#07 Approve economic development grant to The Crosby Place
Community Development Department Memorandum
August 11, 2009
TO: Janesville City Council
FROM: Gale S. Price, AICP, Manager of Building and Development Services
SUBJECT: Review and approval of an Economic Development Grant to The Crosby Place,
LLC located at 120 North Crosby Avenue.
Summary
In 2002 the City Council adopted an ordinance to establish an Economic Development Grant
program to permit the City Council to approve economic grants to those establishments that
obtain a Reserve Class B liquor license. Based on specific criteria the City Council may
approve such grants up to the one-time $10,000 Reserve Class B liquor license fee. The
Crosby Place, LLC represented by Tim Richards has requested an Economic Development
Grant for their Reserve Class B license which was issued on July 13, 2009.
Committee and Staff Recommendation
The Alcohol License Advisory Committee and the Community Development Department
recommend that following the City Council review, a motion to approve an Economic
Development Grant in the amount of $10,000 for The Crosby Place, LLC be approved.
City Manager recommendation
I concur with the ALAC and Community Development Department recommendations.
Suggested Motion
Motion to approve an Economic Development Grant in the amount of $10,000 for The Crosby
Place, LLC.
Request
The City Clerks Office has received a written request for a $10,000 Economic Development
Grant from Tim Richards, partner in The Crosby Place, LLC, for the Crosby Place banquet
facility located at 120 North Crosby Avenue. The Crosby Place was issued a Reserve Class B
license on July 13, 2009 and paid their initial $10,000 Reserve Class B license fee at that time.
Background
Alcohol licenses are regulated by State Statute Chapter 125 and Janesville Code of General
Ordinances Chapter 5. In 1997, the State reduced the number of Class B licenses that a
municipality may issue and created a new Reserve Class B alcohol license. A Class B license
and a Reserve Class B license are the same except for the cost. A Class B license costs $600
per year and a Reserve Class B license costs $600 per year plus a one-time fee of $10,000
when the license is initially issued. The fees are paid to and retained by the City.
Since the enactment of this Reserve Class B license fee, several cities in Wisconsin have
created an economic development grant program which in effect refunds all or part of the initial
$10,000 fee. In 2002, the City Council adopted an ordinance to establish such an Economic
Development Grant Program to allow the City Council to issue a one-time non-repayable grant
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to businesses who receive a Reserve Class B License. According to the ordinance, after
submission by the applicant of a written application to the City Clerk for a grant, the City Council
may provide an Economic Development Grant to the licensee in an amount not to exceed
$10,000 following a review and recommendation from the Alcohol Licensing Advisory
Committee (ALAC).
The ordinance further provides that the City Council may consider the following criteria when
determining whether to grant all or part of the $10,000 grant to a particular applicant:
1. That the extent to which the license and/or the grant will promote a redevelopment or
rehabilitation project in the downtown or other commercial areas including the amount of
investment, the extent of rehabilitation, historic preservation and public improvement
effectuated, and related revitalization, health, welfare, peace and public good order
factors.
2. That the applicant demonstrates that their investment and the establishment issued the
Class B reserve intoxicating liquor alcohol beverage license is equal to or greater than
the dollar amount of the grant request.
3. That the Class B reserve establishment is located at least 300 feet from any residential-
zoned area.
Analysis
The Community Development Department has evaluated this request based on the above
criteria and believes that the entire $10,000 initial license fee could be refunded as a grant.
Staff’s findings are based on the following:
1. While the property is not located within the downtown area, it is located on the edge of a
developed commercial corridor. This project is considered to be an in-fill development
as it is re-using a portion of an existing building for a new banquet facility. In the
approval of this project the developer is required to make building modifications to the
assembly space and significant changes to the parking lot of the site including removing
of paving and introduction of new greenspace. Not only does the project re-use an
existing building, the greenspace and landscaping improvements have a positive impact
on the neighborhood and community.
2. The investment to create the banquet facility is anticipated to increase the property value
of the property in that the owners have invested $118,000 to date and when all
improvements are created there will be over $200,000 of investment into the property.
This amount of investment far exceeds the $10,000 initial license fee.
3. The proposed establishment is not located greater than 300 feet from a residentially-
zoned area but the development was reviewed as a conditional use permit. Projects
which require a conditional use permit receive additional analysis to ensure compatibility
with surrounding land uses. Although this site is adjacent to residential zoned property,
the requirement to be evaluated and approved through the conditional use process
meets the intent of this criterion.
cc: Eric Levitt
Jacob J. Winzenz
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