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#2 & #3 Annexation 4021 USH 51 - Memo - OrdinancesCommunity Development Department Memorandum February 13, 2012 TO: Janesville City Council FROM: Duane Cherek, Planning Services Manager SUBJECT: Second reading, public hearing and action on a proposed ordinance annexing property located at 4021 U.S. Highway 51 South (File Ordinance No. 2012-506). Second reading, public hearing and action on a proposed ordinance zoning property located at 4021 U.S. Highway 51 South to M1 upon annexation (File Ordinance No. 2012-507). SUMMARY The City has received a petition to annex approximately 81 acres of land from Art Donaldson, property owner, at 4021 U.S. Highway 51 South. The annexation area is located east of US Highway 51 and the Southern Wisconsin Regional Airport, south of the State Highway 11 Bypass. The property is currently undeveloped and in farmland use. The City has an accepted offer to purchase the subject property from Mr. Donaldson. 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 and allow for industrial expansion and development opportunities on the site. In conjunction with the annexation ordinance, the Community Development Department has prepared an ordinance to zone the property M1, Light Industrial District. Approval of the annexation requires a 2/3 vote of the Council, therefore four favorable votes are necessary. DEPARTMENT RECOMMENDATION The Plan Commission and the Community Development Department recommend that, following a public hearing, the City Council support a motion to adopt Ordinance Nos. 2012-506 and 2012-507 annexing and zoning to M1 property located at 4021 U.S. Highway 51 South. CITY MANAGER RECOMMENDATION The City Manager recommends approval. SUGGESTED MOTION A motion to adopt Ordinance Nos. 2012-506 and 2012-507 annexing and zoning to M1 property located at 4021 U.S. Highway 51 South. ANALYSIS A. The annexation area is located on the City’s far south side along U.S. Highway 51east of the Southern Wisconsin Regional Airport. The area proposed for annexation contains approximately 81 acres of undeveloped land used for agricultural crop production. The property is currently zoned A1, Agricultural District and B2, Large Scale Commercial District in the Town of Rock. The subject property is contiguous with the City Limits along the north line of the annexation area where it adjoins a large industrial site included in TIF 35. B. The area proposed for M1 zoning is situated immediately south of Janesville’s “shovel ready” certified industrial park located at the southwest corner of the intersection of Beloit Avenue and STH 11. This area has been targeted for industrial growth due to its flat topography and is ideally located in proximity to major regional transportation corridors and facilities including USH 51, STH 11, CTH G (Beloit Avenue), I-39/90 and the Southern Wisconsin Regional Airport. The subject property is adjacent to the City limits and existing M1, Light Industrial, zoned property. The annexation area is also located within the City’s Urban Service Limits which delineate those areas around the City where sanitary sewer is expected to accommodate urban development and sanitary facilities can be provided in a cost- effective manner. Sewer and water mains already exist along the property’s U.S. Highway 51 frontage and can be easily extended to accommodate projected development within the annexation area. These characteristics make it very appropriate for industrial development and targeted industries. C. Since 2009, the City has had an option to purchase the subject site from Art Donaldson, property owner and annexation petitioner. In late 2011, the City Council approved Resolution No. 2011-865 which authorized the acquisition and purchase of the property to create an industrial development site and allow for other development-related improvements. Earlier in 2011, the City Council approved the creation of TIF No. 35, located directly north of the annexation area. The City intends to amend the Project Plan and boundary for TIF No. 35 to include all property within the annexation area. As a result, annexation of the subject area and the proposed expansion of TIF No. 35 will serve to advance the City’s economic development efforts in this location. D. The subject property has been identified as a site that could potentially accommodate a new manufacturing facility in Janesville. A Middleton-based company, SHINE Medical Technologies, Inc., desires to build a new manufacturing plant to produce medical isotopes used in diagnostic imaging procedures (i.e. cancer and heart disease scans). The area proposed for annexation and inclusion in the TIF District is well-positioned to accommodate an advanced manufacturing facility of this type or a wide variety of other industrial land use activities based on the property’s geographical attributes, surrounding transportation facilities, utility services and other forms of public infrastructure. E. The entire 81-acre site is proposed to be zoned M1, Light Industrial District, upon annexation. This district is consistent with the recommendations of the Comprehensive Plan, Industrial Development Plan and the proposed amendment to the TIF No. 35 Project Plan. The Comprehensive Plan specifically identifies this area as appropriate for Light Industrial as shown on the Future Land Use Map and also recommends future industrial expansion to the south of the City. The site is located within the City’s Urban Service Limits where municipal utility services may be extended to the property. Further, as an economic development strategy, the Plan encourages that the City capitalize on opportunities to promote research and development industries within Janesville and enhance the City’s role as a regional economic center. F. The annexation area is located within the Airport Overlay Zoning District for the Southern Wisconsin Regional Airport. This designation restricts, or limits the overall height of structural improvements within the overlay zone district and includes design-related standards to minimize potential hazardous impacts to the airport that may result from proposed land use in the vicinity of the airport. Since industrial uses as are generally more compatible land use activities as compared to other development scenarios such as residential near the airport, application of the M1 zoning designation upon annexation is appropriate. PLAN COMMISSION ACTION – 6 FEBRUARY 2012 Duane Cherek, Manager of Planning Services, presented the written staff report. There was no discussion. The public hearing was opened and no one appeared to speak regarding this item. The public hearing was closed. There was a motion by Commissioner Consigny with a second by Commissioner Siker to forward the proposed zoning upon annexation of property located at 4021 U.S. Highway 51 South to M1 to the City Council with a favorable recommendation. The motion carried on a 6-0-0 vote. FISCAL IMPACT The City has exercised an option to purchase approximately 84 acres of land south of State Highway 11 in order to promote future industrial growth in this area. Zoning of the property to M1, Light Industrial District, is proposed upon annexation. The property is also intended to be included within TIF No. 35 which is an industrial TIF District located adjoining and north of the annexation area. The purchase will allow the City to expand upon the planned industrial park in this area (Certified “Shovel-Ready” Industrial Site) and provide financial incentives to encourage continued industrial growth – a primary goal of the City’s Economic Development Strategy. Expansion of new industry in this area as part of the Amended TIF No. 35 will promote orderly industrial development and add to the City’s tax and employment base. The spin-off effect of new employment opportunities would generate increased local disposable incomes within the community, thus providing a long-term positive impact on the City. Sewer and water facilities adjoin the annexation area and can easily be extended. City staff believes that this rezoning and annexation will facilitate industrial development within this transportation corridor and capitalize on proximity to the airport, highway accessibility and improvements and utility extensions. In instances where annexation of land is proposed for inclusion within a TIF District, the economic feasibility of the Project Plan details the perspective costs for land acquisition and “up front” public improvements needed to stimulate and support new development. Projected revenues to be generated by new development and corresponding real estate values are also included in the analysis. The City will not proceed with any public improvements until a developer or business commits to construct a new facility with a value sufficient to generate property tax increments needed to cover the improvement costs, according to the City’s TIF Policy. Based upon those assumptions, a positive fiscal impact should be anticipated. State law regarding annexation requires that the City pay the Town for the loss in property tax which occurs when annexation takes place. The City is required to pay the Town annually for five years an amount equivalent to property taxes that would have otherwise been collected by the Town. In this case, the cost to reimburse the Town of Rock for the loss of property tax is included as a TIF expenditure. Based on the use- value assessment of agricultural land, the value per acre established by the State Department of Revenue is very low. Staff estimates the annual reimbursement cost to the Town to be approximately $60 per year. In addition, a penalty will be imposed by the State at the time land within the annexation area is removed from agricultural production and converted to another use. Under current assessment law, the total estimated penalty cost of removing the land from a cropland use would be approximately $20,000. This cost would also be applied as a TIF expenditure for the annexation area. 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. 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