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Full Agenda Packet CITY OF JANESVILLE CITY COUNCIL MEETING AGENDA MONDAY, July 13, 2009 7:00 P.M. 1. Call to Order and Pledge of Allegiance. 2. Roll Call. 3. Minutes of City Council meetings: “C” A.Special meeting of June 16, 2009. B.Regular meeting of June 22, 2009. 4. Licenses; and Recommendations of the Alcohol License Advisory Committee. (Refer to separate agenda.) “C” 5. Action on a motion to approve final Certified Survey Map 09007-C, Marklein, 1 lot along Newcastle Drive. “C” 6. Special recognition: Action on a proposed resolution in commendation of Kay M. Nikolaus’ service to the City of Janesville. (File Res. No. 2009-623) OLD BUSINESS 1. Requests and comments from the public regarding items on the Agenda not requiring a public hearing. 2. Requests and comments from the public on matters which can be affected by Council action. 3. Public hearing and action on a final resolution for public works bid schedule “F”-2009. (File Res. No. 2009-612) ----------------------- “C” – This designation indicates an item that the City Council will take up under a Consent Agenda. City Council Agenda – July 13, 2009 Page 2 OLD BUSINESS (CONTINUED) 4. Reject all bids for contract 2009-17 (North Parker Drive Parking structure pre-cast package). Award of contract 2009-18 (new and replacement sidewalk) and contract 2009-19 (South River Road greenbelt improvement). NEW BUSINESS 1. Action on a proposed resolution affirming the spending of federal economic renewal grants to the City of Janesville. (File Res. No. 2009-624) 2. Discussion of alternatives and direction to staff on providing additional parking near Janesville Senior Center. 3. Action on a proposed resolution authorizing the acquisition and demolition of 316 Linn Street. (File Res. No. 2009-622) 4. City Council authorization to allow the submittal of a grant application for restoration of doors for the Tallman House. 5. City Council short term and long term priorities. 6. Introduce a proposed Amendment No. 2 to the project plan for Tax Increment Finance District No. 22 and refer to the Plan Commission for a public hearing. (File Res. No. 2009-621) 7. Matters not on the Agenda. 8. Motion to convene into closed session, pursuant to Wisconsin Statute Section 19.85(1)(e) for the purpose of deliberating or negotiating the purchasing of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session, specifically setting the negotiating and bargaining terms and conditions for: (1) a proposed TIF 29 Development Agreement; and (2) a proposed TIF 31 Development Agreement. PROCEEDINGS OF THE CITY COUNCIL CITY OF JANESVILLE, WISCONSIN SPECIAL MEETING JUNE 16, 2009 VOL. 60 NO. 9 Special meeting of the City Council of the City of Janesville held at the Holiday Inn Express, 3100 Wellington Place, Janesville, Wisconsin on June 16, 2009. The meeting was called to order by Council President Truman at 8:00 AM. Council President Truman led the Council in the Pledge of Allegiance. Present: Council President Truman, Councilmembers Brunner, McDonald, Perrotto, Rashkin, Steeber, and Voskuil. Brad Dutcher, Andy Richardson, and Bill Glass of the UAW Local 95 thanked the Council for their support and efforts to retain General Motors. Overview of retreat objectives Council determined, by consensus, the objectives of the retreat to be: 1. Establish short-term and long-term goals. 2. Establish Note Issue ranking criteria. 3. Review the macro-projection for the 2010 budget. Action to establish Council short-term and long-term goals Council established their top four short-term goals: 1. Work through 2010 and 2011 budgets and establish guidelines for the Administration to use in the preparation of the budgets. 2. Increase job availability; establish innovative ideas to jump start local economy; and, consider small and medium investment opportunities in the community. 3. Establish facility maintenance plan. 4. Review and prioritize new or the improvements to the following City facilities: Fire Station #1; Transit; Aquatics; Tallman House; Ice Skating Center; Riverside Wading Pool; Jackson Street Bridge; Bike Tunnel; and, options for Lions Beach. Council established their five long-term goals: 1. Provide assistance to citizens facing poverty, homelessness, and job loss. 2. Provide efficient, effective, and needs responsive services. 3. Work through 2010 budget; estimate fund balance and reserve fund balances; review major capital improvements. 4. Initiate economic employment growth; establish long-term economic development; work with Forward Janesville to attract high-paying non-manufacturing jobs, and revitalize and support the downtown neighborhoods and the central business district. 5. Review major capital improvements; initiate facility maintenance program; and initiate comprehensive maintenance program. Action to establish Council objectives for upcoming budget 2009 Note Issue: Council prioritized their evaluation criteria from highest to lowest for the 2009 note issue as follows: ? Health and Safety ? Fiscal Impact ? Sustain and Stimulate Local Economy ? Supporting Necessary Services ? Quality of Life ? Relationship to Other Projects ? Outside Funding ? Maintain Established Services By consensus, Council established the following policies for the Administration to use in compiling the 2009 Note Issue: ? Balance essential service needs and quality of life needs by allocating at least 20% of the capital program to quality of life improvements, such as parks and recreation projects. ? The City can further refine the priority order of capital projects based on eligibility and availability of resources, specific funding sources or other factors. Fiscal constraint will continue to influence the timing of projects, as can other unforeseen matters. ? Capital funding for engineering design should only be appropriated where funding can also be made available for implementation in the following fiscal year. ? City Council should allocate funding for strategic land acquisition in designated areas of the City based on Council priorities. ? Generally, plan to expend borrowed funds within 24 months. General Fund/Operating Budget: Council reviewed General Fund/Operating Budget macro projection for proposed 2010 budget: ? Revenue Changes ($ 864,000) ? Expenditure Changes $1,000,000 ? Projected 2010 Deficit for Operations without Tax Levy: $1,864,000 The projection includes the use of $1,231,000 in applied fund balance. By consensus, the Council provided the following guidance to the Administration in preparing the proposed 2010 budget: ? Place everything on the table for review and consideration. ? Approach the budget with the expectation of no or minimal tax levy increase. ? Consider employee furloughs instead of layoffs. ? Review revenues for possible fee increases, look for other sources of revenue, and maximize investment opportunities. ? Review consolidation of services with other governments and schools. ? Schedule more budget study sessions. Council requested information from peer cities on landfill fees, residential fees for trash collection, and multi-family fees for trash collection. City Manager Levitt requested Councilmembers turn in his six-month evaluation. Councilmember Steeber moved to adjourn, seconded by Councilmember Voskuil and passed unanimously. There being no further business, the Council adjourned at 2:25 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 REGULAR MEETING JUNE 22, 2009 VOL. 60 NO. 10 Regular meeting of the City Council of the City of Janesville held in the Municipal Building on June 22, 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, Steeber, and Voskuil. CONSENT AGENDA Minutes of the regular meeting of June 8, 2009 Minutes of the special meeting of June 12, 2009 Minutes of the special meeting of June 15, 2009 Licenses and Recommendations of the Alcohol License Advisory Committee, including an appeal of the denial of a bartender license for Suheidy V. Roman. Action on a motion to approve final Certified Survey Map 09003-C, Hamilton/Tadder, 1 lot along Center Avenue. Financial statement for the month of May 2009. 2008 Comprehensive Annual Financial Report – Report on Internal Control. Council President Truman stated the appeal of a bartender license for Suheidy V. Roman would be removed from the consent agenda and the remaining items would be approved if there were no objections. There were none. Council President Truman asked if anyone wished to comment on the negative recommendation for Suheidy Roman. Ms. Roman and her attorney, James Hammis, responded to Councilmembers’ questions. Councilmember Rashkin moved to deny said appeal based on the information presented to the Council, seconded by Councilmember Steeber and passed unanimously. 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.; Margaret Delaney, 439 N. Jackson St.; Kurt Linck, 118 S. High St.; spoke in favor of the City purchasing properties at 414 and 417 N. Washington St. (New Business #2 and #3). 2. Requests and comments from the public on matters which can be affected by Council action. Andreah Briarmoon, 339 S. Locust St., asked Council to change vision triangle ordinance to include terraces. 3. A proposed ordinance rezoning property located at 120 N. Crosby Ave. from O1, Office/Residence District, to B3, General Commercial received its continued public hearing. Tim Richards, owner of 120 N. Crosby Ave., supported the original ordinance with B3 zoning. The public hearing was closed. Councilmember Steeber moved to adopt the original ordinance with the B3 zoning, seconded by Councilmember Voskuil. Councilmember Steeber offered a friendly amendment to change the zoning from B3 to B2. The friendly amendment was accepted by the seconder, and the motion, as amended, passed unanimously. (File Ord. No. 2009-437) 4. 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, 2.58.020, and newly created Chapter 2.26 received its second reading and public hearing. David Moore, 67 Campus Ln., spoke against the charter ordinance; Andreah Briarmoon, 339 S. Locust St., spoke in favor of the charter ordinance. The public hearing was closed. Councilmember Steeber moved to deny said charter ordinance, seconded by Councilmember Voskuil and passed unanimously. Council President Truman combined Old Business Items #5 and #6 and they received their second reading and joint public hearing: 5. A proposed ordinance designating N. Franklin St. between Highland Ave. and Mineral Point Ave. as a two-way street. (File Ord. No. 2009-435) 6. 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. (File Ord. No. 2009-436) Rich Gruber, representing Mercy Health System, spoke in favor of the ordinances. The public hearing was closed. Councilmember Steeber moved to adopt said ordinances, seconded by Councilmember Rashkin and passed unanimously. (File Ord. Nos. 2009-435 and 2009-436) Council President Truman moved Old Business Item #7 to New Business #9. 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. Councilmember Brunner moved to adopt said resolution and schedule a public hearing on July 13, 2009 for the final resolution, seconded by Councilmember Steeber and passed by the following vote: Aye: Brunner, McDonald, Perrotto, Rashkin, Steeber, and Voskuil. Nay: Truman (File Res. No. 2009-612) 2. Action on a proposed resolution approving the acquisition of 417 N. Washington Street. Councilmember Steeber moved to adopt said resolution, seconded by Council President Truman and passed unanimously. (File Res. No. 2009-614) 3. Action on a proposed resolution approving the acquisition of properties under the Neighborhood Stabilization Program (414 N. Washington St.). Councilmember Rashkin moved to adopt said resolution, seconded by Council President Truman and passed unanimously. (File Res. No. 2009-615) 4. Action on a proposed resolution authorizing the sale of the former Riverside Plating property at 1728 N. Washington Street. Councilmember Steeber moved to adopt said resolution, seconded by Councilmember Voskuil and passed by the following vote: Aye: Brunner, Perrotto, Steeber, Truman, and Voskuil. Nay: McDonald and Rashkin. (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. Councilmember Steeber moved to adopt said resolution, seconded by Councilmember Perrotto and passed unanimously. (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. Councilmember Brunner moved to authorize the Police Department to apply for the 2009 Edward Byrne Memorial JAG Program, seconded by Councilmember Steeber and passed unanimously. 7. Action on a proposed resolution approving a TIF development agreement with and authorizing a TIF development loan to Recycle4U in TIF No. 33. Councilmember Steeber moved to adopt said resolution with an amendment stating that up to $7,500 of the loan is forgivable if employment criteria are met, seconded by Councilmember Rashkin and passed by the following vote: Aye: Brunner, McDonald, Rashkin, Steeber, and Truman. Nay: Perrotto and Voskuil. (File Res. No. 2009-619) 8. A proposed resolution for Amendment No. 3 to the project plan for TIF District No. 26 was introduced and referred to the Plan Commission for a public hearing on July 27, 2009. (File Res. No. 2009-617) Old Business #7. City Council discussion and direction to staff on approach to comply with State Statutes concerning property valuation. Councilmember Brunner moved to direct the administration to proceed with a full revaluation of commercial class properties and perform a market update based on maintenance level inspections for any revaluation of residential property, seconded by Councilmember Perrotto and passed by the following vote: Aye: Brunner, Perrotto, Rashkin, Steeber, Truman and Voskuil. Nay: McDonald. 9. Matters not on the agenda. Council President Truman requested that a technician perform maintenance on the control panel in the Council Chambers; stated he was glad to see work started on the Riverside splash pad; and asked Councilmember Voskuil and City Manager Levitt to represent the City at the Rock Aqua Jays’ opening event. 10. Councilmember Steeber moved 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 proposes; 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, seconded by Councilmember McDonald and passed unanimously. There being no further business, Council convened into closed session at 10:46 PM. These minutes are not official until approved by the City Council. David T. Godek Deputy Clerk-Treasurer JANESVILLE CITY COUNCIL LICENSE AGENDA 7/13/2009 RECOMMENDED A. ORIGINAL CLASS “B” INTOXICATING LIQUOR AND FERMENTED MALT LICENSE Edward Quaerna d/b/a O’RILEY & CONWAY’S 214 W. Milwaukee St. B. ORIGINAL RESERVE CLASS “B” INTOXICATING LIQUOR AND FERMENTED MALT LICENSE CROSBY PLACE, LLC d/b/a CROSBY PLACE Timothy Richards 120 N. Crosby Ave. C. ALCOHOL LICENSE RENEWALS FOR THE 2009-2010 LICENSE YEAR 4M VENTURES LLC d/b/a THE MUSIC ROOM / THE CIRCUIT Kurt A. Miller 18-24 S. River St. D. AMUSEMENT CENTER-RENEWALS FOR THE 2009-2010 LICENSE YEAR SUNRISE LODGING LLC d/b/a BEST WESTERN Harvey Igo 3900 Milton Ave. E. AMUSEMENT DEVICE-RENEWALS FOR THE 2009-2010 LICENSE YEAR SUNRISE LODGING LLC d/b/a BEST WESTERN Harvey Igo 3900 Milton Ave. PERKINS & MARIE CALLENDER'S, INC. d/b/a PERKINS RESTAURANTS & BAKERY #1078 Linda Troy 3315 Milton Ave. CAMBECK PETROLEUM CORP d/b/a MILTON AVENUE MOBIL Parrinder Singh 1215 Milton Ave. F. ELECTRICIANS-RENEWALS FOR THE 2009-2010 LICENSE YEAR James P. Rivest 5635 Town Hall Dr. Sun Prairie, WI Moses C. Borntreger 1305 Gilbert, Footville, WI 53537 G. SIGN ERECTOR-RENEWALS FOR THE 2009-2010 LICENSE YEAR WESTPHAL & CO., INC. 14 Marsh Court, Madison, WI QUALITY SIGNS 1131 Ruger Ave. Community Development Department Memorandum July 13, 2009 TO: Janesville City Council FROM: Al Hulick, Development Specialist SUBJECT: Final CSM 09007-C, Marklein Builders, 1 Lot along Newcastle Drive. I. RECOMMENDATION The Plan Commission and Community Development Department recommend that the City Council support a motion to approve Final CSM 09007-C subject to the following conditions: 1. Payment of land division assessments for storm sewer ($7,757.15) and street light ($1,346.52) improvements. 2. The developer should contact the Engineering Department regarding the scheduling of public works improvements and the City Clerk’s Office regarding any outstanding taxes, special assessments, or other fees which must be paid. Outstanding special assessments, deferred or active on parcels within this plat or survey, are subject to a minimum $300 split paid prior to signing. II. REQUEST Marklein Builders has requested the approval of a 0.83 acre one-lot CSM located along Newcastle Drive. The subject property is currently undeveloped and is being surveyed in order to create a lot for single-family residential development. III. ANALYSIS A. The applicant proposes to create a 0.83 acre lot. The proposed lot is zoned R1-Single and Two-Family Residence. The subject lot is being created in order to be developed with a single family residence. The subject lot is surrounded by existing single-family residences. B. Newcastle Drive was previously constructed across the frontage of the subject site to provide a connection to Huntington Court to the east. C. 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 Newcastle Drive as part of the “orange sidewalk” category which signifies future unplanned, unfunded sidewalk. In accordance with the Sidewalk Ordinance, future unplanned, unfunded sidewalk will only be constructed at the request of a resident, or as determined by the Engineering Department. Therefore, this survey is not subject to special assessments for the construction of sidewalk improvements at this time. However, sidewalks are planned along the south side of Newcastle Drive directly across from the subject site. 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 developer should contact the Engineering Department regarding the scheduling of public works improvements and the City Clerk’s Office regarding any outstanding taxes, special assessments, or other fees which must be paid. Any plat or survey with requested and scheduled improvements, must be recorded by the preliminary resolution date. Outstanding special assessments, deferred or active on parcels within this plat or survey, are subject to a minimum $300 split paid prior to signing. IV. PLAN COMMISSION ACTION – 6 JULY 2009 The Plan Commission unanimously agreed to forward this survey to the City Council with a favorable recommendation subject to the conditions listed in Section I. cc: Duane Cherek Brad Cantrell HUMAN RESOURCES DIVISION MEMORANDUM July 1, 2009 TO: City Council FROM: Susan A. Musick, Human Resources Director SUBJECT: Retirement Recognition – Kay M. Nikolaus Executive Summary At the City Council meeting of July 13, 2009, the following retirement commendation will be considered under the consent agenda: 1. Kay M. Nikolaus for twenty-nine years of service with the City of Janesville (File Resolution Number 2009-623) ? Kay will not be attending the July 13, 2009 Council meeting. ? Kay began working for the City of Janesville on January 7, 1980, as a Police Officer with the Janesville Police Department. ? Kay was promoted to Detective on March 19, 1990. Recommendation Staff recommends adoption of File Resolution 2009-623. 1 RESOLUTION NO. 2009-623 Whereas, Kay M. Nikolaus has retired from City of Janesville employment after having diligently served the people of the City of Janesville and the community for twenty-nine years; retiring as a Sergeant with the City of Janesville Police Department; and Whereas, during Kay M. Nikolaus’ employment with the City of Janesville, she provided exemplary professional service and demonstrated conscientious devotion to the duties of her position, which she performed with competence, sincerity, honesty, and dedication; and Whereas, it is desired that such commendable service to the City of Janesville be properly recognized; Now, Therefore, Be It Resolved that the people of the City of Janesville, through the City Council, do express their grateful appreciation to Kay M. Nikolaus for her twenty-nine years of loyal public service. th Dated this 13 day of July, 2009. 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: Human Resources Prepared by: Human Resources CITY MANAGERS OFFICE MEMORANDUM July 8, 2009 TO: City Council FROM: Dave Grzelak, Administrative Intern SUBJECT: Tim Cullen Internship Program Students Each year the City hosts students from Craig and Parker High Schools participating in the Cullen Internship Program. These events are part of the internship program that is endowed by area resident, Tim Cullen, which allows students to gain experience in local and state government. On June 25, four high school students and a teacher met with various staff members to learn about the role and functions of the City. The students toured the wastewater treatment plant, sanitary landfill, park system and met with staff from the City Manager’s Office, Police Department, Leisure Services and Community Development. On July 13, the students are scheduled to meet with Councilmembers during the Council’s Informal Listening Session. Meeting with Councilmembers will give the students the opportunity to ask questions, learn about Council meetings, and discuss some of the current issues affecting the Council and the community. The students will attend the July 13 City Council Meeting. They will introduce themselves and share where they are interning during requests and comments from the public on matters which can be affected by Council action. CC: Eric Levitt, City Manager Jay Winzenz, Director of Administrative Services/Assistant City Manager 1 DEPARTMENT OF PUBLIC WORKS MEMORANDUM 7 July 2009 TO: City Council FROM: Mike Payne, Engineering Manager SUBJECT: PUBLIC HEARING AND ACTION ON A FINAL RESOLUTION FOR PUBLIC WORKS BID SCHEDULE “F” – 2009 (FILE RES. NO. 2009-612) Summary The attached Sidewalk Resolution No. 2009-612 for an assessable project on Bid Schedule “F”-2009. This Resolution includes assessable sidewalk on eight (8) street segments and was introduced to Council at the June 22 Council meeting. An error was discovered related to the Newville Road sidewalk proposal. The frontage for Lein Oil was previously represented as funded sidewalk by mistake. The Engineering Division no longer recommends sidewalk installation on Newville Road due to the majority of the section requiring assessments to the abutting property owners, which was not the intent of the current sidewalk program. Half of the segments proposed on the resolution were requested by the public. Several segments were added by staff to eliminate small gaps between funded sidewalk proposed to be installed this year. By adopting this Sidewalk Resolution, the City is declaring its intent to assess the abutting properties benefiting by these improvements. All affected property owners received a letter of the scheduled public hearing and the amount of their proposed assessment. Property owners have the option to pay the sidewalk assessment to the City over five years. Recommendation The Engineering Division recommends the Council strike line item 3 – Newville Road from the Resolution and adopt Sidewalk Resolution No. 2009-612 Suggested Motion I move to strike line item 3 – Newville Road from the Resolution and adopt Sidewalk Resolution No. 2009-612. Attachments cc: Eric Levitt Jacob J. Winzenz j:\agenda review\approved agenda items\2009\7-13-2009\new sidewalk - 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\7-13-2009\new sidewalk - resolution 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. West Center Avenue W. Holmes Street 440’ North 3. East Newville Road 828’ N. of USH 14 970’ N. of USH 14 4. South E. Milwaukee Street Alpine Drive 290’ East 5. South Elizabeth Street N. Oakhill Avenue 132’ West 6. East S. Sumac Drive Wesley Avenue 115’ South 7. East Kennedy Road USH 14 540’ North 8. East Kennedy Road 865’ N. of USH 14 1,235’ 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\7-13-2009\new sidewalk - resolution 2009-612.doc DEPARTMENT OF PUBLIC WORKS MEMORANDUM July 6, 2009 TO: City Council FROM: Mike Payne, Engineering Manager SUBJECT: Award of Bid Schedule “F” – 2009 Contract 2009-17, Parker Drive Parking Structure Pre-Cast Package Contract 2009-18, New and Replacement Sidewalk Contract 2009-19, South River Road Greenbelt Improvement Summary Bids for Public Works Schedule “F” were opened on Wednesday, June 17, 2009. The Engineering Division is recommending the Council reject all bids for contract 2009-17 and award contracts 2009-18, -19 to the low bidders as shown on the attached tabulation of bids, and that the City Council express their intent to include in the 2009 Note Issue $418,870 for the Sidewalk Contract. Recommendation Following Review by the Council, the Engineering Division recommends rejecting all bids for contract 2009-17 and awarding contracts 2009-18, -19 to the low bidders. Suggested Motion I move to reject all bids for contract 2009-17 and award contracts 2009-18, -19 to the low bidders and that the City Council express their intent to include in the 2009 Note Issue $418,870 for the Sidewalk Contract. Background Contract 2009-17, Parker Drive Parking Structure Pre-Cast Package This contract was the first of two bid packages related to the proposed downtown parking structure. The intent for splitting the bid into two packages was to determine the precast cost for the project since this portion of the work represents nearly 50% of the total project cost. Determining the pre-cast portion of the project before issuing the second bid package allowed for changes in the project approach for the second bid package depending on the amount of the first bid. Funding for this project is Note Issue borrowing over several years. We received four (4) bids for this project. Three of the four bidders attached exclusions and modifications to the bid form. The fourth bidder submitted an incomplete bid. After discussions with the City Attorney, all four bids should be rejected. \\petey\cojhome\agenda review\approved agenda items\2009\7-13-2009\contract award bid schedule f - memo.doc The alternate bid items for the project are the following: ? Alternate Bid Item A – substitute stained concrete brick finish in lieu of thin set brick. ? Alternate Bid Item B – furnish materials for a 3 ½ level structure in lieu of a complete 4 level structure. Contract 2009-18, New and Replacement Sidewalk This contract combines new and replacement sidewalk for 2009. The Council will be evaluating new sidewalk assessments under a separate agenda item which includes a public hearing for affected property owners. Funding for new sidewalk is from two sources: 2009 Note Issue and assessments paid by property owners benefitting from the improvements. Funding for the replacement sidewalk is also from two sources: 2009 Note Issue for City frontage and payments from property owners for sidewalk maintenance from abutting property owners. In the case of new and replacement sidewalk, property owners are granted a 5 year payment plan. We received four (4) bids for this project. with J.B. Johnson Bros., LLC providing the low bid. The Engineering Division is recommending award of this contract to J.B. Johnson Bros., LLC of Edgerton, Wisconsin in the amount of $418,870. Contract 2009-19, South River Road Greenbelt Improvement This contract restores an existing greenbelt to correct ongoing erosion. The project includes tree and brush removal, excavation, grading, installing heavy rip rap, and restoration of the work area. Engineering staff held a neighborhood meeting and the neighbors support the project. Funding for this project was included in the 2008 Note Issue. We received four (4) bids for this project. with Greener Valley Landscaping Inc. providing the low bid. The Engineering Division is recommending award of this contract to Greener Valley Landscaping Inc. of Janesville, Wisconsin in the amount of $36,440. Attachment cc: Eric Levitt Jacob J. Winzenz \\petey\cojhome\agenda review\approved agenda items\2009\7-13-2009\contract award bid schedule f - memo.doc Bid Opening: 17 June 2009 Page 1 of 1 CITY OF JANESVILLE TABULATION OF BIDS PUBLIC WORKS BID SCHEDULE “F” – 2009 2009-17 PARKER DRIVE PARKING STRUCTURE PRE-CAST PACKAGE J. W. Peters & Sons, Inc./IPC Base Bid – Materials Only: $1,465,530 500 W. Market Street Base Bid – Labor Only: $84,870 Burlington, WI 53105 Total: $1,550,400 Alternate A: $1,580,130 Alternate B: $1,452,330 Spancrete Industries, Inc. Base Bid – Materials Only: $1,412,944 N16 W23415 Stoneridge Drive Base Bid – Labor Only: $194,476 Waukesha, WI 53187 Total: $1,607,420 Alternate A: $(47,650) Alternate B: $(166,209) Stress-Con Industries, Inc. Base Bid – Materials Only: $1,597,000 50500 Design Lane Base Bid – Labor Only: $64,000 Shelby Township, MI 48315 Total: $1,661,000 Alternate A: $(148,000) Alternate B: $(216,000) Dukane Precast Base Bid – Materials Only: $1,766,410 1805 High Grove Lane Base Bid – Labor Only: $99,790 Naperville, IL 60540 Total: $1,866,200 Alternate A: $(73,800) Alternate B: $(190,000) \\Petey\COJHome\Agenda Review\Approved Agenda Items\2009\7-13-2009\Contract Award Bid Bid Schedule F - C17 Results.doc Bid Opening: 17 June 2009 Page 1 of 1 CITY OF JANESVILLE TABULATION OF BIDS PUBLIC WORKS BID SCHEDULE “F” – 2009 2009-18 NEW AND REPLACEMENT SIDEWALK J. B. Johnson Bros., LLC Total Bid: $418,870.00 12 Maple Court Edgerton, WI 53534 J. W. Schultz Construction, Inc. Total Bid: $551,710.00 43 Highway 51 Edgerton, WI 53534 Economy Cement, Inc. Total Bid: $599,570.00 1017 South Whitney Way Madison, WI 5371 Marvin Gleason Contractor, Inc. Total Bid: $818,430.00 2811 Twin Waters Lane Franksville, WI 53126 2009-19 SOUTH RIVER ROAD GREENBELT IMPROVEMENT Greener Valley Landscaping, Inc. Total Bid: $36,440.00 1702 Highland Avenue Janesville, WI 53545 Custom Ditching, Inc. Total Bid: $75,312.50 17 Auburn Drive Beloit, WI 53511 Bjoin Limestone, Inc. Total Bid: $76,236.25 7308 W. State Road 11 Janesville, WI 53548 Rock Road Companies, Inc. Total Bid: $148,182.50 P.O. Box 1779 Janesville, WI 53547 \\Petey\COJHome\Agenda Review\Approved Agenda Items\2009\7-13-2009\Contract Award Bid Bid Schedule F - C18-19 Results.doc CITY MANAGER’S OFFICE MEMORANDUM July 8, 2009 TO: City Council FROM:Rebecca Smith, Management Assistant SUBJECT: Action on a Proposed Resolution Affirming the Spending of Federal Economic Renewal Grants to the City of Janesville (File Resolution No. 2009- 624) Request Council President Truman asked that a resolution regarding economic renewal grants be added to the July 13, 2009 council agenda. Recommendation Staff recommends adoption of File Resolution 2009-624. Suggested Motion: I move to approve file resolution 2009-624 affirming the spending of Federal Economic Renewal Grants to the City of Janesville. Background Draft resolution text was provided by the Alliance for American Manufacturing (AAM). AAM is a non-partisan partnership between leading U.S. manufacturers and the United Steelworkers with the purpose of strengthening manufacturing in the United States. Americans rely on the work of the manufacturing community in a variety of ways. Constructing buildings, raising bridges and building automobiles and other transportation vehicles are all necessary activities that are performed on a daily basis by manufactures for the benefit of all citizens. According to the AAM, the manufacturing sector employs nearly 14 million Americans directly and creates an additional 8 million jobs in other sectors; manufacturing also contributes $1.2 trillion to America’s economy. This resolution affirms the City of Janesville’s commitment to using federal stimulus dollars to benefit the citizens of Janesville and the greater American population by spending, where possible, funds with companies that support United States’ workers and companies. Larry Warman, Field Coordinator for the AAM, will be present at the July 13 council meeting and would welcome any questions the Council may have. CC: Eric Levitt, City Manager Jacob J. Winzenz, Assistant City Manager/Director of Administrative Services RESOLUTION NO. 2009-624 A resolution affirming the Spending of Federal Economic Renewal Grants to the City of Janesville (File Resolution No. 2009- 624) WHEREAS , the economic downturn is having a critical impact on everyday Americans who are struggling to maintain or find jobs in an increasingly difficult environment; and WHEREAS , those same Americans are the taxpayers that provide the funding needed to operate essential government services; and WHEREAS , Congress has approved and President Obama has signed into law a taxpayer-sponsored economic recovery package that will provide billions of dollars to help economically devastated cities and states immediately provide jobs to millions of unemployed Americans through considerable infrastructure rebuilding, green energy projects and other projects that will require manufactured components; and WHEREAS , our taxpayer dollars should be spent to maximize the creation of American jobs and restore the economic vitality of our communities; and WHEREAS , any domestically-produced products that are purchased with economic recovery plan funds will immediately help struggling American families and stabilize our greater economy; and WHEREAS , any economic recovery plan spending should – to every extent possible – include a commitment from the City of Janesville to buy materials, good and services for projects from companies that are produced within the United States, thus employing the very workers that pay the taxes for the economic recovery plan spending. NOW, THEREFORE, LET BE IT RESOLVED Bythe Common Council of the City of th Janesville , on the 13 day of July 2009 that the Janesville City Council will work to maximize the creation of American jobs and restore economic growth and opportunity by spending economic recovery plan funds on products and services that both create jobs and help keep Americans employed; and BE IT FURTHER RESOLVEDby the Common Council that we commit to purchase products and services that are made or performed in the United States of America whenever and wherever possible with any economic recovery plan funds provided to the City of Janesville by the American taxpayers; and BE IT FURTHER RESOLVEDby the Common Council that as legislators of the City of Janesville we commit to make available via our established public notice process, the contracts that spend these monies so as to give American workers and producers the opportunity to identify and provide the American products and services that will maximize the success of our nation’s economic recovery program. Motion by: ADOPTED: Second by: Councilmember Aye Nay Pass Absent APPROVED: Brunner McDonald Perrotto Eric Levitt, City Manager Rashkin Steeber ATTEST: Truman Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: Wald Klimczyk, City Attorney Proposed by: Council President Truman Prepared by: Management Assistant ADMINISTRATIVE SERVICES MEMORANDUM July 8, 2009 TO: City Council FROM: Jacob J. Winzenz, Dir. of Admin. Services/Asst. City Manager SUBJECT: Discussion of Alternatives and Direction to Staff on Providing Additional Parking Near Janesville Senior Center Summary At the February 9, 2009 meeting of the Janesville City Council staff presented alternatives to provide additional parking near the Janesville Senior Center. Following the presentation and discussion the City Council requested that staff work with Mercy Health System to relocate their employee parking, explore a permit parking system, and prepare a cost estimate to provide angled parking on St. Lawrence Avenue and Water Streets (which would require converting both streets to one-way). Since February 9, 2009 the employee parking for Mercy Health System has been relocated across Court Street to the Parking Plaza (seventeen stalls). Engineering staff has prepared a cost estimate and schematic plan to provide angled parking on St. Lawrence Avenue and Water Streets; and surveyed the surrounding property owners regarding this proposal. The cost estimate, plan, and letters from concerned property owners are attached. Staff has also explored the option of a permit parking system which will be discussed in this memorandum. Recommendation Staff continues to believe that sufficient parking exists near the Janesville Senior Center to accommodate the current parking demand. The relocation of employee parking for Mercy Options seems to have been effective judging by the number of cars parking in the assigned stalls in the Parking Plaza. Staff does not believe any additional changes are necessary at this time. However, if the City Council wishes to further restrict the existing parking near the Janesville Senior Center to allow more parking for center users, staff would recommend the establishment of a permit parking system. Approximately fifty- five stalls in the current parking lot, and on St. Lawrence Avenue west of Water Street, would be designated as “Permit Parking Only” between 8:00 a.m. and 4:00 p.m. Monday through Friday. Parking permits would then be given to users of the Janesville Senior Center allowing them to park in the designated stalls. Details of this proposal would be worked-out with the Senior Center board. Background At the September 22, 2008, meeting of the Janesville City Council staff presented to the City Council a study of parking occupancy around the Janesville Senior Center. This study concluded that sufficient parking is available to meet the current demand. Members of the Janesville Senior Center did not agree with the conclusions of staff and requested the creation of an additional twenty (20) parking stalls. The City Council requested staff explore alternatives to create additional parking. At the February 9, 2009, meeting of the Janesville City Council staff presented alternatives to provide additional parking near the Janesville Senior Center (report attached). Following the presentation and discussion the City Council requested that staff work with Mercy Health System to relocate their employee parking, explore a permit parking system, and prepare a cost estimate to provide angled parking on St. Lawrence Avenue and Water Streets (which would require converting both streets to one-way). The parking for employees at Mercy Options has been relocated across Court Street to the Parking Plaza. Seventeen (17) stalls have been designated for their use. Based upon casual observations, it appears that the designated stalls in the Parking Plaza are being used by Mercy7 Options employees, thus making additional stalls near the Senior Center available for Senior Center users. Analysis At the City Council meeting on February 9, 2009, the City Council requested additional information on two (2) alternatives; making St. Lawrence Avenue and Water Streets one-way and creating angled parking on both streets, and the exploration of a permit parking system. ? Alternative I – Creation of Angled parking on St. Lawrence Avenue and Water Streets. Attached is a memorandum from Mike Payne, Engineering Manager, indicating that the estimated cost to convert St. Lawrence Avenue and Water Streets to one-way and construct angled parking is $110,000. This would create an additional twenty-six (26) parking stalls, or $4,230 per stall. Under this option twelve (12) terrace trees would need to be removed. Staff sent surveys to approximately seventeen (17) property owners asking if they had concerns with this alternative. Three (3) responses were received and are attached for your consideration. These property owners are concerned about access to their properties through the 2 creation of one-way streets, the removal of terrace trees, and the expense of creating additional parking when they do not see the need. ? Alternative II – Permit Parking Staff believes it would be possible to designate approximately 55 stalls as “Permit Parking Only” between 8:00 a.m. and 4:00 p.m. Monday through Friday. Approximately fourteen (14) stalls would still be available for use by Mercy Options patients, adjacent businesses, and apartments. A parking permit could then be issued to users of the Janesville Senior Center allowing them to park in the stalls designated for permit parking. This may make additional stalls available to members of the Janesville Senior Center. 3 DEPARTMENT OF PUBLIC WORKS MEMORANDUM 24 June 2009 TO: Jay Winzenz, Director of Administrative Services / Asst. City Manager FROM: Mike Payne, Engineering Manager SUBJECT: SENIOR CENTER PARKING FOLLOW-UP MEMO On February 2, 2009 you presented the Council with alternatives and cost estimates for creating additional parking at the Senior Center. The Council directed staff to evaluate a conversion from two-way to one-way westbound on St. Lawrence Street between Main Street and Water Street, and southbound on Water Street between St. Lawrence and Van Buren Street to accommodate angled parking on both sides of those streets. Creating the minimum standard aisle width for one-way traffic and angled parking requires relocating curb and gutter on the south side of St. Lawrence Street and east side of Water Street. This curb and gutter relocation will require removing twelve existing trees in the affected terraces. A map of the proposed changes is attached for your reference. The cost estimate for these modifications is $110,000. Engineering previously prepared a cost estimate of $60,500 for a slightly different scope on St. Lawrence Street. The previous estimate included a cost for removing and relocating sidewalk 2-feet farther from the curb for the entire length to ensure the bumpers of parked vehicles did not overhang the 5-foot sidewalk. After additional consideration, Engineering believes the bumper overhang of the sidewalk does not create significant concern and is not worth the additional relocation costs. The Engineering Division recently mailed a survey to all property owners on Water Street between Court Street and the Library. There were approximately 17 surveys mailed. Engineering received three responses to the survey from property owners opposed to the proposed one-way conversion and removing mature terrace trees. The three responses are attached to this memo for your reference. Attachments cc: Eric Levitt j:\agenda review\approved agenda items\2009\7-13-2009\senior center parking 2 - cost estimate memo.doc NEIGHBORHOOD SERVICES MEMORANDUM June 9, 2009 TO: City Council FROM: Kelly Lee, Neighborhood Development Specialist SUBJECT: Action on a Proposed Resolution Authorizing the Acquisition and Demolition of 316 Linn Street (File Res. 2009-622) Summary The Neighborhood Services Department is anticipating a Neighborhood Stabilization Program (NSP) grant award of $1,003,743 to acquire, rehabilitate, demolish and redevelop foreclosed and abandoned properties. The property located at 316 Linn 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 2009-622 authorizing the purchase of the property located at 316 Linn Street, at an acquisition price not to exceed $5,000 as part of the Neighborhood Stabilization Grant Program (NSP). City Manager Recommendation The City Manager recommends approval. Suggested Motion I move to approve file resolution 2009-622 authorizing the purchase of 316 Linn Street, at an acquisition price not to exceed $5,000 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 $1,003,743 . 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 316 Linn Street is a foreclosed, two unit home in poor condition. On April 10, 2007 there was a kitchen fire at the property that resulted in a substantial amount of damage. It appeared that the owner of the property intended on repairing the fire damage when they pulled an electrical and a building permit in 2007; however repairs were never completed and the property was foreclosed in February of 2009. Building Services issued an Order to Raze or Repair in March of 2009. While official action could have been taken to raze the house at this time, Neighborhood Services felt that this was a good candidate for the Neighborhood Stabilization Program grant. The property is located in census tract 3, which has been identified as one of the areas of greatest need. The property is in walking distance to both parks and th schools. In addition, the property is identified in fair condition according to the 4 Ward and Look West Housing Condition Report. This was an exterior assessment of the property and did not take into account the interior condition. Staff has toured the property and found the interior of the property to been completely gutted. The Janesville Police Department has had 18 calls for service and Neighborhood Services has had 4 complaints at this address since 2006. The grant does not require the City of Janesville to have an appraisal done for properties with a purchase price under $25,000; however a qualified individual must provide a fair market estimate for the property. The assessment for the property is $29,600 which includes $16,000 for the lot and $13,500 for the improvement. The Neighborhood Services Department feels that it is in the best interest of the neighborhood to remove the fire damaged property that has been sitting vacant for the last two years and has reached an agreement with the bank for a purchase price of $5,000 contingent upon Plan Commission and City Council Approval. 2 The project would include acquisition and demolition of the property funded by the Neighborhood Stabilization Program (NSP) grant. The estimated cost for demolition is $12,500. Once the project is complete, the City of Janesville will explore the possibility of the dividing the lot between the two adjoining property owners or donating the lot to Habitat for Humanity for redevelopment with a single family home. The City has negotiated a conditional purchase price of $5,000. This falls within the limits established in the grant application. Analysis A. The property is zoned R-2, Limited General Residential. B. The project will include acquisition and demolition of the property funded through the Neighborhood Stabilization Program (NSP) grant. C. 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 3 which has been identified as one of the areas of greatest need in Janesville. The property is within walking distance of th both parks and schools. The property is listed as fair in the 4 Ward and Look West Housing Condition Report based on an exterior inspection. D. 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 Hanewold with a second by Chairman Helgerson to forward the proposed acquisition 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 5-0-1 vote with Commissioner Werner abstaining. cc: Eric Levitt, City Manager Jay Winzenz, Dir. of Administrative Services/Assistant City Manager Jennifer Petruzzello, Neighborhood Services Director 3 RESOLUTION NO. 2009-622 RESOLUTION AUTHORIZING THE ACQUISITION AND DEMOLITION OF REAL PROPERTY LOCATED AT 316 LINN 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 has been awarded $1,003,743 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 th Fourth Ward Neighborhood Revitalization 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 fair condition th 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 an offer to purchase 316 Linn Street in the amount of Five Thousand dollars ($5,000); and WHEREAS , the Janesville Plan Commission has reviewed this proposed acquisition on July 6th, 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 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: Community Development Department Memorandum Date: July 2, 2009 TO: Janesville City Council FROM: Bradley A. Cantrell, Community Development Director SUBJECT: City Council Authorization to Allow the Submittal of a Grant Application for Restoration of Doors for the Tallman House. _____________________________________________________________________ The Community Development Department has been contacted by Judy Adler who is working with the Monterey Questers, one of four local chapters of Questers in the Janesville area. The Questers was founded in 1944 to further knowledge and education about antiques and to encourage the preservation, restoration, and conservation of historic buildings, sites and monuments. She and the local group are interested in applying for a grant from the Questers International Grants Fund for a project which would benefit the Tallman House. Grants up to $6,000 can be obtained from the international organization for local preservation projects. The Monterey Questers most recently received international grant of $3,600 which was used to restore the gates at Riverside Park. This was done in collaboration with the Friends of Riverside Park. Previous international and state grants have been used to fund restoration work on artifacts in the Tallman House in collaboration with the Rock County Historical Society. Restorative construction on a publicly-owned historic building is eligible for a grant. Monterey Questers members have reviewed the rehabilitation needs of the Tallman House and have identified a project that would fit into the grant guidelines. The project would include the restoration of the four exterior doors to the side porch and solarium ($5,000). The Monterey Questers will provide some funds in addition to the grant from their own fundraising efforts. International grants will be awarded in May of 2010 and the work must be completed within one year of the award. Because the Tallman House is a City-owned building, the City Council must grant authorization to apply for the grant and implicitly use the funds for this restoration effort. The Community Development Department supports authorization of the Monterey Questers to proceed on their grant application. Recommendation The Community Development Department recommends that the City Council support a motion to give authorization to the Monterey Questers to submit an application for a grant to restore four exterior doors for the Tallman House to the International Grants Fund. City Manager Recommendation The City Manager concurs with the Community Development Department recommendation. cc: Jacob Winzenz City Manager Office July 7, 2009 TO: City Council FROM: Eric Levitt, City Manager SUBJECT: Approval of City Council Short Term and Long Term Goals Summary th At the City Council Retreat on June 16, the City Council utilized a prioritization system to create short term and long term goals for the City. The definition of the short-term goals would be 18 months or less. City Manager Recommendation The City Manager’s office summarized the City Council short-term and long-term goals for Council consideration of approval. The goals are attached to the memorandum. The City Manager requests approval of the goals as submitted. Suggested Motion I move to approve the short-term and long-term City Council goals as presented. Background The City Council goals as attached were developed during the retreat on June th 16. The staff will be developing work plans within the goals framework. 1 6/2009 City Council Long Terms Goals 2009 1. Work through upcoming city budgets, including reserve fund balances and major capital improvements 2. Assist with poverty, homelessness and job loss 3. Provide quality city services that are efficient, effective and need-responsive 4. Initiate long term economic/community development strategy to address employment growth and job creation ? Support central business district & downtown/neighborhood/riverfront plans using public/private partnerships ? Continue the revitalization of central city neighborhoods ? Plan for new and redevelopment projects such as: Monterey Hotel o West side & other parking structures o Property acquisition o 5. Initiate facility maintenance & replacement program to address major capital/facility needs such as: ? Major capital improvements ? Comprehensive maintenance program ? Fire Station #1 ? Transit Facility ? Children’s museum ? Aquatics ? Tallman House ? Ice Skating Center 6/2009 City Council Short Term Goals 2009 1. Work through upcoming budgets and develop budget process guidelines ? Evaluate strategies for debt/borrowing 2. Develop innovative ideas to increase available jobs ? Look for small/medium investment opportunities to help economy/deliver services 3. Establish economic/community development strategy ? Create vision/mission ? Develop branding/marketing of city ? Start business community advisory group for growth strategies/city efficiencies 4. Establish facility maintenance plan for major facilities, including: ? Fire Station #1 ? Transit Facility ? Aquatics ? Tallman House ? Ice Skating Center ? Riverside pool ? Jackson Street bridge ? Options/changes to Lions Beach ? Decision on bike tunnel 5. Establish guidelines/plan to maintain city services/operations 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