2012-891 Resolution 2012 -891
A Resolution Approving a TIF 22 Development Loan Agreement and Promissory Note
With Miniature Precision Components for $103,500
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, has signed a twelve (12) year lease with
Helgesen Development for 325,000 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. Capital investment at the above facility is estimated at $2.3
million over the three year period; and
MPC currently employees over 1,400 persons with 1,000 in Wisconsin; and
WHEREAS, MPC 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 22 loan in the amount of One
Hundred Three Thousand, Five Hundred and 00/100 Dollars ($103,500), 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 22 projected to break -even in Year 17 (2015)
and by its final year (2020) it is projected to have a positive balance of $4.4 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.
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 MPC 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: April 9, 2012 Motion by: Voskuil
Second by: Rashkin
APPROVED: / / Councilmember Aye Nay Pass Absent
✓. ,�� Dongarra -Adams X
Eric J. Le t, City , iT'ager Liebert X
McDonald X
ATTEST: Rashkin X
Steeber X
11,41 i it /jJ.0.41, Voskuil X
Jea - nn Wulf, City Clerk- Treasurer
APPROVED AS TO FORM:
g J a r - J �� JY • ✓ .
Wald Klimcz Cik/ Attorney �_-
Y Y Y
Proposed by Economic Development Director
Prepared by City Attorney - •