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Full Agenda PacketCITY OF JANESVILLE CITY COUNCIL MEETING AGENDA MONDAY, November 22, 2010 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 October 26, 2010. B.Regular meeting of November 8, 2010. 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 10018-C, City of Janesville, 2 lots on Beloit Avenue. “C” 6. Financial statement for the month of October, 2010. “C” OLD BUSINESS 1. Requests and comments from the public regarding items on the Agenda not requiring a public hearing. 2. Continuation of public hearing on the FY2011 proposed City and Library budgets. 3. Action on the proposed FY2011 City and Library budgets. ----------------------- “C” – This designation indicates an item that the City Council will take up under a Consent Agenda. City Council Agenda – November 22, 2010 Page 2 NEW BUSINESS 1. Consideration of Council Policy Statement #85 regarding the purchasing of property. 2. Action on a proposed resolution authorizing a TIF Development Agreement with Wright Road Property Group LLC and 3700 Racine Street LLC for the Home Health United, Inc. project. (File Res. No. 2010-753) 3. Consideration and action upon a proposed motion to reconsider previously adopted File Resolution #2010-749 concerning New Business Agenda Item No. 4. 4. If reconsidered in Agenda Item No. 3, consideration and action upon File Resolution #2010-749 authorizing the City Manager to sell property located at 189 South High Street in accord with the terms, conditions, and empowerments set forth in Revised File Res. #2010-749, or as otherwise may be amended by the Common Council. (Revised File Res. #2010-749) 5. Action on a proposed resolution approving a Memorandum of Understanding between the City of Janesville and Town of Rock. (File Res. No. 2010-747) 6. Action on a proposed preliminary resolution for assessable watermain on STH 11 and schedule a public hearing for the final resolution December 13, 2010. (File Res. No. 2010-758) 7. Introduce and schedule a public hearing on a proposed ordinance amending Chapter 14 (Signs) of the Code of General Ordinances of the City of Janesville with regard to on-premise wall signs in Sign District D and the designation of street frontages for allowing such signs. (File Ord. No. 2010-468) 8. Requests and comments from the public on matters which can be affected by Council action. 9. Matters not on the Agenda. 10. Motion to adjourn. The use of audible cell phone ringers and active use and response to cellular phone technology by the governing body, staff and members of the public is discouraged in the Council Chambers while the Council is in session. PROCEEDINGS OF THE CITY COUNCIL CITY OF JANESVILLE, WISCONSIN SPECIAL MEETING OCTOBER 26, 2010 VOL. 61 NO. 22 Special meeting of the City Council of the City of Janesville held in the Municipal Building on October 26, 2010. The meeting was called to order by Council President Voskuil at 6:00 PM. Present: Council President Voskuil, Councilmembers Brunner, McDonald, Perrotto, Rashkin, Steeber, and Truman. Review of Proposed 2011 Budget: The City Council continued their review of the proposed 2011City budget, which included Economic Development, Transit, Storm Water Utility, Wastewater Utility, Water Utility, Cemetery, Golf Courses, Hedberg Public Library, JATV, Neighborhood Services, Sanitation, Industrial Waste, Insurance Fund, Vehicle Operation and Maintenance, Technical Services, and Major Capital Projects. Economic Development Director Grassman stated that the Administration removed $20,000 from the TIF portion of the proposed Economic Development budget because the Downtown Design Center was closing at year end 2010. During the review of the budgets the City Council asked various questions and requested additional information. The Administration would provide the Council with the fiscal impact including unemployment expenses of laying off a transit driver. Councilmembers Rashkin and Voskuil requested that the Administration assist JATV in developing a business plan. Councilmember McDonald requested an updated street maintenance debt service schedule. Councilmember Truman requested a job description for the Deputy Police Chiefs and Deputy Fire Chiefs. By consensus of the majority of the Council, the following items were placed on the “parking lot” list for further discussion:  Transit Subsidy: Increase budget $30,250 to fund a Transit Driver position for 12 months.  Neighborhood Services. Provide $18,000 to fund Downtown Development Alliance. The Council reviewed all items on the parking list and by consensus of the majority of the Council, the following budget actions were approved:  Debt Service: Decreased by $14,438 for the General Fund and $24,462 for the Non-general Fund.  Police Department: Decreased budget $35,000 for animal control costs.  Parks: The Parks Director was asked to redistribute the work so that all parks would experience a decrease in service levels from the reduction of one park employee.  Recreation: Increased Ice Arena revenue $10,000 by changing summer ice rates from $100 to $125.  Aquatics: Affirmed the reduction in service levels for the wading pools and setting the operating hours from 12:00 to 6:00.  Recreation: Increased Adult Programming fees to generate an additional $4,500.  Neighborhood Services. Affirmed $18,000 to fund Downtown Development Alliance.  Neighborhood Services. Decreased $45,000 from Tallman House accessibility funding and increased $45,000 to housing/homeownership funding.  Transit Subsidy: Increased budget $15,125 to fund a Transit Driver position for 6 months and to delay a route service reduction from January 1 to July 1.  City Manager: Affirmed the delay in hiring an Administrative Analyst until mid-year.  Police Department: Increased budget $48,813 for hiring two police officers at mid- year. The following Council actions failed:  Public Buildings: Decrease budget by $4,000 by reducing building cleaning schedules from four days to three days per week. Matters Not on the Agenda: Councilmember Perrotto thanked the Administration for preparing a good budget. There being no further business, the Council adjourned at 9:52 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 NOVEMBER 8, 2010 VOL. 61 NO. 23 Regular meeting of the City Council of the City of Janesville held in the Municipal Building on November 8, 2010. The meeting was called to order by Council President Voskuil at 7:00 PM. Council President Voskuil led the Council in the Pledge of Allegiance. Present: Council President Voskuil, Councilmembers Brunner, McDonald, Perrotto, Rashkin, and Truman. Absent: Councilmember Steeber. CONSENT AGENDA Regular City Council meeting minutes of October 25, 2010. Special City Council meeting minutes of October 21, 2010. Licenses; and Recommendations of the Alcohol License Advisory. Council President Voskuil removed the Class B application from Voodoo Creations, LLC d/b/a Lava Cocktail Lounge from the Consent Agenda. She stated that all other items on the consent agenda would be approved as recommended, if there were no objections. There were none. Councilmember Truman moved to grant the Class B license to Voodoo Creations, LLC d/b/a Lava Cocktail Lounge contingent upon obtaining financing for the purchase of the building and that the building was brought up to code, seconded by Councilmember Perrotto. Councilmember Rashkin offered a friendly amendment to remove the financing stipulation which was not accepted by the maker. Councilmember McDonald moved to amend the motion by removing the contingency for financing, seconded by Councilmember Rashkin and passed by the following vote: Aye: Brunner, McDonald, Rashkin, and Voskuil. Nay: Perrotto and Truman. The motion, as amended, passed by the following vote: Aye: Brunner, McDonald, Rashkin, Truman, and Voskuil. Nay: Perrotto. Special recognition: Action on a proposed resolution in commendation of Larry Grorud’s thirty six years of service to the City of Janesville. Councilmember Brunner moved to adopt said resolution, seconded by Councilmember McDonald and passed unanimously. (File Res. No. 2010-748) OLD BUSINESS 1. Requests and comments from the public regarding items on the Agenda not requiring a public hearing. Andreah Briarmoon, 339 S. Locust St. opposed Community Development Block Grant (CDBG) funds being used for restoration of downtown buildings (New Business #1). Jeni Sauser, 228 S. Wisconsin St., and Deb Adams, 615 N. Waveland Rd., both representing the Downtown Development Alliance spoke in favor of CDBG funds being used to restore downtown. 2. The FY2011 proposed City and Library budgets received their public hearing. Jennifer Wenzel, 2502 Elizabeth St., Jeremiah Besley, 339 S. Division St., Jennifer Thompson, 1120 Terrace Ct., Thomas Meton, 100 N. Franklin St., #104, Kim Burkhalter, 1837 Alden Rd., Dave Hyde, 1315 Mineral Point Ave., and Andreah Briarmoon, 339 S. Locust St. spoke against the reduction in bus service. John Gorski, 402 E. Centerway stated that enforcing speeding laws would pay for additional buses and routes. Wayne Gessner, 75 S. Huron Dr., spoke against an increase in user fees for the Senior Center. Joe Panico, 2200 N. Sumac Dr., spoke against funding for leaf collection. The public hearing was continued until November 22, 2010. Councilmember Rashkin moved to increase aquatics funding by $6,000 to allow for each wading pool to stay open an additional hour seconded by Councilmember Truman and failed by the following vote: Aye: Rashkin. Nay: Brunner, Perrotto, McDonald, Truman and Voskuil. NEW BUSINESS 1. Action on a proposed resolution approving the 2011 Annual Action Plan for the Community Development Block Grant Program and Rock County HOME Consortium Submission. Councilmember McDonald moved to adopt said resolution, seconded by Councilmember Brunner and passed unanimously. (File Res. No. 2010-735) 2. Action on proposed resolutions extending the term of existing landfill contracts through December 31, 2011 and establishing pricing in 2011 for Town & Country Sanitation, Sherman Sanitation and Green County. Councilmember Perrotto moved to adopt said resolutions, seconded by Councilmember Rashkin and passed by the following vote: Aye: Brunner, Perrotto, Rashkin, Truman, and Voskuil. Nay: McDonald. (File Res. Nos. 2010-743, 2010-745, and 2010-746) 3. Action on a proposed resolution authorizing a 10 year special assessment payment plan for the property owner residing at 3129 E. Rotamer Rd. Councilmember McDonald moved to adopt said resolution, seconded by Councilmember Perrotto and passed unanimously. (File Res. No. 2010-750) 4. Update on the proposed Rock County Purchase of Agricultural Conservation Easements (PACE) Program. Council President Voskuil moved to support the City Manager’s recommendations on the PACE program, seconded by Councilmember Rashkin and passed by the following vote: Aye: Brunner, Perrotto, Rashkin, Truman and Voskuil. Nay: McDonald. 5. Action on a motion authorizing the City Manager to sell property located at 3123 Rockport Park Dr. Councilmember McDonald moved to authorize the City Manager to sell said property, seconded by Councilmember Perrotto and passed unanimously. 6. Action on a proposed resolution authorizing the sale of property located at 189 S. High St. as part of the Buy, Rehab and Resell Program. Councilmember Rashkin moved to adopt said resolution, seconded by Councilmember Truman and passed unanimously. (File Res. No. 2010-749) 7. Action on a proposed resolution authorizing the City Manager to make an application to the County for an exemption from the Library tax levy. Councilmember McDonald moved to adopt said resolution, seconded by Councilmember Rashkin and passed unanimously. (File Res. No. 2010-752) 8. A proposed ordinance attaching property located at 2609 S. U.S. Highway was introduced and scheduled for a public hearing on December 13, 2010. (File Ord. No. 2010-466) 9. A proposed ordinance attaching and zoning to B2 property located at 2609 S. U.S. Highway 51 was introduced, referred to Plan Commission, and scheduled for a public hearing on December 6, 2010. (File Ord. No. 2010-467) 10. Requests and comments from the public on matters which can be affected by Council action. Andreah Briarmoon, 339 S. Locust St. asked that the Council make it easier for people to appear before the Citizen’s Zoning Board of Appeals, change ordinances to allow leaf burning, and contract pool operations to private contractors. 11. Matters not on the Agenda. Councilmember Truman requested a second to put the skate park on a future agenda. Councilmember Rashkin seconded. Councilmember Truman also stated that he is concerned about cost of police calls at taverns and would like to use nuisance ordinances to recoup costs. Councilmember Rashkin asked for a presentation on diversity within the City and Citizen Committees. Councilmember Brunner recommended sanctions for troubled/problem alcohol locations and would also like to look at leaf collection in the future. Council President Voskuil reminded everyone that November 11, 2010 is Veteran’s Day and that everyone should thank a Veteran. 12. Councilmember Rashkin moved to convene into closed session, pursuant to Wisconsin Statute Section 19.85(1)(e), for the purpose of deliberating upon and setting the bargaining and negotiating strategies, terms, and conditions for a potential TIF 22 development agreement, since competitive and/or bargaining reasons require a closed session, seconded by Councilmember McDonald and passed unanimously. There being no further business, Council adjourned at 9:35 p.m. These minutes are not official until approved by the City Council. David T. Godek Deputy Clerk-Treasurer JANESVILLE CITY COUNCIL LICENSE AGENDA 11/22/2010 RECOMMENDED A. ELECTRICIANS–ORIGINAL Dennis M. Anderson W234 N2830 Paul Rd., Pewaukee, WI Stephen C. Arnoldussen 2602 American Dr., Appleton, WI Daniel R. Weaver 210 Kinsey Ct., Evansville, WI Community Development Department Memorandum November 22, 2010 TO: Janesville City Council FROM: Brad Schmidt, AICP, Associate Planner SUBJECT: Final CSM 10018-C, City of Janesville, 2 lots on Beloit Avenue SUMMARY The City of Janesville has requested the approval of an 11.73 acre, 2-lot Survey. Lot 1 of the Survey is to create a parcel for the construction of a business incubator. Lot 2 will remain undevelopable due to an existing stormwater detention pond located on the lot. The property is currently undeveloped and includes an existing stormwater detention pond. The subject property is zoned M1, Light Industrial District and located in TIF district 22. DEPARTMENT RECOMMENDATION The Plan Commission and Community Development Department recommend that the City Council support a motion to approve Final CSM 10018-C. ANALYSIS A. In 1999, the subject property was included in a two-lot survey of land (12.07 acres and 52.47 acres). Assessments for storm sewer, sidewalks and street light improvements were levied at that time. Therefore, assessments are not required for this Survey. B. The proposed lots comply with the Zoning and Subdivision Ordinance requirements. C. Two billboards are currently located on the survey and are identified as shown, including easements. D. Sidewalks assessments were previously collected from CSM 99019-C along Beloit Avenue frontage of lots 1 and 2 where they are planned. Sidewalks are not planned on Venture Drive or State Highway 11. A bike path is currently located along the south lot line adjacent to State Highway 11. E. The survey reflects existing easements located on the property. In addition, standard utility easements as requested by those companies having rights to serve the area have been placed on the survey. F. A portion of the existing stormwater pond is located on the southern part of Lot 1. This will affect proposed development of Lot 1, and a stormwater drainage easement encompasses that portion of Lot 1 where the pond exists. G. The future land use designation for this area is Light Industrial. This designation is consistent with the intended use of Lot 1 as a business incubator. PLAN COMMISSION ACTION – 15 NOVEMBER 2010 The Plan Commission unanimously agreed to forward Final CSM 10018-C to the City Council with a favorable recommendation. cc: Duane Cherek q Ô»¹»²¼ ÍËÞÖÛÝÌ Í×ÌÛ Ü¿¬»æ ïïñíñïð Ý×ÌÇ Ô×Ó×ÌÍ Í½¿´»æ ïþã èððù Ó¿° Ý±±®¼·²¿¬»æ Òóç ÔÑÝßÌ×ÑÒ ñ ÆÑÒ×ÒÙ ÓßÐ Ý×ÌÇ ÑÚ ÖßÒÛÍÊ×ÔÔÛ ÝÍÓ ïððïèóÝ ÓßÐ ï ÐÔßÒÒ×ÒÙ ÍÛÎÊ×ÝÛÍ ACCOUNTING DIVISION MEMORANDUM November 16, 2010 TO: City Council FROM: Patty Lynch, Comptroller SUBJECT: Financial Statement for the Month of October 2010 The City prepares its Financial Statements in accordance with generally accepted accounting principals using the modified accrual method of accounting and is audited annually by Baker Tilly Virchow Krause, LLP. We prepare interim financial statements for the Council’s review on a monthly basis. Division and Department Heads are responsible for monetary expenditures to ensure budget compliance. Revenues and expenditures are projected to year-end in June and September. Key operating funds include the General Fund, Water and Wastewater Utilities, and Sanitation Fund. A summary of their performance to budget, as compared to a three-year average, is presented in the following graphs. EXPENDITURE SUMMARY The graph below indicates expenditures are being made according to budget. Year-To-Date October ExpendituresCompared to Three-Year Average Current YTD 3 Yr. Avg. 90% 80% Percent of Total Budget 70% 60% 50% 40% 30% 20% 10% 0% General FundWater -Wastewater - OperatingOperatingSanitation REVENUE SUMMARY The graph below indicates revenue has been earned as anticipated for the General Fund and Wastewater Utility. The Water Utility sales revenue is under the budgeted level and the Sanitation fund continues to lag compared to the budget trends. October 2010 Financial Statement November 16, 2010 Page 2 Year-To-Date October RevenuesCompared to Three-Year Average Current YTD 3 Yr. Avg. 120% 100% Percent of Total Budget 80% 60% 40% 20% 0% General FundWaterWastewaterSanitation Other items of interest in the Financial Statement are as follows: Proprietary Funds (page 4)  The Stormwater Utility has a deficit operating cash balance of $436,717 at October 31, 2010. This is because revenue is billed on a quarterly basis (approximately $518,000) after expenditures have been made. Special Revenue Fund Balance (page 5)  TIF 3 has a positive balance of $236,984. The positive balance will be used to repay the general fund advance plus accrued interest.  At October 30, 2010, the TIF districts have a combined deficit fund balance of $981,349. However, TIF projections indicate the districts will reach a positive fund balance before they expire.  Landfill long-term care of site #3023 ($137,595) will be reimbursed by an insurance policy we have in place for post closure care. Capital Projects Fund (page 6)  The City incurred expenditures in conjunction with road projects on Highway 11 from Wright Road to Highway 14 ($186,799). These costs will be funded with future special assessments or General Obligation note issue. A representative of the Administrative Services Department will be available at the Council Meeting on November 22, 2010 to respond to any questions Council may have relative to these reports. Once Council is satisfied, acceptance of the Financial Statement by consent and placing them on file would be in order. /Attachments cc: Jacob J, Winzenz, Director of Administrative Services/Assistant City Manager October 2010 Financial Statement November 16, 2010 Page 3 Eric J. Levitt, City Manager ADMINISTRATIVE SERVICES MEMORANDUM November 15, 2010 TO: City Council FROM: Jacob J. Winzenz, Dir. of Administrative Services/Assistant City Manager SUBJECT: Continuation of Public Hearing and Action on 2011 Proposed City and Library Budgets Executive Summary The City Council has reviewed the 2011 budget at three budget study sessions and will hold two public hearings. The proposed 2011 Municipal Budget (General Fund and Library), has a .46% increase in total expenditures, a 2.30% increase in the tax levy, and a 1.64% increase in the gross tax rate. Recommendation The Administrative Services department recommends the City Council approve the proposed 2011 budgets. Suggested Motion(s)  Move to approve the 2011 proposed City Budget as revised by the City Council thru November 8, 2010, with a General Fund Budget in the amount of $41,598,244 and a tax levy (without TIF) in the amount of $25,437,644, and direct the Comptroller to include these amounts in the 2011 appropriation and levy resolutions.  Move to approve the 2011 proposed Hedberg Public Library budget with a tax levy (without TIF) in the amount of $3,207,919 for Library purposes, and direct the Comptroller to include this amount in the 2011 levy resolution.  Move to approve the 2011 Proposed Rent Assistance Budget. City Manager Recommendation The City Manager recommends approval. The General Fund Budget reflects a total budget that is $58,000 less than the 2009 budget. Although it was accomplished through the reduction or deferral of certain staff positions that will create more pressure on existing staff. Background The City General Fund budget incorporating the $0 of levy reductions made by the City Council during budget study sessions and council meetings and the Hedberg Public Library budget follows: Public Hearing on 2011 Proposed Budgets November 15, 2010 Page 2 2011 Proposed General Fund Budget $ Amount $Change % Change Operating Expenditures $36,615,160 $565,804 1.57% Debt Service 4,983,084 -385,559 % -7.18 Total Expenditures 41,598,244 180,245 0.44% Less: Non-Property Tax Revenue 15,260,600 -393,650 -2.51% Less: Applied Fund Balance 900,000 50,000 5.88% Tax Levy without TIF $25,437,644 $523,895 -2.10% Tax Levy with TIF $26,199,107 $587,882 2.30% Tax Rate with TIF $7.4358 $0.1201 1.64% 2011 Proposed Hedberg Public Library Budget $ Amount $ Change % Change Basic Operations $3,859,702 $20,657 0.54% Debt Service 241,086 7,934 3.40% Subtotal $4,100,788 $28,591 0.70% Less: Non-Property Tax Revenue 834,199 -46,186 -5.25% Less: Applied Fund Balance 58,670 8,670 17.34% Tax Levy without TIF $3,207,919 66,107 2.10% Tax Levy with TIF $3,303,946 $74,178 2.30% Tax Rate with TIF $0.9378 $0.0152 1.65% If the City Council accepts the proposed amended budget, the typical Janesville home assessed at $114,000 will pay $955 for Municipal (City and Library) services, or an increase of $16, or 1.7%. Based upon a projected all jurisdiction tax rate, the typical Janesville home assessed at $114,000 would pay $3,003, or an increase of $33, or 1.1% (without First Credit or Lottery Credit). The proposed General Fund Budget for 2011 is $623,825 under the Expenditure Restraint Program limits and $1,123,877 under state levy limits. Additional Information The following supporting documents are attached:  City Council Budget Adjustments (Attachment #1)  Assessment Value of Taxable Property (Attachment #2)  Ten-Month 2010 Revenue Summary (Attachment #3)  Estimated Distribution of Total Tax Rate Comparison (Attachment #4) Public Hearing on 2011 Proposed Budgets November 15, 2010 Page 3  Estimated Comparison of Gross Taxes Paid (Attachment #5)  Municipal Levy Assessed Tax Rate Analysis (Attachment #6)  Ten-Month 2010 Expenditure Summary (Attachment #7) The formal adoption of the appropriation/tax levy ordinance will occur at a special meeting to be scheduled by the Council President when we have the final school, lottery, and first credits. Staff suggests that this meeting be scheduled for Monday, November 29 at 7:00 A.M. or Tuesday, November 30 at 7:00 A.M. If the Council would like any additional information, please let me know. Cc: Eric J. Levitt, City Manager NEIGHBORHOOD SERVICES MEMORANDUM November 12, 2010 TO: City Council FROM: Jennifer Petruzzello, Neighborhood Services Director SUBJECT: Council Policy Statement #85 – Purchasing Property Summary The City of Janesville has undertaken an increased effort to acquire blighted properties in the downtown and older residential neighborhoods as part of a Neighborhood and Downtown Blight Elimination Program. It is beneficial to establish a Council policy for this program to facilitate the purchase of these properties in a manner that is efficient and maximizes the City’s ability to negotiate a fair purchase price for these properties. Staff Recommendation Staff is recommending that the City Council consider a policy which establishes a two tiered approach to the process of acquiring properties. For properties that will not exceed a purchase price of $40,000 for a single-family home or $60,000 for a multi-family home, staff will be authorized to consider properties that meet the goals of the Neighborhood and Downtown Blight Elimination Program and make an offer to purchase contingent upon: an appraisal documenting that the purchase price not exceed the appraised value (not required if anticipated to be less than $25,000), review and approval of the Janesville Plan Commission in open session, and review and approval of the Common Council in open session. For properties that will or may exceed a purchase price of $40,000 for a single- family home or $60,000 for a multi-family home, staff will present a preliminary review to the Common Council in Closed session prior to making an offer to purchase. The Common Council would then direct the staff on how to proceed on the potential purchase of property. If authorized by the Council, offers to purchase would include the same contingencies as above. If an accepted offer is reached, the item will be forwarded to the Janesville Plan Commission for their review and approval in open session, and to the Common Council for their final approval or denial of the purchase of property. In considering whether the potential property meets the goals of the Neighborhood and Downtown Blight Elimination Program, staff will consider the following: 1) The impact of the project upon the community and neighborhood; 2) The current condition, assessed value, and fair market value of the property and improvements; 1 3) The relationship to the City of Janesville Comprehensive Plan, the Look West, and Old Fourth Ward Neighborhood Revitalization Plan, and the Downtown Vision and Strategy Plan; 4) The anticipated costs of purchasing the property; 5) The options for re-use of the property; 6) The anticipated costs of preparing the land for redevelopment purposes; 7) The identification of relocation needs; and Additional consideration may be given to vacant and/or foreclosed properties that fall within the guidelines of the Neighborhood Stabilization Program. These considerations include property that is located within census tracts 3, 4, 6 or 10. (Including the Historic Fourth Ward and Look West Neighborhoods, the area directly east and south of the General Motors Plant, and the area to the north of the downtown; property located within one of two redevelopment sites as th identified in the City of Janesville’s Look West and Old 4 Ward Neighborhood Revitalization Plan; property located along collector, major arterial streets, or minor arterial streets; property located near schools or parks; property identified th as poor or fair condition on the 4 Ward and Look West Housing Condition Report (or of similar condition for census tracts 6 & 10. City Manager Recommendation The City Manager recommends approval. Suggested Motion I move to approve City Council Policy Statement #85 establishing a procedure for purchasing property funded under the Neighborhood and Downtown Blight Elimination Program. Background The elimination of blighted properties within the downtown and older residential neighborhoods has been identified as a priority through recent planning efforts, including the Janesville Comprehensive Plan, the Downtown Vision and Strategy Plan, the Look West and Old Fourth Ward Neighborhood Revitalization Plan, and the 2010-2014 Consolidated Planning Process. The City Council has provided funding for the acquisition and demolition of blighted properties through the 2009 note issue ($500,000) and 2010 note issue ($200,000). Additional funding is anticipated to be considered as part of the 2011 note issue as well. To date, seven (7) residential properties and seven (7) vacant lots have been purchased under this program and funding source. Properties acquired under this funding source included: 321 E. Court St., ½ of 1110 Hamilton Street, seven (7) lots in the Hickory Ridge Subdivision, 1332 Hawthorne Avenue, 404-406 2 Johnson St., 176 Lincoln, 903 McKinley, and 907 McKinley Street. The average purchase price for the residential properties is $19,261, with a range from $5,000 to $30,000. The current acquisition process involves staffpresenting a preliminary review to the Common Council in closed session prior to making an offer to purchase. The Common Council directs staff on how to proceed on the potential purchase of property. If authorized by the Council, offers to purchase include contingencies related to appraisal, Plan Commission and City Council approval. If negotiation is successful, the item is forwarded to the Janesville Plan Commission for their review and approval in open session, and to the Common Council for their final approval or denial of the purchase of property. The current process results in a range from 18-29 days between when staff first views the property and when a conditional offer may be made. The length of time from initial viewing to successfully closing on a property averages 10 weeks. When a property acquisition is scheduled for review in Closed Session, the agenda listing must include the property address. Following the last two Council Closed Session meetings to discuss the potential purchase of property, an investor has made an offer on the property within 24-48 hours of the Council meeting. This resulted in a multiple offer situation, where the seller calls for final and best offers. In both instances, the seller selected the alternative offer. (Although, the City ultimately purchased the first property after the alternative buyer’s deal fell through.) While it cannot be stated with certainty that the City’s disclosure of property address and/or the additional time between viewing and Council approval resulted in the subsequent offer, the City’s ability to negotiate the lowest acceptable purchase price was hindered by the multiple offer process. Under this program, staff has focused our attention on housing that is blighted and unsafe and that may have a positive impact on the surrounding area if removed. Our recent experience indicates that many residential properties of this nature are being bought and used as rental properties with no improvements or minimal improvement being made to the properties. Janesville does not currently have a shortage of affordable housing (we are hearing of a 15% vacancy rate); although it is arguable that we are experiencing a shortage of quality affordable housing. This process would be similar to the acquisition process that Neighborhood Services uses to purchase property through the Neighborhood Stabilization Program. By allowing Neighborhood Services to begin preliminary negotiations on properties we would anticipate the greater likelihood of obtaining accepted offers at a lower cost. All acquisitions would still require approval by the Plan Commission and the City Council prior to closing. 3 Analysis Potential advantages to approving the proposed Council Policy Statement include:  Increased likelihood of acquiring blighted and/or substandard housing and properties by decreasing the time period for other purchasers to submit offers. The time period between viewing a property and making an offer would be reduced by a minimum of 2 weeks.  Increased likelihood of acquiring properties at a reduced purchase price by reducing the likelihood of encountering multiple offers.  All purchases over $25,000 would be supported by a property appraisal documenting that the purchase price does not exceed market value.  The suggested limit of $40,000 for a single family unit and $60,000 for a multi-family unit is greater than the current average and allows this policy to remain effective for a time period after housing values begin to grow.  More efficient program administration and quicker approval process. Program administration includes reduced time spent viewing and considering properties that we are unsuccessful in purchasing, reduced time spent preparing agenda items for properties that we are unsuccessful in purchasing, reduced agenda coordination and City Council review time. Potential disadvantages to approving the proposed Council Policy Statement include:  The City Council would forgo its opportunity to discuss further negotiating strategy on a property by property basis in closed session. However, eliminating the closed session does not commit the City Council to purchase a property at a staff negotiated price because the offer will be contingent upon Plan Commission and City Council Approval.  The Plan Commission may be asked to review a property for consistency with City plans in which the City Council is not interested in pursuing.  Increased likelihood of acquiring properties at a reduced purchase price by reducing the likelihood of encountering multiple offers. Attachments: Council Policy Statement #85 cc: Eric Levitt, City Manager Jay Winzenz, Assistant City Manager and Dir of Administrative Services 4 CITY OF JANESVILLE Policy No. 85 Page 1 of 3 CITY COUNCIL POLICY STATEMENT Date Issued / /10 General Subject: Administration Effective Date / /10 Special Subject: Neighborhood and Cancellation Date Downtown Blight Elimination Property Acquisitions Supersedes No. PURPOSE To establish a procedure for purchasing property funded under the Neighborhood and Downtown Blight Elimination Programs. STATEMENT OF POLICY The following procedure shall be utilized to evaluate and acquire properties for potential City purchase: 1.Neighborhood Services Department and/or other staff as designated by the City Manager shall identify properties within the downtown and older residential neighborhoods for potential purchase under the Neighborhood and Downtown Blight Elimination Programs. 2.Neighborhood Services Department or other staff shall evaluate properties against the following criteria: 1) the impact of the project upon the community and neighborhood; 2) the current condition, assessed value, and fair market value of the property and improvements; 3) the relationship to the City of Janesville Comprehensive Plan, the Look West, and Old Fourth Ward Neighborhood Revitalization Plan, and the Downtown Vision and Strategy Plan; 4) anticipated costs of purchasing the property; 5) options for the re-use of the property; 6) anticipated costs of preparing the land for redevelopment purposes; and 7) identification of relocation needs. 3.If Neighborhood Services Department and/or other designated staff determines that the offer to purchase a property will not exceed $40,000 for a single-family home or $60,000 for a multi-family home, staff may make an offer to purchase with the following contingencies: a. The completion of an appraisal documenting that the purchase price does not exceed the appraised value if the offer is in excess of $25,000; and b. Review and approval of the Janesville Plan Commission in open session; and c. Review and approval of the Common Council in open session. 4.If Neighborhood Services Department and/or other designated staff CITY OF JANESVILLE Policy No. 85 Page 2 of 3 CITY COUNCIL POLICY STATEMENT Date Issued / /10 General Subject: Administration Effective Date / /10 Special Subject: Neighborhood and Cancellation Date Downtown Blight Elimination Property Acquisitions Supersedes No. determines that the offer to purchase property will or might exceed $40,000 for a single-family home or $60,000 for a multi-family home, a preliminary review by the Common Council of the proposed purchase shall take place in closed session, pursuant to Section 19.85 (1)(e) of Wisconsin State Statutes. 5.The Common Council shall consider the staff’s report and evaluate: 1) the impact of the project upon the community and neighborhood; 2) the current condition, assessed value, and fair market value of the property and improvements; 3) the relationship to the City of Janesville Comprehensive Plan, the Look West, and Old Fourth Ward Neighborhood Revitalization Plan, and the Downtown Vision and Strategy Plan; 4) anticipated costs of purchasing the property; 5) options for re-use of the property; 6) anticipated costs of preparing the land for redevelopment purposes; and 7) identification of relocation needs. 6.The Common Council shall direct the staff on how to proceed on the potential purchase of a property. If authorized by the Common Council, staff will enter into negotiations for the purchase of the property in strict accord with the directions and negotiating terms, conditions, and parameters. 7.An offer to purchase shall include the following contingencies: a. The completion of an appraisal documenting that the purchase price does not exceed the appraised value if the offer is in excess of $25,000; and b. Review and approval of the Janesville Plan Commission in open session; and c. Review and approval of the Common Council in open session; and 8.If agreement is reached, the matter will be placed on a subsequent agenda for a Plan Commission meeting. The Plan Commission review of the project shall be in conformance with Section 62.23 (5) of Wisconsin State Statutes. It is the responsibility of the Plan Commission to evaluate the project for its conformance with the City’s Comprehensive Plan, other adopted plans, and appropriate use. CITY OF JANESVILLE Policy No. 85 Page 3 of 3 CITY COUNCIL POLICY STATEMENT Date Issued / /10 General Subject: Administration Effective Date / /10 Special Subject: Neighborhood and Cancellation Date Downtown Blight Elimination Property Acquisitions Supersedes No. 9.The final review and action by the Common Council of the proposed purchase of property shall take place in an open session. The Council will consider the proposed project, including the financial aspects of the decision, and the recommendation of the Plan Commission. By motion, the Council shall approve or disapprove the proposed purchase of property. 10.The Neighborhood Services Department and/or other designated staff shall implement the action authorized by the City Council. Economic Development Department Memorandum November 15, 2010 TO: City Council FROM: Vic Grassman, Economic Development Director SUBJECT: Action on a Proposed Resolution Authorizing a TIF Development Agreement with Wright Road Property Group LLC and 3700 Racine Street LLC for the Home Health United, Inc. Project (File Res. 2010-753) Executive Summary SARA Investment Real Estate (SARA), D/B/A Wright Road Property Group LLC and 3700 Racine Street LLC, is in the process of completing construction plans for a new building to serve Home Health United, a home health care equipment supplier. The new building is to be located at the southeast corner of Racine St. and Wright Rd. In order to develop the site, there is need for extension of watermain and sanitary sewer along with roadway improvements along Wright Rd. to provide appropriate turn and deceleration lanes for the development driveway. The watermain for the new building will be constructed along the south side of Racine St. extending easterly from Wright Rd. It is important to note that when considering the design for the water main extension, staff noted that the water distribution network along Racine St would be significantly benefited by continuing the SARA extension to the existing watermain at Racine St and Wuthering Hills Dr. Extending this watermain would provide construction cost efficiencies, and provide improved redundancy and reliability, not only for the SARA building, but also for the St. Mary’s/Dean campus to the west as well as the industrial park to the north of Racine St. from the interstate to Highway 14. City Manager’s Recommendation: The City Manager recommends approval. Economic Development Director’s Recommendation Staff recommends that SARA Investments be granted a ten year payback period for the extension of watermain and sanitary sewer along with road improvements instead of the normal five year period. This is based on the following:  SARA Investment is allowing the City to extend the water distribution network not only for their present project as noted above but for the entire length of their, yet undeveloped, land holdings bordering Racine St. from Wright Rd. to Wuthering Hills Dr. This would also allow the City to have a redundant water system to support St. Mary’s/Dean Care and the industrial park to the north of Racine St.  Funds from TIF 32 will be used to pay for this project. Under city policy, the use of TIF funding allows for a ten year payback period.  SARA Investments has/is the primary developer in Janesville and has investments in a variety of projects located throughout the city. Our typical term for the use of TIF funds in these projects has been ten years. This request is consistent with our other financial contracts with SARA and would continue to support our partnership with SARA in a fair manner. Background The following is a summary of the public infrastructure costs for SARA: Improvement Cost Sanitary Sewer $47,182 Watermain $68,135 Roadway Improvements $194,580 Total $309,897 Note: The watermain improvement cost above includes not only the 193ft adjacent and directly attributable to the Home Health United Development but also the 863ft of remaining SARA property to the east thereof for which there are no current developments projects under consideration. TIF Status TIF 32 has a current increment of approximately $28,000.This does not reflect the new increments that would be added from such projects as Blaine Farm and Fleet, St. Mary’s /Dean Care or the SARA project. In addition, because of the benefits of these improvements provided to the industrial park to the north of Racine St. a contribution from TIF 14 could be appropriate as well. TIF 14 currently has a positive balance of as of 2010 of approximately $1.0 million cc: Eric Levitt Jacob Winzenz Carl Weber Resolution No. 2010-753 A Resolution Approving a TIF 32 Development & Loan Agreement and Promissory Note For $258,148 With Wright Road Property Group LLC and 3700 Racine Street LLC (Collectively, though more than one, the “Promissors”) Home Health United, Inc. Project nd WHEREAS, the Common Council of the City of Janesville, on the 22 day of September, 2008, created Tax Incremental Finance District No. 32 for 21 years and adopted the initial Project Plan in accord with Wisconsin’s Tax Increment Financing Laws, Wis. Stats. Sec. 66.1105 and other applicable statutes, as from time to time amended or renumbered in order to stimulate the development and redevelopment of certain mixed use commercial and industrially zoned properties; retain and increase employment at that location; construct, renovate and expand commercial and/or industrial facilities; develop the public infrastructure serving those properties and TIF 32, and otherwise provide for and facilitate the overall economic health, welfare, vitality, and good of the community; and WHEREAS, the Project Plan for TIF District 32 includes industrial and manufacturing development and redevelopment, improvements, facility construction, expansion, and renovation, job retention and creation, and related financing, incentives, payments, loans, and actions that effectuate and/or facilitate these public purposes and goals; and WHEREAS, Wright Road Property Group LLC (“Wright”) and 3700 Racine Street LLC (“3700”) are two separate Wisconsin limited liability companies affiliated with Sara Investment Real Estate LLC (“Sara”) which is a local major developer that desires to, promises to, and shall, through Wright, lease to Home Health United, Inc. (“HHU”), its prospective tenant, a new commercial structure in TIF 32 that Wright shall cause to be constructed. HHU will transfer its existing operations to such new commercial structure in TIF 32 and shall thus maintain not less than twenty (20) existing jobs in the City of Janesville; and WHEREAS, Wright and 3700 shall jointly and severally promise to and shall repay to the City of Janesville (“CITY”) the $258,148 in principal and 6% annual interest on the unpaid balance in the annual amounts, and otherwise perform in accord with, the a certain TIF Development & Loan Agreement and Promissory Note, the terms, conditions, promises, and provisions of which are reiterated and incorporated herein by reference as if fully set forth verbatim; and WHEREAS, there are currently sufficient positive fund balances in the TIF District 32 improvement and overall project accounts, and these expenditures fall within the allowable time and scope for said Development and Loan Agreement and Promissory Note expenditures with additional general fund financing for economic development, loans and purposes; and WHEREAS, no Plan Commission review or recommendation was necessary for this particular Development Agreement since it does not involve the purchase or conveyance of real property by the CITY; and 1 WHEREAS, the Common Council hereby find that the City Administration has negotiated the TIF Development & Loan Agreement and Promissory Notes with Wright and 3700 upon terms, conditions, promises, obligations, provisions, and purposes, consistent with the best interest of and benefit to the City, all applicable laws, and Common Council industrial and economic development policies, goals, objectives, and directives; and WHEREAS, the district is zoned B3 mixed use commercial and light industrial and manufacturing; and WHEREAS, Sections 66.1105 and 66.1101 of the Wisconsin Statutes authorize cities to utilize tax increment financing to promote industry and implement economic development projects; and WHEREAS, Sections 62.11(5), 62.32, 66.0101, and other provisions of the Wisconsin Statutes authorize various land transactions, business, and activities of the Common Council for the public good; and WHEREAS, the Common Council has authorized the use of Tax Increment Financing Districts for industrial site development and TIF Development agreements when the Council adopted th amended Council Policy Statement No. 61 (Economic Development Policy) on the 13 day of June, 1994; and NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Janesville that: 1. Each and every of the above recitals are reiterated and incorporated herein by reference as if fully set forth verbatim; and 2. The above described Wright and 3700 TIF 32 Development & Loan Agreement and Promissory Notes are also reiterated and incorporated herein by reference as if fully set forth verbatim; and 3. The Wright and 3700 TIF 32 Development & Loan Agreement and Promissory Notes, and all expenditures, terms, conditions, promises, obligations, performance, conditions, and provisions set forth therein are hereby found to be in the best interest of, and for the benefit of, the City, and, therefore, are hereby both authorized and approved; and 4. The City Manager and/or his designee(s) is/are hereby authorized to execute, enter into, and effectuate the Wright and 3700 TIF 32 Development & Loan Agreement and Promissory Note with Wright and 3700 on behalf of the City of Janesville; and 2 BE IT FURTHER RESOLVED, that the City Manager and/or his designee(s), on behalf of the City of Janesville, is/are hereby authorized to administratively negotiate, draft, execute, review, enter in, modify, amend, record, file, and otherwise effectuate the above agreements and promissory note, and/or to make and enter into any and all other agreements, contracts, documents, papers, and forms, and/or to take whatever other actions that the City Manager and/or his designee(s) may, from time to time and at any time, determine necessary and/or desirable to effectuate the above transactions, agreements, above intent, and/or purposes of this Resolution. 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: Wald Klimczyk, City Attorney Proposed by: Economic Development Director Vic Grassman Prepared by: City Attorney Wald Klimczyk 3 TIF Development Loan Agreement and Promissory Note By and Between City of Janesville (“Lender” or “City”) And Wright Road Property Group LLC and 3700 Racine Street LLC (Collectively, though more than one, the “Promissors”) PurposeCITYPromissors : The TIF Development Loan from the to is being made under the provisions of Wisconsin’s TIF Law (ss 66.1105), as a necessary project element and cost according to the terms, provisions, and promises set forth in this TIF Development Agreement and Promissory Note for this Development Project Located in Janesville TIF District No. 32 (the “AGREEMENT”) by and between the City the Promissors, the terms, conditions and provisions of which are incorporated herein by reference as if fully set forth verbatim. Loan Amount : Two hundred fifty eight thousand one hundred forty-eight and 00/100 Dollars ($258,148.00) Loan Purpose : To finance the cost of public infrastructure improvements and related expenses to (i) support the creation of the new business location for Home Health United, Janesville, WI on land owned by Wright Road Property Group LLC and (ii) to support the future development of land owned by 3700 Racine Street LLC. Loan Term : 10 years Interest Rate : 6.00% Annual Debt Service : $35,074.04 (this amount includes the annual installment principal and interest payment). The annual debt service of these assessment costs shall be placed on the property tax bill for the land owned by the Promissors with the first installment due in January Promissors 2012. agree to and shall pay all annual debt service (as described and calculated CITY above) due to the within thirty (30) days of its receipt of the annual debt service payment CITY invoice from the . The Promissors shall be jointly and severally liable for all payments due and owing under this Agreement but may, among themselves, separately agree upon the allocation of such payments. Description of Development : This TIF Development Loan Agreement and Promissory Note, made and entered into for the good and valuable consideration set forth herein and otherwise, sufficiency of which is hereby acknowledged, is intended to describe the various points of agreement regarding the proposed development of certain lands by the Promissors as follows: A. Wright Road Property Group LLC owns that certain real property located at the southeast corner of the intersection of Racine Street and South Wright Road, in the City of Janesville, 1 Rock County, Wisconsin (the “WRPC Parcel”), which WRPC Parcel is described as follows: Lot 1 of a Certified Survey Map recorded in Vol. 34 of Certified Survey Maps on Pages 15, 16, 17, 18 and 19 as Document No. 1901114 being a Certified Survey Map of Lot 1 of Certified Survey Map Document No. 1848111 as recorded in Vol. 32 on Pages 308 through 311 of Certified Survey Maps being situated in part of the NW 1/4 of the NW 1/4 of Section 4, T.2N., R.13E., City of Janesville, County of Rock, State of Wisconsin. B. 3700 Racine Street LLC owns that certain real property located at the east of and adjacent to the WRPC Parcel, in the City of Janesville, Rock County, Wisconsin (the “3700 Parcel”), which 3700 Parcel is described as follows: Lot 2 of a Certified Survey Map recorded in Vol. 34 of Certified Survey Maps on Pages 15, 16, 17, 18 and 19 as Document No. 1901114 being a Certified Survey Map of Lot 1 of Certified Survey Map Document No. 1848111 as recorded in Vol. 32 on Pages 308 through 311 of Certified Survey Maps being situated in part of the NW 1/4 of the NW 1/4 of Section 4, T.2N., R.13E., City of Janesville, County of Rock, State of Wisconsin. C. Wright Road Property Group LLC intends to construct a single story building on the WRPC Parcel which it will lease to Home Health United (the “WRPC Development”). Upon the date of execution of this Agreement 3700 Racine Street LLC does not have specific plans to develop the 3700 Parcel. The improvements contemplated by this Agreement will benefit the future development of the 3700 Parcel. POINTS OF AGREEMENT AND UNDERSTANDING  The Promissors have provided a final Certified Survey Map dated August 12, 2010 for the site. This will be used by the City as the basis for design of all public improvements to support the WRPC Development.  City agrees to prepare construction documents, administer the contract for, and manage the construction of all public utility and traffic improvements to support the WRPC Development.  The Promissors agree to pay their prorated share of the costs for all utility improvements associated with the WRPC Development based on the actual contract cost plus 20% for Engineering and Administrative services, in addition to any direct costs for materials provided by the City and the City of Janesville Water and Wastewater Utilities. The total cost is currently estimated to be One hundred fifteen thousand three hundred eighteen and 00/100 Dollars ($115,318.00) for the water and sewer utility components. The Promissors also agree to pay any additional costs that may arise from unforeseen conditions that increase the City’s cost for completion of the construction of improvements to support the WRPC Development.  The Promissors agree to pay the costs for all traffic improvement associated with the WRPC Development based on the actual contract cost plus 20% for Engineering and Administrative services, in addition to any direct costs for materials provided by the City of Janesville. The total cost is currently estimated to be One hundred forty two thousand eight hundred thirty and 00/100 Dollars ($142,830.00) for the traffic component. The Promissors also agree to pay any 2 additional costs which may arise from unforeseen conditions that increase the City’s cost for completion of construction of improvements to support the WRPC Development.  The City agrees to allow the Promissors to pay these costs as part of a ten (10) year installment payment plan with annual simple interest at the rate of six percent (6%) on the unpaid balance. The assessment costs shall be placed upon the Promissors’ real property tax bill with the first installment due and payable in January 2012.  The Promissors agree to be responsible for a pro-rated share of the costs associated with additional required traffic improvements including a round-about on Wright Road at the entrance to the WRPC Development should those improvements become necessary as a result of the WRPC Development and/or the future development of the 3700 Parcel generating excess traffic. Costs associated with those improvements shall be separate and additional to those set forth above. The CITY and Promissors do hereby agree to carry out the provisions defined by this TIF Development Loan Agreement and Promissory Note. Sale of Janesville property If, for any reason, Wright Road Property Group LLC elects to and/or does sell, alienate, hypothecate, or in any manner convey (but not including any mortgage loan) the WRPC Parcel, then the entire unpaid principal and interest balance of the TIF Development Loan and Promissory Note and all accrued and unpaid interest thereon shall immediately become due and payable in full to the City. The due on sale clause shall not apply to the granting of the construction mortgage on the WRPC Parcel or the refinancing thereof. Purpose of Agreement : This Agreement is for a site located in City of Janesville TIF District No. 32 and will be used by the Promissorsfor the expansions and development described herein. The WRPC Development will provide, foster, and encourage additional employment; expand the tax base; enhance the health, welfare, and benefit of the City; and add significantly to the aesthetic nature and character of this portion of the City of Janesville. Wright Road Property Group LLC has entered into a 10-year lease with Home Health United to occupy 100% of the WRPC Development. Home Health United will transfer its existing operations to the WRPC Development and shall retain approximately twenty (20) existing jobs in the City of Janesville. To these legitimate ends and purposes the Promissors are hereby entering into this Agreement CITY with the in order to expand and rehabilitate the WRPC Parcel. The planned WRPC CITY Development is consistent with such overall and particular plans and will produce revenues to the City through increased equalized value of real and personal property, tax increments, tax payments, and/or tax equivalence payments sufficient and required under this CITY Agreement to repay certain TIF expenditures and related costs and expenses within proposed TIF District No. 14. Said arrangement is to the benefit of the Promissors as the terms of this Agreement and related business factors evince. CITY By approving and entering into this Agreement, the governing body of the finds the Agreement and project each in the best interest of the city and of benefit to the community. The further purpose of this Agreement is to facilitate the renovation and improvement of the 3 WRPC Development on the WRPC Parcel, which shall more than adequately meet and greatly CITY facilitate the intent and goals of the and its land use and development plans for proposed CITY TIF District No. 32. The Promissors acknowledge that the is only able to finance the cost and expense of the contemplated transactions through the TIF District 32 Project Plan pursuant CITY to applicable Wisconsin laws and statutes which enable the to receive and utilize specially designated and directed future real and personal property tax revenues from the WRPC Parcel and 3700 Parcel as generated by the WRPC Development (and any future development of the 3700 Parcel) thereon which increase the overall equalized value of TIF District No. 32. CITY Further, by law, the must use such increased incremental tax revenues generated by such development project(s) located within TIF District No. 32 to repay its TIF District development, related costs and expenses. But for the Promissors’ promises and agreements herein and CITYCITY representations herein and otherwise, the would not enter into this Agreement. The relies and relied upon such representations, promises and agreements of the Promissors for all of CITY’s the purposes arising from and/or pertaining to this Agreement and the WRPC Development. In consideration of the Promissors’ covenant to complete the WRPC Development on the WRPC CITY Parcel, promises, Promissory Note to the , and performance by the Promissorsof each and Agreement every of their joint and several other obligations set forth in this the City enters into this Loan. A.As to the performance of this Agreement and each obligation herein, in the event that CITY the is delayed for any reason in performing any of its promises as set forth in this Agreement performance by the Promissors shall not be delayed. CITY B.The agrees to execute and deliver such other documents as counsel for the PROMISSORS may reasonably request to consummate the transaction contemplated herein. C.This Agreement constitutes the entire Agreement between the parties and no modification shall be binding unless amended and agreed to in writing and signed by the affected parties. PROMISSORS D.The , by signing below acknowledges having read, fully understanding, and having personally received a copy of this Agreement. CITY E.This Agreement is not binding upon the until such time as the Common Council for the City of Janesville lawfully approves this Agreement and authorizes CITY and empowers the City Manager and such others of the necessary to execute CITY this Agreement on behalf of the . Execution of this Agreement by the City CITY’s Manager or others on the behalf is evidence of such authorization. F.This Agreement shall remain in full force and effect until such time as each and every PROMISSORS of the obligations of the has been fully satisfied and discharged, whichever shall occur last. 4 G.All rights and remedies in this Agreement for each party are cumulative and in addition to any and all others in law and equity. H.Any notice which is required in connection with this Agreement shall be mailed, certified mail with return receipt requested, or delivered by nationally recognized CITY overnight carrier, or hand delivered, if to the : CITY If to the : Eric J. Levitt, City Manager Municipal Building 18 North Jackson Street Janesville, WI 53545 Promissors If to the : Wright Road Property Group LLC And/or 3700 Racine Street LLC c/o Sara Investment Real Estate LLC 6250 Nesbitt Road, Suite 500 Madison, WI 53719 Person or place of notice may be changed from time to time by any party notifying the other in writing duly served of the change. I.3700 Racine Street LLC and Wright Road Property Group LLC are jointly and severally parties to this Agreement and Promissory Note, and are jointly and severally responsible and liable to the City for payment of the annual repayment installments set forth herein, both hereby acknowledging the good and valuable consideration set forth herein and benefit to each separately arising and deriving from this Agreement and Note. J.This is a guarantee of payment and performance and not of collection. The obligation(s) of 3700 Racine Street LLC, and Wright Road Property Group LLC under this Agreement shall be absolute and unconditional, and shall remain in full force and effect until the defaulted, breached, and/or failed payment(s) and/or performance occurs(s) to the satisfaction of the Lender, City, and 3700 Racine Street LLC and Wright Road Property Group LLC, jointly and severally promise payment, which payments and/or performance shall not be affected, modified or impaired upon the happening from time to time of any event, including without limitation any of the following, whether or not with notice to, or the consent of 3700 Racine Street LLC and Wright Road Property Group LLC: a.The compromise, settlement, release or termination of any or all of the performances, payments, promises, obligations, provisions and/or covenants of the Promissory Note, or any of its successors or assigns, under the Agreement; b.The failure to give notice to any party of the occurrence of an event of breach, default and/or failure under the terms and provisions of the Promissory Note or the Agreement; 5 c.The waiver by the City of any of the performances, payments, promises, obligations, provisions and/or covenants of the Promissors or any of its successors or assigns, under the Agreement; d.The City’s grant of any extension of the time for payment or any principal of or interest on ay payment(s) and/or other performance(s) under the Agreement as amended, or any other guarantee of the payment(s) and./or of the time for performance of any other performances, payments, promises, obligations, provisions and/or covenants of the Promissors, or any of its successors or assigns, under the Agreement, as amended or any extension modification or renewal of any thereof, if any; e.The modification or amendment (whether material or otherwise) of any of the performances, payments, promises, obligations, provisions and/or covenants of the Promissors, or any of its successors or assigns, set forth in the Agreement, as amended, if any, or this Agreement; f.The taking or the omission of any of the actions referred to in the Agreement, as amended, if any, or this Agreement; g.Any failure, omission, delay or lack of diligence on the part of the City to enforce, assert or exercise any right, power or remedy conferred on the Seller in this Agreement as amended, or any other act or acts on the part of the City, from time to time; h.To the extent permitted by law, the release or discharge of 3700 Racine Street LLC and/or Wright Road Property Group LLC from the performance or observance of any performance, payment, promise, obligation, provision and/or covenant of the Promissors, or any of its successors or assigns, under the Agreement, as amended, if any, by operation of law or otherwise; i.The default or failure of any party fully to perform any of its promises and/or obligations set forth in this Agreement. K.No set-off, counterclaim, reduction, or diminution of any obligate or any defense of any kind or nature which any party has or may have against the City shall be available hereunder to any party against the City. Agreed to this _____ day of ____________________, 2010. Wright Road Property Group LLC ____________________________________________ By (print): Eric M. Schwartz Title: Manager 3700 Racine Street LLC ____________________________________________ By (print): Eric M. Schwartz Title: Managing Member of Racine Street Property Investors LLC, the sole member of 6 3700 Racine Street LLC Agreed to this _____ day of ____________________, 2010. CITY OF JANESVILLE ____________________________________________ By (print): Eric. J. Levitt Title: City Manager ____________________________________________ By (print): Jean Ann Wulf Title: City Clerk-Treasurer Developers Agreement SARA Investments No 2 2010 (6).doc 7 CITY OF JANESVILLE CITY ATTORNEY’S OFFICE November 17, 2010 MEMORANDUM TO: Common Council FROM: Wald Klimczyk, City Attorney RE: 189 South High Street – Sale Authorization Reconsideration of Adopted File Res. No. 2010-749 After introduction by the Council President, a Council Member who voted on the prevailing side when previously adopting the resolution may say: I move that the Council reconsider previously adopted Council File Resolution No. 2010-749 that authorized the sale of 189 South High Street. Any Council Member may second. The Council then votes. Reconsideration takes five (5) affirmative votes of the entire Common Council regardless of the quorum present for the meeting. The Janesville Common Council has a special Rule governing reconsideration that overrides Robert’s Rules of Order. See JGO 2.04.130A. The Council could then debate the merits of reconsideration. The Council would then vote. If reconsidered, then File Resolution No. 2010 -749, the next new business agenda item, would come before the Council. That Resolution would be considered as if for the first time. The Council could adopt it again unchanged, adopted Revised File Resolution No. 2010-749 as its replacement, or amend it however the Council may decide. Adoption at this point would require only four (4) affirmative votes of the Common Council, as would most other resolutions and ordinances, pursuant to Wis. Stats. §64.07(3) since no other statute or ordinance requires a greater vote. “64.07(3) A majority of the members of the council shall constitute a quorum, and a majority vote of all the members of the council shall be necessary to adopt any ordinance or resolution.” [Majority of 7 = 4). Eric Levitt, City Manager NEIGHBORHOOD SERVICES MEMORANDUM November 16, 2010 TO: City Council FROM: Kelly Lee, Neighborhood Development Specialist Jennifer Petruzzello, Neighborhood Services Director SUBJECT: Reconsideration of Resolution 2010-749 and Action on Proposed Resolution Authorizing to the City Manager to Sell Property Located at 189 South High Street as Part of the Buy Rehab and Resell Project (File Revised Res. 2010-749) Summary On November 8, 2010 the City Council approved file resolution #2010-749, authorizing the City Manager to proceed with the sale of property located at 189 South High Street. This resolution included a provision that the property remain an owner occupied dwelling until such time as the Community Development Authority and the City Council remove the requirement following a request by the property owner. The accepted offer to purchase the home included language that this requirement would be met through a deed restriction. Upon receiving the deed restriction language, the lender was unsuccessful in securing investor approval of the provision. This appears to be an industry-wide issue with the current lending climate. Staff is proposing that the Council consider revised resolution 2010-749, which replaces the original owner occupied requirement, with language that would allow the City of Janesville to have a “First Right of Refusal” to purchase the property. Department Recommendation The Neighborhood Services Department recommends that the City Council support a motion to reconsider Resolution #2010-749 and approve revised Resolution #2010-749 authorizing the sale of the property located at 189 South High Street at a sale price of $95,000.00. This revised resolution replaces the requirement that the property remain owner occupied until CDA and Council agree otherwise with a first right of refusal. Under the first right of refusal, the City Council could facilitate the goal of maintaining the property as owner occupied and would have 60 days in which to consider whether they would like to purchase the property from the owner to ensure it remains owner occupied. City Manager Recommendation Based on the current economic environment, I believe the proposed right of first refusal is the best option for the Council concerning your desire to create more homeownership in this area. 1 Suggested Motion I move to reconsider file resolution #2010-749. I move to approve revised file resolution 2010-749 authorizing the sale of 189 South High Street at a sales price of $95,000.00. Background The overall goals of the Housing and Homeownership Programs, including the Buy, Rehab, Resell program, consist of: stabilizing the neighborhoods by increasing the number of owner-occupied properties, reducing the incidences of slum and blight by providing low or no interest loans to property owners to encourage appropriate rehabilitation, maintaining the quality of the affordable housing stock of the community, and reducing the density of housing units within these neighborhoods. On December 8, 2008 the City Council approved the purchase of 189 S High Street to be rehabilitated under the Buy, Rehab and Resell program. This home was chosen for the project because it is located on a corner lot with a high degree of visibility. The home has a great deal of architectural character and significance in the neighborhood. Assessment roll and directory research indicate that J.W. St. John owned the land on which this house was built in about 1890. St. John was a physician and served as mayor of Janesville in 1875-76 and as president of the board of education. The project involved the conversion of a two unit rental property into a single family dwelling. A small addition was removed from the rear of the property in order to make room for a new 1 ½ car detached garage. The entire inside was gutted, the home was insulated, and a new furnace and new windows were installed with the goal of making the building much more energy efficient. All lead paint was removed from the home. Staff maintained as much of the original structure and character of the house as possible including the hardwood flooring on the first floor and the original stairway extends to the top of the turret. The carpeting on the second story is made of recycled soda bottles and the mulch in the landscaping is made of automobile tires. The project was put on the market on August 23, 2010 and Neighborhood th Services received an offer from Linda Wells on September 8, 2010 with a purchase price of $95,000.00 contingent upon an appraisal. An appraisal was done and the property appraised at $95,000. The City Council approved the sale of the property on November 8, 2010. At that time, it was envisioned that the property would be deed restricted as owner occupied, single family, and the adopted resolution included language which indicated the property would remain owner occupied until such time as the CDA and the City Council remove the requirement following a request by the property owner. The inclusion of this provision was intended to facilitate one of the City’s local goals; that of increased owner occupied units. 2 Upon receiving the deed restriction language, the lender was unsuccessful in securing investor approval of the deed restriction language. The lender contacted multiple institutions regarding their willingness to approve the language. The lender was unable to locate an investor willing to approve the requested deed restriction. In addition, Housing and Neighborhood Services in Beloit was contacted as they frequently used similar deed restrictions in the past. Housing and Neighborhood Services verified that they have experienced a similar inability to obtain financing for their projects with this deed restriction, and they no longer require the deed restriction. Neighborhood Services staff explored alternative approaches that would facilitate the sale of the home yet also give consideration for the goal of maintaining the property as owner occupied. Among the options considered were: a right of first refusal and securing a second mortgage with a period of time in which the property would remain owner occupied. Analysis A. Deed restriction – Under a deed restriction, the condition would be recorded and attached to the property, so that it could not be sold for rental property. This option presents the greatest connection to the goal of owner occupancy, and is the strongest legal action that can be taken to preserve this property condition. However, it no longer appears that the City will be able to sell this property to any buyer with this requirement. B. Right of First Refusal – A First Right of Refusal is an agreement that the City would have an opportunity to match another offer to purchase the property on a potential future sale. The lender and the buyer are agreeable to enter into a First Right of Refusal, which would be signed at closing and recorded by the Title Company. The First Right of Refusal would restrict the property owner’s ability to sell the property to an investor, by allowing the City the opportunity to purchase the property to ensure it remained owner occupied. The First Right of Refusal would remain in effect for a period of time not to exceed 15 years. During this time, if the owner wishes to sell the property, and they have received a legitimate offer to purchase from another party that they are willing to accept, they would present a copy of that offer to the City of Janesville for review. The City would then have a set time period to determine whether they would like to purchase the property for the same price. This approach could ultimately add additional expense to the City for this property. This is not a commitment upon a future Council to purchase the property; however, it would provide them an opportunity to evaluate their ongoing interest in the property at the time a sale is being contemplated. Beyond staff time, there is no additional cost to the City to obtain a Right of First Refusal. Staff is recommending a First Right of Refusal agreement for a period of 3 10 years, with the City having 60 days, after presented with an alternative offer the owner is willing to accept, to determine whether they have an ongoing interest in purchasing the property. If approved by the Council, the City Attorney’s office will draft a First Right of Refusal Agreement that is consistent with Council direction. C. Second Mortgage – The City could provide a financial incentive to the prospective owner to maintain the property as owner occupied, by providing down payment assistance in the form of a second mortgage. This would require an additional financial cost to the City, which would be forgiven over a set period of time based on the property remaining owner occupied. Disadvantages to this approach include the added up-front investment, as well as leaving the decision to sell the property entirely up to the homeowner. This option was not discussed with the prospective purchaser of the property because it is not being recommended. The lender would be agreeable to such an approach because their mortgage would be secured prior to the City’s in the event of sale or foreclosure. While a deed restriction provides the strongest link to maintaining the property as owner occupied, it no longer appears that this is an option that will be considered by the lending community. Staff believes that securing a First Right of Refusal is the best alternative in that it preserves the right of future City Council’s to consider the benefits of subsequent purchase by the City as compared to allowing the property to change ownership at a point in time when the homeowner is contemplating resale of the property. This option results in no additional cost to the City at this time. cc: Eric Levitt, City Manager Jay Winzenz, Dir. of Administrative Services/Assistant City Manager 4 RESOLUTION NO. 2010 – 749 (Revised) A resolution authorizing the City Manager to proceed with the sale of property located at 189 South High Street WHEREAS, the City of Janesville owns the following described parcel: The S. 66’ of the W1/2 of Lot 46, Doe’s Addition, City of Janesville, Rock County, Wisconsin; excepting the East 58 feet thereof. WHEREAS , The City of Janesville acquired the property located at 189 S High Street in December of 2008, through the Buy, Rehab and Resell Program with CDBG funds; and WHEREAS, The City of Janesville has rehabilitated the property consistent with the Buy, Rehab and Resell Program Manual; and WHEREAS , The City of Janesville has negotiated an agreement to sell the property to Ms. Linda Wells (with co-signer Julie Bittrick) for $95,000.00; and WHEREAS, The City of Janesville has obtained a copy of an appraisal of the property in the amount of $95,000; and WHEREAS, The City of Janesville has verified that Ms. Wells is within the program criteria; and in order to WHEREAS, The City of Janesville will have First Right of Refusal to purchase the property facilitate the goal of maintaining the property as owner occupied; and WHEREAS , the Plan Commission has reviewed this land sale at their December 1, 2008 meeting and found the sale to be consistent with established City plans and recommended that the City Council proceed with the sale of this property, but further noted that the Plan Commission had not reviewed the financial aspects of this transaction; and NOW THEREFORE BE IT RESOLVED BY THE COMMON COUNCIL of the City of Janesville that it hereby authorizes and directs the City Manager and the City Clerk to execute on behalf of the City of Janesville, the sale of such property; and to negotiate and execute such documents, papers and forms as may from time to time be necessary and/or desirable to effectuate such transaction and the intent of this resolution as the City Manager may decide; and BE IT FURTHER RESOLVED that the City Manager is hereby authorized to take whatever other actions or to make whatever other minor changes that may be necessary to effectuate this land transaction. 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, Wald Klimczyk Proposed by: Neighborhood Services Department Prepared by: Neighborhood Services Department Community Development Department Memorandum Date: November 22, 2010 TO: Eric Levitt, City Manager FROM: Duane Cherek, Planning Services Manager SUBJECT: Action on a proposed resolution approving a Memorandum of Understanding between the City of Janesville and Town of Rock (File Resolution No. 2010-747) _____________________________________________________________________ Summary Rock County is in the final stages of developing a Purchase of Agricultural Conservation Easement (PACE) Program. As part of the program, all parcels located within ¾ of a mile of the existing City limits would be ineligible to participate in the Purchase of Agricultural Conservation Easements. The MOU would allow ineligible parcels located in the Town of Rock to apply for inclusion in the PACE Program upon receipt of a letter of support from the City. Under the terms of the MOU, the City agrees to support future applications for the purchase of development rights, if submitted, on property located in the Town west of the STH 11 Bypass. Department Recommendation The Community Development Department recommends that the City Council adopt Resolution No. 2010-747, which will authorize the City Manager to enter into a Memorandum of Understanding with the Town of Rock to allow lands located west of the State Highway 11 Bypass to be eligible for the Rock County PACE Program. City Manager’s Recommendation The City Manager supports adoption of this resolution due to it being consistent with the intent of the 1992 Highway 11 Bypass agreement. Suggested Motion I move to approve Resolution No. 2010- 747 authorizing the City Manager to enter into a Memorandum of Understanding with the Town of Rock to allow lands located west of the State Highway 11 Bypass to be eligible for the Rock County PACE Program. Background Over the years, the City of Janesville and Town of Rock have maintained a long-standing relationship regarding land use, transportation and providing logical municipal boundary adjustments. In 1992, the City entered into an agreement with the Town of Rock to establish the State Highway 11 Bypass Corridor and provide for the extension of public utility services to properties in the Town. The STH 11 Bypass Agreement also recognized that farm lands located in the Town west of the proposed bypass were zoned and used for agricultural purposes, and should be preserved from premature urban development to allow farming to remain as a viable occupation in the Town. More recently, Comprehensive Plans adopted by both the City and the Town reflect the preservation of agricultural lands in these areas. However, parcels located west of the STH 11 Bypass under the proposed Rock County PACE Program would become ineligible parcels (see Map 1). In order to allow parcels located in the Town west of the STH 11 Bypass to participate in the PACE program, the Town of Rock is requesting that the City enter into a Memorandum of Understanding (MOU) that would make parcels within this area eligible for inclusion in the PACE Program. Eligibility for participation in the Program would be provided in the form of a letter of support from the City. The basic terms of the MOU include the following:  City support of future applications for parcels of land located in the Town west of the STH 11 Bypass.  The City will provide the property owner/applicant and Rock County Land Conservation Committee with a letter of support stating that the City has objection to the parcel being included in the PACE Program. The MOU provides for a continuation of the spirit of cooperation and good relations that exist between the City of Janesville and the Town of Rock, as established in prior intergovernmental agreements between the municipalities. The Town believes it is appropriate to allow parcels located in the area west of the Highway 11 Bypass to be eligible for participation in the Rock County PACE Program. Staff believes that the MOU is consistent with and reaffirms the existing intergovernmental agreement between the municipalities which recognize the preservation of agricultural lands in this area. While the MOU would allow such property to be eligible for PACE, it is important to note the parcels located in this portion of the Town are not identified as primary target acquisition areas. Additionally, most of the parcels in this area have a very low-priority ranking which would make their competitiveness for program funding highly unlikely. cc: Eric Levitt Jacob Winzenz RESOLUTION NO. 2010-747 A resolution authorizing the City Manager to enter into a Memorandum of Understanding with the Town of Rock concerning eligibility of lands for the Rock County Purchase of Agricultural Conservation Easements (PACE) Program in areas located west of the State Highway 11 Bypass. WHEREAS, The City of Janesville (CITY) and the Town of Rock (TOWN) entered into a certain Town of La Prairie, Town of Rock, City of Janesville Agreement On The Proposed Janesville STH 11 Bypass and Related Matters of Roads, Land Use, Municipal Boundaries, Public Services, Costs and Revenues (BYPASS AGREEMENT), as executed in 1992; and WHEREAS, the BYPASS AGREEMENT references certain real property in the TOWN located west of the State Highway 11 Bypass; and WHEREAS, the TOWN and CITY, in order to further the spirit of cooperation and good relations that exists between the municipalities, desire to reaffirm their understanding set forth in the BYPASS AGREEMENT that all farm lands located in the TOWN west of the State Highway 11 Bypass currently zoned and used for agricultural purposes should be preserved from premature urban development so as to maintain farming as a viable occupation; and WHEREAS, some of the farm lands located in the TOWN west of the State Highway 11 Bypass have been classified as “Ineligible Parcels” for participation in the Rock County Purchase of Agricultural Conservation Easements (PACE) Program presently under consideration for adoption by the Rock County Board of Supervisors; and WHEREAS, the Rock County PACE Program specifies that Ineligible Parcels may apply for inclusion in the PACE PROGRAM upon receipt of a letter of support from any City located within 3 miles of the subject parcel; and WHEREAS, the TOWN has requested that the CITY support future applications for inclusion in the PACE PROGRAM of any of the Ineligible Parcels located in the TOWN west of the State Highway 11 Bypass; and WHEREAS, the CITY is willing to support such future applications in the TOWN by providing the applicant and the Rock County Land Conservation Committee with a letter of support indicating that the CITY has no objections to the Ineligible Parcel being included in the PACE PROGRAM; and WHEREAS, it is in the mutual best interests of the TOWN and the CITY to enter into this MOU. NOW, THEREFORE BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF JANESVILLE that the City Manager, City Clerk, and his/her designee(s) are hereby authorized to negotiate, enter into, and execute, on behalf of the City of Janesville, the attached MOU; and to negotiate, draft, execute, record, and file such documents, papers, RESOLUTION 2010-747 PAGE 2 agreements, and forms, to take such other actions, and to make such minor amendments and changes to the MOU as the City Manager, from time to time and at any time, may decide to be necessary and/or desirable to effectuate the MOU and/or the intent of this resolution. 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, Wald Klimczyk Proposed by: Community Development Department Prepared by: Community Development Department DEPARTMENT OF PUBLIC WORKS MEMORANDUM 22 November 2010 TO: City Council FROM: Mike Payne, Engineering Manager SUBJECT: ACTION ON A PROPOSED PRELIMINARY RESOLUTION FOR ASSESSABLE WATERMAIN ON STH 11 AND SCHEDULE A PUBLIC HEARING FOR THE FINAL RESOLUTION DECEMBER 13, 2010 (FILE RES. NO. 2010-758) Exective Summary: u The attached Preliminary Resolution No. 2010-758 relates to an assessable watermain project on STH 11 between S. Wright Road and Wuthering Hills Drive. By adopting this Preliminary Resolution, the City is declaring its intent to assess the abutting properties benefited by these improvements. The resolution includes a 12” water main extension along the south right-of-way for STH 11 between S. Wright Road and Wuthering Hills Drive. This water distribution system loop will connect two dead-end mains and provide better reliability to system users in the surrounding area, including the new Dean Clinic and St. Mary’s Hospital which is scheduled for occupancy in late 2011. In reviewing the water distribution system master plan, Utility and Engineering staff have decided there is no need for double mains on this stretch of highway, which results in a 50% savings to abutting property owners. City Manager’s Recommendation: The City Manager recommends approval. This is a valuable project that will improve water and fire service in the immediate area. This project is tied to the TIF project on the agenda regarding SARA’s development. Due to timing if approved tonight, the construction would begin while the assessment notification public hearing process is being completed. Engineering Division Recommendation: The Engineering Division recommends that Preliminary Resolution No. 2010-758 be adopted and the Final Resolution and public hearing be set for Monday, December 13, 2010; that the Engineering Division be authorized add the watermain installation to Contract 2010-6; and that the City Council express their intent to include in the 2011 Note Issue $260,000 for the STH 11 Wright Road to Wuthering Hills Drive Watermain installation. \\petey\cojhome\agenda review\approved agenda items\2010\11-22-2010\sth 11 watermain - memo.doc Background Subject to authorization by the City Council of Resolution 2010-753 ( the authorizing resolution for the TIF Development Agreement concerning the Home Health United Project), the Engineering Division is prepared to direct contractor R.T. Fox, thru a change order to Contract 2010-6, to complete the installation of the STH 11 watermain between Wright Road and Wuthering Hills Drive. Installation of the watermain in this manner allows the City to complete this improvement in an expeditious and cost effective manner, in time to provide service to the Home Health United development by its projected opening in February of 2011 as well as providing improved water service reliability to the STH 11business area prior to the opening of the Dean/St. Mary Health Care Center projected for the fall of 2011. Attachment cc: Eric Levitt Jacob Winzenz Carl Weber \\petey\cojhome\agenda review\approved agenda items\2010\11-22-2010\sth 11 watermain - memo.doc STH 11 ASSESSABLE WATERMAIN 22 NOV 2010 RESOLUTION NO. 2010-758 PAGE (1) OF (4) PRELIMINARY RESOLUTION PRELIMINARY RESOLUTION DECLARING INTENT TO EXERCISE SPECIAL ASSESSMENT POWERS UNDER SECTION 66.0703, WISCONSIN STATUTES AND REQUIRING INSTALLATION OF WATER, SEWER, AND GAS SERVICE PIPES AND PROVIDING FOR ASSESSMENT OF COSTS UNDER SECTION 66.0911, WISCONSIN STATUTES; RESOLVED, By the Common Council of the City of Janesville, Wisconsin. 1. The Common Council hereby declares its intention to exercise its power pursuant to S.66.0703 and S.66.0911, Laws of the State of Wisconsin, to levy special assessments on a reasonable basis upon property abutting the following described streets, pursuant to its police powers, by improvement of the said streets to further facilitate traffic flow and safety, and to assist in providing for the safety, health, and general welfare of the public, to-wit: I. WATER MAIN ONLY All Property Fronting Upon Each Side Of From To STH 11 S. Wright Road Wuthering Hills Drive 2. Said public improvements shall include the above listed improvements on the various listed streets to the grades established therefore by the City Council of the City of Janesville, Wisconsin, and recorded in the Office of the City Clerk whether previously established or established in the future. 3. The property against which the assessments are proposed shall be benefited by the improvements and said assessments shall be made upon a reasonable basis. Construction will commence in November 2010. 4. That the actual levy of the special assessment shall take place at the time of the adoption of the final public works resolution by the Common Council of the City of Janesville concerning these improvements. The property owner(s), if any property abutting and/or benefiting from this project is located in Rock Township, against whose property such special assessment shall be levied under and by this Resolution, shall have their payment obligation deferred, without interest accruing thereon, until STH 11 ASSESSABLE WATERMAIN 22 NOV 2010 RESOLUTION NO. 2010-758 PAGE (1) OF (4) such time as their specific property is annexed or connects to such improvement(s), in which event the special assessment shall be due and payable either in full or in five (5) annual installment payments, the latter with interest accruing thereon from the date of annexation or connection. This method of payment shall be approved and ratified by the Board of the Town of Rock in accord with Section 66.0707 of the Wisconsin Statutes, and such other applicable provisions of law and intergovernmental agreement(s), and shall act, once so ratified by the Rock Town Board, as a levied special assessment against such abutting and/or benefiting properties in the Town of Rock. This levy and special assessment payment provisions are in accord with the City of Janesville/Town of Rock Cooperative Boundary Plan, City of Janesville Common Council Special Assessment Policy No. 63, related pertinent provisions, and the Town of Rock/Janesville Highway 11 Bypass Agreement. The special assessment levy and payments shall be made by the abutting, benefiting and affected property owners in accord with the LaPrairie and Rock Township City of Janesville Highway 11 Bypass Agreement, as well as the Rock/Janesville Cooperative Boundary Plan. This provision applies only to the properties located in the Town of Rock. 5. Excluding the assessment for the installation of sewer and water service pipes (lateral) and the assessment against any parcel owned by an individual property owner 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 six percent (6%) 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 six (6%) per annum. The assessments against any parcel for sewer and water service pipes shall constitute a lien against such parcel and must be paid in cash or with the taxes in the year following the completion of the work. The assessments, as outlined above, pertain only to said individual property owners. The assessments against all parcels of land owned by others, which include subdividers, land developers, speculative builders, or owners of several or more lots on the same street or in the same area will be billed upon completion of the work after which interest at six percent (6%) per annum will be charged from the last day of the month of the billing. The assessments for said other owners may be: (a) paid in cash upon completion of the work in the month of billing without interest; or (b) paid with the taxes the first year following the completion of the work, the amount to be entered in the Tax Roll shall include the unpaid principal with interest through the end of December in the year so entered; or, (c) at the election of the property owner and with the approval of the Committee of Public Works, spread over a period of five (5) years with interest at six percent (6%) per annum on the unpaid balance. The first installment on the five-year plan shall include one-fifth of the principal with interest through the end of December in the year so entered. Each of the subsequent installments shall be entered on each of the annual tax rolls thereafter until all are collected. Deferred payment on the aforementioned installments shall bear interest at six percent (6%) per annum. STH 11 ASSESSABLE WATERMAIN 22 NOV 2010 RESOLUTION NO. 2010-758 PAGE (1) OF (4) 6. The City Engineer is directed to prepare a report consisting of: a. Final plans and specifications for said improvements, b. An estimate of the entire cost of the proposed improvements, c. A schedule of the proposed assessments, and d. A statement showing that the property against which the assessments are proposed is benefited, the improvement constituting an exercise of police powers. Upon completing such report, the City Engineer is directed to file a copy thereof in the City Clerk's Office for public inspection. The City Engineer is also directed to advertise for bids to carry out such work of such improvements in accordance with the report. 7. Upon receiving the report of the City Engineer, the Clerk is directed to give notice of a Public hearing on such report as specified in S.66.0703(7)(a), Wisconsin Statutes. The hearing shall be held at the Council Chambers in the Municipal Building at a time set by the Clerk, in accordance with S.66.0703(7)(a), Wisconsin Statutes. 8. The Common Council of the City of Janesville hereby approve and authorize the City Administration to take actions necessary to engage in the Project and to provide funding for capital improvements described in paragraph 1 above (the “Projects”) with funding not to exceed $260,000; No funds from sources other than the Notes or the Available Funds identified above are, or are expected to be, reserved, allocated on a long-term basis, or otherwise set aside by the City for the project, except as permitted by the Internal Revenue Code of 1986, as amended. This declaration of official intent is consistent with the budgetary and financial circumstances of the City. The purpose of this Resolution is to satisfy the “official intent requirement” of Treasury Regulation Section 1.150-2 STH 11 ASSESSABLE WATERMAIN 22 NOV 2010 RESOLUTION NO. 2010-758 PAGE (1) OF (4) ADOPTED: MOTION BY: SECOND BY: APPROVED: COUNCILMEMBER AYE NAY PASS ABSENT BRUNNER Eric J. Levitt, City Manager McDONALD ATTEST: PERROTTO RASHKIN Jean Ann Wulf, City Clerk-Treasurer STEEBER TRUMAN APPROVED AS TO FORM: VOSKUIL City Attorney Wald Klimczyk Proposed by: Engineering Division Prepared by: Engineering Division Community Development Department Memorandum Date: November 12, 2010 TO: Janesville City Council FROM: Gale Price, Building & Development Services Manager SUBJECT: Introduce and schedule a public hearing on a proposed ordinance amending Chapter 14 (Signs) of the Code of General Ordinances of the City of Janesville with regard to on-premise wall signs in Sign District D and the designation of street frontages for allowing such signs (File Ordinance No. 2010-468). _____________________________________________________________________ The Community Development Department has drafted an amendment to the Sign Ordinance which is Chapter 14 of the Code of General Ordinances to allow wall signs on the rear of a building in certain situations. Specifically the proposal would allow a business along the riverfront walkway between Centerway and West Racine Street to have an on premise business wall sign on the rear of the building. Currently the Code does not permit a business to have a wall sign on the rear of the building unless the sign faces the Downtown Parking Plaza. This proposed code amendment would extend the ability for rear wall signage along the entire downtown riverfront walkway. The Community Development Department recommends that following the first reading of Ordinance No. 2010-468, it be referred to the Plan Commission for review and recommendation and scheduled for public hearing on January 10, 2010. cc: Eric Levitt Jay Winzenz ORDINANCE NO. 2010-468 An ordinance amending the City’s Sign Code with regard to on premise wall signs in Sign District D and the designation of street frontages for allowing such signs as set forth in JGO Chapter 14, with penalties for violations thereof as set forth as applicable in JGO 14.48.050. THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS FOLLOWS: SECTION I. Section 14.28.120 of the Code of General Ordinances of the City of Janesville is hereby amended to read as follows: “14.28.120 District D--On-premises signs permitted . In sign overlay district D, the following on-premises signs are permitted: A . One freestanding ground sign may be permitted for each parcel of land, provided sufficient setback from the street right-of-way is provided so as not to cause encroachment into the right-of-way. 1 . Such ground sign shall not extend above a total height of twenty feet above grade. 2 . The maximum area of any ground sign shall not exceed seventy-five square feet per face. B . One under-canopy sign per business occupancy may be permitted, provided each sign shall not exceed ten square feet in area and shall have a clearance of nine feet between the bottom of the sign and the ground beneath it. Under-canopy signs may only be placed above pedestrian walks. C . One wall sign may be permitted for each street frontage or each separate business occupancy. For the purposes of this chapter, the downtown parking plaza and the riverfront public walkway between Centerway and West Racine Street shall be considered a street frontage. Such signs comply with the following regulations: 1 . The maximum area of all wall signs shall not exceed an area equal to two and one-half square feet for each lineal front foot of building or that portion of a building devoted to a business occupancy. 2. Such signs shall not extend above the roof line. 3 . No wall sign shall be positioned on the building elevation facing a non-street rear lot line of the parcel upon which the building is located, except where such building adjoins the downtown parking plaza or the riverfront public walkway between Centerway and West Racine Street. 4. No wall sign shall be positioned on a building elevation directly adjoining a residential zone district. 1 SECTION II. This ordinance shall take effect immediately upon adoption by the Common Council, the public health, welfare, peace, tranquility, good order, public benefit, and police power so requiring. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Absent Pass Brunner McDonald Eric J. Levitt, City Manager Perrotto Rashkin ATTEST: Steeber Truman Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: ______________________________ Wald Klimczyk, City Attorney Proposed by: Community Development Department Prepared by: Community Development Department 2