Council shall take into consideration the recommendations of the Citizen Advisory Committee on Appointments when making appointments of non-council members to the Plan Commission. Pursuant to Section 66.0101 of the Wisconsin Statutes concerning charter ordinances, this charter ordinance shall apply regardless of any other ordinance(s) or Wisconsin State statute(s) to the contrary which shall cease to be in effect in Janesville, pursuant hereto, and Section 66.0101(4), and other applicable provisions of the Wisconsin Statutes. SECTION VII . This Charter Ordinance, pursuant to Section 66.0101(5) of the Wisconsin Statutes, shall take effect sixty (60) days after its passage and publication as a Class 1 notice, under Ch. 985 and Section 66.0101(3) of the Wisconsin Statutes. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner Loasching Eric Levitt, City Manager McDonald Rashkin ATTEST: Steeber Truman Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: Assistant City Attorney Proposed by: McDonald and Brunner Prepared by: Assistant City Attorney Community Development Department Memorandum Date: June 22, 2009 TO: City Council FROM: Terry Nolan, Associate Planner RE: (A) Second reading, public hearing, and action on a proposed ordinance designating North Franklin Street, between Highland Avenue and Mineral Point Avenue as a two-way street. (File Ordinance No. 2009–435) (B) Second reading, public hearing, and action on a proposed ordinance change adding the intersection of North Franklin Street/Highland Avenue/North Pearl Street and North Washington Street to the list of all-way stop intersections (File Ordinance No. 2009–436) RECOMMENDATION The Administration recommends that following a public hearing, the City Council support a motion to adopt Ordinance No. 2009–435, designating North Franklin Street between Highland Avenue and Mineral Point as a two-way street; and Ordinance No. 2009–436, adding the intersection of North Franklin Street/Highland Avenue/North Pearl and North Washington Street to the list of all-way stop intersections. CITY MANAGER RECOMMENDATION I concur with the recommendation. SUGGESTED MOTION Move to adopt Ordinance Nos. 2009-435 and 2009-436. REQUEST Mercy Hospital has approached the City regarding the continued conversion of North Franklin Street to two-way between Mineral Point Avenue and Highland Avenue. The City required Mercy to perform a traffic study to evaluate the impact of such a conversion on its facility and the surrounding uses. The recommendations of the study favor the conversion of Franklin Street. The Dean Riverview clinic and Mercy Hospital support the two-way conversion. The Fire Department is also supportive due to the access improvements it will provide for emergency vehicles traveling to the hospital. ANALYSIS Jackson and Franklin streets were converted to two-way streets between Mineral Point and Rockport Road in order to provide for increased vehicle circulation in the Downtown and adjoining residential areas. The segment between Centerway and Rockport Road was completed in 2006. The segment between Centerway and Mineral Point was completed in September of 2008. The Administration considers both conversions to be successful. Map 1 illustrates the proposed traffic improvements associated with this project. As shown, the conversion will increase vehicle circulation around the Mercy/Dean Campus areas. The conversion to two-way traffic will require that an all-way stop be created at the intersection of Franklin Street, Highland Avenue, North Pearl Street and North Washington Street. The intersection may be controlled with stop signs until such time when the hospital expands or other extensive traffic growth occurs within the area causing a significant increase in traffic. When this occurs, a roundabout is recommended as the optimum long-term solution based on the geometry of the intersection, right-of-way availability and traffic operations. The cost of the necessary intersection modifications, signage, and roadway marking changes is estimated to cost $36,000. If approved, the conversion project will be coordinated with currently scheduled street improvement projects on North Franklin Street and North Washington Street and be converted to two-way in the summer of 2009. The funds to cover these improvements will be provided from TIF District 33, which is the district around Mercy Hospital’s latest building addition. CC: Brad Cantrell, Community Development Director Duane Cherek, Manager of Planning Services Map 1: Traffic improvement to N. Franklin Street ORDINANCE NO. 2009 – 435 An ordinance changing North Franklin Street from Mineral Point to Highland from a one way street to a two way street , with a penalty for violations thereof as provided in JGO Section 10.20.020. THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS FOLLOWS: SECTION I. Section 10.20.010 D. of the Code of General Ordinances of the City of Janesville is hereby repealed in its entirety. D. North Franklin Street, from its intersection with Mineral Point Avenue northerly to its intersection with Highland Avenue, is designated as a one-way street on which traffic shall move in a northerly direction only at all times. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner McDonald Eric Levitt, City Manager Perrotto Steeber ATTEST: Truman Rashkin Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: ______ City Attorney Proposed by: Community Development Department Prepared by: Community Development Department And City Attorney ORDINANCE NO. 2009 – 436 An ordinance adding North Franklin Street/Highland Avenue/North Pearl Street/North Washington Street to the list of designated All-Way Stop Sign Intersections, with a penalty for violations thereof as provided in JGO Section 10.04.020. THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS FOLLOWS: SECTION I. Section 10.18.020 of the Code of General Ordinances of the City of Janesville is hereby amended by creating and adding the following subsection: QQ. North Franklin Street / Highland Avenue / North Pearl Street / North Washington Street. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner McDonald Eric Levitt, City Manager Steeber Perrotto ATTEST: Truman Rashkin Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: City Attorney Proposed by: Applicant Prepared by: Community Development Department ASSESSOR’S MEMORANDUM 11 June 2009 TO: City Council FROM: Richard Haviza, City Assessor SUBJECT: City Council discussion and direction to staff on approach to comply with State Statutes concerning property valuation. Summary State law requires a revaluation of property assessments for 2010 or 2011. Decisions on completing the task have been delayed since this topic was last discussed with the Council in an October 2008 study session. It is now crucial that decisions necessary to complete revaluation activities for 2010 or 2011 be expedited. A critical decision rests with the City Council in the form of implementing policy through funding. Assessor Division Staff continues to support a traditional Full Revaluation, including property inspections, as that approach: ? Is recommended by the Wisconsin Department of Revenue; ? Historically results in the best values (accurate and equitable); ? Provides the best foundation for efficiency / effectiveness in future operations; and ? May be prudent given the controversial history of the last revaluation in Janesville. A Full Revaluation requires resources exceeding normal Assessment Division staffing and has significant cost. Considering that and the dynamic change in the real estate market and overall economy in the past year, alternatives to a Full Revaluation should be reviewed. This memo outlines service options for City Council consideration and requests direction for proceeding. Division Recommendation Assessment Staff recommends the City Council support: 1. A Full Revaluation of all residential and commercial properties for the 2011 Assessment Roll, said revaluation to be based on the interior/exterior inspection of all structures; and 2. Authorize the City Manager to make application for a Wisconsin State Trust Fund loan not to exceed $1,750,000 (the amount of the highest cost proposal). Actual cost to reflect selected service provider, contract terms and loan interest cost. Suggested Motion (Division) I move to support a 2011 Full Revaluation of all properties based on interior/exterior inspections and authorize the City Manager to make application to the Wisconsin State Trust Fund for a loan not to exceed $1,750,000 in order to contract for the professional services necessary to complete the revaluation. 1 City Manager Recommendation Based on current real estate market trends that for 2010 might place residential property values very close to Full Value (Fair Market Value), the City Manager recommends the City Council support: 1. Limited property revaluation activities for the 2010 Assessment Roll. Revaluation activities will consist of a Full Revaluation of commercial class properties based on interior/exterior inspections of only that class of properties. 2. The estimated cost would be mostly covered by the 2009 appropriations and prior year encumbrances. 3. Should residential values not fall naturally into compliance for 2010, Assessment staff could consider completing a Market Update Revaluation of that class of property for 2011. A Market Update would not include residential property inspections for all properties, only those affected by building permits, sales or involving new construction. 4. This approach would allow the City to allow the market to come back in compliance based on initial trends in 2010 and allow the City to not borrow for operating costs. Suggested Motion (City Manager) I move to direct the City Manager to proceed with a Full Revaluation of commercial class properties and that any revaluation of residential class properties would consist of a Market Update based on maintenance level inspections of properties subject to building permits, sale and new construction. Primary Discussion Points Considering the depth of information included in this memo the following is a list of discussion points that it may be beneficial to focus on: ? Real Estate Market / Economic Conditions. ? Property Inspections. ? Why revalue commercial but not residential properties? ? Cost. ? History. Request Wisconsin State Statute 70.05 mandates the service resulting in the requested action. Background The property assessment process is legislatively mandated but locally funded and completed. Property assessment is the process of estimating the Full Value (Fair Market Value) of each taxable property. Assessed values are used in the equations to calculate the tax rate and individual property tax bills. Revaluation is the process of periodically insuring that property is assessed equitably and as near Full Value as possible. The last revaluation was in 2002. Assessments last met the definition of Full Value in 2004. Based on Statutes property must be assessed at Full Value by 2011. The need for a revaluation and a proposal for completing the task were first presented to the Administration in 2006. Determining how the revaluation will be accomplished remains an open question resulting from delays in the decision making process. Those can be attributed to: competing 2 organizational priorities; a transition in upper management; tax levy limits and budget impacts; and the general public’s dislike and misunderstanding of the revaluation process. What service is required? The primary requirement is to value taxable properties at Full Value for the 2011 Assessment Roll. Integral to completing that is maintaining the City’s property database, which can be accessed on the city website. Data on the physical characteristics of each property is collected and used in the process. Approximately 40 data fields are maintained for each parcel. There are approximately 21,000 residential, 1,350 commercial and 300+/- other improved parcels that we would attempt to inspect during a Full Revaluation. According to whom is the service mandated and defined? The customers and stakeholders of the service include: ? Property Owners – have a vested interest in assessed values as that is the distribution component of the property tax equation; ? The Wisconsin Department of Revenue – responsible for overseeing legislated assessment operations and for completing the annual equalization process and distribution of various state aids; ? Users of assessment and property data – individuals and organizations such as realtors, insurers, attorneys, mortgage lenders, builders, private appraisers, non- profits and government agencies use assessment and property data for business and personal real estate decisions. ? The City Council – through funding establishes policy and service levels for assessment operations. ? City Administration, Departments and Division Staff – use assessment and property information in daily activities associated with nearly all services. ? Assessment Division Staff – responsible for all aspects of maintaining the property database and establishing assessed values. How is the service defined? Full Value (Fair Market Value) is generally defined as the selling price realized through informed, open and competitive negotiation. Although detailed analysis of the level and uniformity of assessments is completed, under Statute 70.05 compliance is defined as an assessment ratio of 90–110% of Full Value (ratio = assessed values / sale prices), with the major classes of residential and commercial also within that range. The following table and chart summarize the overall ratios for 2002-08 and include an estimate for 2009. Year-to- date sales data, which is relevant to the 2010 assessment cycle, indicates that sale prices have continued to decline, potentially mirroring the national trend of hovering at near 2002 values. Staff has yet to field validate any 2009 sales and it is impossible to predict if current trends will continue thru 2009 and beyond or if conditions will stabilize or improve. In 2002 the average residential assessment was $107,800. From 2002 - 2008 property values increased as established by sale prices. During that time no revaluation occurred and assessed values did not change unless a property was affected by physical changes that impacted its individual value. The chart illustrates that the Full Value of the average assessed value home increased from $107,800 to $134,800 between 2002 and 2008. Thus correspondingly the ratio for the 2002 average assessed home decreased each year from 2002 – 2008 bottoming out at 79.98% as of 1/1/2008 ($107,800 / 134,800 = 79.99%). 3 Assessment Ratios Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (est) (last reval)(required) % FV 97.99 96.24 92.55 88.72 84.79 81.89 79.99 84+/- ? 100+/- Why do we need this service? Other than compliance with a statutory mandate, why should customers and stakeholders care if we complete a revaluation? Following are benefits of periodic revaluation: ? Verify the accuracy, completeness and consistency of quantitative and qualitative property data; ? Accurately and equitably value properties to their Full Value; and ? Insure property owners pay only their proportionate share of local property taxes, hopefully no more or no less. What are we going to do and how are we going to do it? The technical components of the assessment process are defined by State Statute, the Wisconsin Property Assessment Manual, the Uniform Standards of Professional Appraisal Practice, case law, best practice and limited local considerations. As with all public service the goal is high value at low cost. When answering two questions, what and how, the City Council must weigh customer and stakeholder considerations and through policy and funding actions satisfy the statutory mandate. The following outlines options for completing the required task. General Approaches to Revaluation The DOR has guidelines establishing three alternative approaches to revaluation: Full Revaluation, External Review Revaluation and Market Update. Each alternative approach involves component tasks including but not limited to: property inspections o neighborhood analysis o sales analysis o data entry o computer system calibration and testing o valuation, value analysis and verification o 4 assessment roll preparation o distribution of assessment change notices o conducting the Open Book and Board of Review appeals process o defending values in subsequent appeals o public relations o Property inspections are typically an integral task in the revaluation process. They are completed to verify the quantitative and qualitative data for each parcel, which is then used in valuation models. Statutes outline that “Real property shall be valued … from actual view or from the best information the assessor can practicably obtain…” The “actual view” element has come to generally mean a full interior/exterior inspection to collect and verify data on the physical characteristics of each parcel. The following DOR guidelines address the recommended level of property inspections: ? Full Revaluation. Includes interior/exterior inspections of all parcels and is recommended when a full revaluation has not been performed for 10 years. ? External Review Valuation. Includes exterior inspections of all parcels and is acceptable when property data issues can be verified without interior inspection. ? Market Update. Performed when there is confidence in the accuracy of property data and a full revaluation has been completed in the past 5 years. Property inspections are not completed for all properties. Full Revaluation is the approach historically used in Janesville. Janesville’s last Full Revaluation was in 1998 and was based on property inspections conducted in 1996-97. In the years 2000-02 Janesville used a hybrid model of annual Market Updates coupled with inspecting 20% of properties each year. Thus in a five year cycle all properties would likely be inspected at least once. That model was discontinued in 2003 based on property owner protests. Since then there has been no City Council / Administrative direction on approach for the next revaluation. Methods of Completing a Revaluation The following options are generally available for completing a revaluation: ? Contracted. Contracting with a professional revaluation firm. Working cooperatively with City staff, the firm performs data collection, prepares assessments and defends values at Open Book and Board of Review. ? Division Staff. Use of experienced Division Staff, often augmented with temporary employees to assist in data collection / entry and possibly contracted assistance from a professional revaluation firm for valuation tasks. ? Do Nothing. Failure to voluntarily comply would, by statute, require the DOR to bid the work, hire a private firm and complete the revaluation (essentially the same as Contracted method). The total cost of services (contract and DOR) is billed to the community. This logically results in the highest cost and the City gets no input or control in this process. ? An ala carte approach. Under this method consideration can be given to changes in service levels to minimize various component costs. It is most applicable to the Market Update concept. Considering the high cost to the other 5 methods and the challenging economic conditions confronting city budgets, a combination of components could be considered. Tasks may include: Contracting for a Full Revaluation of commercial properties for 2010 o including full inspections of all structures. Exclude property inspections for residential properties not affected by o new construction, building permits or sales. Alternative means of data verification could be considered rather than mass property inspections. Examples of alternative approaches to data verification might include an in-the-car, curb-side review of all parcels; asking residential property owners to verify limited data by mail (a decision would be needed regarding when call back inspections would occur); and technology options including use of air photos. The alternatives in this option all depart from the historical service level of interior/exterior inspections and thus should be preceded by a policy discussion. This approach would be coupled with a full commercial revaluation. Not completing a residential revaluation but instead hedge that the o current trend in declining property values will continue through 2009 and thus statutory compliance might be achieved naturally in 2010 and/or 2011. This should be coupled with a full commercial revaluation for 2010 as that class of property is less likely to naturally fall into compliance. This approach has risk should values not drop sufficiently to achieve compliance the DOR would order a revaluation as outlined in the Do Nothing approach. Considerations for Choosing Revaluation Approach and Methods There are a number of factors to consider in choosing the approach and method for completing a revaluation including the following: ? Property Data. Property data is the foundation for valuation and many other public and private activities. Real estate is dynamic with physical and market attributes constantly changing. Collecting and verifying data occurs through inspections. Approximately 30% of properties were last inspected in 1996-97 and only 25% have had inspections in the last 5 years. A sampling of data accuracy indicates that 24% of properties have completely accurate data, 74% have data that is 90% or better and 2% have data less than 90% accurate. ? Division Staffing. Division staffing is based on completing annual assessing, not the extra tasks of revaluation. Staff is young in tenure and experience with an average of just 3 years in the profession. Three of six staff members (50%) are new to the office and the profession since January 2008. ? Software. Staff is in the process of implementing new custom Computer Assisted Mass Appraisal (CAMA) software. Implementing the CAMA will consume significant staff resources through 2009 and into 2010 thus reducing availability for revaluation activities. ? Community Acceptance. The 2002 revaluation resulted in controversy and a divisive citizen petitioned DOR review of assessment practices. Although the DOR ruled favorably on assessments and staff performance, citizen skeptics likely remain. To dispel that, the revaluation should include a commitment to accuracy and equity in assessments as mandated by property owners. 6 ? Public Relations. Regardless of the reality that assessments are based on sound economic principals and factual data, and that the revaluation process itself is revenue neutral, property owners typically receive the results with an element of fear and emotion. To counter misinformation and panic, a significant education/ public relations effort is necessary. ? Cost. Professional services, property inspections and data analysis tasks associated with revaluation are labor intensive and expensive. Levy limits impact how those can be funded. Response to Request for Professional Services Considering the above challenges, in March 2008 staff issued a Request for Proposals (RFP) for revaluation services. The RFP presented two inspections options for residential properties, 100% or 30% (primarily those not visited during the 2000-02 cyclical inspections). The effort produced three bids from: Tyler/CLT in st West Allis, WI; 21 Century Appraisal of Middletown, PA; and Associated Appraisal Consultants Inc of Appleton, WI. RFP responses were evaluated based on written content and interviews. Tyler/CLT st was the strongest candidate (89%); followed by 21 Century (80%); and Associated (70%). Tyler/CLT’s rating reflects their depth of resources, Wisconsin experience and familiarity with our assessment operations. Tyler/CLT provided us limited st contract assessment services from 5/03 thru 7/08. 21 Century rates well on public relations/education, solid valuations and knowledge of the CAMA software we are installing. Their shortcoming is knowledge/experience with Wisconsin’s assessment law. Although viable, Associated Appraisal lacks experience with parcel counts our size (22,000+) and knowledge of our CAMA software. Original bids were due on April 1, 2008. Based on delays in the decision making process the original quotes became void. We’ve received updated estimates for a 2011 revaluation and found, as expected, that costs increased. Following are current estimated costs for the two revaluation options. We have not fully explored costs under the Ala Carte method other than the commercial component. Regarding residential properties, it appears more efficient and effective to first make the policy decision and then arrive at the cost based on the assumption that reduced service levels would logically result in less cost than the alternatives presented below. BID SUMMARY HARRIS/21 st CLT ASSOCIATED Alternative C1 - complete inspection and revaluation of $179,000 $80,000 $121,000 all commercial properties (approximately 1,400 parcels) Alternative R1 - complete inspection and revaluation of $1,229,000 $879,000 NA all residential properties (approximately 21,000 parcels) Alternative EX1 - complete inspection and value $33,000 $40,000 NA estimates for all improved exempt parcels (approx 240) Total Cost of Recommended Approach (C1+R1+EX1) $1,258,200* $999,000 $1,749,600 Alternative R2 - limited inspection (7,000 parcels) and $866,100 $549,000 NA complete revaluation of all residential properties Total Cost Substituting Residential Alt R2 (+C1+EX1) $966,500* $669,000 $1,402,900 In CLT proposal individual Alternative costs are bid as separate from a total revaluation or ala carte. The total cost of * combining all into one revaluation effort represents economy of scale and is therefore less than the sum of the parts. 7 Budget Considerations The following summarizes current and prior year funding considerations for revaluation activities: 2005 - $50,000 Unexpended Division funds encumbered for CAMA data conversion. 2006 - $50,000 Unexpended Division funds encumbered for CAMA data conversion. Both 2005 & 06 funds might be available for revaluation depending on contract specifications. 2009 - $117,700 Budgeted for revaluation activities ($22,700 postage; $17,500 advertising/promotions; and $77,500 – other ½ cost of revaluing commercial properties). Total = $217,700 potentially available funding - although $140,200 is to meet revaluation contract commitments required of City for the reval (postage, advertising, data conversions). Considering financial constraints imposed by legislated tax levy limits, the community’s desire for property tax control and declining economic conditions, funding is not easily budgeted to complete a revaluation. Borrowing is an alternative. Unlike capital projects, borrowing for services is taxable debt resulting in higher interest charges. A review of funding sources for short term taxable debt indicates that a Wisconsin State Trust Fund loan is a choice. An Accounting Division analysis provides the following illustrative annual and total debt service costs. Actual costs will vary based on the details of revaluation activities, interest at time of borrowing (currently 3.5%) and any reduction of borrowed principal through application of potentially available funding or partial funding in future budgets. Annual Payment - Annual Payment - Limited Full Revaluation (Alts Inspection Revaluation Payment Option / Bid C1, R1 & EX1) (Alts C1, R2 & EX1) Price 3-Year Loan for High Bid $616,360 $494,230 3-Year Loan for Low Bid $351,940 $235,680 5-Year Loan for High Bid $382,110 $306,390 5-Year Loan for Low Bid $218,180 $146,110 3 year loan requires annual payments in 2010, 2011 & 2012 5 year loan requires annual payments in 2010, 2011, 2012, 2013 & 2014 Total Payment - Full Total Payment - Limited Revaluation (Alts C1, Inspection Revaluation Payment Option / Bid R1 & EX1) (Alts C1, R2 & EX1) Price 3-Year Loan for High Bid $1,849,100 $1,482,700 3-Year Loan for Low Bid $1,055,900 $707,100 5-Year Loan for High Bid $1,910,600 $1,532,000 5-Year Loan for Low Bid $1,090,900 $730,600 3 year loan total payments from 2010-12 5 year loan total payments from 2010-14 8 Citizen Advisory Committee on Assessing Input In 2003 the City Manager formed the ad hoc Citizen Advisory Committee on Assessing to provide input on public relations issues resulting from the revaluation conducted in 2002. The Committee was active 5/2003 – 9/2004, at which time they completed their original charge. That included the recommendation that following the completion of the next city wide property revaluation, we should enter into a cycle of completing Market Update revaluations every other year. The premise was that the next revaluation, that currently being discussed, would be a Full Revaluation with interior/exterior inspections of all properties. In September 2008 the Advisory Committee was reactivated with a new charge to provide input on public relations efforts associated with a revaluation. In their initial meeting we briefly revisited their prior achievements, including the recommendation on revaluations and property inspection cycles. The Committee continued to support their prior recommendation. What values do we want to uphold in this decision and completing this task? When faced with making decisions on service level changes it is beneficial to consider this critical question. Answering this question can assist in establishing a common definition of success for the task to be completed because without that we will likely not succeed. It will help establish how customers and stakeholders should treat and respond to each other as this necessary service is completed. Will we hold to traditional core values and: ? Be honest with each other and in our expectations; If a reduced service level is chosen, is the community comfortable with the o likely fact that property data and thus some assessments may not be completely accurate? ? Respect each other’s rights within the context of applicable laws and rules; Will participants operate within the normal appeals processes and not move o to politicize the assessment function? ? Act in a responsible and accountable manner; Will participants engage in the process by becoming informed and o knowledgeable of assessment practices and local real estate conditions? ? Demonstrate fairness in decision making without favoritism or prejudice; Will participants look beyond individual situations and respect the relational o integrity of the assessment process? ? Maintain civic responsibility in our common society; Understand that the assessment process is based on statewide laws and tax o policy that is not punitive, but intended to fairly apportion the cost of locally provided public services. Will participants acknowledge that whenever someone deliberately attempts to pay less than their fair share others will pay more? ? Maintain compassion yet recognize that there is no room for subjectivity; Will participants acknowledge that the process is based on factual data and o that assessment staff and appeal bodies cannot respond arbitrarily to individual financial conditions or “perceptions” of value? ? Have the courage to remain true to the charge; If confronted with opposition will participants focus on the legal framework of o the process and remain firm in the commitment to achieve the desired result? 9 Pros and Cons of Approaches and Methods available for consideration The tables on the following pages summarize pros and cons for the various approaches and methods to completing the required revaluation. THE WHAT - APPROACHES TO Full Reval Exterior Review Market Update REVALUATION Reval (Assumption: in all approaches inspections will occur annually for properties subject to new construction, building permits or a sale) Pros of Approach to Revaluation Complies with recommended DOR process X Will likely result in compliance with DOR X X X Level of Assessment Will likely result in compliance with DOR X X X Uniformity within and between classes Property owners have access to all X participation opportunities (full inspections) Builds community trust in the process X Provides customer direct (at their door) X X education & public relations Creates accurate, complete and consistent X property data Results in the most accurate and equitable X assessments. Provides technical development X X X opportunities to Division Staff Assists with CAMA Implementation by filling X X data voids Moderate Value at Moderate Cost X Cons of Approach High Value at High Cost X Reduced Value at High Cost X Service reduction from prior practices X X Less accurate and equitable assessments. X X May reduce long term acceptance of interior X X inspections Completion requires 18-24+ months X X X Property owners do not have access to all participation opportunities (no full X X inspections) 10 THE HOW - METHODS OF Full Reval Exterior Review Market Update COMPLETING A REVALUATION Reval Pros of Method relative to Approach Contracted Access to Access to Access to professional professional professional services results in services results in services results in efficient / effective efficient / effective efficient / effective revaluation along revaluation along revaluation along with Division staff with Division staff with Division staff development. development. development. Division Staff NA NA NA Do Nothing Postpones issue Postpones issue Postpones issue & expense until & expense until & expense until 2012. 2012. 2012. Contracted Commercial Revaluation Low cost solution Low cost solution Low cost solution to most complex to most complex to most complex task. Access to task. Access to task. Access to professional professional professional services results in services results in services results in efficient /effective efficient /effective efficient /effective reval with Division reval with Division reval with Division staff development. staff development. staff development. No Residential Inspections (use Reduce cost by alternative data verification methods) reducing most NA NA labor intensive task. Rely on Declining Residential Property Reduce cost by Values NA NA removing largest task. Cons of Method relative to Approach Contracted High cost. High cost. High cost. Division Staff Insufficient Insufficient Insufficient resources to resources to resources to complete tasks. complete tasks. complete tasks. Do Nothing Likely the most Likely the most Likely the most costly option. costly option. costly option. Satisfies need but Satisfies need but Satisfies need but sacrifices benefit. sacrifices benefit. sacrifices benefit. No City control. No City control. No City control. Contracted Commercial Revaluation Low cost. Low cost but less Current database data accuracy. does not support. No Residential Inspections (use Reduced service alternative data verification methods) and sacrifices NA NA data and value accuracy. Rely on Declining Residential Property Results the same Values as Do Nothing if NA NA values don't fall into compliance. c: Eric Levitt, City Manager Jacob J. Winzenz, Director of Administrative Services 11 DEPARTMENT OF PUBLIC WORKS MEMORANDUM 15 June 2009 TO: City Council FROM: Mike Payne, Engineering Manager SUBJECT: ACTION ON A PROPOSED PRELIMINARY RESOLUTION FOR PUBLIC WORKS BID SCHEDULE “F” – 2009 AND SCHEDULE A PUBLIC HEARING FOR THE FINAL RESOLUTION (FILE RES. NO. 2009-612) ON JUNE 22, 2009 Summary Attached is Preliminary Resolution No. 2009-612 for an assessable project on Bid Schedule “F”-2009. This Resolution includes assessable sidewalk on eight (8) street segments. The majority of these segments were requested by the public. Several segments were added to eliminate small gaps between funded sidewalk proposed to be installed this year. By adopting this Preliminary Resolution, the City is declaring its intent to assess the abutting properties benefiting by these improvements. Recommendation The Engineering Division recommends Preliminary Resolution No. 2009-612 be adopted and the Final Resolution and public hearing be set for Monday, July 13, 2009. Suggested Motion I move to adopt Preliminary Resolution No. 2009-612 and schedule the Final Resolution and public hearing for Monday, July 13, 2009. Attachment cc: Eric Levitt Jacob J. Winzenz j:\agenda review\approved agenda items\2009\6-22-2009\bid schedule f prelim res memo.doc 22 June 2009 (1) Of (2) CITY OF JANESVILLE NEW SIDEWALK INSTALLATION RESOLUTION NO. 2009-612 A Resolution authorizing the installation of certain sidewalks. WHEREAS, the Common Council of the City of Janesville desires the installation of standard concrete sidewalks in front of the parcels of land described below where standard concrete sidewalks have not been constructed; and WHEREAS, the Common Council desires that the construction of these sidewalks be effectuated pursuant to the empowerment and according to the procedures set forth in Wisconsin Statute Section 66.0907; and WHEREAS, the City anticipates that monies, other than the proceeds of any outstanding debit of the City, will be expended by the City with respect to such capital improvements. The City reasonably expects to be reimbursed for such expenditures with proceeds of its debt. The maximum principal amount of debt expected to be issued for the reimbursement of such expenditures is $1,000,000. No funds from sources other than the debt referred to above are, or are expected to be, reserved, allocated on a long-term basis, or otherwise set aside by the City or any entity controlled by the City pursuant to its budget or financial policies with respect to the Projects. This is consistent with the budgetary and financial circumstances of the City. Copies of this Resolution shall be made available for public inspection in the manner required by law. This Resolution is a declaration of official intent under Treasury Regulation Section 1.103.18, as amended and renumbered from time to time; WHEREAS, the expenses to be charged against abutting property owners may be: (a) paid in cash upon completion of the work; or (b) paid with the taxes the first year following completion of the work; or (c) at the election of the property owner, spread over a period of five (5) years with interest at seven percent (7%) per annum on the unpaid balance. The first installment on the five-year plan shall include one-fifth of the principal with the interest for November and December on the unpaid portion and shall be so entered in the tax roll. Each of the subsequent installments shall be entered in each of the annual tax rolls thereafter until all are collected. Deferred payment on the aforementioned installments shall bear interest at seven percent (7%) per annum. NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Janesville, that pursuant to Wisconsin Statute Section 66.0907, standard concrete sidewalks shall be constructed in front of all herein described parcels of property where standard concrete sidewalks have not been constructed along the following street(s): j:\agenda review\approved agenda items\2009\6-22-2009\bid schedule f prelim res 2009-612.doc 22 June 2009 (2) of (2) CITY OF JANESVILLE NEW SIDEWALK INSTALLATION RESOLUTION NO. 2009-612 Item Side Street From To 1. West Alpine Drive E. Milwaukee Street Nantucket Drive 2. South E. Milwaukee Street Alpine Drive 290’ East 3. West Center Avenue W. Holmes Street 440’ North 4. South Elizabeth Street N. Oakhill Avenue 132’ West 5. East S. Sumac Drive Wesley Avenue 115’ South 6. East Kennedy Road USH 14 540’ North 7. East Kennedy Road 865’ N. of USH 14 1,235’ N. of USH 14 8. East Newville Road 828’ N. of USH 14 970’ N. of USH 14 ADOPTED: MOTION BY: APPROVED: SECOND BY: COUNCILMEMBER AYE NAY PASS ABSENT Eric Levitt, City Manager BRUNNER McDONALD ATTEST: PERROTTO Jean Ann Wulf, City Clerk-Treasurer RASHKIN APPROVED AS TO FORM: STEEBER TRUMAN City Attorney VOSKUIL Proposed by: ENGINEERING DIVISION Prepared by: ENGINEERING DIVISION j:\agenda review\approved agenda items\2009\6-22-2009\bid schedule f prelim res 2009-612.doc NEIGHBORHOOD SERVICES MEMORANDUM June 9, 2009 TO: City Council FROM: Kelly Lee, Neighborhood Development Specialist SUBJECT: Acquisition and Demolition of 417 North Washington Street Summary The Neighborhood Services Department has negotiated a purchase price of $39,900 for the 4-unit building located at 417 North Washington. The project would include acquisition and demolition of the poorly maintained vacant home and expanding Washington Park with the vacant lot. Department Recommendation The Plan Commission and the Neighborhood Services Department recommend that the City Council support a motion to approve Resolution 2009-614 authorizing the purchase of the property located at 417 North Washington Street, at a price not to exceed $39,900 for parkland. City Manager Recommendation I concur with the Plan Commission and Neighborhood Services recommendation. Suggested Motion I move to approve file resolution 2009-614 authorizing the purchase of 417 North Washington Street, at price not to exceed $39,900 for parkland. Background The City of Janesville’s Parks and Open Space Plan was recently adopted on June 9, 2008. The purpose of this plan is to proactively account for and anticipate the City of Janesville’s future park and recreational needs. One of the recommendations of this plan is that Neighborhood Parks should be a minimum of 2 acres in size. Further, that in the event that a residential property adjoining a substandard park come on the market, the City explore the possible acquisition of the property for an addition to the park. Neighborhood Services became aware of such a property located at 417 North Washington in April of this year. This property is directly adjoining Washington Park on the southeast corner of the park. The building is a two story, 4-unit, 2800 sq foot building on a 103 foot by 144 foot lot. th The City of Janesville’s Look West and Old 4 Ward Neighborhood Revitalization Plan, adopted in December of 2008, specifies density reduction as a goal of the 1 plan. At the City Council’s request, Neighborhood Services approached the Neighborhood Action Team with the potential acquisition and solicited direction on the scope of the project. The Neighborhood Action Team determined that the best course of action for this particular property was to demolish the structure and expand Washington Park. Recently, the City of Janesville and the Action Team have made improvements to the park including a historical marker and the second community garden. Staff toured the property and found it to be in poor condition. The property was foreclosed in November of 2008. Neighborhood Services staff has been negotiating with the bank owner of this property for months and an agreement has been reached with a purchase price of $39,900. This project would include acquisition and demolition of the property. The estimated cost of demolition is $19,000. The balance of the Parkland Fund is currently at $213,492. The lot would then be added Washington Park. Analysis A. This home is located directly across from Washington Park and across from another property that the City is in negotiations to purchase (Resolution 2009-615). B. The property is zoned R-3, General Residential. C. The 4-unit building is vacant and in poor condition. D. The acquisition and demolition project is consistent with the City of Janesville’s Comprehensive Plan, the Parks and Open Space Plan and the Look West and Old Fourth Ward Neighborhood Revitalization Plan. Plan Commission Action Al Hulick, Development Specialist, presented the written staff report. Commissioner Zolidis asked who determines if the Parkland Acquisition Fund is the appropriate funding source for this acquisition. Jennifer Petruzzello, Director of Neighborhood Services, stated that the City Council would make the final decision as to whether or not this funding source is appropriate. There was a motion by Commissioner Voskuil with a second by Commissioner Perrotto to forward the acquisition of 417 North Washington to the City Council with a favorable recommendation noting that the Plan Commission has not reviewed the financial aspects of this transaction. The motion carried on a 5-0-0 vote. cc: Eric Levitt, City Manager Jay Winzenz, Dir. Of Administrative Services/Assistant City Manager Jennifer Petruzzello, Neighborhood Services Director 2 RESOLUTION NO. 2009-614 RESOLUTION AUTHORIZING THE ACQUISITION AND DEMOLITION OF REAL PROPERTY LOCATED AT 417 NORTH WASHINGTON STREET WHEREAS , Wis. Stats. §§ 62.22 (1), 62.23 (17) (a), 62.23 (17) (b), 66.0101, 62.11(5) and Chapter 32 and other pertinent Wisconsin Statutes permit the City’s acquisition, development, ownership, protection, and conservation of parkland, open space, riverfront properties, and development properties; and WHEREAS, the City of Janesville’s Parks and Open Space Plan, adopted June 9, 2008, recommends a minimum Neighborhood Park size of 2 acres and in the event that a residential property adjoining a substandard park come on the market, the City should evaluate the purchase of this property for acquisition and addition to expand the size of the park; and WHEREAS , Washington Park, located at 431 N Washington Street, is currently less that the recommended two acre size; and WHEREAS , the property located at 417 North Washington was foreclosed November 15, 2008, and was listed for sale; and WHEREAS , the City of Janesville Administration has negotiated an offer to purchase 417 North Washington Street in the amount Thirty Nine thousand Nine Hundred dollars ($39,900); and WHEREAS , the Janesville Plan Commission has reviewed this proposed acquisition on June 15th, 2009 and found it to be consistent with long range City plans, but not commenting upon the financial aspects of the transaction; and WHEREAS , the funding source for the acquisition and demolition is park land acquisition funds. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville that they hereby approve and authorize the City Manager and/or his designee(s) to acquire and close upon the City’s purchase of the Property from the owners on behalf of the City; and BE IT FURTHER RESOLVED , that the City Manager and/or his designee(s) on behalf of the City of Janesville is/are hereby authorized and empowered to negotiate, draft, modify, review, execute, and enter into additional agreements, record, file and/or make minor modifications and/or amendments to any and all documents, papers, forms, and agreements, and to take whatever other actions as the City Manager may determine, from time to time and at any time, necessary and/or desirable to effectuate the intent of this resolution and/or the public good. 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: Prepared by: ÉßÍØ×ÒÙÌÑÒ ÐßÎÕ ÍËÞÖÛÝÌ Í×ÌÛ q Ô»¹»²¼ ÍËÞÖÛÝÌ Í×ÌÛ Ü¿¬»æ êñçñðç Í½¿´»æ ïþã ïððù Ó¿° Ý±±®¼·²¿¬»æ Õóïë ÔÑÝßÌ×ÑÒ ÓßÐ Ý×ÌÇ ÑÚ ÖßÒÛÍÊ×ÔÔÛ ÓßÐ ï ßÝÏË×Í×Ì×ÑÒ ÑÚ ìïé Ò ÉßÍØ×ÒÙÌÑÒ ÍÌ ÐÔßÒÒ×ÒÙ ÍÛÎÊ×ÝÛÍ ÍæÐ®±¶»½¬ÄÐ´¿²²·²¹ÄÝ¿»ÄÝ¿»îððçÄÕóïëÁß½¯«··¬·±²ìïéÒÉ¿¸·²¹¬±² Í¬ NEIGHBORHOOD SERVICES MEMORANDUM June 9, 2009 TO: City Council FROM: Kelly Lee, Neighborhood Development Specialist SUBJECT: Acquisition of 414 North Washington Street Summary The Neighborhood Services Department is anticipating a Neighborhood Stabilization Program (NSP) grant award of $987,146 to acquire, rehabilitate, demolish and redevelop foreclosed and abandoned properties. The property located at 414 North Washington is a foreclosed home that is consistent with the grant application and award criteria. Department Recommendation The Plan Commission and the Neighborhood Services Department recommend that the City Council support a motion to approve Resolution 2009-615 authorizing the purchase of the property located at 414 North Washington Street, at a price not to exceed $40,750 as part of the Neighborhood Stabilization Grant Program (NSP). City Manager Recommendation The City Manager concurs with the department recommendation. Suggested Motion I move to approve file resolution 2009-615 authorizing the purchase of 414 North Washington Street, at price not to exceed $40,750 as part of the Neighborhood Stabilization Grant Program. Background The Housing and Economic Recovery Act (HERA) of 2008 created the Neighborhood Stabilization Program, under which states, cities and counties will receive a total of $3.92 billion to acquire, rehabilitate, demolish, and redevelop foreclosed and abandoned residential properties. NSP funds are considered Community Development Block Grant (CDBG) funds. The U.S. Department of Housing and Urban Development (HUD) has made a total of $38,779,123 available to the State of Wisconsin and $9,187,465 to the City of Milwaukee. The City of Janesville anticipates an award of $987,146 . 1 In January 2009, the City Council authorized staff to apply for a Neighborhood Stabilization grant Program through the State of Wisconsin Department of Commerce. This program allows municipalities and qualified non-profit organizations to acquire foreclosed properties for the purpose of rehabilitation, redevelopment, or demolition. The Community Development Authority (CDA) and the Neighborhood Action Team assisted in formulating criteria for potential Neighborhood Stabilization Program grant projects, including: location in area of greatest need; located within either of the two redevelopment sites as identified in the City of Janesville Look West & Old Fourth Ward Neighborhood Revitalization Plan (Adopted th December 8, 2008); properties located along collector, major arterial streets, or minor arterial streets; properties located near schools or parks; properties th identified as poor or fair condition on the 4 Ward and Look West Housing Condition Report (or of similar condition for census tracts 6 &10). The property located at 414 North Washington is a foreclosed, single family home in fair condition. The project would include acquisition and minor rehabilitation to the property funded by the Neighborhood Stabilization Program (NSP) grant. Once the project is complete, the City of Janesville will market the house to a low to moderate income individual or family to be used as an owner occupied home. The City will place deed restrictions on the property to assure this owner occupied status. The Victorian style home was built in 1870. The 1318 square foot, two-story property has 3 bedrooms and one and a half baths and an approximately 400 square foot detached garage. It appears that the previous owners had begun rehabilitation of the home prior to the foreclosure. The City will continue this minor rehabilitation that is generally cosmetic in nature. The City has negotiated a purchase price of $40,750 by way of a real estate auction. This falls within the limits established in the grant application. Analysis A. This home is located directly across from Washington Park and across from another property that the City is in negotiations to purchase (Resolution 2009-614). B. The property is zoned R-3, General Residential. C. The project will include acquisition and minor rehabilitation of the property funded through the Neighborhood Stabilization Program (NSP) grant. D. The project is consistent with the criteria outlined by the Community Development Authority and the Neighborhood Action Team. The home is located in census tract 4 which has been identified as one of the areas of greatest need in Janesville. The property is directly across from th Washington Park. The property is listed as “fair” in the 4 Ward and Look West Housing Condition Report. 2 E. The project is consistent with the City of Janesville Look West & Old Fourth Ward Neighborhood Revitalization Plan as well as the City of Janesville Comprehensive Plan. Plan Commission Action Al Hulick, Development Specialist, presented the written staff report. There was a motion by Commissioner Voskuil with a second by Commissioner Perrotto to forward the acquisition of 414 North Washington to the City Council with a favorable recommendation noting that the Plan Commission has not reviewed the financial aspects of this transaction. The motion carried on a 5-0-0 vote. cc: Eric Levitt, City Manager Jay Winzenz, Dir. of Administrative Services/Assistant City Manager Jennifer Petruzzello, Neighborhood Services Director 3 RESOLUTION NO. 2009-615 RESOLUTION AUTHORIZING THE ACQUISITION OF REAL PROPERTY LOCATED AT 414 NORTH WASHINGTON STREET WHEREAS , Wis. Stats. §§ 62.22 (1), 62.23 (17) (a), 62.23 (17) (b), 66.0101, 62.11(5) and Chapter 32 and other pertinent Wisconsin Statutes permit the City’s acquisition, development, ownership, protection, and conservation of parkland, open space, riverfront properties, and development properties; and WHEREAS, the City of Janesville anticipates an award of $987,146 through the Neighborhood Stabilization Program (NSP) grant; and WHEREAS , the Neighborhood Stabilization Program (NSP) grant must be used for acquisition, rehabilitation or demolition of foreclosed properties; and WHEREAS , the Community Development Authority (CDA) and the Neighborhood Action Team assisted in formulating criteria for potential Neighborhood Stabilization Program grant projects, including: location in area of greatest need; located within either of the two redevelopment sites as identified in the City of Janesville Look West & Old Fourth Ward Neighborhood Revitalization th Plan (Adopted December 8, 2008); properties located along collector, major arterial streets, or minor arterial streets; properties located near schools or parks; properties identified as poor or th fair condition on the 4 Ward and Look West Housing Condition Report (or of similar condition for census tracts 6 &10) WHEREAS , the City of Janesville Administration has negotiated with the owner by way of an auction on May 27, 2009 an offer to purchase 414 North Washington Street in the amount of Forty Thousand, Seven Hundred and Fifty Dollars ($40,750); and WHEREAS , the Janesville Plan Commission has reviewed this proposed acquisition on June 15th, 2009 and found it to be consistent with long range City plans, but not commenting upon the financial aspects of the transaction; and WHEREAS , the funding source for the acquisition and rehabilitation is the Neighborhood Stabilization Program (NSP) grant: NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville that they hereby approve and authorize the City Manager and/or his designee(s) to acquire and close upon the City’s purchase of the Property from the owners on behalf of the City; and BE IT FURTHER RESOLVED , that the City Manager and/or his designee(s) on behalf of the City of Janesville is/are hereby authorized and empowered to negotiate, draft, modify, review, execute, and enter into additional agreements, record, file and/or make minor modifications and/or amendments to any and all documents, papers, forms, and agreements, and to take whatever other actions as the City Manager may determine, from time to time and at any time, necessary and/or desirable to effectuate the intent of this resolution and/or the public good. 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: Prepared by: ÉßÍØ×ÒÙÌÑÒ ÐßÎÕ ÍËÞÖÛÝÌ Í×ÌÛ q Ô»¹»²¼ ÍËÞÖÛÝÌ Í×ÌÛ Ü¿¬»æ êñçñðç Í½¿´»æ ïþã ïððù Ó¿° Ý±±®¼·²¿¬»æ Õóïë ÔÑÝßÌ×ÑÒ ÓßÐ Ý×ÌÇ ÑÚ ÖßÒÛÍÊ×ÔÔÛ ÓßÐ ï ßÝÏË×Í×Ì×ÑÒ ÑÚ ìïì Ò ÉßÍØ×ÒÙÌÑÒ ÍÌ ÐÔßÒÒ×ÒÙ ÍÛÎÊ×ÝÛÍ ÍæÐ®±¶»½¬ÄÐ´¿²²·²¹ÄÝ¿»ÄÝ¿»îððçÄÕóïëÁß½¯«··¬·±²ìïìÒÉ¿¸·²¹¬±² Í¬ Community Development Department Memorandum June 22, 2009 TO: Janesville City Council FROM: Al Hulick, Development Specialist SUBJECT: Action on a proposed resolution authorizing the sale of the former Riverside Plating property at 1728 North Washington Street (File Resolution No. 2009-618). RECOMMENDATION The Community Development Department and Plan Commission recommend that the City Council support a motion to approve File Resolution No. 2009-618 which authorizes the sale of land at 1728 North Washington Street. City Manager Recommendation The City Manager recommends approval. SUGGESTED MOTION I move to approve File Resolution 2009-618 authorizing the sale of land located at 1728 North Washington Street for $13,500 to Brian C. Bailey. BACKGROUND The City Administration has negotiated the sale of property located at 1728 North Washington Street for $13,500 to Brian C. Bailey (owner of The Watering Hole). The property is approximately 0.8 acres in size, is zoned B3-General Commercial District, and is undeveloped. The City intends to sell the land to Brian Bailey who plans to develop the site with additional parking for his business, the Watering Hole, which directly adjoins the subject site to the west. The subject site was formerly owned by the Riverside Plating Corporation which operated until 1993. The City took ownership of the property in 2007 and the City Council declared the property as surplus at that time. The City has been working with Mr. Bailey to develop an appropriate site plan for the site and reach an acceptable sales agreement. This sales agreement will allow the City to recoup a majority of the costs associated with the acquisition and restoration of the site and place the property back on the City’s tax roll. State Statues require that Plan Commission review the proposed sale of surplus property to ensure consistency with established City plans. The recently adopted Comprehensive Plan Land Use Map indicates this property as appropriate for Neighborhood Commercial. Therefore, staff believes this land sale is consistent with established City plans. ANALYSIS A. The City has negotiated an agreement to sell the undeveloped property located at 1728 North Washington to the adjoining property owner, Brian Bailey. Mr. Bailey intends to develop the site with additional parking for his business which adjoins the subject site at 1700 North Washington. Mr. Bailey has also expressed interest in developing an outdoor volleyball court on the site, which is a conditional use within the B3 zone district. Plan Commission review and approval is required for all conditional use applications which will be reviewed at a future date. B. The subject site was formerly owned by the Riverside Plating Corporation which operated until 1993. DNR Environmental violations and failure to meet the City’s pre-treatment standards for wastewater caused the operation to cease. Since that time, the property went into foreclosure, and Rock County assumed ownership by default. The property’s environmental concerns have been remediated, the site has been restored to open space, and the City took ownership of the property from the County in 2007. At the time the City took ownership of the site, the City Council declared the property as surplus. The City has been working with Mr. Bailey (the adjoining property owner) since that time to develop an appropriate site plan for the site and reach an acceptable sales agreement. This sales agreement will allow the City to recoup all costs associated with the acquisition and restoration of the site. Additionally, this property has been under public ownership for several years, and this sale will put the property back on the City’s tax roll. C. At their June 15, 2009 the Plan Commission reviewed this sale of land to ensure that the proposed sale of surplus land was consistent with established City plans. The recently adopted Comprehensive Plan Land Use Map indicates this property as appropriate for Neighborhood Commercial. Mr. Bailey’s business is currently non-conforming due its deficiency in parking. This land sale will allow him to expand his parking and bring his business into compliance. Additionally, the City has required that Mr. Bailey remove concrete improvements in the North Washington Street and Parkside Drive right-of-way and relocate his Parkside Drive entrance further away from the North Washington Drive intersection to increase visibility and safety at that intersection. Therefore, based on these circumstances, City staff and the Plan Commission feels that this land sale is appropriate and consistent with established City plans. PLAN COMMISSION ACTION – 15 JUNE 2009 Al Hulick, Development Specialist, presented the written staff report. Commissioner Vouskil asked if time frame had been set for Mr. Bailey to develop the site with a parking lot. Hulick indicated that the sales agreement was contingent upon Mr. Bailey developing the site with a parking lot within two years. The Plan Commission unanimously agreed to forward the acquisition to the City Council with a favorable recommendation noting that the Plan Commission has not reviewed the financial aspects of this transaction. cc: Brad Cantrell Duane Cherek RESOLUTION NO. 2009 – 618 A resolution authorizing the City Manager to proceed with the sale of surplus property located at 1728 North Washington Street. WHEREAS, the City of Janesville owns the following described parcel: MOLE & SADLER'S Addition portions of lots 6-7-8-9-10-11 & 12 block 21, City of Janesville, Rock County, Wisconsins. Commencing at the SE corner of LOT 13 then heading S32º04'W 17.75' to beginning; then heading N56º56'W 74.92'; then heading N12ºOO'W 100'; then heading S78ºW 68' TH S12ºE 100' S78ºW 132' to west line of LOT 8; then heading S12ºE 73.2'; then heading N78ºE100'; then heading S12ºE to north line of ELGIN AV; then heading northeasterly to point of beginning. WHEREAS , the property consists of approximately 0.8 acres of land located at 1728 North Washington Street and was purchased from Rock County in 2007 through foreclosure proceedings pursuant to Wisconsin State Statute 785.17 in exchange for the City’s share of back taxes for the previous three years; and WHEREAS , the property was formerly owned by the Riverside Plating Corporation which ceased operations due to environmental concerns which have since been remediated and the site has been restored to green space; and WHEREAS , the City of Janesville has negotiated an agreement to sell the property to Mr. Brian C. Bailey for $13,500.00, and Mr. Bailey has agreed to develop the site with additional parking for his adjacent business; and WHEREAS , the Plan Commission has reviewed this land sale at their June 15, 2009 meeting and found the sale to be consistent with established City plans and recommended that the City Council proceed with the sale of this property, but further noted that the Plan Commission had not reviewed the financial aspects of this transaction; and WHEREAS , the Common Council of the City of Janesville declared this property to be surplus property on October 22, 2007 and thus no longer is needed for City purposes and that the proposed transaction is to the benefit and best interest of the citizens and the City of Janesville. NOW THEREFORE BE IT RESOLVED BY THE COMMON COUNCIL of the City of Janesville that it hereby authorizes and directs the City Manager and the City Clerk to execute on behalf of the City of Janesville, the sale of such property; and to negotiate and execute such documents, papers and forms as may from time to time be necessary and/or desirable to effectuate such transaction and the intent of this resolution as the City Manager may decide; and BE IT FURTHER RESOLVED that the City Manager is hereby authorized to take whatever other actions or to make whatever other minor changes that may be necessary to effectuate this land transaction. 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: Community Development Department Prepared by: Community Development Department Î·ª»®·¼» Ð¿®µ ÍËÞÖÛÝÌ Í×ÌÛ q Ô»¹»²¼ ÍËÞÖÛÝÌ Í×ÌÛ Ü¿¬»æ êñçñðç Í½¿´»æ ïþã íððù Ó¿° Ý±±®¼·²¿¬»æ Õóïè ÔÑÝßÌ×ÑÒ ÓßÐ Ý×ÌÇ ÑÚ ÖßÒÛÍÊ×ÔÔÛ Í¿´» ±º ïéîè Ò É¿¸·²¹¬±² Í¬ ÓßÐ ï ÐÔßÒÒ×ÒÙ ÍÛÎÊ×ÝÛÍ ÍæÐ®±¶»½¬ÄÐ´¿²²·²¹ÄÝ¿»ÄÝ¿»îððçÄÕóïèÁÍ¿´»ïéîèÒÉ¿¸·²¹¬±² Community Development Department Memorandum June 22, 2009 TO: Janesville City Council FROM: Al Hulick, Development Specialist SUBJECT: Action on a proposed resolution authorizing the City Manager to apply for the Energy Efficiency and Conservation Block Grant. (File Resolution No. 2009-620) RECOMMENDATION The City Administration recommends the City Council authorize the submission of the Energy Efficiency and Conservation Block Grant application. CITY MANAGER RECOMMENDATION The City Manager supports the recommended plan for the Energy Block Grant. SUGGESTED MOTION I move to approve Resolution #2009-620, authorizing the City Administration to submit an application for the City’s direct allocation of $618,500 for the Energy Efficiency and Conservation Block Grant Program. REQUEST As part of the American Recovery and Reinvestment Act of 2009, the Department of Energy has allocated $618,500 as part of the Energy Efficiency and Conservation Block Grant Program. The City of Janesville has been allocated $618,500. Although this is a direct allocation from the Federal Government to the City of Janesville, Federal Law requires that the City apply for these funds and present a plan for using the funding to meet the goals of the grant. Therefore, the City Administration requests that the City Council authorize the submission of the Energy Efficiency and Conservation Block Grant application. BACKGROUND The American Recovery and Reinvestment Act of 2009, appropriates funding for the Department of Energy (DOE) to issue/award formula-based grants to units of local government under the Energy Efficiency and Conservation Block Grant (EECBG) Program. Projects under this program will be funded, in whole or in part, with funds appropriated by the American Recovery and Reinvestment Act of 2009. The Recovery Act’s purpose is to stimulate the economy and to create and retain jobs. In additional to these goals, the purpose of the EECBG Program is to assist eligible entities and implementing strategies and projects to: ? Reduce fossil fuel emissions in a manner that is environmentally sustainable and, to the maximum extent practicable, maximizes benefits for local and regional communities; ? Reduce the total energy use of the eligible entities; and ? Improve energy efficiency in the building sector, the transportation sector, and other appropriate sectors. These stated purposes describe the overall intent of the EECBG Program. Entities may develop various initiatives and projects that address one or more of the purposes and each activity an entity undertakes is not required to meet all of the stated purposes. DOE encourages entities to develop many different new and innovative approaches within the framework of the legislation and the guidance to serve these purposes. The grant period of performance for these grants will be 36 months. In keeping with the agenda of the ARRA, entities are required to obligate all funds within eighteen (18) months from the effective date of the award. Application’s are due June 25, 2009. ANALYSIS As part of the application process, the City must identify programs and initiatives in which the $618,500 grant funds will be spent. The City Administration has identified the following programs/initiatives and approximate funds: ? Traffic and Street Light Retrofitting – The City intends to retrofit the remaining incandescent traffic signals to LED as well as retrofit a number $150,000 of High Pressure Sodium street lights with Induction lighting. ? Municipal Facility Indoor Lighting Retrofitting – The City intends to retrofit existing lighting from “T12/Magnetic Ballast” fluorescent with “High Efficiency T8/Electronic Ballast” fluorescents. Lighting replacements will occur at the Municipal Building, City Services Center, and Fire Stations. $150,000 ? Ice Arena Energy Upgrades – The City intends to utilize funds to either upgrade the boiler and compressor units at the existing ice arena facility with more energy efficient units or leverage additional funds to replace the $100,000 entire facility. ? Residential Energy Audits and Efficiency Upgrade Grants – The City intends to offer residents and landlords funds to perform an energy evaluation of their home or rental property, make efficiency improvements (i.e. programmable thermostats, light bulbs, shower heads, etc.) and provide small matching grants to assist in making energy efficiency $75,000 upgrades to their homes, identified by the energy evaluation. ? Green Action Plan – The City intends to utilize grant funds to develop a “Green Action Plan”, potentially including “green” building codes, for the City which will provide a framework to creating a sustainable community. $75,000 ? Administration – The grant application indicates that not more then 10% of the overall award can be used for administrative expenses. Each of the above programs will require a certain amount of administrative time. $61,850 RESOLUTION NO. 2009-620 A RESOLUTION authorizing the City of Janesville’s submittal of Energy Efficiency and Conservation Block Grant Program application. WHERES , in accordance with the American Recovery and Reinvestment Act, the Department of Energy has directly allocated $618,500 of Energy Efficiency and Conservation Block Grant funds to the City of Janesville; and WHEREAS , the Common Council of the City of Janesville recognizes the importance of decreasing the City’s reliance on fossil fuels and increasing the use of renewable energy and renewable fuels; and WHEREAS , by adopting this Resolution, the Common Council declare their intent for the City Administration to prepare and submit a Energy Efficiency and Conservation Block Grant Program application; and WHEREAS , the City of Janesville will maintain records documenting all expenditures made during the grant implementation process and abide by the necessary reporting responsibilities as determined by the Department of Energy; and WHEREAS , the City of Janesville intends to comply with all requirements of law to in accord with the Department of Energy; and WHEREAS , the City of Janesville intends to comply with all requirements of and will submit all documents and participation requirements, including but not limited to the necessary reporting requirements, to the Department of Energy. NOW, THEREFORE, IT IS HEREBY RESOLVED by the Common Council of the City of Janesville that: 1. All above introduction and recitals are incorporated herein by reference as if fully set forth verbatim; and 2. The City Administration is authorized on behalf of the City of Janesville to prepare and submit applications for and request funds and assistance available from the Department of Energy and related State and other programs and sources; 3. The City of Janesville shall take any and all necessary action to undertake, direct, and complete approved grant activities, and comply with State rules for the program(s); and BE IT FURTHER RESOLVED , that the City Manager and his designee(s), on behalf of the City of Janesville, is/are hereby jointly and severally authorized and empowered to negotiate, draft, review, revise, modify, amend, execute, enter into, file and/or record additional applications, agreements, amendments, documents, reports, and letters of understanding concerning this matter, and to take whatever additional other actions that the City Manager may determine in his sole discretion, from time to time and at any time, necessary and/or desirable in the public interest to effectuate the intent of this Resolution. 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 Administration Prepared by: Community Development POLICE DEPARTMENT MEMORANDUM June 4, 2009 TO: City Council FROM: David Moore, Chief of Police SUBJECT: Motion to Authorize the Police Department to apply for the 2009 Edward Byrne Memorial Justice Assistance Grant (JAG) Program Executive Summary The police department is eligible to apply for the 2009 Edward Byrne Memorial Justice Assistance Grant (JAG) Program. Staff Recommendation The Police Chief recommends applying for the JAG grant for the below listed equipment. The grant will reduce future financial burden to the City’s tax levy. City Manager Recommendation I concur with the Police Chief’s recommendation. Background The Edward Byrne Memorial Justice Assistance Grant (JAG) is a formula grant based upon population and crime statistics. The department is able to use grant funds to purchase law enforcement equipment. The department must apply for the JAG grant jointly with the Rock County Sheriff’s Department and the Beloit Police Department. The Sheriff’s Department will be the administering agency who will apply for the grant and will submit all required reports. The three agencies need to agree on the individual allocations. The total grant available for the three agencies is $71,988. Janesville’s agreed upon allocation is $26,900. The deadline to apply for the JAG grant is July 9, 2009. Analysis The police department has received JAG grant funding in previous years. The current requirements are the same as in previous years. The grants have been used to purchase police bicycles, less lethal weapons, SWAT rifles, squad equipment, digital recorders, and interview room recording equipment. The department received $20,000 in 2005, $12,000 in 2006, and $24,000 in 2007. The department was not eligible for funds in 2008. Earlier this year the department applied for a Recovery Act JAG grant, the application is still pending. There is no cash match for the JAG grant program. The department has identified the following objectives for equipment to purchase with the 2009 JAG grant funds: 1 1. Purchase 85 handheld digital audio recorders. Officers of the Janesville Police Department dictate incident reports in the field onto digital recorders for later transcription. This system has been in place for many years, however with changes in technology the digital recorders currently in use have become obsolete. Changes in software for newer recorders have caused the loss of some digital files. The remedy is to equip all field officers with the newer model digital recorders so that all operate with the same transcription software to avoid the need for file conversion and the potential loss of digital files. 2. Purchase one desktop computer. Each patrol shift at the Janesville Police Department has a work station to accommodate the four supervisors working that shift. Currently there are two desktop computers provided for the three patrol shifts. The addition of the third computer will allow for maximum efficiency and productivity for all patrol supervision. 3. Purchase two Tasers. The Janesville Police Department equips its field personnel with electronic control devices designed to restrain violent or potentially violent individuals. The agency has found them to be an effective tool for increasing officer safety and reducing injuries to resistive subjects. The current inventory of Tasers has reached warranty limits. This means that as units fail they will need to be replaced. These funds will provide for starting an incremental replacement of the Taser inventory. The following is a detail list of the equipment to be purchased with the 2009 JAG Grant: ItemComputationCost 1. Digital Recorders (85)85 @ $280 each$ 23,800.00 2. Tasers (2)2 @ $805$ 1,610.00 3. Desktop Computer (1)1 @ $2,270$ 2,270.00 TOTAL$ 27,680.00 cc: Eric Levitt, City Manager Jacob J. Winzenz, Director of Administrative Services 2 Economic Development Memorandum Date: June 15, 2009 TO: City Council FROM: Doug Venable, Director of Economic Development SUBJECT: Action on a Resolution Approving a TIF Development Agreement with Recycling4U, LLC and Authorizing a $15,000 TIF Development Loan for Recycling4U, LLC Located in within ½ Mile of TIF No. 33 at 615 N. Parker Dr. (File Resolution 2009 – 619) I. Summary Mr. Jamin Arn, owner of OfficePro has contacted staff about the possibility of a small $15,000 TIF Loan to help start a new business called Recycling4U LLC. The new company would collect, recondition, re-load, and sell laser printer cartridges to office supply businesses. The company would be located on the second floor of the building at 615 N. Parker Dr. that is now leased by OfficePro. II. Recommendation Staff feels that supporting entrepreneurial efforts to start new businesses is a critical component in any economic development program. Mr. Arn has had a great track record in starting and growing OfficePro. Staff has negotiated a standard TIF Development Loan Agreement with Recycling4U for a $15,000 forgivable loan, linked to job creation commitments. While Mr. Arn’s project is small, it will create new jobs and has the potential to grow into a nice small business. The proposed TIF Agreement will provide initial financing to start the Recycling4U business and create four (4) new full-time jobs within four (4) years. III. Suggested Motion I move the adoption of Resolution 2009 – 619, approving the TIF Development Agreement with and authorizing a $15,000 TIF Development Loan to Recycling4U. IV. Recycling4U Project Jamin Arn is an entrepreneur in Janesville, who successfully created OfficePro in July, 2003. In the past 6 years, he has grown this company to $5 million in sales and has been honored by Forward Janesville as the Small Business of the Year. OfficePro has a number of separate and distinct business niches. The company retails office and ??? Economic Development Department Box 5005 Janesville, WI 53547-5005 755-3180 TIF Development Agreement Recycling4U – TIF No. 33 Page 2 cleaning supplies. They collect used office paper and documents for shredding. They also purchase and resell used office equipment. In looking to provide a full range of products to his customers, OfficePro currently purchases remanufactured printer cartridges. Mr. Arn collects used printer cartridges from his customers to facilitate their recycling efforts. He feels that he can start his own business, Recycling4U, to remanufacture the printer cartridges. Initially, he will sell his remanufactured printer cartridges to OfficePro, but as the business gets going, he plans to be an OEM manufacturer of recycled printer cartridges to other office supply companies. He plans to locate the business in the second floor of the building at 615 N. Parker Dr. that is leased by OfficePro. He estimates that he will be able to start the business with one full time employee and two part-time employees. He feels that as sales grow, he will need 2 – 3 additional full time employees. In order to start this new business, Mr. Arn estimates total expenditures of $20,000, and proposes to use $5,000 of personal equity and to receive a $15,000 forgivable TIF Development Loan. V. TIF Development Agreement Staff has negotiated a standard TIF Development Loan for the Recycling4U project. Under the terms of the Agreement, the City would make a $15,000 forgivable loan to Recycling4U. The TIF loan would be made at the City’s cost of borrowing (4.25%) over 10 years. The annual debt service payment of approximately $1,875 would be linked to job creation. The Agreement calls for Recycling4U to employ one full-time worker in year one; a second full-time worker in year 2; and so on until employment reaches 4 full-time workers Fifty percent (50%) of the annual debt service must be repaid each year. Each year that Recycling4U meets or exceeds the employment commitments, the remaining 50% of that year’s debt service would be forgiven and that portion of the loan turned into a grant. If Recycling4U employs fewer workers than their commitment, then the debt service payment due would be prorated and repaid to the City for that year. If Recycling4U closes its doors or decides to relocate to another community, then the unpaid principal balance of the TIF Development Loan would become due and payable. This project will be located within ½ mile of newly created TIF No. 33 which was developed around the recent expansion at Mercy Health Systems’ campus on Mineral Point Road. The Project Plan for this TIF District included funds in support of development projects located within ½ mile of the TIF boundary. The first development project in TIF No. 33 was the recent 30,000 SF office expansion at Mercy Health Systems. The expected TIF increments from the Mercy TIF Development Agreement Recycling4U – TIF No. 33 Page 3 project should be sufficient to cover the onetime cost of the forgivable $15,000 TIF Development Loan and to pay for the cost of converting N. Franklin St. to two-way traffic behind the Mercy campus. Doug Venable Cc Mr. Eric Levitt, City Manager Mr. Jay Winzenz, Dir. of Administrative Services Attachments: Location Map Resolution 2009 – 619 Summary of TIF Development Agreement j:\development\economic development\tif districts\tif 33 - mercy tif\Recycling4U\Recycling4U final council memo.doc Resolution 2009 – 619 A Resolution Approving a TIF Development Agreement with and Authorizing a $15,000 TIF Development Loan to Recycling4U, LLC. -- TIF No. 33 WHEREAS, Sections 66.1105 and 66.1101 of Wisconsin Statutes authorize cities to utilize tax increment financing to promote industry and implement economic development projects; and WHEREAS, the Common Council has authorized the use of Tax Increment Financing Districts and TIF Development agreements for development projects when the Council adopted amended Council Policy Statement No. 61 (Economic Development Policy) on the 14th day of November, 2006; and, WHEREAS, on January 12, 2009, the Council adopted Resolution 2008 – 531 approving the Project Plan for TIF No. 33 to allow for the expenditure of TIF incremental revenues on development projects located within ½ mile of the TIF No. 33 boundary; and WHEREAS, Recycling4U, LLC. (“Recycling4U”) has announced plans to start a laser printer cartridge recycling facility and to hire Four (4) additional workers, if Janesville can provide financing to help cover its start-up capital investment costs; and WHEREAS, the City and Recycling4U have negotiated a TIF Development Agreement a copy of which is attached hereto and incorporated herein as if fully set forth, and which Agreement provides for the City to make a forgivable $15,000 TIF Development Loan to Recycling4U at 4.25% interest amortized over 10 years using funding from TIF No. 33; and WHEREAS, the Common Council of the City of Janesville finds the approval of the TIF Development Agreement and the making of a $15,000 TIF Development Loan to Recycling4U in TIF No. 33 to be in the best interest of and benefit to the City, its citizens, and the overall community; NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Janesville that it hereby approves the TIF Development Agreement with and authorizes a $15,000 TIF Development Loan to Recycling4U, LLC according to the terms and conditions set forth in the attached TIF Development Agreement and Promissory Note, and BE IT FURTHER RESOLVED, that the City Manager, on behalf of the City of Janesville, is hereby authorized to negotiate, draft, modify, amend, review, and file all such other documents, papers, and agreements, to take whatever other actions, and to make whatever changes and amendments to the TIF Development Agreement and Promissory Note, and such other documents and agreements which the City Manager may, from time to time, deem necessary and/or desirable to effectuate the intent of this Resolution. Resolution 2009 – 619 Page 2 ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner McDonald Steven E. Sheiffer, 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: Economic Development Director Summary of TIF Development Agreement and Promissory Note Between City of Janesville and Recycling4U, LLC for a $15,000 TIF Loan for a Development Project in TIF No. 33 I. Parties A. City of Janesville B. Recycling4U, LLC. (Developer/Promissor) II. Description of the Property -- 615 N. Parker Dr., Janesville, WI, within ½ mile of TIF No. 33 III. Purpose of the Agreement -- Support capital equipment and training costs for Recycling4U start-up business IV. Terms of the Agreement A. The City shall make a $15,000 TIF Development Loan to Recycling4U: B. Recycling4U shall: 1. Lease space at 615 N. Parker Dr. 2. Obtain an Occupancy Permit for leased space 3. Submit financial documentation for City review 4. Commit to use best efforts to create and retain one (1) new full-time job in first year; two (2) full-time jobs in second year; three (3) full-time jobs in third year and four (4) full-time jobs thereafter. C. Developer contingencies to be met by August 1, 2009: 1. Receipt of all plan approvals and building permits for leasehold improvement. 2. Corporate approval of capital investment. D. City must receive waiver or satisfaction of contingencies before being bound to Agreement. E. Recycling4U has the right to prepay TIF Development Loan TIF Development Loan Terms and Conditions 1. Loan Amount: $15,000 2. Loan Purpose: Equipment and employee training costs at 615 N. Parker 3. Loan Term: 10 years 4. Interest Rate: 4.25% 5. Annual Debt Service: $1,872.45 ( 50% may be forgiven if job commitments are met). 6. Job Commitments: Create one (1) new job during first year; two (2) new full-time jobs in the second year; three (3) full-time jobs the third year; and four (4) full-time jobs for year 4 – 10. 7. Debt Service Forgiveness: ? For each year Recycling4U meets job commitments, the 50% of the $1,872.45 debt service payment may be forgiven for that year. ? For each year that Recycling4U employs less than less than job commitment, Recycling4U will repay a pro rated share of the annual debt service payment. 8. Loan Closing: Upon the issuance of an Occupancy Permit for Recycling4U space at 615 N. Parker Dr. 9. Timing of Debt Service: Recycling4U to submit job documentation 30 days prior to anniversary date of loan closing. City to calculate debt service forgiveness and invoice amount due. 10. Personal Guarantee: Jamin Arn to provide personal guarantee of TIF Loan repayment. 11. Closing of Facility If Recycling4U closes the facility at 615 N. Parker Dr., then unpaid loan balance is immediately due and payable. However, Recycling4U can move to another Janesville location as long as it meets the job commitments. Economic Development Memorandum Date: June 15, 2009 TO: City Council FROM: Douglas Venable, Director of Economic Development SUBJECT: Introduction of proposed Amendment No. 3 to the Project Plan for Tax Increment Finance District No. 26 and Referral to Plan Commission for Public Hearing. (File Res. No. 2009-617) I. Summary City staff is proposing a third amendment to TIF No. 26 to add approximately 185 acres of vacant farmland planned for industrial development. After introduction, the City Council should refer the Amendment to the Project Plan to the Plan Commission for the required public hearing and recommendation. The resolution approving the Amendment to the TIF District will return to the Council Agenda for consideration on July 27, 2009. II. Recommendation The City of Janesville has successfully used tax increment financing as an economic development tool. With the closing of numerous businesses in Rock County in the past year and the poor state of the national economy, Janesville needs to remain aggressive in pursuing all development opportunities. The proposed TIF No. 26 boundary amendment will add additional industrial lands that can be improved with municipal utilities and services to attract continued industrial development. Staff recommends that the Council introduce the Amendment No. 3 to the Project Plan for TIF No. 26 and refer it to the Plan Commission for a public hearing and recommendation. III. City Manager Recommendation I concur with the Economic Development Director’s recommendation. IV. TIF Creation Procedures Wisconsin’s Tax Increment Law (§ 66.1105) sets forth a specific procedure for amending the boundary of a TIF district. The Plan Commission must hold a public hearing, preceded by a Class 2 public notice. The required hearing is planned for July 20, 2009. The Plan Commission then makes a ??? Economic Development Department Box 5005 Janesville, WI 53547-5005 755-3180 recommendation to the City Council, on the proposed TIF boundary and Project Plan amendment. The Council must then act on a resolution to amend the TIF Project Plan. Wisconsin Statutes also provide that a Joint Review Board composed of representatives from the City, the School District, the County, the Vocational District, and a fifth member chosen at large, meet and approve the amendment to the TIF district within 30 days of Council action. V. Amendment No. 3 toTIF No. 26 TIF No. 26 was developed as an ‘industrial TIF district’ to stimulate the expansion and redevelopment of an older industrial area centered along Beloit Ave. and Conde St. Expansions by Seneca Foods, LKQ Auto Parts, 3-D Targets Tigre, USA, and PPG Industries have been helped by incentives provided by TIF No. 26. Early in 2009, the City adopted its new Comprehensive Plan which supports continued industrial development of the lands north of Freedom Lane and east of Beloit Ave. Proposed Amendment No. 3 to the Project Plan for TIF No. 26 changes the boundary for TIF No. 26 to include this future industrial land. This area is currently used for agricultural crop production. The City has already installed a water main from Delavan Dr. to Freedom Lane to boost water pressure and reliability as part of the Seneca Foods expansion. Future development will require the construction of internal streets, sewer and storm sewer mains. The expenditure of any TIF funds would be linked to a specific development agreement which assures the availability of the property value and tax increments the City will need in order to recover its TIF costs. Douglas Venable Attachments: Amendment No. 3 - TIF No. 26 Project Plan Resolution 2009 – 617 Cc Eric Levitt, City Manager Jay Winzenz, Director of Administrative Services TAX INCREMENT FINANCE DISTRICT No. 26 PROJECT PLAN November 24, 2003 Amendment No. 1 – February 12, 2007 Amendment No. 2 – January 12, 2009 Amendment No. 3 – July 27, 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. 26 TABLE OF CONTENTS I. WISCONSIN TAX INCREMENT LAW AND PROCESS .................... 1 II. TIF No. 26 PLAN OBJECTIVES ..................................................... 2 III. BOUNDARIES OF TIF No. 26 .................................................... 3 IV. EXISTING ZONING AND PROPOSED LAND USES ........................ 5 V. PROPOSED TIF PUBLIC WORKS PROJECTS AND ....................... 6 IMPROVEMENTS VI. DETAILED LIST OF ESTIMATED PROJECT COSTS ......................13 VII. ECONOMIC FEASIBILITY AND METHODS OF FINANCING ...........15 VIII. PROPOSED CHANGES IN ORDINANCES, CODES, & PLANS .......21 IX. LIST OF ESTIMATED NON-PROJECT COSTS ................................22 X. METHODS FOR RELOCATION OF DISPLACED PERSONS ...........22 XI. PROMOTION OF THE ORDERLY DEVELOPMENT OF .................22 THE CITY MAPS 1. Map 1 TIF No. 26 Location Map ……………. ................................... 7 2. Map 2 TIF No. 26 Existing Conditions ............................................... 8 3. Map 3 TIF No. 26 Proposed Improvements ....................................... 9 4. Map 4 TIF No. 26 ½ Mile From TIF 26 Boundary .............................12 LEGAL AND PROCEDURAL 1. Legal Opinion From City Attorney on Project Plan 2. TIF No. 26 Plan Adoption and Creation Resolutions 3. Joint Review Board Resolution City of Janesville Tax Increment Finance District No. 26 Project Plan WISCONSIN TAX INCREMENT LAW AND PROCESS I. Under Wisconsin Statutes Section 66.1105 (1), the State declared that the policy of the State is "to encourage and promote the development of industry to provide greater employment opportunities and to broaden the State's tax base to reduce the tax burden of residents and homeowners." Locally, the City of Janesville has adopted an Industrial Economic Development Policy designed to "diversify the economic base of the City through the retention and expansion of existing businesses ..." In addition, the City seeks to attract new industries through the creation of fully improved industrial parks. One tool designed to help stimulate new development is "Tax Increment Financing (TIF)". When the State Legislature enacted the Tax Increment Law (ss 66.1105) in 1975, they found, "that the accomplishment of the vital and beneficial purposes of the Promotion of Industry Statute (ss 66.1101) is being frustrated by the lack of incentives and financial resources." One stated purpose of the Tax Increment Law, "is to create a viable procedure by which a city or village, through its own initiative and efforts, may finance projects which will tend to accomplish," the promotion of industry. Amendments to Wisconsin’s TIF law enacted in 2007 allow for the expenditure of TIF funds for similar projects located within ½ mile of a TIF boundary. The Tax Increment Law allows a community to recapture the costs of public expenditures made to stimulate new development, from the property taxes generated by the new development. Fundamental to the TIF law is the concept that new development will benefit an area broader than the municipality in which the development occurs. However, an inequity occurs because the community is left to 1 finance the entire cost of public expenditures needed to facilitate the development. The TIF law recognizes that without the TIF expenditures, the development could not have occurred. Thus, the TIF law provides that all property taxes levied on increased property value within a TIF district are retained by the community to finance the public expenditures made within the TIF district. The base value (the value that existed at the time the TIF district is created), however, continues to provide same level of revenues to other taxing jurisdictions. Once all of the public expenditures have been repaid, all taxing jurisdictions can collect taxes levied on the new property value. State statutes are very specific as to how a TIF district is created. First, a TIF project plan is developed and presented to the Plan Commission for a formal public hearing. The Plan 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 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. 26. TIF No. 26 PLAN OBJECTIVES II. Industrial development activities in the City of Janesville are guided by the City's Economic Development Strategy and implemented in accordance with an Industrial Economic Development Policy. The overall goal for the City's industrial development effort is to diversify the City's economic base through the retention and expansion of existing businesses, and through the attraction of growing industrial and large regional service sector employers that will create new employment opportunities and expand the local property tax base. 2 TIF No. 26 will advance the City of Janesville's industrial development objectives and specifically will: A. Promote industry retention and expansion through the redevelopment of an older existing industrial area, thereby retaining jobs and increasing tax base. B. Provide appropriate financial incentives to encourage industrial expansion projects and the lease-up of vacant industrial buildings within the TIF district and for projects within ½ mile of the TIF district. C. 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. D. Generate sufficient new property tax increments within ten (10) years 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. 26 III. DESCRIBED AS FOLLOWS : Beginning at intersection of the East right-of-way line of Beloit Ave. and the South right- of-way line of Burbank Ave.; thence in a Southerly direction along the East right-of-way line of Beloit Ave., 320.0 feet to the Northwest corner of Lot 1, of Certified Survey Map No. 1719917, recorded in the Rock County Register of Deeds Office in Vol. 29, on o Pages 57 – 60; thence S.8944’30”E. along the North property line of said Lot 1, 142.45 o feet; thence S.0052’06”E., 10.00 feet; thence continuing along the North property line of said Lot 1, 449.59 feet to the Northwest corner of Lot 2 of CSM 1719917; thence continuing in an Easterly direction along the North property line of said Lot 2, 258.35 feet to the Westerly right-of-way line of the Burbank Ave. cul-de-sac; thence following the Westerly right-of-way line of the Burbank Ave. cul-de-sac in a Southerly, then 3 Easterly, and then Northerly direction, 399.55 feet to the Easterly right-of-way line of a Union Pacific Railroad Spur shown as Outlot 3 on Certified Survey Map 1076291 in Vol. 13, Pages 303-305; thence in a Northerly direction along the Easterly right-of-way line of said Outlot 3, 376.50 feet to its intersection with the Southwesterly right-of-way line of the Union Pacific Railroad; thence in a Northwesterly direction along the Southwesterly right-of-way line of the Union Pacific Railroad approximately 1,808 feet to its intersection with the East right-of-way line of Beloit Ave.; thence in a Northerly direction along the East right-of-way line of Beloit Ave. 174 feet to the corner of Lot One of Certified Survey Map No. 946060, Vol. 10, Pages 422 and 234; thence o S.3734’30”E. along the southwesterly lot line of said Lot One 337.32 feet; thence continuing along the southwesterly lot line of said Lot One along Curve No. 1-2, o 138.60 feet; thence N.5231’15”E., 52.84 feet; thence continuing along the o southwesterly lot line of said Lot One S.5033’45”E., 369.59 feet; thence continuing o along the southeasterly lot line of said Lot One N.5225’55”E., 341.62 feet to the Easternmost corner of said Lot One, said corner also lying on the East-West Centerline of Section 7-2-13; thence East, along the East-West Centerline of said Section 7-2-13 approximately 1,516 feet to the Center of said Section 7-2-13; thence continuing along o said East-West Centerline 665.90 feet; thence N.031’01”W. parallel to the West Line of the Northeast ¼ of said Section 7-2-13, 1308.16 feet to a point on the North right-of- way line of Conde St.; o thence N.8956’11”W., 665.90 feet to the North-South Centerline of Section 7-2-13; o thence N.011’50”E., 1,340.45 feet to the North ¼ Corner of Section 7-2-13; thence o N.010’37”E., along the North-South line of Section 6-2-13, 2,651.94 feet to the Center 0 of Section 6-2-13; thence N.01-‘37”E., approximately 339 feet to the South right-of-way line of the Wisconsin Southern Railroad; thence in a Westerly direction along the South right-of-way line of said Railroad approximately 1,348’ to the West right-of-way line of Pliny Ave.; thence in a Southerly direction along the West right-of-way line of Pliny Ave. approximately 903’ to the Southeast Corner of Lot 117 of Carrington’s Crown Addition; thence in a Westerly direction along the South line of Carrington Crown Addition approximately 561 feet to the Southwest Corner of Lot 71 of Carrington’s Crown Addition; thence continuing in a Westerly Direction along the South Line of Shield’s 4 Subdivision approximately 561 feet, to the Southeast Corner of Lot 39 of Shield’s Subdivision, said Southeast Corner also being on the East right-of-way line of Beloit Ave.; thence in a Southerly direction along the East right-of-way line of Beloit Ave. approximately 2,069 feet to its intersection with the North Line of Section 7-2-13; o thence S.8945’10”E. along said North Line approximately 1,112 feet to the Northwest Corner of Lot One of a Certified Survey Map recorded in the Rock County Register of Deeds Office as Document No. 1182689 in Vol. 16, Pages 145, 146, and 147; thence o S.013’20”W. 1,345.38 feet to the Southwest Corner of Lot Two of said CSM Document No. 1182689, said Southwest Corner also being located on the North right-of-way line of Conde St.; thence continuing West along the North right-of-way line of Conde St. approximately 2,428 1,107 feet to its intersection with the East right-of-way line of Beloit Ave.; thence in an Easterly direction perpendicular to the East right-of-way line of Beloit Ave. 73 feet to the West right-of-way line of Beloit Ave.; thence in a Southerly direction along the West right-of-way line of Beloit Ave. approximately 1,030 feet to its intersection with the Southwesterly right-of-way line of the Union Pacific Railroad; thence in a Northwesterly direction along the Southwesterly right-of-way line of the Union Pacific Railroad approximately 1,943 feet to the Northernmost corner of City of o Janesville Tax Parcel No. 4122.00079; thence S.005’00”W., 38.6 feet; thence o S.8936’30”W., 441.92 feet to the East right-of-way line of Adel St.; thence continuing o S.8936’30”W., 70.0 feet to the West right-of-way line of Adel St.; thence in a Southerly direction along the Westerly right-of-way line of Adel St. approximately 1,354 feet to its intersection with the Northerly right-of-way line of Anthony Ave.; thence continuing in a Southerly direction perpendicular to the Anthony Ave. right-of-way 35.0 feet to the centerline of Anthony Ave.; thence in an Easterly direction parallel to the centerline of Anthony Ave. 70.0 feet to the Northwest Corner of Lot 1, of Certified Survey Map 819158, Vol. 4, Pages 106 and 107; thence in an Easterly direction along a line parallel to, and 330.0 feet north of the Section Line of the Southwest Quarter of the Northeast Quarter of Section 12-2-12 approximately 1,212 feet to the Northeast corner of Lot Two of Certified Survey Map 1018150, Vol. 12, Pages 267 and 268; thence in a Southerly direction along the East Lot line of said Lot Two 290.0 feet to its intersection with the North right-of-way line of Kellogg Ave.; thence continuing in a Southerly direction 5 perpendicular to the right-of-way line of Kellogg Ave., 82.0 feet to the South right-of- way line of Kellogg Ave.; thence in an Easterly direction along the South right-of-way line of Kellogg Ave. approximately 58 feet to its intersection with the West right-of-way line of Pierce St.; thence in a southerly direction along the Westerly right-of-way line of Pierce St. approximately 1,315 feet to its intersection with the South right-of-way line of Burbank Ave.; thence in an Easterly direction along the South right-of-way line of Burbank Ave. approximately 452.0 feet to its intersection with the East right-of-way line of Beloit Ave. to the point of beginning. (See Map 1 for Boundary). EXISTING ZONING AND PROPOSED LAND USES IV. The City of Janesville is proposing to create TIF No. 26 in an existing industrial area on the City’s south side. TIF District No. 26 boundary as amended contains 176.1 360.7 acres of land including thirty-six (36) forty-four (44) parcels of land totaling 155.1 332.0 acres and 21.0 28.7 acres of street rights-of-way. The proposed TIF district is predominately zoned and used for industrial purposes. Twenty-One Nine (21) (29) of the thirty-six (36) forty-four (44) parcels of land are zoned industrial totaling 140.2 217.3 acres or 90.4% 65.4% of the land within the proposed amended TIF district boundary. Thirteen (13) Nine (9) of the parcels are zoned for commercial uses totaling 12.6 6.0 acres or 8.1% 1.8% of the area. Finally, there are two (2) six (6) R-3 residential parcels of land totaling 2.0 108.7 acres or 1.3% 32.7% of the area. The City has purchased the residential properties for use as right-of-way for Opportunity Drive, which was opened for traffic in 2005. State law requires that not less than 50% of the land within a TIF district be “suitable for ‘industrial sites’ within the meaning of (Wisconsin Statutes) s. 66.1101 and zoned for industrial use”. Within TIF No. 26, 90.4% 65.4% percent of the land is zoned for industrial uses thus meeting the required standard. All lands within TIF No. 26 that are zoned for industrial uses will remain zoned for industrial uses for the life of the TIF district. In addition, the Wisconsin TIF Law prohibits the costs associated with “newly platted residential areas” from being considered as TIF project costs. Even though 6 current zoning includes 108.7 acres of R-3 zoning on vacant land east of Beloit Ave., 7 1 the 2009 Comprehensive Plan calls for industrial development in this area. No residential development is planned for TIF No. 26. The TIF No. 26 Project Plan proposes to improve access to this existing industrial area by upgrading of Beloit Ave. and constructing Opportunity Drive Reuther Way along the Union Pacific Railroad right-of-way. In addition, the Project Plan includes selective property acquisitions to develop new industrial sites. Finally, the Project Plan includes the provision of incentives to encourage development expansion projects. The timing of TIF expenditures will be phased to meet the needs of specific development projects thereby minimizing the risk of incurring development costs in advance of tax-producing development projects. Map 1 shows the existing land uses and zoning in TIF No. 26. PROPOSED TIF PROJECTS AND IMPROVEMENTS V. The public expenditures proposed in TIF No. 26 will be linked to the expansion of the industries within the district. The expansion of the industry will increase property values and will generate new tax increments that will allow the City to recover its TIF costs. The kind, number, and location of all proposed improvements proposed for TIF No. 26 are shown on Map 2 - Improvement Plan. A. Land Acquisition and Site Improvements In order to create the right-of-way for proposed Opportunity Drive Reuther Way, the City may acquire property along the new right-of-way. In addition, right-of- way may be needed as the vacant land east of Beloit Ave. develops. Land acquisition, surveying, soil testing, environmental engineering, and title policy expenses may be considered TIF project costs. Where possible, the properties purchased will be consolidated into new development sites and marketed for redevelopment. In addition, the City may provide reimburse private developers for site improvement costs related to an industrial expansion project or for building renovations needed to accommodate new 8 industries. 9 1 10 B. Transportation Improvements Transportation improvements may include the local share of the reconstruction of Beloit Ave. and the proposed Opportunity Drive Reuther Way through the TIF district. Beloit Ave. may be widened to a 4-lane cross section as the traffic to and through TIF No. 26 increases with development. The traffic signal at the Kellogg and Beloit Avenue intersection may be upgraded with the completion of Opportunity Drive Reuther Way. In addition, the TIF Project Plan allows for the construction of approximately 1,200 feet of Kellogg Ave. east of Beloit Ave. to provide access to the south property boundaries of the industrial uses along Conde St. and the possible signalization of the Beloit Ave./Conde St. intersection. Sidewalks and street lights would be considered TIF transportation cost improvements. A Project Plan boundary Amendment in 2007 included an existing rail spur along the south property line of the properties fronting on the south side of Burbank Ave. This rail spur has not been actively used for many years and may need rehabilitation. The cost to rehabilitate this rail spur to bring it back into service may be included as a TIF development cost. A second boundary amendment in 2009 added a significant tract of land east of Beloit Ave. Access to this land will come from the extension of Todd Dr. which could be developed using TIF funds. In addition, there may need to be a cul- de-sac at the east end of State St. to keep industrial traffic out of the residential area east of Beloit Ave. and south of Delavan Dr. Map No. 2 shows the planned location of these transportation improvements. Wherever street construction occurs, sidewalks or recreational trails, street trees, and landscaping may be installed as part of the transportation improvement. C. Utility Costs As streets like Opportunity Drive Reuther Way, Todd Dr., or Kellogg Ave are improved, sewer, water, gas and electric utilities may be installed within the rights- of-way. In addition, a storm sewer collection system including assessments for underground piping, surface detention ponds and safety fencing may be TIF costs. These utility improvements will be phased along with the street construction to meet the 11 needs of specific development projects. The utility costs will be included as TIF expenditures. D. Marketing and Project Financing In order to attract development opportunities within TIF No. 26, it may be necessary to implement a marketing program. Marketing activities may include the development of brochures, photographs, topography 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 development. Marketing activities may also include the payment of real estate commissions where a private “buyer’s broker” facilitates the sale of a new development site in TIF No. 26. Where a specific industry has been identified, incentive financing may be necessary to ‘close the deal’. Incentive financing may include below interest loans, funding for equipment relocation and/or employee training costs and unique start-up costs, and/or similar financing programs. Financing may go directly to a development project or to capitalize a revolving loan fund to provide financing assistance for projects throughout the TIF district. Changes to State Law also allow the expenditure of TIF funds within ½ mile of an existing TIF boundary. The existing industries and vacant industrial buildings located within ½ mile of TIF No. 26 may also need project financing and/or development incentives to maintain employment levels, or to undertake expansion projects to attract new tenants and create jobs. This Project Plan includes TIF funding to assist with these types of industrial expansion projects within ½ mile of TIF No. 26 (See Map 4). E. Administrative Costs The TIF No. 26 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 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 12 under Wisconsin Statutes ss.66.1105 and Department of Revenue TIF review fees will be included as TIF project costs. 13 13 DETAILED LIST OF ESTIMATED PROJECT COSTS VI. In order to determine the economic feasibility of the proposed TIF District No. 26, 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 2009 construction costs, TIF No. 26 improvement costs are estimated as follows: A. Land Acquisition and Site Improvement $ 598,500 $ 598,500 B. Transportation Improvements 849,833 1,501,800 C. Utility Costs 251,287 601,285 D. Marketing & Project Financing 1,010,350 1,610,350 E. Administration 44,500 57,000 Total Cost of Improvements $ 2,754,470 $ 4,368,935 The estimated cost of TIF expenditures is $2,754,470 $4,368,935. Since the project costs may be incurred over the first eighteen years of the TIF district, while TIF revenues will be collected over a maximum of twenty-three (23) 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 $980,143 $1,417,891 in TIF financing costs, bringing the total estimated TIF No. 26 project costs to $3,734,613 $5,786,826. All project costs and interfund borrowing estimates are based on the most current cost data available in December, 2008 June, 2009 and may be adjusted within the total amount shown without modification or amendment of this TIF No. 26 Project Plan. All of the TIF No. 26 project costs except debt service and interfund borrowing will be incurred during the first seven years of the TIF District. Table No. 1 shows the schedule and timing of the proposed expenditures. The actual timing of expenditures 14 will be contingent on the commitments from industries expanding their facilities and 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. 26 Summary of TIF Costs By Year Year Type of Cost Cost 2004 Transportation, Utilites, Marketing, $1,021,396 $1,015,365 Project Financing & Administration 2005 Transportation, Marketing and $343,847 343,847 Administration 2006 Site Development, Administration $126,247 126,247 2007 Project Financing & Administration $204,696 204,696 2008 Land Acq., Site Development & 205,591 3,863 Administration 2009 Project Financ. & Admin. 325,950 394,450 2010 Proj. Financing, Marketing, Utilities 289,450 474,450 Administration 2011 Transportation, Proj. Financing, Utilities. 205,300 551,400 Administration 2012 Transportation, Proj. Financing, Utilities, 31,993 565,000 Administration 2013 Transportation, Proj. Financing, Utilities, 683,586 Administration Total Cost of Improvements $ 2,754,470 $4,368,935 Debt Service and Interfund Borrowing 980,143 1,417,891 Total Estimated TIF No. 26 Costs $ 3,734,613 $5,786,826 15 -------------------------------------------------------------------------------------------------------- Prepared By: Economic Development Agency 16 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 eighteen years in which to make the improvements needed to stimulate and support redevelopment. 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 5 years after the last expenditure is made. In no case shall the TIF district have a life longer than twenty three (23) years. The City of Janesville's Tax Increment District No. 26 was created by Council action in November, 2003, amended in February, 2007, and amended again in January, 2009, and amended in June, 2009.. Therefore, all TIF project improvements must be completed by November, 2021. The taxes on any increased property value in the district between 2004 and 2026 will be retained by the City to repay the TIF project costs. TIF No. 26 will be dissolved when all TIF project costs are repaid, or in November, 2026, 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 three (23) 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. 26. All TIF costs related to industrial expansion projects are incurred according to the schedule shown in Table 17 No. 1. TIF property value increases for are shown for three separate expansion projects that occurred between 2003 and 2008. In addition, as new industrial sites are acquired and improved with streets and utilities, new industrial projects will be developed. The Project Plan documents $8,889,400 in new property valuation that was added by expansion projects by 2008. In addition, projected expansions in 2008 and 2010 2010, 2012, 2014, and 2016 will add $1,000,000 $2,000,000 in new valuation in those years. 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 industries locating within TIF No. 26 that will guarantee the minimum amount of investment needed to fully amortize all TIF costs associated with each project within 10 years. The overall TIF District should be able to recover all costs by the year 2023 thst 2024, the 20 21 year of the TIF district. The equalized value property tax mill rate levy is projected to decrease by 1.0% per year and increases in equalized property valuation of 2.0% due to inflation are projected. These assumptions are conservative, given the uncertainty in the economy and the efforts of the State Legislature to control municipal spending. Based on these assumptions, the $14,299,200 $17,031,300 (plus $6,433,800 in inflation value) in new property value generated by development within TIF No. 26 will create sufficient new property tax increments to repay all planned TIF project costs. The City will limit the implementation of all TIF expenditures until the actual levels of new property value are known. Table 2 shows TIF costs including financing of $3,734,613 $5,786,826. These monies will only be expended if the property value of the industrial construction is adequate to ensure a sufficient tax increment to recover the cost within the life of the TIF district. If $14,299,200 $17,031,300 of new property value is created as projected in Table 2, the TIF district will generate a total of $4,635,263 $6,623,728 in property tax increments over the 23 year life of the district. Since property tax increments are projected to exceed TIF costs by $900,649 $836,901 TIF No. 26 is found to be 18 economically feasible. Projected TIF revenues will cover TIF costs within 20 21 years and the City projects that TIF No. 26 may be dissolved by 2023 2024. 19 $411,87300$980,143$342,486 225,784 01-Dec-08 TIF No. 26 Amendment No. 2 JDV City of Janesville Tax Increment vs. TIF Cost Comparison EqualizedTaxLongExistingCapital Exp. Const.TotalValueIncrementTerm Debt& FutureInterfundTIFTIF YearValueIncremental Mill Rate& Misc.DebtServiceDebtInterestBalanceYearYear TID Value RevenueProceedsCostsServiceCosts 2003000.02275$0$06,031$0($6,031)2003 2004000.02252$4,504$1,265,0001,015,365$30$248,07820041 20054,958,2004,958,2000.02178$5,386$170,000$92,554343,847$0($12,937)20052 20061,690,7006,648,9000.02047$114,990$125,000$133,295126,247$1,475($33,964)20063 20072,240,5008,889,4000.02085$164,510$0$150,400204,696$2,657($227,207)20074 2008141,9009,031,3000.02085$197,600$151,5530$9,088($190,248)20085 200909,211,9260.02064$192,070$152,75828,783$7,610($187,329)20096 20101,000,00010,416,1650.02044$215,006$153,77873,593$7,493($207,187)20107 2011010,624,4880.02023$217,113$149,677111,990$8,287($260,028)20118 2012010,836,9780.02003$219,241$155,303163,848$10,401($370,339)20129 2013011,053,7170.01983$221,390$439,525138,936$14,814($742,225)201310 2014011,274,7910.01963$223,559$393,030129,238$29,689($1,070,622)201411 2015011,500,2870.01943$225,750125,133$42,825($1,012,830) 201512 2016011,730,2930.01924$227,962121,028$40,513($946,408)201613 2017011,964,8990.01905$230,197116,922$37,856($870,990)201714 2018012,204,1970.01886$232,452112,817$34,840($786,195)201815 2019012,448,2810.01867$234,73088,153$31,448($671,065)201916 2020012,697,2460.01848$237,03152,275$26,843($513,153)202017 2021012,951,1910.01830$239,35421,351$20,526($315,676)202118 2022013,210,2150.01811$241,6990$12,627($86,604)202219 2023013,474,4190.01793$244,0680$3,464$154,000202320 2024013,743,9080.01775$246,4600$0$400,460202421 2025014,018,7860.01758$248,8750$0$649,335202522 2026014,299,1620.01740$251,3140$0$900,649202623 10,031,300Totals:$4,635,263$1,560,000$1,971,873$2,980,254$342,486 Increment +Debt-Capital Exp.-Debt Serv.$900,649 Assumptions:Expenditures: AmountYear 1. Mill Rate Growth :0.9900Direct Cost6,0312003 2. Interfund Cost :4.0%Debt1,015,3652004 3. Value Growth : 1.020Debt343,8472005 4. G.O. Bond Rate :4.00%Debt126,2472006 Debt204,6962007 Debt205,5912008 Debt325,9502009 Debt289,4502010 Debt205,3002011 Direct Cost26,4002012 Direct Cost5,5932013 Project Costs2,754,470 Interest Costs980,143 Total TIF Costs$3,734,613 J:\Development\Economic Development\TIF Districts\TIF 26\Amendment #3\[TIF 26 Plan Amendment 3.xls]Summary Prepared By: Economic Development Agency 18 Debt Direct Cost $479,66200$320,901 617,328 01-Jun-09 TIF No. 26 Amendment No. 3 JDV City of Janesville Tax Increment vs. TIF Cost Comparison EqualizedTaxLongExistingCapital Exp. Const.TotalValueIncrementTerm Debt& FutureInterfundTIFTIF YearValueIncremental Mill Rate& Misc.DebtServiceDebtInterestBalanceYearYear TID Value RevenueProceedsCostsServiceCosts 2003000.02275$0$06,031$0($6,031)2003 2004000.02252$4,504$1,265,0001,015,365$30$248,07820041 20054,958,2004,958,2000.02178$5,386$170,000$92,554343,847$0($12,937)20052 20061,690,7006,648,9000.02047$114,990$125,000$133,295126,247$1,475($33,964)20063 20072,240,5008,889,4000.02085$164,510$0$150,400204,696$2,657($227,207)20074 2008141,9009,031,3000.02058$198,821$326,094$151,5533,863$2,763$139,52920085 200909,211,9260.02038$189,611$191,3560$0$137,78420096 20102,000,00011,436,1650.02017$233,039$200,20356,209$0$114,41120107 2011011,664,8880.01997$235,323$194,746120,956$0$34,03220118 20122,000,00013,938,1860.01977$278,371$194,071195,956$0($77,624)20129 2013014,216,9490.01957$281,100$477,094270,551$2,329($546,498)201310 20142,000,00016,541,2880.01938$323,786$434,299359,643$16,395($1,033,049)201411 2015016,872,1140.01918$326,959$44,769348,419$30,991($1,130,269) 201512 20162,000,00019,249,5560.01899$369,301$33,350337,195$33,908($1,165,421)201613 2017019,634,5470.01880$372,920$27,216325,970$34,963($1,180,650)201714 2018020,027,2380.01862$376,574$40,850314,746$35,420($1,195,092)201815 2019020,427,7830.01843$380,265303,522$35,853($1,154,203)201916 2020020,836,3390.01824$383,991252,853$34,626($1,057,690)202017 2021021,253,0660.01806$387,754195,860$31,731($897,527)202118 2022021,678,1270.01788$391,554133,070$26,926($665,969)202219 2023022,111,6890.01770$395,39271,264$19,979($361,820)202320 2024022,553,9230.01753$399,2670$10,855$26,591202421 2025023,005,0020.01735$403,1790$0$429,771202522 2026023,465,1020.01718$407,1310$0$836,901202623 17,031,300Totals:$6,623,728$1,886,094$2,365,756$4,986,263$320,901 Increment +Debt-Capital Exp.-Debt Serv.$836,901 Assumptions:Expenditures: AmountYear 1. Mill Rate Growth :0.9900Direct Cost6,0312003 2. Interfund Cost :3.0%Debt1,015,3652004 3. Value Growth : 1.020Debt343,8472005 4. G.O. Bond Rate :4.25%Debt126,2472006 Debt204,6962007 Direct Cost3,8632008 Debt394,4502009 Debt474,4502010 Debt551,4002011 Debt565,0002012 Debt683,5862013 Project Costs4,368,935 Interest Costs1,417,891 Total TIF Costs$5,786,826 #N/A Prepared By: Economic Development Agency 19 Debt Direct Cost 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. 20 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. 26 may be substantially different that those shown in the project plan. 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 three (23) year life of the TIF district. The development of TIF No. 26 will facilitate industrial expansion projects, increase property values, and create new jobs in the City of Janesville. These jobs will help diversify the local economy and the increased manufacturing payrolls will have a positive multiplier effect in the trade and service sectors. PROPOSED CHANGES IN ORDINANCES, CODES, & PLANS VIII. The proposed TIF No. 26 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. Ninety and Four Tenths percent (90.4%) Sixty-Five (65%) of the properties within TIF No. 26 has been found to be suitable for industrial development in accordance with Wisconsin's Promotion of Industry Statute ss 66.1101, 21 and will remained zoned for industrial purposes for the life of the TIF district. All development in TIF No. 26 will have to conform to the State Building Codes and will be subject to the City's permitting and inspection procedures. The TIF No. 26 project plan conforms to all relevant State and local ordinances, plans, and codes, thus, no changes to the existing regulations are proposed or needed. 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 the proposed TIF district, but within ½ mile of the TIF boundary. These expenditures are now allowed by recent changes to Wisconsin’s TIF law. The City does plan to use a combination of federal and state funding sources to construct the upgrade to Beloit Ave. and to construct Opportunity Drive Reuther Way. 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. 26 Project Plan does plan land acquisition for road right-of-way and future industrial site development. There may be displacement of persons or business needing relocation assistance. For any reason, should relocation 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 Beloit Ave./Opportunity Drive improvements, federal relocation laws will be followed as well. 22 PROMOTION OF THE ORDERLY DEVELOPMENT OF THE CITY XI. The creation of TIF No. 26 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. 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. 26 continues the industrial development on the City’s southeast side that began with the creation of TIF No. 5 in 1988, TIF No. 16 in 1996, and TIF No. 22 in 1999. TIF No. 26 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. 23 Resolution No. 2003 – 390 RESOLUTION APPROVING THE PROJECT PLAN AND CREATING TAX INCREMENT FINANCE DISTRICT No. 26 WITHIN THE CITY OF JANESVILLE ROCK COUNTY, WISCONSIN WHEREAS, the City of Janesville has prepared a Project Plan and proposed a boundary for the creation of City of Janesville Tax Increment Finance District No. 26 in accordance with the provisions of Wisconsin Statues ss 66.1105, a copy of said Project Plan and proposed TIF No. 26 boundary are attached and herein incorporated to this Resolution; and WHEREAS, the Plan Commission has held a public hearing on the proposed creation of Tax Increment District No. 26 and the proposed boundaries thereof, and recommended the approval of the Project Plan for Tax Increment District No. 26 and the creation of the new TIF district; and WHEREAS, the Chief Executive Officer of the local 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. 26 have been notified pursuant to Section 66.1105 (4) (a) and (e), Wisconsin State Statutes; and WHEREAS, more than 50% of the land within the proposed TIF District No. 26 is currently zoned for industrial uses and has been found suitable for industrial development within the meaning of Section 66.1101, Wisconsin State Statutes and will remain zoned for industrial purposes for the 23 year life of the TIF District; and WHEREAS, the project costs directly serve to promote industrial development, consistent with the purpose for which the TIF District is created, and the improvement of such areas for industrial projects will significantly enhance the value of all property within the TIF District; and WHEREAS, the aggregate equalized value of taxable property within all of Janesville's TIF Districts does not exceed seven percent (7%) of the total equalized value of property within the City of Janesville; and WHEREAS, the Project Plan for Tax Increment District No. 26 is economically feasible and has been found to be in accordance with the City's General Development Plans, Zoning Ordinance, and other relevant policies and that this project is in the best interest of the City of Janesville and for the benefit of its residents. Resolution No. 2007 – 366 RESOLUTION APPROVING AMENDMENT No. 1 TO THE PROJECT PLAN FOR TAX INCREMENT FINANCE DISTRICT NO. 26 WITHIN THE CITY OF JANESVILLE, ROCK COUNTY, WISCONSIN WHEREAS, in November, 2003 the Common Council of the City of Janesville adopted a Project Plan and created Tax Increment Finance District No. 26 in accordance with the provisions of Wisconsin Statues § 66.1105, and WHEREAS, Wisconsin Statutes Section 66.1105 (4)(h) provides for the amendment of TIF Project Plans following notice to all overlying jurisdictions, public hearing, and review and recommendation by the City Plan Commission; and WHEREAS, the City of Janesville has prepared Amendment No. 1 to the Project Plan for TIF No. 26 in order to revise the projected budget add additional land to the TIF No. 26 boundary as provided by Wisconsin’s TIF law; and WHEREAS, the Plan Commission has held a public hearing on Amendment No. 1 to the Project Plan of Tax Increment District No. 26, the proposed boundary changes thereof and recommended its approval; and WHEREAS, the Chief Executive Officer of the 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. 26 have been notified pursuant to Section 66.1105 (4) (a) and (e), Wisconsin State Statutes; and WHEREAS, all of the land within TIF District No. 26, as amended, is declared to be an “industrial TIF district”, where more than 51% of the land is currently zoned either M-1 Industrial or M-2 Industrial, has been found suitable for industrial development within the meaning of Section 66.1101, Wisconsin State Statutes, and will remain zoned for industrial purposes for the 27-year life of the TIF District; and WHEREAS, the project costs directly serve to promote industrial development, consistent with the purpose for which the TIF District is created, and the improvement of such areas for industrial projects will significantly enhance the value of all property within the TIF District; and WHEREAS, the equalized value of taxable property within TIF No. 26 plus the value increment of all existing Janesville TIF Districts does not exceed twelve percent (12%) of the total equalized value of property within the City of Janesville; and Resolution No. 2008 – 557 RESOLUTION APPROVING AMENDMENT No. 2 TO THE PROJECT PLAN FOR TAX INCREMENT FINANCE DISTRICT NO. 26 WITHIN THE CITY OF JANESVILLE, ROCK COUNTY, WISCONSIN WHEREAS, on November 24, 2003 the Common Council of the City of Janesville adopted a Project Plan and created Tax Increment Finance District No. 26 in accordance with the provisions of Wisconsin Statues § 66.1105, and WHEREAS, on February 12, 2007, the Common Council of the City of Janesville adopted Amendment No. 1 to the Project Plan for TIF District No. 26 in accordance with the provision of Wisconsin Statutes § 66.1105; and WHEREAS, Wisconsin Statutes Section 66.1105 (4)(h) provides for the amendment of TIF Project Plans following notice to all overlying jurisdictions, public hearing, and review and recommendation by the City Plan Commission; and WHEREAS, the City of Janesville has prepared Amendment No. 2 to the Project Plan for TIF No. 26 in order to revise the projected budget to permit the expenditure of TIF No. 26 funds on development projects located within ½ mile of the TIFNo. 26 boundary as provided by Wisconsin Statutes Section 66.1105 (2)(f)1.n.; and WHEREAS, the Plan Commission has held a public hearing on Amendment No. 2 to the Project Plan of Tax Increment District No. 26, the proposed boundary changes thereof and recommended its approval; and WHEREAS, the Chief Executive Officer of the 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. 26 have been notified pursuant to Section 66.1105 (4) (a) and (e), Wisconsin State Statutes; and WHEREAS, all of the land within TIF District No. 26, as amended, is declared to be an “industrial TIF district”, where more than 51% of the land is currently zoned either M-1 Industrial or M-2 Industrial, has been found suitable for industrial development within the meaning of Section 66.1101, Wisconsin State Statutes, and will remain zoned for industrial purposes for the life of the TIF District; and WHEREAS, the project costs directly serve to promote industrial development, consistent with the purpose for which the TIF District is created, and the improvement of such areas for industrial projects will significantly enhance the value of all property within the TIF District; and Resolution No. 2009 – 617 RESOLUTION APPROVING AMENDMENT No. 3 TO THE PROJECT PLAN FOR TAX INCREMENT FINANCE DISTRICT NO. 26 WITHIN THE CITY OF JANESVILLE, ROCK COUNTY, WISCONSIN WHEREAS, on November 24, 2003 the Common Council of the City of Janesville adopted a Project Plan and created Tax Increment Finance District No. 26 in accordance with the provisions of Wisconsin Statues § 66.1105, and WHEREAS, on February 12, 2007, the Common Council of the City of Janesville adopted Amendment No. 1 to the Project Plan for TIF District No. 26 in accordance with the provision of Wisconsin Statutes § 66.1105; and WHEREAS, on January 12, 2009, the Common Council of the City of Janesville adopted Amendment No. 2 to the Project Plan for TIF No. 26 in accordance with the provisions of Wisconsin Statutes § 66.1105; and WHEREAS, Wisconsin Statutes Section 66.1105 (4)(h) provides for the amendment of TIF Project Plans following notice to all overlying jurisdictions, public hearing, and review and recommendation by the City Plan Commission; and WHEREAS, the City of Janesville has prepared Amendment No. 3 to the Project Plan for TIF No. 26 in order to revise the projected budget to amend the boundaries of TIF No. 26 to include additional industrially-zoned lands consistent with the development purposes for which TIF No. 26 was created; and WHEREAS, the Plan Commission has held a public hearing on Amendment No. 3 to the Project Plan of Tax Increment District No. 26, the proposed boundary changes thereof and recommended its approval; and WHEREAS, the Chief Executive Officer of the 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. 26 have been notified pursuant to Section 66.1105 (4) (a) and (e), Wisconsin State Statutes; and WHEREAS, all of the land within TIF District No. 26, as amended, is declared to be an “industrial TIF district”, where more than 51% of the land is currently zoned either M-1 Industrial or M-2 Industrial, has been found suitable for industrial development within the meaning of Section 66.1101, Wisconsin State Statutes, and will remain zoned for industrial purposes for the life of the TIF District; and Resolution 2009 - 617 Page 2 WHEREAS, the project costs directly serve to promote industrial development, consistent with the purpose for which the TIF District is created, and the improvement of such areas for industrial projects will significantly enhance the value of all property within the TIF District; and WHEREAS, the equalized value of taxable property within TIF No. 26 plus the value increment of all existing Janesville TIF Districts does not exceed twelve percent (12%) of the total equalized value of property within the City of Janesville; and WHEREAS, the amended Project Plan for Tax Increment District No. 26 is economically feasible and has been found to be in accordance with the City's Master Plans, Zoning Ordinance, and other relevant uses and that this project is in the best interest of the City of Janesville and for the benefit of its residents. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville that it hereby approves Amendment No. 3 to the Project Plan for City of Janesville Tax Increment Finance District No. 26 and refers the Amended Project Plan to a Joint Review Board for review and approval according to 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: Economic Development DIrector CITY ATTORNEY’S OFFICE MEMORANDUM June 9, 2009 MEMORANDUM TO: J. Douglas Venable, Director of Economic Development FROM: Wald Klimczyk, City Attorney RE: Legal Opinion – Amendment No. 3 to T.I.F. No. 26 Project Plan Sec. 66.1105(4)(f), Wis. Stats., of the Tax Increment Financing Law mandates that the project plan or any plan amendment for a 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 “Amendment No. 3 to the Tax Incremental Finance District No. 26 Project Plan,” dated July 27, 2009 (the planned date for City Council action) 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:\Agenda Review\Approved Agenda Items\2009\6-22-2009\TIF 26 Amend 3 Attach.doc J. Douglas Venable June 9, 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 “Amendment No. 3 to the Tax Incremental Finance District No. 26 Project Plan,” dated July 27, 2009 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 J:\Agenda Review\Approved Agenda Items\2009\6-22-2009\TIF 26 Amend 3 Attach.doc J:\Agenda Review\Approved Agenda Items\2009\6-22-2009\TIF 26 Amend 3 Attach.doc