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CCR2005169. . . COMMON COUNCIL. CITY OF MUSKEGO RESOLUTION #169.2005 A RESOLUTION AMENDING, DESCRIBING AND MAKING CERTAIN FINDINGS FOR APPROVING A PROJECT PLAN AMENDMENT AND AMENDED BOUNDARIES FOR TAX INCREMENTAL DISTRICT NO.8, CITY OF MUSKEGO, WISCONSIN WHEREAS, the overall development of the City of Muskego is recoglnized as a major need of the City; and WHEREAS, Tax Incremental District No.8 (the "District") was created by the City of Muskego (the "City") in 2000. The District consists of the old Parkland Mall site and surrounding properties, located in the City"s downtown area at the corners of Janesville Road, Lannon Road and Parkland Drive. At the time of the District creation, the Parkland Mall site was vacant and partially demolished, creating a significant blight in downtown Muskego. The City of Muskego intended that tax incremental financing be used to assure that this blight is eliminat,ed and that new commercial development occurs in its place. The proposed amendment calls for the removal of the Parkland Mall Site and the addition of parcels that ar'e adjacent to the existing District boundaries that were identified in the City's Redevelopment Plan. In addition, this amendment includes updated and additional cost estimates for projects that were above the amounts estimated and not included in the original plan; and WHEREAS, in order to further the goals contained in the original Project Plan for the District, the City now finds it desirable to amend the District's boundaries to add additional property, as well as subtract property to add same back to the tax roll for the benefit of the taxpayers of the overlapping jurisdictions, and to amend the Project Plan to provide for the undertaking of additional expenditures; and WHEREAS, the City desires to amend the District, in accordance with the provisions of Section 66.1105 of the Wisconsin Statutes (the "Tax Increment L.aw"), in order to provide a viable method of financing the costs of needed public improvements and other project costs within said District and thereby provide incentives and opportunities for appropriate private development, which will contribute to the overall development of the City; and WHEREAS, in accordance with the procedums specified in the Tax Increment Law, the Community Development Authority, on September 12, 2005 held a public hearing concerning the proposed amendment to the Project Plan and boundaries of the District, wherein interested parties were affordl3d 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 officer of Waukesha County, the Muskego-Norway School District, and the Waukesha County Technical College District, and the other entities having Resolution #169-2005 Page 2 . the power to levy taxes on property located within the District, in accordance with the procedures specified in the Tax Increment Law; and WHEREAS, after said public hearing, the Community Development Authority approved the amendment to the boundaries of the District and recommended to the City Council that it approve the amendment to the boundaries, as specified in the boundary description attached to this resolution as Exhibit A hereof, and entitled "Boundary Description of Tax Incremental District No. 8 Amendment, City of Muskego"; and WHEREAS, the Community Development Authority has prepared and adopted a Boundary and Project Plan Amendment to Tax Incremental District No. 8 (the "Amendment") which includes: . a Statement listing the kind, numbE!r and location of all proposed public works or improvements within thE! District, or to the extent provided in Section 66.11 05(2)(f)1., Wisconsin Statutes, outside of thl3 District; b. An economic feasibility study; c. A detailed list of estimated new anel amended project costs; d. 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; e. A map showing existing uses and conditions; f. A map showing proposed improvements and uses; g. Proposed changes of zoning ordinances, master plan, map, building codes and City ordinances; h. A list of estimated non-project costs; i. A statement of the proposed method for the relocation of any persons to be displaced; j. A statement indicating how amendment of the District promotes orderly development of the City; k. Estimate of Additional Territory to bE! devoted to retail business; I. Equalized value test; m. Additional Territory - annexed property; and WHEREAS, the Community Development Authority has submitted sUich Amendment to the City Council and recommended approval thereof. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Muskego as follows: 1. Pursuant to the Tax Increment Law, there are hereby amended the boundaries of, in the City of Muskego, as of January 1, 2005, a District known as "Tax Incremental Diistrict No.8, City of Muskego," the boundaries of which shall be those recommended to the City Council by the Community Development Authority, as specified in the attached Exhibit A, and; . . . . Resolution #169-2005 Page 3 2. The Common Council hereby finds and declares that: (a) Not less than 50% by area of the real property withiin the District, as amended, is a blighted area within the meaning of Section 66.1337(2m)(b) of the Wisconsin Statutes; and (b) Based upon the findings, as stated in (a) above, thE! District remains declared as a blighted area District based on the identification and classification of the property included within the District; and (c )The improvement of such an~a is likely to enhance! significantly the value of substantially all of thE~ other real property in the District; and (d) The equalized value of taxable property of the as District, as amended, plus the value increment of all other existing tax incremental districts within the City, does not exceed 12% of the total equalized value of taxable property within the City; and (e) The City estimates that approximately 75% of the tE~rritory within the District, as amended, will be devoted to retail business at the end of the District's maximum expenditure period, pursuant to Section 66.1105(6)( am)1 of the Wisconsin Statutes; and (f) The project costs of the District, as amended, relate directly to promoting eliminating blight consistent with the purpose for which the District is created. BE IT FURTHER RESOLVED THAT the Common Council of the City of Muskego approves the Amendment to the Project Plan adopted by the Community Development Authority, attached as Exhibit B, and finds that: 1. Such Amendment for the District in the City is feasible, and; 2. Such Amendment is in conformity with the master plan iQf the City. The City Clerk - Treasurer 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, 2005, pursuant to the provisions of Section 66.1105(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 70.45 of the Wisconsin Statutes, those parcels of property which are within the District, specifying thereon the name of the said District, and the City Clerk - Treasurer is hereby authorized and directed to make similar notations on the tax roll made under SElction 70.65 of the Wisconsin Statutes, pursuant to Section 66.11 05(5)(f) of the Wisconsin Statutes. . . '. Resolution #169-2005 DATED THIS 2yth DAY OF Page 4 September ,2005. SPONSORED BY: Mayor Charles Damaske Alderman Schroeder Alderman Salentine Deferred: 9/13/05 This is to certify that this is a true and accurate copy of Resolution #169-2005 which was adopted by the Common Council of the City of ~USkeg~. Lfì?!1<.A 0/1 J /CI~rk- Treasure~ J EXHIBIT A - BOUNDARY DESCRIPTION TO BE ADDED SEPARATELY EXHIBIT B - PROJECT PLAN ATTACHED e Boundary & Project Plan Amendment to Tax Incremental IDistrict No. 8 Within the CITY OF MUSKEGO, WISCONSII~ September 27, 2005 [DRAFT] Se tembE~r 12, 2005 Se tembE~r 12, 2005 Se tember 12,2005 EHLERS Prepared by: EHLERS & ASSOCIATES, INC. 375 Bishops Way, Suite 225, Brookfield, WI 53005-6202 (262) 785-1520 fax: (262) 785-1810 www.ehlers-inc.com & ASSOCIATES INC Tax Incrementaillistrict No.8 Project Plan & Boundary Amendment City of Muskego Officials City Council Charles Damaske Patrick Patterson Chris Buckmaster Neil Borgman Nancy Salentine Bob Melcher Eric Schroeder Eileen Madden Mayor Council Member Council Member Council Member Council Member Council Member Council Member Council Member City Stalf Charles Damaske Janice Moyer Jeff Muenkel Sean McMullen Laura Mecha Don S. Molter, Jr. Mayor City Clerk - Treasurer Planning Director Engineer City Assessor City Attorney Community Development Authority Rob Glazier Suzi Link Gail Miles Frank Waltz, Chairman I\lancy Salentine David Lidbury Eric Schroeder Joint Review Board Mayor Charles Damaske Norman Cummings Cary Tessmann George Haynes Kenneth Laschen City Representative Waukesha County Waukesha County Technical College District Muskego-Norway School District Public Member TABLE OF CONTENTS STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PUBLIC WO<RKS.........................4 E Q U ALIZE D V ALU E TEST .......................................................................................................................... 6 ECONOM IC FEASIBILITY STU DY ....................................... ................ .......... ....... ....... ..... .......................... 7 DETAILED LIST OF ADDITIONAL AND UPDATED PR()JECT COSTS .................................................28 A DESCRIPTION OF THE METHODS OF FINANCING J~ND THE TIME WHEN SUCH COSTS OR MONETARY OBLIGATIONS RELATED THERETO ARE: TO BE INCURRED ........................................30 ESTIMATE OF ADDITIONAL TERRITORY TO BE DEVOTED TO RETAIL BUSINE:SS.........................31 ADDITIONAL TERRITORY - AN N EXED PROPERTy..... ............................. ..................... ........................ 31 A LIST OF ESTIMATED NON-PROJECT COSTS ................................................................ .................... 31 PROPOSED CHANGES IN ZONING ORDINANCES ................................................................................31 PROPOSED CHANGES IN MASTER PLAN, MAP, BUIL.DING CODES AND CITY OF MUSKEGO OR DINAN C ES .................................................................."................................................................. ........32 R E LOCA 1'1 ON ...................................................................".................................................................... .....32 ORDERLY DEVELOPMENT OF THE CITY OF MUSKEC.O .....................................................................32 P ARC E L LiSTS.................................................................".......................................................... ...............33 MAP OF PROPOSED DISTRICT BOUNDARy....... ............... ....... ............ ............... ............. ....................34 MAP SHOWING EXISTING USES & CON DITIONS ........... ....................................... ................................35 MAP SHOWING PROPOSED PROJECTS & IMPROVEMENTS..............................................................36 OPINION OF ATTORNEY FOR THE CITY OF MUSKEGO ADVISING WHETHER THE PLAN IS COMPLETE AND COMPLIES WITH WISCONSIN STATUTES, SECTION 66.1105...............................37 Project Plan TlO No.8 Amendment . Ijl STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PUBLIC L!J WORKS Tax Incremental District No.8 (the "District") was created in 2000 under the authority provided by Wisconsin Statute Section 66.1105. The District was created as a "Blight District" based upon a finding that at least 50%, by area, of the real property within the District is blighted and is in need of rehabilitation within the meaning of Wisconsin Statute Section 66. 1337(2m)(b). This amendment will maintain the 50% blight finding with all remaining parcels and all parcels proposed to be added. All the property is within the Community Development Authority Redevelopment Plan for the Redevelopment District No.2 project area as adopted on June 10, 2003. According to the original Project Plan, the District was formed for the following purposes: . Tax Incremental District No. 8 was created by the City of Muskf~go (the "City') in 2000. The District consists of the old Parkland Mall site and surrounding properties, located in the City's downtown area at the corners of Janesville Road, Lannon Road and Parkland Drive. At the tim9 of the District creation, the Parkland Mall site was vacant and partially demolished, creating a significant blight in downtown Muskego. The City of Muskego intended that tax incremental financing be llsed to assure that this blight is eliminated and that new commercial development occurs in its place. The proposed amendment calls for the removal of the Parkland Mall Site and the addition of parcels that are adjacent to the existing District boundaries that were identified in the City's Redevelopment Plan. In addition, this amendment includes updated and additional costs estimates for projl9cts that were above the amounts estimated and not included in the original plan. In order to further the goals contained in the original Project Plan for the District, the City now finds it desirable to amend the District's boundaries to add additional property, as well as subtract property that currently has no development proposal. The subtracted parcels will be added back to the tax roll for the benefit of the taxpayers of the overlappin!~ jurisdictions. This amendment will also provide for the undertaking of updated and additional expenditures. A map of the District boundary and the areas to be added and subtracted by amendment can be found within this Project Plan. Pursuant to Section 66.11 05(4)(h), Wisconsin Statutes, a City may amend the boundaries of a tax increment finance district to either add or subtract property from the ori!~inal District. Up to four boundary amendments are allowed during the life of the District. This amendment will be the first boundary amendment of Tax Incremental District No.8. . The following is a list of additional public expenditures that the City expects to implement in conjunction with the Amendment of the District. Any costs directly or indirectly related to the public works are considered "project costs" and are eligible to be paid with tax increment revenues of the District. e EHLERS Page 4 "ASSOCIATES INe . . . Project Plan TlD No. 8 Amendment Proposed additional and updated projects costs may include, but are not limited to: acquisition/demolition, environmental audits and remediation, contribution to community development authority, site grading, land acquisition, utility installation, extend water mains, sanitary sewer mains, storm sewer system, other utilities, sitreets, landscaping, economic development incentives or cash grants to owners or leasses or developers of land located within the District (development incentives), professional services, administrative costs, organizational costs, relocation costs, and finance costs. With all projects the costs of engineering, design, survey, inspection, materials, construction, restoring property to its original condition, site preparation, legal and other consultant fees, testing, environmental studies, permits, updating City of Muskego ordiinances and plans, judgments or claims for damages, and other expenses are included as project costs. In the event any of the public works project expenditures are not reimbursable out of the special tax increment finance fund under Wisconsin Statute Section 66.1105, in the written opinion of nationally recognized bond counsel retained by the City of Muskego for suclh purpose or a court of record so rules in a final order, then such project or projects shall be dE31eted herefrom and the remainder of the projects hereunder shall bl3 deemed the entirety of the projects for purposes of this Project Plan Amendment (this "Plan"). The City of Muskego reserves the right to implement only those projects that remain viable as the Plan period proceeds. Project costs or any expenditures made, estimated to be made, or monetary obligations incurred or estimated to be incurred, by the City and outlined in this Plan or the original Project Plan. To the extent the costs benefit the City of Muskego 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. Project costs will be diminished by any income, special assessments or other revenues, including user fees or charges. e EHLERS Page 5 . ASSOCIATES IMe . . . Project Plan TlO No.8 Amendment [gJ EQUALIZED VALUE TEST The following calculations demonstrate that the City is in compliance with 8.66.11 05(4)(gm)4.c. Wis. Stats., which requires that the equalized value of the Additional Ternitory, plus the value increment of the District being amended, plus the value increment of all other existing Tax Incremental Districts ("TIDs"), does not exceed 1 :~% of the total equalizE3d value of taxable property within the City. STEP 1. Calculation of Maximum Equalized Property Value Allowed within Tax Incremental Districts in the City of Muskego Equalized Value (as of January 1, 2005) Maximum Allowable TID Property Value $2,240,489,600 X 12% = $268,81:;8,752 STEP 2. Calculation of Equalized Property ValuE! Currently Located and Proposed to be Located within Tax Incremental Districts Tax Incremental Districts Equalized Value TID NO.8 Increment $1,366,800 TID No.9 Increment $6,683,900 Proposed Base of Additional Territory $9,242,948 Proposed Base of Territory Reductions ($1,008,4'!ill Total Existing Increment Plus Proposed Base $16,285,200 Minus Proposed Territory Reduction The equalized value of the base of the additional territory, minus the proposed territory reductions, plus the value of all other existing Tax Incremental Districts within the City, totals $16,285,200. This value is less than the maximum of $268,858,752 in equalized value that is permitted for the City of Muskego. The City is therefore in compliancEl with the statutory equalized valuation test and may proceed with amendment of this District. o EHLERS Page 6 'ASSOCIATfS INe . . . Project Plan TlO NO.8 Amendment 131 ECONOMIC FEASIBiliTY STUDY The City of Muskego, located in the southern portion of Waukesha County near Interstate 43, is a community of approximately 22,054 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 updated and amended projects in this Plan and that the revenue from the District will be sufficient to pay for them. Charts I and lion the following page project, respectively, the City's equalized value, and 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 avera~}e annual percentage of valuation growth experienced between 2000 and 2004. The second method projects the future valuation based upon the average annual increment between 2000 and 2004. This method is identified as the straight-line method. Chart II projects the general obligation borrowing capacity of the City utilizing the straight-line valuation projection and considering the existing dBbt of the City. The chart demonstrates that the City is likely to have sufficient general obligation capacity during the implementation period of the District. In addition to general obligation bonds, the City can issue 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. Special assessments may be levied against benefitf3d properties to pay part of the street, curb, gutter, sewer and 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 a~}ainst the City's general obligation ("G.O.") debt limit. The City also has the authority to issue LeasEl Revenue Bonds through a Community Development Authority ("CDA") should this financing vehicle be useful in accomplishing the objectives of the Plan. These obligations are secured by lease payments to be made by the City and are not to be counted against the City's G.O. debt limit. Based on the economic characteristics and the financing resources of the City, all projects outlined in this Plan can be financed and are feasiblEl. e EHLERS Page 7 . ASSOCIATES INe Project Plan T/O No.8 Amendment . EQUALIZED VALUATION PROJECTION City of Muskego, Wisconsin CHART I I--PERCENTAGE METHOD----I HISTORICAL DATA 2000 1,407,733,800 2000 2001 1 ,534,663,400 2001 2002 1,651,185,500 2002 2003 1,829,918,300 2003 2004 2,036,879,500 11.17% 2004 Straight Line Method Value Increrrent PROJECTED VALUATIONS 2005 2,264,460,520 11.17% 2005 2006 2,517,469,221 11.17% 2006 2007 2,798,746,643 11.17% 2007 2008 3,111,451,257 11.17% 2008 2009 3,459,094,429 11.17% 2009 2010 3,845,579,855 11.17% 2010 2011 4,275,247,387 11.17% 2011 2012 4,752,921,772 11.17% 2012 2013 5,283,966,827 11.17% 2013 CHART II . BUDGET EQUALIZED GROSS DEBT YEAR VALUE LIMIT 2005 2,036,879,500 101,843,975 2006 2,194,165,925 109,708,296 2007 2,351,452,350 117,572,618 2008 2,508,738,775 125,436,939 2009 2,666,025,200 133,301,260 2010 2,823,311,625 141,165,581 2011 2,980,598,050 149,029,903 2012 3,137,884,475 156,894,224 2013 3,295,170,900 164,758,545 2014 3,452,457,325 172,622,866 2015 3,609,743,750 180,487,188 2016 3,767,030,175 188,351,509 2017 3,924,316,600 196,215,830 2018 4,081,603,025 204,080,151 2019 4,238,889,450 211,944,473 2020 4,396,175,875 219,808,794 2021 4,553,462,300 227,673,115 2022 4,710,748,725 235,537,436 2023 4,868,035,150 243,401,758 2024 5,025,321,575 251 ,266,079 2025 5,182,608,000 259,130,400 2026 5,339,894,425 266,994,721 2027 5,497,180,850 274,859,043 2028 5,654,467,275 282,723,364 2029 5,811,753,700 290,587,685 2030 5,969,040,125 298,452,006 2031 6,126,326,550 306,316,328 . I--STRAIGHT LINE METHOD-I 1,407,733,800 1,534,663,400 1,651,185,500 1,829,918,300 2,036,879,500 $157,286,425 2,194,165,925 2,351,452,350 2,508,738,775 2,666,025,200 2,823,311,625 2,980,598,050 3,137,884,475 3,295,170,900 3,452,457,325 11.17% 7.72% 7.17% 6.69% 6.27% 5.90% 5.57% 5.28% 5.01% 4.77% NET BORROWING CAPACITY 101,843,975 109,708,296 117,572,618 125,436,939 133,301,260 141,165,581 149,029,903 156,894,224 164,758,545 172,622,866 180,487,188 188,351,509 196,215,830 204,080,151 211,944,473 219,808,794 227,673,115 235,537,436 243,401,758 251,266,079 259,130,400 266,994,721 274,859,043 282,723,364 290,587,685 298,452,006 306,316,328 EHLERS Page 8 e . ASSOCIATES INe . . . Project Plan TlD No.8 Amendment PROJECTED REVENUE Exhibit 1 estimates the TIF revenues that will be available to retire the debt incurred to finance project costs. These exhibits also project revenues sufficient to retire the debt proposed to finance all projects of the District. These exhibits are based on the following assumptions: n The original base value of the District is $4,023,720. n The base value of the District after the proposed territory reduction and after the proposed additional territory is added is $12,258,220. r-l Valuations are projected to increase 1 % each year reflecting ordinary inflation of property values within District. n Equalized tax rate is projected to reduce by .05% per year for the next three years and then hold constant for the remaining years oir the district. e EHLERS . ASSOCIATES tNC Page 9 Project Plan TlO No.8 Amendment . . o o [] C-1 c"....:::J TID#8 Possible Project Costs & Added Value GI T1D #8 Existing GJ TID #8 New Amendments ø TID #8 Removed Amendments LJ Property Parcel o Structure -==:1 Right-ai-way i -;. ~\---(ïf\ÕF' . _~ I..r-,---..-----i "T' ~IUSKEGO . ~. o 125 250 500 Feet Scah;t: I .. I. . I ax ,'198.9 O. ,'199.999.002 ,'199.999.064 ,'199.999.063 ect oil C81tiW!1 125 00 evel er's Inceltive 511,000 Develo er's Incentive os ..VoIueAd_ 5463000 51,500.000 5250 000 51,300,000 512,200 LAility Exlension & 52:3.600 5 ,'198.984.005 Devel er'slncentive 2198.991, 2198.992, 2198.993, & 8 2198.995 Qr c- O 0000 ~ç? 0 () - 0_ 0 4Ø> u o aD C) :;:c=> I~ f' L! u . 5592 000 8,100 000 S14.455,OOO PI ami ng Dept. - 9/2005 e EHLERS Page 10 Project Plan TID No. 8 Amendment . #1 Tax Key Number: 2198.990.003 Owner: Glen Kuszewski Sizes: .69 Acres Current Use: Commercial (St. Francis Savings and Loan) Muskego 2010 Future Land Use: Commercial Current Zoning: B-4/0WP Allowed Uses: Almost any commercial use ml3eting the design guidelines of Redevelopment District #2, the underlying zoning, and the accompanying City Design Guidelines. . This parcel is currently developed with St. Francis Bank and surroundin!~ amenities (Parking, Landscaping, etc.). The owners of the parcel have expressed considerable intentions to redevelop the current site or to add on to the existing parcel in order to redevelop. The current site does not meet their needs in regards to size and parking has become limited. An acre or more of land on the existing corner would be the best-case scenario, thus developer incentives to purchase the vacant land surrounding the parcel is warranted. Also, the approved concept plan by the Muskego Community Development Authority for the former Parkland Mall property in 2004 showed St. Francis Bank redeveloped in an expanded location. Thus, the intentions of St.Francis within the coming years are evident. The current parcel contains approximately .72 acres after the ultimate right-of-way portions of the property are removed. Based on the recent sales of commercial property along Janesville Road in the last two years, the City Assessor has approximatl3d that the fair market value of land is about $9 a square foot. Thus, purchasing a half-acre of land from abutting property owners could cost $196,000 or more (21,780 square feet x $9 a square foot). In order to help the property meet their future redevelopment intentions, the amended TID project costs have appropriated 1 :25,000 to offset future site acquisition. The current assessment on this development stands at approximately $61 E5, 700 in 2005 (Land @ $224,500 and Improvements @ $392,200). New site acquisition and redevelopment would greatly increase this assessment. Incentives for this parcel: · Developer's Incentives pertaining to site acquisition and redevelopment: $'125,000 Approximate added value to TID Added land assessment = Approximately $163,000 Added improvement assessment = Approximately $300,000 The current assessment on this development stands at approximately $6Hì,700 in 2005 (Land @ $224,500 ($7.50 a square foot) and Improvemenlts @ $392,200 (3,400 square foot building = $115 a square foot). New site acquisition of a half-acre can raise the land assessment of the property to approximately $163,000 or more ($7.50 a square foot x half-acre) and redevelopment would . greatly increase this assessment. e EHLERS Page 11 . ASSOCIATES INt . . . Project Plan TlD No. 8 Amendment The new site acquisition could also leave the opportunity for redevelopment of the current structure. Using the current structure improvement costs as guide (3,400 square foot building / current $392,200 improvement cost = $115 a square foot), future development to this newly acquired land could raise the improvement assessment another $300,000 or higher (This is assuming that the current structure square footage is increased to 6,000 square feet; NOTE: An additional half acre of land would lend itself to having a great deal more than a 2,600 square foot expansion, but the number is being conservative). o EHLERS Page 12 .. AS SOCIATES IHC Project Plan TlO No.8 Amendment . #2 . . Tax Key Number: 2199.999.002 Owners: DBS Properties Sizes: 1.1 Acres Current Use: Commercial (Burger King) Muskego 2010 Future Land Use: Commercial Current Zoning: B-2/0WP Allowed Uses: Almost any commercial use meetinq the design guidelines of Redevelopment District #2, the underlying zoning, and the accompanying City Design Guidelines. This parcel is currently developed with a Burger King! restaurant and surrounding amenities (Parking, Landscaping, etc.). The parcel itself is rather underutilized as the structure is placed in the middle of the property with parking and asphalt surrounding Bill sides. The parcel owner has been marketing the parcel and staff has talked to prospective developers recently that show the parcel may be redeveloped into a financial institution with over $1,000,000 in improvements within the coming year. Opportunity for developer incentive to aid in razing the current structure is a possibility. The site offers excellent redevelopment potential due to the size and underutilization of the properties resources. The presently developed parcel has a total of one structure upon it. In order to open up potential redevelopment opportunities, the structure would more than likely need to be razed. Typical demolition expenses relate to costs for contractor time and equipment, and costs for disposing of the materials. Costs for razing can vary depending on unaccounted for materials (Ex. Asbestos, etc.), however, the typical cost of razing a structure is from $25-$30 a square foot. Based on the mid range of $27.50 a square foot and the approximatl3 square footage of the present structure on the lot (From City Assessor and GIS records), the following monies would be needed to raze the structures: - One structure @ 3,800 square feet = $1 0,4!50 Lastly, a razing permit in the City of Muskego is based upon squarH footage with the total permit cost not to exceed $500. In order to help the property meet future development intentions, the amended TID proj'9ct costs have appropriated $11,000 to offset future razing costs ($10,500 to offset full costs discussed above and $500 to cover razing permit costs per parcel). Incentives for this parcel: · Developer's Incentives pertaining to structure, razing: $111,000 Approximate added value to TID Added improvement asse:ssment = Approximatelly $1,500,000 The current assessment on this development stands at approximately $798,200 in 2005 (Land @ $279,000 and Improvements @ $519,200). e EHLERS , ASSOCIATE S lite Page 13 . . . Project Plan TlO No.8 Amendment Using the current retail development that is being constructed on the comer of Parkland Drive and Janesville Road as a guide (This development is installing a 16,500 square foot retail convenience center on 1.71 acres that will have improvements being assessed at approximately $1,300,000, which equals $79 per square foot of building), future improvements to this parcel could raise the assessment approximately $1,500,000 (The 1.1 acres allows up to 50% of the lands to be consumed by a structure; We used 40o!c) of the lands, which equals a 19,000 square foot structure; At $79 a square foot of structure as shown above, the improvement assessment would be $1,501,00). Also, the retail convenience Genter incorporated approximately $900,000 worth of structure improvements exclusive of land and this maintained the improvement assessment of $1,300,000. The letter from the commercial realtor looking to redevelopment the Burger King property states that their client would bE3 looking to incorporate a structure in excess of $1,000,000 exclusive of land, which in turn would produce an assessment at about $1,500,000 or more. e EHLERS Page 14 . "5 SO C I' fE S tfilC Project Plan TID No. 8 Amendment . #3 . . Tax Key Numbers: 2199.999.064 Owners: McAdams Realty Muskego LLP Sizes: 2.1580 Acres Current Use: Commercial (Vacant) Muskego 2010 Future Land Use: Commercial Current Zoning: B-2/0WP Allowed Uses: Almost any commercial use meeting the design guidelines of Redevelopment District #2, the underlying zoning, and the accompanying City Design Guidelines. This parcel is currently a vacant lot located to the east of the Pick n' Save and has considerable opportunities for future commercial use or Pick n' Save expansion. Possible incentives include economic developer incentives for the purpose of sharing costs to encourage development that meets the City's goals for design in this area. The landowner split this piece of property off from the parent Pick n' Save parcel earlier this year in order to create opportunities for future development. The landowner also sold another vacant parcel fronting Janesville Road in front of the Pick n' Save earlier this year. This recently sold parcel is developing into a retail convenience center at this time. The current TID amendment does not include developer's incentives for this parcel at this time, although it does realize the immediate future potential for development. Future TID incentives could be used for this parcel if a development demonstrates the need and future payback of requested incentives. Incentives for this parcel: · Developer's Incentives pertaining to new development: $0 Approximate added value to TID Vacant land improvements = Approximatel~, $2,500,000 The current assessment on the vacant land stands at approximately $611,000 in 2005. Using the current retail development that is being constructed on the corner of Parkland Drive and Janesville Road as a guide (This development is installing a 16,500 square foot retail convenience center on 1.71 acres that will have improvements being assessed at approximately $1,300,000, which equals $79 per square foot of building), future improvements to this vacant land could raise the assessment higher than $2,500,000 (The 2.17 acres allows up to 50% of the lands to be consumed by a structure; We used 40% of the lands, which equals a 37,700 square foot structure; At $79 a square foot of structure as shown above, the improvement assessment would be $2,978,300; we brought it down to 2.5 million in order to be conservative). e EHLERS Page 15 . ASSOCIATES UC Project Plan TlO No.8 Amendment . #4 . . Tax Key Number: 2199.999.063 Owners: Outlook Development Group, LLC Sizes: 1.72 Acres Current Use: Being Developed Muskego 2010 Future Land Use: Commercial Current Zoning: B-4/0WP, Uses allowed are the same as #'s 9 & 10 This parcel currently is being developed into a 16,500 square foot structure to house 11 retail/commercial-leased areas. The structure is to be built according to the Downtown Design Guide and the Redevelopment District #2 Guide which promote structures to utilize materials of a residential character and to be harmonious with the natural and built surroundings while avoiding repetition and monotony, and which promote alternating rooflines, increased walk ability of a site, and an overall quality set apart design from other structures found in the City. The structun9 is to be constructed with exterior materials, which include Split Face Decorative CMU, Decade Brick, Precast Banding, and Precast Cap Coping. The structure also includes architectural elements such as alternating rooflines, large storefront glass panes, and decorative coping and pedestals. Parking, cross access, lighting, and landscaping all compliments the site. Incentive possibilities for this parcel: 1. No incentives anticipated for this parcel. Approximate added value to TID 2005 improvements will raise assessment in 2006 to: $1,300,000 The current assessment on the raw land stood at approximately $486,000 in 2005. The City of Muskego Assessor believes that the proposed development will increase the assessment to around $1,795,000 or more resulting in approximately $1,300,000 in added value to the TID ($486,000 for land and $1,309,000 for improvements). e EHLERS Page 16 . ASSOCIATE S IMe Project Plan TlD No.8 Amendment . #5 Tax Key Number: 2198.984.005 Owners: Richard & Terri Knudsen Sizes: .76 Acres Current Use: Vacant Muskego 2010 Future Land Use: Commercial Current Zoning: B-4/0PD/OWP Allowed Uses: Almost any commercial use mEleting the design guidelim~s of Redevelopment District #2, the underlying zoning, and the accompanying City Design Guidelines. This parcel currently sits vacant, however it does have formal Planning Commission approvals allowing a 6-unit commercial retail/office structure. The current property owner has had numerous conversations with staff indicating that the plans to build the structure will happen as soon as possible. The owner has currently divided property on Hillendale Drive in Muskego and wishes to start the retail/office building once that development is complete. The owner of the property has stressed the need for receiving possible TID incentives to aiel in extending water and sewer laterals to the property while also possible incentives for increased architecture and site development. In fact, the Planning Department has a letter from the property owner stating that they would like to build the structure in early 2006, however, certain TIF incentives are desired to make the development happen by this time. . The current parcel sits approximately 150 feet from the Janesville Road right-of-way. The existing water distribution line is approximately 160 feet from the front property line and the existing sanitary distribution line is approximately 185 feet from the front property line. Based on past developments, the City's Engineering Department approximates tho costs of extending laterals the above distances at $30 per square foot for water and $40 per square foot for sewer (Note: Numbers include materials and installation costs). In order to help the property meet their future redevelopment intentions, the amended TID project costs have appropriated $12,200 to offset future utility extensions ($30 sq. foot x 185 feet for sewer; $40 sq. foot x 185 feet for water). Also, a future development would incur extensive sewer and water hookup fees along with water and sewer capacity assessment fees. As per the Sewer and Water Clerks for the City of Muskego a 6-unit commercial structure would incur approximately $24,3SI0 or more (6 base RCA fees at $4,065 each in 2006) in sewer capacity fees and approximately $12,810 or more (7 base WCA fees (One for Fire protection) at $1,830 19ach in 2006) in water assessment fees. In order to help the property meet their future redevelopment intentions, the amended TID project costs have appropriated $18,600 in developer's incentives to offset future water and sewer assessment costs (1/2 of total possible costs). . Lastly, the property owner received approvals during a time when the City's design guides did not make four-sided architecture mandatory. The current structure uses a variety of architectural materials on the front façade of the building including decade !30 brick, stone sills, and dry-vit. The building also incorporates alternating facades. HowevE~r, the sides of the structure will simply be flat faced and utilize a slit-face block. In order to spur a structure that is consistent with the City's design guide and that bettor fits into the existing surroundings, the City would like to appropriate developer's incentives for increased architecture on the sides of the structure. Thus, in order to help the property meet the City's future development intentions, the e EHLERS Page 17 . . . Project Plan T/O No, 8 Amendment amended TID project costs have appropriated $'10,000 in developer's incentives to aid in offsetting upgrades to the structure to include increased architecture. Incentives for this parcel: . Utility Extension Incentives for water/sewer laterals: $'12,200 · Developer's Incentives for water/sewer assessment fees and structure upgrades: $:28,600 Approximate added value to TID Added improvement assessment = Approximately $592,000 The development that was approved would currently consist of a 9,000 squa.re foot building with 6 units for commercial leasing spaces or condo spaces. Parking and landscaping would be incorporated as well. The current assessment on the raw land stood at approximately $68,300 in 2005. The City of Muskego Assessor believes that the proposed development could increase the assessment to around $660,000 or more ($68,000 for the land and $592,000 for improvements (Approx. $65 a square foot)). e EHLERS Page 18 . ASSOCIATE S IMe Project Plan TlO No.8 Amendment . #6 Tax Key Number: 2198.991 Owner: City of Muskego Size: 6.71 Acres (Southern 2 acres fronting Janesville Road is for development) Current Use: Vacant Muskego 2010 Future Land Use: Commercial Current Zoning: B-4/0PD Allowed Uses: Discussed in Attachment 1 below Tax Key Number: 2198.992 Owners: Robert & Margaret Pelzmann Sizes: .41 Acres Current Use: Commercial Real Estate Business (Assist-to-Sell Real Estate) Muskego 2010 Future Land Use: Commercial Current Zoning: B-4/0PD/OWP Allowed Uses: Discussed in Attachment 1 below Tax Key Number: 2198.993 Owners: Joseph D. Konkel Sizes: 1 .24 Acres Current Use: Commercial Retail Business (House of Toys Retail Business) Muskego 2010 Future Land Use: Commercial Current Zoning: RSA/OWP Allowed Uses: Discussed in Attachment 1 below . Tax Key Number: 2198.995 Owners: Jean & Matilde Fethiere Sizes: .92 Acres Current Use: Single-Family Residential Muskego 2010 Future Land Use: Commercial Current Zoning: 8-4 Allowed Uses: Discussed in Attachment 1 below The Community Development Authority (CDA) developed a Request for Proposal RFP for Tax Key # 2198.991 in order to sell the property to a developer that brought forth a development that meets the design criteria for the redevelopment district in this area. The developer awarded the property would enter into a developer's agreement with the City to ensure the development proposed would occur. The RFP did not receive any formal applications. Upon surveying the prospective developers, staff found the following reasoning for the lack of proposals: · The lot shape was hard to work with since the frontage was small and the rear of the property was large; this caused lack of identity for future businesses · Incentives weren't available; if available, such incentives could possibly offset costs of neighboring parcel acquisition, structure razing, and utility extension aid, which could make the parcel more pleasing and open up additional frontage on the main arterial of Janesville Road. . The CDA addressed what the next step was for the parcel at their August 2005 meeting. At that time, the CDA discussed that they would still like to sell the property on the open market (Now o EHLERS Page 19 . ASSOCIATES INt Project Plan T/O NO.8 Amendment . that the RFP due diligence had been accomplished), although they would first like to see the likelihood of including the parcel within the TID #8 in order to hopefully attract future developers once incentive possibilities are known. The Request for Proposal RFP developed by the Muskego CDA included language that the three properties also referenced above (2198.992, 2198.993, and 2198.995) were future development opportunities in conjunction with the City owned parcel. The City has been in contact with the three property owners and has found that they may be interested in the possible sale of their properties with certain conting'3ncies. In fact, the owners of the properties known as the "House of Toys" and the "Residential property" stated that they would like to be formally recognized as an additional redevelopment opportunity for the RFP and would accept contacts from developers regarding acquisition. Thus, would be developers of the City owned property could include these surrounding parcels in their concept plans if they reach an agreement with the property owner. Lastly, City staff has met with developers who were originally interested in the RFP for this area. From them, it was found that a development coulcl indeed occur on these parcels in the near future if certain TIF incentives, such as those mentioned above, are attained. Based on the sizes of the properties, the allowed uses and densities, and the current market conditions, the developers believed that a feasible development made up of the following could occur with the proper incentives: . . The majority of the rear of the lots would be multi-family condominiums. 50 units or more could be built if the development was zoned a planned development and the developers used the density from the wetlands that exist on the back of the parcels. · The front of the parcels fronting the possible 450 feet of Janesville l=load frontage could be office and/or retail center complexes The first element relating to needed incentives to drive development in this area is for property acquisition costs. The following is the calculations b,9hind those anticipated costs: In order to create a new viable development on these properties parcel acquisition needs to be accounted for. Surrounding parcel combination will result in more overall property square footage and expanded frontage creating more opportunities for potential developers. The City of Muskego Assessor assisted the Planning Department in determining the approximate fair market values of the parcels surrounding the City of Muskego parcel when the Community Development Authority was creating the Request for Proposals in May of ~!005. Based on the recent sales of commercial property along Janesville Road in the last two years, the City Assessor has approximated that the fair market vallue of land is about $9 a square foot. Thus, the purchase prices of the abutting parcels to the City of Muskego parcel could reflect the following (Note: prices subject to change based on actual developable area, amount of frontage, and overall desirability): . -Assist-to-Sell property (2198.992): Approximately 17,860 square feet x $9 a square foot = $160,740 -House of Toys property (2198.993): Approximately 54,014 square feet x $9 a square foot = $486,126 -Residential Parcel property (2198.995): Approximately 40,075 square feet x $9 a square foot = $360,675 e EHLERS Page 20 Project Plan TlO No.8 Amendment The prices are approximate in nature and are used to determine base possible costs for supporting parcel acquisitions. In order to help the property meet their future redevelopment intentions, the amended TID project costs have appropriated half of the prices discussed above totaling $504,000 to offset future site acquisitions ($1,007,541 /2). . The second element relating to needed incentives to drive development in this area is razing costs. The following is the calculations behind those anticipated costs: The three presently developed parcels (2198.992, ~~198.993, and 2198.995) have a total of five structures upon them. If the properties were to be combined, the structun3S would more than likely need to be razed to open up larger development opportunities for increased frontage along Janesville Road. Each of the main structures on the three parcels are also currently non- conforming due to location or use, furthering the need for redevelopment and razing. Typical demolition expenses relate to costs for contractor time and equipment, and costs for disposing of the materials. Costs for razing can vary depending on unaccounted for materials (Ex. Asbestos, etc.), however, the typical cost of razing a structure is from $25>-$30 a square foot. Based on the mid range of $27.50 a square foot and the approximate square footages of the present structures on the lots (From City Assessor and GIS records), the following monies would be needed to raze the structures: . -Assist-to-Sell (2198.992): One structure @ "1,500 square feet = $4,1:25 -House of Toys (2198.993): Two structures @ 3,000 square feet (2,000 sq.ft. and 1,000 sq.ft.) = $8,250 -Residential Parcel (2198.995): Two structures @ 1,335 square feet (850 sq.ft. and 485 sq.ft.) = $3,668.50 Lastly, a razing permit in the City of Muskego is based upon square footage with the total permit cost not to exceed $500. In order to help the properties meet future development intentions, the amended TID project costs have appropriated $17,500 to offset future razing costs ($16,000 to offset full costs discussed above and $1,500 to cover razing permit costs per parcel). The last element relating to needed incentives to drive development in this area is utility costs. The following is the calculations behind those anticipated costs: The City of Muskego parcel (2198.991), due to its depth, has development potential rather far back from the Janesville Road right-of-way and would require sewer/water lateral extensions to the back portion of the developable area. The existing water distribution line is approximately 310 feet to the developable back portion of this lot and the existing sanitary distribution line is approximately 325 feet to the developable back portion of this lot. Based on past developments, the City's Engineering Department approximates the costs of extending laterals the above distances at $30 per square foot for watm and $40 per square foot for sewer (Note: Numbers include materials and installation costs). In order to help the property meet future development intentions, the amended TID project costs have appropriated $22,300 to offset future utility extensions ($30 sq. foot x 310 feet for søwer; $40 sq. foot x 325 feet for water). . If combined, due to their depth, the House of Toys and residential parcel (2198.993 and 2198.995) have development potential rather far back from the Janesville Road right-of-way as well and would require sewer/water lateral extensions to the back portion of the developable area. The existing water distribution line is approximately 320 feet to thE~ developable back portion of these lots and the existing sanitary distribution line is approximately 335 feet to the developable back portion of these lots. Based on past developments, the City's Engineering o EHLERS Page 21 . ASSOCIAT[$ I"e . . . Project Plan T/O NO.8 Amendment Department approximates the costs of extending latl3rals the above distance's at $30 per square foot for water and $40 per square foot for sewer (Note: Numbers include materials and installation costs). In order to help the properties meet future development intentions, the amended TID project costs have appropriated $23,000 to offset future utility extensions ($30 sq. foot x 320 feet for sewer; $40 sq. foot x 335 feet for water). Incentives for this parcel: . Utility Extension Incentives for water/sewer laterals (2198.991): . $:22,300 Utility Extension Incentives for water/sewer laterals (2198.993 and 2198.995): $:23,000 $"17,500 . Developer's Incentives pertaining to structure razing: . Developer's Incentives pertaining to parcel acquisition: $!:i04,000 Approximate added value to TID land Assessment from currently tax exempt City parcel = Approximately $450,000 Improvements from Cc)ndos = Approximately $6,000,000 Vacant land improvements = Approximately' $2,100,000 The land assessment on the City owned vacant property could only be speculated, as it is currently tax exempt. Based on land assessments for other commercial properties along Janesville Road, the assessment price of land lis anywhere from $4-$9 per square foot depending on locations and usability. A base of $6 per square foot is used here to be conservative resulting in a land assessment of approximately $491,400 (1.8B developable acres x $6 a square foot). The current assessment on the Assist-to-Sell property stands at approximately $215,400 in 2005 (land @ $117,000 and Improvements @ $98,400). The current assessment on the House of Toys property stands at approximately $300,300 in 2005 (Land @ $139,200 and Improvements @ $161,100). The current assessment on the residential property stands at approximately $196,800 in 2005 (Land @ $130,000 and Improvements @ $Eì6,800). Using the type of development thought to be the most feasible by area developers in this area of Muskego, the following added value was determined: · Upon development of the City owned parcel, the new land assessment would be added to the tax roll and become an added value to the TID. Thus, to be conservative, a new development would add approximately $450,000 in land assessments to the TID based on the possible land value numbers provided above. . If 50 units of multi-family condominiums made up the bulk rear of these lots, an added value for a complex of 50 condo units was determined to be approximately $7,500,000 ($150,000 a unit at 1,100 square feet each). This value added per unit was determined from current condo improvement records for new condos in the City of Muskego as per the City Assessor. In order to be conservative, the added value figure used in the TID calculations was calculated for 40 units totaling $6,000,000. o EHLERS Page 22 . ASSOCIATES IMe . . . Project Plan TID No. 8 Amendment . 40 condo units (1,100 square feet each) could be made up of 2 buildings of 20 units each. Allowing enough area for these condo units in the rear of the property still leaves over 90,000 square feet (Approximately 2 acres) of land along Janesville Road for office and/or retail center complexes (450 feet of fmntage x 200 feet in depth). Under current zoning, the 2 acres allows up to 50% or more of the lands to be consumed by a structure, resulting in a possible 45,000 square foot structure or ~~roup of structures. Seeing the need for the appropriate landscaping, parking and other amenities, a reduction to consuming only 30% of the lands with a structure seems more appropriate. This would result in 27,000 square feet of structure or group of structures. Using the current retail development that is being constructed on thE! corner of Parkland Drive and Janesville Road as a guide (This development is installing a 16,500 square foot retail convenience center on 1.71 acres that will have improvememts being assessed at approximately $1,300,000, which equals $79 per square foot of building), future improvements to the City parcel could raise the improvement assessment approximately $2,100,000 or more (The 2 acres allows up to 50% of the lands to be consumed by a structure; We used 30% of the lands, which equals a 27,000 square foot structure; At $79 a square foot of structure as shown above, the improvement assessment would be $2,133,000) . 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Project Plan T/O No.8 Amendment [!] DETAILED LIST OF ADDITIONAL AND UPDATED PROJECT COSTS A detailed listing of the projects that the City may undertake within the additional territory is found on the following page. All costs are based on 2005 prices and are preliminary estimates. The City reserves the right to increase these costs to reflect inflationary increases and other uncontrollable circumstances between 2005 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. As was discussed in the original Project Plan, it is important to note that this Plan is not meant to be a budget, nor an appropriation of funds for specific projects, but a framework within which to manage projects. Alii costs included in the Plan are estimates based on best information available. The Cit'v 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 further amending this Plan. e Page 28 EHLERS . . . Project Plan TlO No.8 Amendment PROPOSED TIF PROJECT COST ESTIMATES l~~"'~ =cITr1)r......., ~ .. ." ,', .,".".",,;. ',., .. .':ii .,,- i... . ...... .. - , ' .. . iO Proposed TID # lB Amendment Updated Proiect Costs PROJECT LIST Phase I 2007 Utility Extension Street lighting Underground Electric Street Improvements (Widening of Janesville Read) Development Incentives (Widening of Janesville Road) Organization and Administration 67,500 o o o 686,100 75,000 Subtotal 828,600 TOTAL ESTIMATED PROJ ECT COSTS 828,600 Financing Expenses Fees (Advisory, Bond Counsel, Discount, Rating) Capitalized Interest Subtotal 33,028 o 33,028 TOTAL CAPITAL REQUIRED 861,628 Less RoundingJlnterest Earnings (6,628) 855,000 I NET BOND SIZE . EHLERS ;1 e EHLERS . ASSOCIATES IHe Page 29 . . . Project Plan TlO No.8 Amendment ~ 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 necessary anticipated governmental services and/or development incentives to the additional territory. It is anticipated these eixpenditures will be made during 2005. However, public debt and expenditures should be made at the pace private development occurs to assure increment is sufficiElnt to cover expenses. The order in which expenditures 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. In any event, all additional project costs are to bel incurred within the period specified in Section 66.11 05(6)(am) of the Wisconsin Statutes. It is anticipated developer agreements between thEl 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 might include levying of special assessments against benefited properties. The order in which expenditures 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 mark:et 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 futurEl 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 of MU5ikego reserves the right to use alternate financing solutions for the projects as they are implemented. e Page 30 EHLERS . . . Project Plan TlD No.8 Amendment [6] ESTIMATE OF ADDITIONAL TERRITORY TO BE DEVOTEID TO RETAIL BUSINESS Pursuant to Section 66.11 05(5)(b) of the Wisconsin State Statutes the City estimates that 75% of the territory within the District will be devoted to retail business at the end of the District's maximum expenditure period. [1] ADDITIONAL TERRITORY - ANNEXED PROPERTY There is not any property proposed for inclusion within the District that were annexed by the City on or after January 1, 2004. 00 A LIST OF ESTIMATED NON-PROJECT COSTS Anticipated construction by private parties within the Additional Territory only: $14,455.000 ~ PROPOSED CHANGES IN ZONING ORDINANCES The City of Muskego does not anticipate the need: to change any of its zoning ordinances in conjunction with the implementation of this Amended Project Plan. o Page 31 EHLERS . . . Project Plan TlD No.8 Amendment 11 0 I PROPOSED CHANGES IN MASTER PLAN, MAP, BUILDING CODES AND CITY OF MUSKEGO ORDINANCES It is expected that this Plan will be complementary to the City's Master Plan. There are no proposed changes to the master plan, map, building! codes or other City of Muskego ordinances for the implementation of this Plan. [11J RELOCATION It is not anticipated there will be a need to relocate any persons or businElsses in conjunction with this Plan. In the event relocation becomes necessary at some time during the implementation period, the City of Muskego 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 of Muskego 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 of Muskego will file a relocation plan with the Department of Commerce and shall keep records as required in Wisconsin Statute Section 32.27. 11 ~ 1 ORDERLY DEVELOPMENT OF THE CITY OF MUSKEGO Incorporation of the Additional Territory to the District contributes to the orderly development of the City by providing the opportunity for continued gmwth in tax base and job opportunities. e Page 32 EHLERS 'ASSOCIATES lilt . . . Project Plan TlO No.8 Amendment 11 31 PARCEL LISTS Boundaries include only whole parcels and the District is contiguous. TAXKEY TO BE ADDED MSKC2199999002 MSKC2199999063 MSKC2199999064 MSKC2199999065 MSKC2199999066 MSKC2198995 MSKC2198993 MSKC2198991 MSKC2198992 MSKC2198991001 MSKC2199999022 EXISTING MSKC2198981 MSKC2198984005 MSKC2198990004 MSKC2198984002 MSKC2198984006 MSKC2198984003 MSKC2198990003 MSKC2198984001 TO BE REMOVED MSKC2198987 MSKC2198984 MSKC2198986 OWNERNAME DBS PROPERTIES MIKE MICHALSKI AND ASSOCIATES MCADAMS REALTY MUSKEGO LLP MCADAMS REALTY MUSKEGO LLP MCADAMS REALTY MUSKEGO LLP JEAN & MATHILDE FETHIERE JOSEPH D KONKEL CITY OF MUSKEGO ROBERT & MARGARET PELZMANN KJG INVESTMENT INC DBA DHILLON PETRO MART INC MUSKEGO DEVELOPMENT CO LIMITED PARTNERSHIP CATH sa BLD MICHAEL & JILL FITZGERALD RICHARD & TERRI KNUDSEN GREGORY D & SERITA DOLSON PIZZA HUT #503067 C/O PH REAL ESTATE HOLDINGS EDWARD A SCHURMAN CITY OF MUSKEGO - TENNIS COURTS (FREEDOM saUAFIE) GLEN KUSZEWSKI - ST FRANCIS SVGS & LOAN MUSKEGO PARTNERS LLC MARIE O'HALLORAN & STEVEN HINK PARKLAND VENTURE LLC - CiO AD ENTERPRISES ARTHUR D DYER - C/O AD ENTERPRISES e EHLERS . ASSOCIATES INe Page 33 .ç::~ ~ ál c:: '"..., Q) e E: Q. <::( co ~ Cl f::: . . > a: <C C Z ~ o CD I- o - a: l- t)) - C C W t)) o 0.. o a: 0.. LL o 0.. <C :æ: ~ 0> C :.;::::; en 'x Q.) Q.) ..c - o - .9- ..c en c o :.;::::; m Q.) ..... en :!:: "0 C m "0 Q.) > o E Q.) cr: Q.) .0 o - >. ..... o - .:: ..... Q.) ~ Q.) ..c - en m Q.) 3: en m ~ o - ï:: ..... Q.) ~ m c o :-e "0 "0 q: Q.) ..c - en Q.) ;;: 'Z:; C Q.) "0 ' .- ~ 0.. .- m ..... E .g 0> C C :J ._ 0 3: .0 o en = ..., o () - .- ..... Q.) - .c ,~ ~o ~ Q) O:l ~ lJ c CO Q) 'It E Q "C _ c ~ Q) ~ '" ë Q) 21 -6 c: c: Q) Q) E E -g <c: Q) -0 æEQ)Qi lS<c:ì')u ~ '" ;: E ~ OJ Jj~~'>.~;: ....- .J <5 iiiliit;.l- 0001.5'5 FFFu.(/)iE \] 'i3 ~ CJ <) 0 iD ~ lJ) " " "- 1 0 .; I... "" g. !c,~ 0 ;;::.~ r~ !:;::=> ~~ i ... Q..cò j ,.e.. I . i ;' <jz !~ c:\ u 'I~ ~ "( o ,&,.~ 00'71 ....,Ofl..Ìi; .,\ ',_.,) G \\ ,,^, \:, \) 0 o~ c--': . /) 1->, \. \-' g CJ t::;: ~ o o ...n ~ c....- n u en 0: LLI -' % LLI o _I Ql c: .".., Ql e E 0... 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GË </I \ ...t1 \ Ii; -(' ~.~.~ \) 10 CJ o (\.\ o \'1J)>,r- [' ,0 _ ~\ ! (')' "' \~\"Ci>",'<i . b í~ 0 i" 0-;:;) .~-.J! 00 en D:: U.I ...I ::c U.I 41 . Project Plan TlO NO.8 Amendment [ZJ OPINION OF ATTORNEY FOR THE CITY OF MUSKEGO ADVISING WHETHER THE PLAN IS COMPLET'E AND COMPLIES WITH WISCONSIN STATUTES, SECTION 66.1105 September 27,2005 SAMPLE Mayor Charles Damaske City of Muskego W182 S8200 Racine Avenue P.O. Box 0749 Muskego, Wisconsin 53150 . RE: City of Muskego, Wisconsin Tax Incremental District No.8 Amendment . Dear Mayor: As City Attorney for the City of Muskego, I have reviewed the Project Plan Amendment document and various resolutions passed by thl9 City Council, Community Development Authority and Joint Review Board regarding the amendment of Tax Incremental District NO.8 located in the City of Muskego. In my opinion, the Project Plan is completEI and complies with Section 66.1105 of the Wisconsin Statutes. Sincerely, Attorney Don S. Molter, Jr. City of Muskego e Page 37 EHLERS .. ASSOCI"TES 'Me