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#4 Authorize to terminate, dissolve and de-certify TIF District #14 (File Res. #2011-808)Economic Development Department Memorandum May 23, 2011 TO: City Council FROM: Vic Grassman, Economic Development Director SUBJECT: Action on a Proposed Resolution Authorizing the Dissolution of Tax Increment Finance District No. 14 and the Distribution of Excess Tax Increment Revenue funds (File Resolution 2011-808) Summary Wisconsin’s Tax Increment Finance (TIF) Law (Wisconsin statues 66.1105) requires the dissolution of a TIF district when all of the TIF costs have been recovered, or no later than 27 years after the date of creation. The City Council created TIF #14 in 1994 to facilitate the development of Janesville’s east side business park, and all TIF costs have been recovered. Background TIF #14 was created by the City Council in 1994 to facilitate the development of a business park on Janesville’s east side. A number of businesses subsequently benefitted including GHB Specialty Brands (Grainger), Gallina, BJ Electric, Bliss Communications and others. Over the life of the TIF Distinct the City invested over $4.2 million in capital expenditures, compared to a Project Plan budget of $4.9 million. Administrative costs were $102,071 compared to the original budget of $98,120. Since creation the TIF District has generated $5,249,343 in new property taxes and $23,483 in interest income. The taxable values of the District increased $23,057,500 from a base value of $26,213,900 in 1995 to $49,271,400 in 2010. Financial Summary The attached table summarizes the revenues and expenditures for TIF No. 14 from the date of creation through May 31, 2011. TIF revenues exceeded TIF costs by $1,666,115. These funds will be returned to the overlying taxing jurisdictions in the same percentage as those jurisdictions contributed to TIF revenues. The amount of TIF funds to be returned to each taxing jurisdiction is as follows: County of Rock: $ 412,345 Janesville School District: 648,167 Blackhawk Technical College 120,857 City of Janesville 427,121 Janesville Public Library 57,625 Total Excess Funds $1,666,115 Recommendation The Economic Development Director recommends that the Council adopt Resolution 2011-808, dissolving Tax Increment Finance District No.14. City Manager Recommendation The City Manager concurs with the Economic Development Director recommendation. This demonstrates positive results from the establishment of TIF #14 with an increase of over 85% in property value since the establishment of the TIF. Attachments: Resolution 2011-808 TIF 14 map TIF 14 Sources and Uses Statement RESOLUTION NO 2011 - 808 A RESOLUTION TERMINATING, DISSOLVING, AND DE-CERTIFYING TIF DISTRICT No. 14 AND AUTHORIZING THE CITY CLERK-TREASURER TO DISTRIBUTE EXCESS INCREMENT TO OVERLYING TAXING DISTRICTS WHEREAS , the City of Janesville adopted Resolution No. 94-1855 creating Tax Incremental District No. 14 on the 21 day of November, 1994, and adopted a project plan for the district that year; and WHEREAS , Wis. Stats. Sec. 66.1105(7) requires the termination and dissolution of created TIF districts upon the expiration of the life of the district and/or the happening of one or more events enumerated in the applicable Wisconsin statutes; and WHEREAS , TIF District No. 14 has reached the end of its lawful effectiveness and life; and WHEREAS , all TIF District No. 14 expenditures and projects were completed in the prescribed allowed time; and WHEREAS , sufficient positive tax increments on new property value created within the district have been collected through and including as of the 2010 tax roll, payable 2011, to pay in full all TIF District No. 14 project costs, and to escrow funds to repay the District’s remaining outstanding debt, if any, and that then any remaining excess funds from TIF No. 14 held by the City of Janesville shall be proportionally distributed to each affected, contributing taxing that paid into the District during its life, with proportionate shares preliminarily jurisdictions calculated as follows: County of Rock: $412,345 Janesville School District: $648,167 Blackhawk Technical College $120,857 City of Janesville $427,121 Janesville Public Library $ 57,625 Total Excess Funds $1,666,115 NOW BE IT HEREBY RESOLVED that the Common Council of the City of Janesville do hereby terminate, dissolve, and decertify TIF District No. 14, effective forthwith; and BE IT FURTHER RESOLVED , that the City Clerk-Treasurer shall notify the Wisconsin Department of Revenue, within sixty (60) days of the adoption of this resolution that TIF District No. 14 has been terminated and dissolved, in accord with state law; and BE IT FURTHER RESOLVED , that the City Clerk-Treasurer shall sign the required Wisconsin Department of Revenue final accounting form agreeing on a date by which the City of Janesville shall send final audited information to the Wisconsin Department of Revenue; and BE IT FURTHER RESOLVED , that the City Clerk-Treasurer shall distribute any excess increment collected, after providing for ongoing expenses of the District, to the affected taxing districts that paid into the District during its life, with proportionate shares to be as preliminarily set forth above and then determined by the final audit by the City’s Comptroller and/or Auditors. ADOPTED: _____________________________ Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner ______________________________________ Dongarra-Adams Eric J. Levitt, City Manager Liebert McDonald Rashkin ATTEST: Steeber Voskuil ______________________________________ Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: ______________________________________ Wald Klimczyk, City Attorney Proposed by: Economic Development Director Prepared by: City Attorney Ì×Ú Ü·­¬®·½¬ ïì Ý·¬§ ±º Ö¿²»­ª·´´»ô É·­½±²­·² n Ý·¬§ ±º Ì×Ú ïì Ô»¹»²¼ Ö¿²»­ª·´´» Û½±²±³·½ Ü»ª»´±°³»²¬ Ê·½ Ù®¿­­³¿²ô Ü·®»½¬±® Ì×Ú ïì Þ±«²¼¿®§ øêðè÷ éëëóíïèï Ú»»¬ ¸¬¬°æññ©©©ò¹®±©¶¿²»­ª·´´»ò½±³ ðëððïôððð Ì×Ú ïì Ю±°»®¬·»­ Ý®»¿¬»¼ èñîñîðïð ó Õ Þ»²¦ô д¿²²·²¹ Í»®ª·½»­ CITY OF JANESVILLE TAX INCREMENTAL DISTRICT NO. 14 HISTORICAL SUMMARY OF PROJECT COSTS, PROJECT REVENUES AND NET COST TO BE RECOVERED THROUGH TAX INCREMENTS Through May 31, 2011 and From Date of Creation Through May 31 2011 YearFrom Date BudgetEndedof Creation PROJECT COSTS Capital Expenditures:$4,900,763$0$4,201,872 Administration55,5003,951102,071 Refund to overlying districts01,666,1151,666,115 Interest and fiscal charges01,185,448 Interfund Borrowing0198,644 Issuance Expenses014,187 Total Costs$4,956,263$1,670,066$7,368,337 PROJECT REVENUES Tax increments$566,896$5,249,343 Guarantee Payments0176,210 Interest income43523,483 Computer Exemption Increment57,8781,645,092 Sale of Property and other revenues0274,209 Total Revenues$625,209$7,368,337 NET COST RECOVERABLE THROUGH TIF INCREMENTS - May 31, 2011$1,044,857($0) 1995 Base2010 ValueValue Increment TIF Value History $ 26,213,900$ 49,271,400$ 23,057,500 Note: In setting the equalized value of TIF No. 14 for 2008, the Dept. of Revenue made an error and overstated value by $13,000,000. The error will be corrected in 2009 by lowering value a corresponding amount.