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Full Agenda Packet Revised 1/5/12 CITY OF JANESVILLE CITY COUNCIL MEETING AGENDA MONDAY, January 9, 2012 7:00 P.M. 1.Call to Order and Pledge of Allegiance. 2.Roll Call. 3.City Council meeting minutes of A. Regular meeting of December 12, 2011. B. Special meeting of December 22, 2011. “C” 4.Licenses; and Recommendations of the Alcohol License Advisory Committee. (Refer to separate agenda.) “C” 5.Financial statement for the month of November, 2011. “C” 6.Authorization for the Administration to deny a liability claim from Yeske Construction Company in the amount of $5,081.92. “C” 7.Authorization for the Administration to accept a liability claim brought on behalf of Colin T. Cabelka in the amount of $25,000. “C” 8.Special recognition: Action on a proposed resolution in commendation of Douglas L. Miland’s service to the City of Janesville. (File Res. No. 2012-870) 9.Special recognition: Action on a proposed resolution in commendation of Daniel L. Lynch’s service to the City of Janesville. (File Res. No. 2012-871) 10.Special recognition: Action on a proposed resolution in commendation of Craig A. Jones’ service to the City of Janesville. (File Res. No. 2012-872) 11.Special recognition: Action on a proposed resolution in commendation of James F. Karow’s service to the City of Janesville. (File Res. No. 2012-873) 12.Special recognition: Action on a proposed resolution in commendation of Robert M. Geschke’s service to the City of Janesville. (File Res. No. 2012-874) ----------------------- “C” – This designation indicates an item that the City Council will take up under a Consent Agenda. City Council Agenda – January 9, 2012 Page 2 OLD BUSINESS 1.Requests and comments from the public regarding items on the Agenda not requiring a public hearing. 2.Second reading, public hearing and action on a proposed ordinance amending the City of Janesville zoning ordinance to add an exemption to the nonconforming use section for single and two-family historic residential structures. (File Ord. No. 2011-502) 3.Second reading, public hearing and action on a proposed ordinance amending the City’s solid waste ordinance to increase sanitary landfill fees. (File Ord. No. 2011-505) NEW BUSINESS 1.Action on a proposed resolution authorizing the City Manager to enter into a TIF development agreement with Helgesen Development to facilitate the relocation of Miniature Precision Components into TIF District #22. (File Res. No. 2012-879) 2.Presentation on new City website. 3.Action on a proposed resolution authorizing the filing of an application, in cooperation with the County of Rock, for a U.S. Department of Housing and Urban Development 2012 Lead-Based Paint Hazard Control Grant. (File Res. No. 2012-877) 4.Action on a proposed resolution authorizing expenditures for the conversion to automated collection of trash and recyclables. (File Res. No. 2012-878) 5.Action on a potential spring primary for City Council on February 21, 2012. 6.Introduce and refer to Plan Commission for a public hearing a proposed resolution amending the Boundary and Project Plan of TIF District No. 35. (File Res. No. 2012-875) 7.Introduce and schedule a public hearing on a proposed ordinance annexing property located at 4021 U.S. Highway 51 South. (File Ord. No. 2012-506) 8.Introduce, refer to Plan Commission, and schedule a public hearing on a proposed ordinance zoning property located at 4021 U.S. Highway 51 South to M1 upon annexation. (File Ord. No. 2012-507) City Council Agenda – January 9, 2012 Page 3 NEW BUSINESS 9.Requests and comments from the public on matters which can be affected by Council action. 10.Matters not on the Agenda. 11.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 REGULAR MEETING DECEMBER 12, 2011 VOL. 62 NO. 27 Regular meeting of the City Council of the City of Janesville held in the Municipal Building on December 12, 2011. The meeting was called to order by Council President Steeber at 7:00 PM. Council President Steeber led the Council in the Pledge of Allegiance. Present: Councilmembers Dongarra-Adams, Liebert, McDonald, Rashkin, Steeber and Voskuil. CONSENT AGENDA Special meeting minutes of November 11, 2011. Special meeting minutes of November 14, 2011. Regular meeting minutes of November 28, 2011. Special meeting minutes of December 5, 2011. Licenses; and Recommendations of the Alcohol License Advisory Committee Appointment of Election Officials for 2012-2013. Council President Steeber stated that all items on the consent agenda would be approved if there were no objections. There were none. 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., spoke against the purchase of farmland (NB #6). 2. A proposed ordinance establishing a vehicle registration fee (wheel tax) in the amount of $10.00 per vehicle received its second reading and public hearing. Andreah Briarmoon, 339 S. Locust St., spoke against the ordinance. The public hearing was closed. Councilmember McDonald moved to adopt said ordinance, seconded by Councilmember Liebert and passed by the following vote: Aye: Dongarra-Adams, Liebert, McDonald, Steeber and Voskuil. Nay: Rashkin. (File Ord. No. 2011-503) 3. Action on a proposed resolution establishing the relocation order for the right-of-way of the E. Milwaukee St./Wuthering Hills Dr. intersection improvement project. Councilmember Liebert moved to adopt said resolution, seconded by Councilmember Voskuil and failed by the following vote: Aye: Liebert, Steeber and Voskuil. Nay: Dongarra-Adams, McDonald and Rashkin. Councilmember McDonald made a motion to do nothing at the intersection of E. Milwaukee St. and Wuthering Hills Dr., seconded by Councilmember Rashkin and failed by the following vote: Aye: Dongarra-Adams, McDonald and Rashkin. Nay: Liebert, Steeber, Voskuil. (File Res. No. 2011- 851) NEW BUSINESS 1. City Manager’s Report - Snow Removal Operations. John Whitcomb, Operations Manager, presented the goals and objectives of the City of Janesville snow removal program. No Council action taken. 2. Action on a proposed resolution authorizing the submittal of an amendment to the Lead Hazard Reduction Demonstration Grant Program contract between the State of Wisconsin Department of Health Services and the City of Janesville. Councilmember McDonald moved to adopt said resolution, seconded by Councilmember Voskuil and passed unanimiously. (File Res. No. 2011- 866) 3. Action on a proposed resolution authorizing the City Manager to proceed with the sale of property located at 414 N. Washington St. through the Neighborhood Stabilization Program. Councilmember Liebert moved to adopt said resolution, seconded by Councilmember Voskuil and passed unanimously. (File Res. No. 2011-861) 4. Authorization for the City Manager to renew a lease of city-owned land at 700 S. Jackson St. for two years with Cindy Pelton, owner of 708 Club. Councilmember McDonald moved to renew said lease, seconded by Councilmember Voskuil and passed unanimously. 5. Action on a proposed resolution authorizing the City Manager to enter into an intergovernmental agreement with the City of Beloit to provide commercial plumbing inspection services to the City. Councilmember McDonald moved to approve said agreement, seconded by Councilmember Voskuil and passed unanimously. (File Res. No. 2011-868) 6. Action on a proposed resolution authorizing the City Manager to exercise a “purchase option” to purchase an 84 acre site for an industrial prospect located at 4021 U.S. Hwy. 51 South, Rock Township. Councilmember Rashkin moved to adopt said resolution, seconded by Councilmember Steeber. Councilmember Voskuil offered a friendly amendment to make the purchase contingent upon an approved developer’s agreement which was accepted by the maker and the seconder. The motion, as amended passed by the following vote: Aye: Dongarra-Adams, Liebert, Rashkin, Steeber and Voskuil. Nay: McDonald. (File Res. No. 2011-865) 7. Appointment to the Board of Directors of Community Action of Rock and Walworth Counties. Councilmember McDonald moved to appoint Councilmember Liebert to the Board of Directors of Community Action of Rock and Walworth Counties, seconded by Councilmember Voskuil and passed unanimously with Councilmember Liebert abstaining. 8. Action on a proposed resolution authorizing the City Manager to extend an existing landfill disposal contract with Green County through 2013. Councilmember Liebert moved to adopt said resolution, seconded by Councilmember Voskuil and passed by the following vote: Aye: Dongarra- Adams, Liebert, Rashkin, Steeber and Voskuil. Nay: McDonald. (File Res. No. 2011-869) 9. Authorization to purchase equipment for ice center renovation. Councilmember McDonald moved to proceed with the purchase of conventional geothermal ice making equipment, seconded by Councilmember Rashkin and passed unanimously. 10. Discussion and possible action on a proposed red flag program. Councilmember McDonald moved to authorize staff to implement a pilot program and work with a volunteer group to monitor the program, seconded by Councilmember Voskuil and passed unanimously. 11. A proposed ordinance amending the City’s solid waste ordinance to increase sanitary landfill fees was introduced and scheduled for a public hearing on January 9, 2012. (File Ord. No. 2011- 505) 12. A proposed ordinance amending the zoning conditions of approval for property located the southwest corner of Jerome Avenue and Delavan Drive was introduced, referred to the Plan Commission and scheduled for a public hearing on January 23, 2012. (File Ord. No. 2011-504) 13. Requests and comments from the public on matters which can be affected by Council action. Andreah Briarmoon, 339 S. Locust St., spoke against the Council submitting the application for a lead hazard grant (NB#2) and the TIF funding of projects. 14. Matters not on the Agenda. Councilmember Voskuil requested that staff display the actual City website when referencing that information during the Council meetings. Council President Steeber scheduled a special meeting on Thursday, 12/22/11 at 7:45 am and Council waived notice. Council Liebert requested staff look at the intersection of Crosby and Court Streets as a potential crosswalk site. Councilmember Steeber stated that he canceled the Council meeting on December 26, 2011and wished everyone a safe and happy holiday. He also requested that the informal listening sessions start at 6:30 pm and by consensus, the Council agreed. 15. Motion to adjourn. Councilmember Steeber moved to adjourn, seconded by Councilmember McDonald and passed unanimously. There being no further business, the Council adjourned at 10:00 pm. These minutes are not official until approved by the City Council. David T. Godek Deputy Clerk-Treasurer PROCEEDINGS OF THE CITY COUNCIL CITY OF JANESVILLE, WISCONSIN SPECIAL MEETING DECEMBER 22, 2011 VOL. 62 NO. 28 Special meeting of the City Council of the City of Janesville held in the Municipal Building on December 22, 2011. The meeting was called to order by Council President Steeber at 7:45 AM. Council President Steeber led the Council in the Pledge of Allegiance. Present: Councilmembers Dongarra-Adams, Liebert, McDonald, Steeber and Voskuil. Absent: Councilmember Rashkin. NEW BUSINESS 3. Councilmember Voskuil moved to convene into closed session, pursuant to Wis. Stats. 19.85(1)(e) for the purposes of considering and establishing the negotiation and/or bargaining parameters, terms, and conditions for a proposed TIF District No. 35 Development Agreement with Shine Technologies Inc., seconded by Councilmember Dongarra-Adams and passed unanimously 4. The Council convened into closed session at 7:47 AM. Councilmember Rashkin arrived. 5. The Council reconvened into open session at 9:07 AM. 6. Councilmember Rashkin moved to reconsider File Resolution No. 2011-865 authorizing the City Manager to exercise the option to purchase 84 acres located at 4021 U.S. Hwy 51 South, Rock Township with the closing date being in late February. The motion was seconded by Councilmember Voskuil and passed unanimously. Council President allowed for public comment. Andrea Briarmoon, 339 S. Locust St. spoke against the purchase of the land. Public comments were closed. 7. Consideration, deliberation, and action upon re-opened Council File Resolution No. 2011- 865, authorizing the City Administration to exercise a certain Option to purchase approximately 85 acres of vacant land from owner Arthur T. Donaldson for an industrial redevelopment project located at 4021 U.S. Highway 51 South, Rock Township. Councilmember Rashkin moved to adopt said resolution, seconded by Councilmember Voskuil. Councilmember McDonald offered a friendly amendment to change the resolution to say that the land is not vacant but farm land which was accepted by the maker. Councilmember Voskuil offered a friendly amendment that the wording be that the land is vacant land with a farm use which was accepted by the maker. The motion, as amended, passed by the following vote: Aye: Dongarra-Adams, Liebert, Rashkin, Steeber and Voskuil. Nay: McDonald. 8. Matters not on the agenda. Councilmember McDonald wished everyone Merry Christmas and Happy Holidays. 9. Councilmember Voskuil moved to adjourn, seconded by Councilmember McDonald and passed unanimously. There being no further business, the Council adjourned at 9:24 AM. These minutes are not official until approved by the City Council. David T. Godek Deputy Clerk-Treasurer JANESVILLE CITY COUNCIL LICENSE AGENDA 1/9/2012 RECOMMENDED A. ELECTRICIANS–ORIGINAL Russell J. Ceschi 333 N. Main, Walworth, WI Scott A. Greenwald 75 Bruce St., Darien, WI Edmund Scanlon 304 Lakewood Terr., Marshall, WI B. SIGN INSTALLERS-ORIGINAL Innovative Signs, Inc. 21795 Ddoral Rd., Waukesha, WI Olson Signs 601 Gardner St., S. Beloit, WI C. SECONDHAND ARTICLE DEALER–ORIGINAL Hatfield Guitar & Repair 3503 Mt. Zion Ave. ACCOUNTING DIVISION MEMORANDUM December 29, 2011 TO: City Council FROM: Patty Lynch, Comptroller SUBJECT: Financial Statement for the Month of November 2011 The City prepares its Financial Statements in accordance with generally accepted accounting principles 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, are presented in the following graphs. EXPENDITURE SUMMARY The graph below indicates that expenditures are being made according to budget. Year-To-Date November ExpendituresCompared to Three-Year Average Current YTD 3 Yr. Avg. 100% 90% Percent of Total Budget 80% 70% 60% 50% 40% 30% 20% 10% 0% Water -Wastewater - General OperatingOperatingSanitation Fund November 2011 Financial Statements December 29, 2011 Page 2 REVENUE SUMMARY The graph below indicates revenue for the General Fund, Water Utility, and Wastewater Utility has been earned as anticipated. Santiation revenue is below trend due to less tonnage received at the landfill. Year-To-Date November RevenuesCompared to Three-Year Average Current YTD 3 Yr. Avg. 120% Percent of Total Budget 100% 80% 60% 40% 20% 0% General WaterWastewaterSanitation Fund Other items of interest in the Financial Statement are as follows: Proprietary Funds (page 4)  The Water Utility has a deficit operating cash balance of $1,282,058 at October 31, 2011. Water sales are 14% below projections. The 3% increase in water rates effective May 11, 2011 was intended to partially address the cash deficit.  Transit reports a negative cash balance of $583,874 due to the timing of grant reimbursements after expenditures have been made. Special Revenue Fund Balance (page 5)  TIF 3 has a positive balance of $163,948. The positive balance will be used to repay the general fund advance plus accrued interest.  Many TIF funds have deficit cash balance, however TIF projections indicate that the districts will reach a positive fund balance before the districts expire.  Landfill long-term care of site #3023 ($38,520) 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 November 2011 Financial Statements December 29, 2011 Page 3 Wright Road to Highway 14 ($186,800). These costs will be funded with either future special assessments or General Obligation note issue.  Many Capital Project accounts have deficit cash balance. The note proceeds from the fall note sale will fund these projects. General Fund (page 7 & 8)  Sale of City Property is over budget due to sale of land $523,800.  Miscellaneous revenue is over budget due to the dissolution of TIF 14 $427,121. A representative of the Administrative Services Department will be available at the Council Meeting on January 9, 2012 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 Eric J. Levitt, City Manager CITY ATTORNEY’S OFFICE MEMORANDUM December 21, 2011 TO: City Council FROM: Tim Wellnitz, Assistant City Attorney SUBJECT: Authorization for the Administration to Deny a Liability Claim from Yeske Construction Company in the Amount of $5,081.92. On July 11, 2011, a Yeske Construction Company vehicle was involved in a motor vehicle accident with a City of Janesville truck at the intersection of N. Jackson Street and Centerway in Janesville, Wisconsin. On September 15, 2011, a claim was received from United Fire Group for their insured, Yeske Construction for property damage in the amount of $5,081.92. After investigating this incident, and with the concurrence of the City’s Insurance Claims Representative at Cities & Villages Mutual Insurance Company (CVMIC), it has been determined that the City should deny this claim. Resolution 89-1175, establishing our claims administration procedure, states in section 4.3a: The City Claims Administrator shall review, investigate, verify and within ninety (90) days of receiving such claim, prepare and forward a written recommendation to the Common Council for its review, consideration, and action each and every claim in face amount greater than Five Thousand Dollars ($5,000). I recommend that the City Council deny by consent and authorize the Administration to deny the claim received from Yeske Construction Company in the amount of $5,081.92. cc: Eric Levitt, City Manager Jacob J. Winzenz, Director of Administrative Services/Assistant City Manager ADMINISTRATIVE SERVICES MEMORANDUM December 8, 2011 TO: City Council FROM: Tim Wellnitz, Assistant City Attorney SUBJECT: Authorization for the Administration to Accept a Liability Claim brought on behalf of Colin T. Cabelka in the amount of $25,000. On May 4, 2010, an accident occurred between a bicycle ridden by Colin T. Cabelka and a City of Janesville garbage truck resulting in personal injuries to Mr. Cabelka. On October 25, 2011, a demand was received from Habush Habush & Rottier S.C. for the personal injuries received by Colin T. Cabelka in the amount of $53,000.00, which was denied at the November 14, 2011 Council meeting. I have since negotiated settlement of this claim contingent on Common Council approval in the amount of $25,000.00. After investigating this incident, and with the concurrence of the City’s Insurance Claims Representative at Cities & Villages Mutual Insurance Company (CVMIC), it has been determined that the City should accept this claim. Resolution 89-1175, establishing our claims administration procedure, states in section 4.3a: The City Claims Administrator shall review, investigate, verify and within ninety (90) days of receiving such claim, prepare and forward a written recommendation to the Common Council for its review, consideration, and action each and every claim in face amount greater than Five Thousand Dollars ($5,000). I recommend that the City Council approve by consent and authorize the Administration to accept the claim received on behalf of Colin T. Cabelka in the amount of $25,000.00. cc: Eric Levitt, City Manager Jacob J. Winzenz, Director of Administrative Services/Assistant City Manager HUMAN RESOURCES DIVISION MEMORANDUM January 3, 2012 TO: City Council FROM: Susan Musick, Human Resources Director SUBJECT: Retirement Recognition Douglas L. Miland, Daniel L. Lynch, Craig A. Jones, James F. Karow, and Robert M. Geschke Executive Summary At the City Council meeting of January 9, 2012, the following retirement commendations will be considered under the consent agenda: 1. Douglas L. Miland for thirty-two years of service with the City of Janesville (File Resolution Number 2012-870).  Douglas will be attending the January 9, 2012, Council meeting.  Douglas began working for the City of Janesville on October 15, 1979, as a Firefighter/Paramedic with the Janesville Fire Department. He was promoted to Fire Lieutenant on April 4, 2009.  Douglas’s retirement date was December 22, 2011. 2. Daniel L. Lynch for twenty-eight years of service with the City of Janesville (File Resolution Number 2012-871).  Daniel will be attending the January 9, 2012, Council meeting.  Daniel began working for the City of Janesville on January 17, 1983, as a Utility Engineer in the Public Utility Administrative Department. He was promoted to the position of Utility Director on January 29, 1990.  Daniel’s retirement date was December 31, 2011. 3. Craig A. Jones for thirty-one years of service with the City of Janesville. (File Resolution Number 2012-872).  Craig will be attending the January 9, 2012, Council meeting.  Craig began working for the City of Janesville on May 5, 1980, as a Firefighter/Paramedic in the Janesville Fire Department. Craig was 1 promoted to Fire Lieutenant on January 8, 2000, and Shift Commander on May 7, 2005.  Craig’s retirement date was December 19, 2011. 4. James F. Karow for twenty-five years of service with the City of Janesville. (File Resolution Number 2012-873).  James will be attending the January 9, 2012, Council meeting.  James began working for the City of Janesville on November 17, 1986, as a Plumbing Inspector in the Code Enforcement Department.  James’ retirement date was December 23, 2011. 5. Robert M. Geschke for thirty-two years of service with the City of Janesville. (File Resolution Number 2012-874).  Robert will be attending the January 9, 2012, Council meeting.  Robert began working for the City of Janesville on October 15, 1979, as a Firefighter/Paramedic in the Janesville Fire Department. Robert was promoted to Fire Lieutenant on January 8, 2000.  Robert’s retirement date was December 29, 2011. Recommendation Staff recommends adoption of File Resolution 2012-870, 2012-871, 2012-872, 2012-873, and 2012-874 2 RESOLUTION NO. 2012-870 Whereas, Douglas L. Miland is retiring from City of Janesville employment after having diligently served the people of the City of Janesville and the community for thirty-two years; retiring as a Lieutenant with the City of Janesville Fire Department; and Whereas, Douglas L. Miland has trained and certified numerous fire department apparatus operators and is known and respected for his expertise and meticulous care of fire equipment and facilities; and Whereas, during Douglas L. Miland’s employment with the City of Janesville, he provided exemplary professional service and demonstrated conscientious devotion to the duties of his position, which he performed with skill and ability, sincerity, honesty, and dedication; and Whereas, it is desired that such commendable service to the City of Janesville be properly recognized; Now, Therefore, Be It Resolved that the people of the City of Janesville, through the City Council, do express their grateful appreciation to Douglas L. Miland for his thirty-two years of loyal public service. th Dated this 9 day of January, 2012. Motion by: ADOPTED: Second by: APPROVED: Councilmember Aye Nay Pass Absent Dongarra-Adams Eric J. Levitt, City Manager Liebert McDonald ATTEST: Rashkin Steeber Jean Ann Wulf, City Clerk-Treasurer Voskuil APPROVED AS TO FORM: Assistant City Attorney Proposed by: Human Resources Prepared by: Human Resources RESOLUTION NO. 2012-871 Whereas, Daniel L. Lynch is retiring from City of Janesville employment after having diligently served the people of the City of Janesville and the community for twenty-eight years; retiring as Utility Director with the City of Janesville Water and Wastewater Utilities; and Whereas, during Daniel L. Lynch’s employment with the City of Janesville, he provided exemplary professional service and demonstrated conscientious devotion to the duties of his position, which he performed with skill and ability, sincerity, honesty, and dedication; and Whereas, during Dan’s employment the City’s water supply and distribution and sanitary sewage collection and treatment infrastructure have been significantly expanded and improved; and Whereas, Dan has been recognized by his peers for his service to his profession; and Whereas, it is desired that such commendable service to the City of Janesville be properly recognized; Now, Therefore, Be It Resolved that the people of the City of Janesville, through the City Council, do express their grateful appreciation to Daniel L. Lynch for his twenty-eight years of loyal public service. th Dated this 9 day of January, 2012. Motion by: ADOPTED: Second by: APPROVED: Councilmember Aye Nay Pass Absent Dongarra-Adams Eric J. Levitt, City Manager Liebert ATTEST: McDonald Rashkin Jean Ann Wulf, City Clerk-Treasurer Steeber APPROVED AS TO FORM: Voskuil Assistant City Attorney Proposed by: Human Resources Prepared by: Human Resources RESOLUTION NO. 2012-872 Whereas, Craig A. Jones is retiring from City of Janesville employment after having diligently served the people of the City of Janesville and the community for thirty-one years; retiring as a Shift Commander with the City of Janesville Fire Department; and Whereas, during Craig A. Jones’s employment with the City of Janesville, he also served as a Firefighter, Driver-Operator, Paramedic, Lieutenant, Rescue-Diver, and Department Safety Officer; and Whereas, Commander Jones has endeavored to improve the level of training and service delivered by the Fire Department, having developed and delivered educational programs in numerous areas including Paramedic and Emergency Medical Technician, Firefighter Recruit training, Incident Management, and communications; and Whereas, during Craig A. Jones’s employment with the City of Janesville, he received numerous commendations, including Paramedic of the Year; providing exemplary professional service and demonstrating conscientious devotion and passion for the occupation that he chose as his profession; and Whereas, it is desired that such commendable service to the City of Janesville be properly recognized; Now, Therefore, Be It Resolved that the people of the City of Janesville, through the City Council, do express their grateful appreciation to Craig A. Jones for his thirty-one years of loyal public service. th Dated this 9 day of January, 2012. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Eric J. Levitt, City Manager Dongarra-Adams ATTEST: Liebert McDonald Jean Ann Wulf, City Clerk-Treasurer Rashkin Steeber APPROVED AS TO FORM: Voskuil Assistant City Attorney Proposed by: Human Resources Prepared by: Human Resources RESOLUTION NO. 2012-873 Whereas, James F. Karow is retiring from City of Janesville employment after having diligently served the people of the City of Janesville and the community for twenty-five years; retiring as a Plumbing Inspector with the City of Janesville Building Services Division; and Whereas, Jim began his employment with the City of Janesville in 1986 and had previously worked as a licensed plumber in the private sector; and Whereas, in addition to his duties as Plumbing Inspector Jim also conducted heating, ventilation and air conditioning inspections; and Whereas, Jim was responsible for inspections in thousands of residential and commercial buildings over his tenure, ensuring safe and code-compliant workmanship; and Whereas, during James F. Karow’s employment with the City of Janesville, he provided exemplary professional service and demonstrated conscientious devotion to the duties of his position, which he performed with skill and ability, sincerity, honesty, and dedication; and Whereas, it is desired that such commendable service to the City of Janesville be properly recognized; Now, Therefore, Be It Resolved that the people of the City of Janesville, through the City Council, do express their grateful appreciation to James F. Karow for his twenty-five years of loyal public service. th Dated this 9 day of January, 2012. Motion by: ADOPTED: Second by: APPROVED: Councilmember Aye Nay Pass Absent Dongarra-Adams Eric J. Levitt, City Manager Liebert ATTEST: McDonald Rashkin Jean Ann Wulf, City Clerk-Treasurer Steeber APPROVED AS TO FORM: Voskuil Assistant City Attorney Proposed by: Human Resources Prepared by: Human Resources RESOLUTION NO. 2012-874 Whereas, Robert M. Geschke is retiring from City of Janesville employment after having diligently served the people of the City of Janesville and the community for thirty-two years; retiring as a Lieutenant with the City of Janesville Fire Department; and Whereas, throughout his career, Robert M. Geschke sought to further his level of proficiency by attending numerous training opportunities, readily sharing his expertise as an instructor for the betterment of the department; and Whereas, Robert M. Geschke effectively and efficiently operated the department breathing apparatus maintenance program; and Whereas, during Robert M. Geschke’s employment with the City of Janesville, he received numerous commendations, including Firefighter of the Year; providing exemplary professional service and demonstrating dedication, determination, and passion toward his profession; and Whereas, it is desired that such commendable service to the City of Janesville be properly recognized; Now, Therefore, Be It Resolved that the people of the City of Janesville, through the City Council, do express their grateful appreciation to Robert M. Geschke for his thirty-two years of loyal public service. th Dated this 9 day of January, 2012. Motion by: ADOPTED: Second by: APPROVED: Councilmember Aye Nay Pass Absent Dongarra-Adams Eric J. Levitt, City Manager Liebert ATTEST: McDonald Rashkin Jean Ann Wulf, City Clerk-Treasurer Steeber APPROVED AS TO FORM: Voskuil Assistant City Attorney Proposed by: Human Resources Prepared by: Human Resources Community Development Department Memorandum Date: January 9, 2011 TO: Janesville City Council FROM: Brad Schmidt, AICP, Associate Planner SUBJECT: Second reading, public hearing, and action on a proposed ordinance amending the City of Janesville Zoning Ordinance to add an exemption to the nonconforming use section for single and two-family historic residential structures (File Ordinance No. 2011-502). SUMMARY The Community Development Department has prepared attached Ordinance No. 2011- 502 which amends Section 18.32.050 of the City’s Zoning Ordinance – Nonconforming Structures and Uses. Currently, if the use of a building classified as nonconforming is abandoned or discontinued for a period of twelve consecutive months, it may not be renewed and any subsequent use of the building must conform to the regulations of the zone district in which the property is located. The intent of this code is to bring nonconforming land uses into conformance with district regulations when that use is discontinued. The proposed amendment will add an exemption to the nonconforming section of the code to allow re-occupancy of historic structures for single and two-family dwelling purposes if the use has been discontinued. The ordinance would only affect structures located within an Historic Overlay District or those buildings individually listed on the National Register of Historic Places. DEPARTMENT RECOMMENDATION The Community Development Department and the Plan Commission recommend that following a public hearing, the City Council support a motion to adopt Ordinance No. 2011-502 amending Section 18.32.050 of the City’s Zoning Ordinance – Nonconforming Structures and Uses. CITY MANAGER RECOMMENDATION The City Manager recommends approval. SUGGESTED MOTION A motion to adopt Ordinance No. 2011-502 amending Section 18.32.050 of the City’s Zoning Ordinance – Nonconforming Structures and Uses. ANALYSIS A. The basic purpose of the nonconforming section of the Zoning Ordinance is to recognize that certain land uses are legally permitted to remain (i.e. grandfathered) even though they may no longer comply with the standards of a particular zone district. Properties classified as nonconforming are typically created at the time a new zoning ordinance is adopted, or rezoning of property remaps the district in which the site is located. Nonconforming properties generally fall into two classifications; nonconforming uses and properties that do not meet the dimensional requirements of the underlying zone district, such as insufficient setbacks, parking availability, greenspace or lot size. This proposed amendment does not impact properties considered nonconforming due to dimensional inadequacies. B. The City of Janesville has an impressively high concentration of historic buildings within the City, many of which are located in or near the Downtown. A majority of these buildings include residential structures that have been continuously used for residential purposes since original construction and most are located in residential zone districts. Others have been converted to an alternative use or included within a non-residential zone district. In instances where a residential use is maintained but the zoning has changed, the property is recognized as legally nonconforming. However, once the residential use is discontinued for a period of twelve consecutive months, it cannot be renewed unless brought into compliance with existing zoning on the property. For certain historic buildings, it is very difficult, if not impractical, to convert the residential structure to an appropriate alternative use. This leaves few options available for reuse of the building beyond a rezoning of the property and rezoning is not always feasible since those actions are required to be consistent with the City’s Comprehensive Plan. C. In an effort to promote the preservation of historic structures which are predominantly residential in character, staff has prepared an amendment that would allow for re-occupancy of nonconforming structures that are individually listed on the National Register of Historic Places or located within an Historic Overlay District. This would be accomplished by amending the “Discontinuance” section of the Zoning Ordinance that applies to nonconforming buildings to create an exemption provision. That provision, as drafted, allows for re-occupancy of historic structures for single and two-family residential dwelling purposes only. D. This amendment will allow historic residential structures to be used for residential purposes even if the property has lost its legal nonconforming status because residential use was discontinued for a period of twelve consecutive months. As a result, the amendment provides more flexibility in the reuse of historic residential structures. There are currently 23 properties individually listed on the National Register of Historic Places and the Court House Hill Overlay District includes approximately 346 properties. The City owns a single-family residential structure located at 2739 Beloit Avenue. This property, referred to as the Hugunin House, is on the National Register of Historic Places. The structure is located on land zoned M1, Light Industrial District and the structure has been vacant for over 12 consecutive months. The Zoning Ordinance currently prohibits the re-establishment of a residential use of the property since that activity is prohibited in the M1 Zone District and the property has lost its legal nonconforming use status. The proposed amendment if approved would allow the Hugunin House to be utilized for single- family dwelling purposes once again. E. This amendment furthers the City’s goals of preserving historic structures which is consistent with the City’s Comprehensive Plan. Additionally, the Comprehensive Plan identifies historic structures as important for maintaining Janesville’s culture and history and improving its quality of life attributes. PLAN COMMISSION ACTION – 19 DECEMBER 2011 Brad Schmidt, Associate Planner, presented the written staff report. Commissioner Voskuil asked who was requesting this text amendment and how many properties would it affect. Cherek responded that the Administration is requesting the text amendment and that the ordinance was written to pertain only to structures individually listed on the National Register, or within the Courthouse Hill Overlay District, which includes approximately 300 structures in total. Cherek added, however, that the scope of application is fairly limited because a majority of those properties are zoned residential or office where single or two-family uses are already permitted. Cherek said that the amendment is consistent with the Comprehensive Plan and will allow some ability for continued residential use of those buildings as they were originally designed and utilized. The public hearing was closed. Commissioner Madere asked if the text amendment applies only to the discontinuance of nonconforming uses section of the ordinance and Cherek stated that it did. Commissioner Madere asked if the building at 2739 Beloit Avenue (which could benefit from this ordinance amendment) could be moved to a different location and Cherek stated that because of the size, age and structural condition of the building, it would be impractical and unfeasible. There was a motion by Commissioner Consigny with a second by Commissioner Madere to forward the proposed zoning ordinance text amendment to the City Council with a favorable recommendation. Commissioner Consigny commented that he felt the house at 2739 Beloit Avenue represents the difference between a truly historic piece of property and a property that is old. He further stated that when a historic property such as this is converted from residential to commercial, conversion back to a residence should be supported. The motion carried on a 6-0-0 vote. FISCAL IMPACT The proposed zoning text amendment would allow historic residential structures to be re-established for single and two-family residential occupancy under the Nonconforming Use section of the Zoning Ordinance. This provision would impact only those properties located within an Historic Overlay District or buildings which are individually listed on the National Register of Historic Places. Because of its limited application, the fiscal impact associated with this amendment is expected to be very nominal; however, it would provide those historic properties eligible under the ordinance with greater flexibility in reuse in a manner consistent with the original building design and traditional occupancy. Accordingly, Staff believes this may encourage reinvestment and on-going historic preservation of those properties. cc: Duane Cherek ORDINANCE NO. 2011-502 An ordinance amending the City’s Zoning Ordinance with regard to the nonconforming discontinuance section by adding an exemption to this section for historic single and two-family residential structures of JGO Chapter 18, with penalties for violations thereof as set forth as applicable in JGO 18.28. THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS FOLLOWS: SECTION I. Section 18.32.050 of the Code of General Ordinances of the City of Janesville is hereby amended to read as follows: 18.32.050 NONCONFORMING BUIDLINGS, STRUCTURES AND USES. E. Discontinuance. If the nonconforming use of a building, structure, or premises is discontinued for a continuous period of twelve months, it shall not be renewed and any subsequent use of the building, structure, or premises shall conform to the regulations of the district in which such building, structure, or premises is located. Exempt from this section are single and two-family residential structures used for residential purposes which are individually listed on the National Register of Historic Places or single and two-family residential structures used for residential purposes within a Historic Overlay District. 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 McDonald Dongarra-Adams Eric J. Levitt, City Manager Rashkin Steeber ATTEST: Liebert 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 DEPARTMENT OF PUBLIC WORKS MEMORANDUM December 27, 2011 TO: City Council FROM: John Whitcomb, Operations Director SUBJECT: Second Reading, Public Hearing, and Action On a Proposed Ordinance Amending the City’s Solid Waste Ordinance to Increase Sanitary Landfill Fees (File Ordinance 2011-505) Summary File Ordinance 2011-505 amends Janesville General Ordinance 8.64 (Solid Waste and Recycling). Specifically, the proposed Ordinance increases the tipping fee at the Sanitary Landfill, from the current rate of $33.00 per ton to $35.00 per ton, effective January 10, 2012. Per vehicle disposal rates are increased proportionally. The increase is consistent with City Council direction during their review of the 2012 Sanitation Fund budget. Staff Recommendation Staff recommends the City Council adopt the proposed Ordinance increasing sanitary landfill fees from $33.00 per ton to $35.00 per ton, including proportional increases in per vehicle disposal rates. Recommended Motion Move to adopt File Ordinance 2011-505, increasing landfill tipping fees from $33.00 per ton to $35.00 per tons, and increasing per vehicle disposal rates proportionally. City Manager Recommendation The City Manager recommends approval. Background Based upon projected costs and the tons of waste expected to be disposed at the City’s sanitary landfill in 2012, the 2012 Proposed Sanitation Fund budget included an increase in landfill tipping fees of $1.00 per ton in 2012 – from $33.00 per ton to $34.00 per ton. The proposed fee would be sufficient to ensure costs associated with the landfill are fully recovered, and was calculated utilizing historical methods. During discussion of the 2012 Proposed Budget, the City Council directed the tipping fee be increased by an additional $1.00 per ton above the budgetary proposal – up to $35.00 per ton. This was done to reduce the amount of Sanitation Fund balance that is projected to be drawn down in 2012. The fund balance drawdown is related to expenditures in excess of revenue in both the solid waste collection and recycling programs. ORDINANCE NO. 2011-505 An ordinance amending Chapter 8.64 Solid Waste and Recycling Subsection II, Section 8.64.150, Fee Schedule. THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS FOLLOWS: SECTION I. Sections 8.64.150(A), and (B) of the Code of General Ordinances of the City of Janesville are hereby amended to read as follows: 8.64.150 FEE SCHEDULE A. For all materials hauled to the Sanitary Landfill in vehicles other than City of Janesville owned vehicles, excluding special wastes and wastes used as daily cover, the fee charged shall be the greater of: Thirty five dollars and Thirty three dollars and 00/100 cents ($33.00) 00/100 cents ($35.00) per ton, or B. The following applicable minimum fee regardless of the actual weight deposited: four 1. Passenger cars, three dollars and seventy five cents ($3.75) dollars and 00/100 cents ($4.00); 2. Station wagons, mini-vans and sport utility vehicles, five dollars and five dollars and twenty five cents ($5.25); 00/100 cents ($5.00) 3. Vans, mid-size pickup trucks and trailers with a capacity of two cubic eight dollars and fifty cents yards or less, eight dollars and 00/100 cents ($8.00) ($8.50); 4. Full size pickup trucks and trailers with a capacity of more than two twelve dollars and 00/100 cubic yards, eleven dollars and twenty five cents ($11.25) cents ($12.00); 5. All other vehicles and trailers, including those which have been modified to increase capacity beyond standard capacity, thirty three dollars and 00/100 thirty five dollars and 00/100 ($35.00). cents ($33.00) SECTION II. This ordinance and its fees shall take effect at 12:00 o’clock a.m. on January 10, 2012, the public interest, welfare, benefit and good so requiring, and the Common Council so finding. 1 ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Dongarra-Adams Eric J. Levitt, City Manager Liebert McDonald ATTEST: Rashkin Steeber Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: Assistant City Attorney Proposed by: Operations Division Prepared by: Operations Division 2 Economic Development Department Memorandum January 9, 2012 TO: City Council FROM: Vic Grassman, Economic Development Director SUBJECT: Authorization for the City Manager to Enter into a TIF Development Agreement with Helgesen Development to Facilitate the Relocation of Miniature Precision Components into TIF District #22 Executive Summary Miniature Precision Components (MPC), located at 820 Wisconsin St., Walworth, WI has tentatively signed a ten year lease with Helgesen Development for 250,000 sq. ft. at 2929 Venture Dr., Janesville. This lease is contingent upon City and state incentives. MPC intends to create 90 new jobs within three years and would like to begin production by March 31, 2012. (Job estimates include 46 new jobs in Year 1, 27 in Year 2 and 17 in year 3) Manufacturing salaries range from $12.57 - $17.30 /hr. plus benefits. Capital investment at the above facility is estimated at $2.3 million over the three year period. MPC (www.mpc-inc.com) with headquarters in Walworth, WI, is a manufacturer of thermoplastic components and is a Tier 1 supplier to the auto industry. The company currently has several Wisconsin operations (Richland Center, Prairie du Chien and Delavan) as well as Southfield, MI, Nogales, AZ and Santa Ana, Sonora Mexico. The company has over 1,400 employees with 1,000 in Wisconsin. Recommended Motion I move to authorize the City Manager to enter into a TIF Development Agreement consisting of a forgivable loan equal to $1 per square foot leased with Helgesen Development to facilitate the relocation of Miniature precision Components into TIF District #22. City Manager’s Recommendation: The City Manager recommends approval. Economic Director’s Recommendation I recommend that a forgivable TIF loan of $250,000 be offered to this company. The offer would be structured so that the loan would go to Helgesen Development which would guarantee the jobs. MPC would then reimburse Helgesen Development for any loan payments due because of missed employment objectives. A lien would be placed on the building as potential collateral. This is based on the following:  This recommendation is consistent with the Council’s TIF guidelines of $1.00 per square foot leased.  These will be new jobs with salaries and benefits that are consistent with other manufacturers in Janesville.  This will create a positive economic development event for Janesville as well as a media opportunity.  The lease is contingent upon City and state incentives. An application has already been sent to the WI Economic Development Corp. and as of 12/21/2011, a preliminary award of $345,000 in tax credits and a low interest loan has been offered. Analysis These funds would be taken out of TIF 22. Including this forgivable TIF loan, TIF 22 is projected to break-even in Year 17 (2015) and by its final year (2023) it is expected to have a positive balance of $3.8 million. cc: Eric Levitt Jacob Winzenz Duane Cherek Resolution 2012-879 A Resolution Approving a TIF 22 Development Loan Agreement and Promissory Note With Miniature Precision Components for $250,000 WHEREAS, the Common Council of the City of Janesville created Tax Incremental Finance District No. 22 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 industrially zoned properties; retain and increase employment; construct, renovate and expand industrial facilities; and otherwise provide for the overall economic health, welfare, vitality, and good of the community; and WHEREAS, the Project Plan for TIF District 22 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, Miniature Precision Components (MPC) is a thermoplastic manufacturer and Tier 1 supplier to the auto industry, conducting its principal business at 820 Wisconsin St., City of Walworth, County of Walworth, State of Wisconsin, currently employing over 1,400 persons with 1,000 in Wisconsin, and has tentatively signed a ten (10) year lease with Helgesen Development for 250,000 sq. ft. at 2929 Venture Dr., Janesville (“Facility’), contingent upon City and state incentives. MPC intends to create 90 new jobs within three years and would like to begin production by March 31, 2012. Job estimates include 46 new jobs in Year 1, 27 in Year 2 and 17 in year 3. Manufacturing salaries range from $12.57 - $17.30 /hr. plus benefits. Capital investment at the above facility is estimated at $2.3 million over the three year period; and WHEREAS, MPC and Helgesen jointly and severally promise to upgrade, renovate, and operate the Facility, create and maintain new employment at MPC’sJanesville Facility, and otherwise benefit and add value to the City, TIF District, and the City’s tax base; and WHEREAS, MPC has requested forgivable TIF 22 loan in the amount of Two Hundred Fifty Thousand and 00/100 Dollars ($250,000), upon the terms, in the manner, and otherwise in consideration of a standard Janesville TIF economic development forgivable loan, such that the City’s offer would be structured so that the loan would go to Helgesen Development which would guarantee the jobs. MPC would then reimburse Helgesen Development for any loan payments due because of missed employment objectives. A lien would be placed on the building as potential collateral. The remaining terms and provisions of the loan would be the City’s standard loan provisions, which are reiterated and incorporated herein by reference as if fully set forth verbatim; and WHEREAS, TIF 22 is projected to break-even in Year 17 (2015) and by its final year (2023) it is expected to have a positive balance of $3.8 million; and WHEREAS, there are currently sufficient positive fund balances in the TIF District 22 improvement and overall project accounts, and these expenditures fall within the allowable time and scope for said Development Agreement and expenditures; and WHEREAS, the Common Council hereby find that the City Administration has negotiated the TIF Development Loan Agreement and Promissory Note with MPC 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. 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 City’s above described Development Loan Agreement and Promissory Note once finalized are also reiterated and incorporated herein by reference as if fully set forth verbatim; and 3. The MPC TIF 22 Development Loan Agreement and Promissory Note, and all expenditures, terms, conditions, promises, obligations, 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, as from time to time amended by the City Manager; and 4. The City Manager and/or his designee(s) is/are hereby authorized to execute, enter into, and effectuate the TIF 22 Development Loan Agreement and Promissory Note with MPC on behalf of the City of Janesville; and 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, and/or above all the intent and/or purposes of this Resolution. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent 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 Prepared by: City Attorney NEIGHBORHOOD SERVICES MEMORANDUM December 22, 2011 TO: City Council FROM: Jennifer Petruzzello, Neighborhood Services Director SUBJECT: Action on a proposed resolution authorizing the filing of an application, in cooperation with the County of Rock, for a U.S. Department of Housing and Urban Development 2012 Lead-Based Paint Hazard Control Grant. (File Resolution #2012-877) Summary: The City has previously and successfully partnered with Rock County on two Lead- Based Paint Hazard Control Grant Programs. The first two grants were awarded by HUD in 2006 and 2009 and resulted in a total of 2.2 million being allocated to Rock County, the City of Beloit and the City of Janesville. Rock County has approached both the City of Janesville and the City of Beloit about our interest in submitting an application for additional grant funding under the U.S. Department of Housing and Urban Development, Office of Healthy Homes and Lead Hazard Control. If funding were awarded, it would be divided in equal amounts between the three (3) agencies. If fully funded, the City would receive approximately $500,000 over 3 years to assist 30 dwelling units to become lead safe. As part of the application, each agency must commit to a minimum amount of local match. Community Development Block Grant (CDBG) revolving loan, CDBG entitlement funds, Neighborhood Stabilization Funds, and the value of staff project coordination time can be used as our portion of the match. Funding would be available to reduce or eliminate lead hazards in income eligible rental housing and owner occupied housing. Priority will be given to assist dwellings occupied by children under six years of age with documented lead poisoning to protect them from further lead exposure. Department Recommendation The Neighborhood Services Department recommends that the City Council approve File Resolution #2012-877 authorizing the filing of an application in cooperation with the County of Rock, for a U.S. Department of Housing and Urban Development 2012 Lead- Based Paint Hazard Control Grant. City Manager Recommendation The City Manager recommends approval. 1 Suggested Motion I move to approve File Resolution #2012-877 authorizing the filing of an application in cooperation with the County of Rock, for a U.S. Department of Housing and Urban Development 2012 Lead-Based Paint Hazard Control Grant. Request Rock County has requested that the City of Janesville consider joining them in submitting a grant application for funding from the Lead-Based Paint Hazard Control Program. The City of Janesville would be a subgrantee of this application, meaning that Rock County would serve as the lead agency. Background/Analysis: Lead-based paint is a significant problem in the United States and resulted in the banning of lead from paint in the early 1970’s. By 1978, the supply of lead-based paint had been exhausted and housing built after that date is considered to be lead-safe. In the United States alone, nearly 1 million children under the age of six (6) have lead levels in their blood high enough to impair their ability to think, concentrate and learn. Lead can damage a child’s kidneys and central nervous system, and cause anemia, coma, convulsions and even death. In the City of Janesville there are approximately 15,000 housing units constructed prior to 1978. In our housing rehabilitation programs, the City is required to identify the lead hazards in a dwelling unit and take appropriate measures to mitigate the risks of lead exposure. Unfortunately, the additional requirements and costs associated with addressing the lead-based paint issue may make participating in the City’s housing rehabilitation programs less attractive to low to moderate income property owners. The City has previously and successfully partnered with Rock County on two Lead- Based Paint Hazard Control Grant Programs. The first two grants were awarded by HUD in 2006 and 2009 and resulted in a total of 2.2 million being allocated to Rock County, the City of Beloit and the City of Janesville. In addition to the Lead Hazard Control Grants, the City of Janesville has some additional history of partnering with Rock County and the City of Beloit to receive federal grant funds. Most notable of these is the Rock County HOME Consortium, which was formed for the purposes of receiving HOME Investment Partnership Program funds on an annual basis. This Consortium has allowed the cities of Janesville and Beloit, as well as Rock County to receive a consistent source of funds to support our housing programs as opposed to competing against each other for HOME funds awarded by the State of Wisconsin. If this grant application is funded by the U.S. Department of Housing and Urban Development (HUD), funding would be available to the cities of Beloit and Janesville, as well as Rock County to reduce the hazards of lead-based paint. The grant award would be divided equally between the parties making 1/3 of the grant funds available to the City of Janesville. If fully funded, the City would receive approximately $500,000 over 3 years to assist 30 dwelling units to become lead safe. 2 As part of the application, each agency must commit to a 25% local match. Community Development Block Grant (CDBG) revolving loan, CDBG entitlement funds, Neighborhood Stabilization Funds, and the value of staff project coordination time can be used as our portion of the match. It is anticipated that 15% of the match will be passed along to property owners through deferred loans, installment loans, and cash contributions. The remaining 10% match is anticipated to be met through the value of staff project coordination. The timeframe for the expenditure of these grant funds is three (3) years. This program would be available to both owner-occupied as well as rental properties. However, in order to be eligible the housing unit must be occupied by low-moderate income family. Priority will be given to households with a child under the age of six (6) with elevated blood lead levels. Staff expects to work closely with the Rock County Health Department in identifying properties containing a child with an elevated blood level of lead. In order to encourage participation, grant funds from the Lead-Based Hazard Control Grant Program will be structured as a deferred payment forgivable loan. Participation in the Lead-Based Paint Hazard Reduction Grant Program would bring additional financial resources to the City of Janesville to address lead hazards in our housing stock, which will enable us to stretch our CDBG and HOME rehabilitation dollars further. Housing staff is experienced in working to reduce lead hazards, and this program would be administered in a similar manner as our current grant. Addressing lead hazards is consistent with the Consolidated Plan and the 2012 Action Plan, which outline actions to be taken to evaluate and reduce lead-based paint hazards and integrate these actions into housing policies and programs. Given the short time frame between the notice of funding and the application deadline, the Community Development Authority has not made a recommendation regarding this application. However, the CDA was informed of the application at their December 7, 2011 meeting. The application is similar in size and scope to that recommended by the CDA in May 2011. Attachment: Resolution #2012-877 cc: Eric Levitt, City Manager Jay Winzenz, Assistant City Manager/Director of Administrative Services 3 RESOLUTION NO. 2012-877 A RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION IN COOPERATION WITH THE COUNTY OF ROCK FOR A U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2012 LEAD-BASED PAINT HAZARD CONTROL GRANT WHEREAS , the County of Rock has proposed to apply for a Lead Hazard Control Grant from the U. S. Department of Housing and Urban Development in the amount of $1,700,000; and WHEREAS, housing built before 1978 is likely to have some level of lead paint hazards and the City of Janesville has over 15,000 housing units built prior to 1978; and WHEREAS, lead hazard control work is required for all of the housing rehabilitation programs offered by the City of Janesville and the receipt of Lead Hazard Control Grant funds would supplement existing funding for housing rehabilitation activities; and WHEREAS, Rock County proposes that the City of Janesville enter into a cooperative agreement including the division of labor and funds approximately one-third City of Janesville, one-third City of Beloit, and one-third Rock County; and WHEREAS, a minimum of a 25% match is required for the grant and this match will be met by Community Development Block Grant and Neighborhood Stabilization rehabilitation program funds and in-kind staff contributions; and WHEREAS , the Common Council of the City of Janesville finds it is in the best interest of the community to facilitate these preservation activities. NOW, THEREFORE BE IT RESOLVED by the Common Council of the City of Janesville that it authorizes and directs the City Manager to participate in a cooperative agreement for an application to the U. S. Department of Housing and Urban Development, including all certifications and that the City Manager is authorized to act in connection with the application and to provide such additional information as may be required and to administer the program in accordance with all applicable State and Federal regulations. BE IT FURTHER RESOLVED, that Community Development Block Grant Program Revolving Loan funds and Neighborhood Stabilization program funds and in-kind staff contributions are hereby committed to meet the minimum match requirement of 25% of the City’s share of the Lead Hazard Control Grant funding. BE IT FURTHER RESOLVED, that the City Manager, and his designees, are hereby authorized to negotiate, draft, prepare, execute, file and modify such other documents, papers and agreements ancillary and/or pertaining thereto and, from time to time, to take and/or make whatever other minor actions and/or minor modifications to the above described agreements as the City Manager and/or his designee may deem necessary and/or desirable to effectuate the purposes of such agreements and the intent of this resolution. ADOPTED: Motion by: Second by: APPROVED: CouncilmemberAyeNayPassAbsent Dongarra-Adams Eric J. Levitt, City Manager Liebert McDonald ATTEST: Rashkin Steeber Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: Wald Klimczyk, City Attorney Proposed by: Community Development Authority Prepared by: Neighborhood Services Director DEPARTMENT OF PUBLIC WORKS MEMORANDUM December 29, 2011 TO: City Council FROM: John Whitcomb, Operations Director SUBJECT: Action on a Proposed Resolution Authorizing Expenditures for the Conversion to Automated Collection of Trash and Recyclables (File Resolution No. 2012-878) Summary File Resolution No. 2012-878 authorizes the City Administration to expend up to $3,150,000 to facilitate the conversion from manual collection of trash and recyclables to fully automated collection. The funds will be utilized for collection equipment upgrades and the purchase of wheeled carts necessary for automation. The Resolution also commits the City Council to borrowing up to this same amount in the 2012 General Obligation Note Issue. Staff Recommendation Following Council discussion, staff recommends the City Council adopt the proposed File Resolution. Recommended Motion I move to adopt File Resolution No. 2012-878 City Manager Recommendation This item was approved during the 2012 budget. In order to facilitate the conversion the City staff needs authorization from the Council to fully automate collection. Background The 2012 Sanitation Fund budget adopted by the City Council provides for the conversion of the City’s waste collection programs from manual collection to fully automated collection. The anticipated date of conversion is October 1, 2012. The conversion requires capital expenditures to upgrade waste collection equipment and for the purchase of wheeled carts which will be distributed to each unit receiving collection service from the City. These capital expenditures are estimated to total $3,150,000 and funds will need to be expended prior to the City Council’s action on the 2012 General Obligation Note Issue. The proposed Resolution authorized the Administration to proceed to expend the capital funds at this time, and commits the City Council to include an amount not to exceed $3,150,000 in the 2012 General Obligation Note Issue. 1 Specifically, the expenditure estimates are as follows:  $2,780,000 48,000 wheeled carts; 2 carts for each collection stop - . This includes costs for the vendor to distribute carts to each household.  $100,000 Retrofit of four existing collection vehicles - . These vehicles were ordered and constructed so they could be retrofitted for automated collection.  Upgrade costs for five existing collection vehicles scheduled for $170,000 replacement in 2012 - . This represents the difference between available funding in the Vehicle Operation and Maintenance (VOM) replacement fund for manual trash collection vehicles and the higher cost of the automated collection equipment.  Two existing collection vehicles not scheduled for replacement in 2012 will be sold or traded and replaced with one automated collection vehicle – net $100,000 cost . Recommendation Staff recommends the Council adopt File Resolution No. 2012-878. 2 RESOLUTION NO. 2012- 878 A Resolution authorizing the City Administration to expend funds to provide for the conversion to automated collection of residential trash and recyclables. WHEREAS, the City of Janesville currently utilizes municipal employees to manually collect residential trash and recyclables; and WHEREAS, the Common Council have expressed a desire to convert from the manual collection of residential trash and recyclables to fully automated collected of residential trash and recyclables; and WHEREAS, the conversion from manual collection to fully automated collection is in the best interests and benefit of the City in that it is anticipated to significantly reduce worker injuries and improve service to the citizens of Janesville; and WHEREAS, the Common Council anticipate the conversion to automated collection of residential trash and recyclables through their adoption of the 2012 Sanitation Fund budget; and WHEREAS, certain capital costs will be incurred to provide for the conversion to automated collection of residential trash and recyclables; such cost currently is estimated at $3,150,000 for collection equipment upgrades and the provision of collection carts to residential and other specific customers; and WHEREAS, the Common Council intend to include capital funding through the 2012 tax exempt promissory note issue to facilitate the conversion from manual collection of residential trash and recyclables to fully automated collection of residential trash and recyclables. NOW, THEREFORE BE IT RESOLVED, by the Common Council of the City of Janesville that they hereby approve and authorize the City Administration to expend funds not to exceed $3,150,000 to support the conversion from manual collection of residential trash and recyclables to fully automated collection of residential trash and recyclables; said funds to be utilized to upgrade collection equipment and to provide collection carts to residential and other specific customers. No funds from sources other than 2012 tax exempt obligation promissory note issue are, or are expected to be, reserved, allocated on a long-term basis, or otherwise set aside by the City for the conversion, except as permitted by the Internal Revenue Code of 1986. 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 the Treasury Regulation Section 1.150-2. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Dongarra-Adams Eric J. Levitt, City Manager Liebert McDonald ATTEST: Rashkin Steeber Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: Wald Klimczyk, City Attorney Proposed by: Operations Division Prepared by: Operations Division Option Cost Summary - Combined Trash Collection, Disposal and Recycling Programs Full Automation Automation Full Maintain Automation of Recycling of Recycling Automation Current With Bi-Only with Bi-Only with With Monthly SystemWeekly Weekly Monthly Recycling RecyclingCollectionCollection Total Cost of Programs $ 2,226,228$ 2,300,144$ 2,117,144$ 2,350,419$ 2,165,332 Revenue From Sale of Materials and Grants $ (428,000)$ (455,832)$ (441,564)$ (455,832)$ (441,564) Net Cost of Programs$ 1,798,228$ 1,844,312$ 1,675,580$ 1,894,587$ 1,723,769 Full Year Net Monthly Cost Per Unit (2012 Dollars)$ 6.38$ 6.55$ 5.95$ 6.73$ 6.12 2012 Budget With 10/1/12 Implementation$ 6.18$ 6.04$ 6.35$ 6.20 n/a Total Capital Required$ 3,154,000$ 3,054,000$ 1,512,000$ 1,482,000 n/a Major Assumptions & Notes Cost/HH for automated options includes capital borrowing + interest Figures include all recycling program expenditures and revenues All options result in a reduction in the number of collection employees required Holiday collection under full automation options would need to change Collection of Christmas trees may not be possible with automation; 20% increase in recyclables collected under automated bi-weekly collection; 10% increase with automated monthly collection Revenue reflects new contract with Rock Disposal and includes cost to transfer materials to their processing facility Monthly recycling costs assume only one recycling cart per household; additional carts will likely be required under this option All carts assumed to be approximately 95 gallons in capacity CLERK-TREASURER’S OFFICE MEMORANDUM January 3, 2012 TO: City Council FROM: Jean Ann Wulf, Clerk-Treasurer SUBJECT: Action on a Potential Spring Primary for City Council on February 21, 2012 State Statute 8.11 states that if the number of candidates in a City election exceeds twice the number to be elected, the governing body may decide whether to hold a primary. As of the January 3, 2012 filing deadline, 9 candidates have achieved ballot status for the four City Council seats. The following are the candidates: Jim Farrell, Matthew Kealy, Billy R. McCoy, Andy Murray, DuWayne Severson, Angela Smillie, Michael F. Southers, Kathleen Voskuil, and Troy Zimdars. If a primary is held on February 21, 2012, the 8 candidates with the most votes would have their names placed on the April 3, 2012 ballot and the remaining candidate would no longer have ballot status. In 2008, we had 11 City Council candidates competing for 3 seats. The Council voted to hold a primary and 5 candidates did not move forward to the April election. The Council voted not to hold a primary in 2000, 2001, 2003, 2006 and 2009. The State Elections Board has informed us that a spring primary is scheduled for February 21, 2012 for Circuit Court Judge. The Clerk-Treasurer’s Office included funds ($15,250) in the 2012 budget for this primary. The additional cost to the City to include the City Council race on this ballot would be insignificant. The City Clerk-Treasurer’s Office requests that the City Council make the decision on whether to hold a primary for City Council on February 21, 2012. City Manager Recommendation Based on the number of candidates who have filed for a Council seat and the fact that four seats will be elected, I recommend not holding a primary because it would only eliminate one candidate for the General Election. cc: Eric J. Levitt, City Manager Jay Winzenz, Director of Administrative Services 1 Economic Development Memorandum Date: January 4, 2012 TO: Janesville City Council FROM: Vic Grassman, Economic Development Director SUBJECT: Introduce and Refer to Plan Commission for a Public Hearing a Proposed Resolution Amending the Boundary and Project Plan of TIF District No. 35. (File Resolution No. 2012-875) ______________________________________________________________________ I. Summary City staff is proposing an amendment to TIF No. 35 to add approximately 84 acres of vacant land adjoining the southwest portion of the existing TIF boundary. After introduction, the City Council should refer the Amendment to the Project Plan to the Plan Commission for the required public hearing and recommendation. The resolution approving the Amendment to the TIF District will return to the Council Agenda for consideration on February 13, 2012. II. TIF Amendment Procedures Wisconsin’s Tax Increment Law (§ 66.1105) sets forth a specific procedure for amending the boundary of a TIF district. The Plan Commission must hold a public hearing, preceded by a Class 2 public notice. The required hearing is planned for February 6, 2012. The Plan Commission will then make a recommendation to the City Council, on the proposed TIF boundary and Project Plan amendment. Following review by the Plan Commission, the Council may act on a resolution amending the TIF boundary and Project Plan. Wisconsin Statutes also require that a Joint Review Board composed of representatives from the City, the School District, the County, the Vocational District, and a fifth member chosen at large, meet and approve the amendment to the TIF district within 30 days of Council action. III. Amendment No. 1 toTIF No. 35 TIF No. 35 currently contains a 226-acre parcel of land at the southwest corner of STH 11 and Beloit Avenue that was created to attract potential industrial developments and contains a certified industrial site which provides potential developers a site that is “shovel ready”. Proposed Amendment No. 1 will modify the TIF No. 35 boundary to add an additional 84 acres of vacant land adjoining the southwest portion of the existing TIF boundary. Since 2009 the City has had an option to purchase an additional 84 acres of land to the south of the existing TIF 35 to accommodate future industrial development. With the option set to expire on December 31, 2011, the City executed the option to purchase the additional 84 acres of land at their December 22 Meeting. Upon annexation, this land will be zoned M-1 Light Industrial and included within the boundaries of TIF No. 35 by approval of Amendment No. 1 to the TIF No. 35 Project Plan. IV. Recommendation The City of Janesville has successfully used tax increment financing as an economic development tool. With the poor state of the national economy, Janesville needs to remain aggressive in pursuing all development opportunities. Staff recommends that the Council introduce the Amendment No. 1 to the Project Plan for TIF No. 35 and refer it to the Plan Commission for a public hearing and recommendation. V. City Manager Recommendation nd Based on the action taken by the City Council on December 22, the City Manager recommends approval. Attachments: Amendment No. 1 - TIF No. 35 Project Plan Resolution 2012-875 Cc Eric Levitt, City Manager Jay Winzenz, Director of Administrative Services Resolution No. 2012-875 RESOLUTION APPROVING AMENDMENT NO. 1 TO THE PROJECT PLAN FOR TAX INCREMENT FINANCE DISTRICT NO. 35 WITHIN THE CITY OF JANESVILLE, ROCK COUNTY, WISCONSIN WHEREAS, the Common Council of the City of Janesville adopted Resolution No. 2011-816 on August 22, 2011, creating the City of Janesville Tax Increment Finance District No. 35 in accordance with the provisions of Wisconsin Statutes Section 66.1105; and WHEREAS, the City of Janesville Administration is now proposing Amendment No. 1 to the Project Plan for TIF No. 35 revising the project budget and amending the TIF No. 35 boundary to include an additional 84 acres of industrial land; and WHEREAS, the Janesville Plan Commission has held a public hearing on proposed Amendment No. 1 to the Project Plan of Tax Increment District No. 35 and the proposed new boundaries of the Amended TIF district on the 6 day of February, 2012, and found both proposed amendments to be acceptable and consistent with the long range plans of the City and its best interests; and WHEREAS, the Chief Executive Office of the Janesville School District, Rock County Board, Blackhawk Technical College, and other entities having the power to levy taxes upon the property located within the proposed Tax Increment District No. 35 have been notified of the proposed Amendment to the Project Plan for TIF No. 35, pursuant to Section 66.1105 (4)(a) and (e), Wisconsin State Statutes; and WHEREAS, Tax Increment Finance District No. 35, as amended, is declared to be an “industrial TIF district”, where more than 51% of the land is currently zoned M-1 Industrial and has been found suitable for industrial development within the meaning of Section 66.1101, Wisconsin State Statutes, and will remain zoned for industrial purposes for the life of the TIF District; and WHEREAS, the project costs directly serve to promote industrial development, consistent with the purpose for which the TIF District was created, and the improvement of the proposed additional areas for industrial projects will significantly enhance the value of all property within the City of Janesville; and WHEREAS, the equalized value of taxable property within the amended boundaries of TIF No. 35 plus the value increment of all existing Janesville TIF Districts does not exceed twelve percent (12%) of the total equalized value of property within the City of Janesville; and WHEREAS, the amended Project Plan for Tax Increment District No. 35 is economically feasible and in conformity and has been found to be in accordance with the City’s Resolution No. 2012-875 TIF 35 Amendment No. 1 Page 2 General Development Plans, Zoning Ordinance, and other relevant policies; and that implementation of the improvements as set forth in the Amended TIF No. 35 Project Plan is in the best interest of the City of Janesville and for the benefit of its residents and taxpayers. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville that they hereby approve Amendment No. 1 to the Project Plan for City of Janesville Tax Increment Finance District No. 35, and refer Amendment No. 1 to a Joint Review Board for review and approval according to Wisconsin Statutes. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Dongarra-Adams Liebert Eric J. Levitt, City Manager McDonald Rashkin ATTEST: Steeber Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: Wald Klimczyk, City Attorney Proposed by: City Manager Prepared by: Community Development TAX INCREMENT FINANCE DISTRICT No. 35 PROJECT PLAN Adopted August 22, 2011 AMENDMENT No. 1 February 13, 2012 Prepared By: Economic Development Agency Accounting Division City Manager’s Office City of Janesville, Wisconsin 18 N. Jackson St. Janesville, WI 53545 CITY OF JANESVILLE TAX INCREMENT FINANCE DISTRICT No. 35 TABLE OF CONTENTS I. WISCONSIN TAX INCREMENT LAW AND PROCESS ........................ 1 II. TIF No. 35 PLAN OBJECTIVES ......................................................... 2 III. BOUNDARIES OF TIF No. 35 ......................................................... 3 IV. EXISTING ZONING AND PROPOSED LAND USES ............................. 6 V. PROPOSED TIF PUBLIC WORKS PROJECTS AND .............................. 10 IMPROVEMENTS VI. DETAILED LIST OF ESTIMATED PROJECT COSTS ........................... 12 VII. ECONOMIC FEASIBILITY AND METHODS OF FINANCING ............. 16 VIII. PROPOSED CHANGES IN ORDINANCES, CODES, & PLANS ............ 20 IX. LIST OF ESTIMATED NON-PROJECT COSTS ...................................... 21 X. METHODS FOR RELOCATION OF DISPLACED PERSONS ................ 21 XI. PROMOTION OF THE ORDERLY DEVELOPMENT ........................... 21 MAPS 1. Map 1 TIF No. 35 Boundary Map ……………. ......................................... 5 2. Map 2 TIF No. 35 Zoning ......................................................... 8 3. Map 3 TIF No. 35 Existing Conditions and Land Use ................................ 9 4. Map 4 TIF No. 35 Proposed Improvements ................................................ 14 5. Map 5 TIF No. 35 Property Within ½ Mile of Boundary............................. 15 LEGAL AND PROCEDURAL 1. Legal Opinion From City Attorney on Project Plan 2. TIF No. 35 Plan Adoption and Creation Resolutions 3. Joint Review Board Resolution City of Janesville Tax Increment Finance District No. 35 Project Plan WISCONSIN TAX INCREMENT LAW AND PROCESS I. Under Wisconsin Statutes Section 66.1101 (1), the State declared that the policy of the State is "to encourage and promote the development of industry to provide greater employment opportunities and to broaden the State's tax base to reduce the tax burden of residents and homeowners." Locally, the City of Janesville has adopted an Economic Development Policy designed to "diversify the economic base of the City through the retention and expansion of existing businesses ...” In addition, the City seeks to attract new industries through the creation of fully improved industrial parks. One tool designed to help stimulate new development is "Tax Increment Financing (TIF)". When the State Legislature enacted the Tax Increment Law (ss 66.1105) in 1975, they found, "that the accomplishment of the vital and beneficial purposes of the Promotion of Industry Statute (ss 66.1101) is being frustrated by the lack of incentives and financial resources." One stated purpose of the Tax Increment Law, "is to create a viable procedure by which a city or village, through its own initiative and efforts, may finance projects which will tend to accomplish," the promotion of industry. The Tax Increment Law allows a community to recapture the costs of public expenditures made to stimulate new development, from the property taxes generated by the new development. Fundamental to the TIF law is the concept that new development will benefit an area broader than the municipality in which the development occurs. However, an inequity occurs because the community is left to finance the entire cost of public expenditures needed to facilitate the development. The TIF law recognizes that without the TIF expenditures, the development could not have occurred. 1 Thus, the TIF law provides that all property taxes levied on increased property value within a TIF district are retained by the community to finance the public expenditures made within the TIF district. The base value (the value that existed at the time the TIF district is created), however, continues to provide same level of revenues to other taxing jurisdictions. Once all of the public expenditures have been repaid, all taxing jurisdictions can collect taxes levied on the new property value. State statutes are very specific as to how a TIF district is created. First, a TIF project plan is developed and presented to the Plan Commission for a formal public hearing. The Commission makes a recommendation on the TIF project plan to the City Council. The Council then must pass a resolution adopting the TIF project plan and establishing the TIF boundaries. Finally, a Joint Review Board is created with members from the City, school district, county, vo-tech district, and one member at large. The Joint Review Board reviews the TIF plan and public hearing comments and approves the creation of the TIF district. Amendments to a TIF Project Plan may be made by following the same procedures. TIF project plan amendments may be necessary to revise projected budgets and/or to amend the boundaries of the original TIF district. This document will meet the statutory requirements for a Project Plan for Tax Increment Finance District No. 35. TIF No. 35 PLAN OBJECTIVES II. Industrial development activities in the City of Janesville are guided by the City's Economic Development Strategy and implemented in accordance with an Economic Development Policy. The overall goal for the City's industrial development effort is to diversify the City's economic base through the retention and expansion of existing businesses, and through the attraction of growing industrial and large regional service sector employers that will create new employment opportunities and expand the local property tax base. TIF No. 35 will advance the City of Janesville's industrial development objectives and specifically will: A. Promote industry retention, expansion, and attraction through the 2 development of a new fully improved certified industrial park, thereby creating new jobs and increased tax base. B. Provide appropriate financial incentives to encourage industrial expansion. C. Reduce the financial risk to the taxpayer by timing the implementation of the Project Plan with the creation of additional property value through industry expansions. D. Generate sufficient new property tax increments within eight (8) to ten (10) years from each specific development project within the TIF District to fully repay the City's TIF project expenditures associated with the development project. BOUNDARIES OF TIF No. 35 III. Described as follows: Pt SE. ¼ and Pt SW. ¼ Sec 13-2-12 and also Pt NE. ¼ and NW. ¼ Sec 24-2-12, 4TH PM, City of Janesville, Rock Co, WI DAF: Com NE cor sd Sec 24; th S0°18'59"E alg E L NE ¼ sd Sec 24, 400.21'; th N88°27'04"W 33.02' to W L CTH G and POB; th N88°27'04"W 3826.97' m/l; th N0°02'51"W 1704.64' to N L SE ¼ SW ¼ sd Sec 13; th S89°02'36"E alg sd N L 1291.03' to NE cor sd SE ¼ SW ¼ sd Sec 13; th N0°00'24"E alg N-S CL sd Sec 13, 1283.03' to S L STH 11; th S88°41'40"E alg sd S L 1757.16' to W L Lot 1 CSM rec in Vol 8 Pgs 114-115; th S1°18'01"W alg sd W L 217.05' to SW cor sd CSM; th S88°42'05"E alg S L sd CSM 110.0' to SE cor sd CSM; th N1°18'01"E alg E L sd CSM 200.0'; th S88°41'40"E 70.0' to NW cor Lot 1 CSM rec in Vol 9 Pgs 132-133; th S1°18'01"W alg W L sd Lot 200.0' to SW cor sd Lot; th S88°42'05"E alg S L sd Lot 115.05' to SE cor sd Lot; th N1°18'01"E alg E L sd Lot 200.0' to S L STH 11; th S.88°41'40"E 163.80' alg sd S L STH 11; th S71°01'05"E alg sd SL 293.11' to W L CTH G; th S05°31'29"E 429.43' alg sd W L; th cont S alg sd W L 187.2' m/l to pt on N L CSM rec in Vol 15 Pgs 135-136; th N88°34'17"W 7.0' m/l to NE cor Lot 1 sd CSM; th S alg E L sd Lot 1 570.00' to SE cor sd Lot; th S88°34'17"E 7.0' m/l to W L sd CTH G; th S alg sd W L 1722.62' m/l to POB. 6-17-126, 6-17-126.4, 6-17-126.6,pt 6-17-125, pt 6-17-212, & pt 6-17- 214 Also containing the following described property: PART OF THE NW 1/4 OF SECTION 24, TH T.2N., R.12E. OF THE 4 P.M., TOWN OF ROCK, ROCK COUNTY, WISCONSIN. DESCRIBED AS FOLLOWS: Commencing at an aluminum monument at the North 1/4 Corner of said Section; thence S.0°43’12”E. along the North-South Centerline of said Section, 400.30 feet to an iron pin monument on the South Line of a Parcel described in Document No. 1690897, also being at the place of beginning for the land to be herein described; thence S.0°43’12”E. continuing along said North-South Centerline, 1692.15 feet to an iron pin on the Easterly 3 extension of the North Line of a tract described in Document No. 1401544; thence N.89°04’46”W. along said North Line and its extension, 2477.53 feet; thence N.6°58’46”E. 2.22 feet; thence N.15°55’12”E. 542.01 feet; thence N.21°33’01”E. 230.09 feet; thence N.18°14’52”E. 233.64 feet; thence N.47°44’21”E. 625.53 feet; thence N.44°27’40”E. 432.15 feet to said South Line of said Parcel (Document No. 1690897); thence S.88°30’01”E. along said South Line, 1384.17 feet to the place of beginning. 6-17-214 & 6-17-215 4 MAP 1 5 EXISTING ZONING AND PROPOSED LAND USES IV. The City of Janesville is proposing to create created TIF No. 35 to expand an existing industrial park on the City’s south side. At the time of its creation, TIF District No. 35 contains contained one, 226 acre parcel of vacant industrial land in agricultural use in an industrially zoned area on the City's south east side. The parcel is unimproved and has been used for agricultural crop production for decades. In 2004, the City negotiated to purchase an additional 226 acres of land located south of STH 11 and west of County Trunk Highway G. Upon annexation, this land was zoned M-1 Light Industrial. Since that time, The City went through a lengthy site certification process in 2010 to have the 226 acre site deemed as a “shovel ready” certified industrial site. TIF No. 22 has seen tremendous expansion and growth, and is set to be retired within the next 3-5 years. Therefore, the creation of TIF No. 35 would allow allowed the 226 acre certified site to continue to be marketed and incentivized with tax increment financing to make the site more appealing for industrial development and expansion. Amendment No. 1 to TIF 35 will amend the original boundary to add an additional 84 acres of vacant land adjoining the southwest portion of the existing TIF boundary. Since 2009 the City has had an option to purchase an additional 84 acres of land to the south of the existing TIF 35 to accommodate future industrial development. With the option set to expire on December 31, 2011, the City executed the option to purchase the additional 84 acres of land. Upon annexation, this land will be zoned M-1 Light Industrial and included within the boundaries of TIF No. 35 by approval of Amendment No. 1 to the TIF No. 35 Project Plan. The City’s long term growth plans in this part of the city calls for continued expansion of industrial development along CTH G and State Trunk Highway 11. Therefore, TIF No. 35 could be amended to include additional industrial development sites as they become available and are annexed into the City of Janesville State law requires that not less than 50% of the land within a TIF district be “suitable for ‘industrial sites’ within the meaning of (Wisconsin Statutes) s. 66.1101 and zoned for industrial use”. Within TIF No. 35 70% of the land is proposed for industrial uses and 30% is proposed for 6 green space and storm water uses, thus meeting the required standard. All lands within TIF No. 35 zoned for industrial uses will remain zoned for industrial uses for the life of the TIF district. In addition, the Wisconsin TIF Law prohibits “newly platted residential areas” from being considered as TIF project costs. No residential development is planned for TIF No. 35. The TIF District Project Plan proposes to improve these properties with streets and utilities to create additional industrial sites. The timing of the street and utility improvements will be phased to meet the needs of specific development projects thereby minimizing the risk of incurring development costs in advance of tax-producing development projects. 7 MAP 2 8 MAP 3 9 PROPOSED TIF PROJECTS AND IMPROVEMENTS V. The public expenditures proposed in TIF No. 35 will be linked to the expansion of the industry within the district. The expansion of the industry will increase property values and will generate new tax increments that will allow the City to recover its TIF costs. To allow this expansion to occur, the City will need to extend utilities to the property and construct an extension of Progress Drive. As the demand for industrial sites increases, the City will construct new streets and utilities to those sites as necessary to facilitate development and expansion. Finally, the Project Plan provides funds for marketing the new industrial sites and for providing incentive financing to companies locating new facilities within the TIF district. The kind, number, and location of all proposed improvements proposed for TIF No. 35 are shown on Map 4 - Improvement Plan. A. Transportation Improvements Transportation improvements may include the construction of the southerly extension of Progress Drive South of State Trunk Highway 11 and easterly extensions of a street network from the newly extended portion of Progress Drive to County Trunk Highway G. County Trunk Highway G may be widened to a 4-lane cross section as the traffic to TIF No. 35 increases with development. In addition, the TIF Project Plan allows for the construction of approximately 10,500 feet of new streets to serve the new industrial sites. Map No. 4 shows the planned location of these road improvements, however, the actual location of the roads may change depending on the needs of specific development projects. Wherever new street construction occurs, sidewalks or recreational trails, street trees, and landscaping may be installed along the new frontage road. B.Utility Costs As new streets are constructed to provide access to industrial sites, sewer, water, gas and electric utilities will be installed within the rights-of-way. In addition, a storm sewer collection system including underground piping, surface detention ponds and safety fencing may be installed. These utility improvements will be phased along with the street construction to meet the needs of specific development projects. The utility costs will be included as TIF expenditures. 10 C. Street Lighting and Landscaping As new streets are developed within TIF No. 35, street lights and street trees may be installed. In addition, a landscaping buffer between the industrial uses and the open space/residential uses to the west is planned as a TIF cost. D. Marketing and Incentive Financing In order to attract new development to the TIF No. 35 industrial park, it may be necessary to implement a marketing program. Marketing activities may include the development of brochures, photographs, topography and maps for use with industry prospects. Once the marketing materials are available, a direct mail program may be implemented to attract new development. Marketing activities may also include the payment of real estate commissions where a private “buyer’s broker” facilitates the sale of a new development site in TIF No. 35. Where a specific industry has been identified, incentive financing may be necessary to ‘close the deal’. Incentive financing may include below interest loans, funding for relocation, worker training, and unique start-up costs, and/or similar financing programs. Financing may go directly to a development project or to capitalize a revolving loan fund to provide financing assistance for industrial expansion projects throughout the TIF District. Additionally, changes to State Law also allow the expenditure of TIF funds within ½ mile of an existing TIF boundary. While much of the land within ½ mile of TIF No. 35 is currently located outside the City of Janesville corporate limits, the City does have a boundary agreement with the Town of Rock, and land surrounding the airport will be annexed to the City of Janesville as development occurs. Where industrial development projects occur on land annexed to the City within this ½ mile boundary, funding from TIF No. 35 may be used to support the development project. If the development project is contiguous to TIF No. 35, the City may propose a boundary amendment to the TIF No. 35 Project Plan. The development projects located within ½ mile of proposed TIF No. 35 may need project financing and/or development incentives to maintain employment levels or to undertake future expansion projects. E. Administrative Costs The TIF No. 35 project plan includes the cost incurred for administrative, professional, organizational, and legal services related to the creation and administration of the TIF district. Direct engineering costs shall be charged to the specific construction projects within 11 the TIF District. Direct legal and planning costs will be charged as administrative costs. The cost of the three TIF audits required under Wisconsin Statutes ss 66.1105 will be included as TIF project costs. In addition, administrative costs will include any TIF Plan review fees charged by the Department of Revenue. F. Land Acquisition In order to create a new industrial park, the City has acquired a 226 acre parcel on the west side of County Trunk Highway G and south of State Trunk Highway 11 and an additional 84 acres to the south of the existing TIF 35 boundary along the east side of State Highway 51. This Project Plan does not provide for any future land acquisitions. However, in the event of future land acquisitions, payments to neighboring townships to compensate them for lost tax revenues where TIF districts include newly annexed property will also be considered a TIF land acquisition expense. Land acquisition, surveying, soil testing, environmental engineering, and title policy expenses may be considered TIF project costs. Additionally, any relocation expenses incurred by future land acquisitions including crop damages would be considered a TIF land acquisition expense. Payment of any land conversion penalty under the provisions of Wisconsin Statutes section 74.485 would also be considered a land acquisition cost. DETAILED LIST OF ESTIMATED PROJECT COSTS VI. In order to determine the economic feasibility of the proposed TIF District No. 35, total project costs must be estimated and compared to the projected tax increments that will be generated by the new development in the TIF district. Based on 2011 construction costs, TIF No. 35 improvement costs are estimated as follows: A. Transportation Improvements $4,155,500 B. Water and Sanitary Sewer Costs $2,823,200 B. Stormwater Improvements $2,011,300 $2,589,300 C. Project Incentive Financing $4,950,000 $6,450,000 D/E. Marketing & Administration $61,500 F. Land Acquisition $1,554,000 Total Cost of Improvements $14,001,500 $17,633,500 12 The estimated cost of TIF expenditures is $14,001,500 $17,633,500. Under the revised TIF law, project costs may be incurred over the first fifteen (15) years of the TIF district, while TIF revenues will be collected over a maximum of twenty (20) years. The City will have to finance any negative TIF fund balance through interfund borrowing. Based on conservative projections, including the debt service and interfund borrowing costs of $5,445,818 $7,174,522 . the total estimated TIF No. 35 project costs to $19,447,318 $24,808,052 All project costs and interfund borrowing estimates are based on the most current cost data available in July, 2011 and may be adjusted within the total amount shown without modification or amendment of this TIF No. 35 Project Plan. Under the changes to the TIF law enacted in 2004, all of the TIF No. 35 project costs except debt service and interfund borrowing will be incurred during the first fifteen (15) years of the TIF District. Table No. 1 shows the schedule and timing of the proposed expenditures. The actual timing of expenditures will be contingent on the commitments from industries locating facilities and guaranteeing a minimum property value that will generate sufficient tax increments over the life of the TIF district to cover the TIF project costs. This Project Plan includes funds to market the vacant industrial land within the TIF District for industrial and development. Table No. 1 Tax Increment District No. 35 Summary of TIF Costs By Year Year Type of Cost Cost 2011 Marketing and Administration, Engineering Services $362,500 2012 Land, Streets, Utilities, Incentives, and Admin $6,533,250 $8,322,250 Incentives, Streets, Utilities, Marketing 2013 $5,328,750 $7,171,750 2014 Incentives, Marketing and Administration $508,750 2015 Incentives, Marketing and Administration $507,250 2016 Incentives, Marketing and Administration $503,750 2017 Incentives, Marketing and Administration $251,875 2018 Administration $5,375 Total Cost of Improvements $17,633,50 $14,001,500 0 Debt Service and Interfund Borrowing $5,445,818 $7,174,522 13 Total Estimated TIF No. 35 Costs $24,808,05 $19,447,318 2 -------------------------------------------------------------------------------------------------------- Prepared By: City Manager’s Office and Accounting 14 MAP 4 15 MAP 5 16 ECONOMIC FEASIBILITY AND METHODS OF FINANCING VII. A. Economic Feasibility Analysis Under Wisconsin's Tax Increment District Law (ss. 66.1105), 100% of the property taxes levied against new property value created within a TIF district is retained by the City to pay for improvement costs that were incurred to attract the new development. Implicit in the law is the concept that without the improvements, the attraction of new development, the creation of new jobs, and the expansion of the tax base would not occur. The Wisconsin TIF law as revised by the Legislature, allows the City fifteen (15) years in which to make the improvements needed to stimulate and support development. The property tax increments generated by the new development are retained by the City until all TIF costs are paid. In no case shall the TIF district have a life longer than twenty (20) years. The City of Janesville's Tax Increment District No. 35 will be was created by Council action in July, 2011. The original TIF No. 35 Project Plan will be amended by the City Council in January, 2012 to revise the budget and to amend the boundary to include an additional 84 acre parcel of land. Therefore, all TIF project improvements must be completed by September, 2026. The taxes on any increased property value in the district between 2013 and 2031 will be retained by the City to repay the TIF project costs. TIF No. 35 will be dissolved when all TIF project costs are repaid, or in July 2031, whichever comes first. In order to determine the economic feasibility of the proposed TIF district, estimated TIF costs must be compared to projected TIF property tax increments. Where tax increments exceed TIF costs over the twenty (20) year life of the TIF district, the TIF district is considered economically feasible. The City of Janesville has made conservative assumptions about the future to determine the economic feasibility of TIF No. 35. All TIF costs related to industrial expansion projects are incurred according to the schedule shown in Table No. 1. TIF property value increases for are shown for the installation of streets and utilities, as well as potential new land acquisitions for future industrial projects to be developed. Where possible, the construction of new streets and utilities will be phased and 17 linked to known development projects. The City will enter into binding contracts with the industries locating within TIF No. 35 that will guarantee the minimum amount of investment needed to fully amortize all TIF costs associated with each project within 8 to 10 years. The overall TIF District should be able to recover all costs by the year 2030. The equalized value property tax mill rate levy is projected to increase 0% per year. This assumption is also conservative. In recent years, the equalized value property tax mill rate in Janesville increased slightly. Based on these assumptions, the $51,500,000 $62,000,000 in new property value generated between 2013 and 2019 will create sufficient new property tax increments to repay all planned TIF project costs. The City will limit the implementation of all TIF expenditures until the actual levels of new property value are known. TIF project costs of $14,001,500 $17,633,500 plus financing costs of $5,445,818 $7,174,552 equate to a total TIF Cost investment of $19,447,318 $24,808,052. These monies will only be expended if the property value of the industrial construction is adequate to ensure a sufficient tax increment to recover the cost within the life of the TIF district. If a total of $51,500,000 $62,000,000 of new property value is created as projected, the TIF district will generate a total of $30,423,005 $29,467,978 in property tax increments over the 20 year life of the district. Since property tax increments are projected to exceed TIF costs including debt service by $390,294 in 2030 $246,255 in 2029 TIF No. 35 is found to be economically feasible. Projected TIF revenues will cover TIF costs within 19 18 years and the City projects that TIF No. 35 will be dissolved by 2031. Since there is no guarantee that new development projects will be found to construct new property value within TIF No. 35, the City will only implement additional street and utility construction project when they are needed to prepare new industrial sites for specific projects. The TIF plan includes $4,155,500 in transportation improvements including improvements to CTH G and HWY 51 as well as street extensions through the industrial site. Additional, the Project Plan includes $$2,823,200 in utility improvements including extensions of water mains and sanitary sewer to serve the site, as well as $2,011,300 $2,589,300 in stormwater improvements. 18 B. Methods of Financing Wisconsin Statutes provide several methods of financing the cost of improvements in tax increment districts. For smaller amounts, financing through the general fund may be feasible. Transfers can be made from the municipal general fund account into the TIF expenditure account to cover the cost of TIF improvements. This method of financing avoids the interest cost associated with municipal borrowing. However, since the General Fund balance is reduced, the General Fund loses interest income, so an interfund borrowing cost is charged to the TIF account. State law also provides for municipal borrowing. Community borrowing is divided 19 into two forms -- that subject to a statutory limitation and borrowing not subject to limitation. Possible funding sources include: 1. General Obligation Borrowing - Is sometimes referred to as a local promissory note from a bank, State Trust Fund, or other lending institution. This form of borrowing requires little effort or legal costs and works well for smaller sums. This sort of borrowing is included in the municipal borrowing limitation. 2. General Obligation Bonding – Is an irrepealable property tax obligation of the community. General obligation bonds can often be sold at lower interest rates than other forms of borrowing. However, there are additional regulations and requirements that make G.O. Bonds suitable for larger projects. G.O. Bonds are included in the municipal borrowing limitation. 3. Mortgage Revenue Bonds - Are repaid through the revenue generated by a public utility like a water or sewer utility. Revenue bonds also have regulatory and legal requirements that make them suitable for larger project costs. Since revenue bonds do not pledge the community's taxing capacity, they are not subject to a municipal borrowing limitation. 4. Federal and State Grant or Loan Programs - Like Community Development Block Grants or State Transportation aids are sometimes available to supplement local funding sources. However, the amount of grant dollars available is limited and state and federal funding is uncertain given the need to balance budgets. The actual method of financing specific TIF projects will be determined by the City based on the current fiscal condition of the City, anticipated non-TIF capital needs, municipal borrowing rates and terms, and the amount of financing needed. Where general obligation borrowing is used, TIF financing costs have been calculated assuming financing over ten (10) years, with equal principal payments. The City will not proceed with any phase of the planned public improvements until a developer or business is committed to construct a new building or renovate an existing building with a value sufficient to generate the property tax increments needed to cover the cost of the improvements. Therefore, the actual City expenditures in TIF No. 35 may be substantially different that those shown in the project plan. 20 C. Additional Economic Benefits The economic feasibility analysis has shown that the property tax increments will be sufficient to cover all TIF project costs over the twenty (20) year life of the TIF district. The development of TIF No. 35 will facilitate an industrial expansion, increase property values, and create new jobs in the City of Janesville. These jobs will help diversify the local economy and the increased manufacturing and warehousing/distribution payrolls will have a positive multiplier effect in the trade and service sectors. PROPOSED CHANGES IN ORDINANCES, CODES, & PLANS VIII. The proposed TIF No. 35 project plan is in conformance with the City of Janesville's present zoning ordinance, with the City's Industrial Development Plan and the General Development Plan. All of the properties within TIF No. 35 have been found to be suitable for industrial development in accordance with Wisconsin's Promotion of Industry Statute ss 66.1101, and will remained zoned for industrial purposes for the life of the TIF district. All development in TIF No. 35 will have to conform with the State Building Codes and will be subject to the City's permitting and inspection procedures. The TIF No. 35 project plan conforms with all relevant State and local ordinances, plans, and codes, thus, no changes to the existing regulations are proposed or needed. The City has requested that the Wisconsin Department of Commerce amend the Janesville Community Development Zone boundary to include the land within TIF No. 35. This allows companies that locate within the amended TIF No. 35 boundary to apply for State of Wisconsin income tax credits under the Development Zone Program. 21 LIST OF ESTIMATED NON-PROJECT COSTS IX. All of the public improvements and other project costs included in this project plan are TIF eligible costs as defined in Wisconsin Statutes ss. 66.1105, the Tax Increment District Law. Where an improvement can serve an area larger than the TIF district, the cost of the improvement will be prorated so that only the proportion of the costs to serve TIF No. 35 will be included as a project cost. That portion of the total costs which serves areas outside the TIF district will be considered 'non-project' costs and charged to funding sources other than TIF No. 35. METHODS FOR RELOCATION OF DISPLACED PERSONS X. The TIF No. 35 Project Plan does plan land acquisition, thus, there may be displacement of persons or business needing relocation assistance. For any reason, should relocation be necessitated by the City's involvement in the implementation of this Project Plan, it will be undertaken pursuant to Wisconsin Statutes Section 32.19 and 33.195, and according to a Relocation Plan, as approved by the Wisconsin Department of Commerce. PROMOTION OF THE ORDERLY DEVELOPMENT OF THE CITY XI. The creation of TIF No. 35 and the implementation of the projects in the TIF Project Plan will promote the orderly development of the City of Janesville by encouraging that new industrial development occurs in areas of the City planned for industrial growth. By creating well designed and strategically located industrial parks, land use conflicts and infrastructure deficiencies can be avoided. By providing financial incentives to stimulate private development projects, the City is able to ensure that economic growth continues to occur, thus offsetting the inevitable loss of jobs and incomes when economic conditions force the closure of other employers in the community. By utilizing the provisions of the Tax Increment Finance Law, the City can increase property values through development projects that result in increased tax base. TIF No. 35 continues the industrial development on the City’s southeast side that began with the creation of TIF No. 5 in 1988 and TIF No. 16 in 1996 and TIF No. 22 in 1999. TIF No. 35 will add to the tax and employment base of the community, and will generate positive secondary impacts in the community through increased local disposable incomes. 22 23 24 Resolution No. 2012-875 RESOLUTION APPROVING AMENDMENT NO. 1 TO THE PROJECT PLAN FOR TAX INCREMENT FINANCE DISTRICT NO. 35 WITHIN THE CITY OF JANESVILLE, ROCK COUNTY, WISCONSIN WHEREAS, the Common Council of the City of Janesville adopted Resolution No. 2011-816 on August 22, 2011, creating the City of Janesville Tax Increment Finance District No. 35 in accordance with the provisions of Wisconsin Statutes Section 66.1105; and WHEREAS, the City of Janesville Administration is now proposing Amendment No. 1 to the Project Plan for TIF No. 35 revising the project budget and amending the TIF No. 35 boundary to include an additional 84 acres of industrial land; and WHEREAS, the Janesville Plan Commission has held a public hearing on proposed Amendment No. 1 to the Project Plan of Tax Increment District No. 35 and the proposed new boundaries of the Amended TIF district on the 6 day of February, 2012, and found both proposed amendments to be acceptable and consistent with the long range plans of the City and its best interests; and WHEREAS, the Chief Executive Office of the Janesville School District, Rock County Board, Blackhawk Technical College, and other entities having the power to levy taxes upon the property located within the proposed Tax Increment District No. 35 have been notified of the proposed Amendment to the Project Plan for TIF No. 35, pursuant to Section 66.1105 (4)(a) and (e), Wisconsin State Statutes; and WHEREAS, Tax Increment Finance District No. 35, as amended, is declared to be an “industrial TIF district”, where more than 51% of the land is currently zoned M-1 Industrial and has been found suitable for industrial development within the meaning of Section 66.1101, Wisconsin State Statutes, and will remain zoned for industrial purposes for the life of the TIF District; and WHEREAS, the project costs directly serve to promote industrial development, consistent with the purpose for which the TIF District was created, and the improvement of the proposed additional areas for industrial projects will significantly enhance the value of all property within the City of Janesville; and WHEREAS, the equalized value of taxable property within the amended boundaries of TIF No. 35 plus the value increment of all existing Janesville TIF Districts does not exceed twelve percent (12%) of the total equalized value of property within the City of Janesville; and WHEREAS, the amended Project Plan for Tax Increment District No. 35 is 25 economically feasible and in conformity and has been found to be in accordance with the City’s Resolution No. 2012-875 TIF 35 Amendment No. 1 Page 2 General Development Plans, Zoning Ordinance, and other relevant policies; and that implementation of the improvements as set forth in the Amended TIF No. 35 Project Plan is in the best interest of the City of Janesville and for the benefit of its residents and taxpayers. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville that they hereby approve Amendment No. 1 to the Project Plan for City of Janesville Tax Increment Finance District No. 35, and refer Amendment No. 1 to a Joint Review Board for review and approval according to Wisconsin Statutes. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Dongarra-Adams Liebert Eric J. Levitt, City Manager McDonald Rashkin ATTEST: Steeber Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: Wald Klimczyk, City Attorney Proposed by: City Manager Prepared by: Community Development 26 CITY ATTORNEY’S OFFICE MEMORANDUM January 4, 2012 MEMORANDUM TO: Vic Grassman, Economic Development Director FROM: Wald Klimczyk, City Attorney RE: Legal Opinion – Amendment No. 1 to T.I.F. No. 35 Project Plan Sec. 66.1105(4)(f), Wis. Stats., of the Tax Increment Financing Law mandates that the project plan for a proposed tax increment financing district "include an opinion of the city attorney or an attorney retained by the city advising whether the plan is complete and complies with this section.” You have asked me to review a certain proposed “Amendment No. 1 to the Tax Incremental Finance District No. 35 Project Plan” dated February 13, 2012, and determine if, in my opinion, it is complete and complies with the requirements of Wisconsin's T.I.F. Law. This memorandum constitutes my legal opinion. Sec. 66.1105(4)(f), Wis. Stats., sets forth those components of a T.I.F. project plan which are required by state law. They are as follows: 1. A statement listing the kind, number, and location of all proposed public works or improvements within the district or, to the extent provided in Section 66.1105(2)(f) 1. k., Wis. Stats., outside the district; 2. An economic feasibility study; 3. A detailed list of estimated project costs; 4. A description of the methods of financing all of the estimated projected costs; 5. The time when the costs or monetary obligations related thereto are to be incurred; 6. A map showing the existing uses and conditions of the real property in the district; 7. A map showing the proposed improvements and uses in the district; 27 8. Proposed changes of: a. Zoning ordinances. b. The master plan, if any. c. The master map, if any. d. Building codes. e. City ordinances. 9. A list of estimated non-project costs; 10. A statement of proposed methods for the relocation of any person(s) to be displaced; and 11. How the Tax Increment Financing District promotes the orderly development of the City. I have reviewed proposed “Amendment No. 1 to Tax Incremental Finance District No. 35 Project Plan” dated February 13, 2012, for Tax Increment Finance (T.I.F.) District Number 35, prepared by the City of Janesville Economic Development Agency, Finance Division, and City Manager’s Office. It is my legal opinion that said project plan as prepared by the Economic Development Agency is complete and does comply with Section 66.1105(4) (f), Wis. Stats. According to the terms of the above cited statute, this legal opinion should now become the final component of that project plan amendment. Wald Klimczyk City Attorney wk cc: Jean Ann Wulf, City Clerk-Treasurer J:\Attorney\Word\Shared\TIF 35 Amend 1 Legal Opinion.docx 28 Community Development Department Memorandum Date: January 9, 2012 TO: Janesville City Council FROM: Duane Cherek, Planning Services Manager SUBJECT: Introduce and schedule a public hearing on a proposed ordinance annexing property located at 4021 U.S. Highway 51 South (File Ordinance No. 2012-506). Introduce, refer to Plan Commission, and schedule a public hearing on a proposed ordinance zoning property located at 4021 U.S. Highway 51 South to M1 upon annexation (File Ordinance No. 2012-507). _____________________________________________________________________ The City has received a petition to annex approximately 81 acres of land located at 4021 U.S. Highway 51 South. The annexation area is located south of State Highway 11and east of U.S. Highway 51 and the Southern Wisconsin Regional Airport. The petition was submitted by Arthur T. Donaldson, owner of the subject property. The property is currently in farmland use. The City has a contract to purchase the property from Mr. Donaldson for industrial development upon annexation. The adjoining land to the north, already within the City limits, is included within TIF District 35. It is the City’s intention to amend the TIF District 35 boundary to include the annexation area within it. The annexation area is situated within the City’s urban service limits thus allowing for municipal sewer and water utilities to be extended to the site. Coincident with the annexation ordinance, the Community Development Department has prepared an ordinance to zone the property to M1, Light Industrial District. The Community Development Department recommends that following the first reading of Ordinance No. 2012-506 annexing the land and Ordinance No. 2012-507 zoning the area, they be set for public hearing on 13 February 2012. While the annexation does not require Plan Commission review, the zoning of the property must be referred to the Plan Commission. We therefore recommend that Ordinance No. 2012-507 be referred to the Plan Commission for review and recommendation. cc: Eric Levitt Jay Winzenz ORDINANCE NO. 2012-506 An ordinance annexing territory in Section 24 in T.2N., R.12E. of the 4th P.M., Town of Rock, Rock County, Wisconsin. WHEREAS , a petition signed by the owner of the land within such territory proposed to be annexed has been filed with the City Clerk; and WHEREAS , there are no electors residing in the territory; and WHEREAS , the necessary notices have been duly prepared, provided and served as required by law to all persons affected; and WHEREAS , this ordinance does not contain temporary zoning; and WHEREAS , the Department of Administration has not found the proposed annexation to be against the public interest; and WHEREAS , the Common Council has determined that this annexation is in the public interest. NOW THEREFORE THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS FOLLOWS: SECTION I. The territory described as follows is hereby attached to the City of Janesville. TH PART OF THE NW 1/4 OF SECTION 24, T.2N., R.12E. OF THE 4 P.M., TOWN OF ROCK, ROCK COUNTY, WISCONSIN. DESCRIBED AS FOLLOWS: Commencing at an aluminum monument at the North 1/4 Corner of said Section; thence S.0°43’12”E. along the North-South Centerline of said Section, 400.30 feet to an iron pin monument on the South Line of a Parcel described in Document No. 1690897, also being at the place of beginning for the land to be herein described; thence S.0°43’12”E. continuing along said North-South Centerline, 1692.15 feet to an iron pin on the Easterly extension of the North Line of a tract described in Document No. 1401544; thence N.89°04’46”W. along said North Line and its extension, 2477.53 feet; thence N.6°58’46”E. 2.22 feet; thence N.15°55’12”E. 542.01 feet; thence N.21°33’01”E. 230.09 feet; thence N.18°14’52”E. 233.64 feet; thence N.47°44’21”E. 625.53 feet; thence N.44°27’40”E. 432.15 feet to said South Line of said Parcel (Document No. 1690897); thence S.88°30’01”E. along said South Line, 1384.17 feet to the place of beginning. SECTION II. After this annexation becomes effective, the above described property shall be exempt from and not subject to further taxation and assessments in the Town of Rock and thence forth shall be subject to taxation and assessment as part of the City of Janesville for any and all purpose provided by law. ORDINANCE NO. 2012-506 PAGE 2 SECTION III. All the territory attached by this ordinance is hereby made part of Ward 30 of the City of Janesville. SECTION IV. There are no residents in the area proposed for annexation. SECTION V. The annexation is within the Janesville School District. SECTION VI. 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 Pass Absent Dongarra-Adams Eric J. Levitt, City Manager Liebert McDonald ATTEST: Rashkin Steeber Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: Wald Klimczyk, City Attorney Proposed by: Applicant Prepared by: Community Development Department ORDINANCE NO. 2012-507 An ordinance changing and establishing the zoning classification of property located south of Avalon Road and east of Highway 51 to M1. THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS FOLLOWS: SECTION I. The zoning classification of the following described property is established as M1, Light Industrial District: TH PART OF THE NW 1/4 OF SECTION 24, T.2N., R.12E. OF THE 4 P.M., TOWN OF ROCK, ROCK COUNTY, WISCONSIN. DESCRIBED AS FOLLOWS: Commencing at an aluminum monument at the North 1/4 Corner of said Section; thence S.0°43’12”E. along the North-South Centerline of said Section, 400.30 feet to an iron pin monument on the South Line of a Parcel described in Document No. 1690897, also being at the place of beginning for the land to be herein described; thence S.0°43’12”E. continuing along said North-South Centerline, 1692.15 feet to an iron pin on the Easterly extension of the North Line of a tract described in Document No. 1401544; thence N.89°04’46”W. along said North Line and its extension, 2477.53 feet; thence N.6°58’46”E. 2.22 feet; thence N.15°55’12”E. 542.01 feet; thence N.21°33’01”E. 230.09 feet; thence N.18°14’52”E. 233.64 feet; thence N.47°44’21”E. 625.53 feet; thence N.44°27’40”E. 432.15 feet to said South Line of said Parcel (Document No. 1690897); thence S.88°30’01”E. along said South Line, 1384.17 feet to the place of beginning. 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 Pass Absent Eric J. Levitt, City Manager Dongarra-Adams Liebert ATTEST: McDonald Rashkin Jean Ann Wulf, City Clerk-Treasurer Steeber Voskuil APPROVED AS TO FORM: City Attorney Proposed by: Community Development Department Prepared by: Community Development Department