2012-890 Resolution 2012 -890
A Resolution Approving a TIF 26 Development Loan Agreement and Promissory Note
With Fab - Masters, Inc. for $28,030
WHEREAS, the Common Council of the City of Janesville created Tax Incremental Finance
District No. 26 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 26 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 within the designated
TIF geographic area and as amended in 2009 to include projects within '/2 mile of its borders;
and
WHEREAS, Fab - Masters, Inc. is a metal fabricator and welded products manufacturer
conducting its principal business at 1111 W. Racine St., Janesville, Wisconsin, County of Rock,
State of Wisconsin, has tentatively signed a five (5) year lease with option to purchase at 901
Joliet St., Janesville, WI ( "Facility'), contingent upon City and state incentives. Fab - Masters
intends to create 12 new jobs within three years and is planning to relocate occurring by March
31 with production to resume soon thereafter. Job estimates include 5 new jobs in Year 1, 3 in
Year 2 and 4 in year 3. Manufacturing salaries range from $13.75 to $14.00 /hr. plus benefits.
Capital investment at the above facility is estimated at $425,000 over the three year period; and
Fab - Masters currently employees over 16 persons with all in Wisconsin; and
WHEREAS, Fab - Masters promises to upgrade and renovate operate the Facility, create and
maintain new employment at its Janesville Facility, and otherwise benefit and add value to the
City, TIF District, and the City's tax base, and has requested forgivable TIF 26 loan in the
amount of Twenty -Eight Thousand, Thirty dollars and00 /100 ($28,030), upon the terms, in the
manner, and otherwise in consideration of a standard Janesville TIF economic development
forgivable loan, the terms and provisions of which are reiterated and incorporated herein by
reference as if fully set forth verbatim, with TIF 26 projected to break -even in Year 19 (2021)
and by its final year (2025) it is expected to have a positive balance of $683,440; and
WHEREAS, there are currently sufficient positive fund balances in the TIF District 26
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 will negotiate the TIF
Development Loan Agreement and Promissory Note with Fab - Masters 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.
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 standard Fab - Masters 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 Fab - Masters TIF 26 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 26 Development Loan Agreement and Promissory Note with Fab - Masters
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: February 27, 2012 Motion by: Rashkin
Second by: McDonald
APPROVED Councilmember Aye Nay Pass Absent
Dongarra -Adams X
_ Liebert X
Eric !evitt, f it' anager McDonald X
Rashkin X
ATTEST: Steeber X
/ /A Voskuil X
J - . n Ann Wulf, City Clerk- Treasure
APPROVED AS TO FORM: /
Wald Klimczy , City Attorney
Proposed by: Economic Development Director
Prepared by City Attorney
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