2022-1998 Resolution No. 2022-1998
A Resolution authorizing the City Manager to exercise Donaldson Option 1 to
acquire 129 acres of land, and to enter into Donaldson Option 2 to acquire 267.52
acres of land, both located near CTH G from Vivid, Inc. and the Arthur T.
Donaldson and Karen M. Donaldson Revocable Trust for industrial site
development and related public purposes.
WHEREAS, the City of Janesville desires to continue to develop industrial land in
accordance with Council Policy 61A, Industrial Economic Development Policy, which
empowers the Administration to purchase and prepare land for industrial uses and
redevelopment; and
WHEREAS. Donaldson Option No. 1 . In closed session on the 27th day of September,
2021, the CC authorized the City Administration to negotiate an Option to purchase No.
1 for approximately 129 acres of land with Vivid, Inc. and the Arthur T. Donaldson and
Karen M. Donaldson Revocable Trust for the property on the west side of CTH G and
south of Dollar General. At the next meeting, in open session, the CC approved File
Resolution No. 2021-1935, which authorized the City Manager to enter into an Option to
Purchase No. 1 agreement for the acquisition of a 129-acre parcel of land along CTH G
from Vivid, Inc. and the Arthur T. Donaldson and Karen M. Donaldson Revocable Trust
for industrial site and related development for public purposes. Each year's option fee is
$50,000. Each year's CoJ paid option fees will be applied to the overall purchase price
of the property, if and when the CoJ closes on its exercise of Option No. 1 . The purchase
price was agreed at $35,000 per acre, with the entire 129-acre site purchase price being
in the approximate amount of $4,515,000. Donaldson Option No. 1 is still pending and
not exercised. This Resolution authorizes the CoJ to exercise Option No. 1 to purchase
the 129 acres. Option 1 is reiterated and incorporated herein by reference as though fully
set forth verbatim; and
WHEREAS, staff believes an industrial project is ready to move forward on the Option 1
property. Such purchase and subsequent sale will also require the creation of a new Tax
Increment Finance District to debt finance the transaction. The CoJ paid the first year
$50,000 option fee — and will pay the subsequent two option fees — from the unrestricted
general fund balance; and
WHEREAS, the City of Janesville desires to enter into Option No. 2 to purchase an
additional 267.52 contiguous acres of land located along CTH G from Vivid, Inc. and
Arthur T. Donaldson and Karen M. Donaldson Revocable Trust, described in the City
Administration negotiated Option Purchase Agreement (the "Property"), a copy of which
is reiterated and incorporated herein by reference as though fully set forth verbatim; and
WHEREAS, under the terms of Option No. 2, the City of Janesville shall acquire
approximately Two Hundred Sixty-Three Acres of land at $35,000 per acre for a total
purchase price in the amount of Nine Million Three Hundred Sixty-Three Thousand Two
Hundred and 00/100 Dollars ($9,363,200.00) with the exact purchase price determined
Resolution No. 2022-1998
Page 2
by the actual number of acres to be conveyed to the City as determined by a final
boundary survey. Option 2 is good for one year with only a one time one year extension;
and
WHEREAS, the Plan Commission for the City of Janesville reviewed these proposed land
transactions and land uses at their meeting on Monday, December 5, 2022, and
forwarded the same to the Common Council with a positive recommendation, but not
commenting on the financial aspects of the matter; and
WHEREAS, the City of Janesville is authorized and empowered to purchase, acquire,
and use the land for industrial site and related development and public purposes and
uses, and to exercise Option 1 and enter into Option 2 pursuant to Wis. Stats. §§ 62.11(5),
62.22 (1) and (1 m), 62.23 (17) (a), 62.23 (17) (b), 66.0101 , 66.1101 , 66.1105, and related
statutes; and
WHEREAS, the Common Council hereby find that such purchases, option, and uses
constitute public purpose(s) that benefit the community, and encourage and promote the
development of industry, greater employment opportunities, economic development, and
the health, welfare, safety, good order, and best interests of the City, its residents,
businesses, taxpayers, and visitors; and
WHEREAS, total funding of these acquisitions and borrowing debt service shall be
provided through a newly created Tax Increment Finance District, its related Project Plan
and related increment revenues while the initial option fee of Fifty Thousand and 00/100
Dollars ($50,000.00) shall be provided through the Unrestricted Fund Balance of the
City's General Fund.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville
that they hereby approve and authorize the Acting City Manager and/or his designee(s)
to exercise Donaldson Option 1 and to enter into the Option To Purchase No. 2 with Vivid,
Inc. and Arthur T. Donaldson and Karen M. Donaldson Revocable Trust on behalf of the
City for the above stated purposes; and
BE IT FURTHER RESOLVED, that the Acting City Manager, on behalf of the City of
Janesville, and those he authorizes on his behalf, is/are hereby authorized to negotiate,
draft, modify, amend, review, enter into, and file all such other documents, papers, and
agreements, and to make whatever other decisions and to take whatever other actions
as the Acting City Manager may determine, from time to time and at any time, necessary
and/or desirable to effectuate the intent of this Resolution.
Resolution No. 2022-1998
Page 3
ADOPTED: December 12, 2022 Motion by: Williams
Second by: Jackson
APPROVED: Councilmember Aye Nay Pass Absent
Benson X
Burdick X
David J. Moor , Acti City Manager Jackson X
Marklein X
ATTEST: Marshick X
4'7466 Miller X
Williams X
Lorena Rae Stottler, City Clerk-Treasurer
APPROVED
DA AS TO FORM:
Wald Klimczyk, City Attorney
Proposed by: City Administration
Prepared by: City Attorney
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