2010-753 Resolution No. 2010 -753
A Resolution Approving a TIF 32 Development & Loan Agreement and Promissory Note
For $258,148 With
Wright Road Property Group LLC and 3700 Racine Street LLC
(Collectively, though more than one, the " Promissory")
Home Health United, Inc._Project
WHEREAS, the Common Council of the City of Janesville, on the 22 day of September, 2008,
created Tax Incremental Finance District No. 32 for 21 years and adopted the initial Project Plan
in accord with Wisconsin's Tax Increment Financing Laws, Wis. Stats. Sec. 66.1105 and other
applicable statutes, as from time to time amended or renumbered in order to stimulate the
development and redevelopment of certain mixed use commercial and industrially zoned
properties; retain and increase employment at that location; construct, renovate and expand
commercial and /or industrial facilities; develop the public infrastructure serving those properties
and TIF 32, and otherwise provide for and facilitate the overall economic health, welfare, vitality,
and good of the community; and
WHEREAS, the Project Plan for TIF District 32 includes industrial and manufacturing
development and redevelopment, improvements, facility construction, expansion, and
renovation, job retention and creation, and related financing, incentives, payments, loans, and
actions that effectuate and /or facilitate these public purposes and goals; and
WHEREAS, Wright Road Property Group LLC ( "Wright ") and 3700 Racine Street LLC ( "3700 ")
are two separate Wisconsin limited liability companies affiliated with Sara Investment Real
Estate LLC ( "Sara ") which is a local major developer that desires to, promises to, and shall,
through Wright, lease to Home Health United, Inc. ( "HHU "), its prospective tenant, a new
commercial structure in TIF 32 that Wright shall cause to be constructed. HHU will transfer its
existing operations to such new commercial structure in TIF 32 and shall thus maintain not Tess
than twenty (20) existing jobs in the City of Janesville; and
WHEREAS, Wright and 3700 shall jointly and severally promise to and shall repay to the City of
Janesville ( "CITY ") the $258,148 in principal and 6% annual interest on the unpaid balance in
the annual amounts, and otherwise perform in accord with, the a certain TIF Development &
Loan Agreement and Promissory Note, the terms, conditions, promises, and provisions of which
are reiterated and incorporated herein by reference as if fully set forth verbatim; and
WHEREAS, there are currently sufficient positive fund balances in the TIF District 32
improvement and overall project accounts, and these expenditures fall within the allowable time
and scope for said Development and Loan Agreement and Promissory Note expenditures with
additional general fund financing for economic development, loans and purposes; and
WHEREAS, no Plan Commission review or recommendation was necessary for this particular
Development Agreement since it does not involve the purchase or conveyance of real property
by the CITY; and
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WHEREAS, the Common Council hereby find that the City Administration has negotiated the
TIF Development & Loan Agreement and Promissory Notes with Wright and 3700 upon terms,
conditions, promises, obligations, provisions, and purposes, consistent with the best interest of
and benefit to the City, all applicable laws, and Common Council industrial and economic
development policies, goals, objectives, and directives; and
WHEREAS, the district is zoned B3 mixed use commercial and light industrial and
manufacturing; and
WHEREAS, Sections 66.1105 and 66.1101 of the Wisconsin Statutes authorize cities to utilize
tax increment financing to promote industry and implement economic development projects; and
WHEREAS, Sections 62.11(5), 62.32, 66.0101, and other provisions of the Wisconsin Statutes
authorize various land transactions, business, and activities of the Common Council for the
public good; 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 13 day of
June, 1994; and
NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Janesville that:
1. Each and every of the above recitals are reiterated and incorporated herein by reference
as if fully set forth verbatim; and
2. The above described Wright and 3700 TIF 32 Development & Loan Agreement and
Promissory Notes are also reiterated and incorporated herein by reference as if fully set forth
verbatim; and
3. The Wright and 3700 TIF 32 Development & Loan Agreement and Promissory Notes, and
all expenditures, terms, conditions, promises, obligations, performance, conditions, and
provisions set forth therein are hereby found to be in the best interest of, and for the benefit of,
the City, and, therefore, are hereby both authorized and approved; and
4. The City Manager and /or his designee(s) is /are hereby authorized to execute, enter into,
and effectuate the Wright and 3700 TIF 32 Development & Loan Agreement and Promissory
Note with Wright and 3700 on behalf of the City of Janesville; and
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BE IT FURTHER RESOLVED, that the City Manager and /or his designee(s), on behalf of the
City of Janesville, is /are hereby authorized to administratively negotiate, draft, execute, review,
enter in, modify, amend, record, file, and otherwise effectuate the above agreements and
promissory note, and /or to make and enter into any and all other agreements, contracts,
documents, papers, and forms, and /or to take whatever other actions that the City Manager
and /or his designee(s) may, from time to time and at any time, determine necessary and /or
desirable to effectuate the above transactions, agreements, above intent, and /or purposes of
this Resolution.
ADOPTED: November 22, 2010 Motion by: Steeber
Second by: Truman
APPROV s : Councilmember Aye Nay Pass Absent
/ Brunner X
il
il '( McDonald X
Eri J. ! t , City Manager Perrotto X
Rashkin X
ATTEST: Steeber X
i , /
Truman X
Voskuil X
Je -n Ann Wulf, _ City Clerk -Trea : er
APPROVED AS TO FORM:
Wald Klimczykircity Attorney _
Proposed by Economic Development Director Vic ;' = r
Grassman - - =
Prepared by: City Attorney Wald Klimczyk J _
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