CP061A (Industrial Economic Development Policy) CITY OF JANESVILLE Policy No. 61A
Page 1 of 14
COUNCIL POLICY STATEMENT
Date Issued 6/13/1994
Revised 10/28/2003
General Subject: Administration Revised 11/14/2006
Revised 7/08/2013
Revised 11/11/2013
Revised 10/8/2018
Revised 07/11/2022
Revised 1/22/2024
Effective Date 01/22/2024
Specific Subject: Industrial Economic
Development
Cancellation Date _________
Supersedes No. ___________
I. Overall Goal: To continue development of Janesville’s industrial tax base
by diversification and expansion of key targeted industries in conjunction
with the Rock County Development Alliance.
a. through the retention and expansion of existing industries
b. the attraction of growing industrial and large regional service
sector employers
c. the redevelopment of older industrial areas.
II. Primary Objectives:
1. To compete on an equal basis with other communities and states for
an increased share of new industrial development projects.
2. To attract smaller, fast growing manufacturing and regional office
employers in industrial business sectors with projected growth.
3. To implement a high profile proactive approach to local industrial
economic development in partnership with the Rock County
Development Alliance.
4. To facilitate and foster continued growth of existing industrial
employers located in the City of Janesville (COJ).
5. To maximize the effectiveness of the City's limited resources in
stimulating job-creating industrial development projects.
CITY OF JANESVILLE Policy No. 61A
Page 2 of 14
COUNCIL POLICY STATEMENT
Date Issued 6/13/1994
Revised 10/28/2003
General Subject: Administration Revised 11/14/2006
Revised 7/08/2013
Revised 11/11/2013
Revised 10/8/2018
Revised 07/11/2022
Revised 1/22/2024
Effective Date 01/22/2024
Specific Subject: Industrial Economic
Development
Cancellation Date _________
Supersedes No. ___________
6. To provide and facilitate the use of federal and state industrial
development incentive programs and grants for local development
projects with a consistent set of guidelines for City Administration for
the following:
a. existing and new employers for the purpose of business
retention, expansion, and
b. bring new industries within the City of Janesville.
III. Implementation:
The City Administration shall be responsible for implementing this industrial
economic development policy. The CoJ Economic Development Office will have
a lead role in facilitating industrial development 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. 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.
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
CITY OF JANESVILLE Policy No. 61A
Page 3 of 14
COUNCIL POLICY STATEMENT
Date Issued 6/13/1994
Revised 10/28/2003
General Subject: Administration Revised 11/14/2006
Revised 7/08/2013
Revised 11/11/2013
Revised 10/8/2018
Revised 07/11/2022
Revised 1/22/2024
Effective Date 01/22/2024
Specific Subject: Industrial Economic
Development
Cancellation Date _________
Supersedes No. ___________
to all development within the City’s existing Tax Incremental Districts (TIDs).
The types of development include downtown, non-downtown commercial,
multifamily, and industrial 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’s 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 development
agreement will be drafted with the developer.
V. Industrial Development Policy:
The City of Janesville shall effectuate a twofold approach: (1) concentrate its
industrial development efforts on retaining its existing industrial firms and
facilitating their expansion. (2) In addition, the CoJ shall work with the Rock
County Development Alliance to attract new industrial employers in the following
targeted industries: business services and technology, advanced manufacturing,
food processing and technology, health care and medical technology, logistics
and supply chain, and value-added agriculture. The CoJ shall utilize the
CITY OF JANESVILLE Policy No. 61A
Page 4 of 14
COUNCIL POLICY STATEMENT
Date Issued 6/13/1994
Revised 10/28/2003
General Subject: Administration Revised 11/14/2006
Revised 7/08/2013
Revised 11/11/2013
Revised 10/8/2018
Revised 07/11/2022
Revised 1/22/2024
Effective Date 01/22/2024
Specific Subject: Industrial Economic
Development
Cancellation Date _________
Supersedes No. ___________
available development programs to remain competitive in the attraction of new
industrial employers.
This industrial development policy acknowledges that in many cases, successful
development projects can occur without any public sector involvement.
Consequently, the City Administration shall market equally both private and
public development sites, and should utilize public incentive programs only
when needed to successfully accomplish economic development objectives.
The following criteria shall be used to guide decisions involving the use of
industrial development incentives:
A. Project Facilitation
The City of Janesville's Economic Development Office will be available to
assist existing industries and new industrial prospects to facilitate
development projects. Assistance can take the form of providing
information on available industrial sites and buildings; facilitating
expansions through transfer of adjacent city land; determining the
necessary permitting for proposed projects; packaging development
financing; or helping firms complete proposals for state and federal
development assistance. In addition, the Office will coordinate the City’s
response to specific requests for development incentives such as the sale of
City-owned industrial sites or the creation of a new industrial TID. All
requests for development incentives shall be made in writing.
B. Financing
CITY OF JANESVILLE Policy No. 61A
Page 5 of 14
COUNCIL POLICY STATEMENT
Date Issued 6/13/1994
Revised 10/28/2003
General Subject: Administration Revised 11/14/2006
Revised 7/08/2013
Revised 11/11/2013
Revised 10/8/2018
Revised 07/11/2022
Revised 1/22/2024
Effective Date 01/22/2024
Specific Subject: Industrial Economic
Development
Cancellation Date _________
Supersedes No. ___________
1. Industrial Revenue Bonds- The City of Janesville will consider the
adoption of initial resolutions in support of eligible industrial
projects where the project financed will have a positive impact on
the City's tax base and employment opportunities and where the
company using the bond proceeds is shown to be financially
secure. Applicants for the use of industrial revenue bonds shall
present evidence of financial resources sufficient to cover the costs
involved.
2. Federal/State Programs- The Economic Development Office will
provide assistance to existing industries and industrial prospects
in identifying federal and state financing and/or assistance
programs. Where appropriate, the Agency can take a lead role in
developing a financing package for development projects and can
help the firm complete the necessary application materials.
C. Industrial Parks/Tax Incremental Districts
1. Existing Industrial Areas
Janesville shall continue to actively promote existing industrial
parks and smaller sites for businesses that do not need additional
incentives for expansion projects. Both public and privately owned
sites will be treated equally, with the site location decision left to
the business planning the development project. By promoting the
use of existing sites that are currently served with public utilities,
the overall cost of development to the City can be minimized.
a) In order to enhance and make marketable privately owned
CITY OF JANESVILLE Policy No. 61A
Page 6 of 14
COUNCIL POLICY STATEMENT
Date Issued 6/13/1994
Revised 10/28/2003
General Subject: Administration Revised 11/14/2006
Revised 7/08/2013
Revised 11/11/2013
Revised 10/8/2018
Revised 07/11/2022
Revised 1/22/2024
Effective Date 01/22/2024
Specific Subject: Industrial Economic
Development
Cancellation Date _________
Supersedes No. ___________
industrial and commercial properties, the City of Janesville,
upon written request, may install water mains, sanitary
sewers, storm sewers, and roadways as improvements to
properties fronting on public streets. Payment for the
improvements requested shall be consistent with City Policy
for public infrastructure improvements:
1) If a property is split without platting or surveying
(because it exceeds the provisions of Statute requiring
platting or surveying), the amount of any special
assessments shall be apportioned to the resulting
parcels.
b) In order to improve the marketability of vacant industrial, all
owners are encouraged to maintain them in a presentable
condition.
c) The City may offer to buy privately owned and industrially
zoned development sites at the fair market value as appraised
by the City Assessor, or by an independent appraiser,
mutually agreed upon by both parties. If possible, the cost of
the independent appraisal will be shared equally by both
parties.
2. New Industrial Tax Incremental Districts (TID)
a) The City of Janesville will only consider the creation of an
CITY OF JANESVILLE Policy No. 61A
Page 7 of 14
COUNCIL POLICY STATEMENT
Date Issued 6/13/1994
Revised 10/28/2003
General Subject: Administration Revised 11/14/2006
Revised 7/08/2013
Revised 11/11/2013
Revised 10/8/2018
Revised 07/11/2022
Revised 1/22/2024
Effective Date 01/22/2024
Specific Subject: Industrial Economic
Development
Cancellation Date _________
Supersedes No. ___________
industrial TID where an industry, manufacturer, distribution
center, targeted industry or related regional office developer is
committed to construct a major development project and
where the project would not occur without development
incentives. The use of industrial TIDs will be considered for
both existing Janesville industries and new industries
considering a Janesville location. The use of TIF to provide
direct financial assistance to industrial projects shall be
guided by the following criteria:
* Does the proposed project conform to existing plans and
land use regulations?
* Does the proposed project help to implement the City's
economic development strategy?
* Is the City's assistance needed in order to make the
project feasible?
* Is the business financially stable and likely to continue
to grow and create jobs for Janesville residents?
* Will the cost of the proposed development incentives
exceed the projected tax increments generated by the
project over the life of the TID?
* Will the developer guarantee that tax increments will be
available for all TIF costs that are actually incurred?
CITY OF JANESVILLE Policy No. 61A
Page 8 of 14
COUNCIL POLICY STATEMENT
Date Issued 6/13/1994
Revised 10/28/2003
General Subject: Administration Revised 11/14/2006
Revised 7/08/2013
Revised 11/11/2013
Revised 10/8/2018
Revised 07/11/2022
Revised 1/22/2024
Effective Date 01/22/2024
Specific Subject: Industrial Economic
Development
Cancellation Date _________
Supersedes No. ___________
b) The City of Janesville will only consider the creation of a new
TID industrial park on vacant land which is suitable for
industrial development if there are commitments for at least
$1 million in new construction and the creation or retention
of at least 50 full-time, living wage jobs.
c) Where the City is asked to develop a Tax Incremental District
(TID) for a major development project, the City will consider
including additional acreage within the TID to provide suitable
sites for smaller, growing firms which need development
incentives in order to expand.
d) Only the following types of business establishments will be
eligible for development incentives within a TID Industrial
Park:
* Manufacturing Firms- As defined under Wisconsin
Statutes Section 70.11(27), as from time to time amended
or renumbered. "Manufacturing means the producing,
assembling, fabricating, making, or milling by machinery
and equipment, a new article or components with a
different form, use, and name by a process popularly
regarded as manufacturing and as further defined in ss.
70.995 (1) and (2)."
* Support and service activities directly related to and used
in conjunction with manufacturing operations having the
CITY OF JANESVILLE Policy No. 61A
Page 9 of 14
COUNCIL POLICY STATEMENT
Date Issued 6/13/1994
Revised 10/28/2003
General Subject: Administration Revised 11/14/2006
Revised 7/08/2013
Revised 11/11/2013
Revised 10/8/2018
Revised 07/11/2022
Revised 1/22/2024
Effective Date 01/22/2024
Specific Subject: Industrial Economic
Development
Cancellation Date _________
Supersedes No. ___________
same principal user, including but not limited to
management and administration, data processing,
research and testing, storage and distribution, but not
including sale to ultimate consumers for personal, family,
or household consumption.
* Storage, distribution, and wholesaling of manufacturing
products and materials used in manufacturing, but not
including retail sale of products.
* Selected services businesses, regional corporate offices,
financial transaction processing centers, and
manufacturing testing facilities.
e.) The cost of land acquisition, internal streets, water and sewer
mains, storm sewers, natural gas and electric lines,
sidewalks, development site improvement costs, necessary
and related street and utility improvements outside of the TID,
industrial park landscaping, industrial park signage, street
lighting, financing incentives (such as interest rate
write-downs, forgivable loans, etc.), employee training costs,
real estate sales commissions, City borrowing costs, planning,
other costs as allowed by law, administration costs, TID
marketing costs, and other expenses related to implementing
the economic development strategy may be financed out of TID
increments, in accordance with the TID project plan.
f) In return for the incentives offered by the CoJ through the
CITY OF JANESVILLE Policy No. 61A
Page 10 of 14
COUNCIL POLICY STATEMENT
Date Issued 6/13/1994
Revised 10/28/2003
General Subject: Administration Revised 11/14/2006
Revised 7/08/2013
Revised 11/11/2013
Revised 10/8/2018
Revised 07/11/2022
Revised 1/22/2024
Effective Date 01/22/2024
Specific Subject: Industrial Economic
Development
Cancellation Date _________
Supersedes No. ___________
creation of the Industrial TID, the business receiving the
incentives shall guarantee an annual property tax payment
sufficient to allow the CoJ to fully recover its entire TIF
investment within the time period set by the Council (not to
exceed 10 years pursuant to this Policy)
g) The business receiving CoJ’s development incentives shall
provide the Administration with sufficient financial
information to document that the business is financially
stable, in the determination of the Economic Development
Director.
h) The Economic Development Office will work with the industry
to determine the package of development incentives necessary
to complete the development project. The development
incentive package must be approved by the City Council in
open session.
i) Standards for Incentives for Individual Development
Proposals – Greenfield Sites
1) As noted in 2b, the City of Janesville will only consider
the creation of a new TID industrial park on vacant land
which is suitable for industrial development if there are
commitments for at least $1 million in new construction
and the creation or retention of at least 50 full-time, living
wage jobs.
2. Industrial development agreements must demonstrate
CITY OF JANESVILLE Policy No. 61A
Page 11 of 14
COUNCIL POLICY STATEMENT
Date Issued 6/13/1994
Revised 10/28/2003
General Subject: Administration Revised 11/14/2006
Revised 7/08/2013
Revised 11/11/2013
Revised 10/8/2018
Revised 07/11/2022
Revised 1/22/2024
Effective Date 01/22/2024
Specific Subject: Industrial Economic
Development
Cancellation Date _________
Supersedes No. ___________
financial viability by creating adequate TIF increment to
cover the cost of the incentive. Since construction of
industrial space on a speculative basis may be necessary
to attract growing businesses, job creation might not be
required in a particular individual TIF agreement.
3) The maximum cost of the City's assistance to each
business locating within the industrial TID shall be
calculated so that the City will fully recover all of its TIF
costs including City borrowing costs through the
industry’s payment of the projected property tax
increments over a ten (10) year period.
4) The City may use up to two (2) years of projected property
taxes from each Greenfield TIF project to capitalize a
Development Fund that can provide assistance for
certain “soft” costs like machinery relocation costs,
employee training costs, site feasibility studies which
relate to development projects within the Greenfield TID.
The TIF funds may be used where an existing industry
within a Greenfield TID undertakes a development project
that creates and/or retains jobs, but does not create new
taxable property value.
5) The City may also provide additional incentives for job
creation of the newly created full time Living Wage
Equivalent Jobs. The Job Creation Incentive will be based
on two years of additional projected property taxes
CITY OF JANESVILLE Policy No. 61A
Page 12 of 14
COUNCIL POLICY STATEMENT
Date Issued 6/13/1994
Revised 10/28/2003
General Subject: Administration Revised 11/14/2006
Revised 7/08/2013
Revised 11/11/2013
Revised 10/8/2018
Revised 07/11/2022
Revised 1/22/2024
Effective Date 01/22/2024
Specific Subject: Industrial Economic
Development
Cancellation Date _________
Supersedes No. ___________
created from each Greenfield TIF project; OR, 10% of the
Annual Living Wage Salary Index multiplied by the
number of new Living Wage Equivalents each project will
create, whichever is LESS. Living Wage Equivalent Jobs
(LWE) are considered jobs that pay a livable wage, as
established by the Living Wage Index based on a family
of 2 adults and 2 children.
j) Standards for Incentives – Individual Existing Industry
Expansions
1) The City will consider the creation of a new industrial TID
around an existing Janesville industry, where the
industry is committed to an expansion project that will
result in an additional $500,000 in property value and
the creation or retention of at least 10 jobs.
2) The maximum cost of the City's assistance to each
business expanding within an industrial TID shall be
calculated so that the City will fully recover all of its TIF
costs including City borrowing costs through the
projected property tax increments over a ten year period.
3) The City may use up to two (2) years of projected property
taxes from each Expansion TIF project to capitalize a
Development Fund that can provide assistance for
certain “soft” costs like machinery relocation costs,
employee training costs, site feasibility studies, etc.,
CITY OF JANESVILLE Policy No. 61A
Page 13 of 14
COUNCIL POLICY STATEMENT
Date Issued 6/13/1994
Revised 10/28/2003
General Subject: Administration Revised 11/14/2006
Revised 7/08/2013
Revised 11/11/2013
Revised 10/8/2018
Revised 07/11/2022
Revised 1/22/2024
Effective Date 01/22/2024
Specific Subject: Industrial Economic
Development
Cancellation Date _________
Supersedes No. ___________
which relate to development projects within the
Expansion TID. The TID fund may be used where an
existing industry within an Expansion TID undertakes a
development project that creates and/or retains jobs, but
does not create new taxable property value.
4) The City may also provide additional incentives for job
creation. The Job Creation Incentive will be based on two
years of additional projected property taxes created from
each Expansion TIF project; OR, 10% of the Annual
Living Wage Salary Index multiplied by the number of
new Living Wage Equivalents each project will create,
whichever is LESS. Living Wage Equivalent Jobs (LWE)
are considered jobs that pay a livable wage, as
established by the Living Wage Index based on a family
of 2 adults and 2 children.
For expansion projects that do not create any additional
property tax increment, the City may consider offering up
to 5% of the Living Wage Salary Index per job, so long as
the TID is able remain breakeven within its statutory life.
3. Real Estate Sales Commission Policy
a) The development of publicly owned property within the City of
Janesville is often the product of successful public-private
partnership. In order to strengthen this partnership the City
has developed an agreement, or memorandum of
CITY OF JANESVILLE Policy No. 61A
Page 14 of 14
COUNCIL POLICY STATEMENT
Date Issued 6/13/1994
Revised 10/28/2003
General Subject: Administration Revised 11/14/2006
Revised 7/08/2013
Revised 11/11/2013
Revised 10/8/2018
Revised 07/11/2022
Revised 1/22/2024
Effective Date 01/22/2024
Specific Subject: Industrial Economic
Development
Cancellation Date _________
Supersedes No. ___________
understanding (MOU), between the City of Janesville and
commercial real estate brokers to help incentivize their
interest in marketing and selling publically owned industrial
development land.
b) The terms and conditions outlined in the MOU are intended
to govern public owned land transactions between the City of
Janesville, as the seller, and the brokers in broker assisted
sales. The parcels covered by this MOU are zoned industrial
and intended for industrial and/or related commercial office
uses and are located within various existing and former City
of Janesville Tax Incremental Financing Districts.
c) Since the City of Janesville may choose to incentivize certain
projects through “below market” sales of publicly owned land,
this MOU will provide a commission, negotiated on a
transaction-by-transaction basis, for those brokers bringing
transactions to the City of Janesville’s attention which result
in successful closings, and for which the broker receiving the
commission is the designated real estate representative/agent
of the buyer in the transaction (Buyer’s Agent).It is the City of
Janesville’s intent to incentivize regional brokers to become
actively involved with the opportunities hereunder.
d) The current gross sales price per acre for the respective
parcels affected by this policy within the City’s active Tax
Incremental Districts are equivalent to current Market Rate
based on the City Assessor’s Office assessment models.