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CCR2016033-TIF9Amendment ATTACHMENT BCITY OF MUSKEGO, WI TAX INCREMENTAL DISTRICT NO. 9 BOUNDARY AMENDMENT NO. 1 TO THE PROJECT PLAN MARCH 2016 Prepared By The City of Muskego, Wisconsin Department of Community Development And Hutchinson, Shockey, Erley & Co. And von Briesen & Roper, s.c. AMENDMENT NO. 1 TO THE CITY OF MUSKEGO TAX INCREMENTAL DISTRICT NO. 9 AND THE RELATED PROJECT PLAN City of Muskego Tax Incremental District No. 9 (TID 9) and the supporting project plan (“Project Plan”) are hereby amended as follows: 1. The property shown on Exhibit 1 attached hereto is added to TID 9 the Project Plan (Prior adopted Project Plan found in Appendix A). This is part of Tax Key #2172030007 (.5 acres) added to the western border of District No. 9. 2. The property to be added is zoned B-2 Local Service Center District which conforms to the existing zoning and use of the property in TID 9. 3. The current value of the property to be added is $562,700. 4. The property is a current commercial entity known as Taco Bell. During the year 2015, Taco Bell added .5 acres to the property, which now makes the existing TID 9 boundary bisect the Taco Bell property. The current TID 9 boundary doesn’t follow existing property lines thus necessitating the boundary amendment herein. 5. The new District boundaries after the addition of the new parcels are identified on Exhibit 1 (Map) and Exhibit 2 (Legal Description). 6. There are no public improvements or parcel improvement costs associated with the addition of this portion of the parcel. 7. All other provisions of the original Project Plan, except as modified by this Amendment No. 1, continue to be appropriate for the District and remain in full force and effect. EXHIBIT 2 Legal Description All that part of the Northeast ¼, Southeast ¼, and the Southwest ¼ of Section 2, and the Northwest ¼ of Section 1, and the Southeast ¼ of Section 3, all in Town 5 North, Range 20 East, City of Muskego, Waukesha County, Wisconsin, bounded and described as follows: Commencing at the intersection of the West line of Parcel 1, of Certified Survey Map No. 8051, and the North line of Janesville Road (C.T.H. “L”) said point also being the point of beginning of lands to be described; thence Northerly along said West line 637.30 feet to the North line of said Parcel 1; thence Easterly along said North line and the North line of Certified Survey Map No. 4188, a distance of 292 feet more or less, to the Southwesterly right-of-way line of Moorland Road (C.T.H.”O”); thence Northwesterly along said right-of-way line 288 feet more or less, to the Northerly extended property line of Parcel 4, of Certified Survey Map No.9335; thence Northeasterly along said North line 389 feet more or less to an angle point; thence Northeasterly along the Northerly line of said Parcel 4, a distance of 67.14 feet, to a point on a curve; thence Southeasterly along the Northeast line of said Parcel 4 and along the arc of a curve 28.83 feet to the East line of said Parcel 4; thence Southerly along said East line 157.99 feet, to the Southerly line of said Parcel 4; thence Southwesterly along said South line, 154.20 feet to the Northeasterly right-of-way line of said Moorland Road, said line also being the Southwesterly line of Parcel 3, of said Certified Survey Map 9335; thence Southeasterly along said right-of way line 394.62 feet, to the South line of said Parcel 3; thence Easterly along said South line, 299.11 feet to the West line of Parcel 2, of said Certified Survey Map 9335; thence Southerly along said West line 135.20 feet to the North right-of-way line of said Janesville Road; thence Northeasterly along said right-of way line 519.75 feet to the Westerly line of Parcel 1 of said Certified Survey Map No. 9335; thence Northerly along said West line 338.38 feet, to a point on a curve; thence Northeasterly along the arc of a curve 21.21 feet, to the North line of said parcel 1; thence Easterly along said North line 95.11 feet to a point on a curve; thence Southeasterly along the arc of a curve 64.95 feet to the East line of said Parcel 1; thence Southerly along said East line 69.37 feet, to a point on a curve; thence Southerly along the arc of a curve 105.06 feet, to the North right-of-way line of said Janesville Road; thence Northeasterly along said right-of-way 1175.27 feet to a angle point in said right-of-way; thence Northeasterly along said right-of-way 331.00 feet to the Southwest corner of Lot 1, of Golden Country Estates Subdivision; thence Northerly along the West line of lots 1 and 2, of said Subdivision, 207.61 feet to an angle point; thence Northerly along the West line of Lots 2, 3, and 4 of said Subdivision, 337.38 feet to the South line of the Northwest ¼ , Section 2, said point also being the Northeast corner of Lot 4 in said Subdivision; thence Easterly 182.00 feet along said South line to the Westerly right-of-way line of Woodland Place; thence Northerly along said Right-of-way line 59 feet more or less to the Southerly extended property line of Lot 2, Certified Survey Map No. 4610; thence Easterly along said South line 262 feet more or less to the Southeast line of said Lot 2; thence Northeasterly along said Southeast line 120.14 feet to the Northeasterly line of said Lot 2; thence Northwesterly along said Northeasterly line 121.61 feet to the East line of Lot 1, said Certified Survey Map; thence Northerly along said East line 70.00 feet to the Northerly line of said Lot 1; thence Northwesterly along said Northerly line 230.00 feet to the East line of the Northwest ¼ of said Section 2, said line also being the East line of Glenbrook Subdivision; thence Northerly along said East line 485.00 feet; thence Easterly 120.00 feet; thence Southeasterly 560.00 feet to the East line of Lot 2, Certified Survey Map No. 4785; thence Southerly along the East line of said Lot 2, and the East line of Parcel 1 of Certified Survey Map No. 2962, a distance of 311.91 feet to the North line of Parcel 2, of said Certified Survey Map No. 2962; thence Northeasterly along the North line of said Parcel 2, 374 feet more or less to the East right-of-way line of Tess Corners Drive; thence Northwesterly along said East right-of-way line 316 feet more or less to the Southerly line of Parcel 2, Certified Survey Map No. 3480; thence along the South line of said Parcel 576.38 feet, to the West line of Lot 1, Certified Survey Map No. 1077; thence Northerly along the West line of said Lot 1 a distance of 356 feet more or less to the South line of Parcel 2, Certified Survey Map No. 2657; thence Easterly along said South line 213.66 feet; thence Northerly 1070 feet more or less to the North line of the Northeast ¼ of said Section 2, said North line also being the centerline of College Avenue and the North line of Muskego City Limits; thence Easterly along said North line 990.66 feet to the Northeast corner of said Northeast ¼; thence Easterly along the North line of the Northwest ¼ of Section 1, and said City limits line, 2666 feet more or less to the Northeast corner of said Northwest ¼; thence Southerly along the East line of the said Northwest ¼, 89 feet more or less to the South right of way line of Janesville Road (C.T.H. “L”); thence Southwesterly along said right of way line 1232 feet more or less, to the Northwest corner of Lot 14, Block 17, Fountainwood Addition No. 3; thence Southerly along the West line of Lots 14, 15, 16, 17, and 18, Block 17 of said Subdivision 558.05 feet to the North line of Lot 19, Block 17 of said Subdivision; thence Southwesterly along said North line 120.00 feet, to the East line of Lot 20, Block 17, of said Subdivision; thence Northerly along the East line of said lots 20, 21, 22, 23, Block 17 of said Subdivision 558.05 feet, to the said South right-of-way line; thence Southwesterly along said South line 1525 feet more or less, to the West line of the Northwest ¼, of said Section 1, said line also being the West line of said Fountainwood Addition No. 3 Subdivision; thence Southerly along said West line 905 feet more or less, to the Southwest corner of said Northwest ¼ Section; thence Southerly along the West line of the Southwest ¼ of said Section 1, 431.70 feet, to the Southeast corner of lands designated by Tax key No. 2168-999; thence Westerly along said lands 906 feet more or less, to the East right-of-way line of Gaulke Drive: thence Northwesterly along said right-of-way 220 feet more or less, to the North right-of-way line of Gaulke Drive; thence Westerly along said right-of-way line 389 feet more or less to the East ultimate right-of- way line of Tess Corners Drive; thence Southeasterly along said right-of-way line 286 feet more or less, to the Northerly property line extended of parcel with Tax-key No. 2168-980; thence Southwesterly along said Northerly line 359 feet more or less to the Easterly line of Sandy Knoll Subdivision; thence Northwesterly along said East line 294 feet more or less to the Northerly line of said Sandy Knoll Subdivision; thence Southwesterly along the North line of said Subdivision 602.98 feet to the Northwest corner of said Subdivision; thence Southeasterly along the West line of said Subdivision 351.54 feet; thence Southerly along the west line of said Subdivision 334.97 feet to North line of Lot 6, in Belmont Greens Subdivision; thence Westerly along said North line 508 feet more or less, to the East right-of-way line of Durham Drive; thence Westerly 101 feet more or less to the West right-of-way line of Durham Drive, said point also being the Southeast corner of Lot 18, Block 1, Durham Meadows Subdivision; thence Northerly along said right-of- way line 125.00 feet, to the Northeast corner of Said Lot 18, thence Westerly 16 feet more or less to the West right-of-way line of said Drive, said point also being the Southeast corner of lands designated by Tax key No. 2167-998-001; thence Northerly along said right-of-way line 120 feet more or less to the Northeast corner of said lands; thence Westerly 164 feet more or less to the Northwest corner of said lands; thence Southerly 120 feet to the North line of Durham Meadows Subdivision; thence Westerly along said North line 331.55 feet, to the Northwest line of said Subdivision; thence Southwesterly along said Northwest line 572.15 feet to the East line of Lot 5, Certified Survey Map No. 5841, said point also being the Northwest corner of Lot 8, Block 1, of said Subdivision; thence Southeast along said East line 158.52 feet, to the North right-of-way line of Cornell Circle; thence Southwesterly 261.33 along the arc of a circle whose center is to the Southeast, whose radius is 681.56 feet, whose chord bears S29°55’26”W with a chord length of 259.72 feet, to the South right-of-way line of a 60.00 feet wide unimproved street; thence Northwesterly along said right-of-way line 303.83 feet; thence continuing Northwesterly 77.82 feet to the Northerly line of Lot 1 Certified Survey Map No. 9462, said line also being the South right-of –way line of a 60.00 foot wide unimproved street, to a point on a curve; thence Southwesterly along said right-of-way line, and along the arc of a curve 183.62 feet, thence Southwesterly along said right of way 729.93 feet to the East right-of-way line of Moorland Road a 120 foot wide street; thence Continuing Southwesterly 120.13 feet to the West right-of-way line of said Moorland Road, said point also being the Northeast corner of Lot 3, of Certified Survey Map No. 9463; thence Continuing Southwesterly 393.12 feet along the North line of said Lot 3, said line also being the South right-of-way line of a 60 foot wide unimproved street, to the West line of the Southwest ¼ of said Section 2; thence Northerly along said West line 65.85 feet to the Northerly Princeton Drive right of way line; thence Northeasterly along said Northerly right of way line 24.21 feet to the Southwest corner of Lot 2 Certified Survey Map No. 11259; thence Northwesterly along the West line of said Lot 2 a distance of 329.51 feet, 850.54 feet to the Southerly right-of-way of said Janesville Road (C.T.H. “L”); thence Southwesterly along said right-of-way 344 454 feet more or less to the West extended property line of Parcel 1, of said Certified Survey Map No. 8051; thence Northerly 141 feet more or less to the intersection the West line of said Parcel 1, and the North right-of–way line of said Janesville Road, said point also being the point of beginning. TAGLaw International Lawyers William E. Taibl Direct Telephone 414-287-1213 wtaibl@vonbriesen.com April ___, 2016 Mr. Jeff Muenkel City of Muskego W182 S8200 Racine Avenue Muskego, WI 53150-0749 Re: Amendment No. 1 to the Project Plan for Tax Incremental District No. 9 for the City of Muskego, Wisconsin Dear Mr. Muenkel: We have acted as attorneys for the City of Muskego in connection with the proposed boundary amendment of Tax Incremental District No. 9 of the City of Muskego (“District”) and the review of Amendment No. 1 to the Project Plan for the District dated April ___, 2016 (“Project Plan”). In connection with Amendment No. 1 of the Project Plan we have reviewed the Project Plan, Amendment No. 1 to the Project Plan and such other documents as we deem necessary to enable us to give this opinion. Based upon our review, and reliance on the accuracy of the statements set forth in Amendment No. 1 of the Project Plan, it is our opinion that Amendment No. 1 to the Project Plan is complete and complies with Section 66.1105 of the Wisconsin Statutes. Very truly yours, von BRIESEN & ROPER, s.c. William E. Taibl WET:jrp 26330713_3.DOC APPENDIX A PRIOR ADOPTED PROJECT PLAN Tax Increment Financing Project Plan for the Establishment of Tax Incremental Financing District No. 9 Within the City of Muskego, WISCONSIN Public Hearing Held: January 14, 2003 Plan Commission Adopted: January 14, 2003 City Council Adopted: February 25, 2003 Joint Review Board Adopted: March 10, 2003 Prepared by: EHLERS & ASSOCIATES, INC. 375 Bishops Way, Suite 225, Brookfield, WI 53005-6202 CITY OF MUSKEGO ELECTED OFFICIALS 2002-2003 Mayor Honorable Mark A. Slocomb mslocomb@ci.muskego.wi.us Common Council Council President Rick Petfalski, District 5 mslocomb@ci.muskego.wi.us Alderman Patrick Patterson, District 1 ppatterson@ci.muskego.wi.us Alderman Butch Le Doux, District 2 bledoux@ci.muskego.wi.us Alderman Chuck Damaske, District 3 cdamaske@ci.muskego.wi.us Alderman Nancy Salentine, District 4 nsalentine@ci.muskego.wi.us Alderman Eric Schroeder, District 6 eschroeder@ci.muskego.wi.us Alderman Eileen Madden, District 7 emadden@ci.muskego.wi.us PLAN COMMISSION 2002-2003 Mayor Mark Slocomb, Chairman Alderman Butch LeDoux Harry Brodel Jerald Hulbert Michael Michalski Neome Schaumberg Russ Stinebaugh JOINT REVIEW BOARD Dawn Gunderson, City of Muskego Norman Cummings, Waukesha County Representative Carrie Tessmann, Waukesha Area Technical College George Haynes, Muskego-Norway School District Marvin Pinkowski, Public Member ii TABLE OF CONTENTS STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PUBLIC WORKS .......... 1 ECONOMIC FEASIBILITY STUDY............................................................................................ 3 EQUALIZED VALUATION PROJECTION.................................................................................. 4 PROJECTED REVENUE........................................................................................................... 5 EXHIBIT 1.................................................................................................................................. 6 CASH FLOW ............................................................................................................................. 7 EXHIBIT 2.................................................................................................................................. 8 DETAILED LIST OF PROJECT COSTS .................................................................................... 9 PROPOSED TIF PROJECT ESTIMATES.................................................................................. 9 A DESCRIPTION OF THE METHODS OF FINANCING AND THE TIME WHEN SUCH COSTS OR MONETARY OBLIGATIONS RELATED THERETO ARE TO BE INCURRED ........10 PROPOSED TIF PROJECT BORROWINGS............................................................................11 MAP SHOWING EXISTING USES AND CONDITIONS............................................................12 MAP SHOWING PROPOSED PROJECTS AND USES............................................................14 PROPOSED CHANGES IN ZONING ORDINANCES ...............................................................16 PROPOSED CHANGES IN MASTER PLAN, BUILDING CODES AND CITY RDINANCES .....16 A LIST OF ESTIMATED NON-PROJECT COSTS....................................................................16 RELOCATION...........................................................................................................................16 ORDERLY DEVELOPMENT OF THE CITY..............................................................................16 PARCEL LIST...........................................................................................................................17 OPINION OF ATTORNEY FOR THE CITY ADVISING WHETHER THE PLAN IS COMPLETE AND COMPLIES WITH WISCONSIN STATUTES, SECTION 66.1105.........................19 1 STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PUBLIC WORKS Tax Incremental District No. 9, City of Muskego (the "District") is being created under authority of Wisconsin Statute Section 66.1105 primarily to assist expansion of the tax base by providing public improvements necessary to promote development and redevelopment and assist in blight elimination in the City of Muskego Community Development Authority Redevelopment District No. 1. The inducement is to install public utilities including water facilities that will allow development to take place. TID No. 9 is located in the northeastern portion of the City, along Janesville Road. The City of Muskego intends that tax incremental financing (TIF) will be used to assure that related private development locates in this District. The goal is to expand the tax base and opportunities for redevelopment within the City. The following is a list of public works projects that the City either directly or through the Community Development Authority expects to implement in conjunction with this District. Any costs directly or indirectly related to the public works are considered "project costs" and eligible to be paid with tax increment revenues of the tax incremental district. ¾ WATER SYSTEM IMPROVEMENTS. There are no public water facilities available to service the area. It will be necessary to provide water mains to distribute the water to individual properties. The City intends to install this main prior to the reconstruction of Janesville Road (CTH L) by Waukesha County. ¾ ACQUISITION/DEMOLITION. In order to eliminate blight conditions and promote redevelopment, it may be necessary for the City to acquire and demolish blighted properties or to acquire and consolidate parcels in order to create parcels of a marketable size within the District. ¾ STORM SEWER SYSTEM. Development of the area will cause storm water run off. To avoid problems in the District and adjacent areas, a storm water collection, detention, and retention system will be installed. ¾ UNDERGROUND UTILITY WIRES. In order to enhance the appearance of the District and to attract desired development, it is necessary to convert overhead utility wires to underground services, including costs to bring such services to code. ¾ LANDSCAPING. The City will provide landscaping such as berms, street trees, lighting and other facilities to attract high quality development to the area. ¾ DEVELOPMENT INCENTIVES. The City may enter into agreements with property owners or developers for the purpose of sharing costs to encourage the desired kind of improvements and assure tax base is generated sufficient to recover project costs. ¾ ADMINISTRATIVE COSTS. These include but are not limited to a portion of the salaries of the City Clerk, public works employees and others involved with the projects throughout the project plan implementation. Audit expenses and any expenses associated with dissolving the District are also considered eligible costs. 2 ¾ ORGANIZATIONAL COSTS. These costs include but are not limited to fees of the financial consultant, attorney, engineers, surveyors, map makers and other contracted services. ¾ RELOCATION COSTS. In the event any property is acquired for the projects, expenses including the cost of a relocation plan, director, staff, publications, appraisals, land and property acquisition costs and relocation benefits as required by Wisconsin Statutes Sections 32.19 and 32.195 are considered eligible project costs. ¾ ENVIRONMENTAL AUDITS AND REMEDIATION. There are no environmental problems known to exist within the proposed district. If, however, it becomes necessary to evaluate properties, the costs related to all environmental audits and remediation will be considered eligible project costs. ¾ FINANCE COSTS. Interest, financing fees, redemption premiums, and other financing fees are included as project costs. With all projects the costs of engineering, design, survey, inspection, materials, construction, restoring property to its original condition, apparatus necessary for the 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. In the event any of the public works projects are not reimbursable out of the special TIF fund under Wisconsin Statute Section 66.1105, in the written opinion of nationally recognized bond counsel or a court of record so rules in a final order, then such project or projects shall be deleted here from and the remainder of the projects hereunder shall be deemed the entirety of the projects for purposes of this project plan. The City reserves the right to implement only those projects that remain viable as the project plan period proceeds. Project costs are any expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by the City and outlined in this plan. Project costs will be diminished by any income, special assessments or other revenues, including user fees or charges. To the extent the costs benefit the municipality outside the District, a proportionate share of the cost is not a project cost. Costs identified in this plan are preliminary estimates made prior to design considerations and are subject to change after planning is completed. Proration of costs in the plan are also estimates and subject to change based upon implementation, future assessment policies and user fee adjustments. 3 ECONOMIC FEASIBILITY STUDY The City of Muskego, located in the southern portion of Waukesha County near Interstate 43, is a community of approximately 21,700 in population. The charts and exhibits on the following pages demonstrate that the City will be able to obtain the funds necessary to implement the projects in this plan and that the revenue from the District will be sufficient to pay for them. Charts I and II respectively on the following page, project the City's equalized value and show the full faith and credit borrowing capacity of the City. Equalized valuation projections were made using two methods. The first projects the future valuation of the City using the average annual percentage of valuation growth experienced between 1998 and 2002. The second method projects the future valuation based upon the average annual increment between 1998 and 2002. This method is identified as the straight line method. Chart II projects the general obligation borrowing capacity of the City taking into account the straight line valuation projection and existing debt of the City. The chart demonstrates that the City is likely to have a general obligation capacity of $104,864,105 during the seven year implementation period of the District. In addition to general obligation bonds, the City can issue mortgage revenue bonds to be repaid from revenues of the sewer and/or water systems, including revenues paid by the City that represent service of the system to the City. There is no statutory nor constitutional limitation on the amount of revenue bonds that can be issued, however, water rates are controlled by the Wisconsin Public Service Commission and the City must demonstrate to bond underwriters its ability to repay revenue debt with the assigned rates. It is anticipated that special assessments may be levied to benefited properties to pay part of the water extension costs. The City can issue special assessment B bonds pledging revenues from special assessment installments to the extent assessment payments are outstanding. These bonds are not counted against he City's constitutional debt limit. The City also has the authority to issue Lease Revenue Bonds through a CDA should this financing vehicle be useful in accomplishing the objectives of the Plan. In addition to the issuance of General Obligation Bonds by the City, a CDA could issue obligations secured by lease payments to be made by the City. Such obligations would not be counted against the City’s general obligation debt limit Based on the economic characteristics and the financing resources of the City, all projects outlined in this project plan can be financed and are feasible. CHART I |----PERCENTAGE METHOD----| |--STRAIGHT LINE METHOD--| HISTORICAL DATA 1998 1,227,121,100 1998 1,227,121,100 1999 1,316,793,100 1999 1,316,793,100 2000 1,407,733,800 2000 1,407,733,800 2001 1,534,663,400 2001 1,534,663,400 2002 1,651,185,500 8.64% 2002 1,651,185,500 8.64% Straight Line Method Value Increment $106,016,100 PROJECTED VALUATIONS 2003 1,793,838,289 8.64% 2003 1,757,201,600 6.42% 2004 1,948,815,446 8.64% 2004 1,863,217,700 6.03% 2005 2,117,181,725 8.64% 2005 1,969,233,800 5.69% 2006 2,300,093,867 8.64% 2006 2,075,249,900 5.38% 2007 2,498,808,551 8.64% 2007 2,181,266,000 5.11% 2008 2,714,691,023 8.64% 2008 2,287,282,100 4.86% 2009 2,949,224,481 8.64% 2009 2,393,298,200 4.64% 2010 3,204,020,261 8.64% 2010 2,499,314,300 4.43% 2011 3,480,828,909 8.64% 2011 2,605,330,400 4.24% 5 Year Trend CHART II NET BUDGET EQUALIZED GROSS DEBT DEBT BORROWING YEAR VALUE LIMIT BALANCE CAPACITY 2003 1,651,185,500 82,559,275 18,260,693 64,298,582 2004 1,757,201,600 87,860,080 17,103,179 70,756,901 2005 1,863,217,700 93,160,885 15,634,452 77,526,433 2006 1,969,233,800 98,461,690 14,199,461 84,262,229 2007 2,075,249,900 103,762,495 12,698,154 91,064,341 2008 2,181,266,000 109,063,300 11,125,474 97,937,826 2009 2,287,282,100 114,364,105 9,500,000 104,864,105 2010 2,393,298,200 119,664,910 7,925,000 111,739,910 2011 2,499,314,300 124,965,715 6,375,000 118,590,715 2012 2,605,330,400 130,266,520 5,100,000 125,166,520 2013 2,711,346,500 135,567,325 4,300,000 131,267,325 2014 2,817,362,600 140,868,130 3,450,000 137,418,130 2015 2,923,378,700 146,168,935 2,575,000 143,593,935 2016 3,029,394,800 151,469,740 1,650,000 149,819,740 2017 3,135,410,900 156,770,545 700,000 156,070,545 2018 3,241,427,000 162,071,350 450,000 161,621,350 2019 3,347,443,100 167,372,155 200,000 167,172,155 2020 3,453,459,200 172,672,960 172,672,960 2021 3,559,475,300 177,973,765 177,973,765 5 PROJECTED REVENUE Exhibit 1 (page 7) estimates the TIF revenues that will be available to retire the debt incurred to finance project costs. Exhibit 2 (page 9) summarizes the District's cash position throughout its potential life. Exhibit I projects revenues sufficient to retire the debt proposed to finance all projects of the District. The pro forma is based on the following assumptions: ¾ The base value of the District is $19,707,800 ¾ Incremental tax base will be generated as of January 1 each year as follows: 2003 300,400 2004 6,875,000 2005 1,375,000 The new construction estimates are based on typical commercial buildings constructed on the vacant parcels within TID No. 9. The equalized tax rate in 2004 is projected to be $20.34 per thousand (the City’s current equalized rate). It is projected to remain constant throughout the pro forma. Valuations are projected to increase 1% each year because of inflation. City of Muskego TID #9 Tax Increment Forecast Base Value 19,707,800 Inflation Factor 1.00% Construction Valuation Revenue Inflation Value Valuation Tax Tax Year Year Year Increment Added Increment Rate Increment 1 2003 2004 2005 197,078 300,400 497,478 20.34 10,121 2 2004 2005 2006 202,053 6,875,000 7,574,531 20.34 154,101 3 2005 2006 2007 272,823 1,375,000 9,222,354 20.34 187,625 4 2006 2007 2008 289,302 9,511,656 20.34 193,511 5 2007 2008 2009 292,195 9,803,850 20.34 199,455 6 2008 2009 2010 295,117 10,098,967 20.34 205,460 7 2009 2010 2011 298,068 10,397,034 20.34 211,524 8 2010 2011 2012 301,048 10,698,083 20.34 217,648 9 2011 2012 2013 304,059 11,002,142 20.34 223,834 10 2012 2013 2014 307,099 11,309,241 20.34 230,082 11 2013 2014 2015 310,170 11,619,411 20.34 236,392 12 2014 2015 2016 313,272 11,932,683 20.34 242,766 13 2015 2016 2017 316,405 12,249,088 20.34 249,203 14 2016 2017 2018 319,569 12,568,657 20.34 255,704 15 2017 2018 2019 322,765 12,891,422 20.34 262,271 16 2018 2019 2020 325,992 13,217,414 20.34 268,903 17 2019 2020 2021 329,252 13,546,666 20.34 275,602 18 2020 2021 2022 332,545 13,879,211 20.34 282,367 19 2021 2022 2023 335,870 14,215,081 20.34 289,200 20 2022 2023 2024 339,229 14,554,310 20.34 296,102 21 2023 2024 2025 342,621 14,896,931 20.34 303,072 22 2024 2025 2026 346,047 15,242,978 20.34 310,112 23 2025 2026 2027 349,508 15,592,486 20.34 317,223 Totals 8,550,400 5,422,279 Present value at 5.5% 2,772,642 7 CASH FLOW The following pro forma (Exhibit 2) summarizes the District's cash position throughout its potential life. It shows revenues, expenses and balances by year. Revenues include tax increments from Exhibit 1, capitalized interest, and interest earned investing year-end balances. Expenditures represent payments for contract agreements with developers, and principal and interest payments on this District's share of debt issued to finance projects listed in the plan. The tentative proposed issues are identified as follows: Issue No. Year Description Amount 1 2003 CDA Bonds $1,850,000 Revenues anticipated will be sufficient to meet all obligations in a timely manner and produce an accumulated surplus by the year 2019. City of Muskego TID #9 Financing Plan Balance Projected Capitalized Interest Total Proposed Debt Principal Year TIF Revs Interest Earnings Revenues Annual Cumm Outstanding Principal Interest Total Balance Balance 2003 305,250 305,250 50,875 50,875 254,375 254,375 1,850,000 2004 10,175 10,175 101,750 101,750 (91,575) 162,800 1,850,000 2005 10,121 6,512 16,633 101,750 101,750 (85,117) 77,683 1,850,000 2006 154,101 3,107 157,208 30,000 101,750 131,750 25,458 103,141 1,820,000 2007 187,625 4,126 191,751 75,000 100,100 175,100 16,651 119,792 1,745,000 2008 193,511 4,792 198,303 85,000 95,975 180,975 17,328 137,120 1,660,000 2009 199,455 5,485 204,940 100,000 91,300 191,300 13,640 150,760 1,560,000 2010 205,460 6,030 211,490 100,000 85,800 185,800 25,690 176,450 1,460,000 2011 211,524 7,058 218,582 110,000 80,300 190,300 28,282 204,731 1,350,000 2012 217,648 8,189 225,838 120,000 74,250 194,250 31,588 236,319 1,230,000 2013 223,834 9,453 233,287 140,000 67,650 207,650 25,637 261,956 1,090,000 2014 230,082 10,478 240,560 150,000 59,950 209,950 30,610 292,566 940,000 2015 236,392 11,703 248,095 170,000 51,700 221,700 26,395 318,961 770,000 2016 242,766 12,758 255,524 180,000 42,350 222,350 33,174 352,136 590,000 2017 249,203 14,085 263,288 190,000 32,450 222,450 40,838 392,974 400,000 2018 255,704 15,719 271,423 200,000 22,000 222,000 49,423 442,397 200,000 2019 262,271 17,696 279,967 200,000 11,000 211,000 68,967 511,364 0 2020 268,903 20,455 289,358 0 0 289,358 800,722 0 2021 275,602 32,029 307,630 000 307,630 1,108,352 0 2022 282,367 44,334 326,701 000 326,701 1,435,053 0 2023 289,200 57,402 346,602 0 0 346,602 1,781,656 0 2024 296,102 71,266 367,368 0 0 367,368 2,149,024 0 2025 303,072 85,961 389,033 000 389,033 2,538,057 0 2026 310,112 101,522 411,635 411,635 2,949,692 0 2027 317,223 117,988 435,211 435,211 3,384,902 0 TOTAL 5,422,279 305,250 678,323 6,405,852 1,850,000 1,170,950 3,020,950 3,384,902 9 DETAILED LIST OF PROJECT COSTS This project plan is not meant to be a budget nor an appropriation of funds for specific projects, but a framework with which to manage projects. All costs included in the plan are estimates based on best information available. The City retains the right to delete projects or change the scope and/or timing of projects implemented as they are individually authorized by the City Council, without amending the plan. The total project costs detailed herein will not be exceeded without a Project Plan Amendment approved by the Joint Review Board, All costs are based on 2002 prices and are preliminary estimates. The City reserves the right to increase these costs to reflect inflationary increases and other uncontrollable circumstances between 2002 and the time of construction. The City also reserves the right to increase certain project costs to the extent others are reduced or not implemented, without amending the plan. The tax increment allocation is preliminary and is subject to adjustment based upon the implementation of the plan. PROPOSED TIF PROJECT ESTIMATES Water Main Extension $1,000,000 Underground Utility Wires $385,000 Property Acquisition Stormwater Management Pedestrian Paths / Sidewalks Landscaping Contingency Organization and Administration $138,500 Project Plan Tax Incremental District No. 9 City of Muskego, Wisconsin 10 A DESCRIPTION OF THE METHODS OF FINANCING AND THE TIME WHEN SUCH COSTS OR MONETARY OBLIGATIONS RELATED THERETO ARE TO BE INCURRED PLAN IMPLEMENTATION Projects identified will provide the anticipated services to the area. It is anticipated these improvements may be made over a seven year period. A reasonable and orderly sequence is outlined on the following page. However, public debt and expenditures should be made at the pace private development occurs to assure increment is sufficient to cover expenses. The order in which public improvements are made should be adjusted in accordance with development and execution of developer agreements. The City reserves the right to alter the implementation of this plan to accomplish this objective. Interest rates projected are based on current market conditions. Municipal interest rates are subject to constantly changing market conditions. In addition, other factors such as the loss of tax-exempt status of municipal bonds or broadening the purpose of future tax exempt bonds would affect market conditions. Actual interest expense will be determined once the methods of financing have been approved and securities issued. If financing as outlined in this plan proves unworkable, the City reserves the right to use alternate financing solutions for the projects as they are implemented. PROPOSED TIF PROJECT BORROWINGS Amount Water main extension 1,000,000 Underground Utility Wires 385,000 Contingency 138,500 Subtotal 1,523,500 Plus: Maximum Discount 23,125 Capitalized Interest 305,250 Finance and Legal Fees 20,000 Total Needed to Finance 1,871,875 Less: Funds on Hand 0 Interest Earnings (21,875) Total Financing 1,850,000 Project Plan Tax Incremental District No. 9 City of Muskego, Wisconsin 11 PROPOSED TIF PROJECT BORROWINGS CDA Bonds Issue No. 1 Proposed Maturity Schedule $1,850,000 The 2003 projects are anticipated to be financed with General Obligation Bonds to be issued under authority of Wisconsin Statutes Chapter 67. The interest rate used for this is 5.5%. YEAR PRINCIPAL INTEREST TOTAL 2003 50,875 50,850 2004 101,750 101,750 2005 101,750 101,750 2006 30,000 101,750 131,750 2007 75,000 100,100 175,100 2008 85,000 95,975 180,975 2009 100,000 91,300 191,300 2010 100,000 85,800 185,800 2011 110,000 80,300 190,300 2012 120,000 74,250 194,250 2013 140,000 67,650 207,650 2014 150,000 59,950 209,950 2015 170,000 51,700 221,700 2016 180,000 42,350 222,350 2017 190,000 32,450 222,450 2018 200,000 22,000 222,000 2019 200,000 11,000 211,000 TOTAL 1,850,000 C T H "L " HIDD EN CREEK DARTMOUTH GOLDEN D R . R O A D STREET CORNELL WE S TCOT T CIRCLE PUBLIC K O S O CIRCLE WOODLAND LAWND ALE PL A C E GL E N B R O O K SPRI NG B ROOKSIDE C OUN T R Y G O L D E N C T. D R . PLACE GARDEN DR I VE LA N E DR I V E TERRACE G A U L K E DOVER LN. CATALINA B E LMO NT C O U R T CATALINA DR. DURHAM BRENTWOOD D R . DR. S A N D Y C O U R T CORN ELL K N O L L DRIVE D R. DRIV E D R I V E TESS D R I V E COLLE GE C O R N E R S T E S S GAULKE COURT C T . SAYROYAN DU N S T A N CO U R T B R I S T L E C O N E CORNERS DR. S H E R W O O D C I R C L E BEDFORD SHERWOOD CLARENDON PLACE PARK H A L E P A R K B R I S T L E C O N E HALE CIR. C T . C O U R T SAY R O Y AN W A Y H E M M I N G HARD WICK F L E E T W O O D CIRCLE PLACE S H E R W O O D C I R C L E CONR AD ROAD CT F E N NIM O R E WINDSOR F E N N I M O R E CT. FE N N I M O R E LA N E L A N E ROAD R O A D CTH "HH" S A Y R O Y A N C I R . M O O R L A N D R O A D R O S M O O R L A N D E X T E N S I O N KIPLING DRIVE HALE PARK DR Map 1: Tax Increment District 9 Boundaries Legend TID Boundary Parcels Right-of-Way 0 1,250 2,500625 Feet ­ Area of Interest RE S T F U L L C T H "L " HIDDEN CREEK W O O D S D R I V E PILGRIM D R I V E COURT S E T T L E R SETTLER IN D I A N WAY DARTMOUTH GOLDEN D R . R O A D STREET CORNELL WESTCOTT CIRCLE PUBLIC K O SO CIRCLE WOODLAND LAWNDALE PL A C E GL E N B R O O K SPRING BROOKSIDE CO UNTRY G O L D E N C T. D R . PLACE GARDEN DRIVE LA N E DR I V E TERRACE G A U L K E DOVER LN. CATALINA BELMONT C O U R T CATALINA DR. DURHAM BRENTWOOD D R. DR. S A N D Y C O U R T CORNELL K N O L L DRIVE DR. DRIVE D R I V E TESS D R I V E COLLEGE C O R N E R S T E S S GAULKE COURT COURTLAND W AY C T . FA OXRD. C T. SAYRO YAN DU N S T A N CO U R T B R I S T L E C O N E CORNERS DR. S H E R W O O D C I R C L E BEDFORD SHE RW OOD CLARENDON PLACE PARK H A L E P A R K B R I S T L E C O N E HALE CIR. C T . C O U R T SAYROYAN W AY H E M M I N G HARDWICK FLEE TWOOD CIR CLE PLACE S H E R W O O D C I R C L E CONRAD ROAD CT F E N NIM O R E WINDSOR F E N N I M O R E CT. FE N N I M O R E LA N E L A N E ROAD R O A D CTH "HH" S A Y R O Y A N C I R . M A R T I N D R WESTFIELD WAY M A R T I N C T QUIETW OOD D R M O O R L A N D R O A D R O SE W O O D M O O R L A N D E X T E N S I O N KIPLING DRIVE HALE PARK DR C A N D L E W O O D L N W O O D D R APPLE WOO D LN KATHRYN C H E RR Y Map 3: Existing Land Use 0 1,250 2,500625 Feet Legend TID Boundary Right-of-Way Parcels Land Use Single Family Residential Retail and Service Recreation - Public Recreation - Private Manufacturing Multi-Family Residential Landfill and Extractive Operations Government, Institution, and Utility Agricultural and Open Space ­ C T H "L " H IDD EN CREE K DARTMOUTH GOLDEN D R . R O A D STREET CORNELL WE STC O TT CIRCLE PUBLIC K O S O CIRCLE WOODLAND LAWNDALE PL A C E GL E N B R O O K SPRING BROOKSIDE C OU NT R Y G O L D E N C T. D R . PLACE GARDEN DR IVE LA N E DR I V E TERRACE G A U L K E DOVER LN. CATALINA B E LMON T C O U R T CATALINA DR. DURHAM BRENTWOOD D R . DR. S A N D Y C O U R T CORN ELL K N O L L DRIVE DR. D R IVE D R I V E TESS D R I V E COLLEGE C O R N E R S T E S S GAULKE COURT C T . SAYROYAN DU N S T A N CO U R T B R I S T L E C O N E CORNERS DR. S H E R W O O D C I R C L E BEDFORD SHERWOOD CLARENDON PLACE PARK H A L E P A R K B R I S T L E C O N E HALE CIR. C T . C O U R T S A YROY A N W A Y H E M M I N G HAR DW ICK FL EE T W O O D C IR CLE PLACE S H E R W O O D C I R C L E CONRAD ROAD CT F E N NIM O R E WINDSOR F E N N I M O R E CT. FE N N I M O R E LA N E L A N E ROAD R O A D CTH "HH" S A Y R O Y A N C I R . M O O R L A N D R O A D R O S M O O R L A N D E X T E N S I O N KIPLING DRIVE HALE PARK DR Map 5: Proposed Utility Locations 0 1,100 2,200550 Feet ­Right-of-Way Parcels Water Main Proposed Water Main Existing Sanitary Main Existing Legend TID Boundary RE S T F U L L C T H "L " HIDDEN CREEK W O O D S D R I V E PILGRIM D R I V E COURT S E T T L E R SETTLER IN D I A N WAY DARTMOUTH GOLDEN D R . R O A D STREET CORNELL WESTCOTT CIRCLE PUBLIC K O SO CIRCLE WOODLAND LAWNDALE PL A C E GL E N B R O O K SPRING BROOKSIDE CO UNTRY G O L D E N C T. D R . PLACE GARDEN DRIVE LA N E DR I V E TERRACE G A U L K E DOVER LN. CATALINA BELMONT C O U R T CATALINA DR. DURHAM BRENTWOOD D R. DR. S A N D Y C O U R T CORNELL K N O L L DRIVE DR. DRIVE D R I V E TESS D R I V E COLLEGE C O R N E R S T E S S GAULKE COURT COURTLAND W AY C T . FA OXRD. C T. SAYRO YAN DU N S T A N CO U R T B R I S T L E C O N E CORNERS DR. S H E R W O O D C I R C L E BEDFORD SHE RW OOD CLARENDON PLACE PARK H A L E P A R K B R I S T L E C O N E HALE CIR. C T . C O U R T SAYROYAN W AY H E M M I N G HARDWICK FLEE TWOOD CIR CLE PLACE S H E R W O O D C I R C L E CONRAD ROAD CT F E N NIM O R E WINDSOR F E N N I M O R E CT. FE N N I M O R E LA N E L A N E ROAD R O A D CTH "HH" S A Y R O Y A N C I R . M A R T I N D R WESTFIELD WAY M A R T I N C T QUIETW OOD D R M O O R L A N D R O A D R O SE W O O D M O O R L A N D E X T E N S I O N KIPLING DRIVE HALE PARK DR C A N D L E W O O D L N W O O D D R APPLE WOO D LN KATHRYN C H E RR Y Map 6: 2010 Land Use 0 1,250 2,500625 Feet ­ Legend Right-of-Way Parcels 2010 Land Use Recreation - Private Recreation - Public Residential - Low Density Residential - Medium Density Residential - Medium Density Residential - High Density Commercial Commercial Business Park Industrial Govt. & Institution TID Boundary ­ PROPOSED CHANGES IN ZONING ORDINANCES The Planning Department staff is currently working with the Mayors Task Force on Economic Development to draft zoning district regulations which reflect the unique character of the Tess Corners neighborhood. This new District is preliminarily referred to as the HC-1 Tess Corners Historic Crossroads District. It is anticipated that the proposed district regulations and map amendments will be presented to the Plan Commission and Common Council in early 2003. In addition, it is anticipated that substantial modifications to Zoning Districts and Zoning Ordinance text will occur in conjunction with the City-wide repeal and recreation of the Municipal Zoning Code. The Zoning Code project is being researched concurrent with the drafting of this Plan; its implementation is anticipated to occur in late 2004 or early 2005. PROPOSED CHANGES IN MASTER PLAN, BUILDING CODES AND CITY ORDINANCES It is expected that this project plan will be complementary to the City's master plan. There are no proposed changes to the City’s building codes or other City ordinances for the implementation of this project plan. A LIST OF ESTIMATED NON-PROJECT COSTS Anticipated construction by private parties: $3,050,400 RELOCATION It is not anticipated there will be a need to relocate any persons or businesses in conjunction with this project plan. In the event relocation becomes necessary at some time during the implementation period, the City will take the following steps and actions. Before negotiations begin for the acquisition of property or easements, all property owners will be provided an informational pamphlet prepared by the Wisconsin Department of Commerce and if any person is to be displaced as a result of the acquisition, they will be given a pamphlet on "Relocation Rights". The City will provide each owner a full narrative appraisal, a map showing the owners of all property affected by the proposed project and a list of all or at least ten neighboring landowners to whom offers are being made. The City will file a relocation plan with the Department of Commerce and shall keep records as required in Wisconsin Statute Section 32.27. ORDERLY DEVELOPMENT OF THE CITY TID No. 9 contributes to the orderly development of the City by providing the opportunity for continued growth in tax base and aesthetics and residential character in a developed portion of the City. TID No. 9 will assist the City in the redevelopment along Janesville Road and will compliment the CDA Redevelopment Plan for Redevelopment District No. 1. PARCEL LIST TID 9 TAX KEY NUMBER NAME LAND IMPR TOTAL 2162.992 Hallada 54400 81300 135700 2162.993 Russ' 134100 120700 254800 2162.994 Bierer 70600 136100 206700 2162.996 Heritage Church exempt 2162.996.001 Heritage Church 29700 116000 145700 2162.997 Zillig 740000 3137400 3877400 2162.998 Katzner 68800 77800 146600 2162.999 Wanasek 161100 294900 456000 2162.999.001 Lincoln 148600 297400 446000 2165.972 St Pauls exempt 2165.973 Salentine 449000 1481400 1930400 2165.974 St Pauls exempt 2165.975 St Pauls exempt 2165.976 Schuster 97300 266700 364000 2165.977 Shanklin 56500 56500 2165.978 BioSource 77300 620800 698100 2165.982 Schaumberg deleted 2165.983 Schaumberg deleted 2165.984 Waukesha exempt 2165.984.001 Waukesha exempt 2165.985 Schaumberg, Paul 63100 196300 259400 2165.986 Smith 38100 122000 160100 2165.989.001 Schaumberg 61800 105500 167300 2165.989.002 City of Muskego exempt 2165.996.006 BioSource 11800 11800 2165.999 Kurth 55100 62700 117800 2167.007.006 Thelen 64000 1458300 1522300 2167.065 Augustine 38700 120400 159100 2167.066 Rader 38900 177800 216700 2167.067 Haupt 39900 144700 184600 2167.068 Peterson 40900 134000 174900 2167.993 Wollman 33500 77500 111000 2167.994 Wollman 37000 73900 110900 2167.995.007* Jewel Osco 118700 2167.995.010* Jewel Osco 100000 2167.995.011* Redman/Maciolek 310600 124200 2167.995.012* Redman/Maciolek 342000 194100 2167.995.013* Redman/Maciolek 263800 310600 2167.995.014* Redman/Maciolek 124200 342000 TID 9 TAX KEY NUMBER NAME LAND IMPR TOTAL 2167.995.015* Redman/Maciolek 194100 263800 2167.997 Bushberger 49600 189900 239500 2167.998 Atonement exempt 2167.999 Don Mgmt 224000 1176900 1400900 2168.961 TC School exempt 2168.963 Lamb 55500 64900 120400 2168.982 TC Fire exempt 2168.983 Ulfeng 36600 126800 163400 2168.984 Baas 45400 97800 143200 2168.985 Waukesha exempt 2168.986.001 Knapp 42900 126500 169400 2168.986.002 LeDoux 44100 100100 144200 2168.986.003 Yanko 43300 135200 178500 2168.987 Waukesha exempt 2168.988 Kirchoff 38200 93600 131800 2168.989 Smith 42900 94200 137100 2168.990 Mather 49500 89100 138600 2168.991 Cameron 33900 97000 130900 2168.992 Ciula 29400 89100 118500 2168.993 Smith 16300 113200 129500 2168.994 Bunchkowski 19100 120300 139400 2168.996 E&K Land 99800 244400 344200 2168.997 Kelsenberg 44000 71500 115500 2168.999 St Pauls exempt 2172.998 Bank One 121200 242200 363400 2172.998.002 Janesville Medical 284100 2007500 2291600