2022-2044 RESOLUTION NO. 2022-2044
RESOLUTION APPROVING AN AMENDMENT TO THE PROJECT PLAN OF
TAX INCREMENTAL DISTRICT NO. 32,
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. 32 (the"District")was created by the City on September
22, 2008, as a mixed-use district; and
WHEREAS, the City now desires to amend the Project Plan of the District (the "Amendment") in
accordance with the provisions of Wisconsin Statutes Section 66.1105 (the"Tax Increment Law");
and
WHEREAS, such Amendment will:
a. Amend the categories, locations, or costs of project costs to be made as permitted
under Wisconsin Statutes Section 66.1005(4)(h)1.
b. Allow excess revenue to be transferred to Tax Incremental District No. 28 and increase
the amount of excess review to be transferred to Tax Incremental District No. 36 as
permitted under Wisconsin Statutes Section 66.1105(6)(f)1; and
WHEREAS, an amended 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 amendment of 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
Project 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 September 6, 2022, held a public hearing concerning the proposed amendment
City of Janesville Wisconsin TID No. 32 Amendment Council Resolution
to the Project Plan of the District, providing interested parties a reasonable opportunity to express
their views thereon; and
WHEREAS, after said public hearing, the Plan Commission adopted the Project Plan and
recommended to the Common Council that it amend the Project Plan.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville that:
1. The boundaries of the District named "Tax Incremental District No. 32, City of Janesville"
remain unchanged.
2. That this Amendment is effective as of the date of adoption of this resolution.
3. The Common Council finds and declares that:
(a) The improvement of such area is likely to enhance significantly the value of substantially
all of the other real property in the District.
(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, pursuant to
Wisconsin Statutes Section 66.1105(5)(b).
(c) Prior, and any remaining project costs to be incurred have promoted or will promote mixed-
use development, consistent with the purpose for which the District was created.
(d) Under the amended Project Plan, $350,000 in excess revenue will be transferred to Tax
Incremental District No. 28 and the amount to be transferred to Tax Incremental District
No. 36 will be increased from $10,000,000 to $12,000,000.
(e) The District, Tax Incremental District No. 28, and Tax Incremental District No. 36 lie within
the same overlapping taxing jurisdictions.
(f) The District has sufficient revenue to pay for all current Project Costs and has sufficient
excess revenue to pay for eligible project costs of Tax Incremental District No. 28 and Tax
Incremental District No. 36.
(g) Tax Incremental District No. 28 is a blighted area district, and Tax Incremental District No.
36 is a district in need of rehabilitation or conservation, which qualifies them as eligible
recipients of excess revenue.
4. The Project Plan for "Tax Incremental District No. 32, City of Janesville" (see Exhibit A), as
amended, is approved, and the City further finds the Project Plan is feasible and in conformity
with the master plan of the City.
City of Janesville Wisconsin TID No. 32 Amendment Council Resolution
ADOPTED: September 26, 2022 Motion by: Jackson
Second by: Benson
APPROVED: a
Councilmember Aye Nay Pass Absent
/ Benson X
Mark . reitag, City Manager Burdick X
Jackson X
ATTEST: Marklein X
Marshick X
i rPI// Miller X
Lorena Rae Stottler, City Clerk-Treasurer Williams X
APPROVED AS TO FORM:
&1� /�� Y i
Wald Klimczyk, City Attorney
Proposed by: Economic Development Office
Prepared by: Economic Development Office
•
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EXHIBIT A -
PROJECT PLAN
[DISTRIBUTED SEPARATELY]
September 6, 2022
PROJECT PLAN AMENDMENT
':-...... l t Y of Janesville, Wisconsin
Tax Incremental District No. 32
EHLERS
,, - „ BLIC FIN/{ . ,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: August. 15, 2022
Public Hearing Held: September 6, 2022
Approval by Plan Commission: September 6, 2022
Adoption by Common Council: September 26, 2022
Approval by the Joint Review Board: October 3, 2022
TABLE OF CONTENTS
Executive Summary 3
Map of Current District Boundary 7
Map Showing Existing Uses and Conditions 9
Equalized Value Test 9
Statement Listing the Kind, Number and Location of All Proposed Public Works or
Improvements Within the District 9
Map Showing Proposed Improvements and Uses 16
Detailed List of Estimated Project Costs 17
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 18
Annexed Property 23
Estimate of Property to be Devoted to Retail Business 23
Proposed Changes of Zoning Ordinances, Master Plan, Map, Building Codes and City
Ordinances 23
Statement of the Proposed Method for the Relocation of any Persons to be Displaced
24
How Amendment of the Tax Incremental District Promotes the Orderly Development
of the City 24
List of Estimated Non-Project Costs 25
Legal Opinion Advising Whether the Plan is Complete and Complies with Wis. Stat §
66.1105(4)(f) 26
Calculation of the Share of Projected Tax Increments Estimated to be Paid by the
Owners of Property in the Overlying Taxing Jurisdictions 29
Tax Incremental District No. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 12
SECTION 1:
Executive Summary
DESCRIPTION OF DISTRICT
Tax Incremental District ("TID") No. 32 ("District") is a Mixed-Use District
created on September 22, 2008, to stimulate continued mixed use and
industrial development along N. Wright Road, Enterprise Drive and Racine
Street. The District's specific objectives as set forth in its original Project Plan
were to:
• Promote industry retention and expansion through the continued
development of an existing industrial area, thereby retaining jobs and
increasing tax base.
• Provide appropriate financial incentives to encourage industrial
expansion.
• Improve the municipal transportation and utility infrastructure to
accommodate new mixed-use development in this emerging area of
town.
• Reduce the financial risk to the taxpayer by timing the implementation of
the Project Plan with the creation of additional property value through
industry expansions and negotiating development agreements with tax
guarantees for specific projects.
• Generate sufficient new property tax increments associated with the
development project.
Originally consisting of 245 acres, the District's boundaries were amended on
April 28, 2014 to add an additional 153 acres of developable land to the east.
The District was further amended on July 8, 2019 to permit it to allocate excess
revenue to Tax Incremental District No. 36.
PURPOSE OF AMENDMENT
The purpose of this amendment, referred to hereafter as the Plan, the
Amendment, or the Plan Amendment, is to:
• Amend the categories, locations, or costs of project costs to be made as
permitted under Wis. Stat. § 66.1005(4)(h)1. As part of the Plan
Amendment, the City is setting forth the estimated types, costs and
timing of the remaining Project Costs it expects to make through the end
of the District's expenditure period in 2023, and remaining payments to
be made on obligations entered into or planned to be entered into prior
to the end of the expenditure period.
Tax Incremental District No. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 13
• Allow $350,000 in excess revenue to be transferred to Tax Incremental
District No. 28 ("TID No. 28") and to increase the amount of excess
revenue to be transferred to Tax Incremental District No. 36 (TID No. 36")
(collectively, the "Recipient Districts") from $10,000,000 to $12,000,000
as permitted under Wis. Stat. § 66.1105(6)(f)1. The Plan Amendment
meets the following criteria necessary to allow for the transfer of excess
revenue:
1. The District and the Recipient Districts lie within the same overlapping
taxing jurisdictions.
2. The District has enough revenue to pay for all current Project Costs
and has enough excess revenue to pay for eligible project costs of the
Recipient Districts.
3. TID No. 28 is a blighted area district, and TID No. 36 is a district in need
of rehabilitation or conservation, which qualifies them as eligible
recipients of excess revenue.
ESTIMATED TOTAL PROJECT COST EXPENDITURES
The current Plan provides for an estimated $24.23 million in expenditures
("Project Costs") to include $10 million to be transferred to TID No. 36. The City
has made approximately $10.13 million in expenditures through December 31,
2021. Projected expenditures in 2022 and through the remaining life of the
District, to include the transfer of excess revenue to the Recipient Districts, total
to $19.85 million. These projected expenditures will cause total costs to exceed
the current Plan estimate by $5.72 million. This Amendment provides the City
authority to make the additional expenditures. Remaining costs to be incurred
include approximately $8.2 million for development incentives, $350,000 to be
allocated to TID No. 28, $11.25 million to be allocated to TID No. 36, and $48,200
for administrative expense.
INCREMENTAL VALUATION
As of January 1, 2022, incremental value of $150,938,900 has been created. The
City projects that additional land and improvements value of approximately
$38.12 million will be created in the District over the next three years
representing completion of Phase II of The Glade apartments project, and
construction of two to three additional buildings as part of planned Phase III.
Creation of this additional value will result from the Project Costs that have
been made, and which will be 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.
Tax Incremental District No. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 14
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 17 of its allowable 20 years.
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's prior review of Phase I and Phase II of The Glade project indicated
that project could not proceed without appropriate development incentives,
and the City expects that will remain the case with respect to Phase III of
that project. Regarding the planned transfers to the Recipient Districts,
absent such transfers, those districts will be unable to recover all project
costs required for the implementation of their respective project plans.
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
value expected to be created, the Project will result in creation of market
rate multi-family housing to meet market demand, and provision of
employment and commercial opportunities related to the construction and
operation of the Project. Additionally, the transfers to the Recipient Districts
are expected to produce additional economic benefits associated with the
continued implementation of those district's project plans such as
rehabilitation and conservation of property, elimination of blighted areas
and provision of necessary public infrastructure improvements.
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
expected to be realized as set forth in this Plan outweigh the value of the
tax increments to be invested in the Project.
Tax Incremental District No. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page I 5
4. The boundaries of the District are not being amended.
5. 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.
6. The Plan for the District is feasible and is in conformity with the Master Plan
of the City.
7. 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).
Tax Incremental District No. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 16
SECTION 2:
Map of Current District Boundary
For reference, a map identifying the current boundaries of the District is
included below. The District's boundaries are not being amended. Also included
for reference on the following page is map depicting the location of the
Recipient Districts.
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Tax Incremental District No. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 17
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Map Identifying Location of
Tax Incremental Districts No. 28 and 36
(Recipient Districts)
Tax Incremental District No. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 18
SECTION 3:
Map Showing Existing Uses and Conditions
The District's boundaries are not being amended. The "Map Showing Existing
Uses and Conditions" included within the District's amended Project Plan dated
July 8, 2019 remains unchanged and is incorporated by reference as part of this
P►an Amendment.
SECTION 4:
Equalized Value Test
No territory will be added to the District. Demonstration of compliance with the
equalized value test is not required for this Plan Amendment.
SECTION 5:
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
obligation 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
P►an are preliminary estimates made prior to design considerations and are
subject to change after planning, design and construction is completed. With
al► 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 "Statement Listing the Kind, Number and Location of Al► Proposed Public
Works or Improvements Within the District" included in the District's amended
Project Plan dated July 8, 2019 remains unchanged but is restated in this
Section reflecting the types of projects that will, or may need to, be undertaken
through the remaining expenditure period.
Tax Incremental District No. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 19
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
defined in Wis. Stat. § 66.1105(2)(f)1.c., and subject to recovery as an eligible
Project Cost.
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.
Tax Incremental District No. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 110
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.
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; manholes 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. The improvements to the
wastewater treatment facilities, although not within the 1/2 mile radius, is an
eligible project cost under Wis. Stat. § 66.1105(2)(f)1 k.
Tax Incremental District No. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 111
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
river banks; 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. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 112
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 and/or redevelopment 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. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 113
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 La Prairie 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 intends to make the following project cost
expenditures outside the District:
• Installation of traffic signals at Racine Street at its intersection with the
frontage road. Development of the Project and the additional land
included within the territory to be added to the District will necessitate
installation of signals.
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.
Tax Incremental District No. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 114
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.32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 115
SECTION 6:
Map Showing Proposed Improvements and Uses
The District's boundaries are not being amended. The "Map Showing Proposed
Improvements and Uses" included within the District's amended Project Plan
dated July 8, 2019 remains unchanged and is incorporated by reference as part
of this Plan Amendment.
Tax Incremental District No. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 116
SECTION 7:
Detailed List of Estimated Project Costs
The prior Plan Amendment dated July 8, 2019, provided for an estimated $24.23
million in expenditures to include $10 million to be transferred to TID No. 36.
The City has made approximately $10.13 million in expenditures through
December 31, 2021. Projected expenditures in 2022 and through the remaining
life of the District, to include the transfer of excess revenue to the Recipient
Districts, are shown on the table included below and total to $19.85 million.
These projected expenditures will cause total costs to exceed the current Plan
estimate by $5.72 million. This Amendment provides the City authority to make
the additional expenditures.
City of Janesville, Wisconsin
Tax Increment District # 32
Detailed List of Estimated Project Costs
Estimated District Project Costs
Original Project Plan 6,580,560
Amendment No.1 7,673,069
Prior Allocation Authorizatio 10,000,000
Estimated Project Costs as of (10,128,530}
Unexpended Balance 14,125,099
Project
ID Project Name/Type 2022 2023 2024 2025-2029 Total
Development Incentive-
1 1,333,333 2,666,667 0 0 4,000,000
The Glade Phase II
Development Incentive-
2 0 1,333,333 2,666,667 0 4,000,000
The Glade Phase III
Development Incentive
3 200,000 0 0 0 200,000
Payments-Sara Investments
4 Allocation to TID 28 350,000 0 0 0 350,000
5 Allocation to TID 36 250,000 1,943,784 1,186,637 7,864,578 11,250,000
6 Administrative Expense 5,150 5,150 5,150 32,750 48,200
Total Projects 2,138,483 5,953,934 3,858,454 7,897,328 19,848,200
Addition/(Reduction)in Estimated District Project Costs 5,723,101
Tax Incremental District No. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 117
SECTION 8:
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 an updated forecast of the valuation increases expected
within the District, the associated tax increment collections, a summary of how
remaining Project Costs would be financed, and a projected cash flow
demonstrating that the District remains economically feasible.
Key Assumptions
The Project Costs the City has made and plans to make are expected to create
$189 million in incremental value by January 1, 2025, with $150.9 million of that
total in place as of January 1, 2022. 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 an
additional $27.2 million in incremental tax revenue over the remaining 7-year
term of the District as shown in Table 2
Tax Incremental District No. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 118
City of Janesville, Wisconsin
Tax Increment District# 32
Development Assumptions
Construction The Glade The Glade Construction
Actual' Annual Total
Year Phase 112 Phase 1113 Year
10 2017 66,286,200 66,286,200 2017 10
11 2018 (3,155,3001 (3,155,800) 2018 11
12 2019 19,097,000 19,097,000 2019 12
13 2020 23,319,300 23,319,300 2020 13
14 2021 45,392,200 45,392,200 2021 14
15 2022 13,063,300 13,063,300 2022 15
16 2023 8,351,400 8,351,400 2023 16
17 2024 16,702,800 16,702,800 2024 17
13 2025 0 2025 18
19 2026 0 2026 19
20 2027 0 2027 20
Totals 150,938,900 13,063,300 25,054,200 189,056,400
Notes:
1Value shown as actual for construction year 2017 reflects actual total incremental value of District as of January 1,2018.
2Value for 2022 construction reflects assessor's estimate provided on 7-25-2022 divided by 72%(1-1-2022 estimated
assessment ratio).
3Assumes three additional 48 unit buildings are added,one building in 2023 and two in 2024,with a valuation of$6,013,000
per building adjusted to reflect a 72%assessment ratio).
Table 1 - Development Assumptions
Tax Incremental District No. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 119
City of Janesville, Wisconsin
Tax Increment District# 32
Tax Increment Projection Worksheet
Type of District Mixed Use Base Value 81,272,100
District Creation Date September 22,2008 Appreciation Factor 0.0096
Valuation Date Jan 1, 2008 Base Tax Rate $21.89
Max Life(Years) 20 Rate Adjustment Factor
Expenditure Period/Termination 15 9/22/2023
Revenue Periods/Final Year 20 2029
Extension Eligibility/Year Yes 6
Eligible Recipient District No
Construction Valuation Inflation Total Revenue Tax
Year Value Added Year Increment Increment Year Tax Rate' Increment
11 2018 -3,155,800 2019 63,130,400 2020 $22.21 1,401,839
12 2019 19,097,000 2020 82,227,400 2021 $21.91 1,802,013
13 2020 23,319,300 2021 105,546,700 2022 $21.89 2,310,390
14 2021 45,392,200 2022 150,938,900 2023 $21.89 3,304,013
15 2022 13,063,300 2023 0 164,002,200 2024 $21.89 3,589,965
16 2023 8,351,400 2024 0 172,353,600 2025 $21.89 3,172,775
17 2024 16,702,800 2025 0 189,056,400 2026 $21.89 4,138,395
18 2025 0 2026 0 189,056,400 2027 $21.89 4,138,396
19 2026 0 2027 0 189,056,400 2028 $21.89 4,138,395
20 2027 0 2028 0 189,056,400 2029 $21.89 4,138,395
Totals 122,770,200 0 Future Value of Increment(2023-2029) 27,220,335
Notes:
"Tax rate shown for the 2022 and preceding revenues years is actual per DOR Form PC-202(Tax Increment Collection Worksheet).
Table 2 - Tax Increment Projection Worksheet
Tax Incremental District No. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 120
Financing and Implementation
Remaining anticipated Project Costs include development incentives, transfers
of tax increment to the Recipient Districts and administrative expense. All costs
are expected to be paid from cash on hand, of from future collections of tax
increment.
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
2026 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. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 121
City of Janesville, Wisconsin
Tax increment District t#32
Cash Flow Projection
Projected Revenues Expenditures Balances
Development Incentive Payments'
Year interest State& Service Total
Tax Earnings/ Federal Charges& Total Capital Prior The Glade The Glade Sara Transfer to Transfer to Expenditure
Increments (Cost) Aids' Other Revenues Projects Incentives Phase II Phase III Investments TID No.28 TID No.36 Other Exp. Admin. s Annual Cumulative' Year
2017 1,030,166 35,436 84,800 93,632 1,244,034 27,406 335,000 4,795 367,201 876,833 1,814,507 2017
2018 1,484,313 63,551 86,047 46,144 1,680,055 29,465 81,270 7,512 118,247 1,561,808 3,376,315 2018
2019 1,521,640 83,856 152,620 99,815 1,857,931 1,426,174 250,000 43,376_ 1,719,550 138,381 3,514,696 2019
2020 1,401,839 14,469 248,489 123,956 1,788,753 3,589,321 250,000 2,285 3,841,606 (2,052,853) 1,461,843 2020
2021 1,802,013 3,979 344,359 130,609 2,280,960 1,537,651 250,000 14,116 1,801,767 479,194 1,941,037 2021
2022 2,310,390 248,489 20,000 2,578,879 1,333,333 200,000 350,000 250,000 5,150 2,138,483 440,396 2,381,432 2022
2023 3,304,013 248,489 20,000 3,572,502 2,666,667 1,333,333 1,948,784 5,150 5,953,934 (2,381,432) 0 2023
2024 3,589,965 248A89 20,000 3,858,454 2,666,667 1,186,637 5,150 3,858,454 0 0 2024
2025 3,772,775 248,489 20,000 4,041,264 4,032,614 8,650 4,041,264 0 0 2025
2026 4,138,395 248,489 20,000 4,406,884 3,831,964 5,150 3,837,114, 569,771 569,771 2026
2027 4,138,395 248,489 20,000 4,406,884 5,150 5,150 4,401,734 4,971,505 2027
2028 4,138,395 248,489 20,000 4,406,884 5,150 5,150 4,401,734 9,373,239 2028
2029 4,138,395 248,489 20,000 4,406,884 8,650 8,650 4,398,234 13,771,474 2029
Total 36,770,696 201,291 2,904,227 794,156 40,530,370 6,610,017 335,000 4,000,000 4,000,000 200,000 350,000 12,000,000 81,270 120,284' 27,696,571 Total
Notes: �I Projected District Closure
`Exempt Computer Aids and Personal Property Exemption Aid Payments
'The Glade Phase I incentives are reflected in the Capital Projects totals in 2020 and 2021.Phase III incentive assumes three additional 48 unit buildings with an incentive of$1,333,000 per building.
'Year ending fund balances shown through 2021 reflect actual per City's audited financial statements.
Table 3-Cash Flow
Tax Incremental District No.32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 122
SECTION 9:
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.
No territory is being added to the District as part of this Plan Amendment.
SECTION 10:
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 11:
Proposed Changes of Zoning Ordinances, Master Plan,
Map, Building Codes and City Ordinances
Zoning Ordinances
The proposed Plan Amendment 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 Amendment is in general conformance with the City's
Comprehensive Plan identifying the area as appropriate for mixed use'
development.
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 Amendment 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. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 123
SECTION 12:
Statement of the Proposed Method for the Relocation of
any Persons to be Displaced
Should the continued 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 13:
How Amendment of the Tax Incremental District
Promotes the Orderly Development of the City
This Plan Amendment continues to promote the orderly development of the
City by providing appropriate financial incentives for private development
projects, specifically market-rate multi-family housing, and by providing
financial resources to the Recipient Districts that will assist with rehabilitating
and conserving property, eliminating blighted areas and provision of necessary
public infrastructure improvements Development will occur in an orderly
fashion in accordance with approved plans. Development of new uses in the
District will add to the tax base and will generate positive secondary impacts
in the community such as provision of employment and commercial
opportunities related to the construction and operation of the Project.
Tax Incremental District No. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 124
SECTION 14:
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. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 125
SECTION 15:
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. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 126
CITY OF JANESVILLE
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-00 - Discover the community of choice
to realize life's opportunities
CITY ATTORNEY'S OFFICE MEMORANDUM
August 30, 2022
TO: Jimsi Kuborn, Economic Development Director
FROM: Wald Klimczyk, City Attorney
RE: Legal Opinion —TID 32 Project Plan Amendment No. 3
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 "Amendment No. 3 to the Project Plan," dated September 6, 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. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 127
Jimsi Kuborn
August 30, 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 "Amendment No. 3 to the Project Plan," dated
September 6, 2022, prepared by Elhers and Associates in conjunction with the City of
Janesville Economic Development Office and Finance Division. It is my legal opinion that
said project plan amendment, 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. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 128
SECTION 16:
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)40.
Blackhawk
Revenue Technical City of School District Revenue
Year Rock County College Janesville OfJanesville Total Year
2023 815,844 153,312 1,046,607 1,288,250 3,304,013 2023
2024 886,452 166,581 1,137,188 1,399,745 3,589,965 2024
2025 931,593 175,063 1,195,096 1,471,023 3,772,775 2025
2026 1,021,874 192,029 1,310,913 1,613,580 4,138,395 2026
2027 1,021,874 192,029 1,310,913 1,613,580 4,138,395 2027
2028 1,021,874 192,029 1,310,913 1,613,580 4,138,395 2028
2029 1,021,874 192,029 1,310,913 1,613,580 4,138,395 2029
Totals 6,721,383 1,263,072 8,622,542 10,613,339 27,220,335
Tax Incremental District No. 32 Project Plan Amendment City of Janesville
Prepared by Ehlers Page 129