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2022-2045 RESOLUTION NO. 2022-2045 RESOLUTION CREATING TAX INCREMENTAL DISTRICT NO. 40, APPROVING ITS PROJECT PLAN AND ESTABLISHING ITS BOUNDARIES CITY OF JANESVILLE, WISCONSIN WHEREAS, the City of Janesville (the "City") has determined that use of Tax Incremental Financing is required to promote development and redevelopment within the City; and WHEREAS, Tax Incremental District No. 40 (the "District") is proposed to be created by the City as a mixed-use district in accordance with the provisions of Wisconsin Statutes Section 66.1105 (the "Tax Increment Law"); and WHEREAS, a Project Plan for the District has been prepared that includes: a. A statement listing of the kind, number, and location of all proposed public works or improvements within the District, or to the extent provided in Wisconsin Statutes Sections 66.1105(2)(f)1.k. and 66.1105(2)(f)1.n., outside of the District; b. An economic feasibility study; c. A detailed list of estimated project costs; d. A description of the methods of financing all estimated project costs and the time when the related costs or monetary obligations are to be incurred; e. A map showing existing uses and conditions of real property in the District; f. A map showing proposed improvements and uses in the District; g. Proposed changes of zoning ordinances, master plan, map, building codes, and City ordinances; h. A list of estimated non-project costs; i. A statement of the proposed plan for relocation of any persons to be displaced; j. A statement indicating how the District promotes the orderly development of the City; k. An opinion of the City Attorney or of an attorney retained by the City advising that the plan is complete and complies with Wisconsin Statutes Section 66.1105(4)(f).; and WHEREAS, prior to its publication, a copy of the notice of public hearing was sent to the chief executive officers of Rock County, the Janesville School District, and the Blackhawk Technical College District, and any other entities having the power to levy taxes on property located within the District, in accordance with the procedures specified in the Tax Increment Law; and WHEREAS, in accordance with the procedures specified in the Tax Increment Law, the Plan Commission, on June 6, 2022, held a public hearing concerning the project plan and boundaries and proposed creation of the District, providing interested parties a reasonable opportunity to express their views thereon; and WHEREAS, after said public hearing, the Plan Commission designated the boundaries of the District, adopted the Project Plan, and recommended to the Common Council that it create such District and approve the Project Plan. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville that: 1. The boundaries of the District that shall be named "Tax Incremental District No. 40, City of Janesville", are hereby established as specified in Exhibit A of this Resolution. 2. The District is created effective as of January 1, 2022. City of Janesville Wisconsin TID No.40 Council Resolution 3. The Common Council finds and declares that: (a) Not less than 50% by area of the real property within the District is suitable for mixed-use development as defined by Wisconsin Statutes Section 66.1105(2)(cm). (b) Based upon the finding stated in 3.a. above, the District is declared to be a mixed-use district based on the identification and classification of the property included within the District. (c) The improvement of such area is likely to enhance significantly the value of substantially all of the other real property in the District. (d) The equalized value of the taxable property in the District plus the value increment of all other existing tax incremental districts within the City, does not exceed 12% of the total equalized value of taxable property within the City. (e) That for those parcels to be included within the District that were annexed by the City within the three-year period preceding adoption of this Resolution, the City pledges to pay the Town of Rock an amount equal to the property taxes the town last levied on the territory for each of the next five years. (f) The City estimates that less than 35% of the territory within the District will be devoted to retail business at the end of the District's maximum expenditure period, pursuant to Wisconsin Statutes Section 66.1105(5)(b). (g) The project costs relate directly to promoting mixed-use development in the District consistent with the purpose for which the District is created. (g) Lands proposed for newly platted residential development comprise no more than 35% of the real property area within the District. (h) Costs related to newly platted residential development may be incurred based on the proposed development having a density of at least three (3) units per acre as defined in Wisconsin Statutes Section 66.1105(2)(f)3.a. 4. The Project Plan for "Tax Incremental District No. 40, City of Janesville" (see Exhibit B) is approved, and the City further finds the Plan is feasible and in conformity with the master plan of the City. BE IT FURTHER RESOLVED THAT the City Clerk is hereby authorized and directed to apply to the Wisconsin Department of Revenue, in such form as may be prescribed, for a "Determination of Tax Incremental Base", as of January 1, 2022, pursuant to the provisions of Wisconsin Statutes Section 66.1105(5)(b). BE IT FURTHER RESOLVED THAT pursuant to Section 66.1105(5)(f) of the Wisconsin Statutes that the City Assessor is hereby authorized and directed to identify upon the assessment roll returned and examined under Wisconsin Statutes Section 70.45, those parcels of property which are within the District, specifying thereon the name of the said District, and the City Clerk is hereby authorized and directed to make similar notations on the tax roll made under Section 70.65 of the Wisconsin Statutes. City of Janesville Wisconsin TID No.40 Council Resolution ADOPTED: September 26, 2022 Motion by: Marklein Second by: Marshick APPROVED: a ..... ...„ Councilmember Aye Nay Pass Absent L ,,, Benson X /�", Cit Burdick X Mark A. Fr itag, City Manager Jackson X ATTEST: Marklein X AM 4(26 Marshick X Miller X Lorena Rae Stottler, City Clerk-Treasurer Williams X APPROVED AS TO FORM: , / Wald Klimczyk, City Attorney Proposed by: Economic Development Office Prepared by: Economic Development Office EXHIBIT A - LEGAL BOUNDARY DESCRIPTION OR MAP OF TAX INCREMENTAL DISTRICT NO. 40 CITY OF JANESVILLE [INCLUDED WITHIN PROJECT PLAN] EXHIBIT B - PROJECT PLAN [DISTRIBUTED SEPARATELY] June 6, 2022 PROJECT PLAN City of Janesville, Wisconsin Tax Incremental District No. 40 Pheasant Field g41111 m.% EHLERS Imo PUBLIC FINANCE ADVISORS Prepared by: Ehlers N21W23350 Ridgeview Parkway West, Suite 100 Waukesha, WI 53188 BUILDING COMMUNITIES. IT'S WHAT WE DO. KEY DATES Organizational Joint Review Board Meeting Held: May 11, 2022 Public Hearing Held: June 6, 2022 Approval by Plan Commission: June 6, 2022 Adoption by Common Council: September 26, 2022 Approval by the Joint Review Board: October 3, 2022 TABLE OF CONTENTS Executive Summary 3 Preliminary Map of Proposed District Boundary 6 Map Showing Existing Uses and Conditions 10 Preliminary Parcel List and Analysis 12 Equalized Value Test 14 Statement Listing the Kind, Number and Location of All Proposed Public Works or Improvements Within the District 15 Map Showing Proposed Improvements and Uses 22 Detailed List of Estimated Project Costs 24 Economic Feasibility Study, Description of the Methods of Financing Estimated Project Costs and the Time When Related Costs or Monetary Obligations are to be Incurred 25 Annexed Property 30 Estimate of Property to Be Devoted to Retail Business 30 Proposed Changes of Zoning Ordinances, Master Plan, Map, Building Codes and City Ordinances 30 Statement of the Proposed Method for the Relocation of any Persons to be Displaced 31 How Creation of the Tax Incremental District Promotes the Orderly Development of the City 31 List of Estimated Non-Project Costs 32 Legal Opinion Advising Whether the Plan is Complete and Complies with Wis. Stat § 66.1105(4)(f) 33 Calculation of the Share of Projected Tax Increments Estimated to be Paid by the Owners of Property in the Overlying Taxing Jurisdictions 36 Tax Incremental District No. 40 Project Plan City of Janesville Prepared by Ehlers Page 12 SECTION 1: Executive Summary DESCRIPTION OF DISTRICT Tax Incremental District ("TID") No. 40 ("District") is a proposed Mixed-Use District comprising approximately 171 acres located generally north of State Highway 11 and east of Center Street to include two parcels totaling 145-acres to be annexed from the Town of Rock. The District will be created to pay the costs of development incentives needed to promote industrial and multi-family residential development ("Project") to be developed by Three Leaf Partners ("Developer"). The first phase of development will be construction of a hydroponic industrial greenhouse operation for Local Roots, an Indiana-based agricultural company. In addition to the incremental property value that will be created, the City expects the Project to provide employment opportunities, increased income and sales tax collection, increased retail, commercial and manufacturing activity, provision of workforce housing units and other benefits to the local economy resulting from the purchase of goods and services related to construction and operation of the Project. AUTHORITY The City is creating the District under the provisions of Wis. Stat. § 66.1105. ESTIMATED TOTAL PROJECT COST EXPENDITURES The City anticipates making total expenditures of approximately $31.9 million ("Project Costs") to undertake the projects listed in this Project Plan ("Plan"). Project Costs include an estimated $31.64 million in development incentives and $259 thousand for administrative expenses and other costs. INCREMENTAL VALUATION The City projects that new land and improvements value of approximately $176 million will result from the Project. Creation of this additional value will be made possible by the Project Costs made within the District. A table detailing assumptions as to the development timing and associated values is included in the Economic Feasibility Study located within this Plan. EXPECTED TERMINATION OF DISTRICT Based on the Economic Feasibility Study located within Section 9 of this Plan, the City anticipates that the District will generate sufficient tax increment to pay all Project Costs within ten of its allowable 20 years. Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 13 SUMMARY OF FINDINGS As required by Wis. Stat. § 66.1105, and as documented in this Plan and the exhibits contained and referenced herein, the following findings are made: 1. That "but for" the creation of this District, the development projected to occur as detailed in this Plan: 1) would not occur; or 2) would not occur in the manner, at the values, or within the timeframe desired by the City. The City will require Developer to pay the cost of and install all public infrastructure to serve the District. Developer may also incur other costs to develop property within the District that cannot be fully recovered through sale or rent while also generating market-appropriate investor returns. As the Project will be completed in phases, the City expects to receive one or more requests for tax incremental financing ("TIF") assistance. As requests are submitted, the City will evaluate each to confirm that the public investment is necessary, and that "but for" that investment, the related development will not occur. The development incentives included in this Plan are for purposes of confirming economic feasibility only and do not reflect a commitment by the City to provide incentives in any specific amount. Incentive commitments will be set forth in development agreements for individual phases and subject to approval by the Common Council. To the extent City provides incentives, it expects to do so on a "pay as you go basis." 2. The economic benefits of the District, as measured by increased employment, business and personal income, and property value, are sufficient to compensate for the cost of the improvements. In making this determination, the City has considered that in addition to the incremental property value that will be created, the City expects the Project to provide employment opportunities, increased income and sales tax collection, increased retail, commercial and manufacturing activity, provision of workforce housing units and other benefits to the local economy resulting from the purchase of goods and services related to construction and operation of the Project. 3. The benefits of the proposal outweigh the anticipated tax increments to be paid by the owners of property in the overlying taxing jurisdictions. As required by Wis. Stat. § 66.1105(4)(i)4., a calculation of the share of projected tax increments estimated to be paid by the owners of property in the overlying taxing jurisdictions has been prepared and can be found in this Plan. However, because the Project would not occur without the use of tax incremental financing, these tax increments would not be paid but for creation of the District. Accordingly, the City finds that the benefits Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 14 expected to be realized as set forth in this Plan outweigh the value of the tax increments to be invested in the Project. 4. Not less than 50% by area of the real property within the District is suitable for mixed use development as defined by Wis. Stat. § 66.1105(2)(cm). Lands proposed for newly-platted residential development comprise no more than 35% of the real property area within the District. Costs related to newly- platted residential development may be incurred based on the proposed development having a density of at least three (3) units per acre as defined in Wis. Stat. § 66.1105(2)(f)3.a. 5. Based on the foregoing finding, the District is designated as a mixed-use district. 6. The Project Costs relate directly to promoting mixed use development in the District, consistent with the purpose for which the District is created. 7. Improvements to be made in the District are likely to significantly enhance the value of substantially all of the other real property in the District. 8. The equalized value of taxable property in the District, plus the incremental value of all existing tax incremental districts within the City does not exceed 12% of the total equalized value of taxable property within the City. 9. The City estimates that less than 35% of the territory within the District will be devoted to retail business at the end of the District's maximum expenditure period, pursuant to Wis. Stat. § 66.1105(5)(b). 10. That for those parcels to be included within the District that were annexed by the City within the three-year period preceding adoption of this Resolution, the City pledges to pay the Town of Rock an amount equal to the property taxes the town last levied on the territory for each of the next five years. 11. The Plan for the District is feasible and is in conformity with the Master Plan of the City. Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 15 SECTION 2: Preliminary Maps of Proposed District Boundary Maps found on following pages identify the parcel and municipal boundaries as of the District's creation date, and as of January 1, 2022. Subsequent to January 1, 2022, two parcels were annexed from the Town of Rock to the City, and a parcel within the City was subdivided. To the extent District boundaries include wetlands identified on a map prepared under Wis. Stat. § 23.32, the wetlands are excluded from the District. Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 16 Proposed TID 40 (Parcel Configuration September 26, 2022) - £ n;,#�00 ,\ Fillmore st A 1 to `i, r . Ao _ , L ro. ...-":::.-1 .1,7 ---WSurbank i"` n /) f , Ave ti•- �/ 01 0412400050 999 W Burbank Ave El _ �- " � :-- 02 034 019002 2821 S US HWY 51 'Fr- '` II. , 03 034 01900201 2821 S US HWY 51 jf ,' 04 0412400400 825 W Burbank Ave ,, r4 :z,:r.;,.e-,. ,"5. 1s,, ,1:: / /11,1 ,:, .,, tall t iit,... Crtle. 1 f" Y?..R',� I Covey Ur a W 41 X 3 i1 _,,,,-.(00/,. ../ rf, 'r 1 W Venture Dr i.... .,...A, "00/ 1 '' Ill � 5° Fr" /41r4 O i— i / / '$y rye y t '---- : / -..jr' 1#44 I .4°, 4'Jr ' ' I,/ t,F r , i - - / ../ /4> / i_,..i. ,. ., ,,, ,... ,. , , _ : _ _, / / / . , . .. ..„ „...,,,_ r , - , .. , --- ! 03 .a .. rY•1.Ia\�+aYr\aY�aYraar Yara aarYsraaraara.raara.ra.raRssarttraalYar ,.�..r - 1 "... r.. sTH 11 / m_ _ CITY OF JANESVILLE TID 40 Boundary (� I TID 40 Parcels $1 e 7 camas«d 747,6 Peace 1 inch=500 feet ECONOMIC DEVELOPMENT rr:.Cumxea.xe::aaau pmvia.a ex.e.nry or lan.:wl.m. o�a,.iooy pomo;a omv.xn.Cry m.:\o.Yssram or¢„aram..h. ± or rsanmry oI.m:ma.ID.recfpi®.o�.m:mu a:;um+:my as u�.:as.m.anv pury oee. Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 17 Proposed TID 40 (Parcel Configuration on January 1 , 2022) • ''''' St w Burban k *--. AL.- , / ''.,,' 1 Ave t r,--0 W, , ; A , -6 01 \ 1 t 0412400050 999 VV Burbank Ave *02 034 019002 2821 S US HVVY 51 --: ,*03 034 01900201 2821 S US HVVY 51 / 04 0412400400 825 VV Burbank Ave /7>/:: ,`' -"." 'Parcels located in Town of Rock on January 1 annexed to the City , ' ......" / f ''''' ".' ' ."'" .or" -.-... .' . c ' ."..-.7--, .0- • : " Area that was part of = . / ,/' .-/(/ ' 1 '"' Parcel 01(0412400050)on -,it,--- ..1 ' 1 ,, .0. January 1,2022 that was / . ' b q y p y , '',,, , .. su se uentl s lit b CSIVI, I / . . .... . . Covey Dr - /1 I ...... .,....i........1 7t,,„.-:-',i.7.,ati.....mornt e. 1.5 • 7);1''r 4 , 1 .• _ ,,,,, ....... ,,, w ienture Dr i ,j, , .„. .4,41. ..1 i •jr ff dool . . 1 I :A'Ori." '• ! 4,*, ''''i'relViZo'beZ . 7' 'FINTi .... . .......0 , _, aii„, _ . X 0 ,.— t` / .4041"i , 40- Allirlirjr" 3 1 k , ruroNiefloiaN 4i-ms I t . N 6,3rov. A :„..0 jr, CITY OF JANESVILLE ii,TID 40 Boundary TID 40 Parcels ' We.teofecti44e.F'4.44 Peace 1 inch=500 feet ECONOMIC DEVELOPMENT 0 203 Tax Incremental District No. 40 Project Plan City of Janesville Prepared by Ehlers Page I 8 Proposed TID 40 with Half Mile Buffer rt. En rr k Y l _ ensington St l- '"- 3� . k r W Conde St ~-- ._ ,• E W Conde St - '—"E.Conde St w m +. E J T - r Fln„st _ e Y - , Mr *.•- :2 ' 0''' -, ig } .. _-� .c _ .- tl 7 'Sri f — �7 Kellogg Ave ‘ v 11ltit 4c .(*J. bate,tt - 4 x .„' t ��� ,.-. �, <1 - Roosevelt Ave n e a i `. E - `m S 3 v -i r ; I. a __ 4 T f a - d Edison Ave ` i •mot o-! ,,,,1 v+ u , N'1 t! t I E i I a '°:�1a. 11 u � � N W Burbank Ave 4� St to' t t ; r-5 O_ abutus St .... -Y aL � Ulm ba dt Are 1 L} �I ° 0 4, _ S1 Evergreen Dr i • - m 1 �" a 04 " ;n 2 Muir St 1 �_ !9Mn,DADr 01 s 1 1 e.IA p a A. I airie Knoll Dr _ Cove Dr 1. ....»....MN1 ��..{+neiv.au� i' Ts" il ! ( 1 i S 1 i --"1.' W Venture Dr°'I . '.. al I r m _ JCL. 1' it 1 - . 'teuture Ct !' o -,t t 02 4, I I' ._ ! }y t .. 03tg fifr/5M'i t r,,� ;Avalon.Rdt�.j.�..�..., r-----.-r._..".i V TR 11 t 7 -- ' r- i o r o 1 STH 11 , Stear man St ~ + f} t i L i' 1 '• .� ':.. __- "rr.�...Y w r.�r, oe 1. \ _Innov it ion Di -- - • i ce 4I ! „� . t . w,ilays eat ` �-�-� m e_ - - _ �� t 11 < ti $ t iI (_,_J Half Mile Buffer-0ty IO�TID4UPcuce1. :^ CITY OF JANESVILLE L_1 Half Mile Buffer-County 0 TID 40 Boundaryt incn=1,100 feet 7+'koeeaat�aa�`���laee r,N ECONOMIC DEVELOPMENT DIscumiL nu eau is provW.d by the Orr of Janette.f or ido...uuul po.yo.e,only.The Cue does net nun=or guarantee the accuracy or ranaNN>.10...TA...dP%%t W tbi.den u%m.%.o>.),Sits.s.for..>ymp rt. Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 19 SECTION 3: Map Showing Existing Uses and Conditions Map Found on Following Page. Tax Incremental District No.40 Project Plan City ofianesville Prepared by Ehlers Page 110 i Existing Uses and Condtions Map "` 4 , r, s,, x - e .. a 4 e y _, g I. Z `d ev w'. 3 d .#'S a ✓. ;:. 2 7.1:7„,,,:.;f:::::.4..): _______,_. ti. tia2.2 ' ' 7 Tr- . 1 l ' - j * 1 ' " -- = -- te'Hwy 1 eta 1 � 1. I Existing Uses ' l Agriculture o 25o 50o ft AR E'E V E l E R M E N T � l conservancyA REDURC ES i •TID40 BoundaryRevised D.Sarver,Retie eWp mt Reso v<s c 5Deanne vs-Redevelopment P.esoarces la]mg\Cline¢\C.S\Wldeneelne\nDeo Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 111 SECTION 4: Preliminary Parcel List and Analysis The District will include the parcels identified in the table included on this page. A total of 162.51 of the 170.72 acres to be included in the District are suitable for either newly-platted residential development or industrial development. Land identified for newly-platted residential development makes up 10.30% of the District's area and will be developed with an average density of at least three units per acre. The 8.21 acres that are not suitable for mixed-use development are a City owned conservancy area and drainage way. Parcel Data Suitable Acres Annexed Parcel Owner Acres Newly in Past 3 Number Platted Industrial Years Residential 412400050 MAC FARLANE (See Note 1) HOLDINGS LLC 17.58 17.58 34019002 MAC FARLANE 143.58 143.58 Yes (See Note 2) PHEASANT FARM INC 3401900201 MAC FARLANE (See Note 2) PHEASANTS INC 1.35 1.35 Yes 412400400 CITY OF JANESVILLE 8.21 Total 170.72 17.58 144.93 Percentage of TID Area Suitable for Mixed Use Development 95.19% Newly Platted Residential 10.30% Notes (1) On January 1, 2022, this parcel totaled 29.50 acres. The acreage shown reflects only the part of the parcel that will be included in the District and is approximate based on GIS measurement. A Certified Survey Map creating the parcel to be included in the District is expected to be approved on July 11, 2022. (2) Parcels 34019002 and 3401900201 were in the Town of Rock as of January 1, 2022 and were annexed to the City on July 11, 2022. Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 112 Calculation of Estimated Base Value Assessed Values 412400050 34019002 3401900201 412400400 Total Land 3,992 85,600 400 0 89,992 Improvements 0 574,700 0 0 574,700 Personal Prop. 0 0 0 0 0 Total 3,992 660,300 400 0 664,692 Equalized Values 412400050 34019002 3401900201 412400400 Total Land 4,692 93,800 438 0 98,931 Improvements 0 629,754 0 0 629,754 Personal Prop. 0 0 0 0 0 Total 4,692 723,554 438 0 728,685 Valuations listed reflect January 1, 2021 assessed values converted to equalized value using the January 1, 2021 aggregate ratios published by the Wisconsin Department of Revenue for the City (Parcel 412400050) and the Town of Rock (Parcels 34019002 and 3401900201). Value shown for Parcel 412400050 reflects 60% of the January 1, 2021 value based on the approximate acreage to be included in the District. Actual District base value will be certified using January 1, 2022 valuations which are not yet available. Any increases in valuation occurring after January 1, 2022 will generate incremental value. Tax Incremental District No. 40 Project Plan City of Janesville Prepared by Ehlers Page 113 SECTION 5: Equalized Value Test The following calculations demonstrate that the City expects to be in compliance with Wis. Stat. § 66.1105(4)(gm)4.c., which requires that the equalized value of the taxable property in the proposed District, plus the value increment of all existing tax incremental districts, does not exceed 12% of the total equalized value of taxable property within the City. Calculation of City Equalized Value Limit City TID IN Equalized Value (Jan. 1, 2021) $ 6,069,240,100 TID Valuation Limit @ 12% of Above Value $ 728,308,812 Calculation of Value Subject to Limit Estimated Base Value of New District $ 728,685 Incremental Value of Existing Districts (Jan. 1, 2021) $ 371,332,800 Total Value Subject to 12% Valuation Limit $ 372,061,485 The equalized value of the increment of existing tax incremental districts within the City, plus the estimated base value of the District, totals $372,061,485, which is 6.13% of the City's total equalized value. This value is less than the maximum of $728,308,812 (12%) in equalized value that is permitted for the City. Following creation of the District its base value is no longer counted towards the 12% limit, however, any incremental increase in value will be included in the calculation for creation of subsequent districts, or where territory is being added to an existing district. Tax Incremental District No. 40 Project Plan City of Janesville Prepared by Ehlers Page 114 SECTION 6: Statement Listing the Kind, Number and Location of All Proposed Public Works or Improvements Within the District Project Costs are any expenditure made, estimated to be made, or monetary obligations incurred or estimated to be incurred as outlined in this Plan. Project Costs will be diminished by any income, special assessments, or other revenues, including user fees or charges, other than tax increments, received or reasonably expected to be received in connection with the implementation of the Plan. If Project Costs incurred benefit territory outside the District, a proportionate share of the cost is not a Project Cost. Costs identified in this Plan are preliminary estimates made prior to design considerations and are subject to change after planning, design and construction is completed. With all Project Costs, the costs of engineering, design, survey, inspection, materials, construction, restoring property to its original condition, apparatus necessary for public works, legal and other consultant fees, testing, environmental studies, permits, updating City ordinances and plans, judgments or claims for damages and other expenses are included as Project Costs. The following is a list of public works and other tax incremental financing eligible Project Costs that the City expects to make, or may need to make, in conjunction with the implementation of the District's Plan. The map found in Section 7 of this Plan along with the Detailed List of Project Costs found in Section 8 provide additional information as to the kind, number, and location of potential Project Costs. Property, Right-of-Way, and Easement Acquisition Property Acquisition for Development To promote and facilitate development the City may acquire property within the District. The cost of property acquired, and any costs associated with the transaction, are eligible Project Costs. Following acquisition, other Project Costs within the categories detailed in this Section may be incurred to make the property suitable for development. Any revenue received by the City from the sale of property acquired pursuant to the execution of this Plan will be used to reduce the total project costs of the District. If total Project Costs incurred by the City to acquire property and make it suitable for development exceed the revenues or other consideration received from the sale or lease of that property, the net amount shall be considered "real property assembly costs" as Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 115 defined in Wis. Stat. § 66.1105(2)(f)1.c., and subject to recovery as an eligible Project Cost. Property Acquisition for Conservancy To promote the objectives of this Plan, the City may acquire property within the District that it will designate for conservancy. These conservancy objectives include preserving historic resources or sensitive natural features; protection of scenic and historic views; maintaining habitat for wildlife; maintaining adequate open space; reduction of erosion and sedimentation by preserving existing vegetation; and providing adequate areas for management of stormwater. The cost of property acquired for conservancy, and any costs associated with the transaction, are eligible Project Costs. Acquisition of Rights-of-Way The City may need to acquire property to allow for installation of streets, driveways, sidewalks, utilities, stormwater management practices and other public infrastructure. Costs incurred by the City to identify, negotiate, and acquire rights-of-way are eligible Project Costs. Acquisition of Easements The City may need to acquire temporary or permanent easements to allow for installation and maintenance of streets, driveways, sidewalks, utilities, stormwater management practices and other public infrastructure. Costs incurred by the City to identify, negotiate, and acquire easement rights are eligible Project Costs. Relocation Costs If relocation expenses are incurred in conjunction with the acquisition of property, those expenses are eligible Project Costs. These costs may include but are not limited to preparation of a relocation plan; allocations of staff time; legal fees; publication of notices; obtaining appraisals; and payment of relocation benefits as required by Wis. Stat. Chapter 32 and Wis. Admin. Code ADM 92. Site Preparation Activities Environmental Audits and Remediation If it becomes necessary to evaluate any land or improvement within the District, any cost incurred by the City related to environmental audits, testing, and remediation are eligible Project Costs. Tax Incremental District No. 40 Project Plan City of Janesville Prepared by Ehlers Page 116 Demolition To make sites suitable for development, the City may incur costs related to demolition and removal of structures or other land improvements, to include abandonment of wells or other existing utility services. Site Grading Land within the District may require grading to make it suitable for development, to provide access, and to control stormwater runoff. The City may need to remove and dispose of excess material or bring in fill material to provide for proper site elevations. Expenses incurred by the City for site grading are eligible Project Costs. Utilities Sanitary Sewer System Improvements To allow development to occur, the City may need to construct, alter, rebuild, or expand sanitary sewer infrastructure within the District. Eligible Project Costs include, but are not limited to, construction, alteration, rebuilding, or expansion of collection mains; manho►es and cleanouts; service laterals; force mains; interceptor sewers; pumping stations; lift stations; wastewater treatment facilities; and all related appurtenances. To the extent sanitary sewer projects undertaken within the District provide direct benefit to land outside of the District, the City will make an allocation of costs based on such benefit. Those costs corresponding to the benefit allocated to land within the District, and necessitated by the implementation of the Project Plan, are eligible Project Costs. Implementation of the Project Plan may also require that the City construct, alter, rebuild, or expand sanitary sewer infrastructure located outside of the District. That portion of the costs of sanitary sewer system projects undertaken outside the District which are necessitated by the implementation of the Project Plan are eligible Project Costs. Specifically, it is noted that the Project may require the City to make improvements at its Wastewater Treatment Plant to accommodate and treat sewerage discharge from the Greenhouse operation. Whether improvements will be needed, when they may be needed, and the cost are all undetermined. No cost estimate is included in Section 8 or the Plan, but to the extent costs are incurred they will be paid from District funds to the extent funds are available and the improvements are for the benefit of the District and needed to implement the Plan. Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 117 Water System Improvements To allow development to occur, the City may need to construct, alter, rebuild, or expand water system infrastructure within the District. Eligible Project Costs include, but are not limited to, construction, alteration, rebuilding, or expansion of distribution mains; manholes and valves; hydrants; service laterals; pumping stations; wells; water treatment facilities; storage tanks and reservoirs; and all related appurtenances. To the extent water system projects undertaken within the District provide direct benefit to land outside of the District, the City will make an allocation of costs based on such benefit. Those costs corresponding to the benefit allocated to land within the District, and necessitated by the implementation of the Project Plan, are eligible Project Costs. Implementation of the Project Plan may also require that the City construct, alter, rebuild, or expand water system infrastructure located outside of the District. That portion of the costs of water system projects undertaken outside the District which are necessitated by the implementation of the Project Plan are eligible Project Costs. Storm water Management System Improvements Development within the District will cause stormwater runoff. To manage this stormwater runoff, the City may need to construct, alter, rebuild, or expand stormwater management infrastructure within the District. Eligible Project Costs include, but are not limited to, construction, alteration, rebuilding, or expansion of stormwater collection mains; inlets, manholes and valves; service laterals; ditches; culvert pipes; box culverts; bridges; stabilization of stream and riverbanks; and infiltration, filtration, and detention Best Management Practices (BMP's). To the extent stormwater management system projects undertaken within the District provide direct benefit to land outside of the District, the City will make an allocation of costs based on such benefit. Those costs corresponding to the benefit allocated to land within the District, and necessitated by the implementation of the Project Plan, are eligible Project Costs. Implementation of the Project Plan may also require that the City construct, alter, rebuild, or expand stormwater management infrastructure located outside of the District. That portion of the costs of stormwater management system projects undertaken outside the District which are necessitated by the implementation of the Project Plan are eligible Project Costs. Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 118 Electric Service To create sites suitable for development, the City may incur costs to provide, relocate or upgrade electric services. Relocation may require abandonment and removal of existing poles or towers, installation of new poles or towers, or burying of overhead electric lines. Costs incurred by the City to undertake this work are eligible Project Costs. Gas Service To create sites suitable for development, the City may incur costs to provide, relocate or upgrade gas mains and services. Costs incurred by the City to undertake this work are eligible Project Costs. Communications Infrastructure To create sites suitable for development, the City may incur costs to provide, relocate or upgrade infrastructure required for voice and data communications, including, but not limited to telephone lines, cable lines and fiber optic cable. Costs incurred by the City to undertake this work are eligible Project Costs. Streets and Streetscape Street Improvements To allow development to occur, the City may need to construct or reconstruct streets, highways, alleys, access drives and parking areas. Eligible Project Costs include, but are not limited to: excavation; removal or placement of fill; construction of road base; asphalt or concrete paving or repaving; installation of curb and gutter; installation of sidewalks and bicycle lanes; installation of culverts, box culverts and bridges; rail crossings and signals; utility relocation, to include burying overhead utility lines; street lighting; installation of traffic control signage and traffic signals; pavement marking; right-of-way restoration; installation of retaining walls; and installation of fences, berms, and landscaping. Streetscaping and Landscaping To attract development consistent with the objectives of this Plan, the City may install amenities to enhance development sites, rights-of-way, and other public spaces. These amenities include but are not limited to landscaping; lighting of streets, sidewalks, parking areas and public areas; installation of planters, benches, clocks, tree rings, trash receptacles and similar items; and installation of brick or other decorative walks, terraces, and street crossings. These and any other similar amenities installed by the City are eligible Project Costs. Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 119 Community Development Cash Grants (Development Incentives) The City may enter into agreements with property owners, lessees, or developers of land located within the District for sharing costs to encourage the desired kind of improvements and assure tax base is generated sufficient to recover Project Costs. No cash grants will be provided until the City executes a developer agreement with the recipient of the cash grant. Any payments of cash grants made by the City are eligible Project Costs. Miscellaneous Property Tax Payments to Town Property tax payments due to the Town of Rock under Wis. Stat. § 66.1105(4)(gm)1. because of the inclusion of lands annexed after January 1, 2004 within the boundaries of the District are an eligible Project Cost. Projects Outside the Tax Increment District Pursuant to Wis. Stat. § 66.1105(2)(f)1.n, the City may undertake projects within territory located within one-half mile of the boundary of the District provided that: 1) the project area is located within the City's corporate boundaries; and 2) the projects are approved by the Joint Review Board. The cost of projects completed outside the District pursuant to this section are eligible project costs and may include any project cost that would otherwise be eligible if undertaken within the District. • The City may need to make improvements to streets adjacent to or within a half-mile of the District to accommodate traffic resulting from the Project. Whether improvements will be needed, when they may be needed, and the cost are undetermined. No cost estimate is included in Section 8 of this Plan, but to the extent costs are incurred they will be paid from District funds to the extent funds are available and the improvements are for the benefit of the District and needed to implement the Plan. • The City may need to participate directly in facilitating industrial expansion by purchasing, constructing, selling or leasing facilities for industrial development (e.g. business incubator). Additionally, the City may choose to facilitate industrial expansion by supporting the current business incubator (Janesville Innovation Center) through direct payments of operating expenses, including, but not limited to, the management costs of the facility. These expenditures, if necessary, will support the objectives, and implementation, of the Plan by helping to Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 120 establish manufacturing and other industrial operations that may locate to the available industrial space in the District. Professional Service and Organizational Costs The costs of professional services rendered, and other costs incurred, in relation to the creation, administration and termination of the District, and the undertaking of the projects contained within this Plan, are eligible Project Costs. Professional services include but are not limited to: architectural; environmental; planning; engineering; legal; audit; financial; and the costs of informing the public with respect to the creation of the District and the implementation of the Plan. Administrative Costs The City may charge to the District as eligible Project Costs reasonable allocations of administrative costs, including, but not limited to, employee salaries. Costs allocated will bear a direct connection to the time spent by City employees relating to the implementation of the Plan. Financing Costs Interest expense, debt issuance expenses, redemption premiums, and any other fees and costs incurred in conjunction with obtaining financing for projects undertaken under this Plan are eligible Project Costs. Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 121 SECTION 7: Map Showing Proposed Improvements and Uses Map Found on Following Page. Tax Incremental District No.40 Project Plan City ofianesville Prepared by Ehlers Page 122 Proposed Improvements and Uses Project Costs include development incentives which will include reimbursement for the cost of public infrastructure improvements identified on this map that will be funded by Developer.The City will also incur administrative and other professional service expenses in the implementation of the Plan. rol ..-+ sr ru ' _ ,, _ ..-1 V I - i Greenhouses(Phase]) r'— y- -^� i t _ � , Drainageways Ii ` � , — Public Right of Way i (' > x % t% r�:,e mdustri,T Lana f I !t ' - C:_ 1 t — F L+ ;e Single Family f , M ,, '—_ sai _ I_.. 1 F ?Aoki-Family - } \ --;i1.� ____ — �_ �. Please 1 Sanitary Sewer \ Oq� ; Phase 1 Construction L m ls r 4 ,— ,� —` {noes not include Dupont.i)r", t -- ` � t _,e� — 1 1 arcek_ } ;' M d 9 9 L�� s 71D 4o boundary Rcr� _ > F". aaaaa < ,a 1; 25o Soo ft ^z Iv + 1 r ' Lb -+c�6-kMCycbprrrnr Hc;n; n l r f _ I ....,, j I— -1 .: i t I —._._... . arm el.- 1 .. ..J i — + -_.. I Fg ' I I a I r i p I- I i J . '+ 03' h ; 1102 — State'Hwy-11 r .•— Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 123 SECTION 8: Detailed List of Estimated Project Costs The following list identifies the Project Costs that the City currently expects to incur in implementing the District's Plan. All projects identified and related costs reflect the best estimates available as of the date of preparation of this Plan. All costs are preliminary estimates and may increase or decrease. Certain Project Costs listed may become unnecessary, and other Project Costs not currently identified may need to be made. (Section 6 details the general categories of eligible Project Costs). Changes in Project Cost totals or the types of Project Costs to be incurred will not require that this Plan be amended. This Plan is not meant to be a budget nor an appropriation of funds for specific Project Costs, but a framework within which to manage Project Costs. City of Janesville, WI Tax Increment District # 40 Estimated Project List1 Project ID Project Name/Type Est.Cost Est.Timing 1 Development Incentives 1.a. Greenhouses 17,927,697 2024- 2033 1.b. Industrial 11,347,641 2025- 2034 1.c. Workforce Housing 2,364,092 2025-2034 2 Property Tax Payments-Town of Rock 6,128 2023- 2027 3 Janesville Innovation Center 0 2025-2037 4 Administrative Expense 253,250 2022- 2043 Total 31,898,808 Notes: iin addition to the costs included in this table,the City may need to incur certain costs in areas in the City that are outside of,but within 1/2 mile of,the District boundary.These costs include street improvements,and contributions to a business incubator,to include the existing Janesville Innovation Center.A specific cost estimate is not available as the amounts needed,if any,have not been determined.See also Section 6 of the Plan for further explanation of these potential expenditures.(Projects Outside the Tax Increment District). Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 124 SECTION 9: Economic Feasibility Study, Description of the Methods of Financing Estimated Project Costs and the Time When Related Costs or Monetary Obligations are to be Incurred This Section includes a forecast of the valuation increases expected within the District, the associated tax increment collections, a summary of how Project Costs would be financed, and a projected cash flow demonstrating that the District is economically feasible. Key Assumptions The Project Costs the City plans to make are expected to create $176 million in incremental value by January 1, 2026. Estimated valuations and timing for construction of the Project are included in Table 1. Assuming the City's current equalized TID Interim tax rate of $21.89 per thousand of equalized value, and no economic appreciation or depreciation, the Project would generate approximately $72 million in incremental tax revenue over the 20-year term of the District as shown in Table 2. Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 125 City of Janesville, WI Tax Increment District # 40 Development Assumptions' Construction Workforce Construction Greenhouses Industrial Annual Total Year Housing Year 1 2022 10,000,000 10,000,000 2022 1 2 2023 90,000,000 21,333,333 12,000,000 123,333,333 2023 2 3 2024 21,333,333 21,333,333 2024 3 4 2025 21,333,333 21,333,333 2025 4 5 2026 0 2026 5 6 2027 0 2027 6 7 2028 0 2028 7 8 2029 0 2029 8 9 2030 0 2030 9 10 2031 0 2031 10 11 2032 0 2032 11 12 2033 0 2033 12 13 2034 0 2034 13 14 2035 0 2035 14 15 2036 0 2036 15 16 2037 0 2037 16 17 2038 0 2038 17 18 2039 0 2039 18 19 2040 0 2040 19 20 2041 0 2041 20 Totals 100,000,000 64,000,000 12,000,000 176,000,000 Notes: tValue estimates per email from City Assessor's office dated 1-28-2022.Timing taken from Developer's TIF application letter dated 3-3-2022.Value estimate for Greenhouses further revised on 3-21-2022 per email from R.McCue. Table 1 - Development Assumptions Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page I 26 City of Janesville, WI Tax Increment District#40 Tax Increment Projection Worksheet-TOTAL TID Type of District Mixed Use Base Value 728;685 District Creation Date June 13,2022 Appreciation Factor 0.00% Valuation Date Jan 1, 2022 Base Tax Rate $21.89 Max Life(Years) 20 Rate Adjustment Factor Expenditure Period/Termination 15 6/13/2037 Revenue Periods/Final Year 20 2043 Extension Eligibility/Years Yes 3 Eligible Recipient District. No Construction Valuation Inflation Total Revenue Tax Year Value Added Year Increment Increment Year Tax Rate r,^1e'- 1 2022 10,000,000 2023 0 10,000,000 2024 $21.89 218,897 2 2023 123,333,333 2024 0 133,333,333 2025 $21.89 2,918,632 3 2024 21,333,333 2025 0 154,666,667 2026 $21.89 3,385,613 4 2025 21,333,333 2026 0 176,000,000 2027 $21.89 3,852,594 5 2026 0 2027 0 176,000,000 2028 $21.89 3,852,594 6 2027 0 2028 0 176,000,000 2029 $21.89 3,852,594 7 2028 0 2029 0 176,000,000 2030 $21.89 0 3,852,594 8 2029 0 2030 0 176,000,000 2031 $21.89 3,852,594 9 2030 0 2031 0 176,000,000 2032 $21.89 3,852,594 10 2031 0 2032 0 176,000,000 2033 $21.89 3,852,594 11 2032 0 2033 0 176,000,000 2034 $21.89 3,852,594 12 2033 0 2034 0 176,000,000 2035 $21.89 3,852,594 13 2034 0 2035 0 176,000,000 2036 $21.89 3,852,594 14 2035 0 2036 0 176,000,000 2037 $21.89 3,852,594 15 2036 0 2037 0 176,000,000 2038 $21.89 3,852,594 16 2037 0 2038 0 176,000,000 2039 $21.89 3,852,594 17 2038 0 2039 0 176,000,000 2040 $21.89 3,852,594 18 2039 0 2040 0 176,000,000 2041 $21.89 a` 3,852,594 19 2040 0 2041 0 176,000,000 2042 $21.89 is 3,852,594 20 2041 0 2042 0 176,000,000 2043 $21.89 3,852,594 0 Future-Value of increment 72,017,243 Notes: 'Tax rate shown is actual for the 2021/22 levy year per DOR Form PC-202(Tax Increment Worksheet). Table 2 - Tax Increment Projection Worksheet Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 127 Financing and Implementation The District's primary expenditures will be development incentives. Incentives will be paid on a "pay as you go" basis from the tax increment generated by the Project and may be structured in one or more phases. Payments will be made from and strictly limited to the tax increments generated by the District. The incentives are not considered City debt nor will the City appropriate funds to make incentive payments from any other sources aside from the tax increment generated by the District. The City will also incur certain costs to create and administer the District to include property tax payments to be made to the Town of Rock for a period of five years following annexation of Parcels 6-17-122 and 6-17-122A. Costs incurred by the City prior to availability of tax increments will be paid from other funds of the City to be reimbursed. Once tax increments are collected, these costs will be paid from annual District revenue. Based on the Project Cost expenditures as included within the cash flow exhibit (Table 3), the District is projected to accumulate sufficient funds by the year 2033 to pay off all Project cost liabilities and obligations. The projected closure is based on the various assumptions noted in this Plan and will vary dependent on actual Project Costs incurred and the actual amount of tax increments collected. Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 128 City of Janesville, WI Tax Increment District#40 Cash Flow Projection Projected Revenues Expenditures Balances Development Incentives' Property Tax Year Interest Payments to Incentive Tax Earnings/ Other Total Workforce Town of Total Amounts Increments (Cost) Revenue Revenues Greenhouses Industrial Housing Rock' Admin. Expenditures Annual Cumulative Outstanding Year 2022 0 50,000 50,000 (50,000) (50,000) 0 2022 2023 0 1,226 25,000 26,226 (26,226) (76,226) 17,927,697 2023 2024 218,897 218,897 197,008 0 0 1,226 25,000 223,233 (4,336) (80,562.) 31,442,422 2024 2025 2,918,632 2,918,632 1,970,077 420,283 236,409 1,226 25,000 2,652,994 265,638 185,076 28,815,653 2025 2026 3,385,613 3,385,613 1,970,077 840,566 236,409 1,226 5,000 3,053,277 332,336 517,412 25,768,601 2026 2027 3,852,594 3,852,594 1,970,077 1,260,849 236,409 1,226 5,250 3,473,810 378,784 896,195 22,301,266 2027 2028 3,852,594 3,852,594 1,970,077 1,260,849 236,409 5,500 3,472,835 379,759 1,275,955 18,833,932 2028 2029 3,852,594 3,852,594 1,970,077 1,260,849 236,409 5,750 3,473,085 379,509 1,655,464 15,366,597 2029 2030 3,852,594 3,852,594 1,970,077 1,260,849 236,409 6,000 3,473,335 379,259 2,034,724 11,899,262 2030 2031 3,852,594 3,852,594 1,970,077 1,260,849 236,409 6,250 3,473,585 379,009 2,413,733 8,431,928 2031 2032 3,852,594 3,852,594 1,970,077 1,260,849 236,409 6,500 3,473,835 378,759 2,792,492 4,964,593 2032 2033 3,852,594 3,852,594 1,970,077 1,260,849 236,409 6,750 3,474,085I 378,509 3,171,002 1,497,258 2033 2034 3,852,594 3,852,594 0 1,260,849 236,409 7,000 1,504,258 2,348,336 5,519,338 (0). 2034 2035 3,852,594 3,852,594 0 0 0 7,250 7,250 3,845,344 9,364,682 (0) 2035 2036 3,852,594 3,852,594 0 0 0 7,500 7,500 3,845,094 13,209,776 (0) 2036 2037 3,852,594 3,852,594 0 0 0 7,750 7,750 3,844,844 17,054,620 (0) 2037 2038 3,852,594 3,852,594 0 0 0 8,000 8,000 3,844,594 20,899,214 (0) 2038 2039 3,852,594 3,852,594 0 0 0 8,250 8,250 3,844,344 24,743,558 (0) 2039 2040 3,852,594 3,852,594 0 0 0 8,500 8,500 3,844,094 28,587,653 (0) 2040 2041 3,852,594 3,852,594 0 0 0 8,750 8,750 3,843,844 32,431,497 (0) 2041 2042 3,852,594 3,852,594 0 0 0 9,000 9,000 3,843,594 36,275,091 (0) 2042 2043 3,852,594 3,852,594 0 0 0 9,250 9,250 3,843,344 40,118,435 (0) 2043 Total 72,017,243 0 0 72,017,243 17,927,697 11,347,641 2,364,092 6,128 253,250 31,898,808 Total Notes: L Projected District Closure 'Incentives amount identified for purposes of confirming financial feasibility only and do not reflect a commitment by the City to provide incentives in any specific amount.Incentive commitments will be set forth in development agreements for individual phases and subject to approval by the Common Council.To the extent City provides incentives,it expects to do so on a"pay as you basis." 'Amount shown is Town of Rock portion of the property tax bills for parcels 6-17-122 and 6-17-122A.The City will pay this amount to the Town for a period of five years following annexation. Table 3 - Cash Flow Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 129 SECTION 10: Annexed Property A tax incremental district cannot include annexed territory unless at least three years have elapsed since the annexation, or certain other requirements are met. Since property within the proposed District boundary has been annexed within the past three years, the City pledges to pay the Town of Rock for each of the next five years an amount equal to the property taxes levied by the Town on the annexed parcels. Such payments allow for inclusion of the annexed lands as a permitted exception under Wis. Stat. § 66.1105(4)(gm)1. SECTION 11: Estimate of Property to Be Devoted to Retail Business Pursuant to Wis. Stat. § 66.1105(5)(b), the City estimates that less than 35% of the territory within the District will be devoted to retail business at the end of the District's maximum expenditure period. SECTION 12: Proposed Changes of Zoning Ordinances, Master Plan, Map, Building Codes and City Ordinances Zoning Ordinances The proposed Plan is in general conformance with the City's current zoning ordinances. Individual properties may require rezoning at the time of development. Master (Comprehensive) Plan and Map The proposed Plan is in general conformance with the City's Comprehensive Plan which following amendment on July 11, 2022 identifies the area as appropriate for low density residential, higher density multifamily residential, and industrial uses. Building Codes and Ordinances Development within the District will be required to conform to State Building Codes and will be subject to the City's permitting and inspection procedures. The proposed Plan conforms to all relevant State and local ordinances, plans, and codes. No changes to the existing regulations are proposed or needed. Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 130 SECTION 13: Statement of the Proposed Method for the Relocation of any Persons to be Displaced Should implementation of this Plan require relocation of individuals or business operations, relocations will be handled in compliance with Wis. Stat. Chapter 32 and Wis. Admin. Code ADM 92. SECTION 14: How Creation of the Tax Incremental District Promotes the Orderly Development of the City Creation of the District and the implementation of the projects in its Plan will promote the orderly development of the City by creating new industrial sites and opportunities for mixed use development, providing necessary public infrastructure improvements, and providing appropriate financial incentives for private development projects. Through use of tax increment financing, the City can attract new investment that results in increased tax base. Development will occur in an orderly fashion in accordance with approved plans so that the Projects will be compatible with adjacent land uses. Development of new uses in the District will add to the tax base and will generate positive secondary impacts in the community such as employment opportunities, increased income and sales tax collection, increased retail, commercial and manufacturing activity, provision of workforce housing units and other benefits to the local economy resulting from the purchase of goods and services related to construction and operation of the Project Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 131 SECTION 15: List of Estimated Non-Project Costs Non-project costs are public works projects which only partly benefit the District. Costs incurred that do not benefit the District may not be paid with tax increments. Examples of non-project costs are: • A public improvement made within the District that also benefits property outside the District. That portion of the total Project Costs allocable to properties outside of the District would be a non-project cost. • A public improvement made outside the District that only partially benefits property within the District. That portion of the total Project Costs allocable to properties outside of the District would be a non- project cost. • Projects undertaken within the District as part of the implementation of this Project Plan, the costs of which are paid fully or in part by impact fees, grants, special assessments, or revenues other than tax increments. No improvements to be made within the District will benefit property outside the District. Furthermore, there will be no improvements made outside the District that will only partially benefit the District. Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 132 SECTION 16: Legal Opinion Advising Whether the Plan is Complete and Complies with Wis. Stat. § 66.1105(4)(f) Legal Opinion Found on Following Page. Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 133 ••r 4:: C ITY OF jAN E SVI LLE Wele-Ofidea4 Pepr% Place CITY ATTORNEY'S OFFICE MEMORANDUM May 23, 2022 TO: Common Council FROM: Wald Klimczyk, City Attorney RE: Legal Opinion —TID 40 Project Plan Sec. 66.1105(4)(f), Wis. Stats., of the Tax Increment Financing Law mandates that the project plan or any plan amendment for a tax increment financing district "include an opinion of the city attorney or an attorney retained by the city advising whether the plan is complete and complies with this section." You have asked me to review a certain proposed "Tax Incremental Finance District No. 40 Project Plan," dated May 23, 2022 (the planned date for Common Council action) and determine if, in my legal opinion, it is complete and complies with the requirements of Wisconsin's T.I.F. Law. This memorandum constitutes my legal opinion. Sec. 66.1105(4)(f), Wis. Stats., sets forth those components of a T.I.F. project plan which are required by state law. They are as follows: 1. A statement listing the kind, number, and location of all proposed public works or improvements within the district or, to the extent provided in Section 66.1105(4)(f) 1. k, Wis. Stats., outside the district; 2. An economic feasibility study; 3. A detailed list of estimated project costs; 4. A description of the methods of financing all of the estimated projected costs; 5. The time when the costs or monetary obligations related thereto are to be incurred; Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 134 Common Council May 23, 2022 Page 2 6. A map showing the existing uses and conditions of the real property in the district; 7. A map showing the proposed improvements and uses in the district; 8. Proposed changes of: a. Zoning ordinances. b. The master plan, if any. c. The master map, if any. d. Building codes. e. City ordinances. 9. A list of estimated non-project costs; 10. A statement of proposed methods for the relocation of any person(s) to be displaced; and 11 . How the Tax Increment Financing District promotes the orderly development of the City. I have reviewed proposed "Tax Incremental Finance District No. 40 Project Plan," dated May 23, 2022, prepared by Todd Taves, Managing Director of Ehlers Public Finance Advisors in conjunction with the City of Janesville Economic Development Office and Finance Division. It is my legal opinion that said project plan as prepared for the Economic Development Office is complete and does comply with Section 66.1105(4) (f), Wis. Stats. According to the terms of the above cited statute, this legal opinion should now become the final component of that project plan amendment. Wald Klimczyk City Attorney wk cc: Lorena Rae Stottler, City Clerk-Treasurer Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 135 SECTION 17: Calculation of the Share of Projected Tax Increments Estimated to be Paid by the Owners of Property in the Overlying Taxing Jurisdictions The following projection is provided to meet the requirements of Wis. Stat. § 66.1105(4)(i)4. Allocation of future tax increments is based on the projections included in this Plan and assumes the same proportions as the actual breakdown of tax collections for the 2021 levy year. Revenue City of School District Blackhawk Revenue Year Rock County Janesville of Janesville Tech College Total Year 2024 56,458 72,428 79,402 10,610 218,897 2024 2025 752,777 965,700 1,058,693 141,461 2,918,632 2025 2026 873,222 1,120,213 1,228,084 164,095 3,385,613 2026 2027 993,666 1,274,725 1,397,475 186,728 3,852,594 2027 2028 993,666 1,274,725 1,397,475 186,728 3,852,594 2028 2029 993,666 1,274,725 1,397,475 186,728 3,852,594 2029 2030 993,666 1,274,725 1,397,475 186,728 3,852,594 2030 2031 993,666 1,274,725 1,397,475 186,728 3,852,594 2031 2032 993,666 1,274,725 1,397,475 186,728 3,852,594 2032 2033 993,666 1,274,725 1,397,475 186,728 3,852,594 2033 2034 993,666 1,274,725 1,397,475 186,728 3,852,594 2034 2035 993,666 1,274,725 1,397,475 186,728 3,852,594 2035 2036 993,666 1,274,725 1,397,475 186,728 3,852,594 2036 2037 993,666 1,274,725 1,397,475 186,728 3,852,594 2037 2038 993,666 1,274,725 1,397,475 186,728 3,852,594 2038 2039 993,666 1,274,725 1,397,475 186,728 3,852,594 2039 2040 993,666 1,274,725 1,397,475 186,728 3,852,594 2040 2041 993,666 1,274,725 1,397,475 186,728 3,852,594 2041 2042 993,666 1,274,725 1,397,475 186,728 3,852,594 2042 2043 993,666 1,274,725 1,397,475 186,728 3,852,594 2043 Totals 18,574,783 23,828,659 26,123,255 3,490,546 72,017,243 Tax Incremental District No.40 Project Plan City of Janesville Prepared by Ehlers Page 136