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PCR1982052. , Resolution No. P.C. 52 - 82 RESOLUTION MENDING A PRWECT PLAN FOR TAX INCREMENTAL DISTRICT NWRER 3 PLANNING COMMISSION OF THE CITY OF CUSKEGO. UISCONSIN WHEREAS, the Plannfng Cornissfon adopted resolution P.C. 6 - 82 amending a project plan for Tax Incremental Dfstrict No. 3; and UHEREAS. the Comnon Council referred resolution P.C. 6 - 82 back to the Planning Comnission for reconsideration; and 39 - A2 dfrectfng Ehlers and Associates to prepare an amended project plan for Tax Incremental nistrict No. 3; and WHEREAS. on May 4. 1982 the Planning Comnission approved resolutfon UHEREAS, the Planning Comnfssion has notified the chief executive offfcers of all local government entitles having the power to levy taxes on property within the distrfct. including the school board of any school dlstrfct whfch Includes property within the dfstrict; and UHEREAS, a puhlic hearing has been properly notfced and held by the opportunity to express their views on the proposed amended project plan; and Planning Comnissfon wherein interested parties were afforded a reasonable WHEREAS, the Plannfng Ccnmnisslon has prepared an amended project plan for Tax Incremental District Number 3. which will: Update the project plan to reflect actual costs of projects completed; delete, add and reschedule projects; reduce cost5 and add to costs of varfous projects as outlfned in the amended project plan (copy attached). WHEREAS, the proposed amended project plan, a copy of whfch is attached as Exhibit A, shall not extend the implementation more than five years after the district was created; and .. UHEREAS. the amended project plan has been compared wfth the city master plan; 1. Such amended project plan for Tax Incremental Ofstrlct Number 3, City of Muskego Is feasible, and 2. Such amended project plan is In confonfty with the master plan Of the City of Muskego. BE IT FURTHER RESOLVEn that the Plannlng Comnlssion of the Clty of Huskego approves such amended project plan for Tax Incremental nistrict Number 5. pursuant to the provlsions of Section 66.46. Hisconsin Statutes, and reconmends to the Comnon Council the adoptlon of the amended project plan. Attest: 1 nda. Recording Secretary ct'ty of Huskego Planning Comnlssion . COUNTY OF UAUKESHA\ CITY OF NSKEGO i ss- I, the undersigned, being the duly qualified and acting City Clerk of the City of Muskego. Wisconsln. 00 HEREBY CERTIFY that I have carefully compared the attached and foregoing resolution of the Planning Comnission of the Clty of Muskego, Wisconsin. which was approved and reconmended to the Comnon Council by the Planning Comnission on June 1, 1982. and that the same is a full, true and correct transcript thereof insofoar as said resolution related to approving an amended project plan for Tax Incremental District Nulber 5. City of Muskego, Ylsconsin. UITNESS f4y hand offlcially dnd the official seal of said city thls , 1982. drlottc Stewart / City Clerk (CITY SEAL) F I- EHLERS AND ASSOCIATES, INC. FINANCIAL SPECI4LISTS 'IRST NATIONAL-SO0 LINE CONCOURSE SO? MARQUETTE AVE. MINNEAPOLIS. MlNNESLlTb 55402 339-0291 IAREA CODE 6121 Amended Project Plan Tax Incremental District No. 3 City of Muskego, Wisconsin I. Statement of Kind, Number and Location of Proposed Public Works Tax Incremental District No. 3 (TI0 No. 3) of the City of Muskego was created to promote industry as authorized in Wisconsin Statutes 66.52 to to relieve the burden of residents and home owners. One industry is already provide greater employment opportunities and to broaden the property tax base located in the district and upgrading of streets and highways and providing additional sanitary sewer capacity are necessary for further development of the district. Other public works are necessary to provide for this growth and any direct or indirect costs of these projects are considered project costs of of the district. All projects include the cost of engineering, design, the tax incremental district and are eligible to be paid from tax increments survey, inspection. materials, construction, installation, acquiring of property or easements, restoring property to its original condition, apparatus necessary for the public work, legal and other consultant fees, permits, expenses included as project costs including but not limited to: testing, environmental studies, judgements or claims for damages and other A. E. C. 0. E. Road improvemements to Martin Drive including widening. straightening, graveling, paving, ditching, curb, gutter, sidewalks and bike paths. feasibility of providing additional sewer capacity either with the Pro rata share of sanitary sewer facilities study to evaluate the Milwaukee Metropolitan Sanitary District or with a treatment plant of its own. Pro rata share of a major sanitary sewer interceptor will interconnect the two sewer treatment plants and eventually connect Muskego sewers to the Milwaukee metropolitan system or a new facility of the city. Muskego Drive improvements and storm water drainage necessary to provide emergency vehicle access to the district and within the district. Said improvements will not include the unnecessary widening of Muskego Drive. Park development including recreation equipment, athletic fields, playgrounds, fencing, sodding, planting and other site work. City of Muskego Tax Incremental District No. 3 Page 2 F. Imputed administrative costs including but not limited to a portion of the budget for city administratlon, building inspection, assessing, zoning. planning, public works. legal and financial fees. G. Organizational costs including but not limited to the fees of the financial consultant, attorney, planner, engineers, surveyors, map makers and other contracted services. publication and supplies. H. Capitalized interest, finance fees, bond discounts, bond redemption premiums, bond legal opinions, ratings, capitalized interest, bond insurance and other expenses related to financing. I. Pro rata share of capital costs contribution for any project providing metropolitan system, some other joint project or construction of a new sewerage treatment capacity, such as a hookup to the Milwaukee might take the form of a long-term contract with a joint facility or or expanded Muskego owned facility or facilities. This project cost owned facility. This allocation of project cost shall not be financed debt to pay for capital costs to a metropolitan, jointly owned or city or expended for any other purpose. J. Police equipment and a portion of the cost of a tornado warning system. K. Little Muskego Lake. Planning and engineering costs related to this project. L. Little Muskego Lake Drainage. City of Muskego Tax Incremental District No. 3 Page 3 11. Economic Feasibility Study The City of Muskego's corporate limits are almost coterminous with those of the former six mile square Town of Muskego in the southeast corner of Waukesha County. Three large lakes enhance the landscape. Most urban development is concentrated around the lakes and in the northeast corner Milwaukee County and County Highway Y provides connection to the City of closest to Milwaukee. State Highways No. 15. 24 and 36 connect Muskego to Waukesha. The city is 20 minutes west of General Nitchell Field, serving Milwaukee with scheduled airline service, and 15 minutes south of the Waukesha County Airport with nonscheduled service. Muskego has become a regional retail shopping center with the opening of Parkland Mall. its largest taxpayer. Recognizing the need for expanded industrial tax base. the city opened and partially serviced an industrial park in 1972. All 110 acres in the park are now serviced with sewer, water and streets. Marek Lithographics. Inc., creative lithographers, was the first industry to locate in the park. This , company, with 23 employees, has been located in Muskego approximately 7 years. employing 36. has been located in the industrial park for 6 years. Brodel Interstate Tool and Engineering Corporation. a tool and die manufacturer Machine Corporation moved from Milwaukee to the industrial park about 5 years ago. This company subcontracts machining. Other businesses in the industrial park include Robert A. Gumieny. a wholesale beer distributor; Alpine Lanes, a Corporation. bowling alley; Lloyd Ham Contractors; Tinti Contractors; and Ludman Machine Other industries in Muskego include Muskego Rendering Co., which has 36 employees, Reynolds Machine Company, Inc., with 52 employees and Precision Schrew Thread Corporation with 70 employees. ordinances and long range capital improvement finance planning to control The city has used a combination of land use zoning, subdivision control devleopment within the comnunity. Land use zoning concentrates development in that portion of the city most adjacent to Milwaukee. Subdivision ordinances assure quality construction and restricted density levels. All city capital improvement financing to be repaid from general revenues is limited to a self-imposed debt service limit of 0.34% of assessed value. The city is under an order by the Idisconsin Department of Natural Resources which prohibits it from allowing additional connections to its sanitary sewer system. This moratorium against future sewer connections prohibits the city which were approved prior to the moratorium. Recause the city is within the from issuing new construction building permits in all but three subdivisions Milwaukee Metropolitan Sewer Service Area, which is under a court order specifying discharge standards, the City of Muskego is unable to expand its 0 Resources. The city and the state are cooperating in seeking judicial review sewer facilities under the regulations of the Department of Natural of this dilemna and the lifting of the sewerage moratorium, subject to a justified. determination that expansion of the Muskego temporary treatment plants is City of Muskego Tax Incremental District No. 3 Building permit data has been as follows: Single fami ly Valuation Multi-family Valuation Remodeling and Valuation Garages Valuation Commercial Valuation Valuation Other permits additions 1976 158 $5,567.368 9 $1,052,000 147 $464.736 39 $1 12,430 7 $608,506 227 $310,348 - 1977 - 1978 158 94 66,887,885 $5,218,248 0 0 0 0 $507.257 169 , $351,878 120 42 42 $122.624 $123,578 11 14 $599,600 $1,800,778 $293,395 158 130 $295,563 The following is a summary of U. S. Census data for the city. Population Trend: 1950 U. S. Census 4,157 1960 U. S. Census 8.888 1970 U. S. Census 11,573 1980 Preliminary U. S. Census 15,020 Page 4 1979 - 68 63,932,530 0 0 100 $757,506 36 $1 11,962 5 $1,275,000 126 0 $436,648 0 0 City of Muskego lax Incremental District No. 3 Income/Age/Education Data: Per capita income Mean family income Median family income Percent below poverty level Percent above $15,000 income Median school years completed Median age Housi nl: Percent owner occupied Percent one unit structure Percent built before 1939 Percent built after 1959 Owner median value Median contract rent City of Muskego $ 3,194 93.042 $12,581 31.9% 3.8% . 12.4 , 23.8 89.0% 94.2% 23.5% 27.7% $22,900 $105 Waukesha County $ 3,634 $14,285 $12,795 3.2% 34.3% 12.5 25.4 77.9% 83.4% 28.3% ~~ ~ ~ .~ $25,300 33.3% $122 Page 5 State Overall Average $11,135 $ 3.046 $10.068 19.8% 7.4% ~ 12.1 27.2 69.1% 70.7% 52.7% $17,300 20.2% $91 City of Muskego Tax Incremental District No. 3 Page 7 revenue bonds to be repaid from revenues of the sewer and/or water system, In addition to general obligation bonds, the city can issue mortgage including revenues paid by the city that from any source represent the service of the system to the city. There is no statutory or constitutional limitation on the amount of revenue bonds that can be issued. However, sewer and water rates of the city.are controlled by the Wisconsin Public Service Comnission and the city must demonstrate to bond underwriters its ability to repay revenue debt with the assigned rates. It is anticipated that special assessments may be levied to benefitted extensions. The city can issue special assessment "8" bonds pledging revenues properties to pay part of the cost of street. curb, gutter, sewer and water from special assessment installations to the extent assessment payments are outstanding. These bonds are not counted against the city's constitutional debt limit. The creation of a Tax Incremental District allows the city to consider the use of tax increment notes or bonds. This security would be retired from Any use of this security would require a historic record of tax increment tax increment revenues generated solely within this tax incremental district. adequate revenues. To date this security is not marketable and its revenues that would demonstrate the ability of the district to generate marketability is dependent on a Supreme Court decision. the city, all projects outlined in this project plan can be financed and are feasible. Based upon the economic characteristics and the financing resources of . City of Muskego Tax Incremental District No. 3 Page 8 TID No. 3 has already experienced a substantial increase in property values from its 1979 base of $945,850 to J2.743,lOO as of January 1, 1981. This increase entitled the city to $25,681 TIF revenues collected in 1981 and $35,700 to be collected in 1982. This historical data was incorporated into the following pro forma which projects revenues sufficient to retire the debt already incurred and that proposed to finance all projects of this district. The pro formas is based upon the following assumptions: The base value of the district with an adjustment for the exemption of Line A personal property is $945.850. Private development which results in new tax base will be generated as of January 1 as follows: 1981 J1,000,000 1982 750.000 1983185 z,ooo;ooo 1986/90 1,250.000 The 1982 equalized tax rate of $18.09 per thousand will decline at the rate of 256 per thousand per year. Property values will continue to increase at the rate of 6% per year because of inflation. WISCONSIN TAX INCREMENT PRO FORMA FOR: HUSKEGO BASE VALUE 945,850 INITIAL INCREMENT INFLATION RATE 6.0% TOTAL NEW CONSTRUCTION 14,000,000 INITIAL TAX RATE 17.59 TAX RATE INCREMENT -.25 0 YEAR VALUATION INCREMENT PREVIOUS INFLATION 1981 1983 1982 1984 1985 w 1988 1989 1990 1991 945,850 0 2,432,320 0 2,743,100 164,586 4,892,147 7,185,676 293,529 9,616,817 431,141 577,009 12,193,826 731,630 14,175,455 850,527 18,502,541 1,110,152 3,907,686 234,461 16,275,982 976,559 1992 20,862 1993 23,364 1994 24,766 1995 26,252 1996 27.827 CONSTRUCTION TOTAL INCREMENT VALUATION 0 2,432,320 0 2,743,100 1,000,000 3,907,686 750,000 4,892,147 2,000,000 7,185,676 2,000,000 9,616,817 2,000,000 12,193,826 1,250,000 14,175,455 1,250,000 16,275,982 1,250,000 18,502,541 1,250,noo 20,862,694 455 1,401,867 694 1,251.762 1,250,000 23,364,455 0 24,766,323 302 1,575,138 323 1,485,979 0 26,252,302 0 27,827,440 440 1.669.646 0 29,497,087 1997 29,497,087 1,769,825 0 31,266,912 1998 31,266,912 1,876,015 0 33,142,927 TO.TALS 14,000,000 - TID 3 RATE TAX 16.6 18.3 17.6 17.3 17.1 16.8 16.6 16.3 16.1 15.8 15 I 6 15.3 15.1 1+,8 14.6 14.3 14.1 13.8 REVENUE TIF 25,681 35,700 54,763 71,055 109,227 148,569 189,116 218,646 249,099 280,497 312.865 346,225 361,736 377,795 394,412 411,597 429,358 447,704 4,464,01+5 EXCLUSIVE PROGRAM BY EHLERS R ASSOC, INC. [I 2 F 9 City of Muskego Tax Incremental District No. 3 Page 10 Exhlblt 1 demonstrates TIF revenues along with capitalized interest and other debt for TIF projects. revenues to be collected would be sufficient to retire existing and proposed Issue 1 which has entries for principal only represents this district's share of $670,000 G.O. notes issued in 1979 and $1.225.000 G.0. notes issued in 1980. The city will issue 54,250,000 short tern G.O. promissory notes early in 1982 to finance projects to be completed during the year. Late in 1982 $9,500,0110 G.O. promissory notes will be issued for 1983 projects. Both these note issues will be refinanced with long term G.O. bonds in the fall of 1983. this district. Issue 2 represents principal and interest payments of that issue allocated to Issue 3 represents this districts pro rata share of capital cost contribution for sewerage treatment capacity through hookup to the Milwaukee Metro Sewer System. 0 0 0 a e2 D =. z " m r c! 3 D r m Y n m z v, r* Ln 6'. Lo Lnrn cc mm uu u 3 rJ w c r e r i u City of Muskego Tax Incremental District NO. 3 Project Schedule Tax Incremental District No. 3 Page 14 0 Project (A) Martin Drive improvements (B) Sanitary sewer facilities study (C) Major sanitary sewer interceptor (D) Muskego hive improvements (E) Park development (F) Administrative costs (G) Organizational costs (I) Capital cost contribution for any sewerage treatment project providing capacity (J) Tornado warning system & Police equipment - 1979 1980 1981 1982 1983 - - - $121,672 $ 2.183 3.328 31 ,non 5,non s 5,000 5.000 3,720 a 150,918 (K) Little Muskego Lake (L) Little Muskego Lake rehabilitation 94.000 9n.nno drainage - 15n.0~~ Totals " S125,392 fin4.511 S265,noo s240.568 City of Muskego Tax Incremental District No. 3 Page 15 IV. A Description of the Methods of Financing and the Time when such Costs or Monetary Obligation related thereto are to be Incurred A. In 1977 the city issued S1.310.000 general obligation bonds to finance in part the payment to the Town of Norway and $320.000 and $365,000 nonassessable sewer costs for the Lake nenoon area. This principal and interest on these bonds is the responsibility of represents 52% of the principal of the issue. Thus, 52% of the TID No. 1 as follows: Total principal and interest $1,875.081 Times 52% X .51 TID No. 1 share of debt payments Yisconsin Statutes 66.46(6)(c) shall be made to the sinking fund for Transfers of money from the tax increment fund as authorized by these bonds from time to time until $975,042 has been paid. Of this same bond issue, $400,000 was for the construction of a police building, of which $19,825 principal has been repaid. Thus, loan of $1,451,312.50 is the liability of TI0 No. 7. 30.5% or $442,650 of the remaining principal and interest on this E. In 1979 the city issued promissory notes totalling S670,000, a portion of which was used to finance planning costs for the city's seven tax incremental finance districts, payment to the Town of costs allocated to TID Ho. 1 and other projects within various Norway Sanitary District that portion of treatment and interceptor districts. In December, 1980 the city issued $1.225.000 G.O. promissory notes to fund TIF projects completed in 1980 and for costs in each of the seven districts. A total of 64.07% principal planned 1981 capital projects some of which were eligible project and interest of these two issues will be apportioned to the seven districts as shown below. Transfers of monies from the tax increment time to the sinking funds of these notes until the obligation of the funds as authorized by W. S. 66.46(6)(c) shall be made from time to various districts has been met. TI0 No. 1 TID No. 2 TIP No. 3 TlD No. 5 TID No. 4 TIn No. 6 TID No. 7 Principal and Interest $406.875 .563;627 382,141 55.342 48,231 22,260 502,410 All proceeds from the 1980 issue are not yet expended. therefore, in future annual reports. final proration of this and future issues will be made and reported City of Muskego Tax Incremental District No. 3 C. 1982 Promissory Notes Page 16 Short term G.O. promissory notes will be issued early in 1982 to finance various projects of the seven districts to be constructed or purchased during 1982. The note issue is calculated as follows: Project costs TID No. 1 TID No. 2 TIn No. 3 TIn No. 4 TID No. 5 TID No. 6 TID No. 7 Total Note discount Finance fees Interest during construction Note issue $ 642.000 260.000 298.365 515,000 65o.000 1,280,500 $3.645.865 Total principle and interest of these notes will be apportioned to the seven districts as shown below: TID No. 1 17.61 TI0 No. 2 14.13 TID No. 3 TIn No. 4 17.83 7.13 TID No. 5 8.18 TID No. 6 .on TI0 No. 7 35.12 with long ten G.0. Ronds to be issued late in 1983. It is anticipated these notes will mature in 1984 and will be refinanced .. City of Muskego Tax Incremental District No. 3 Page 17 D. 1982 Promissory Notes Late in 1982 short term G.O. promissory notes will be issued to finance various projects of the seven districts to be constructed or purchased during 1983. The note issue is calculated as follows: Project costs TID No. 1 s 510,000 TIn No. 2 887.050 TID No. 3 TID No. 4 235.568 2,037,000 TIT) No. 5 TIn No. 6 917,960 TIT) No. 7 1,214,700 2,510,350 Subtotal f8,312,628 Note discount 190,onn Finance fees 49,000 Interest during construction 948,372 Note issue Total principle and interest of these notes will be apportioned to the seven districts as shown below: TIn No. 1 6.14 TID No. 2 10.67 TID No. 4 TI0 No. 3 2.83 24.50 TI0 No. 5 11.04 TIn No. 6 Tln No. 7 14.61 ~~ 30.21 with long term G.0. Bonds to be issued late In 1983. It is anticipated these notes will mature in 1984 and will be refinanced City of Muskego Page 18 E. 1983 6.0. Bonds It is anticipated that in the fall of 1983 the city will Issue long tern General Obligation Bonds to refinance the short ten pranissory notes issued during 1982 for 1982 and 1983 projects. This will allw the city to take advantage of the maximum number of years allowed to generate tax increments without extending any maturities beyond 15 years which is compatible with today's market demand. It is likely this will result in a substantial interest saving. as well as allow the city to issue only enough long term debt to fund projects actually completed. Assuming all projects included in the project plans of the seven districts are completed. the bond issue is calculated as follaws: 1982 Promissory notes f 4.250.000 1982 Promissory notes 9.5no.000 Totdl f13.750.0n0 Bond discount 330.000 Finance fees 56 nno CapitdliZed interest 2,364,000 0 Bond issue .. EXHIBIT - 3.00 ZOMPUTER RUN FOR MUSKEG0 TID DEBT SERVICE PLANNING 6/ 1/82 PRINCIPAL ~16,500,000 INTEREST RATE 9.7500X DATE OF BONKS 1983 DENOH. BLOCK 5000 FIRST MATURITY 1986 YEAR 1934 1935 1906 * rs7 llS8 1939 1990 1991 1997- 1993 4" 1991, 1995 . 1996 1997 1998 TOTALS INTEREST 1ST YR 1.250 TIHES YEARS INTEREST' PRINCIPAL INTEREST TOTAL 0 2,010,937.50 2,010,337.50 50,IJOO 1,608,750,OO 1.658.750.00 0 1,603,750,OO 1,608,750.00 100,000 1,599,000.00 1.699.000.00 50,000 1,603,875.00 1,653,975.00 250,000 1,579,500.00 1,829,500.00 100,ooo 1,589.250.00 i,689,250.00 500.000 1,555.125.00 2,055,125.00 750,000 1,506.375.00 2,256,375-00 1,000,000 1,433,250.00 2,433,250.00 1,500,000 1,235,750.00 2,835,750.00 2,000,000 1,189,500.00 3,189,500.00 3,000,000 994,500.00 3,994,500.00 3,700,000 702,000.00 4,202,000.00 360,750.00 4,060,750.00 3,500,ooo 16,500.000 20,577,312.50 37,177,312.50 A'JE DEbT SER,VICE FROM 1983 TO 1998 2,478,488 :iVE DEbT SE'RVICE FROH 1986 TO 1998 2,5a1,3c~6 3OND YEARS 212.075.0000 ,.nil€ MATURITY 12.8530 "HOGRAH COPYRIGHT EHLERS AND ASSOC., INC, 3/1/1979. 6/2/1981 0 1 F 3 .. City of Muskego Tax Incremental District No. 3 Page 20 $827,700 per year for 15 years or $12,415,500. This cost must be pro rata It is anticipated Muskego's payments for Milwaukee Metro Sewer will be divided as follows: shared with the entire sewer service area. The TIDs share a total of 27.83% District Percent Dol 1 ar Amount TID No. 2 7.66 $ 951.027 TID No. 3 1.28 150.918 TID No. 4 8.68 TID No. 5 1,077,665 2.55 316,595 TID No. 6 6.13 761,070 TID No. 7 1.53 189,957 27.83 $3,447,232 These amounts will be transferred from the appropriate TID fund from time to time until this obligation has been met. The city reserves the right to use these funds for other sewage treatment facilities should the Milwaukee Metro solution prove unworkable. .. City of Muskego Tax Incremental District No. 3 V. Map Showing Existing Uses (attached) VI. Map Showing Proposed Projects (attached) Page 21 VII. Proposed Changes in Zoning Ordinances There are no changes needed in zoning ordinances to comply with this plan. VIII. Proposed Changes in Master Plan, Zoning Map. Building Codes and City Ordinances There are no anticipated changes in the master plan, zoning map, building codes and city ordinances because of this project plan. IX. List of Estimated Nonproject Costs Private development and improvements $14,000,000 X. Relocation business in conjunction with this project plan. In the event It is not expected that there will be a need to relocate any person or 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, by the Wisconsin Department of Industry, Labor, and Human Relations all property owners will be provided an informational pamphlet prepared (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 the 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 the DILHR and shall keep records as required in Wisconsin Statutes 32.27. PROJECT LOCATIONS - TID 83 Legend (A) Martin Drive rd. improvement (D) Muskego Drive rd. improvement (E) Park development A storm water drainage / Other Items Included in District (8) Sewer study