2025-2314City of Janesville, Wisconsin Tax Incremental District No. 43 Common Council Resolution
File Resolution No. 2025-2314
RESOLUTION CREATING TAX INCREMENTAL DISTRICT NO. 43,
APPROVING ITS PROJECT PLAN AND ESTABLISHING ITS BOUNDARIES
CITY OF JANESVILLE, WISCONSIN
WHEREAS, the City of Janesville (the “City”) has determined that use of Tax Incremental Financing
is required to promote development and redevelopment within the City; and
WHEREAS, Tax Incremental District No. 43 (the “District”) is proposed to be created by the City
as an industrial district in accordance with the provisions of Wisconsin Statutes Section 66.1105 (the "Tax
Increment Law"); and
WHEREAS, a Project Plan for the District has been prepared that includes:
a.A statement listing of the kind, number and location of all proposed public works or
improvements within the District, or to the extent provided in Wisconsin Statutes Sections
66.1105(2)(f)1.k. and 66.1105(2)(f)1.n., outside of the District;
b.An economic feasibility study;
c.A detailed list of estimated project costs;
d.A description of the methods of financing all estimated project costs and the time when the
related costs or monetary obligations are to be incurred;
e.A map showing existing uses and conditions of real property in the District;
f.A map showing proposed improvements and uses in the District;
g.Proposed changes of zoning ordinances, master plan, map, building codes and City
ordinances;
h.A list of estimated non-project costs;
i.A statement of the proposed plan for relocation of any persons to be displaced;
j.A statement indicating how the District promotes the orderly development of the City;
k.An opinion of the City Attorney or of an attorney retained by the City advising that the plan is
complete and complies with Wisconsin Statutes Section 66.1105(4)(f).; and
WHEREAS, prior to its publication, a copy of the notice of public hearing was sent to the chief
executive officers of Rock County, the Janesville School District, and the Blackhawk Technical College
District, and any other entities having the power to levy taxes on property located within the District, in
accordance with the procedures specified in the Tax Increment Law; and
WHEREAS, in accordance with the procedures specified in the Tax Increment Law, the Plan
Commission, on March 3, 2025 held a public hearing concerning the project plan and boundaries and
proposed creation of the District, providing interested parties a reasonable opportunity to express their
views thereon; and
WHEREAS, after said public hearing, the Plan Commission designated the boundaries of the
District, adopted the Project Plan, and recommended to the Common Council that it create such District
and approve the Project Plan.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville that:
1.The boundaries of the District that shall be named "Tax Incremental District No. 43, City
of Janesville", are hereby established as specified in Exhibit A of this Resolution.
City of Janesville, Wisconsin Tax Incremental District No. 43 Common Council Resolution
2.The District is created effective as of January 1, 2025.
3.The Common Council finds and declares that:
(a)Not less than 50% by area of the real property within the District is suitable for
industrial sites within the meaning of Wisconsin Statutes Section 66.1101 and has
been zoned for industrial use.
(b)Based upon the finding stated in 3.a. above, the District is declared to be an industrial
district based on the identification and classification of the property included within
the District.
(c)The improvement of such area is likely to enhance significantly the value of
substantially all of the other real property in the District.
(d)The equalized value of the taxable property in the District plus the value increment
of all other existing tax incremental districts within the City, does not exceed 12% of
the total equalized value of taxable property within the City.
(e)That for those parcels to be included within the District that were annexed by the City
within the three-year period preceding adoption of this Resolution, the City pledges
to pay the Town of Rock an amount equal to the property taxes the town last levied
on the territory for each of the next five years.
(f)The City estimates that none of the territory within the District will be devoted to
retail business at the end of the District’s maximum expenditure period, pursuant to
Wisconsin Statutes Section 66.1105(5)(b).
(g)The project costs relate directly to promoting industrial development in the District
consistent with the purpose for which the District is created.
(g)Any real property within the District that is found suitable for industrial sites and is
zoned for industrial use will remain zoned for industrial use for the life of the District.
4.The Project Plan for "Tax Incremental District No. 43, City of Janesville" (see Exhibit B) is
approved, and the City further finds the Plan is feasible and in conformity with the master
plan of the City.
BE IT FURTHER RESOLVED THAT the City Clerk is hereby authorized and directed to apply to the
Wisconsin Department of Revenue, in such form as may be prescribed, for a "Determination of Tax
Incremental Base", as of January 1, 2025, pursuant to the provisions of Wisconsin Statutes Section
66.1105(5)(b).
BE IT FURTHER RESOLVED THAT pursuant to Section 66.1105(5)(f) of the Wisconsin Statutes that
the City Assessor is hereby authorized and directed to identify upon the assessment roll returned and
examined under Wisconsin Statutes Section 70.45, those parcels of property which are within the District,
specifying thereon the name of the said District, and the City Clerk is hereby authorized and directed to
make similar notations on the tax roll made under Section 70.65 of the Wisconsin Statutes.
City of Janesville, Wisconsin Tax Incremental District No. 43 Common Council Resolution
Adopted this 9th day of June, 2025.
ADOPTED:
APPROVED:
Kevin M. Lahner, City Manager
ATTEST:
Lorena Rae Stottler, City Clerk-Treasurer
APPROVED AS TO FORM:
Wald Klimczyk, City Attorney
Proposed by:
Prepared by:
Motion by:
Second by:
Councilmember Aye Nay Pass Absent
Burdick
Cass
Erdman
Miller
Neeno
Squire
Williams
June 9, 2025 Cass
Squire
X
X
X
X
X
X
X
EXHIBIT A -
LEGAL BOUNDARY DESCRIPTION
OR
MAP OF
TAX INCREMENTAL DISTRICT NO. 43
CITY OF JANESVILLE
[INCLUDED WITHIN PROJECT PLAN]
EXHIBIT B -
PROJECT PLAN
[DISTRIBUTED SEPARATELY]
June 9, 2025
PROJECT PLAN
City of Janesville, Wisconsin
Tax Incremental District No. 43
Donaldson Innovation Park
Prepared by:
Ehlers
N19W24400 Riverwood Drive,
Suite 100
Waukesha, WI 53188
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Tax Incremental District No. 43 Project Plan City of Janesville
Prepared by Ehlers Page | 2
KEY DATES
Organizational Joint Review Board Meeting Held: March 3, 2025
Public Hearing Held: March 3, 2025
Approval by Plan Commission: March 3, 2025
Adoption by Common Council: June 9, 2025
Approval by the Joint Review Board: July 8, 2025
TABLE OF CONTENTS
Executive Summary.................................................................................................................................. 3
Preliminary Map of Proposed District Boundary .......................................................................... 6
Map Showing Existing Uses and Conditions ................................................................................... 8
Preliminary Parcel List and Analysis ................................................................................................ 10
Equalized Value Test ............................................................................................................................... 11
Statement Listing the Kind, Number and Location of All Proposed Public Works or
Improvements Within the District ..................................................................................................... 12
Map Showing Proposed Improvements and Uses ...................................................................... 18
Detailed List of Estimated Project Costs ........................................................................................ 21
Economic Feasibility Study, Description of the Methods of Financing Estimated
Project Costs and the Time When Related Costs or Monetary Obligations are to be
Incurred ....................................................................................................................................................... 23
Annexed Property ...................................................................................................................................28
Estimate of Property to Be Devoted to Retail Business ..........................................................28
Proposed Changes of Zoning Ordinances, Master Plan, Map, Building Codes and City
Ordinances .................................................................................................................................................28
Statement of the Proposed Method for the Relocation of any Persons to be Displaced
....................................................................................................................................................................... 29
How Creation of the Tax Incremental District Promotes the Orderly Development of
the City ....................................................................................................................................................... 29
List of Estimated Non-Project Costs .............................................................................................. 30
Legal Opinion Advising Whether the Plan is Complete and Complies with Wis. Stat. §
66.1105(4)(f) ............................................................................................................................................... 31
Calculation of the Share of Projected Tax Increments Estimated to be Paid by the
Owners of Property in the Overlying Taxing Jurisdictions .................................................... 34
Tax Incremental District No. 43 Project Plan City of Janesville
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SECTION 1:
Executive Summary
DESCRIPTION OF DISTRICT
Tax Incremental District (“TID”) No. 43 (“District”) is a proposed Industrial
District comprising approximately 133 acres located in the southeastern portion
of the City along County Highway G. The District will be created to pay the
costs of development incentives and an electrical substation needed to support
a proposed industrial park (the “Project”) to be developed by to be determined
parties (the “Developers”). In addition to the incremental property value that
will be created, the City expects the Project will provide employment
opportunities, increased income and sales tax collection, manufacturing
activity, and other benefits to the local economy resulting from the purchase
of goods and services related to construction and operation of the Project.
AUTHORITY
The City is creating the District under the provisions of Wis. Stat. § 66.1105.
ESTIMATED TOTAL PROJECT COST EXPENDITURES
The City anticipates making total expenditures of approximately $23.72 million
(“Project Costs”) to undertake the projects listed in this Project Plan (“Plan”).
Project Costs include an estimated (i) $1.27 million City contribution for a $6.00
million electrical substation to be constructed by Rock Energy Cooperative, (ii)
$14.45 million in pay as you go (“PAYGO”) development incentives, (iii) $401 in
payments to the Town of Rock, (iv) $100,000 for future infrastructure
improvements, (v) $3.28 million for ongoing costs such as interest on long term
debt, financing costs, design, engineering, and soft costs, and the ongoing
planning and administration of the District, and (vi) $4.62 million for the
recovery of land purchase costs.
The City purchased the land on January 26, 2023 and will incentivize the
transfer of the land to the Developers. The City will utilize the land write down
provision to recover the up-front land acquisition costs as revenues are
available in the District.
INCREMENTAL VALUATION
The City projects that new land and improvements value of approximately
$108.64 million will result from the Project. This is based on an expected
1,810,600 square feet of new industrial space assessed at $60/sq.ft. Creation of
this additional value will be made possible by the Project Costs made within the
District. A table detailing assumptions as to the development timing and
Tax Incremental District No. 43 Project Plan City of Janesville
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associated values is included in the Economic Feasibility Study located within
this Plan.
EXPECTED TERMINATION OF DISTRICT
Based on the Economic Feasibility Study located within Section 9 of this Plan,
the City anticipates that the District will generate sufficient tax increment to
pay all Project Costs within 15 of its allowable 20 years.
SUMMARY OF FINDINGS
As required by Wis. Stat. § 66.1105, and as documented in this Plan and the
exhibits contained and referenced herein, the following findings are made:
1. That “but for” the creation of this District, the development projected to
occur as detailed in this Plan: 1) would not occur; or 2) would not occur in
the manner, at the values, or within the timeframe desired by the City. The
City expects to receive one or more requests for tax incremental financing
(“TIF”) assistance and that assistance will be necessary for industrial
development to occur in the District. As requests are submitted, the City
will evaluate each to confirm that the public investment is necessary, and
that “but for” that investment, the related development will not occur. The
development incentives included in this Plan are for purposes of
confirming economic feasibility only and do not reflect a commitment by
the City to provide incentives in any specific amount. Incentive
commitments will be set forth in development agreements for individual
phases and subject to approval by the Common Council. To the extent City
provides incentives, it expects to do so on a “pay as you go basis.”
2. The economic benefits of the District, as measured by increased
employment, business and personal income, and property value, are
sufficient to compensate for the cost of the improvements. In making this
determination, the City has considered that in addition to the incremental
property value that will be created, the City expects the Project to provide
employment opportunities, increased income and sales tax collection,
manufacturing activity, and other benefits to the local economy resulting
from the purchase of goods and services related to construction and
operation of the Project.
3. The benefits of the proposal outweigh the anticipated tax increments to
be paid by the owners of property in the overlying taxing jurisdictions. As
required by Wis. Stat. § 66.1105(4)(i)4., a calculation of the share of
projected tax increments estimated to be paid by the owners of property
in the overlying taxing jurisdictions has been prepared and can be found
in this Plan. However, because the Project would not occur without the use
of tax incremental financing, these tax increments would not be paid but
for creation of the District. Accordingly, the City finds that the benefits
Tax Incremental District No. 43 Project Plan City of Janesville
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expected to be realized as set forth in this Plan outweigh the value of the
tax increments to be invested in the Project.
4. Not less than 50% by area of the real property within the District is suitable
for industrial sites as defined by Wis. Stat. § 66.1101, and has been zoned
for industrial use. Any real property within the District that is found
suitable for industrial sites and is zoned for industrial use at the time of
creation of the District will remain zoned for industrial use for the life of
the District.
5. Based on the foregoing finding, the District is designated as an industrial
district.
6. The Project Costs relate directly to promoting industrial development in
the District, consistent with the purpose for which the District is created.
7. Improvements to be made in the District are likely to significantly enhance
the value of substantially all of the other real property in the District.
8. The equalized value of taxable property in the District, plus the incremental
value of all existing tax incremental districts within the City does not
exceed 12% of the total equalized value of taxable property within the City.
9. The City estimates that none of the territory within the District will be
devoted to retail business at the end of the District’s maximum
expenditure period, pursuant to Wis. Stat. § 66.1105(5)(b).
10. That for those parcels to be included within the District that were annexed
by the City within the three-year period preceding adoption of this
Resolution, the City pledges to pay the Town of Rock an amount equal to
the property taxes the town last levied on the territory for each of the next
five years.
11. The Plan for the District is feasible and is in conformity with the Master Plan
of the City.
Tax Incremental District No. 43 Project Plan City of Janesville
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SECTION 2:
Preliminary Map of Proposed District Boundary
Map Found on Following Page.
Tax Incremental District No. 43 Project Plan City of Janesville
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1
Tax Incremental District No. 43 Project Plan City of Janesville
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SECTION 3:
Map Showing Existing Uses and Conditions
Map Found on Following Page.
Tax Incremental District No. 43 Project Plan City of Janesville
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1
Tax Incremental District No. 43 Project Plan City of Janesville
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SECTION 4:
Preliminary Parcel List and Analysis
The District will include the parcel identified in the tables included below:
1) Estimated based on values as of January 1, 2024. Actual District base value
will be certified using January 1, 2025 valuations which are not yet available.
Any increases in valuation occurring after January 1, 2025 will generate
incremental value.
2) Calculation based on aggregate assessment ratio of 94.06%.
N/A ROW Areas 0.00
1 0424200500 4000 Beloit Ave City of Janesville* 132.60 115.18
TOTALS 132.60 115.18
87%
13%
Total Area 100%
Owner Acres
Percentage of TID Area Zoned and Suitable for Industrial Development (at least
50%)
Percentage of TID Area Not Zoned and Suitable for Industrial Development
*The City purchased the parcel on January 26, 2023 which is more than one year prior to City Council action
to create the District.
Industrial (zoned
and suitable for)
Suitable Acres
Map Reference
Number Parcel Number Address
Calculation of Estimated Base Value1
Parcel Land Improvement Total Land Improvement Total
0424200500 0 0 0 000
TOTALS 0 0 0 0 0 0
Assessed Value Equalized Value2
Tax Incremental District No. 43 Project Plan City of Janesville
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SECTION 5:
Equalized Value Test
The following calculations demonstrate that the City expects to be in
compliance with Wis. Stat. § 66.1105(4)(gm)4.c., which requires that the
equalized value of the taxable property in the proposed District, plus the value
increment of all existing tax incremental districts, does not exceed 12% of the
total equalized value of taxable property within the City.
The equalized value of the increment of existing tax incremental districts within
the City, plus the base value of the proposed District, totals $633,479,800. This
value is less than the maximum of $960,587,328 in equalized value that is
permitted for the City. Following creation of the District, its base value is no
longer counted towards the 12% limit, however, any incremental increase in
value will be included in the calculation for creation of subsequent districts, or
where territory is being added to an existing district.
Calculation of City Equalized Value Limit
City TID IN Equalized Value (Jan. 1, 2024) 8,004,894,400$
TID Valuation Limit @ 12% of Above Value 960,587,328$
Calculation of Value Subject to Limit
Estimated Base Value of Territory to be Included in District -$
Incremental Value of Existing Districts (Jan. 1, 2024) 633,479,800$
Total Value Subject to 12% Valuation Limit 633,479,800$
Total Percentage of TID IN Equalized Value 7.91%
Residual Value Capacity of TID IN Equalized Value 327,107,528$
Tax Incremental District No. 43 Project Plan City of Janesville
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SECTION 6:
Statement Listing the Kind, Number and Location of All
Proposed Public Works or Improvements Within the
District
Project Costs are any expenditure made, estimated to be made, or monetary
obligations incurred or estimated to be incurred as outlined in this Plan. Project
Costs will be diminished by any income, special assessments or other revenues,
including user fees or charges, other than tax increments, received or
reasonably expected to be received in connection with the implementation of
the Plan. If Project Costs incurred benefit territory outside the District, a
proportionate share of the cost is not a Project Cost. Costs identified in this
Plan are preliminary estimates made prior to design considerations and are
subject to change after planning, design and construction is completed.
With all Project Costs, the costs of engineering, design, survey, inspection,
materials, construction, restoring property to its original condition, apparatus
necessary for public works, legal and other consultant fees, testing,
environmental studies, permits, updating City ordinances and plans, judgments
or claims for damages and other expenses are included as Project Costs.
The following is a list of public works and other tax incremental financing
eligible Project Costs that the City expects to make, or may need to make, in
conjunction with the implementation of the District’s Plan. The map found in
Section 7 of this Plan along with the Detailed List of Project Costs found in
Section 8 provide additional information as to the kind, number and location of
potential Project Costs.
Property, Right-of-Way and Easement Acquisition
Property Acquisition for Development
To promote and facilitate development the City may acquire property within
the District. The cost of property acquired, and any costs associated with the
transaction, are eligible Project Costs. Following acquisition, other Project
Costs within the categories detailed in this Section may be incurred to make
the property suitable for development. Any revenue received by the City from
the sale of property acquired pursuant to the execution of this Plan will be used
to reduce the total project costs of the District. If total Project Costs incurred
by the City to acquire property and make it suitable for development exceed
the revenues or other consideration received from the sale or lease of that
property, the net amount shall be considered “real property assembly costs” as
Tax Incremental District No. 43 Project Plan City of Janesville
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defined in Wis. Stat. § 66.1105(2)(f)1.c., and subject to recovery as an eligible
Project Cost.
Property Acquisition for Conservancy
To promote the objectives of this Plan, the City may acquire property within
the District that it will designate for conservancy. These conservancy objectives
include: preserving historic resources or sensitive natural features; protection
of scenic and historic views; maintaining habitat for wildlife; maintaining
adequate open space; reduction of erosion and sedimentation by preserving
existing vegetation; and providing adequate areas for management of
stormwater. The cost of property acquired for conservancy, and any costs
associated with the transaction, are eligible Project Costs.
Acquisition of Rights-of-Way
The City may need to acquire property to allow for installation of streets,
driveways, sidewalks, utilities, stormwater management practices and other
public infrastructure. Costs incurred by the City to identify, negotiate and
acquire rights-of-way are eligible Project Costs.
Acquisition of Easements
The City may need to acquire temporary or permanent easements to allow for
installation and maintenance of streets, driveways, sidewalks, utilities,
stormwater management practices and other public infrastructure. Costs
incurred by the City to identify, negotiate and acquire easement rights are
eligible Project Costs.
Relocation Costs
If relocation expenses are incurred in conjunction with the acquisition of
property, those expenses are eligible Project Costs. These costs may include,
but are not limited to: preparation of a relocation plan; allocations of staff time;
legal fees; publication of notices; obtaining appraisals; and payment of
relocation benefits as required by Wis. Stat. Chapter 32 and Wis. Admin. Code
ADM 92.
Site Preparation Activities
Environmental Audits and Remediation
If it becomes necessary to evaluate any land or improvement within the District,
any cost incurred by the City related to environmental audits, testing, and
remediation are eligible Project Costs.
Tax Incremental District No. 43 Project Plan City of Janesville
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Demolition
To make sites suitable for development, the City may incur costs related to
demolition and removal of structures or other land improvements, to include
abandonment of wells or other existing utility services.
Site Grading
Land within the District may require grading to make it suitable for
development, to provide access, and to control stormwater runoff. The City
may need to remove and dispose of excess material, or bring in fill material to
provide for proper site elevations. Expenses incurred by the City for site
grading are eligible Project Costs.
Utilities
Sanitary Sewer System Improvements
To allow development to occur, the City may need to construct, alter, rebuild
or expand sanitary sewer infrastructure within the District. Eligible Project
Costs include, but are not limited to, construction, alteration, rebuilding or
expansion of: collection mains; manholes and cleanouts; service laterals; force
mains; interceptor sewers; pumping stations; lift stations; wastewater treatment
facilities; and all related appurtenances. To the extent sanitary sewer projects
undertaken within the District provide direct benefit to land outside of the
District, the City will make an allocation of costs based on such benefit. Those
costs corresponding to the benefit allocated to land within the District, and
necessitated by the implementation of the Project Plan, are eligible Project
Costs. Implementation of the Project Plan may also require that the City
construct, alter, rebuild or expand sanitary sewer infrastructure located outside
of the District. That portion of the costs of sanitary sewer system projects
undertaken outside the District which are necessitated by the implementation
of the Project Plan are eligible Project Costs.
Water System Improvements
To allow development to occur, the City may need to construct, alter, rebuild
or expand water system infrastructure within the District. Eligible Project Costs
include, but are not limited to, construction, alteration, rebuilding or expansion
of: distribution mains; manholes and valves; hydrants; service laterals; pumping
stations; wells; water treatment facilities; storage tanks and reservoirs; and all
related appurtenances. To the extent water system projects undertaken within
the District provide direct benefit to land outside of the District, the City will
make an allocation of costs based on such benefit. Those costs corresponding
to the benefit allocated to land within the District, and necessitated by the
Tax Incremental District No. 43 Project Plan City of Janesville
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implementation of the Project Plan, are eligible Project Costs. Implementation
of the Project Plan may also require that the City construct, alter, rebuild or
expand water system infrastructure located outside of the District. That portion
of the costs of water system projects undertaken outside the District which are
necessitated by the implementation of the Project Plan are eligible Project
Costs.
Stormwater Management System Improvements
Development within the District will cause stormwater runoff. To manage this
stormwater runoff, the City may need to construct, alter, rebuild or expand
stormwater management infrastructure within the District. Eligible Project
Costs include, but are not limited to, construction, alteration, rebuilding or
expansion of: stormwater collection mains; inlets, manholes and valves; service
laterals; ditches; culvert pipes; box culverts; bridges; stabilization of stream and
river banks; and infiltration, filtration and detention Best Management Practices
(BMP’s). To the extent stormwater management system projects undertaken
within the District provide direct benefit to land outside of the District, the City
will make an allocation of costs based on such benefit. Those costs
corresponding to the benefit allocated to land within the District, and
necessitated by the implementation of the Project Plan, are eligible Project
Costs. Implementation of the Project Plan may also require that the City
construct, alter, rebuild or expand stormwater management infrastructure
located outside of the District. That portion of the costs of stormwater
management system projects undertaken outside the District which are
necessitated by the implementation of the Project Plan are eligible Project
Costs.
Electric Service
To create sites suitable for development, the City may incur costs to provide,
relocate or upgrade electric services. Such costs may require abandonment and
removal of existing poles or towers, installation of new poles or towers, burying
of overhead electric lines, or construction of a new substation. Costs incurred
by the City to undertake this work are eligible Project Costs.
Gas Service
To create sites suitable for development, the City may incur costs to provide,
relocate or upgrade gas mains and services. Costs incurred by the City to
undertake this work are eligible Project Costs.
Tax Incremental District No. 43 Project Plan City of Janesville
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Communications Infrastructure
To create sites suitable for development, the City may incur costs to provide,
relocate or upgrade infrastructure required for voice and data communications,
including, but not limited to: telephone lines, cable lines and fiber optic cable.
Costs incurred by the City to undertake this work are eligible Project Costs.
Streets and Streetscape
Street Improvements
To allow development to occur, the City may need to construct or reconstruct
streets, highways, alleys, access drives and parking areas. Eligible Project Costs
include, but are not limited to: excavation; removal or placement of fill;
construction of road base; asphalt or concrete paving or repaving; installation
of curb and gutter; installation of sidewalks and bicycle lanes; installation of
culverts, box culverts and bridges; rail crossings and signals; utility relocation,
to include burying overhead utility lines; street lighting; installation of traffic
control signage and traffic signals; pavement marking; right-of-way restoration;
installation of retaining walls; and installation of fences, berms, and landscaping.
Streetscaping and Landscaping
To attract development consistent with the objectives of this Plan, the City may
install amenities to enhance development sites, rights-of-way and other public
spaces. These amenities include, but are not limited to: landscaping; lighting of
streets, sidewalks, parking areas and public areas; installation of planters,
benches, clocks, tree rings, trash receptacles and similar items; and installation
of brick or other decorative walks, terraces and street crossings. These and any
other similar amenities installed by the City are eligible Project Costs.
Community Development
Cash Grants (Development Incentives)
The City may enter into agreements with property owners, lessees, or
developers of land located within the District for sharing costs to encourage
the desired kind of improvements and assure tax base is generated sufficient
to recover Project Costs. No cash grants will be provided until the City executes
a developer agreement with the recipient of the cash grant. Any payments of
cash grants made by the City are eligible Project Costs.
Tax Incremental District No. 43 Project Plan City of Janesville
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Miscellaneous
Property Tax Payments to Town
Property tax payments due to the Town of Rock under Wis. Stat. §
66.1105(4)(gm)1. because of the inclusion of lands annexed after January 1,
2004 within the boundaries of the District are an eligible Project Cost.
Professional Service and Organizational Costs
The costs of professional services rendered, and other costs incurred, in relation
to the creation, administration and termination of the District, and the
undertaking of the projects contained within this Plan, are eligible Project Costs.
Professional services include but are not limited to: architectural;
environmental; planning; engineering; legal; audit; financial; and the costs of
informing the public with respect to the creation of the District and the
implementation of the Plan.
Administrative Costs
The City may charge to the District as eligible Project Costs reasonable
allocations of administrative costs, including, but not limited to, employee
salaries. Costs allocated will bear a direct connection to the time spent by City
employees relating to the implementation of the Plan.
Financing Costs
Interest expense, debt issuance expenses, redemption premiums, and any other
fees and costs incurred in conjunction with obtaining financing for projects
undertaken under this Plan are eligible Project Costs.
Tax Incremental District No. 43 Project Plan City of Janesville
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SECTION 7:
Map Showing Proposed Improvements and Uses
Map Found on Following Page.
Tax Incremental District No. 43 Project Plan City of Janesville
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The City has identified funds for an electrical
substation and development incentives for
qualified development projects on parcel
0424200500 though detailed infrastructure
plans are not available at the time of TID
creation. The City will also incur
administrative and other professional
service expenses in the implementation of
this Project Plan.
1
Tax Incremental District No. 43 Project Plan City of Janesville
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Preliminary Site Plan*
*The location of the electrical substation is to be determined. This Project Plan
assumes the northern building, represented in orange above, will only be
800,000 square feet to allow space for the electrical substation to be
constructed within the District boundaries.
Tax Incremental District No. 43 Project Plan City of Janesville
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SECTION 8:
Detailed List of Estimated Project Costs
The list on the following page identifies the Project Costs that the City currently
expects to incur in implementing the District’s Plan. All projects identified and
related costs reflect the best estimates available as of the date of preparation
of this Plan. All costs are preliminary estimates and may increase or decrease.
Certain Project Costs listed may become unnecessary, and other Project Costs
not currently identified may need to be made. (Section 6 details the general
categories of eligible Project Costs). Changes in Project Cost totals or the types
of Project Costs to be incurred will not require that this Plan be amended. This
Plan is not meant to be a budget nor an appropriation of funds for specific
Project Costs, but a framework within which to manage Project Costs.
Tax Incremental District No. 43 Project Plan City of Janesville Prepared by Ehlers Page | 22 Project Name/Type Phase IPhase II Ongoing Totals Est. Timing1Land Purchase24,620,0004,620,000202322Rock Energy Cooperative Substation ‐ City Portion31,274,8261,274,82620253Design, Engineering, and Soft Costs4600,000600,000TBD4Infrastructure4100,000100,000TBD5"Pay As You Go" Development Incentives53,941,682 10,505,30114,446,9832025‐20406Payments to Town of Rock 4014012026‐20307Interest on Long Term Debt62,440,8012,440,8012026‐20458Ongoing Planning & Administrative Costs 235,000235,0002025‐2046Total Projects9,836,508 10,505,301 3,376,202 23,718,010Notes:1) Represents preliminary cost estimates as provided by City officials on August 20, 2024 and May 9, 2025.2) The City plans to incentivize the land sale and recover the land purchase cost through the land write down provision.6) The City will only be responsible for the debt service for the Rock Energy Cooperative substation until it reaches its capacity which is anticipated to occur by 2032. Represents the estimated interest amount of the loan that will be repaid through 2032.Est. Cost15) Incentive amounts shown are included for purposes of establishing economic feasibility only. The amount of any incentive to be provided will be established in applicable development agreements and may vary from the estimates.Project ID3) The City will only be responsible for the debt service for the Rock Energy Cooperative substation until it reaches its capacity which is anticipated to occur by 2032. Represents the estimated principal amount of the loan that will be repaid through 2032.4) Costs are included as an eligible expense to the extent they become necessary. However, such costs are not included in the Cash Flow model for the District.
Tax Incremental District No. 42 Project Plan City of Janesville
Prepared by Ehlers Page | 23
SECTION 9:
Economic Feasibility Study, Description of the Methods
of Financing Estimated Project Costs and the Time When
Related Costs or Monetary Obligations are to be Incurred
This Section includes a forecast of the valuation increases expected within the
District, the associated tax increment collections, a summary of how Project
Costs would be financed, and a projected cash flow demonstrating that the
District is economically feasible.
Key Assumptions
The Project Costs the City plans to make are expected to create $108.64 million
in incremental value by January 1, 2030. Estimated valuations and timing for
construction of the Project are included in Table 1. Assuming the City’s current
equalized TID Interim tax rate of $17.73 per thousand of equalized value, and
no economic appreciation or depreciation, the Project would generate $34.02
million in incremental tax revenue over the 20-year term of the District as
shown in Table 2.
Tax Incremental District No. 42 Project Plan City of Janesville
Prepared by Ehlers Page | 24
Table 1 – Development Assumptions
Annual Total
Sq. Ft. Total Value Sq. Ft. Total Value Sq. Ft. Total Value
Estimated Value per
1 2025 494,000 29,640,000 29,640,000 2025 1
2 2026 0 2026 2
3 2027 516,600 30,996,000 30,996,000 2027 3
4 2028 0 2028 4
5 2029 800,000 48,000,000 48,000,000 2029 5
6 2030 0 2030 6
7 2031 0 2031 7
8 2032 0 2032 8
9 2033 0 2033 9
10 2034 0 2034 10
11 2035 0 2035 11
12 2036 0 2036 12
13 2037 0 2037 13
14 2038 0 2038 14
15 2039 0 2039 15
16 2040 0 2040 16
17 2041 0 2041 17
18 2042 0 2042 18
19 2043 0 2043 19
20 2044 0 2044 20
Totals 494,000 29,640,000 516,600 30,996,000 800,000 48,000,000 108,636,000
Notes:
Phase 1
$60
1) Timing assumes one area completed every two years.
Planned Development Future Dev. 1 Future Dev. 2Construction Year Construction
Year
$60 $60
Tax Incremental District No. 42 Project Plan City of Janesville
Prepared by Ehlers Page | 25
Table 2 – Tax Increment Projection Worksheet
Type of District Base Value 0
District Creation Date Economic Change Factor 0.00%
Valuation Date Jan 1, 2025 Apply to Base Value
Max Life (Years) Base Tax Rate $17.73
Expenditure Period/Termination 15 4/8/2040 Rate Adjustment Factor 0.00%
Revenue Periods/Final Year 20 2046
Extension Eligibility/Years Yes 3
Eligible Recipient District
Construction
Year Value Added
Valuation
Year
Economic
Change
Total
Increment
Revenue
Year Tax Rate1 Tax Increment
1 2025 29,640,000 2026 0 29,640,000 2027 $17.73 525,558
2 2026 0 2027 0 29,640,000 2028 $17.73 525,558
3 2027 30,996,000 2028 0 60,636,000 2029 $17.73 1,075,159
4 2028 0 2029 0 60,636,000 2030 $17.73 1,075,159
5 2029 48,000,000 2030 0 108,636,000 2031 $17.73 1,926,264
6 2030 0 2031 0 108,636,000 2032 $17.73 1,926,264
7 2031 0 2032 0 108,636,000 2033 $17.73 1,926,264
8 2032 0 2033 0 108,636,000 2034 $17.73 1,926,264
9 2033 0 2034 0 108,636,000 2035 $17.73 1,926,264
10 2034 0 2035 0 108,636,000 2036 $17.73 1,926,264
11 2035 0 2036 0 108,636,000 2037 $17.73 1,926,264
12 2036 0 2037 0 108,636,000 2038 $17.73 1,926,264
13 2037 0 2038 0 108,636,000 2039 $17.73 1,926,264
14 2038 0 2039 0 108,636,000 2040 $17.73 1,926,264
15 2039 0 2040 0 108,636,000 2041 $17.73 1,926,264
16 2040 0 2041 0 108,636,000 2042 $17.73 1,926,264
17 2041 0 2042 0 108,636,000 2043 $17.73 1,926,264
18 2042 0 2043 0 108,636,000 2044 $17.73 1,926,264
19 2043 0 2044 0 108,636,000 2045 $17.73 1,926,264
20 2044 0 2045 0 108,636,000 2046 $17.73 1,926,264
Totals 108,636,000 0 Future Value of Increment 34,021,663
Notes:
1) Tax rate shown is actual 2024/2025 rate per DOR Form PC‐202 (Tax Increment Collection Worksheet).
Industrial
April 8, 2025
20
No
Tax Incremental District No. 42 Project Plan City of Janesville
Prepared by Ehlers Page | 26
Financing and Implementation
One of the District’s primary expenditures will be development incentives.
Incentives will be paid on a “pay as you go” basis from the tax increment
generated by the specified project(s) and may be structured in one or more
phases. Payments will be made from and strictly limited to the tax increments
generated by the District. The incentives are not considered City debt nor will
the City appropriate funds to make incentive payments from any other sources
aside from the tax increment generated by the District.
Rock Energy Cooperative will construct an electrical substation in the District.
The project will be funded through the issuance of debt, and tax increment
generated by the District will be used to repay the debt service until the
substation reaches its capacity (anticipated to occur by 2032). The City may
also finance any additional infrastructure costs through the issuance of General
Obligation Bonds with debt service to be paid from the tax increment
generated by the District. Cost of issuance will be paid from bond proceeds,
and any interest due prior to availability of tax increment may be capitalized.
The City intends to utilize fund balance from other City funds to cover any
shortfalls to the extent tax incremental revenues are not sufficient to cover the
annual debt service. Any such use of fund balance will be reimbursed to the
City when revenues are available within the District.
The City will also incur costs to create and administer the District. Costs
incurred by the City prior to availability of tax increments will be paid from
other funds of the City to be reimbursed. Once tax increments are collected,
these costs will be paid from annual District revenue.
Based on the Project Cost expenditures as included within the cash flow exhibit
(Table 3), the District is projected to accumulate sufficient funds by the year
2041 to pay off all Project cost liabilities and obligations. The projected closure
is based on the various assumptions noted in this Plan and will vary dependent
on actual Project Costs incurred and the actual amount of tax increments
collected.
Tax Incremental District No. 43 Project Plan City of Janesville Prepared by Ehlers Page | 27 Table 3 – Cash Flow MRO #1 MRO #2 MRO #32025 2027 2029Dated Date: Planned Development2Future Dev. 12Future Dev. 22Year Principal Est. Rate Interest $3,941,682 $4,122,010 $6,383,291Year2025025,00025,000(25,000) (25,000)12,277,309 20252026096,314 6.25% 434,49080 10,000540,884(540,884) (565,884)11,746,505 20262027 525,558525,558167,044 6.25% 363,760 394,168 80 10,000935,052(409,495) (975,379)14,943,543 20272028 525,558525,558177,821 6.25% 352,983 394,168 80 10,000935,052(409,495) (1,384,873)14,018,571 20282029 1,075,1591,075,159189,293 6.25% 341,511 394,168 412,201 80 10,0001,347,253(272,094) (1,656,967)19,064,688 20292030 1,075,1591,075,159201,505 6.25% 329,299 394,168 412,201 80 10,0001,347,253(272,094) (1,929,062)17,727,515 20302031 1,926,2641,926,264214,506 6.25% 316,298 394,168 412,201 638,329 10,0001,985,502(59,238) (1,988,299)15,752,013 20312032 1,926,2641,926,264228,345 6.25% 302,459 394,168 412,201 638,329 10,0001,985,502(59,238) (2,047,537)13,776,511 20322033 1,926,2641,926,264394,168 412,201 638,329 10,0001,454,698471,566(1,575,971)12,331,813 20332034 1,926,2641,926,264394,168 412,201 638,329 10,0001,454,698471,566(1,104,405)10,887,115 20342035 1,926,2641,926,264394,168 412,201 638,329 10,0001,454,698471,566(632,839)9,442,417 20352036 1,926,2641,926,264394,168 412,201 638,329 10,0001,454,698471,566(161,273)7,997,718 20362037 1,926,2641,926,264412,201 638,329 704,462 10,0001,764,992161,273 0 6,242,727 20372038 1,926,2641,926,264412,201 638,329 865,734 10,0001,926,2640 0 4,326,462 20382039 1,926,2641,926,264638,329 1,277,935 10,0001,926,2640 0 2,410,198 20392040 1,926,2641,926,264638,329 1,277,935 10,0001,926,2640 0 493,934 20402041 1,926,2641,926,264493,934 10,000503,934 1,422,331 1,422,331 020412042 1,926,2641,926,2640 10,00010,0001,916,264 3,338,595 0 20422043 1,926,2641,926,26410,00010,0001,916,264 5,254,859 0 20432044 1,926,2641,926,26410,00010,0001,916,264 7,171,124 0 20442045 1,926,2641,926,26410,00010,0001,916,264 9,087,388 0 20452046 1,926,2641,926,26410,00010,0001,916,264 11,003,653 0 2046Totals (2025 ‐ 2046)34,021,663 34,021,663 1,274,826 2,440,801 3,941,682 4,122,010 6,383,291 4,620,000 401 235,000 23,018,010Totals (2025 ‐ 2046)Notes:1) Assumes the loan is taken out for a twenty year term at a rate of 6.25%. The City will only be responsible for the debt service until the new substation reaches its capacity which is anticipated to occur by 2032.2) Assumes the developments receive a 10‐year 75% PAYGO incentive.LEGEND:3) Parcel 0424200500 was annexed by the City on October 27, 2023. Represents the estimated apportioned Town portion of the most recent tax bill prior to annexation.CALLABLE MATURITIESEND OF EXP. PERIODTax IncrementsProjected ExpendituresProjected RevenuesTotal RevenuesBalances2025 Rock Energy Loan¹$6,000,00006/01/25Payments to Town of Rock3Annual CumulativeLiabilities OutstandingReimbursement of Phase 1 Land Purchase CostsTotal ExpendituresOngoing Planning & AdministrationPROJECTED CLOSURE YEAR
Tax Incremental District No. 43 Project Plan City of Janesville
Prepared by Ehlers Page | 28
SECTION 10:
Annexed Property
A tax incremental district cannot include annexed territory unless at least three
years have elapsed since the annexation, or certain other requirements are met.
Since property within the proposed District boundary has been annexed within
the past three years (parcel 0424200500 was annexed by the City on October
27, 2023), the City pledges to pay the Town of Rock for each of the next five
years an amount equal to the property taxes levied on the territory by the town
at the time of the annexation. Such payments allow for inclusion of the annexed
lands as a permitted exception under Wis. Stat. § 66.1105(4)(gm)1.
SECTION 11:
Estimate of Property to Be Devoted to Retail Business
Pursuant to Wis. Stat. § 66.1105(5)(b), the City estimates that none of the
territory within the District will be devoted to retail business at the end of the
District’s maximum expenditure period.
SECTION 12:
Proposed Changes of Zoning Ordinances, Master Plan,
Map, Building Codes and City Ordinances
Zoning Ordinances
The proposed Plan is in general conformance with the City’s current zoning
ordinances. Individual properties may require rezoning at the time of
development. Land within the District zoned industrial at the time of District
creation will remain in a zoning classification suitable for industrial sites for the
life of the District.
Master (Comprehensive) Plan and Map
The proposed Plan is in general conformance with the City’s Comprehensive
Plan identifying the area as appropriate for industrial development.
Building Codes and Ordinances
Development within the District will be required to conform to State Building
Codes and will be subject to the City's permitting and inspection procedures.
The proposed Plan conforms to all relevant State and local ordinances, plans,
and codes. No changes to the existing regulations are proposed or needed.
Tax Incremental District No. 42 Project Plan City of Janesville
Prepared by Ehlers Page | 29
SECTION 13:
Statement of the Proposed Method for the Relocation of
any Persons to be Displaced
Should implementation of this Plan require relocation of individuals or business
operations, relocations will be handled in compliance with Wis. Stat. Chapter
32 and Wis. Admin. Code ADM 92.
SECTION 14:
How Creation of the Tax Incremental District Promotes
the Orderly Development of the City
Creation of the District and the implementation of the projects in its Plan will
promote the orderly development of the City by creating new industrial sites
by providing necessary public infrastructure improvements and appropriate
financial incentives for private development projects. Through use of tax
increment financing, the City can attract new investment that results in
increased tax base. Development will occur in an orderly fashion in accordance
with approved plans so that the Projects will be compatible with adjacent land
uses. Development of new uses in the District will add to the tax base and will
generate positive secondary impacts in the community such as increased
employment opportunities, increased income and sales tax collection,
manufacturing activity, and other benefits to the local economy resulting from
the purchase of goods and services related to construction and operation of
the Project.
Tax Incremental District No. 42 Project Plan City of Janesville
Prepared by Ehlers Page | 30
SECTION 15:
List of Estimated Non-Project Costs
Non-project costs are public works projects which only partly benefit the
District. Costs incurred that do not benefit the District may not be paid with tax
increments. Examples of non-project costs are:
A public improvement made within the District that also benefits
property outside the District. That portion of the total Project Costs
allocable to properties outside of the District would be a non-project
cost.
A public improvement made outside the District that only partially
benefits property within the District. That portion of the total Project
Costs allocable to properties outside of the District would be a non-
project cost.
Projects undertaken within the District as part of the implementation of
this Project Plan, the costs of which are paid fully or in part by impact
fees, grants, special assessments, or revenues other than tax increments.
No improvements to be made within the District will benefit property outside
the District. Furthermore, there will be no improvements made outside the
District that will only partially benefit the District.
Tax Incremental District No. 42 Project Plan City of Janesville
Prepared by Ehlers Page | 31
SECTION 16:
Legal Opinion Advising Whether the Plan is Complete
and Complies with Wis. Stat. § 66.1105(4)(f)
Legal Opinion Found on Following Pages.
Tax Incremental District No. 42 Project Plan City of Janesville
Prepared by Ehlers Page | 32
Tax Incremental District No. 42 Project Plan City of Janesville
Prepared by Ehlers Page | 33
Tax Incremental District No. 42 Project Plan City of Janesville
Prepared by Ehlers Page | 34
SECTION 17:
Calculation of the Share of Projected Tax Increments
Estimated to be Paid by the Owners of Property in the
Overlying Taxing Jurisdictions
The following projection is provided to meet the requirements of Wis. Stat. §
66.1105(4)(i)4. Allocation of future tax increments is based on the projections
included in this Plan and assumes the same proportions as the actual
breakdown of tax collections for the 2024/2025 levy year.
Revenue
Year Rock County
City of
Janesville
School District
of Janesville
Blackhawk
Technical
College Total
Revenue
Year
2027 121,637 181,063 198,930 23,928 525,558 2027
2028 121,637 181,063 198,930 23,928 525,558 2028
2029 248,838 370,409 406,960 48,951 1,075,159 2029
2030 248,838 370,409 406,960 48,951 1,075,159 2030
2031 445,821 663,629 729,113 87,701 1,926,264 2031
2032 445,821 663,629 729,113 87,701 1,926,264 2032
2033 445,821 663,629 729,113 87,701 1,926,264 2033
2034 445,821 663,629 729,113 87,701 1,926,264 2034
2035 445,821 663,629 729,113 87,701 1,926,264 2035
2036 445,821 663,629 729,113 87,701 1,926,264 2036
2037 445,821 663,629 729,113 87,701 1,926,264 2037
2038 445,821 663,629 729,113 87,701 1,926,264 2038
2039 445,821 663,629 729,113 87,701 1,926,264 2039
2040 445,821 663,629 729,113 87,701 1,926,264 2040
2041 445,821 663,629 729,113 87,701 1,926,264 2041
2042 445,821 663,629 729,113 87,701 1,926,264 2042
2043 445,821 663,629 729,113 87,701 1,926,264 2043
2044 445,821 663,629 729,113 87,701 1,926,264 2044
2045 445,821 663,629 729,113 87,701 1,926,264 2045
2046 445,821 663,629 729,113 87,701 1,926,264 2046
Totals 7,874,086 11,721,008 12,877,594 1,548,975 34,021,663
2025-2314
Final Audit Report 2025-06-13
Created:2025-06-10
By:Elizabeth Lopez (lopeze@janesvillewi.gov)
Status:Signed
Transaction ID:CBJCHBCAABAAG4AW9b8sojLpGG-o9HDUsjGX6kRQrPRZ
"2025-2314" History
Document created by Elizabeth Lopez (lopeze@janesvillewi.gov)
2025-06-10 - 7:03:02 PM GMT
Document emailed to Kevin Lahner (lahnerk@janesvillewi.gov) for signature
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Email viewed by Kevin Lahner (lahnerk@janesvillewi.gov)
2025-06-13 - 2:04:29 AM GMT
Document e-signed by Kevin Lahner (lahnerk@janesvillewi.gov)
Signature Date: 2025-06-13 - 2:04:57 AM GMT - Time Source: server
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Document e-signed by Lorena Stottler (stottlerl@janesvillewi.gov)
Signature Date: 2025-06-13 - 1:24:44 PM GMT - Time Source: server
Agreement completed.
2025-06-13 - 1:24:44 PM GMT