CP061B (Commercial Economic Development)CITY OF JANESVILLE Policy No. 61B
Page 1 of 7
COUNCIL POLICY STATEMENT
Date Issued 2/8/2016
Revised 4/10/2017,
4/24/2017, 10/8/2018,
General Subject: Administration 4/13/2020, 10/7/2022
Effective Date 10/24/2022
Note: The majority of this policy originates from the commercial portion of the former Council
Policy 61 which has been split into 61A and 61B
Specific Subject: Commercial Economic Cancellation Date _________
Development
Supersedes No. ___________
Responsible Dept/Div: Economic Development
I. Overall Goal: To stabilize, maintain and foster redevelopment of Janesville’s downtown,
older commercial areas and support multifamily construction, which will maintain and
expand the City’s tax base by the following:
a. Promoting reinvestment in existing commercial properties
b. Promote the reuse of existing building stock (especially within the Downtown),
c. Equalize or reduce the cost of redevelopment of older sites by funding demolition
for sites to be cleared for redevelopment.
d. Promote development of multifamily residential development that otherwise
would not be constructed. The City will set a higher prioritization on downtown
multifamily development but will also consider sites within the City with utilities
adjacent to support the development. Workforce and affordable multifamily
projects may be considered outside of the downtown as distribution of such
projects throughout the City meets objectives of the Wisconsin Housing and
Economic Development Authority (WHEDA).
II. Primary Objectives:
1. To avoid the dilapidation and underutilization of existing commercial areas of the City.
2. To promote the reuse and redevelopment of existing properties by leveraging
reinvestment.
3. To offset the cost of retrofitting existing buildings by providing economic assistance for
reuse of existing buildings.
4. To reduce the cost of constructing a new building on a previously-developed parcel
(brownfields) by funding teardowns, remediation and site preparation for
redevelopment.
5. To close the financial gap on construction of multifamily residential projects that will
provide needed housing stock.
III. Implementation:
The City Administration shall be responsible for implementing this downtown and commercial
economic development policy. The City of Janesville Economic Development Office will have a
lead role in facilitating these projects and coordinating efforts with the private sector. As
development projects arise, the Administration shall have the authority to negotiate the types and
level of development incentives needed in accordance with the provisions of this policy, subject
CITY OF JANESVILLE Policy No. 61B
Page 2 of 7
COUNCIL POLICY STATEMENT
Date Issued 2/8/2016
Revised 4/10/2017,
4/24/2017, 10/8/2018,
General Subject: Administration 4/13/2020, 10/7/2022
Effective Date 10/24/2022
Note: The majority of this policy originates from the commercial portion of the former Council
Policy 61 which has been split into 61A and 61B
Specific Subject: Commercial Economic Cancellation Date _________
Development
Supersedes No. ___________
Responsible Dept/Div: Economic Development
to final review and approval of the Common Council. The Administration shall regularly inform the
City Council of the progress of negotiations. The City Council may help establish negotiation
terms, conditions, and bargaining parameters in closed session(s). Both the City Administration
and the City Council shall maintain the confidentially of all such negotiations prior to public
announcement of the project.
Financial assistance in the form of cash shall recognize the cash position of individual Tax
Incremental District (TID). The City shall prioritize the pay-as-you go approach (PAYGO) over
providing upfront assistance to a developer. The City will recognize that the upfront assistance
is only available when a TIDis financially able to do so without significant risk to the City and its
taxpayers.
All agreements for PAYGO assistance shall incorporate a “lookback” clause within the agreement
which requires the developer to provide the City with revenue information to ensure that they are
not advancing revenues significantly more than what was projected when the assistance was
requested. In the event the project has internal rate of returns greater than 15 percent, the
agreement language shall require the developer to return the revenues that produce greater than
15 percent internal rate of return back to the City or for the City to withhold those funds.
The City as a matter of practice will continue to extend financially viable TIDs for one year to
capture an additional year of increment to fund affordable housing programs in accordance with
State Statutes. The ability to capture additional increment from the extension of these Districts
provides a significant source of upfront funding for affordable housing projects. Determining
which Districts should be extended shall be completed by the Economic Development Office in
consultation with the Finance Office, and with the approval of the City Council. Such funds shall
be set aside and limited in application to affordable projects as determined by WHEDA and the
Janesville Community Development Authority.
The City Council shall have the final authority to review and approve all negotiated agreements
and shall act on approval of them in a public meeting.
IV. Application Requirements
The City’s Tax Incremental Financing (TIF) application requirements will apply to all
development within the City’s existing Tax Incremental Districts (TIDs). The types of
development include downtown, non-downtown commercial, multifamily, and industrial
CITY OF JANESVILLE Policy No. 61B
Page 3 of 7
COUNCIL POLICY STATEMENT
Date Issued 2/8/2016
Revised 4/10/2017,
4/24/2017, 10/8/2018,
General Subject: Administration 4/13/2020, 10/7/2022
Effective Date 10/24/2022
Note: The majority of this policy originates from the commercial portion of the former Council
Policy 61 which has been split into 61A and 61B
Specific Subject: Commercial Economic Cancellation Date _________
Development
Supersedes No. ___________
Responsible Dept/Div: Economic Development
development.
The City shall impose an application fee of 1% or $10,000 of the estimated project cost,
whichever is less to all TID development projects. The fee will cover City costs associated with
evaluating the TIF application. The fee does not include the costs for consultants, if required.
These costs will be borne by the developer unless otherwise directed by the City. Payment of
this fee can be made by credit, plus any applicable credit processing fees or by check made
payable to the City of Janesville.
Developers will be required to complete and submit the City of Janesville Tax Incremental
Financing application and provide all required attachments, along with the applicable application
fee to the Economic Development Office. City staff will review the application and related
materials for completeness and accuracy. If approved by the Economic Development Office, a
redevelopment agreement will be drafted with the developer.
V. Downtown Redevelopment Policy
The City of Janesville will work with private sector initiatives like Downtown Janesville, Inc. and
Forward Janesville, Inc to attract and implement redevelopment projects in the downtown. This
policy acknowledges that in many cases, successful downtown redevelopment projects require
public assistance and/or incentives to overcome the extra costs associated with assembling
multiple properties, remediating contamination, and demolishing structures to create a
development site. Underground utilities may need to be relocated, street rights-of-way vacated,
and environmental issues identified and remediated.
The following criteria shall be used to guide decisions involving the use of downtown
redevelopment incentives:
A. Project Facilitation
The City of Janesville's Economic Development Office will be available to assist developers and
property owners to facilitate redevelopment projects. Assistance can take the form of providing
information on available development sites; determining the necessary permitting for proposed
projects; suggesting the packaging of public development financing; and helping firms complete
proposals for state and federal development assistance. In addition, the Office will coordinate the
CITY OF JANESVILLE Policy No. 61B
Page 4 of 7
COUNCIL POLICY STATEMENT
Date Issued 2/8/2016
Revised 4/10/2017,
4/24/2017, 10/8/2018,
General Subject: Administration 4/13/2020, 10/7/2022
Effective Date 10/24/2022
Note: The majority of this policy originates from the commercial portion of the former Council
Policy 61 which has been split into 61A and 61B
Specific Subject: Commercial Economic Cancellation Date _________
Development
Supersedes No. ___________
Responsible Dept/Div: Economic Development
City's response to specific requests for redevelopment incentives such as the creation of new
redevelopment TIDs as applicable and appropriate. All requests for development incentives shall
be made in writing.
B. Timing of Redevelopment Projects
Where possible, the City will use non-Tax Incremental District (non-TID) funding sources (i.e.
general funds, CDBG Blight Elimination Funds, etc.) to facilitate projects and leverage TIF funding
sources for projects.
C. Standards for Incentives
The City may use up to twenty (20) years of projected property tax increment from a downtown
redevelopment project to provide appropriate development incentives. The development
incentives may take the form of selling property for less than its fair market valuation; the
implementation of off-site streetscape and/or signage improvements; the provision of off-street
parking spaces; the relocation of existing water, sewer, storm sewer, electric, gas, and
telecommunication utilities; reimbursements to the developer for specified eligible redevelopment
costs, fees, and expenses; low/no interest project public financing; and site environmental
remediation.
D. Downtown Redevelopment Fund
The City may use up to five (5) years of property tax increments from a key downtown
redevelopment project to capitalize a downtown redevelopment fund. The redevelopment fund
would provide development assistance for smaller projects within the downtown TID that would
further improve the area surrounding the redevelopment project.
VI. Non-Downtown Commercial Redevelopment Policy
The City of Janesville will work with private developers to facilitate the redevelopment of older
commercial corridors located outside of the downtown. Downtown is defined by the Downtown
Comprehensive Tax Incremental District (TID 36). This policy recognizes that it may be necessary
CITY OF JANESVILLE Policy No. 61B
Page 5 of 7
COUNCIL POLICY STATEMENT
Date Issued 2/8/2016
Revised 4/10/2017,
4/24/2017, 10/8/2018,
General Subject: Administration 4/13/2020, 10/7/2022
Effective Date 10/24/2022
Note: The majority of this policy originates from the commercial portion of the former Council
Policy 61 which has been split into 61A and 61B
Specific Subject: Commercial Economic Cancellation Date _________
Development
Supersedes No. ___________
Responsible Dept/Div: Economic Development
to provide public incentives to overcome the extra costs of assembling smaller commercial
properties into suitable redevelopment sites and demolishing existing dilapidated and/or blighted
structures and buildings, and relocating current business tenants, commercial redevelopment
projects may also require the vacating of street rights-of-way, relocating existing utilities,
remediation of contamination, and upgrading transportation infrastructure to accommodate
additional traffic.
The following criteria shall be used to guide decisions involving the use of public incentives for
commercial redevelopment projects located outside of the downtown:
A. Project Facilitation
The City’s Economic Development Office will be available to assist developers and property
owners and facilitate redevelopment projects. Assistance can take the form of providing
information on available development sites; determining zoning and permitting for proposed
projects; working out site planning and traffic issues, and packaging public development financing.
In addition, the Office will coordinate the City's response to specific requests for redevelopment
incentives such as the creation of newTIDs.
B. Standards for Non-Downtown Commercial Redevelopment TIF Incentives
1) Non-Downtown Commercial Redevelopment TIDs shall only be considered in
commercial areas with the majority of existing structures older than forty (40) years old. The land
within a proposed Non-Downtown Commercial Redevelopment TID shall not be located within the
B-4 Business Highway Zoning District unless the property has remained vacant for more than five
(5) consecutive years and the purpose of the incentive is to remove existing dilapidated and/or
blighted structures and buildings to prepare the site for redevelopment.
2) The City may consider the creation of a new commercial redevelopment TID where a
single “anchor” redevelopment project will create more than Seven Hundred and Fifty Thousand
00/100 Dollars ($750,000) in new property value on a redevelopment site larger than one (1) acre
in size.
3) The City may draw the boundaries of the proposed commercial redevelopment TID to
include additional properties beyond the immediate “anchor” redevelopment project to stimulate
CITY OF JANESVILLE Policy No. 61B
Page 6 of 7
COUNCIL POLICY STATEMENT
Date Issued 2/8/2016
Revised 4/10/2017,
4/24/2017, 10/8/2018,
General Subject: Administration 4/13/2020, 10/7/2022
Effective Date 10/24/2022
Note: The majority of this policy originates from the commercial portion of the former Council
Policy 61 which has been split into 61A and 61B
Specific Subject: Commercial Economic Cancellation Date _________
Development
Supersedes No. ___________
Responsible Dept/Div: Economic Development
further redevelopment activity and/or consider the creation of a “mixed-use” TID where the
proposed redevelopment project includes the creation or rehabilitation of residential dwelling
units.
4) Development incentives may take the form of selling property for less than its fair
market valuation; the implementation of off-site streetscape improvements; the relocation of
existing water, sewer, storm sewer, electric, gas, and telecommunication utilities; traffic control
improvements, reimbursements to the developer for specified, eligible redevelopment costs, fees,
and expenses; low/no interest project public financing; site environmental remediation, and/or
other incentives needed to facilitate the successful redevelopment project.
5) For any specific project within a Non-Downtown commercial redevelopment TID, the
cost of the City’s public incentives shall not exceed ten (10) years of projected property tax
increments from the non-downtown redevelopment project unless the City Council decides to
increase the incentive(s) to address specific redevelopment project and/or issue(s).
VII. Multifamily Development Policy
For those sites appropriate for multifamily development, the City of Janesville will work with private
developers to facilitate the construction of projects that would be located on development sites
within the City which include utilities adjacent to support development. The intent is to prioritize
multifamily development within the downtown or on a site within the City and with utilities available
and/or if the proposed project is a workforce or affordable project which meets the objectives of
the Wisconsin Housing and Economic Development Authority who promotes the distribution of
such projects throughout the City.
A. Project Facilitation
The City of Janesville's Economic Development Office and Economic Development Team shall
have the discretion in the application of these policy standards. Ultimately the Common Council
can choose to waive a standard if a project is deemed to be a community priority. The Economic
Development Office will be available to assist developers and property owners to facilitate
multifamily projects. Assistance can take the form of providing information on available
development sites; determining the necessary permitting for proposed projects; suggesting the
packaging of public development financing; and helping firms complete proposals for state and
CITY OF JANESVILLE Policy No. 61B
Page 7 of 7
COUNCIL POLICY STATEMENT
Date Issued 2/8/2016
Revised 4/10/2017,
4/24/2017, 10/8/2018,
General Subject: Administration 4/13/2020, 10/7/2022
Effective Date 10/24/2022
Note: The majority of this policy originates from the commercial portion of the former Council
Policy 61 which has been split into 61A and 61B
Specific Subject: Commercial Economic Cancellation Date _________
Development
Supersedes No. ___________
Responsible Dept/Div: Economic Development
federal development assistance (if available). In addition, the Office will coordinate the City's
response to specific requests for development incentives such as the creation of new TIDs as
applicable and appropriate. There may be instances that the modification of an existing TID or
creation of a TID may not be possible due to state statutes limiting the use of TIF for residential
development.
B. Standards for Incentives
The City may use up to twenty (20) years of projected property tax increment from a multifamily
project to provide appropriate development incentives. The development incentives may take the
form of selling property for less than its fair market valuation; the implementation of off-site
streetscape and/or signage improvements; the provision of off-street parking spaces; the
relocation of existing water, sewer, storm sewer, electric, gas, and telecommunication utilities;
reimbursements to the developer for specified eligible redevelopment costs, fees, and expenses;
low/no interest project public financing; and site environmental remediation.