#4 Public hearing to amend project plan for TIF #22 (Res. #2009-621)Economic Development Memorandum
Date: August 4, 2009
TO: Janesville City Council
FROM: Douglas Venable, Director of Economic Development
SUBJECT: Action on a Resolution Approving Amendment No. 2 to the Project Plan
for Tax Increment Finance District No. 22 (File Res. No. 2009-621)
I. Summary
City staff is proposing a second amendment to TIF No. 22 to add approximately
57 acres of existing industrial land and to authorize the expenditure of TIF funds on
projects located within ½ mile of the TIF district. The Plan Commission met on August 3,
2009 and recommended that the Council approve proposed Amendment No. 2 to the
Project Plan for TIF No. 22.
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 adopt Resolution 2009 – 621, approving
Amendment No. 2 to the Project Plan for TIF No. 22. If this Resolution passes,
Amendment No. 2 will go to the Joint Review Board for its approval and then to the
Department of Revenue for certification.
City Manager Recommendation
I concur with the Economic Development Director’s recommendation.
III. Suggested Motion
Move to adopt Resolution No. 2009 – 621, approving Amendment No. 2 to TIF No. 22 is
recommended.
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Economic Development Department Box 5005 Janesville, WI 53547-5005 755-3180
TIF 22 Amendment
August 4, 2009
Page 2
IV. TIF Creation Procedures
Wisconsin’s Tax Increment Law (§ 66.1105) sets forth a specific procedure for
amending the boundary of a TIF district. The Plan Commission must hold a public
hearing, preceded by a Class 2 public notice. The required hearing was held on
August 3, 2009. The Plan Commission recommended that the City Council approve the
proposed TIF boundary and Project Plan amendment.
If the Council approves Amendment No. 2 to the TIF No. 22 Project Plan, then
the Amendment will be considered by a Joint Review Board composed of
representatives from the City, the School District, the County, the Vocational District,
and a fifth member chosen at large
V. 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 State
Highway 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 and buildings on Burbank Ave., formerly owned by Quality
Wood Treating. The City has a shortage of rail served industrial properties and the
Quality Wood site is served by a spur off of the UP railroad. 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.
TIF 22 Amendment
August 4, 2009
Page 3
The amended budget for TIF No. 22 includes funding for land acquisition,
transportation improvements, utility costs, street lighting and landscaping, marketing
and financial incentives, and administration. The total budget for TIF No. 22 is
$14,396,618. Borrowing costs and interfund interest charges are estimated to add an
additional $4,597,860 for a total TIF No. 22 budget of $19,030,944.
Between 1999 and 2009, 1,440,000 SF of new industrial space has been
constructed creating $48,825,200 in TIF incremental value. This value generates
approximately $1.0 million in TIF revenues annually which are paying off TIF costs.
Over the maximum life of TIF No. 22, the City estimates TIF revenue will total
$21,811,400 exceeding TIF costs by $2,780,455.
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: Plan Commission Report
Amendment No. 2 - TIF No. 22 Project Plan
Resolution 2009 – 621
Cc Eric Levitt, City Manager
Jay Winzenz, Director of Administrative Services
Community Development Department Memorandum
August 4, 2009
TO: Janesville City Council
FROM: Al Hulick, Development Specialist
SUBJECT: Amendment No. 2 to the Project Plan for Tax Increment Finance
District No. 22.
I. RECOMMENDATION
The Plan Commission and Community Development Department
recommends that following a public hearing, the City Council support a
motion to find the proposed amendment No. 2 to the Project Plan for Tax
Increment Finance District No. 22 consistent with established City Plans.
II. REQUEST
TIF No. 22 was created in 1999 as an industrial TIF district to stimulate the
expansion and development of an emerging industrial area centered along
Beloit Avenue and STH 11. The construction of the 700,000 SF Helgesen
building, the 490,000 SF John 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.
III. ANALYSIS
A. Attached to this memorandum is a copy of the TIF District No. 22
Project Plan Amendment No. 2. The amended project plan has
been prepared to reflect the proposed adjustments to the original
plan approved. New text and figures are shown in highlighted
format while obsolete data is presented in strike-out fashion.
B. 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.
C. 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.
D. 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.
E. The Community Development Department has reviewed the
amended Project Plan for TIF 22 against City plans and policies
including the 2008 Comprehensive Plan Update, Future Land Use
Map, and the City Council’s Economic Development Policy.
The Project Plan for TIF 22 includes the following objectives:
?
Promote industry retention, expansion, and attraction through
the development of a new fully improved industrial park, thereby
creating new jobs and increased tax base.
?
Provide appropriate financial incentives to encourage industrial
expansion projects within the TIF district and for projects located
within ½ mile of the TIF district.
?
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.
?
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.
F. 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.
G. The Community Development Department finds the proposed
Amendment No. 2 to TIF District No. 22 to be consistent with the
above stated City plans and policies.
IV. PLAN COMMISSION ACTION – 3 AUGUST 2009
Al Hulick, Development Specialist, presented the written staff report.
Commissioner Werner asked if there was any interest in the property east
of CRT Processing within the proposed amended boundary. Hulick
responded that there was none at this time. Hulick stated that the
property is a vacant industrial rail served property. Hulick explained that
the City currently lacks industrial rail served sites which is primarily why
this property has been included in the amended TIF Boundary.
Commissioner Werner asked if there was any other redevelopment
interest within the existing TIF and/or proposed amended boundary.
Hulick indicated that he was not aware of any at this time.
The public hearing was opened and no one appeared to speak regarding
this item. The public hearing was closed.
A motion was made by Commissioner Werner with a second by
Commissioner Perrotto to find the proposed amendment No. 2 to the
Project Plan for Tax Increment Finance District No. 22 consistent with
established City Plans.
cc: Brad Cantrell
Duane Cherek
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
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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.
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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
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S.005’50”E. along the West Line of said Section 18, 628.26 feet to the SW Corner of a
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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
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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
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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
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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
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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
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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
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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
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parallel with the East line of the SW ¼ of said Section 18; thence S.0000’13”W., along
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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
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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
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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
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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.,
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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
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S.8832’E. 350.03 feet to SE Corner Certified Survey Map as recorded in Volume 3, Pages
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264 and 265; thence N.017’E. 100 feet to SW Corner Lot 6, Second Sundown Acres
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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.
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Map 1 shows the land uses and zoning in TIF No. 22.
7
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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
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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
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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
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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.
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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
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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
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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
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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
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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
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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.
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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.
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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 Statutes 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
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
McDonald
Eric J. Levitt, City Manager
Perrotto
Rashkin
ATTEST:
Steeber
Truman
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
City Attorney
Proposed by: City Manager
Prepared by: Economic Development Director
CITY ATTORNEY’S OFFICE MEMORANDUM
June 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