2007-403
Resolution No. 2007 - 403
A Resolution Approving a TIF Development Agreement with the Forward
Foundation for the Redevelopment of Properties at 14 and 18 S. Jackson St. and
Authorizing the City Manager to Purchase a Parcel of land from Forward
Foundation for a Purchase price of $18,000
WHEREAS, the Common Council have authorized the use of Tax Increment Financing ("TIF")
Districts and TIF Development agreements when the Council adopted amended Council Policy
Statement No. 61 (Economic Development Policy) on the 13th day of November, 2006; and,
WHEREAS, the Common Council of the City of Janesville lawfully created Tax Increment
Finance (TIF) District No. 24 on the 24th day of July 2002, which TIF District was duly reviewed
and approved by all necessary boards and commissions; and,
WHEREAS, Forward Foundation, Inc., is a Wisconsin non-stock, non-profit corporation in good
standing, conducting its principal business at 51 South Jackson Street, Janesville, Wisconsin
53545, with John Beckford Registered Agent, desires to renovate certain real properties that it
owns located at 14 and 18 South Jackson Street in the City of Janesville, County of Rock, State
of Wisconsin 53545, thereby revitalizing and redeveloping the City's downtown, helping
eliminate blight, increasing the value of said real and personal property, adding to the City's tax
base, and otherwise benefiting the health, welfare, peace and good order of the CITY, its
downtown and the overall community; and,
WHEREAS, in order to facilitate the planned renovation project, Forward Foundation, Inc. and
the CITY have negotiated a TIF Development Agreement ("Agreement") that is consistent with
the goals of TIF No. 24; and,
WHEREAS, said Agreement, which is attached hereto and incorporated herein by reference as
if fully set forth verbatim, sets forth the terms and conditions of the planned renovation project
and provides for Forward Foundation's full repayment of the City's TIF development costs in a
manner and within a time allowed by Wisconsin law; and
WHEREAS, under the terms of the Agreement, the CITY shall acquire in fee simple the western
one-half of the properties located at 14 and 18 South Jackson Street from Forward Foundation,
Inc. for a purchase price of Eighteen Thousand and 00/100 ($18,000.00); and
WHEREAS, the Janesville Plan Commission reviewed the proposed purchase, acquisition and
sale of properties related to the planned renovation project and found such purchase by the
CITY and sale to be consistent with CITY plans, but did not comment on the financial aspects of
any specific transaction; and
WHEREAS, the Common Council of the City of Janesville find that both the approval of said
Agreement and the City's purchase acquisition of the western one-half of the two properties
located at 14 and 18 South Jackson Street are both in the best interest of and benefit to the
City, its good order, its citizens, and the overall community; and
WHEREAS, various Wisconsin's laws including, but not limited to, Wis. Stats. ~~ 62.11 (5),
62.22(1),66.0101, and 66.1105 jointly and severally empower the Common Council and the
City to enter into this purchase and related Agreement.
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Resolution No. 2007-403
Page 2
NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Janesville that:
1. Each of the above recitals and findings is reiterated and incorporated herein by
reference as if fully set forth verbatim; and
2. The attached Agreement by and between the City and Forward Foundation, Inc.
is hereby approved; the City Administration may enter into said Agreement on
behalf of the City; and
3. The City's purchase of the western one-half of the two parcels of real property
located at 14 and 18 South Jackson Street from Forward Foundation, Inc. is
authorized and approved in accord with the terms and conditions set forth said
Agreement; the City Administration may effectuate said acquisition purchase(s)
on behalf of the City.
BE IT FURTHER RESOLVED, that the City Manager, on behalf of the City of Janesville,
is hereby authorized to negotiate, draft, modify, review, enter into and amend the
Agreement and all other related documents, papers and agreements; to take whatever
other actions; and to make whatever other changes, modifications and amendments to
the purchase(s) authorized herein that the City Manager may, from time to time, deem
necessary andlor desirable to effectuate the intent of this Resolution.
ADOPTED: May 29. 2007 Motion by: Williams
Second by: Loaschiup
APPROVED: Council member Aye Nay Pass Absent
~~ Z:-' ~ft~ Brunner X
DeGarmo X
Steven E. Sheiffer, City Manager Loasching X
Steeber X
ATTEST: Truman X
~ Wellnitz X
Williams X
nn Wulf, City Clerk-Treas'ir
APPROVED AS TO FORM:
~~~~
City Attorney ,
Proposed by: City Manager
Prepared by: Economic Development Director and
City Attorney
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Summary of TIF Development Agreement
By and Between
City of Janesville and the Forward Foundation
I. Parties
A. City of Janesville
B. Forward Foundation
II. Description of Property
III. Purpose of Agreement
IV. The Agreement
A. The City shall:
1) Prepare a survey of the property after land purchase and sale. Cost to be shared
50/50.
2) Upon financial review, purchase western Yo of 14 and 18 S. Jackson St. for $18,000.
3) Construct new public parking lot on western Yo of 14 and 18 S. Jackson St.
4) Reimburse Forward Foundation for $37,500 in development costs.
B. Forward Foundation shall:
1) Reimburse City of 50% of cost of survey.
2) Provide financial information about project for City to review and approve.
3) Obtain State Historic Society approval to demolish, and demolish the rear Yo of the
building at 14 S. Jackson St.
4) Sell the rear Yo of 14 and 18 S. Jackson St. to the City for $18,000.
5) Obtain approval of site plan and building elevations from City Site Plan Review
Coordinator and Janesville Historic Commission.
6) Complete renovation of 14 and 18 S. Jackson St. with an estimated value of $300,000
by December 31, 2007
7) Guarantee to annually pay to the City a property tax payment ranging from $5,350 in
2008 (payable in 2009) to $5,935 in 2018 (payable in 2019).
C. As long as City's TIF costs have not been repaid:
1) Forward Foundation cannot allow property to become tax exempt.
2) Forward Foundation cannot sell the property without the City's approval and without
the buyer accepting the TIF guarantees.
D. Forward Foundation contingencies to be satisfied or waived by June 30, 2007
1) Receipt of plan approvals and permits.
2) Project financing with acceptable terms.
3) Binding leases for the renovated building.
E. City not obligated to TIF Agreement until all Forward Foundation contingencies are met.
F. Forward Foundation can repay City TIF investment at any time. If this is done, then
restrictions on sale and tax exempt uses in Section IV.C. are removed.
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