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#6 Introduce amendment #2 to TIF #22 (File Res. #2009-621) Economic Development Memorandum Date: July 6, 2009 TO: City Council FROM: Douglas Venable, Director of Economic Development SUBJECT: Introduction of proposed Amendment No. 2 to the Project Plan for Tax Increment Finance District No. 22 and Referral to Plan Commission for Public Hearing. (File Res. No. 2009-621) I. Summary City staff is proposing a second amendment to TIF No. 22 to add approximately 32 acres of existing industrial land and to authorize the expenditure of TIF funds on projects located within ½ mile of the TIF district. 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 August 10, 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. 22 boundary amendment will add a rail served industrial site and allow for continued industrial development. Staff recommends that the Council introduce the Amendment No. 2 to the Project Plan for TIF No. 22 and refer it to the Plan Commission for a public hearing and recommendation. III. 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 August 3, 2009. The Plan Commission then makes a 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 ??? Economic Development Department Box 5005 Janesville, WI 53547-5005 755-3180 Introduction of TIF 22 Amendment July 6, 2009 Page 2 chosen at large, meet and approve the amendment to the TIF district within 30 days of Council action. IV. Amendment No. 2 toTIF No. 22 TIF No. 22 was developed as an ‘industrial TIF district’ to stimulate the expansion and development of an emerging industrial area centered along Beloit Ave. and STH ‘11’. The construction of the 700,000 SF Helgesen building, the 490,000 SF Deere warehouse; and the 250,000 SF Helgesen Spec Building have all been helped by the development of the industrial park and incentives provided by TIF No. 22. Proposed Amendment No. 2 will modify the TIF No. 22 boundary to include 57 additional acres of industrial land on the east side of Beloit Ave. This land is improved by a 140,000 SF industrial building currently leased by CRT Processing. Also included is a vacant industrial site on Burbank Ave. with access to rail service. The City has a shortage of rail served industrial properties and it is important to have TIF incentives available to market and improve this rail-served industrial site. Finally, Amendment 2 includes the now vacant Quality Wood Treatment Property. This site may need TIF incentives to attract a new user. Proposed Amendment No. 2 also includes the Plan changes and budget to allow for the use of TIF funds on development projects located within ½ mile of the boundary for TIF No. 22. This type of TIF expenditure was authorized by recent changes to State statutes and the City has been amending its TIF plans to include this type of spending. The flexibility to accommodate projects that are located within ½ mile of an existing TIF district enhances the City’s development efforts and helps avoid the need to create new TIF districts for projects not located within an existing TIF district. In accordance with City policy, 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. 2 - TIF No. 22 Project Plan Resolution 2009 – 621 Cc Eric Levitt, City Manager Jay Winzenz, Director of Administrative Services TAX INCREMENT FINANCE DISTRICT No. 22 PROJECT PLAN Adopted September 27, 1999 AMENDMENT NO. 1 - October 25, 2004 AMENDMENT NO. 2 – August 10, 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. 22 TABLE OF CONTENTS I. WISCONSIN TAX INCREMENT LAW AND PROCESS .................... 1 II. TIF No. 22 PLAN OBJECTIVES ..................................................... 2 III. BOUNDARIES OF TIF No. 22 .................................................... 3 IV. EXISTING ZONING AND PROPOSED LAND USES ........................ 4 5 V. PROPOSED TIF PUBLIC WORKS PROJECTS AND ....................... 7 8 IMPROVEMENTS VI. DETAILED LIST OF ESTIMATED PROJECT COSTS ......................10 12 VII. ECONOMIC FEASIBILITY AND METHODS OF FINANCING ...........14 16 VIII. PROPOSED CHANGES IN ORDINANCES, CODES, & PLANS .......19 22 IX. LIST OF ESTIMATED NON-PROJECT COSTS ................................19 23 X. METHODS FOR RELOCATION OF DISPLACED PERSONS ...........20 23 XI. PROMOTION OF THE ORDERLY DEVELOPMENT OF .................20 24 THE CITY MAPS 1. Map 1 TIF No. 22 Existing Land Use and Zoning .............................. 6 2. Map 2 TIF No. 22 Improvement Plan ................................................. 8 9 3. Map 3 TIF No. 22 – ½ Mile Boundary ................................................13 LEGAL AND PROCEDURAL 1. TIF No. 22 Plan Adoption and Creation Resolutions 2. Legal Opinion From City Attorney on Project Plan 3. Joint Review Board Resolution City of Janesville Tax Increment Finance District No. 22 Project Plan I. WISCONSIN TAX INCREMENT LAW AND PROCESS Under Wisconsin Statutes Section 66.1101 (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 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 finance the entire cost of public expenditures needed to facilitate the development. The TIF law recognizes that without the 1 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 the 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 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. Amendments to a TIF Project Plan may be made by following the same procedures. TIF project plan amendments may be necessary to revise projected budgets and/or to amend the boundaries of the original TIF district. This document will meet the statutory requirements for a Project Plan for Tax Increment Finance District No. 22. II. TIF No. 22 PLAN OBJECTIVES Industrial development activities in the City of Janesville are guided by the City's Economic Development Strategy and implemented in accordance with an 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. 22 will advance the City of Janesville's industrial development objectives and specifically will: A. Promote industry retention, expansion, and attraction through the development of a new fully improved industrial park, thereby creating new jobs and increased tax base. B. Provide appropriate financial incentives to encourage industrial expansion projects within the TIF district and for projects located 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 eight (8) to 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. III. BOUNDARIES OF TIF No. 22 Part of the NW ¼ and part of the SW ¼ of Section 18, part of the SW ¼ of Section 7, and th part of the NW ¼ of Section 19, all being in T.2N., R.13E of the 4 P.M., LaPrairie Township; and Part of the SE ¼ of Section 12, T.2N., R.12E.; also Part of the NE ¼ and th Part of the SW ¼ and all of the SE ¼ of Section 13, T.2N., R.12E.; also of the 4 P.M., Rock Township, and Part of the NW ¼ and Part of the NE ¼ of Section 24, T.2N.,R.12E. th also of the 4 P.M., Rock Township; all in Rock County, Wisconsin. DESCRIBED AS FOLLOWS: Begin at the NW Corner of said Section 18; Thence o S.005’50”E. along the West Line of said Section 18, 628.26 feet to the SW Corner of a o Certified Survey Map as recorded in Volume 13, Pages 460 and 461; thence S.8944’30”E. along the South Line of said Certified Survey Map, 433.05 feet to an iron pin; Lot 1 of a Certified Survey Map recorded at the Rock County Register of Deeds as Document No. o 1719917 in Vol. 29, Pages 57, 58, 59, and 60; thence S.8944’30”E. along the North line of o said Lot 1 142.45 feet to a jog in said North Line; thence S.0052’06”E. 10.00 feet; thence o S.8945’29”E. continuing along North Line 471.80 feet to the point of a curve; thence continuing in an Easterly direction along the North Line of Lot 2 of said CSM along a curve convexed Southerly, 236.14 feet, having a radius of 452.91 feet and a chord bearing oo N.7520’38”E. 233.47 feet to the most Northeast corner of said Lot 2; thence S.018’40”W. along the West line of Burbank Ave, 33.90 feet to a point of curve; thence continuing along 3 the right-of-way line of Burbank Ave. around the cul-de-sac 365.65 feet to the Southerly corner of Outlot 3 of Certified Survey Map recorded at the Rock County Register of Deeds as Document 1076291 in Vol. 13, Pages 303, 304, and 305; thence along the East line of said Outlot 3 376.50 feet to the Southwesterly line of the Union Pacific Railroad; thence o S.3602’35”E. along the Southwesterly line of said railroad approximately 1,830 feet to the o North line of Section 18-2-13; thence N.8944’30”W. along said North line of Section 18 1,414.15 feet to the Northwest corner of Lot Two of a Certified Survey Map recorded at the Rock County Register of Deeds as Document 1085847 in Vol. 13, Pages 460 and 461; o thence S.006’15”E. along the East line of said Lot Two, 558.267 feet to the Southwest corner of Lot Two of said CSM, said Southwast corner also lying on the North line of Venture Drive; thence continuing in a Southerly direction approximately 70.0 feet to the Northeast corner of Lot 1 of a Certified Survey Map recorded at the Rock County Register of Deeds as Document No. 1459715 in Vol. 23 on Pages 254, 255, 256, and 257; said Northeast corner also being located on the South line of Venture Drive; thence 0 N.8944’40”W. 395.28 feet along the South line of Venture Dr. to the Northwest corner of oo said Lot 1; thence S.006’15”E. 551.0 feet to an iron pin; thence S.8944’30”E. 2,028.42 feet to the SE Corner of a Certified Survey Map as recorded in Volume 19, Pages 496, 497 o and 498; thence S.054’30”E. along the North-South Centerline of said Section 18, 1,414.72 feet to an iron pin on the relocated North Line of Avalon Road; thence oo N.8945’23”W. along said North Line, 2,248.51 feet to an iron pin; thence N.005'’0"W. o 73.95 feet to an iron pin; thence N.8944’42”W. 182.86 feet to an iron pin; thence o N.5851’35”W. 20.04 feet to an iron pin located on East right of way Prairie Road (Beloit o Ave); thence N.005’50”W. along said right of way, 489.3 feet; thence due West, 33 feet o being the NE Corner of property owned by L & J Gore; thence N.8841’50”W. along the North Line of said Gore property, 490.05 feet to NW Corner of said Gore property; thence o S.005’50”E.along West Line of said Gore property, 400.0 feet to SW Corner of said Gore o property; thence S.8841’50”E. along South Line of said Gore property, 450.04 feet to a line parallel with and 40.0 feet West of the East Line of the NE.1/4 of said Section 13; thence o S.005’50”E. along said parallel line, 90.31 feet to vision triangle at intersection of Prairie o (Beloit Ave.) and Avalon Roads (STH 11); thence S.5957’30”W. along said vision triangle, o 161.45 feet to North Line Avalon Road (STH 11); thence S.2615’45”E., 223.37 feet; thence o S.8959’47”E., 135.87 feet to the East Line of C.T.H. “G” (Prairie Ave.); thence oo S.0110’56”W., along said East Line of C.T.H.”G”, 135.84 feet; thence S.2136’55”W., o continuing along said East Line, 53.56 feet; thence S.0124’58”W., continuing along said o East Line, 242.64 feet; thence S.8920’59”E., 0.37 feet to a line that is 33.0 feet East of and o parallel with the East line of the SW ¼ of said Section 18; thence S.0000’13”W., along o said line, 2,079.14 feet; thence S. 0018’59”E., along a line that is 33.0 feet East and parallel with the East line of the NW ¼ of said Section 19, a distance of 401.19 feet; thence ooo N.8827’04”W., 33.02 feet; thence N.8827’04”W., 3,859.99 feet; thence N.0002’51”W., 1,704.64 feet to a point on the North line of the SE. ¼ of the SW. ¼ of said Section 13; o thence S.8902’36”E., along said North line, 1,291.03 feet to the NE. corner of said SE. ¼ o of said SW. ¼ of said Section 13; thence N.0000’24”E., along the North-South centerline of said Section 13, a distance of 1,283.03 feet to the South line of S.T.H. 11 (Avalon Road); o thence S.8841’40”E., along said South line, 1,757.16 feet to the West line of a Certified o Survey Map as recorded in Volume 8, Pages 114 and 115; thence S.0118’01”W., along 4 said West line, 217.05 feet to the SW. corner of said Certified Survey Map; thence o S.8842’05”E., along the South line of said Certified Survey Map, 110.0 feet to the SE. o corner of said Certified Survey Map; thence N.0118’01”E. along the East line of said o Certified Survey Map, 200.0 feet; thence S.8841’40”E., 70.0 feet to the NW. corner of Lot One of a Certified Survey Map as recorded in Volume 8, Pages 124 and 125; thence o S.0118’01”W. along the West line of said Lot One, 200.0 feet to the SW. corner of said Lot o One; thence S.8842’05”E. along the South line of said Lot One, 115.05 feet to the SE. o corner of said Lot One; thence N.0118’01”E. along the East line of said Lot One and said line extended North, 309.02 feet to a point on the South line of Outlot 1 of a Certified Survey Map as recorded in Volume 24, Pages 355, 356, 357, 358, and 359; thence o N.8841’40”W. along South line of Outlot 1, 2,054.32 feet to the North-South Centerline of o said Section 13; thence N.0002’50”W. along said North-South Centerline, 2,589.84 feet to N1/4 Corner said Section 13; thence continue North along North-South Centerline of said o Section 12, 639.87 feet to SW Corner Lot 8, Burbank Park Addition; thence S.8840’E., o 535.02 feet to East Line Jackson Street; thence N.009’E. 70 feet to South Line Jackson School property; thence East along said Jackson School property, 786 feet to SE Corner said Jackson School; thence North along East Line said Jackson School, 310 feet more or less to SW Corner Certified Survey Map as recorded in Volume 1, Page 219; thence o S.8832’E. 350.03 feet to SE Corner Certified Survey Map as recorded in Volume 3, Pages o 264 and 265; thence N.017’E. 100 feet to SW Corner Lot 6, Second Sundown Acres o Addition; thence S.8832’E. along South Line said Addition, 862.53 feet to West right of way Prairie Road line of Beloit Ave; thence South along said right of way, 160 feet more or less; thence in an Easterly direction perpendicular to the West line of Beloit Ave. 93.0 feet to the Northwest corner of Lot 1 of a Certified Survey Map recorded at the Rock County Register of Deeds as Document No. 1719917 in Vol. 29, Pages 57, 58, 59, and 60 and the , 1,130 feet more or less to South Line said Section 12; thence East along said South Line, 33 feet to Point of Beginning. IV. EXISTING ZONING AND PROPOSED LAND USES The City of Janesville is proposing to create TIF No. 22 to expand an existing industrial park on the City’s south side. At the time of its creation, TIF District No. 22 contained four parcels of land vacant land totaling 285 acres in an industrially zoned area on the City's south east side. Amendment No. 1 to the TIF No. 22 Project Plan will change changed the original boundary to add an additional 226 acres of vacant land located south of STH 11 (Avalon Road). Amendment No. 2 to the TIF No. 22 Project Plan will add an additional 57 acres of industrial land to the TIF boundary, bringing the total size of TIF No. 22 to 569 acres. The parcels are unimproved and have been used for agricultural crop 5 production. The City purchased 85 acres of the land within TIF No. 22 in late 1998. The 85 acres of land east of Beloit Ave. within TIF No. 22 is currently zoned M-1 Light Industrial. In 1999, the City purchased the 200 acres of land west of Beloit Ave. and zoned it M-1 Light Industrial and Conservancy. Generally, the 142 acres of land south of a natural drainage swale that runs from the northeast to the southwest were zoned and used for industrial purposes. The 58 acres of land north of this drainage swale were zoned Conservancy and was reserved for future parks and open space. In 2004, the City negotiated to purchase an additional 226 acres of land located south of STH 11. Upon annexation, this land will be was zoned M-1 Light Industrial and included within the boundaries of TIF No. 22 by approval of Amendment No. 1 to the TIF No. 22 Project Plan. The 57 acres of land added to the boundaries of TIF No. 22 by Amendment No. 2 contains three (3) parcels of land zoned a combination of M-1 Light Industrial and M-2 General Industrial. The 12.4 acre parcel fronting on Beloit Ave. is improved with a 140,000 SF industrial building leased to CRT Processing. The 15.1 acre vacant parcel fronting on Burbank Ave. is zoned predominately M-2. The third parcel contains 25.1 acres of land improved with 28,500 SF of vacant industrial buildings formerly occupied by Quality Wood Treating. 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. 22 after Amendment No., 88.6% 89.3% of the land is proposed for industrial uses and 11.4% 10.7% is proposed for open space uses, thus meeting the required standard. All lands within TIF No. 22 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. No residential development is planned for TIF No. 22. The TIF District Project Plan proposes to improve these properties with streets and utilities to create additional industrial sites. The timing of the street and utility improvements 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. 6 Map 1 shows the land uses and zoning in TIF No. 22. 7 7 V. PROPOSED TIF PROJECTS AND IMPROVEMENTS The public expenditures proposed in TIF No. 22 will be linked to the expansion of the industry 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. Helgesen Properties constructed a 700,000 sf industrial warehouse building within the TIF district. This building has been leased to a series of third party logistics firms that provide inventory sequencing services to General Motors. With the closure of GM, this building is vacant and available for lease. Helgesen has upgraded the HVAC and lighting to improve energy efficiency and has added demising walls to accommodate multiple tenants. To allow this expansion to occur, the City extended utilities to the property and constructed an extension of Venture Drive. Deere and Company contracted with Ryan, Inc. for the construction of a 490,000 sf warehouse on a 52 acre site west of Beloit Ave. Ryan, Inc. also took an option to purchase the remaining 70 acres of land zoned for industrial purposes west of Beloit Ave. In 2007, Helgesen purchased a 22.55 acre industrial site on Venture Dr. and constructed a 250,000 SF industrial building on speculation. The western ¼ of the building was leased to National Freight Industries while the eastern ¾ was leased to Cummins, Inc. The vacant land and vacant Quality Wood Treating property included in Amendment No. may need TIF assistance for future development projects. As the demand for industrial sites increases, the City will construct new streets and utilities on the remaining 296 industrial acres planned west of Beloit Ave industrial land within the proposed TIF district. Finally, the Project Plan provides funds for marketing the new industrial sites and for providing incentive financing to companies locating new facilities within the TIF district. The kind, number, and location of all proposed improvements proposed for TIF No. 22 are shown on Map 2 - Improvement Plan. 8 9 A. Land Acquisition In order to create a new industrial park, the City has acquired a 200 acre parcel on the west side of Beloit Ave. In addition, the City may acquire and an additional 226 acre parcel west of Beloit Ave. and south of STH 11. Land acquisition, surveying, soil testing, environmental engineering, and title policy expenses may be considered TIF project costs. Payments to neighboring townships to compensate them for lost tax revenues where TIF districts include newly annexed property will also be considered a TIF land acquisition expense. Payment of any land conversion penalty under the provisions of Wisconsin Statutes section 74.485 would also be considered a land acquisition cost. In addition, approximately 58 acres of the 200 acres purchased will be reserved for parks and open space to serve as a buffer between the industrial development to the south and the residential development outside the district to the north. B. Transportation Improvements Transportation improvements may include the construction of the southerly and westerly extension of Venture Drive back to Beloit Ave. and westerly extension of Venture Drive to Progress Drive. Beloit Ave. may be was widened to a 4-lane cross section as the traffic to and through TIF No. 22 increases with development. A traffic signal may be was installed at the Kellogg and Beloit Avenue intersection, with 50% of the cost attributable to the increased truck traffic within the district. In addition, the TIF Project Plan allows for the construction of Venture Dr. and Progress Dr. on the vacant land north of STH 11 and the construction of new streets on the vacant land west of Beloit Ave. and south of STH 11 to develop new industrial sites. Map No. 2 shows the planned location of these road improvements, however, the actual location of the roads may change depending on the needs of specific development projects. Wherever new street construction occurs, sidewalks or recreational trails, street trees, and landscaping may be installed along the new frontage road. The Project Plan also allows for the construction of a bike trail along the north right-of-way line of STH 11 10 when that road is widened to 4-lanes in 2004. Finally, a bike trail may be constructed from STH 11 north along Progress Dr. to Jackson St. to link the residential neighborhoods to the north to the new industrial park. C. Utility Costs As new streets are constructed to provide access to industrial sites, sewer, water, gas and electric utilities will be installed within the rights-of-way. In addition, a storm sewer collection system including underground piping, surface detention ponds and safety fencing may be installed. These utility improvements will be phased along with the street construction to meet the needs of specific development projects. The utility costs will be included as TIF expenditures. D. Street Lighting and Landscaping As new streets are developed within TIF No. 22, street lights and street trees may be installed. In addition, a landscaping buffer between the industrial uses to the south and the open space/residential uses to the north is planned as a TIF cost. E. Marketing and Incentive Financing In order to attract new development to the TIF No. 22 industrial park, 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. 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. 22. 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 relocation, worker training, 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 industrial expansion projects throughout the TIF District. All marketing and incentive financing expenses will be considered TIF costs. Changes to State Law also allow the expenditure of TIF funds within ½ 11 mile of an existing TIF boundary. The existing industries located within ½ mile of TIF No. 22 may also need project financing and/or development incentives to maintain employment levels or to undertake expansion projects. This Project Plan includes TIF funding to assist with these types of industrial expansion projects located within ½ mile of TIF No. 22 (See Map 3). F. Administrative Costs The TIF No. 22 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. The overhead costs of related city departments will also be charged against the TIF district in accordance with an indirect cost allocation plan. The cost of the three TIF audits required under Wisconsin Statutes ss 66.1105 will be included as TIF project costs. In addition, administrative costs will include any TIF Plan review fees charged by the Department of Revenue . VI. DETAILED LIST OF ESTIMATED PROJECT COSTS In order to determine the economic feasibility of the proposed TIF District No. 22, 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 2004 actual costs through 2008 and construction costs in 2009, TIF No. 22 improvement costs are estimated as follows: A. Land Acquisition $6,218,329 $ 6,254,335 B. Transportation Improvements $2,364,394 2,548,952 C. Utility Costs $3,505,937 2,265,036 D. Lighting and Landscaping $217,023 99,298 12 E. Marketing & Incentive Financing $2,002,905 3,102,997 F. Administration $89,917 $ 126,000 Total Cost of Improvements $14,398,505 $ 14,396,618 13 13 The estimated cost of TIF expenditures is $14,398,505 $14,396,618. Under the revised TIF law, project costs may be incurred over the first eighteen (18) 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 $10,631,445 $4,597,860 in TIF financing costs, bringing the total estimated TIF No. 22 project costs to $25,029,950 $19,030,944. All project costs and interfund borrowing estimates are based on the most current cost data available in September, 2004 June, 2009 and may be adjusted within the total amount shown without modification or amendment of this TIF No. 22 Project Plan. Under the changes to the TIF law enacted in 2004, all of the TIF No. 22 project costs except debt service and interfund borrowing will be incurred during the first eighteen (18) years of the TIF District. Table No. 1 shows the schedule and timing of the proposed expenditures. The actual timing of expenditures will be contingent on the commitments from industries locating 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. Helgesen Properties constructed a 700,000 sf building on the east side of Beloit Ave. in 1999. Ryan, Inc, constructed a 490,000 sf distribution center for lease to Deere and Company in 2001. Helgesen Properties also constructed a 250,000 SF industrial building in 2007 and has an option on an adjacent parcel of land with plans to construct a third industrial building containing 150,000 SF. This Project Plan includes funds to market the remaining vacant industrial land within the TIF District for the development of other warehousing and distribution projects as well as continued industrial development. 14 Table No. 1 Tax Increment District No. 22 Summary of TIF Costs By Year Year Type of Cost Cost Cost 1999 Land Acquisition, $2,589,264$ 2,600,563 and Administration. 2000 Streets, Utilites, 149,016150,059 Marketing and Administration 2001 Streets, Utilities, Marketing and 1,443,384 1,443,658 Administration 2002 Utilities, Incentive Financing, 1,965,499 1,965,499 Administration 2003 Administration 538 538 2004 Streets, Administration 1,208,001 5,177,677 2005 Land Acq., Administration 4,187,04038,043 2006 Streets, Utilities, Marketing, Admin. $285,240 9,862 2007 Streets, Utilities, Marketing, Admin. $446,360 556,371 2008 Streets, Utilities, Marketing, Admin. $323,760 228,004 2009 Streets, Utilities, Marketing, Admin. $611,802 769,750 2010 Streets, Utilities, Marketing, Admin. $608,302 1,463,800 2011 - Streets, Utilities, Marketing, Admin. $580,302 $ 29,259 2015 Total Cost of Improvements $14,398,505 $14,433,084 Debt Service and Interfund Borrowing $10,631,445 4,597,860 Total Estimated TIF No. 22 Costs $25,029,950 $19,030,944 -------------------------------------------------------------------------------------------------------- Prepared By: Economic Development Agency 15 VII. ECONOMIC FEASIBILITY AND METHODS OF FINANCING 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 as revised by the Legislature in 2004, allows the City eighteen (18) years in which to make the improvements needed to stimulate and support development. The property tax increments generated by the new development are retained by the City until all TIF costs are paid. 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. 22 was created by Council action in September, 1999. The original TIF No. 22 Project Plan will be was amended by the City Council in October, 2004 to revise the budget and to amend the boundary to include an additional 226 acre parcel of land. The budget and boundary were amended again in August, 2009. Therefore, all TIF project improvements must be completed by September, 2017. The taxes on any increased property value in the district between 2000 and 2021 will be retained by the City to repay the TIF project costs. TIF No. 22 will be dissolved when all TIF project costs are repaid, or in September, 2021, 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 16 future to determine the economic feasibility of TIF No. 22. All TIF costs related to industrial expansion projects are incurred according to the schedule shown in Table No. 1. TIF property value increases for are shown for the 700,000 sf industrial warehouse constructed in 1999 and for the 490,000 sf warehouse distribution center constructed in 2001, and the 250,000 SF warehouse constructed in 2007. In addition, as streets and utilities are installed, new industrial projects will be developed. The Project Plan assumes that an average of $2,500,000 $5,000,000 in new property value will be added every other year from 2005 through 2011 in 2010 and $2,500,000 in value added in 2012. At an average value of $25 $35 per square foot of industrial building, the City will need to add approximately 100,000 215,000 sf of construction bi-annually to achieve $2,500,000 $7,500,000 in new property value. From 1988 through 2003 2008, the City has averaged approximately 350,000 300,000 sf of new industrial space absorption annually citywide. Where possible, the construction of new streets and utilities will be phased and linked to known development projects. The City will enter into binding contracts with the industries locating within TIF No. 22 that will guarantee the minimum amount of investment needed to fully amortize all TIF costs associated with each project within 8 to 10 years. The overall TIF District should be able to recover all costs by the year 2020 2021. The equalized value property tax mill rate levy is projected to increase 0.5% per year remain constant into the future. This assumption is also conservative. In recent years, the equalized value property tax mill rate in Janesville increased slightly. Based on these assumptions, the $31,923,900 $48,825,200 in new property value generated between 1999 and 2004 2008, plus the estimated $10,000,000 $7,500,000 in new property value generated by development within TIF No. 22 between 2005 2010 and 2011 2012 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 as estimated in 2004 with Amendment No. 1 to 17 00 Table No. 215-Oct-04 TIF No. 22 JDV City of Janesville the TIF No. 22 Project Plan. Table 2A shows revised TIF costs of $14,398,505 Tax Increment vs. TIF Cost Comparison $14,433,084 plus financing costs of $10,631,445 $ 4,597,860 for a total TIF cost of EqualizedTaxDirect $25 Const.,029,950 $19,030,944 TotalValue. IncrementLong TermCosts &InterfundTIFTIF YearValueTID ValueMill Rate& Misc.Debt DebtInterestBalanceYearYear RevenueProceedsServiceCosts 1998000.0234600$0$01998 1999000.023585502,750,0002,600,563$0$149,98719991 200011,147,80011,147,8000.0237013,450245,000554,034$7,095($152,692)20002 20018,385,00019,532,8000.02382$285,377$455,0001,877,756$14,754($1,304,825)20013 20022,081,10021,613,9000.02394$489,683$2,633,4002,409,820$13,396($604,958)20024 200312,767,50034,381,4000.02283$525,534685,346$8,768($773,538)20035 2004031,923,9000.02294$948,922 966,908$19,338($810,862)20046 20052,500,00034,423,9000.02306$856,139 690,411$20,272($665,406)20057 2006034,423,9000.02317$917,7561,349,464$16,635($1,113,750)20068 20072,500,00036,923,9000.02329$921,7441,362,717$27,844($1,582,566)20079 2008036,923,9000.02341$984,2701,426,980$39,564($2,064,841)200810 20092,500,00039,423,9000.02352$988,5911,435,903$51,621($2,563,773)200911 2010039,423,9000.02364$1,052,0381,504,746$64,094($3,080,575)201012 20112,500,00041,923,9000.02376$1,056,6981,531,808$77,014($3,632,699)201113 2012041,923,9000.02388$1,121,0781,592,898$90,817($4,195,336)201214 2013041,923,9000.02400$1,126,083973,080$104,883($4,147,216)201315 2014041,923,9000.02412$1,011,114939,267$103,680($4,179,049)201416 2015041,923,9000.02424$1,016,169776,318$104,476($4,043,674) 201517 2016041,923,900 0.02436$1,021,250330,056$101,092($3,453,571)201618 2017041,923,9000.02448$1,026,356290,109$86,339($2,803,662)201719 2018041,923,9000.02460$1,031,488235,190$70,092($2,077,457)201820 2019041,923,9000.02473$1,036,646194,318$51,936($1,287,065)201921 2020041,923,9000.02485$1,041,829125,936$32,177($403,349)202022 2021041,923,9000.02497$1,047,03860,351$10,084$573,253202123 44,381,400Totals:$19,519,803$6,083,400$23,913,979$1,115,971 Assumptions:Expenditures: AmountYear 1. Mill Rate Growth :1.0050Debt2,589,2641999 2. Interfund Cost :2.5%Debt149,0162000 3. TIF Bal.10 Yrs :N/ADebt1,443,3842001 4. G.O. Bond Rate :4.00%Debt1,965,4992002 5. Deere Guarantee$120,000Direct Cost5382003 2005$2,500,000Debt and Direct costs1,208,0012004 2006$0Debt4,187,0402005 2007$2,500,000Debt285,2402006 2008$0Debt446,3602007 2009$2,500,000Debt323,7602008 2010$0Debt611,8022009 2011$2,500,000Debt608,3022010 2012$0Debt580,3022011 Project Costs14,398,505 Interest Costs10,631,445 Total TIF Costs$25,029,950 Prepared By: Economic Development Agencytif22.xls 18 Debt Direct Cost 00 Table No. 2A10-Aug-09 TIF No. 22 JDV City of Janesville Tax Increment vs. TIF Cost Comparison EqualizedTaxCapital Const.TotalValueIncrementLong TermExisting ExpenditureInterfundTIFTIF YearValueTID ValueMill Rate& Misc.Debt Debt & Future DebtInterestBalanceYearYear RevenueProceedsServiceServiceCosts 1998000.02343000$0$01998 1999000.023545502,750,00002,600,5630$149,98719991 200011,147,80011,147,8000.0232713,450245,000403,975150,0597,095($152,693)20002 20018,385,00019,532,8000.02333$285,377455,000434,0981,443,65814,754($1,304,826)20013 20022,081,10021,613,9000.02275$489,6832,633,400444,3211,965,49913,396($604,959)20024 200312,767,50034,381,4000.02290$525,5340684,8085388,768($773,539)20035 2004(5,408,500)28,972,9000.02306$1,010,3424,820,000666,9085,177,6776,632($794,414)20046 20056,000,80034,973,7000.02178$833,6730788,37638,04324,808($811,968)20057 20063,740,90038,714,6000.02047$933,7190909,2839,86241,322($838,716)20068 2007630,70039,345,3000.02085$977,73970,000900,910556,37160,182($1,308,439)20079 20089,479,90048,825,2000.02058$996,603590,000924,015228,00429,211($903,067)200810 2009048,825,2000.02069$1,160,7400934,452022,577($699,356)200911 20105,000,00053,825,2000.02079$1,115,0540936,769107,76517,484($646,320)201012 2011053,825,2000.02089$1,224,5970912,133314,61816,158($664,632)201113 20122,500,00056,325,2000.02100$1,230,2190917,678303,68416,616($672,391)201214 2013056,325,2000.02110$1,288,6280915,227296,75016,810($612,549)201315 2014056,325,2000.02121$1,194,5710912,208285,81515,314($631,316)201416 2015056,325,2000.02131$1,200,5440927,289287,14015,783($660,984) 201517 2016056,325,2000.02142$1,206,5470920,359264,94716,525($656,268)201618 2017056,325,2000.02153$1,212,5790911,615256,01316,407($627,724)201719 2018056,325,2000.02164$1,218,6420837,194247,07915,693($509,047)201820 2019056,325,2000.02174$1,224,73600238,14412,726$464,818201921 2020056,325,2000.02185$1,230,85900152,2350$1,543,442202022 2021056,325,2000.02196$1,237,0140000$2,780,456202123 56,325,200Totals:$21,811,399$11,563,400$15,281,618$14,924,465$388,261 Assumptions:Expenditures: 1. Mill Rate Growth :1.0050 Project Costs14,433,084 2. Interfund Cost :2.5% Interest Costs4,597,860 3. G.O. Bond Rate :4.00% Total TIF Costs$19,030,944 4. Deere Guarantee:$100,000 5. Eq. Value Growth: 1.00 Prepared By: Economic Development Agency TIF 22 Amendment 2 19 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 a total of $41,923,900 $56,325,200 of new property value is created as projected in Table 2, the TIF district will generate a total of $19,519,803 $21,811,399 in property tax increments over the 23 year life of the district. In addition, the TIF district borrowed an additional $6,083,400 $11,563,400 between 1999 and 2004 2008 resulting in a total of $25,603,203 $33,374,799 available to implement TIF projects. Since property tax increments plus existing debt are projected to exceed TIF costs including debt service by $573,253 $2,780,456 TIF No. 22 is found to be economically feasible. Projected TIF revenues will cover TIF costs within 22 21 years and the City projects that TIF No. 22 will be dissolved by 2021 2019. Since there is no guarantee that new development projects will be found to construct new property value within TIF No. 22, the City will only implement additional street and utility construction project when they are needed to prepare new industrial sites for specific projects. The TIF plan includes $2,671,405 $950,800 in funding for the extension of Venture Drive, west of Beloit Ave. and in funding for storm sewer special assessments that are paid as land is subdivided. Table No. 3 shows projected revenues and expenditures assuming that no new property value is created after 2003 and assuming that the only future expenditures are limited to the purchase of the additional 226 acres of land and the completion of 850’ of Venture Dr. west of Beloit Ave. Under this “no growth” scenario, TIF No. 22 is still projected to “break even” in 2019 (TIF Year 21) allowing the TIF district to be dissolved without any further general fund obligations. Given the remaining life of TIF No. 22, it is likely that the future installation of streets and utilities serving the 225 acres of industrial land south of STH 11 will need to be funded by the creation of a new TIF district. 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 20 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, so 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 an 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. 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. 21 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. 22 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. 22 will facilitate an industrial expansion, increase property values, and create new jobs in the City of Janesville. These jobs will help diversify the local economy and the increased manufacturing and warehousing/distribution payrolls will have a positive multiplier effect in the trade and service sectors. VIII. PROPOSED CHANGES IN ORDINANCES, CODES, & PLANS The proposed TIF No. 22 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. All of the properties within TIF No. 22 with the exception of the 58 acres reserved for future outdoor recreation, have been found to be suitable for industrial development in accordance with Wisconsin's Promotion of Industry Statute ss 66.1101, and will remained zoned for industrial purposes for the life of the TIF district. All development in TIF No. 22 will have to conform with the State Building Codes and will be subject to the City's permitting and inspection procedures. The TIF No. 22 project plan conforms with all relevant State and local ordinances, plans, and codes, thus, no changes to the existing regulations are proposed or needed. 22 The City will request that the Wisconsin Department of Commerce amend the Janesville Community Development Zone boundary to include the newly annexed land within TIF No. 22. This will allow companies that locate within the amended TIF No. 22 boundary to apply for State of Wisconsin income tax credits under the Development Zone Program. In addition, the newly annexed land is located outside the current 208 Water Quality Plan boundary for sewer service. The City will request a sewer service area boundary amendment to include all of proposed TIF No. 22. The current 208 Water Quality Plan provided for sewer service to an additional 960 acres of industrial development, but the exact location of the development was not designated. The 208 Water Quality Plan amendment will allow the City to provide sewer service to the 226 acres of land to be annexed to TIF No. 22, and leave an additional 734 acres of industrial land for future sewer service area designation. IX. LIST OF ESTIMATED NON-PROJECT COSTS 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. Where an improvement (such as the planned traffic light at Beloit and Kellogg Avenues) can serve an area larger than the TIF district, the cost of the improvement will be prorated so that only the proportion of the costs to serve TIF No. 22 will be included as a project cost. That portion of the total costs which serves areas outside the TIF district will be considered 'non-project' costs and charged to funding sources other than TIF No. 22. X. METHODS FOR RELOCATION OF DISPLACED PERSONS The TIF No. 22 Project Plan does plan land acquisition, thus, 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 23 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. XI. PROMOTION OF THE ORDERLY DEVELOPMENT OF THE CITY The creation of TIF No. 22 and the implementation of the projects in the TIF Project Plan will promote the orderly development of the City of Janesville by encouraging that new industrial development occurs in areas of the City planned for industrial growth. By creating well designed and strategically located industrial parks, land use conflicts and infrastructure deficiencies can be avoided. 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. 22 continues the industrial development on the City’s southeast side that began with the creation of TIF No. 5 in 1988 and TIF No. 16 in 1996. TIF No. 22 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. 24 17 17 18 19 Resolution No. 2009- 621 RESOLUTION APPROVING AMENDMENT NO. 2 TO THE PROJECT PLAN AND AMENDING THE BOUNDARIES OF TIF NO. 22. WITHIN THE CITY OF JANESVILLE, ROCK COUNTY, WISCONSIN WHEREAS, the City of Janesville adopted Resolution No. 99-2455 on September 27, 1999, creating City of Janesville Tax Increment Finance District No. 22 in accordance with the provisions of Wisconsin Statues ss 66.1105, and WHEREAS, the City of Janesville adopted Resolution No. 2004 – 89 on October 25, 2004, approving Amendment No. 1 to the Project Plan for TIF No. 22 in order to revise the project budget and to amend the TIF No. 22 boundary to include an additional 226 acres of industrial land, and WHEREAS, the City of Janesville is now proposing Amendment No. 2 to the Project Plan for TIF No. 22 again revising the project budget and amending the TIF No. 22 boundary to include an additional 32 acres of industrial land, and WHEREAS, the Plan Commission has held a public hearing on the proposed Amendment No. 2 to Tax Increment District No. 22 and the proposed new boundaries thereof, and recommended the approval of Amendment No. 2 to the Project Plan for Tax Increment District No. 22 and the modification to the boundaries of the Amended 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. 22 have been notified of the proposed Amendment to the Project Plan for TIF No. 22, pursuant to Section 66.1105 (4) (a) and (e), Wisconsin State Statutes; and WHEREAS, TIF No. 22 as amended, is declared to be an “industrial TIF district” where more than 51% of the land is currently zoned M-1 Industrial 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 20 Resolution 2009 – 621 Page 2 WHEREAS, the equalized value of taxable property within the amended boundaries of TIF No. 22 plus the value increment of all existing Janesville's TIF Districts does not exceed twelve percent (12%) of the total equalized value of property within the City of Janesville; and WHEREAS, Amendment No. 2 to the Project Plan for Tax Increment District No. 22 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 implementation of the improvements as set forth in Amended TIF No. 22 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. 2 to the Project Plan for City of Janesville Tax Increment Finance District No. 22 and amends the boundaries of Tax Increment District No. 22 in the City of Janesville as described on the attached map and Amended Project Plan for TIF District No. 22. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner DeGarmo Steven E. Sheiffer, City Manager Loasching Steeber ATTEST: Truman Wellnitz Williams Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: City Attorney Proposed by: City Manager Prepared by: Economic Development Director 21 CITY ATTORNEY’S OFFICE MEMORANDUM June 22, 2009 MEMORANDUM TO: J. Douglas Venable, Director of Economic Development FROM: Wald Klimczyk, City Attorney RE: Legal Opinion – Amendment No. 2 -- T.I.F. No. 22 Project Plan Sec. 66.1105(4)(f), Wis. Stats., of the Tax Increment Financing Law mandates that the project plan for a proposed tax increment financing district "include an opinion of the city attorney or an attorney retained by the city advising whether the plan is complete and complies with this section.” You have asked me to review a certain proposed “Amendment No. 2 to the Project Plan for Tax Incremental Finance District No. 22” dated August 10, 2009 (the expected date of 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. Douglas Venable June 22, 2009 Page 2 6. A map showing the existing uses and conditions of the real property in the district; 7. A map showing the proposed improvements and uses in the district; 8. Proposed changes of: a. Zoning ordinances. b. The master plan, if any. c. The master map, if any. d. Building codes. e. City ordinances. 9. A list of estimated non-project costs; 10. A statement of proposed methods for the relocation of any person(s) to be displaced; and 11. How the Tax Increment Financing District promotes the orderly development of the City. I have reviewed proposed “Amendment No. 2 to the Tax Incremental Finance District No. 22 Project Plan,” dated August 10, 2009, prepared by the City of Janesville Economic Development Agency and Finance Division. It is my legal opinion that said Project Plan as amended, 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