2012-879 Resolution 2012 -879
A Resolution Approving a TIF 22 Development Loan Agreement and Promissory Note With
Miniature Precision Components for $225,000
WHEREAS, the Common Council of the City of Janesville created Tax Incremental Finance District No.
22 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 industrially zoned properties; retain and increase employment; construct, renovate
and expand industrial facilities; and otherwise provide for the overall economic health, welfare, vitality,
and good of the community; and
WHEREAS, the Project Plan for TIF District 22 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, Miniature Precision Components (MPC) is a thermoplastic manufacturer and Tier 1 supplier
to the auto industry, conducting its principal business at 820 Wisconsin St., City of Walworth, County of
Walworth, State of Wisconsin, currently employing over 1,400 persons with 1,000 in Wisconsin, and has
tentatively signed a ten (10) year lease with Helgesen Development for 225,000 sq. ft. at 2929 Venture
Dr., Janesville ( "Facility'), contingent upon City and state incentives. MPC intends to create 90 new jobs
within three years and would like to begin production by March 31, 2012. Job estimates include 46 new
jobs in Year 1, 27 in Year 2 and 17 in year 3. Manufacturing salaries range from $12.57 - $17.30 /hr.
plus benefits. Capital investment at the above facility is estimated at $2.3 million over the three year
period; and
WHEREAS, MPC and Helgesen jointly and severally promise to upgrade, renovate, and operate the
Facility, create and maintain new employment at MPC's Janesville Facility, and otherwise benefit and
add value to the City, TIF District, and the City's tax base; and
WHEREAS, MPC has requested forgivable TIF 22 loan in the amount of Two Hundred Twenty Five
Thousand and 00/100 Dollars ($225,000), upon the terms, in the manner, and otherwise in consideration
of a standard Janesville TIF economic development forgivable loan, such that the City's offer would be
structured so that the loan would go to Helgesen Development which would guarantee the jobs. MPC
would then reimburse Helgesen Development for any loan payments due because of missed
employment objectives. A lien would be placed on the building as potential collateral. The remaining
terms and provisions of the loan would be the City's standard loan provisions, which are reiterated and
incorporated herein by reference as if fully set forth verbatim; and
WHEREAS, TIF 22 is projected to break -even in Year 17 (2015) and by its final year (2023) it is expected
to have a positive balance of $3.8 million; and
WHEREAS, there are currently sufficient positive fund balances in the TIF District 22 improvement and
overall project accounts, and these expenditures fall within the allowable time and scope for said
Development Agreement and expenditures; and
WHEREAS, the Common Council hereby find that the City Administration has negotiated the TIF
Development Loan Agreement and Promissory Note with MPC 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.
t �-
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 City's above described Development Loan Agreement and Promissory Note once finalized
are also reiterated and incorporated herein by reference as if fully set forth verbatim; and
3. The MPC TIF 22 Development Loan Agreement and Promissory Note, and all expenditures,
terms, conditions, promises, obligations, 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,
as from time to time amended by the City Manager; and
4. The City Manager and /or his designee(s) is /are hereby authorized to execute, enter into, and
effectuate the TIF 22 Development Loan Agreement and Promissory Note with MPC on behalf of the City
of Janesville; and
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, and /or
above all the intent and /or purposes of this Resolution.
ADOPTED: January 9, 2012 Motion by: McDonald
Second by: Liebert
APPROV 1 : Councilmember Aye Nay Pass Absent
- /���" Dongarra -Adams X
Eric J. Levi �/y Manager Liebert X
McDonald X
ATTEST Rashkin X
Steeber X
.2 L1 Voskuil X
Jean n Wulf, City Ierk- Treasurer
APPROVED AS TO FORM:
It Attorney �"'
Wald Klimcz - '
Y Y y
J _
Proposed by Economic Development Director r r " = -
Pr by City Attorney _ -
-v „