2019-1688 File Resolution No. 2019-1688
A resolution approving a TIF Development Agreement with Diamond Ridge Apartments,
LLC for the development of a 115 unit multiple family residential development on
property located at 1401 Woodman Road and 1400 Mayfair Drive and located within
Janesville's Tax Incremental Financing District No. 38
WHEREAS, Sections 66.1105 and 66.1101 of Wisconsin Statutes authorize cities to utilize tax
increment financing to promote industry, multi-family, mixed use, and certain other implement
economic development projects; and
WHEREAS, the Janesville Common Council have authorized the use of Tax Incremental
Districts (TID) for commercial and multiple family development and Tax Incremental Financing
(TIF) development agreements to facilitate the multiple family development projects and overall
economic benefit of the City of Janesville (CoJ) when they adopted Council Policy Statement
No. 61 (Economic Development Policy) in 1994 and further modified as Council Policy
Statement No. 61B (Commercial Economic Development Policy) in 2018; and,
WHEREAS, the Common Council of the CoJ created TID No. 38 to promote the development of
multiple family housing and further stimulate mixed-use development along the CoJ's Milton
Avenue corridor; and
WHEREAS, Diamond Ridge Apartments, LLC (developer) and the CoJ have negotiated a
certain TIF Development Agreement which, in major part, calls for the CoJ to provide a
forgivable loan in the principal amount of Three Million Three Hundred Thousand Dollars
($3,300.000) for the development; and
WHEREAS, the Common Council of the CoJ hereby find the approval of this particular
negotiated TIF Development Agreement and development incentive with Diamond Ridge
Apartments, LLC to be in the best interest and of benefit to the CoJ, its citizens, residents,
taxpayers, and the overall community;
NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Janesville that
the Administration's negotiated TIF Development Agreement with Diamond Ridge Apartments,
LLC and the TIF development incentive described above are both hereby approved and
authorized, according to the terms and conditions set forth in the specific TIF Development
Agreement, but
BE IT FURTHER RESOLVED, that this approval is contingent and conditioned upon the strict
and full satisfaction of each and every of the following conditions precedent:
A. CONDITIONS PRECEDENT TO DEVELOPMENT AGREEMENT APPROVAL.
All of the following must occur before either party's obligations under the proposed
DEVELOPMENT AGREEMENT shall become effective:
1. The CITY and the DEVELOPER/PROMISOR must each approve and execute this
DEVELOPER AGREEMENT.
2. The DEVELOPER/PROMISOR must provide fully executed originals of the
DEVELOPMENT AGREEMENT to the CITY prior to any approval action by the Common
Council.
3. The CITY ADMINISTRATION may execute the Development Agreement only after all
other conditions and contingencies set forth herein each have been fully satisfied.
4. Tax Increment District No. 38 must be: (a) fully and finally created and approved by the
Common Council; and (b) approved by the Joint Review Board; and (c) approved and
authorized by and the Wisconsin Department of Revenue; each pursuant to Wis. Stat. §
66.1105 and as otherwise provided by law.
5. The Tax Increment District must include the Property and Facility within its boundaries.
6. The initial project plan must be approved by the Common Council. The project plan for
the TID must include, but is not limited to, the Development Agreement and promise of annual
new tax increment payments of the Municipal Bond Obligation ("DEBT SERVICE") by the
Developer/Promisor as provided for by the Development Agreement; and promises that the
balance of the entire unpaid DEBT SERVICE (Principal Loan and remaining years' Carrying
Costs) are accelerated, due, and payable in full to the CITY prior to any sale or other transfer of
the Property or title thereto by the Developer/Promisor.
7. The DEVELOPER/PROMISOR must provide prior to approval of this Resolution by the
Council fully executed and binding GUARANTEE AGREEMENTS to the CITY by each of the
two Guarantors guaranteeing full construction of all projected residential buildings and garages.
8. The CITY borrows and actually receives the funding needed for the CITY's $3.3 million
dollar incentive payment and does so with a 20 year municipal bond using outside financing.
9. The DEVELOPER/PROMISOR has substantially commenced construction of the
FACILITY and PROJECT and has expended its own equity in an amount of not less than $3.5
million dollars and provides sufficient proof to the CITY ADMINISTRATION that such equity
expenditure has occurred; and
BE IT FURTHER RESOLVED, that the City Manager, on behalf of the City of Janesville, and
those he authorizes on his behalf is/are hereby authorized to negotiate, draft, modify, amend,
review, enter into, and file all such other documents, papers, and agreements, take whatever
other actions, and make and enter into whatever other changes and amendments 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.
ADOPTED: September 23, 2019 Motion by: Wolfe
Second by: Gruber
APPROVED: / Councilmember Aye Nay Pass Absent
% ConX
Conley ley X
Mark A. reitag, City Manage Farrell X
Gruber X
ATT in/ Marklein X
Williams X
ri i ,� J7119.- Wolfe X
P.vid T. Godek, City Clerk-Treasurer
APPROVED AS
TO FORM:
/
,z
Wald Klimczyk, City Attorney
Proposed by: Economic Development Office
Prepared by: Economic Development Office/City Attorney