#4 Approve economic development grant to Fuji Steakhouse
COMMUNITY DEVELOPMENT DEPARTMENT
September 3, 2010
TO: Janesville City Council
FROM: Gale S. Price, AICP, Manager of Building and Dev. Services
SUBJECT: Review and approval of an Economic Development Grant to Fuji
Steakhouse, 2235 Milton Avenue.
Executive 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. Fuji Steakhouse represented by Ting Cheng has requested an
Economic Development Grant for their Reserve Class B license which was issued in
June.
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 Fuji Steakhouse be approved.
Suggested Motion
Motion to approve an Economic Development Grant in the amount of $10,000 for Fuji
Steakhouse.
Request
The City Clerks Office has received a written request for a $10,000 Economic
Development Grant from Ting Cheng, owner of the Fuji Steakhouse, 2235 Milton
Avenue. The use was issued a Reserve Class B license earlier this year and has paid
their initial $10,000 Reserve Class B license fee with their application.
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
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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 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 in the
middle of the Milton Avenue commercial corridor. This project is considered to
be an in-fill development as it is re-using a former video store to convert it for the
use. The building had been vacant for an extended period of time.
2. The owner was required to make extensive modifications to the building to meet
current building and plumbing codes including sprinklering the entire building,
installation of a grease interceptor, kitchen construction and HVAC modifications
to accommodate all of the grills within the building. The investment to modify the
existing facility is anticipated to increase the property value of the property in that
the owners will have invested $200,000 for the building. This amount of
investment substantially exceeds the $10,000 initial license fee.
3. The establishment is located greater than 300 feet from a residentially-zoned
area and is consistent with the standard.
cc: Eric Levitt
Jacob J. Winzenz
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