2001-155RESOLUTION 2001 - 155
A Resolution Approving Amendment No. 2 to the TIF Development Agreement Between
The City of Janesviile and WILMAR Corp. Granting WILMAR an Option to Purchase a
1.6 Acre Industrial Site in TIF No. 14
WHEREAS, the Common Council has authorized the use of Tax Increment Financing Districts and
TIF Development agreements when the Council adopted amended Council Policy Statement No. 61
(Industrial Development Policy) on the 13th day of June, 1994; and,
WHEREAS, the Common Council of the City of Janesville lawfully created Tax Increment Finance
District (TIF) No. 14, which TIF District was duly reviewed and approved by all necessary boards and
commissions; and,
WHEREAS, the Common Council of the City of Janesville has previously approved a
Development Agreement with WILMAR Corp. for the sale of a 5.0 acre industrial site and the
construction of a 25,000 sf manufacturing facility, thereby increasing the value of said real and
personal property thus adding to the City of Janesville's tax base and otherwise benefiting the City and
the community; and,
WHEREAS, WlLMAR and the CITY have negotiated Amendment No. 2 to the TIF Development
Agreement (attached hereto and incorporated herein by reference), which Amendment grants
WlLMAR an option to purchase the adjacent 1.6 acres of land, sets forth the terms and conditions of
such development, and provides for WILMAR's full repayment of the City's TIF development costs in
a manner and within a time allowed by Wisconsin law; and
WHEREAS, the Plan Commission, at their December 14, 1994 meet'rog, reviewed the sale of land in
TIF No. 14 for industrial purposes and found such sale consistent with City plans but did not comment
on the financial aspects of any transaction; and,
WHEREAS, the Common Council of the City of Janesville finds that the approval of Amendment
No. 2 to the TIF Development Agreement, granting of an option to purchase the 1.6 acre development
site within TIF No. 14 is 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 the attached Amendment No. 2 to the TIF Development Agreement with WlLMAR
Corp. granting an option to purchase a 1.6 acre industrial site in TIF No. 14 in accordance with the
terms of said Amendment No. 2 to the TIF Development Agreement; and,
BE IT FURTHER RESOLVED, that the City Manager, on behalf of the City of Janesville, is hereby
authorized to negotiate, draft, modify, review, and file all such other documents, papers, and
agreements, to take whatever other actions, and to make whatever changes and amendments to the
proposed Amendment No. 2 to the TIF Development Agreement 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 2001 - 155
Page 2
ADOPTED: April 9, 2001
APPROVe:
~'~vt~ ~ Sheiff~, Ci~ M~ag~
A~EST:
Je~ Wuif, CiW Cl~k-Tre~s~
~PRO~D AS TO FO~:
Ci~ A~mey
~oposed by: Ci~ M~agg
~ by: Dk. Of Economc Developm~t
MOTION BY: Williams
SECOND BY: Schneider
COUNCILMEMBER AYE NAY PASS ABSENT
SCHNEIDER X
WILLIAMS X
NOLL X
BRIEN X
MURPHY
O'LEARY X
DEGARMO X
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Amendment No. 2 to
Offer to Purchase and Agreement to Sell Land Located in
Janesville TIF District No. 14 for Development Purposes
By and Between
The City of Janesville (The Seller) and
Leslie D Marzahl and Nancy L. Marzahl (The Buyers) and
Wilmar Corporation (The Substitute Buyer)
WHEREAS, Leslie D. Marzahl and Nancy L. Marzahl entered into a TIF Development
Agreement (hereinafter the "Agreement) dated and signed the 16th day of July, 1996 by Leslie D.
and Nancy L. Marzahl (the Buyers) and signed the 21st day of November, 1996 by the City of
Janesville (the Seller); and
WHEREAS, the parties to approved Amendment Number One to the Agreement transferring the
Buyer's responsibilities under the terms of the Agreement to the Wilmar Corporation, said
Amendment No. One signed the 21st day of November by Wilmar Corporation and signed the
same day by the City of Janesville; and,
WHEREAS, Paragraph V.O. of the Agreement permits the parties thereto to amend the
Agreement in writing signed by the affected parties; and,
WHEREAS, Wilmar Corporation desires to obtain an option to purchase an additional 1.6 acres
of land located immediately east of and adjacent to Lot No. 1 of Certified Survey Map Number
1305982, recorded at the Rock County Register of Deeds office on September 4, 1996 in
Volume 19, Pages 332, 333, and 334, said additional parcel of land having 163.22' of fi'ontage
on Capital Circle;
NOW, THEREFORE, the City of Janesville (the Seller) and Wilmar Corp. (the Buyer) for good
and valuable consideration as set forth in the Agreement, as amended, and for the mutual
promises and benefits set forth below hereby agree as follows:
A. Option Agreement
1. The City of Janesville hereby grants to Wilmar Corporation an Option to Purchase the
following property (hereinafter the "Option Property"):
Beginning at the Southeast comer of Lot One of Certified Survey Map Number
1305982, recorded at the Rock County Register of Deeds office on September 4,
1996 in Volume 19, Pages 332, 333, and 334; thence S.88°45'40"E., along the
North right-of-way line of Capital Cimle 163.22'; thence N.0°07'05"W., 427.32';
year from the date of closing on the purchase of the Option Property. If the Buyer builds more
than an additional 15,000 sf of buildings, then the purchase price of the Option Property shall be
One Dollar ($1.00).
D. Title Insurance Policy
If the Buyer shall exercise its Option to Purchase the Option Property, the City shall, at
City expense, furnish and deliver to the Buyer a policy of title insurance naming the Buyer the
insured in the amount of Thirty-Five Thousand Three Hundred Ninety Thousand Dollars
($35,390.00). The title insurance policy shall be forwarded to the Buyer for examination prior to
the date set for closing on the Option Property, shall be written by a responsible title insurance
company licensed by the State of Wisconsin as selected by the City, and shall insure the City's
title to the option Property to be merchantable and in the condition called for by the Agreement,
as amended. A commitment by such title company agreeing to issue such a title policy upon the
recording of the proper documents as agreed to herein shall be deemed sufficient performance of
this section.
E. Increased Property Tax Payment Guarantee
Section 1V.B.8. of the Agreement sets forth minimum annual property tax payments to be
paid by the Buyer to the City so that the City may recover its cost of industrial site land
acquisition and improvements through the TIF process. For the purposes of this section, the
year in which the Buyer exercises the option to purchase shall be referred to as the "Exercise
Year". If the Buyer exercises its option to Purchase the Option Property, the Buyer shall
continue to make the minimum annual property tax payments as set forth in Section IV.B.8. of
the Agreement for the Exercise Year.
The actual real and personal property tax bill for 2001, payable in 2002 shall be referred
to as the "Base Property Tax". Beginning the year after the Exercise Year and annually
thereafter until 2012, the Buyer shall pay to the City the higher off
a. The actual real and personal property tax bill for the tax year; or
b. The Base Property Tax plus Five Hundred Thirty Dollars ($530.00) for each
1,000 sf of Purchase Price credit claimed by the Buyer under Paragraph C. above.
For example, assume the Base Property Tax for 2001, payable in 2002 is $21,230. The
Buyer exercises the Option to Purchase the Option Property on February 15, 2003 (the Exercise
Year) and constructs a 10,000 sf addition on the property. One year later, the Buyer would
claim 10,000 sfofpurchase price credit to reduce the purchase price by $23,600. For the year
after the Exercise Year (tax year 2004, payable in 2005) and for each of the ten (10) tax years
thereafter, the Buyer would pay to the City the higher of the actual real and personal property
taxes levied for that tax year; or $21,230 plus $5,300 (a total of $26,530), since 10,000 sfof
purchase price credit was claimed.
Agreed to this 10~ day of ~Ot:~ !
,2001
CITY OF JANESVILLE
~-~ Steven E. Sheaffer, C~.ty Manager
J~ ~ Wulf, City Clerk-Treas~
ACKNOWLEDGEMENT
STATE OF WISCONSIN )
ROCK COUNTY ) ss.
Personally came before me this Ib-Vl~day of Itel ,2001,
the above named Steven E. Sheiffer and Jean Ar[n Wulf to me
known to be the persons who executed the foregoing instrument and
acknowledged the same.
Notary Public, Rock County, Wisconsin
My Commission: .,l~J/D