2007-374
Resolution 2007 - 374
A Resolution Approving a TIF Development Agreement with and Authorizing a $200,000 TIF
Development Loan to Tigre, USA -- TIF No. 26
WHEREAS, Sections 66.1105 and 66.1101 of Wisconsin Statutes authorize cities to utilize tax
increment financing to promote industry and implement economic development projects; and
WHEREAS, the Common Council has authorized the use of Tax Increment Financing Districts for
industrial site development and TIF Development agreements when the Council adopted amended
Council Policy Statement No. 61 (Economic Development Policy) on the 13th day of June, 1994; and,
WHEREAS, Tigre, USA (hereinafter "Tigre"), desires to start a new plastics pipe fittings
manufacturing facility at 2315 Beloit Ave. located within Tax Increment Finance (TIF) District No. 26,
as amended; and
WHEREAS, Tigre and the City have negotiated a TIF Development Agreement and Promissory Note,
a copy of which is attached hereto and incorporated herein as if fully set forth, and which calls for the
City to loan Tigre $200,000 at 5% interest amortized over 10 years to assist in the leasehold
improvements and installation of injection molding equipment at 2315 Beloit Ave.; and
WHEREAS, the Common Council of the City of Janesville lawfully adopted Amendment No. 1 to the
TIF No. 26 Project Plan on the 12th day of February, 2007, and a Joint Review Board approved
Amendment No.1 to the Project Plan on the 14th day of February, 2007; and,
WHEREAS, the Common Council of the City of Janesville finds the approval of the TIF Development
Agreement and the making of a $200,000 Development Loan to Tigre in TIF No. 26 to be in the best
interest of and benefit to the City, its citizens, and the overall community;
NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Janesville that it
hereby approves TIF Development Agreement and Promissory Note with Tigre USA and authorizes a
$200,000 TIF Development Loan to Tigre USA according to the terms and conditions set forth in the
attached TIF Development Agreement and Promissory Note, and
BE IT FURTHER RESOLVED, that the City Manager, on behalf of the City of Janesville, is hereby
authorized to negotiate, draft, modify, amend, review, and file all such other documents, papers, and
agreements, to take whatever other actions, and to make whatever changes and amendments to the
TIF Development Agreement and Promissory Note, and such other documents and agreements which
the City Manager may, from time to time, deem necessary and/or desirable to effectuate the intent of
this Resolution.
Resolution 2007- 374
Page 2
ADOPTED:
February 26, 2007
Motion by: Williams
Second by: Wellnitz, Tom
Councilmember Aye Nay Pass Absent
Brien X
Wellnitz, Tom X
Williams X
Brunner X
Wellnitz, Tim X
DeGarmo X
Addie X
APPROVED:
4~,A~
StëVen E. Sheiffer, City Manager
APPROVED AS TO FORM:
II/<MM
City Attorney
Proposed by:
Prepared by:
Cit,. -Manag-er
Director of· Ecoflomic Development
I. Parties
Summary of TIF Development Agreement and Promissory Note
Between City of Janesville and Tigre USA for a $200,000 TIF Loan
for a Development Project in TIF No. 26
A. City of Janesville
B. Tigre, USA, Inc. (Developer/Promissor)
II. Description of the Property -- 2315 Beloit Ave. - TIF No. 26
III. Purpose of the Aqreement -- Support leasehold improvement and equipment costs
IV. Terms of the Aqreement
C.
entity.
A.
The City shall:
1 . Prepare and approve Amendment to TI F 26 Project Plan
2. Contingent upon Joint Review Board approval of TIF amendment, and upon
issuance of Occupancy Permit, make a $200,000 TIF Development Loan
Tigre, USA shall:
1. Complete $500,000 renovation of 2315 Beloit Ave.
2. Purchase and install $3,390,000 in injection molding machinery and related
tooling and equipment.
3. Commit to use best efforts to create twenty (20) new full-time jobs before
December 31,2007
B.
For the entire term of the lease, Tigre USA must remain a taxable corporate
D.
Developer contingencies to be met by April 30, 2007:
1. Signing of a binding lease for not less than 35,000 SF
2. Receipt of all plan approvals and building permits.
3. Commitments for needed construction financing.
E.
City must receive waiver or satisfaction of contingencies before being bound to
Agreement.
F.
Tigre USA has the right to prepay Development Loan.
TIF Development Loan Terms and Conditions
1. Loan Amount:
2. Loan Purpose:
3. Loan Term:
4. Interest Rate:
5. Annual Debt Service:
6. Job Commitments:
7. Debt Service Forgiveness:
$200,000
Renovation at 2315 Beloit Ave. and New
manufacturing equipment.
10 years
5.00%
$25,455.00 (may be forgiven if job commitments are
met.
Create and maintain Twenty (20) new jobs by
December 31 , 2007
. 2008 - 2017 For each year Tigre employs 20 or more workers, the
entire $25,455 debt service payment is forgiven for
that year.
For each year that Tigre employs less than 20
workers, Tigre will repay (20 jobs - actual average
employment times $1,272.75) in debt service for that
year.
8. Loan Closing:
· Phase 1 -- $100,000 after Tigre completes $300,000 in building
renovation and installs $1,475,000 in manufacturing
machinery & equipment
· Phase 2 -- $100,000 after Tigre completes an additional $200,000
in building renovation, installs an additional
$1,915,000 in manufacturing equipment, and creates
20 jobs
9. Loan Security $200,000 mortgage against manufacturing
equipment.
10. Loan Payments Due: Anniversary date of loan closing
11. Closing of Facility If Tigre closes the facility at 2315 Beloit Ave., then
unpaid loan balance is immediately due and payable.
However, Tigre can move to another Janesville
location as long as it maintains the 20 new jobs.