The URL can be used to link to this page

CCR2000175AMENDED COMMON COUNCIL - CITY OF MUSKEG0 RESOLUTION #175-2000 A RESOLUTION CREATING, DESCRIBING AND MAKING CERTAIN FINDINGS AND APPROVING PROJECT PLAN FOR TAX INCREMENTAL DISTRICT N0.8 CITY OF MUSKEGO, WISCONSIN WHEREAS, the overall development of the City of Muskego is recognized as a major need of the City; and WHEREAS, the City of Muskego desires to create a tax incremental district, in accordance with the provisions of Section 66.46 of the Wisconsin Statutes (the "Tax Increment Law"), in order to provide a viable method of financing the costs of needed public improvements within said district and thereby create incentives and opportunities for appropriate private development, which will contribute to the overall development of the City; and WHEREAS, in accordance with the procedures specified in the Tax Increment Law, the Plan Commission, on July 18, 2000 held a public hearing concerning the proposed creation of a tax incremental district and proposed project plan thereof in the City of Muskego, wherein interested parties were afforded a reasonable opportunity to express their views; and WHEREAS, prior to its publication, a copy of the notice of said hearing was sent to the chief executive officers of Waukesha County Board of Supervisors and the District Board of the Waukesha County Area Technical College (the other entities having the power to levy taxes on property located within the proposed district) and the Board of Education of the Muskego-Noway School District (the school district which includes property located within the proposed district), in accordance with the procedures specified in the Tax Increment Law; and WHEREAS, after said public hearing the Plan Commission designated the boundaries of the proposed tax incremental district and recommended to the City Council that it create such tax incremental district within the area enclosed by said boundaries, as specified in the boundary description or map attached to this resolution as Exhibit A hereof, and entitled "Boundary Description or Map of Tax Incremental District No. 8, City of Muskego", and WHEREAS, the City of Muskego Plan Commission has prepared and adopted a project plan for Tax Incremental District No. 8 which: Reso. #175-2000 1 Includes a statement listing the kind, number and location of all proposed public works or improvements within such district; 2. Contains an economic feasibility study; 3. Contains a detailed list of estimated project costs; 4. Contains a description of the methods of financing all estimated project costs and the time when such costs or monetary obligations related thereto are to be incurred; 5. Includes a map showing existing uses and conditions of real property in such district; 6. Includes a map showing proposed improvements and uses therein; 7 Shows proposed changes of: a. Zoning ordinances b. Master plan c. Map d. Building codes e. City codes 8. Contains a list of estimated non-project costs; 9. Contains a statement of a proposed method for the relocation of any person to be displaced; 10. Indicates how the creation of the district promotes orderly develop- ment of the City; and 11 Contains an opinion of the City Attorney or of an Attorney retained by the City advising the plan is complete and complies with Wisconsin Statutes, Section 66.46(4)(f); and WHEREAS, the Plan Commission has submitted such plan to the City Council and recommended approval thereof. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Muskego as 0 follows: Reso. #175-2000 1 Pursuant to the Tax Increment Law, there is hereby created in the City of Muskego a tax incremental district to be known as "Tax Incremental District No. 8, City of Muskego", the boundaries of which shall be those recommended to the City Council by the Plan Commission, as specified in the attached Exhibit A. 2. The City Council hereby finds and declares that: a. Not less than 50% by area of the real property within the said tax incremental district is a blighted area or is in need of rehabilitation or conservation work within the meaning of Section 66.435(2m)(b) of the Wisconsin Statutes; and b. The improvement of such area is likely to enhance the value of all of the other real property in the said tax incremental district; and c. The equalized taxable property of the said tax incremental district does not exceed 7% of the total value of equalized taxable property within the City of Muskego or the equalized value of taxable property of the district plus the value increment of all existing districts within the City does not exceed 5% of the total equalized value of taxable property within the City. d. The project costs directly serve to promote rehabilitation in the area consistent with the purpose for which the district is created. BE IT FURTHER RESOLVED THAT the City Council of the City of Muskego approves the project plan adopted by the Plan Commission, attached as Exhibit B as amended on August 22,2000 and further amended September 12,2000, and finds that: 1 Such project plan for Tax Incremental District No. 8 in the City of Muskego is feasible, and 2. Such project plan is in conformity with the master plan of the City of Muskego. Reso. #175-2000 The City Clerk is hereby authorized and directed to apply to the Wisconsin Department of Revenue, in such form as may be prescribed, for a "Determination of Tax Incremental Base", as of January 1, 2000, pursuant to the provisions of Section 66.45(5)(b) of the Wisconsin Statutes. The City Assessor is hereby authorized and directed to identify upon the assessment roll returned and examined under Section 60.45 of the Wisconsin Statutes, those parcels of property which are within Tax Incremental District No. 8, specifying thereon the name of the said tax incremental district, and the City Clerk is hereby authorized and directed to make similar notations on the tax roll made under Section 70.65 of the Wisconsin Statutes, pursuant to Section 66.46(5)(f) of the Wisconsin Statutes. DATED THIS 22"d DAY OF AUGUST ,2000 Reconsidered, Adopted 911 212000 This is to certify that this a true and accurate copy of Resolution #I 75-2000 which was adopted by the Common Council of the City of Muskego. 8/00 mep Project Plan Tax Incremental District No. 8 Cify of Muskego, Wisconsin Prepared By Ehlers 8 Associates, Inc. Adopted by the Plan Commission August 1, 2000 Amended and Adopted by the Common Council August 15,2000 Reconsidered, Amended and Adopted by the Common Council September 12,2000 I I I. I I I I I I I. I I I I I I I I. 1 TABLE OF CONTENTS STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PUBLIC WORKS ,3 ECONOMIC FEASIBILITY STUDY .5 DETAILED LIST OF PROJECT COSTS 14 A DESCRIPTION OF THE METHODS OF FINANCING AND THE TIME WHEN SUCH COSTS OR MONETARY OBLIGATIONS RELATED THERETO ARE TO BE INCURRED 16 MAP SHOWING EXISTING USES AND CONDITIONS. 19 MAP SHOWING PROPOSED PROJECTS .21 PROPOSED CHANGES IN ZONING ORDINANCES .23 PROPOSED CHANGES IN MASTER PIAN, BUILDING CODES AND CITY ORDINANCES .23 A LIST OF ESTIMATED NON-PROJECT COSTS. .23 RELOCATION .24 ORDERLY DEVELOPMENT OF THE CITY ,24 OPINION OF CITY ATTORNEY ADVISING WHETHER THE PLAN IS COMPLETE AND COMPLIES WITH WISCONSIN STATUTES, SECTION 66.46. .26 City of Muskego TID No. 8 Adopted by the Common Council August 22, 2000' Page 2 I I. I 1 I I I I I. I I I I I I I I. Project Plan Tax Incremental District No. 8 City of Muskego, Wisconsin STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PUBLIC WORKS T ax Incremental District No. 8, City of Muskego (the "District') consists primarily of the old Parkland Mall site, located in the city's downtown area at the comers of Janesville Road, Lannon Road and Parkland Drive. At one time the Parkland Mall was the major commercial development in the City. Today the structure is vacant and partially demolished, creating a significant blight in downtown this blight is eliminated and that new commercial development occurs in its place. Muskego. The City of Muskego intends that tax incremental financing (TIF) will be used to assure that The following is a list of public work projects that the City 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. UTILITY INSTALLATION. In order to provide adequate utilities for new buildings, it may be necessary to extend water mains, sanitary sewer mains or other utilities to this site. STORM WATER RETENTION SYSTEM. Development of the area will cause storm water run off. To avoid problems in the District and adjacent areas, a storm water collection and retention system will be installed. UNDERGROUND ELECTRIC WIRING. In order to improve the appearance of the area and attract high quality commercial development, it may be necessary to bury electric cables. STREETS. To maintain good traffic flow inside the area and control ingress and egress, it may be necessary to upgrade Lannon and Parkland Drives, reconstmct Janesville Road to its ultimate four lane configuration, and install traffic control signs, signals, street lighting, and other street amenities. ECONOMIC 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 development and assure tax base is generated sufficient to recover project costs. Examples of incentives include, but are not limited to, providing funds for on-site public parking, open spaces, construction of a public pavilion at the Parkland Mall site, and related professional services. ADMINISTRATIVE COSTS. These include but are not limited to a portion of the salaries of the city's administrative staff, 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. City of Muskego TID No. 8 *Adopted by the Common Council August 22, 2000' Page 3 ORGANIZATIONAL COSTS FOR THE CITY These costs include but are not limited to fees of the financial consultant, attorney, engineers, surveyors. map makers and other contracted services for the City of Muskego. FINANCE COSTS. Interest. financing fees, redemption premiums, and other financing fees are included as project costs for the City of Muskego. 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. Wisconsin Statute Section 66.46, in the written opinion of nationally recognized bond counsel or a court In the event any of the public works projects are not reimbursable out of the special TIF fund under 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 enter into developer agreements and 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 afler planning is completed. A portion of costs in the plan are also estimates and subject to change based upon implementation, future assessment policies and user fee adjustments. City of Muskego TID No. 8 'Adopted by the Common Council August 22, 2000' Page 4 I 1 I I I I I I I I I I I I I I I I I I. I I I I I I I. I I I I I I I I. I ECONOMIC FEASIBILITY STUDY T he City of Muskego, located in the southem portion of Waukesha County near Interstate 43, is a community of approximately 20,500 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 1995 and 1999. The second method projects the future valuation based upon the average annual increment between 1995 and 1999. This method is identified as the straight line method. Chart II projects the general obligation borrowing The chart demonstrates that the City is likely to have a general obligation capacity in excess of capacity of the City taking into account the straight line valuation projection and existing debt of the City. $79,000,000 during the seven year implementation period of the District. 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. City of Muskego TID No. 8 Adopted by the Common Council August 22, 2000' Page 5 I I. CHART I -PERCENTAGE METHOD- 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 5 Year Trend CHART II BUDGET YEAR 2000 2001 2002 2033 2004 2005 2006 2W7 2008 2009 201 0 201 1 2012 201 3 201 4 201 5 201 6 2017 201 6 EQUALIZED VALUATION PROJECTION City of Muskego, Wisconsin STRAIGHT LINE METHOD- 1,038,854,900 1.103.791.7W 1996 1995 1.166.159.WO 1,227,121,100 1997 1,316,793,100 6.69% 1998 1999 HISTORICAL DATA Stralght Line Method Value Increment 1,404,867,744 1,496,833,324 1,599,083,859 1,706,039,722 1,820,149,404 1,941,891,393 2.071.776.183 2,210,348,408 2,358,189,136 EQUALIZED VM 1,316,793,100 1,386,277,650 1,455,762,203 1,525,246,750 1,594,731,300 1,664,215,850 1,733.700.400 1.803.164.950 1,672,669,500 1,342,154,050 2.01 1,638.603 2.081.123.150 2.150.607.700 2,289,576,800 2,220,092,250 2,359,061,350 2.428.545.900 2,567,515,000 2,498,030,450 6.69% 6.69% 6.69% 6.69% 6.69% 6.69% 6.69% 6.69% 6.69% PROJECTED VALUATION 2000 2031 2002 2003 2004 x05 2006 2007 2W8 GROSS DEBT IJMJ 65,839,655 69,313,883 72,788,110 76,262,338 79,736.565 83,210,795 86,685,020 90.159.245 93,533,475 97,107,703 100,581,930 107,530,385 104,056,158 111.W4.613 11 4,478.840 117,953,068 121,427,295 128,375,750 124,901,523 1,038,854,900 1,103,791,700 1,166,159,000 1,227,121,100 1,316,793,100 969,484,550 1,386,277650 1.525.246.750 1,455,762.200 1,594,731,300 1,654,215,850 1,803,184,950 1,733,700,400 1,672,669,500 1,942,154,050 6.69% 5.28% 5.01 % 4.56% 4.77% 4.36% 4.18% 4.01 % 3.85% 3.71% DEBT NET BORROWING BALANCE CAPACITY 15,500,000 50.339.655 12,585,000 56,726,883 11,445,000 10,330,000 61,343,110 65,932.338 9.275.000 8,460,000 70,451,565 74,750,793 6.920.000 7,660,000 83.239.248 79,025,020 6.140.000 5,415,000 87,493,475 91,692,703 4,650,000 4,175,000 95,931,930 3,675,000 99,881,158 103,855,395 3,150,000 107,854,613 2,600,000 2,000,wo 11 l,878.&M 115,953,066 1,375,000 700,000 120,052,295 124,201,523 128,375,750 Cify of Muskego TID No. 8 Adopted by the Common Council August 22, 2000' Page 5 I I I I PROJECTED REVENUE Exhibit 1 (page 6) estimates the TIF revenues that will be available to retire the debt incurred to finance project costs. Exhibit 2 (page 8) 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: =) The base value of the District is $4,023,720 Tax base will be generated as of January 1 each year as follows: 2001 $1,000,000 2002 $4.237.100 2003 $1,912,367 2005 $1,912,367 2004 $1,912,367 The equalized tax rate in 2000 is projected to be $21.50 per thousand (the City's actual equalized lax rate for 1999). It is projected to remain constant throughout the pro forma. Valuations are projected to increase 1% each year because of inflation C#y of Muskego TID No. 8 *Adopted by the Common Council August 22, 2000' Page 6 Exhibit 1 Base Value 4,023,720 Inflation Factor 1.00% Constructjon Valuation Revenue Inflation Value Valua/jon Tax Tax Year Year Year Increment Added Increment Rate Increment 1 2000 2 2001 3 2002 4 2003 5 2004 6 2005 7 2006 8 2007 9 2008 10 2009 11 2010 12 2011 13 2012 14 2013 15 2014 16 2015 17 2016 18 2017 19 2018 20 2019 21 2020 22 2021 23 2022 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 201 1 201 2 201 3 201 4 201 5 2016 201 7 201 8 201 9 2020 2021 2022 2023 2002 40,237 0 2003 40,640 1,000,000 2004 51,046 4,737,100 2005 98,927 1,912,367 2006 119,040 1.912.367 2007 139,354 1,912,367 2008 159.872 2009 161,470 2010 163.085 0' 2011 164,716 0 2012 166,363 0 2013 168.027 0 2014 169,707 2015 171,404 2016 173.118 2017 174.849 2018 176,598 2019 178.364 2020 180.147 2021 181,949 2022 183.768 2023 185,606 2024 187.462 40,237 21.50 1,080,877 21.50 5.869.023 21 SO 7,880,317 21.50 9,911.724 21 SO 11,963,445 21 SO 12,123,317 21.50 12284,787 21.50 12.447.872 21.50 12,612,588 21.50 12,778.951 21 SO 12,946,978 21.50 13,116,685 21.50 13.288.089 21 SO 13,461,207 21.50 13,636,056 21.50 13.812.654 21.50 13.991.018 21.50 14,171,165 21.50 14,353,114 21.50 14,536,882 21.50 14.722.488 21 SO 14,909,950 21 SO 865 23,239 126,184 169,427 213,102 257,214 260,651 264,123 267,629 271,171 274,747 278,360 282,009 285,694 289,416 293,175 296,972 300,807 304.680 308,592 312,543 316,533 320.564 otals 11,474,200 5.717.69a Present value at 5.75% 2,782,250 City of Muskego TID No. 8 Adopted by the Common Council August 22, 2000' Page 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 year-end balances. Revenues include tax increments from Exhibit 1, capitalized interest, and interest earned investing Expenditures represent payments for principal and interest payments on the District's share of debt issued to finance projects listed in the plan. The tentative proposed issues are identified as follows: Issue No. Year DescriDtion 1 2000 G.O. Bonds $1,270,000 2 2002 G.O. Bonds $1,800,000 Revenues anticipated will be sufficient to meet all obligations in a timely manner and produce a $98,9173 accumulated surplus by the year 2023. City of Muskego TID No. 8 *Adopted by the Common Council August 22, 2000' Page 8 I I. I I I I I I ISSUE Exhibit 2 Financial Forecast 2000 2001 2002 2003 2004 2005 Revenues: Beginning Balance Capitalized Interest Tax Increments Land Sales Investment Earnings at 5% ProperlyTaxAdvance Total Revenue Expenses: 1 Interest Principal ISSUE 2 Interest I Principal Total Expenses 1 Ending Balance I I 182.563 118,666 259,439 119,125 74,740 182.563 0 207,000 0 0 865 23.239 126.184 169,427 9.128 5,933 12,972 5,956 3.737 0 0 0 0 182,563 191,691 332,464 295,650 251,265 247,904 0 73.025 73.025 73.025 73,025 73,025 0 0 50,000 103.500 103,500 103,500 0 73,025 73,025 176,525 176,525 226,525 182,563 118.666 259,439 119,125 74,740 21,379 I City of Muskego TID No. 8 *Adopted by the Common Council August 22, 2000' Page 9 Financial Forecast 2006 2007 2008 2009 2010 2011 2012 Revenues: Beginning Balance 21,379 11,900 28.934 24,282 28,619 42,429 66,221 Capitalized Interest Tax Increments 213,102 257,214 260,651 264,123 267,629 271,171 274,747 Land Sales 0 0 0 0 0 0 0 Investment Earnings at 5% 1,069 595 1,447 1.214 1,431 2.121 3,311 Property Tax Advance 0 0 0 0 0 0 0 Total Revenue 235,550 269,709 291,032 289,619 297,679 315,721 344,280 Expenses: ISSUE 1 Interest Principal ISSUE 2 Interest Principal 70,150 67,275 63,250 57,500 51,750 46,000 40.250 50,000 70,000 100,000 100,000 100,000 100,000 125,000 103,500 103,500 103,500 103,500 103,500 103,500 103,500 0 0 0 0 0 Total Expenses 223,650 240,775 266,750 261,000 255,250 249,500 268,750 Ending Balance 11,900 28.934 24.282 28.619 42,429 66,221 City of Muskego TID No. 8 Adopted by the Common Council August 22, 2000' Page 10 ISSUE 1 ISSUE 2 .I Financial Forecast 2013 2014 2015 2016 2017 2018 2019 Revenues: Beginning Balance 75,530 96.104 103,543 73,664 7,513 56,189 69.720 Capitalized Interest Tax Increments 278,360 282.009 285,694 289,416 293,175 296,972 300,807 Land Sales 0 0 0 0 0 0 0 Investment Earnings at 5% 3.776 4,805 5,177 3,683 376 2,809 3,486 Property Tax Advance 0 0 0 0 0 0 0 Total Revenue 357,666 382,918 394,414 366,763 301,064 355,970 374,013 Expenses: Interest Principal Interest Principal 33,063 25.875 17,250 8,625 0 0 0 125,000 150,000 150,000 150,000 103,500 103,500 103,500 100,625 94,875 86,250 74,750 0 0 50,000 100,000 150,000 200,000 250,000 Total Expenses 261,563 279,375 320,750 359,250 244,875 286.250 324,750 Ending Balance 96,104 103,543 73,664 7,513 56,189 69,720 49,263 City of Muskego TID No. 8 'Adopted by the Common Council August 22, 2000' Page 11 Revenues: Beginning Balance Capitalized Interest Tax Increments Land Sales Investment Earnings at 5% Property Tax Advance Total Revenue Expenses: ISSUE 1 Interest Principal ISSUE 2 Interest Principal Total Expenses Ending Balance Financial Forecast 2020 2021 2022 2023 2024 49,263 46,031 60,925 94,889 98.917 304,680 308.592 312,543 316,533 320,564 0 0 0 0 0 2,463 2,302 3,046 4,744 4,946 0 0 0 0 0 356.406 356,925 376,514 416.167 424,427 0 0 60,375 46,000 31,625 17,250 0 250,000 250,000 250,000 300,000 0 310,375 296,000 281,625 317,250 0 46,031 60,925 94,889 98,917 424,427 Cty of Muskego TID No. 8 'Adopted by the Common Council August 22, 2000' Page 12 DETAILED LIST OF PROJECT COSTS T framework with which to manage projects. All costs included in the plan are estimates based on his project plan is not meant to be a budget nor an appropriation of funds for specific projects, but a 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 following budget represents a total cost in the amount of $2,688.000 plus financing and interest 66.46 of the Wisconsin State Statutes. The City reserves the right to increase certain project costs to the costs. This amount will not be exceeded unless this plan is subsequently amended pursuant to Section extent others are reduced or not implemented, without amending the plan. Co of Muskego TID No. 8 Adopted by the Common Council August 22, 2000' Page 13 PROPOSED TIF PROJECT ESTIMATES '' i CAPITALIZATION SCHEDULE '0 Project 00101 Amount Utility Extensions 75,000 Storm Water Improvements 257,000 Street Lighting Underground Electric Street Improvements Development Incentives 700.000 Organization and Admin I I I 'I I I , Issuance Expenses Discount Capitalized Interest ............................... y&jjip&@Jee&& ;:;;i;i ............................................... .... Less: Interest Earned TOTAL BORROWING 50,000 ....... .:l'lo82:'0~0. :. . .r ....... ' ..... 25.000 12,700 -32,263 1,270,000 02-04 Amount 544,000 68,000 290,000 523,000 156,000 25,000 ':$sos ... ..:*.:.: . :.r: : : ... 25,000 18,000 207,000 -56,000 1,800,000 4 A DESCRIPTION OF THE METHODS OF FINANCING AND THE TIME WHEN SUCH COSTS OR MONETARY OBLIGATIONS RELATED THERETO ARE TO BE INCURRED PLAN IMPLEMENTATION P rOjeCtS identified will provide the anticipated governmental services to the area. It is anticipated these improvements will be made over a seven year period. However, public debt and expenditures should be made at the pace private development occurs to assure increment is sufficient to cover expenses. It is anticipated developer agreements between the City and property owners will be in place prior to major public expenditures. These agreements can provide for development guarantees or a payment in special assessments against benefited properties. lieu of development. To further assure contract enforcement these agreements may include levying of 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 Actual interest expense will be determined once the methods of financing have been approved and municipal bonds or broadening the purpose of future tax exempt bonds would affect market conditions. securities issued. financing solutions for the projects as they are implemented. If financing as outlined in this plan proves unworkable, the City reserves the right to use alternate City of Muskego TID No. 8 *Adopted by the Common Council August 22, 2000' Page 15 G.O. Bonds Issue No. I Proposed Maturity Schedule $1,270,000 The 2000 and 2001 projects are anticipated to be financed with G.O. Bonds to be issued under authority of Wisconsin Statutes ChaDter 67 The interest rate used for this is 5.75%. YEAR 2001 2002 2003 2004 2005 2006 2007 2008 2009 201 0 201 1 2012 201 3 201 4 201 5 2016 TOTAL 50,000 50,000 70,000 100,000 100,000 100,000 100,000 125,000 125,000 150,000 150,000 150.000 PRINCIPAL INTEREST 73,025 73,025 73,025 73,025 73,025 70,150 67,275 63,250 57,500 51,750 46,000 40,250 33,063 25,875 17,250 8.625 846.113 1,270,000 TOTAL 73,025 73,025 73,025 73,025 123,025 120,150 137,275 163,250 157,500 151,750 146,000 165,250 158.063 175,875 167,250 158.625 2,116,113 City of Muskego TID No. 8 *Adopted by the Common Council August 22, 2000' Page 16 G.O. Bonds Issue No. 2 Proposed Maturity Schedule $1,800,000 The 2003 through 2004 projects are anticipated to be financed with G.O. Bonds to be issued under authority of Wisconsin Statutes Chapter 67 The interest rate used for this is 5.75%. 2003 2004 2005 2006 2007 2006 2009 201 0 201 1 201 2 201 3 201 4 201 5 2016 201 7 201 8 201 9 2020 2021 2022 2023 TOTAL 50,000 100,000 150,000 200.000 250,000 250,000 250,000 250,000 300.000 1,800,000 YEAR PRINCIPAL INTEREST 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 100,625 94,875 66,250 74,750 60,375 46,000 31,625 17.250 1,657,250 TOTAL 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 153,500 200,625 244,875 266.250 324,750 310,375 296,000 261,625 317.250 3,657,250 City of Muskego TID No. 8 Adopted by the Common Council August 22, 2000' Page 17 I I a Mayor David DeAngelis Mayor Common Council Kathy Chiaverotti Council Member Charles Wichgers Council Member William LeDoux Patrick Patterson Nancy Salentine David Sanders Council Member Council Member Council Member Council Member Mark Slocomb Council Member City Staff Dawn Gunderson Finance Director Jean Marenda City Clerk I Treasurer Brian Turk Director of Planning Sean McMullen Director of Building Laura Mecha City Assessor and Engineering Plan Commission Mayor David DeAngelis Chair Kathy Chiaverotti Member Jerald Hulbert Member Traci Smith Member Neome Schaumberg Member Robert Gummer Member Harry Brodel Member Joint Review Board Dawn Gunderson City Representative Norman Curnrnings Waukesha County Cary Tessmann Waukesha County Area Technical College George Haynes Muskego-Noway School District Marvin Pinkowski Public Member W z z 0 N 00 # H n E m # n .. LEGEND D 1. Janesville Rd Reconstruction 2. Utility Line Burial 3. Utility Extension 4. Stormwater Improvements Z 5. Development Incentives 6. Signalize Intersection (4 lanes w/ blvd and traffic controls) n # e 4 10 RELOCATION I t 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 properly or easements, all property owners will be provided an informational pamphlet prepared by the Wisconsin Department of Industry. Labor, and given a pamphlet on "Relocation Benefits" as prepared by DILHR. The City will provide each owner a Human Relations (DILHR) and if any person is to be displaced as a result of the acquisition, they will be 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 DILHR and shall keep records as required in Wisconsin Statute Section 32.27 I1 ORDERLY DEVELOPMENT OF THE CITY T blight within the City and TID No. 8 will provide the City with additional development located in the ID No. 8 contributes to the orderly development of the City by providing the elimination of a major City's downtown area. t! P I i E I L k 1 a, 'c' '1 I Cdy of Muskego TID No. 8 'Adopted by the Common Council August 22, 2000' Page 23 '1 P 0 'I E I II. 13 OPINION OF CITY ATTORNEY ADVISING WHETHERTHE PLAN IS COMPLETE AND COMPLIES WITH WISCONSIN STATUTES, SECTION 66.46 August 23, 2000 Mayor David DeAngelis City of Muskego W182 Si8200 Racine Avenue P.O. Box 0749 Muskego. Wisconsin 53150 RE: City of Muskego, Wisconsin Tax Incremental District No. 8 Dear.Mayor As City Attorney for the City of Muskego, I have reviewed the project plan and various resolutions passed by the City Council, Plan Commission and Joint Review Board regarding Tax Incremental District No. 8 located in the City of Muskego. In my opinion, the project plan is complete and complies with Section 66.46 of the Wisconsin Statutes. Sincerely, Attorney Brian Lanser Quarles 8 Brady City of Muskego ~~ City of Muskego TID No. 8 Adopted by fhe Common Council August 22, 2000' Page 25 AMENDED . Jet- COMMON COUNCIL - CITY OF MUSKEG0 RESOLUTION #175-2000 A RESOLUTION CREATING, DESCRIBING AND MAKING CERTAIN FINDINGS PROJECT PLAN FOR TAX INC WHEREAS, the overall development of the City as a major WHEREAS, the City of Muskego desires to accordance with the provisions of Section public improvements for appropriate private the City; and WHEREAS, in need of the City; and li) Plan their views; and Board of the Waukesha County Area Technical College (the other entities having the power to levy taxes on property located within the propyed district) and the Board of Education of the Muskego-Noway School District (the school district which includes property located within the proposed district), in accordan&,with the procedures specified in the Tax Increment Law; and WHEREAS, after said public hearing the Plan Commission designated the boundaries of the proposed tax incremental district and recommended to the City\Council that it create such tax incremental district within the area enclosed by said bohdaries, as specified in the boundary description or map attached to this resolution as Exhibit A hereof, and entitled "Boundary Description or Map of Tax Incremental District, No. 8, City of Muskego", and \ \ '. 0 WHEREAS, the City of Muskego Plan Commission has prepared and adopted a project plan for Tax Incremental District No. 8 which: Reso. #175-2000 1 2. 3. 4. 5. 6. 7 8. 9. 10. 11 Includes a statement listing the kind, number and location of all proposed public works or improvements within such district; Contains an economic feasibility study; Contains a detailed list of estimated project costs; Contains a description of the methods of financing all estimated project costs and the time when such costs or monetary obligations related thereto are to be incurred; Includes a map showing existing uses and conditions of real property in such district; Includes a map showing proposed improvements and uses therein; Shows proposed changes of: a. Zoning ordinances b. Master plan c. Map d. Building codes e. City codes Contains a list of estimated non-project costs; Contains a statement of a proposed method for the relocation of any person to be displaced; Indicates how the creation of the district promotes orderly develop- ment of the City; and Contains an opinion of the City Attorney or of an Attorney retained by the City advising the plan is complete and complies with Wisconsin Statutes, Section 66.46(4)(f); and WHEREAS, the Plan Commission has submitted such plan to the City Council and recommended approval thereof. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Muskego as follows: Reso. #175-2000 1 Pursuant to the Tax Increment Law, there is hereby created in the City of Muskego a tax incremental district to be known as "Tax Incremental District No. 8, City of Muskego", the boundaries of which shall be those recommended to the City Council by the Plan Commission, as specified in the attached Exhibit A. 2. The City Council hereby finds and declares that: a. Not less than 50% by area of the real property within the said tax incremental district is a blighted area or is in need of rehabilitation or conservation work within the meaning of Section 66.435(2m)(b) of the Wisconsin Statutes; and b. The improvement of such area is likely to enhance the value of all of the other real property in the said tax incremental district; and c. The equalized taxable properly of the said tax incremental district does not exceed 7% of the total value of equalized taxable property within the City of Muskego or the equalized value of taxable property of the district plus the value increment of all existing districts within the City does not exceed 5% of the total equalized value of taxable property within the City. d. The project costs directly serve to promote rehabilitation in the area consistent with the purpose for which the district is created. BE IT FURTHER RESOLVED THAT the City Council of the City of Muskego approves the project plan adopted by the Plan Commission, attached as Exhibit B as amended, and finds that: 1 Such project plan for Tax Incremental District No. 8 in the City of Muskego is feasible, and 2. Such project plan is in conformity with the master plan of the City of Muskego. The City Clerk is hereby authorized and directed to apply to the Wisconsin Department of Revenue, in such form as may be prescribed, for a "Determination of Tax Reso. #175-2000 0 Incremental Base", as of January 1, 2000, pursuant to the provisions of Section 66.45(5)(b) of the Wisconsin Statutes. The City Assessor is hereby authorized and directed to identify upon the assessment roll returned and examined under Section 60.45 of the Wisconsin Statutes, those parcels of property which are within Tax Incremental District No. 8, specifying thereon the name of the said tax incremental district, and the City Clerk is hereby authorized and directed to make similar notations on the tax roll made under Section 70.65 of the Wisconsin Statutes, pursuant to Section 66.46(5)(f) of the Wisconsin Statutes. DATED THIS 22"' DAY OF AUGUST ,2000, 6 avid . e Angelis, Mayor This is to certify that this a true and accurate copy of Resolution #175-2000 which was adopted by the Common Council of the City of Muskego. I EXHIBIT A -r BOUNDARY DESCRIPTION OR MAP OF TAX INCREMENTAL DISTRICT NO. 8 CITY OF MUSKEGO - L L I I I ,I / Tax Incremental District No. 8 City of Muskego, Wisconsin J J n August 1,2000 Council August 22,2000 TABLE OF CONTENTS STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PUBLIC WORKS ,3 ECONOMIC FEASIBILITY STUDY 5 DETAILED LIST OF PROJECT COSTS 14 A DESCRIPTION OF THE METHODS OF FINANCING AND THE TIME WHEN SUCH COSTS OR MONETARY OBLIGATIONS RELATED THERETO ARE TO BE INCURRED 16 MAP SHOWING EXISTING USES AND CONDITIONS. 19 MAP SHOWING PROPOSED PROJECTS ,21 PROPOSED CHANGES IN ZONING ORDINANCES .23 PROPOSED CHANGES IN MASTER PLAN, BUILDING CODES AND CITY ORDINANCES ,23 A LIST OF ESTIMATED NON-PROJECT COSTS. RELOCATION ORDERLY DEVELOPMENT OF THE CITY ,23 .24 ,24 OPINION OF CITY ATTORNEY ADVISING WHETHER THE PLAN IS COMPLETE AND COMPLIES WITH WISCONSIN STATUTES, SECTION 66.46. ,26 City of Muskego TID No. 8 *Adopted by the Common Council August 22, 2000' Page 2 Project Plan Tax Incremental District No. 8 City of Muskego, Wisconsin STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PUBLIC WORKS T ax Incremental District No. 8, City of Muskego (the "District") consists primarily of the old Parkland Mall site, located in the city's downtown area at the comers of Janesville Road, Lannon Road and Parkland Drive. At one time the Parkland Mall was the major commercial development in the City. Today the structure is vacant and partially demolished, creating a significant blight in downtown this blight is eliminated and that new commercial development occurs in its place. Muskego. The City of Muskego intends that tax incremental financing (TIF) will be used to assure that The following is a list of public work projects that the City 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. UTILITY INSTALLATION. In order to provide adequate utilities for new buildings, it may be necessary to extend water mains, sanitary sewer mains or other utilities to this site. STORM WATER RETENTION SYSTEM. Development of the area will cause storm water run off. To avoid problems in the District and adjacent areas, a storm water collection and retention system will be installed. high quality commercial development, it may be necessary to bury electric cables. UNDERGROUND ELECTRIC WIRING. In order to improve the appearance of the area and attract STREETS. To maintain good traffic flow inside the area and control ingress and egress, it may be necessary to upgrade Lannon and Parkland Drives, reconstruct Janesville Road to its ultimate four lane configuration. and install traffic control signs, signals, street lighting, and other street amenities. ECONOMIC 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 development and assure tax base is generated sufficient to recover project costs. Examples of incentives include. but are not limited to, providing funds for on-site public parking, open spaces, construction of a public pavilion at the Parkland Mall site. and related professional services. ADMINISTRATIVE COSTS. These include but are not limited to a portion of the salaries of the city's administrative staff, 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. City of Muskego TID No. 8 'Adopted by the Common Council August 22, 2000' Page 3 t ORGANIZATIONAL COSTS FOR THE CITY These costs include but are not limited to fees of the financial consultant, attorney, engineers. surveyors, map makers and other contracted services for the City of Muskego. t FINANCE COSTS. Interest, financing fees, redemption premiums, and other financing fees are included as project costs for the City of Muskego. 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. Wisconsin Statute Section 66.46, in the written opinion of nationally recognized bond counsel or a court In the event any of the public works projects are not reimbursable out of the special TIF fund under 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 enter into developer agreements and 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. A portion of costs in the plan are also estimates and subject to change based upon implementation, future assessment policies and user fee adjustments. City of Muskego TID No. 8 'Adopted by the Common Council August 22, 2000' Page 4 ECONOMIC FEASIBILITY STUDY T he City of Muskego. located in the southern portion of Waukesha County near Interstate 43, is a community of approximately 20,500 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 fint projects the future valuation of the City using the average annual percentage of valuation growth experienced between 1995 and 1999. The second method projects the future valuation based upon the average annual increment between 1995 and 1999. This method is identified as the straight line method. Chart II projects the general obligation borrowing The chart demonstrates that the City is likely to have a general obligation capacity in excess of capacity of the City taking into account the straight line valuation projection and existing debt of the City. $79,000,000 during the seven year implementation period of the District. 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. City of Muskego TID No. 8 *Adopted by the Common Council August 22, 2000' Page 5 CHART I “PERCENTAGE METHOD-- 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 5 Year Trend CHART II BUDGET - YEAR 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201 0 201 1 201 2 201 3 201 4 201 6 201 5 201 7 201 8 EQUALIZED VALUATION PROJECTION City of Muskego, Wisconsin 1,038,854,900 1,103,791,700 1,166.159,wD 1,227,121,100 1,316,793,lW 6.69% HISTORICAL DATA 1,404,857,744 1,498,833,324 1,599,083,859 1.706.039,722 1,820,149,404 1,941.891.393 2.071.776.183 2,210,348,408 2,358,189,135 EQUALIZED 1.316.793.100 1,386,277,550 1,455,762,200 1,525246,750 1,594,731,300 1,664,215,850 1,733,700,400 1,803,184,950 1,872,669.500 2.01 1,636,600 1,942,154,050 2,081,123,150 2.150.607.700 2.220.092.250 2,289.576.600 2,359,061,350 2,428,545,900 2,498,030,450 2,567,515,000 6 69% 6.69% 6.69% 6.69% 6.69% 6.69% 6.69% 6.69% 6.69% PROJECTED LINE METHOD- STRAIGHT 1996 1995 1997 1998 1999 Slralght Line Method Value Increment VALUATION 2000 2001 2002 Mo3 2004 2005 2006 2007 2006 GROSS DEBT 65,839,655 69,313,883 72.768.1 10 76,262,338 79,736,565 83,210,793 86,685,020 90,159,243 93,633.475 97,107.703 104,056,158 100,581,930 107,530,385 111.004.613 114,478.840 117,953,068 121,427.295 124,901,523 128,375,750 1,038,854.900 1,103,791,700 1.166.159.000 1,227,121,100 1,316,793,100 $6g,484,550 1.3e6.2n.650 1,455.762.200 1,525246,750 1,594,731,300 1.664.21 5.850 1,733,700,400 1,872,669,500 1,803,184,950 1,942,154,050 BALANCE DEBT 15,500,000 12.585.000 11.445.000 10,330,000 9,275,000 8.460.000 7,660,000 6,920,W 6,140,000 5,415,000 4,650,000 4.1 75,000 3,675,000 3,150,000 2,600.000 2,000,000 1,375,000 700,000 6.69% 5.28% 5.01% 4.77% 4 56% 4.36% 4.01 % 4.18‘6 3.85% 371% BORROWING NET CAPACITY 50,339,655 56.728.883 61.343.110 65,932,338 70,461,565 74,750,793 83,239.248 79,025,020 87,493.475 91,692,703 95,931,930 103,855,385 99,881,158 107,854,613 115,953,068 11 1,878,840 120,052,295 124,201,523 128,375,750 City of Muskego TID No. 8 *Adopted by the Common Council August 22, 2000* Page 5 PROJECTED REVENUE Exhibit 1 (page 6) estimates the TIF revenues that will be available to retire the debt incurred to finance project costs. Exhibit 2 (page 8) 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: = The base value of the District is $4,023,720 = Tax base will be generated as of January 1 each year as follows: 2001 $1,000,000 2002 $4,237,100 2003 $1,912,367 2004 $1,912,367 2005 $1,912,367 The equalized tax rate in 2000 is projected to be $21.50 per thousand (the City's actual equalized tax rate for 1999). 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 No. 8 Adopted by the Common Council August 22, 2000' Page 6 Exhibit 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Base Value 4,023,720 Inflation Factor 1 .OO% Construction Valuation Revenue Inflation Vahe Va/uatjon Tax Tax Year Year Year Increment Added Increment Rate Increment 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201 0 201 1 201 2 201 3 201 4 201 5 201 6 201 7 201 8 201 9 2020 2021 2022 2001 2002 2003 2004 2005 2006 2007 2008 2009 201 0 201 1 2012 2013 2014 2015 2016 201 7 201 8 201 9 2020 2021 2022 2023 2002 2003 2004 2005 2006 2007 2008 2009 201 0 201 1 201 2 201 3 2014 201 5 2016 2017 2018 2019 2020 2021 2022 2023 2024 40,237 0 40,640 1,000.000 51,046 4,737,100 98.927 1.912.367 119,040 1,912,367 139,354 1,912,367 159.872 161,470 163,085 0 164,716 0 166,363 0 168,027 0 169,707 171,404 173.118 174,849 176.598 178.364 180,147 181,949 183.768 185,606 187.462 40,237 1,080.877 5.869.023 7,880,317 9.91 1,724 11,963,445 12,123,317 12.284.787 12.447.872 12.612.588 12.778.951 12,946.978 13,116,685 13,288,089 13,461,207 13,636,056 13,812.654 13,991,018 14,171,165 14,353,114 14,536.882 14.722.488 14,909,950 21 SO 21 SO 21.50 21 SO 21 SO 21 SO 21.50 21.50 21 SO 21 SO 21.50 21.50 21.50 21 SO 21 SO 21 SO 21 SO 21 SO 21 SO 21 SO 21.50 21 SO 21.50 865 23,239 126,184 169,427 213,102 257,214 260,651 264,123 267,629 271,171 274,747 278.360 282,009 285.694 289.416 293,175 296,972 300.807 304.680 308.592 312,543 316,533 320,564 otals I 1,474,200 5,717,690 1 I Present value at 5.75% 2,782,250 ~ ~~~~ City of Muskego TID No. 8 Adopted by the Common Council August 22, 2000' Page 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 year-end balances. Revenues include tax increments from Exhibit 1, capitalized interest, and interest earned investing Expenditures represent payments for principal and interest payments on the District's share of debt issued to finance projects listed in the plan. The tentative proposed issues are identified as follows: Issue No. - Year Descriotion Amount 1 2000 G.O. Bonds $1,270,000 2 2002 G.O. Bonds $1,800.000 Revenues anticipated will be sufficient to meet all obligations in a timely manner and produce a $98,9173 accumulated surplus by the year 2023. City of Muskego T/D No. 8 Adopted by the Common Council August 22, 2000' Page 8 1 I i I 1 I I I* I I I 1 I Exhibit 2 Financial Forecast Revenues: Beginning Balance Capitalized Interest Tax Increments Land Sales Investment Earnings at 5% Property Tax Advance Total Revenue Expenses: I ISSUE 1 Interest Principal UE 2 Interest I Principal Total Expenses I Ending Balance 2000 182.563 182,563 0 0 182.563 2001 2002 2003 2004 182.563 118,666 259,439 119,125 0 207,000 0 0 865 23,239 126,184 9.128 5,933 12,972 5,956 0 0 0 191,691 332,464 295,650 251,265 73,025 73,025 73,025 73,025 0 0 103.500 103,500 73,025 73,025 176,525 176,525 118,666 259,439 119,125 74,740 2005 74,740 169,427 3,737 0 247,904 73,025 50,000 103,500 226,525 21.379 Cify of Muskego TID No. 8 *Adopted by the Common Council Augusf 22, 2000' I Page 9 Financial Forecast 2006 2007 2008 2009 2010 2011 2012 Revenues: Beginning Balance 21,379 11,900 28,934 24,282 28.619 42,429 66,221 Capitalized Interest Tax Increments 213,102 257,214 260,651 264,123 267,629 271.171 274,747 Land Sales 0 0 0 0 0 0 0 Investment Earnings at 5% 1,069 595 1,447 1,214 1,431 2,121 3,311 Property Tax Advance 0 0 0 0 0 0 0 Expenses: ISSUE 1 Interest Princioal ISSUE 2 Interest Principal Total Expenses Ending Balance 70,150 67,275 63,250 57,500 51.750 46,000 40,250 50,000 70,000 100,000 100,000 100,000 100,000 125,000 103,500 103,500 103,500 103.500 103,500 103,500 103,500 0 0 0 0 0 11,900 28.934 24,282 28.619 42,429 66,221 City of Muskego TID No. E Adopted by the Common Council August 22, 2000' Page 10 Financial Forecast 201 3 2014 2015 2016 2017 2018 2019 Revenues: Beginning Balance 75,530 96,104 103,543 73,664 7,513 56.189 69.720 Capitalized Interest Tax Increments 278,360 282.009 285.694 289,416 293,175 296,972 300.807 Land Sales 0 0 0 0 0 0 0 Investment Earnings at 5% 3,776 4,805 5.177 3.683 376 2,809 3.486 Property Tax Advance 0 0 0 0 0 0 0 Total Revenue 351,666 302,910 394,414 366,763 301,064 355.910 314,013 Expenses: ISSUE 1 Interest Principal ISSUE 2 Interest Principal 33,063 25,875 17,250 8,625 0 0 0 125,000 150,000 150,000 150,000 103,500 103,500 103,500 100,625 94,875 86,250 74,750 0 0 50,000 100,000 150,000 200,000 250,000 Total Expenses 261,563 219,315 320,150 359,250 244,075 206,250 324,150 Ending Balance 96,104 103,543 73,664 7,513 56,189 69,720 49,263 ~~~ ~ City of Muskego TID No. 8 'Adopted by the Common Council August 22, 2000' Page 11 I I I I I Financial Forecast 2020 2021 2022 2023 2024 Revenues: Beginning Balance Capitalized Interest Tax Increments Land Sales Investment Earnings at 5% Property Tax Advance Total Revenue Expenses: ISSUE 1 Interest Principal ISSUE 2 Interest Principal Total Expenses Ending Balance 49,263 46.031 60,925 304.680 308.592 312,543 0 0 0 2,463 2,302 3,046 0 0 0 356,406 356,925 376,514 0 0 94,889 98.917 316.533 320.564 0 0 4,744 4,946 0 0 416,167 424,427 60,375 46,000 31,625 17,250 0 250,000 250,000 250,000 300,000 0 310,375 296,000 281,625 317,250 0 46,031 60,925 94.889 98.917 424,427 City of Muskego TID No. 8 'Adopted by the Common Council August 22, 2000' Page 12 DETAILED LIST OF PROJECT COSTS T framework with which to manage projects, All costs included in the plan are estimates based on his project plan is not meant to be a budget nor an appropriation of funds for specific projects, but a best information available. The City retains the right to delete projects or change the scope andlor timing of projects implemented as they are individually authorized by the City Council, without amending the plan. The following budget represents a total cost in the amount of $2,688,000 plus financing and interest costs. This amount will not be exceeded unless this pian is subsequently amended pursuant to Section 66.46 of the Wisconsin State Statutes. The City reselves the right to increase certain project costs to the extent others are reduced or not implemented, without amending the plan. City of Muskego TID No. 8 Adopted by the Common Council August 22, 2000' Page 13 PROPOSED TIF PROJECT ESTIMATES CAPl7ALIZATION SCHEDULE Project Utility Extensions Storm Water Improvements Street Lighting Underground Electric Street Improvements Development Incentives Organization and Admin. .. . SUM6tal: Plus: Issuance Expenses Discount Capitalized Interest Total .. FuridsiNefxt~d . Less: Interest Earned TOTAL BORROWING OO/Ol Amount 75,000 257,000 700,000 50,000 '.l;Og;OOa, 25,000 12.700 182,563 t,,3a2;283. . .. -32.263 1,270,000 02-04 Amount 430,000 68,000 290,000 523,000 270,000 25,000 '1:.606;000 25,000 18.000 207,000 :1',858,ddO .. -56,000 1,800,000 A DESCRIPTION OF THE METHODS OF FINANCING AND THE TIME WHEN SUCH COSTS OR MONETARY OBLIGATIONS RELATED THERETO ARE TO BE INCURRED PLAN IMPLEMENTATION P rojects identified will provide the anticipated governmental services to the area. It is anticipated these improvements will be made over a seven year period. However, public debt and expenditures should be made at the pace private development occurs to assure increment is sufficient to cover expenses. It is anticipated developer agreements between the City and property owners will be in place prior to major public expenditures. These agreements can provide for development guarantees or a payment in lieu of development. To further assure contract enforcement these agreements may include levying of special assessments against benefited properties. 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. financing solutions for the projects as they are implemented. If financing as outlined in this plan proves unworkable. the City reserves the right to use alternate City of Muskego TID No. 8 Adopted by the Common Council August 22, 2000' Page 15 G.O. Bonds Issue No. 1 Proposed Maturity Schedule $1,270,000 The 2000 and 2001 projects are anticipated to be financed with G.O. Bonds to be issued under authority of Wisconsin Statutes Chapter 67 The interest rate used for this is 5.75%. YEAR 2001 2002 2003 2004 2005 2006 2007 2008 2009 201 0 201 1 2012 201 3 2014 2015 2016 TOTAL 50,000 50,000 70.000 100,000 100,000 100,000 100,000 125,000 125,000 150,000 150,000 150.000 PRINCIPAL INTEREST 73,025 73.025 73,025 73,025 73,025 70,150 67,275 63,250 57.500 51,750 46,000 40,250 33,063 25,875 17,250 8.625 846,113 1,270,000 TOTAL 73,025 73.025 73,025 73,025 123.025 120,150 137,275 163,250 157,500 151,750 146,000 165,250 158,063 175,875 167,250 158.625 2,116,113 ~~~ City of Muskego TID No. 8 Adopted by the Common Council August 22, 2000' Page 76 I I I i I 1 1 I I G.O. Bonds Issue No. 2 Proposed Maturity Schedule $1,800,000 The 2003 through 2004 Projects are anticipated to be financed with G.O. Bonds to be issued under authority of Wisconsin Statutes Chapter 67 The interest rate used for this is 5.75%. 2003 2004 2005 2006 2007 2008 2009 201 0 201 1 201 2 201 3 201 4 201 5 201 6 201 7 201 8 2019 2020 2021 2022 2023 TOTAL YEAR PRINCIPAL INTEREST 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 100,625 94.875 86,250 74,750 60,375 46,000 31,625 17.250 1,857.250 50,000 100,000 150,000 200,000 250,000 250,000 250,000 250,000 300.000 1,800,000 TOTAL 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103.500 103,500 103,500 103,500 153,500 200,625 244,875 286.250 324,750 310,375 296,000 281,625 317.250 3,657,250 City of Muskego TID No. 8 'Adopted by the Common Council August 22, 2000' Page 17 I I E 1. a I I m I'. I E h I c Mayor David DeAngelis Mayor Common Council Kathy Chiaverotti Council Member Charles Wichgers Council Member William LeDoux Patrick Patterson Nancy Salentine David Sanders Mark Slocomb City Staff Council Member Council Member Council Member Council Member Council Member Dawn Gunderson Finance Director Jean Marenda City Clerk / Treasurer Brian Turk Director of Planning Sean McMullen Director of Building Laura Mecha City Assessor and Engineering Plan Commission Mayor David DeAngelis Chair Kathy Chiaverotti Member Jerald Hulbert Member Traci Smith Member Neome Schaumberg Member Robert Gummer Member Hany Brodel Member Joint Review Board Dawn Gunderson City Representative Norman Cummings Waukesha County Cary Tessmann Waukesha County Area Technical College George Haynes Muskego-Noway School District Marvin Pinkowski Public Member W 2 z 0 N a0 # H n F m # a e E .. 1, LEGEND e 13E I= V W a 3 QL 00 # e n ;i ww * # e a 7 PROPOSED CHANGES IN ZONING ORDINANCES T he City anticipates the need for changes to its zoning ordinances in conjunction with this project plan in order to implement higher density than currently allowed in the 84 / OPD regulations. PROPOSED CHANGES IN MASTER PLAN, BUILDING CODES AND CITY ORDINANCES I t is expected that this project plan will be complementary to the City's master plan. There are no proposed changes to the building codes or other City ordinances for the implementation of this project plan. A LIST OF ESTIMATED NON-PROJECT COSTS A nticipated construction by private parties: $1 1,474,200 City of Muskego TIL7 No. 6 'Adopted by the Common Council August 22, 2000' Page 22 IO RELOCATION I t 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 Industry, Labor, and Human Relations (DILHR) and if any person is to be displaced as a result of the acquisition. they will be given a pamphlet on "Relocation Benefits" as prepared by DILHR. 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 DILHR and shall keep records as required in Wisconsin Statute Section 32.27 I1 ORDERLY DEVELOPMENT OF THE CITY T ID No. 8 contributes to the orderly development of the City by providing the elimination of a major blight within the City and TID No. 8 will provide the City with additional development located in the City's downtown area. City of Muskego TIL7 No. 8 *Adopted by the Common Council August 22, 2000' Page 23 I to PARCEL LIST 12 City of Muskego TID No. 8 Adopted by the Common Council August 22, 2000' Page 24 OPINION OF CITY ATTORNEY ADVISING WHETHERTHE PLAN IS COMPLETE AND COMPLIES WITH WISCONSIN STATUTES, SECTION 66.46 August 23,2000 Mayor David DeAngelis W182 S8200 Racine Avenue City of Muskego P.O. Box 0749 Muskego. Wisconsin 53150 RE: City of Muskego. Wisconsin Tax Incremental District No. 8 Dear,Mayor. As City Attorney for the City of Muskego. I have reviewed the project plan and various resolutions passed by the City Council, Plan Commission and Joint Review Board regarding Tax Incremental District Section 66.46 of the Wisconsin Statutes. No. 8 located in the City of Muskego. In my opinion, the project plan is complete and complies with Sincerely, Attorney Brian Lanser Quarles & Erady City of Muskego City of Muskego TID No. 8 Adopted by the Common Council August 22, 2000' Page 25 COMMON COUNCIL -CITY OF MUSKEG0 RESOLUTION #175-2000 A RESOLUTION CREATING, DESCRIBING AND MAKING CERTAIN FINDINGS AND APPROVING PROJEC~~LAN ; FOR TAX INCREMENTAL DISTRICT NO.;8 \, ,) /, CITY OF MUSKEGO, WISCONSG ' WHEREAS, the overall development of the City of M recognized as a major need of the City; and WHEREAS, the City of Muskego desires to district, in accordance Statutes (the "Tax Increment Law"), in order to of financing the costs of needed public improvements within create incentives and opportunities for appropriate private to the overall development of the City; and WHEREAS, in in the Tax Increment Law, the Plan the proposed in the City of to express their views; and , i WHEREAS, prio6to its publication, a copy of the notice of said hearing was sent to the chief executive officers of Waukesha County Board of Supervisors and the District Board of the Waukesha County Area Technical College (the other entities having the power to levy taxes on property located within the proposed district) and the Board of Education of the Muskego-Norway School District (the school district which includes property located within the proposed district), in accordance with the procedures specified in the Tax Increment Law; and WHEREAS, afler said public hearing the Plan Commission designated the boundaries of the proposed tax incremental district and recommended to the City Council that it create such tax incremental district within the area enclosed by said boundaries, as specified in the boundary description or map attached to this resolution as Exhibit A hereof, and entitled "Boundary Description or Map of Tax Incremental District No. 8, City of Muskego"; and WHEREAS, the City of Muskego Plan Commission has prepared and adopted a project plan for Tax Incremental District No. 8 which: Reso. #175-2000 Page 2 1 2. 3. 4. 5. 6. 7 8. 9. 10. 11 Includes a statement listing the kind, number and location of all proposed public works or improvements within such district; Contains an economic feasibility study; Contains a detailed list of estimated project costs; Contains a description of the methods of financing all estimated project costs and the time when such costs or monetary obligations related thereto are to be incurred; Includes a map showing existing uses and conditions of real property in such district; Includes a map showing proposed improvements and uses therein; Shows proposed changes of: a. b. d. e. C. Zoning ordinances Master plan Building codes City codes Map Contains a list of estimated non-project costs; Contains a statement of a proposed method for the relocation of any person to be displaced; Indicates how the creation of the district promotes orderly develop- ment of the City; and Contains an opinion of the City Attorney or of an Attorney retained by the City advising the plan is complete and complies with Wisconsin Statutes, Section 66.46(4)(f); and WHEREAS, the Plan Commission has submitted such plan to the City Council and recommended approval thereof. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Muskego as follows: Reso. #175-2000 Page 3 1 Pursuant to the Tax Increment Law, there is hereby created in the City of Muskego a tax incremental district to be known as "Tax Incremental District No. 8, City of Muskego," the boundaries of which shall be those recommended to the City Council by the Plan Commission, as specified in the attached Exhibit A. 2. The City Council hereby finds and declares that: a. Not less than 50% by area of the real property within the said tax incremental district is a'blighted area or is in need of rehabilitation or conservation work within the meaning of Section 66.435(2m)(b) of the Wisconsin Statutes; and b. The improvement of such area is likely to enhance the value of all of the other real property in the said tax incremental district; and c. The equalized taxable property of the said tax incremental district does not exceed 7% of the total value of equalized taxable property within the City of Muskego or the equalized value of taxable property of the district plus the value increment of all existing districts within the City does not exceed 5% of the total equalized value of taxable property within the City. d. The project costs directly serve to promote rehabilitation in the area consistent with the purpose for which the district is created. BE IT FURTHER RESOLVED THAT the City Council of the City of Muskego approves the project plan adopted by the Plan Commission, attached as Exhibit B, and finds that: 1 Such project plan for Tax Incremental District No. 8 in the City of Muskego is feasible, and 2. Such project plan is in conformity with the master plan of the City of Muskego. The City Clerk is hereby authorized and directed to apply to the Wisconsin Department of Revenue, in such form as may be prescribed, for a "Determination of Tax Incremental Ease," as of January 1, 2000, pursuant to the provisions of Section 66.46(5)(b) of the Wisconsin Statutes. Reso. #1752000 Page 4 The City Assessor is hereby authorized and directed to identify upon the assessment roll returned and examined under Section 60.45 of the Wisconsin Statutes, those parcels of property which are within Tax Incremental District No. 8, specifying thereon the name of the said tax incremental district, and the City Clerk is hereby authorized and directed to make similar notations on the tax roll made under Section 70.65 of the Wisconsin Statutes, pursuant to Section 66.46(5)(f) of the Wisconsin Statutes. DATED THIS DAY OF 2000 '. David L. De Angelis, Mayor This is to certify that this a true and accurate copy of Resolution #175-2000 which was adopted by the Common Council of the City of Muskego. Clerk-Treasurer " I EXHIBIT A BOUNDARY DESCRIPTION OR MAP OF' TAX INCREMENTAL DISTRICT NO. 8 CITY OF MUSKEG0 I z EXHIBIT B Project Plan Tax Incremental District No. 8 City of Muskego, Wisconsin Prepared By Ehlers & Associates, Inc. June 12,2000 Mayor David DeAngelis Mayor Common Council Kathy Chiaverotti Council Member Charles Wlchgers Council Member William LeDoux Council Member Patrick Patterson Council Member Nancy Salentine Council Member David Sanders Council Member Mark Slocomb Council Member City Staff Dawn Gunderson Finance Director Jean Marenda City Clerk / Treasurer Brian Turk Director of Planning Sean McMullen Laura Mecha Director of Building and Engineering City Assessor Plan Commission Mayor David DeAngelis Chair Kathy Chiaverotti Member Jerald Hulbert Member Traci Smith Member Neome Schaumberg Member Robert Gummer Member Harry Brodel Member Joint Review Board Dawn Gundenon City Representative Norman Cummings Waukesha County Cary Tessmann Waukesha County Area Technical College George Haynes Muskego-Noway School District Marvin Pinkowski Public Member TABLE OF CONTENTS I ... STATEMENT OF KIND. NUMBER AND LOCATION OF PROPOSED PUBLIC WORKS ..... ......... 2 ECONOMIC FEASIBILITY STUDY ...................................................... ............................ 4 DETAILED LIST OE PROJECT COSTS 13 A DESCRIPTION OF THE METHODS OF FINANCING AND THE TIME WHEN SUCH COSTS OR MONETARY OBLIGATIONS RELATED THERETO ARE TO BE INCURRED ..................... 15 ............................................................................ MAP SHOWING EXISTING USES AND CONDITIONS .......................................... ... 18 MAP SHOWING PROPOSED PROJECTS ................ ..... .............. .................... 20 PROPOSED CHANGES IN ZONING ORDINANCES ........................................................ .22 PROPOSED CHANGES IN MASTER PIAN. BUILDING CODES AND CITY ORDINANCES ............. 22 A LIST OF ESTIMATED NON-PROJECT COSTS ........................................................ 22 RELOCATION ..................................................................................................... 23 ORDERLY DEVELOPMENT OF THE CITY ......... ...... ............................ 23 WITH WISCONSIN STATUTES. SECTION 66.46. ..... ........ .......... . .25 0 OPINION OF CITY ATTORNEY ADVISING WHETHER THE PLAN IS COMPLETE AND COMPLIES City ofMuskego TID No . 8 Drafr Dared June 9. 2000 * I 2 Project Plan Tax Incremental District No. 8 City of Muskego, Wisconsin STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PUBLIC WORKS T ax Incremental District No. 8, City of Muskego (the "Distric?') consists primarily of the old Parkland Mall site, located in the city's downtown area at the corners of Janesville Road. Lannon Road and Parkland Drive. At one time the Parkland Mall was the major commercial development in the City. Today the structure is vacant and partially demolished. creating a significant blight in downtown Muskego. The City of Muskego intends that tax incremental financing (TIF) will be used to assure that this blight is eliminated and that new commercial development occurs in its place. The following is a list of public work projects that the City 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. Q + UTILITY INSTALLATION. In order to provide adequate utilities for new buildings, it may be necessary to extend water mains, sanitary sewer mains or other utilities to this site. STORM WATER RETENTION SYSTEM. Development of the area will cause storm water run off. To avoid problems in the District and adjacent areas, a storm water collection and retention system will be installed + UNDERGROUND ELECTRIC WIRING. In order to improve the appearance of the area and attract high quality commercial development, it may be necessary to bury electric cables. e STREETS. To maintain good traffic flow inside the area and control ingress and egress, it may be necessary to upgrade Lannon and Parkland Drives and install traffic control signs, signals, street lighting, and other street amenities. + ECONOMIC 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 development and assure tax base is generated sufficient to recover project costs. Examples of incentives include. but are not limited to, providing funds for on-site public parking, open spaces. construction of a public pavilion at the Parkland Mall site, and related professional Srvices. + ADMINISTRATIVE COSTS. These include but are not limited to a portion of the salaries of the city's administrative staff, 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. City o/Mukego TID No. 8 * Drafr Dated June 9, 2000 2 3 + ORGANIZATIONAL COSTS FOR THE CITY These costs indude but are not limited to fees of the financial consultant, altomey. engineers, surveyors. map makers and other contracted Services for the City of Muskego. + FINANCE COSTS. Interest. financing fees, redemption premiums, and other financing fees are included as project costs for the City of Muskego. Wtth all projects the costs of engineering, design, survey. inspection, materials, construction, restoring properly 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. Wisconsin Statute Section 66.46, in the written opinion of nationally recognized bond counsel or a courl In the event any of the public works projects are not reimbursable out of the special TIF fund under 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 enter into developer agreements and 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 benefd 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. A portion of costs in the plan are also estimates and subject to change based upon implementation, future assessment policies and user fee adjustments. Cily of Muskego TID No. 8 Drafl Doled June 9. 2000 * 3 4 ECONOMIC FEASIBILITY STUDY T he City of Muskego. located in the southern portion of Waukesha County near Interstate 43, is a community of approximately 20.500 in population. funds necessary to implement the projects in this plan and that the revenue from the District will be The charts and exhibits on the following pages demonstrate that the City will be able to obtain the sufficient to pay for them. Charts I and II respectively on the following page, project the City's equalized were made using two methods. The first projects the future valuation of the City using the average value and show the full faith and credit borrowing capacity of the City. Equalized valuation projections annual percentage of valuation growth experienced between 1995 and 1999. The second method projects the future valuation based upon the average annual increment between 1995 and 1999. This capacity of the City taking into account the straight line valuation projection and existing debt of the City. method is identified as the straight line method. Chart II projects the general obligation borrowing The chart demonstrates that the City is likely to have a general obligation capacity in excess of $79.000.000 during the seven year implementation period of the District. 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. CIry of Uukego T/D No. 8 ' Dmfl Duied June 9, 2000 * 4 EQUALIZED VALUATION PROJECTION City of Muskego, Wisconsin CHART I +PERCENTAGE METHOD+ 1995 1996 1937 1998 1993 Moo 2001 2002 2w3 2M)4 2m5 2006 2007 m 5 Year Trend CHART I1 BUDGET YEAR Moo 2001 2002 m 2004 2005 Mo6 2007 m 2w9 201 0 2011 2012 201 3 201 4 201 5 2016 2017 201 8 1.038.854.900 1.1(13.791.700 1,166,159,000 1.;17.121.100 HlSTORlCAL DATA 1.316.793.100 6.69% Sttaighl Line 1.404.861.744 1.498.833.324 1.599.083.859 1.7ffi.a39.722 1,820.149.404 1,941 .B91.393 2,071.n6.183 2.210.548.408 2,358,189,136 EQUALIZED 1.316.793.100 1.386m.650 1,455,752,200 1.525.245.750 1.594.731 .Jw 1.664.215.850 1.753.700.400 1.803.184.950 1.872.€6¶.500 1.942.154.050 2.01 1.638.600 2.081.123.150 2.150.507.700 2.m.aR.250 2.289.576.800 2.359.ffi1.350 2.428.545.900 2.498.a30.450 2.537.515.033 PROJECTED VALUATION 6.69% 6.6996 6.69% 6.69% 6.69% 6.69% 6.69% 6.69% 6.69% GROSS DEBT LlMlT 65.839.555 69,313,883 72,788.1 10 76,252,538 79.736.565 83.210.793 86.685.m 90.159.248 93,633,475 97.107.703 100.581.930 104.056.158 107.530.385 11 1,004,613 114.478.840 117.953.068 121.427.295 124.901.523 128.375.750 1995 1996 1 997 1998 1993 Method Value Increment Moo 2001 Mo2 m 2004 2w5 2006 2007 m 1.038.854.900 1.166.159.000 1.103.791.700 1.227.121.100 1.316.793.100 )69.484.550 1.386.m.m 1.525.245,750 1.455.762.200 1.594.731.300 1,664.215.850 1.733.700.400 1,803.1 84.950 1.872.€69.500 1.942.154.050 DEBT BAIANCE 12,585,000 15.500,m 11.445.m 10.33o.m 9.275.000 8.460.000 7.660.m 6.920.000 6,140,000 5.415.033 4.650.000 4.175.000 3.675.000 3.150.000 2.600.CCQ 2.000.033 1375.000 700.000 6.69% 5.28% 5.01% 4.77% 4.58% 4.36% 4.18% 4.01 % 3.85% 3.71 % BORROWlNG NET CAPACITY 50.339.655 55,728,883 65,932,238 61.343.110 70,461,565 74.750.793 79.025.020 83,239,248 07,453,475 91.692.703 95,931,930 93.881.158 103.855.385 107,854,613 1 11,878,840 115.953.068 120,052,295 124.201.523 128.375.750 Ciy ofMuskego TID No. 8 * DraJ Dated June 9, 2000 5 6 PROJECTED REVENUE _. Exhibit 1 (page 6) estimates the TIF revenues that will be available to retire the debt incurred to finance projed costs. Exhibit 2 (page 8) summarizes the Distrid's cash position throughout its potential life. Exhibit I projects revenues sufficient to retire the debt proposed to finance all projeds of the Distrid. The pro forma is based on the following assumptions: J The base value of the Distrid is $4,023,720 Tax base will be generated as of January 1 each year as follows: 2001 $1,000.000 2002 $4,237,100 2003 $1,912,367 2004 $1,912,367 2005 $1,912,367 3 The equalized tax rate in 2000 is projected to be $21 SO per thousand (the City's actual equalized tax rate for 1999). It is projected to remain constant throughout the pro forma. Valuations are projected to increase 1% each year because of inflation. City oJMuskego TID No. 8 Dray Dated June 9. 2000 * 6 7 Exhibit 1 I Base Value 4,023,720 Inflation Factor 1.00% 1 Construction V~lualion Revenue Inflation Value Valuation TaX raX Year Year Year Increment Added Increment Rate Increment 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201 0 201 1 201 2 2013 2014 201 5 2016 201 7 201 8 201 9 2020 2021 2022 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 201 1 201 2 2013 2014 201 5 2016 201 7 201 8 2019 2020 2021 2022 2023 2002 40.237 0 2003 40,640 1,000,000 2004 51,046 4,737,100 2005 98.927 1,912,367 2006 119,040 1.912.367 2007 139,354 1,912,367 2008 159.872 2009 161,470 2010 163.085 0 2011 164,716 0 2012 166,363 0 2013 168,027 0 2014 169.707 2015 171,404 2016 173,118 2017 174.849 2018 176.598 2019 178.364 2020 180.147 2021 181,949 2022 183,768 2023 185,606 2024 107.462 40.237 21.50 1,080.877 21 SO 5.869.023 21.50 7,880,317 21.50 9,911.724 21 SO 11,963,445 21 SO 12,123,317 21.50 12,204,787 21.50 12.447.872 21.50 12,612.588 21.50 12,778.951 21.50 12.946.978 21.50 13,116,685 21.50 13,288,089 21.50 13,461,207 21.50 13,636,056 21.50 13,812.654 21.50 13.991.018 21.50 14,171,165 21.50 14,353,114 21.50 14,536,882 21.50 14,722,488 21.50 14,909.950 21.50 865 23,239 126.184 169,427 213,102 257,214 260,651 264,123 267,629 271,171 274,747 278,360 282,009 285,694 289,416 293,175 296,972 300.807 304,680 308.592 312,543 316,533 320,564 otals 11,474,200 5,717,698 Present value at 5.75% 1 City oJMuskego TID No. 8 Dra) Dated June 9. 2000 7 8 @ CASHFLOW The following pro forma (Exhibit 2) summarizes the Distrid's cash position throughout its potential life. It shows revenues, expenses and balances by year. Revenues include lax increments from Exhiba 1. capitalized interest, and interest earned investing year-end balances: Expenditures represent payments for principal and interest payments on the Distrid's share of debt issued to finance projects listed in the plan. The tentative proposed issues are identified as follows: Issue No. - Year DeScriDtiOn Am 1 2000 G.O. Bonds $1,270,000 2 2002 G.O. Bonds $1,800,000 Revenues anticipated will be sufficient to meet all obligations in a timely manner and produce a $98.9173 accumulated surplus by the year 2023. . CiIy ojMuskego TID No. 8 Drap Dated June 9, 2000 8 9 e Exhibit 2 Revenues: Beginning Balance Capitalized Interest Tax Increments Land Sales Investment Earnings at 5% Property Tax Advance Total Revenue Expenses: ISSUE 1 Interest e Principal ISSUE 2 Interest Principal Total Expenses Ending Balance . Financial Forecast 2000 182.563 182,563 0 0 182.563 2001 2002 2003 2004 182.563 118.666 259,439 119,125 0 207,000 0 0 865 23,239 126,184 9.128 5,933 12,972 5,956 0 0 0 191,691 332,464 295,650 251,265 73.025 73,025 73,025 73,025 0 0 103.500 103,500 73,025 73,025 176,525 176,525 118.666 259,439 119,125 74,740 2005 74,740 169,427 3,737 0 73,025 50.000 103.500 226,525 21.379 City ofMuskego TID No. 8 * Drafi Dated June 9. 2000 9 Financial Forecast 2006 2007 2008 2009 2010 2011 2012 Revenues: Beginning Balance 21.379 11,900 28,934 24.282 28.619 42,429 66,221 Capitalized Interest Tax Increments 213,102 257,214 260,651 264.123 267,629 271,171 274.747 Land Sales 0 0 0 0 0 0 0 Investment Earnings at 5% 1,069 595 1.447 1,214 1,431 2.121 3,311 Property Tax Advance 0 0 0 0 0 0 0 Total Revenue 235,550 269,709 291.032 289.619 297,679 315.721 344.280 Expenses: ISSUE 1 Interest Principal ISSUE 2 Interest Principal 70.150 67,275 63,250 57,500 51,750 46.000 40,250 50.000 70,000 100,000 100,000 100,000 100,000 125,000 103.500 103,500 103,500 103,500 103,500 103,500 103,500 0 0 0 0 0 Total Expenses 223,650 240,775 266,750 261,000 255,250 249,500 268,750 Ending Balance 11.900 28.934 24,282 28,619 42,429 66,221 City oJMuskego TID No. 8 *Ora@ Dared June 9. 2000 10 Financial Forecasf 201 3 201 4 2015 2016 2017 2018 2019 Revenues: Beginning Balance 75.530 96,104 103,543 73,664 7,513 56.189 69,720 Capitalized Interest Tax Increments 278.360 282,009 285.694 289,416 293,175 296,972 300,807 Land Sales 0 0 0 0 0 0 0 Investment Earnings at 5% 3.776 4,805 5,177 3,683 376 2,809 3,486 Properly Tax Advance 0 0 0 0 0 0 0 Total Revenue 357.666 382,918 394,414 366,763 301,064 355,970 374,013 Expenses: ISSUE 1 Interest Principal ISSUE 2 Interest Principal 33.063 25,875 17,250 8,625 0 0 0 125,000 150,000 150,000 150,000 103,500 103.500 103,500 100.625 94.875 86.250 74,750 0 0 50,000 100,000 150,000 200,000 250,000 Total Expenses 261,563 279.375 320.750 359.250 244,875 286,250 324,750 Ending Balance 96.104 103.543 73,664 7,513 56.189 69.720 49,263 Financial Forecast 2020 2021 2022 2023 2024 Revenues: Beginning Balance 49,263 46.031 60,925 94.889 98.917 Capitalized Interest Tax Increments 304.680 308.592 312,543 316,533 320,564 Land Sales 0 0 0 0 0 Investment Earnings at 5% 2,463 2,302 3,046 4,744 4.946 Property Tax Advance 0 0 0 0 0 Total Revenue 356,406 356,925 376,514 416,167 424,427 Expenses: ISSUE 1 interest Principal ISSUE 2 lntered Principal Total Expenses Ending Balance 0 0 60,375 46,000 31,625 17.250 0 250,000 250,000 250,000 300,000 0 310,375 296,000 281,625 317,250 0 46.031 60,925 94,889 98.917 424,427 '0 CiIy o$Muskego TID No. 8 * Drafr Dared June 9, 2000 * I2 12 DETAILED LIST OF PROJECT COSTS T his 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 following budget represents a total cost in the amount of $2,688,000 plus financing and interest 66.46 of the Wisconsin State Statutes. The City reserves the right to increase certain project costs to the costs. This amount will not be exceeded unless this plan is subsequently amended pursuant to Section extent others are reduced or not implemented. without amending the plan. 13 City of Muskego 710 No. 8 * DraJ Dated June 9. 2000 13 CAPllALIZATlON SClfEDULE PROPOSED TIF PROJECT ESTIMATES Project I Utility Extensions Stonn Water Improvements 00101 Amount 75,000 257,000 02-04 Amount Street Lighting 68.000 Underground Electric 290,000 f Street Improvements 523.000 Development Incentives e Organization and Admin. Subtotal Plus: 700.000 50,000 700,000 25,000 1,082,000 1,606,000 Issuance Expenses 25,000 25,000 Discount 12,700 18,000 Capitalized Interest 182.563 207,000 Total Funds Needed less: Interest Earned TOTAL BORROWING 1,302,263 -32,263 1,270,000 1,856,000 -55,000 1,800,000 14 . 0 City ofhfuskego TID No. 8 Draft Dated June 9, 2000 14 A DESCRIPTION OF THE METHODS OF FINANCING AND THE TIME WHEN SUCH COSTS OR MONETARY OBLIGATIONS RELATED THERETO ARE TO BE INCURRED PLAN IMPLEMENTATION P rojects identified will provide the anticipated governmental services to the area. It is anticipated these improvements will be made over a seven year period. However. public debt and expenditures should be made at the pace private development occurs to assure increment is sufficient to cover expenses. It is anticipated developer agreements between the City and property owners will be in place prior to major public expenditures. These agreements can provide for development guarantees or a payment in lieu of development. To further assure contract enforcement these agreements may include levying of special assessments against benefited properties. 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. City of Murkego TID No. 8 Drafi Dared June 9. 2000 * I5 16 G.O. Bonds Issue No. I Proposed Maturity Schedule $1,270,000 The 2000 and 2001-projects are anticipated to be financed with G.O. Bonds to be issued under authority of Wisconsin Statutes Chapter 67 The interest rate used for this is 5.75%. YEAR 2001 2002 2003 2004 2005 2006 2007 2008 2009 201 0 201 1 201 2 2013 2014 2015 2016 TOTAL PRINCIPAL INTEREST 50,000 50,000 70.000 100,000 100,000 100,000 100,000 125.000 125,000 150,000 150,000 150.000 1,270,000 73,025 73,025 73,025 73.025 73.025 70.150 67,275 63,250 57,500 51,750 46,000 40,250 33.063 25.875 17.250 8.625 846,113 TOTAL 73,025 73.025 73.025 73,025 123,025 120,150 137,275 163,250 157,500 151,750 146,000 165,250 158,063 175.875 167.250 158,625 2,116,113 City OfMuskego TID No. 8 *Draft Dated June 9. 2000 * 16 G.O. Bonds Proposed Maturity Schedule Issue No. 2 s1,soo.ooo me 2003 through 2004 projeds are anticipated to be financed with G.O. Bonds lo be issued under authority of Wisconsin Statutes Chapter 67 The interest rate used for this is 5.75%. YEAR 2003 2004 2005 2008 2007 2008 2009 201 0 201 I 201 2 201 3 2014 201 5 2016 201 7 mi8 2019 2020 2021 2022 2023 TOTAL PRINCIPAL 50,000 100,000 150,000 200.000 250,000 250,000 250,000 250,000 300.OPO 1,800,000 INTEREST 103,500 103,500 103.500 103,500 103,500 103.500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 100,625 94.875 86.250 74,750 60,375 46.000 31,625 17.250 1,857,250 TOTAL 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 153,500 200,625 244,875 286.250 324,750 310,375 296,000 281,625 317.250 3,657,250 Cily of Muskego TTD No. 8 * Draj Dated June 9. 2000 17 L e a r . 1. Janesville Rd Reconstruction 2. Utility Line Burial 3. Utility Extension 4. Stormwater Improvements 5. Development Incentives (4 lanes w/ blvd and traffic controls) Z 7 PROPOSED CHANGES IN ZONING ORDINANCES T he City anticipates the need for changes to its zoning ordinances in conjunction with this project plan in order to implement higher density than currently allowed in the I34 I OPD regulations. PROPOSED CHANGES IN MASTER PLAN, BUILDING CODES AND CITY ORDINANCES I t is expected that this project plan will be complementary to the City’s master plan. There are no proposed changes to the building des or other City ordinances for the implementation of this project plan. A LIST OF ESTIMATED NON-PROJECT COSTS A nticipated construction by private parties: $1 1,474,200 Civ of Muskego 710 No. 8 Lkaf? Dated June 9. 2000 22 10 RELOCATION I t 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 Clty will take the following steps and actions. Before negotiations begin for the acquisition of properly or easements, all property owners will be provided an informational pamphlet prepared by the Wisconsin Department of Industry. Labor, and Human Relations (DILHR) and if any person is to be displaced as a result of the acquisition. they will be given a pamphlet on "Relocation Benefits" as prepared by DILHR. The City will provide each Owner a full narrative appraisal, a map showing the Owners of all properly 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 DILHR and shall keep records as required in Wisconsin Statute Section 32.27 1 ORDERLY DEVELOPMENT OF THE CITY T ID No. 8 contributes to the orderly development of the City by providing the elimination of a major blight within the City and TID No. 8 will provide the City with additional development located in the City's downtown area. @ Ciry of Muskego TID No. 8 DraB Dated June 9. 2000 23 24 PARCEL LIST a Ciry ojhkkego TID No. 8 * Druj Dated June 9, 2000 * 24 13 OPINION OFCITY ATTORNEY ADVISING WHETHERTHE PLAN IS COMPLETE AND COMPLIES WITH WISCONSIN STATUTES, SECTION 66.46 June 12,2000 Mayor David DeAngelis City of Muskego W182 S8200 Racine Avenue P.O. Box 0749 Muskego. Wisconsin 53150 RE: city of Muskego, Wisconsin Tax Incremental District No. 8 Dear Mayor As City Attorney for the City of Muskego, I have reviewed the project plan and various resolutions passed by the City Council. Plan Commission and Joint Review Board regarding Tax Incremental District No. 8 located in the City of Muskego. In my opinion, the project plan is complete and complies with Section 66.46 of the Wisconsin Statutes. Sincerely, Attorney Brian Lanser Quarles & Srady C@ of Muskego 25 . @ Cify of Muskego TID No. 8 Drafr Dared June 9. 2000 * 25