City Council Meeting. April 24, 2017

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1 City Council Meeting April 24,

2 City Manager Update City Council Meeting April 24,

3 Things to know Town Square Coming Soon banners have been installed on the Milwaukee and Court Street Bridges to maintain recognition of the first phase of riverfront improvements planned for the Town Square this spring Also, an enlarged Town Square project board has been installed on the west side of the river along Dodge Street to highlight upcoming Town Square elements 3

4 Things to know (cont.) Parks Division updates: Earth Day Shred Fest had 54 participants Canine Egg Hunt had 35 community dogs participate MADD thanks to community partners: UW-Whitewater Friends of Rockport Park Rock Trail Coalition Friends of Oak Hill Cemetery Oak Hill Cemetery Preservation Society 4

5 Things to know (cont.) JTS ridership increased more than 8% in the first quarter of 2017 compared to the first quarter of 2016: Service Type 1st Quarter st Quarter 2017 Difference by # Difference by % Regular 81,593 85,255 3, % Tripper 14,905 19,394 4, % Nightside 4,757 4, % Totals 101, ,519 8, % 5

Spring/Summer Activity Guide On the web: www.ci.janesville.wi.us/activityguide The Spring/Summer Parks and Recreation Activity Guide has been mailed and is available on our website.

6 Spring/Summer Activity Guide On the web: The Spring/Summer Parks and Recreation Activity Guide has been mailed and is available on our website. Youth sports and programs, adult sports and programs, family events, day camps, arts and enrichment programs, and much more offered all season. Register for most programs online at or call (608)

7 Upcoming events April 27: Volunteer Appreciation Event at Fire Station #1 from 4-5PM May 3: Rock County Day in Madison at the State Capitol from 8AM-noon May 8: New Committee Member Orientation at City Hall, Room 416 from 4:30-5:30PM May 13: DDA Downtown Open House from 10AM-4PM 7

8 Stay connected to CoJ The May episode of Park Place Views features Transit Director Becca Smith. View on JATV (Charter Channel 994) or YouTube. Sign up to receive s with press releases and important notifications: City of Janesville: (608) City Manager s Office: (608)

9 City Council Meeting April 24,

10 JANESVILLE INNOVATION CENTER JANESVILLE CITY COUNCIL UPDATE APRIL 24, 2017

12 FLOOR PLAN October 1, 2016

13 Current Tenants K4 Innovations N1 Critical Technologies Tandemloc Copper Fire Tees DLG Naturals Simply Solutions

14 Former Tenants Novak Networx Diamond Assets Tapzi IV Quest That s Kinda Cool HydroGeoLOGIC

15 OFFICE SUITES - RENTAL RATES Effective October 1, 2016 OFFICE SUITES MONTHLY RENT All utilities includedphone, internet, gas, electric & water 100 $ $ $ $ $ $ $ $ $275

16 PRODUCTION SUITES - RENTAL RATES Effective October 1, 2016 Manufacturing BAYS MONTHLY RENT Tenant responsible for gas & electric services 150 $2, $2, $2,185 Manufacturing SUITES MONTHLY RENT Gas & electric services included in rent 130A $ B $ C $ D $515

17 JIC FINANCIAL PROJECTIONS Janesville Innovation Center Projections Rent City TIF Grants $ 19, ,000 27,500 $38,982 60,000 8,500 $59,813 40,000 - $110,199 20,000 17,400 $126, Revenues $147,340 $107,482 $99,813 $147,599 $126,790 Expenses $109,464 $124,271 $109,340 $117,162 $109,928 Net Income $37,876 $(16,789) $(9,527) $30,437 $16,862 Projections are estimates based on 4 years of operating experience and current market conditions. Conditions and assumptions are subject to change which could impact future revenue estimates, operational estimates and City contributions to the Janesville Innovation Center. April 2017

18 ACCOMPLISHMENTS TO-DATE Signed 12 tenants; 11 office, 3 manufacturing bays 3 office/ manufacturing suite combinations 4 foundation grants totaling more than $50,000 5 tenant expansions within the Innovation Center Tenants currently receiving mentoring support and business assistance

19 Copper Fire Tees

20 Janesville Innovation Inc. Board of Directors Designated Positions Mark Freitag (City Manager, City of Janesville) Gale Price (Economic Development Director, City of Janesville) Dr. Charles Clark (Regional Executive Officer and Dean, UW Colleges Southwest) Kevin Kaufman (Director, UW-Whitewater Center for Innovation and Business Development) Dr. Tracy Pierner (President, Blackhawk Technical College) Sam Liebert (City Council, City of Janesville) Three year terms expires 2019 Barry Brandt (Owner, Lanair Heaters & Boilers) Steve Werner (Partner, Murphy Desmond) James Otterstein (Economic Development Manager, Rock County Economic Development Agency) Two year terms expires 2018 Erin Clausen (Community Manager - Irontek, Hendricks Development Group) Andrew Janke (Executive Director, Greater Beloit Economic Development Corporation) John Beckord (President, Forward Janesville) One year terms expires 2017 Mark Gregory (Senior Vice President Commercial Banking, Johnson Bank) Bruce Kepner (Retired - Economic Development and Community Development Manager, Alliant Energy) Jon Ballard (CEO, Foremost Media, Inc.)

21 Innovation II Project Proposal JIC nearing full capacity Tenant companies are growing City is investing in start-up and early-stage companies Desirable for companies to expand within the City Current lack of small manufacturing lease space (5 10,000 square feet; 10 15,000 square feet)

22 Innovation II Project Proposal Exploring potential of a public private partnership for a 40 50,000 square foot building across from JIC to allow ease of expansion, on-going mentoring and business support, and access to shared amenities at JIC Working toward a Request for Qualifications (Spring 2017) Prefer negotiated agreement and construction in 2017

23 CONTACT INFORMATION Mike Mathews, Operations Manager, Gale Price, Economic Development, City of Janesville,

24 Rock County Entrepreneurial Business Development Program RockCountySmallBiz.com

WEDC Entrepreneurial Support Pilot Program Grant Description: WEDC will provide grants generally between $10,000 and $100,000 to eligible Wisconsin nonprofit organizations or communities for projects

25 WEDC Entrepreneurial Support Pilot Program Grant Description: WEDC will provide grants generally between $10,000 and $100,000 to eligible Wisconsin nonprofit organizations or communities for projects with eligible activities including the promotion of entrepreneurship; entrepreneurial education, mentoring or training programs; and facilitation of business development of financial services. RockCountySmallBiz.com

26 Collaborators & Partners Blackhawk Community Credit Union Downtown Beloit Association Greater Beloit ED Edgerton Chamber of Commerce Evansville Area Chamber of Commerce Evansville ED Committee Irontek Janesville Innovation Center Johnson Bank Milton Chamber of Commerce Murphy Desmond Rock County 5.0 / RCDA City of Beloit Greater Beloit Chamber City of Edgerton City of Evansville Evansville I&E Club Forward Janesville Janesville DDA Janesville Foundation Merlin Mentors City of Milton Orfordville ED Committee SBDC / WISC / UW Law & Entrepreneur Clinic NOTE: This is an evolving, as well as partial, list of organizations that are supporting the RCEBD. RockCountySmallBiz.com

27 Service Area and Target Market o Service Area Rock County o Target Market Start-ups; growing early-stage and second-stage ventures; business succession candidates o Downtown Development Programs Entry point for retail and service businesses o Janesville Innovation Center and Irontek Focus High wage and high growth businesses o Manufacturing, Information Technology/Technical, Scientific RockCountySmallBiz.com

28 Program Functions Customized, Consultative Services o Facilitation of Business Formation and Growth Provide a range of customized services and assistance tailored to entrepreneurs, early stage businesses and the transition of business ownership in Rock County. o Entrepreneurial Education, Mentorship and Training Build on success of programs developed and delivered through the Janesville Innovation Center and the Rock County Development Alliance over the past three years. o Promotion and Entrepreneurship Build critical mass of partner participation, entrepreneurship focus, identification of entrepreneurs in Rock County. RockCountySmallBiz.com

29 Goals o Encourage greater coordination and collaboration among Rock County economic development professionals, business services professionals, entrepreneurs and emerging businesses. o Increase awareness and appreciation for local entrepreneurship through presentations, meetings and explanation of program to key groups. o Increase success level of start-up companies in Rock County: o o o o o Establish earlier contact Conduct and facilitate business assessments Assist in goal setting and prioritization Make introductions to qualified mentors and coaches Help entrepreneurs in the preparation and pursuit of appropriate resources o Increase new business formations, revenue growth, jobs, income, and regional investment capital. RockCountySmallBiz.com

30 How It Works Client Application Client Candidates Reviewed In-Take Meeting and GrowthWheel Screening Summary of Meeting Discussion and Key Issues Market Validation and Prioritization Link to Resources Mentoring Management Growth Revenue Jobs RockCountySmallBiz.

31 Rock County Entrepreneurial Business Development Program Anticipated Service Levels Entry Level Review Initial meeting, discussion of program intent, company status, review and comment on application; GrowthWheel Assessment and summary written document Follow-up with client Strategy Development/Resource Connections Follow-up meeting with client and discussion of key opportunities, challenges, priorities and short-term goals to make progress Assist in establishing and connecting with Mentor team, setting meetings and agendas Prep client and facilitate discussions with resources Entry Level Review 5 6 hours per company Strategy Development Resource Connections hours per company Ongoing Coaching Assistance 50 hours per company Ongoing Coaching Assistance Regular contact and coaching of client, goal setting, goal tracking and follow-up Monitor and document results RockCountySmallBiz.com

32 What This Means For Rock County. Proven service delivery model that provides resources and capabilities for start-ups and existing small businesses throughout Rock County Customized and value-added client solutions Services extend throughout the County and are available to a diverse mix of clients and industry sectors (i.e. service and goods producing firms. Professional service provider and community networks perform key gatekeeping/ connecting / directing roles RockCountySmallBiz.com

33 City Council Meeting April 24,

34 Deferment Resolution David Botts/Public Works April 24,

35 35 Deferment Resolution

36 Thank you for your time. Please contact David Botts/Pubic Works for more information

37 City Council Meeting April 24,

38 Council Policies 61A and 61B, Concerning TIF Financing Gale Price / Economic Development April 24,

39 Council Policies 61A and 61B, Concerning TIF Financing April 10 th Meeting reviewed modification of language in both TIF Development Policies 61A Industrial Economic Development Policy 61B Commercial Economic Development Policy As proposed, Policies would include the word prudent within the overall goal Description of the type of development the City seeks to achieve 39

40 Council Policies 61A and 61B, Concerning TIF Financing Overall Goal: To continue prudent development of Janesville s industrial tax base by diversification and expansion of key targeted industries in conjunction with the Rock County Development Alliance. Overall Goal: To stabilize, maintain and foster prudent redevelopment of Janesville s downtown and older commercial areas of the community which will maintain and expand the City s tax base by the following: 40

41 Council Policies 61A and 61B, Concerning TIF Financing Definition of prudent characterized by, arising from, or showing prudence : such as marked by wisdom or judiciousness prudent advice shrewd in the management of practical affairs prudent investors marked by circumspection : discreet "Prudent." Merriam-Webster.com. Merriam-Webster, n.d. Web. 10 Apr

42 Council Policies 61A and 61B, Concerning TIF Financing Second Change, additional paragraph In considering how to structure development projects to be recommended to the City Council for approval pursuant to this policy, City Administration and Economic Development shall use standards that protect the City of Janesville while facilitating prudent development or redevelopment, all for the betterment of the City. Such standards shall include, but not be limited to: wherever possible using a pay-as-you-go method whereby the City does not remit funds to a developer until performance has occurred; generally refraining from financing start-up businesses; generally refraining from financing businesses that are stagnant and not growing; generally refraining from taking personal guarantees from developers or business owners; and encouraging developers to obtain secondary financing and/or bank-issued irrevocable letters of credit that assure repayment to the City of its investment in the event of a developer s default. In the event that City Administration and Economic Development conclude that a project is unable to satisfy these standards but is nevertheless a prudent investment for the City Council to consider, specific information shall be provided to the Council that support this conclusion. 42

43 Council Policies 61A and 61B, Concerning TIF Financing Council Adopted the Changes 4-3 Vote Concern about impact City is transparent, will developer steer away? Industries may perceive the policy changes as additional hoops Bypass discussions with Janesville for a project The language is not necessary as evaluation of each project occurs 43

44 Council Policies 61A and 61B, Concerning TIF Financing The City recommends that the City Council repeal the recently adopted additional adopt the additional modifications to Council Policy Nos. 61A and 61B 44

45 Thank you for your time. Please contact the (Gale Price, Economic Development Office) for more information

46 City Council Meeting April 24,

47 Transfer of Debt Category Tim Allen April 24,

48 Transfer of Debt Category In 2016, the City borrowed $1,500,000 in the Parks and Public Grounds category which was to be used to remove the concrete parking plaza over the river. Bids were received after borrowing was finalized; bids were much lower than anticipated. Also, the DNR has since approved grants to the City to cover much of the costs. Therefore, we now won t spend most of the $1,500,

49 Transfer of Debt Category (Transit) In 2014, transit operations and administration relocated from the former Transit building at 900 N Parker Drive to the Transit Services Center located at 101 Black Bridge Road. Since that time, the former building has been used for cold storage of some DPW and Parks equipment vehicles, lawnmowers, barricades, etc. The building hasn t aged well, particularly the metal structure addition that was constructed in With vacating the Parker Drive facility, JTS was required to work with the Federal Transit Administration to determine a disposal plan due to the federal interest in the property. The City of Janesville is fortunate to receive FTA concurrence to buyout their share as their alternate option is placing the property for immediate sale. A total of $47, is needed to buyout the FTA s interest in the former Transit building at 900 N Parker Drive. 49

50 Transfer of Debt Category (Streets) In 2015, the Council approved an enhanced streets program to recondition and resurface ~12 miles of streets per year. There weren t many options allowed by the State to increase funding for streets. The best option available was to increase borrowing. Council also had to amend Council Policy 75 which limits the amount of debt the City may have outstanding at a given time. Our 2016 capital project plan was capped to stay within CP75 limits capital requests again reflect the many needs the City has; many of which were shortchanged over the years. Prioritizing borrowing for projects will again be at a premium. The 2017 streets program is anticipated to be ~$3,000,

51 Transfer of Debt Category (regulations) Federal arbitrage rules continue to put restrictions on borrowed funds. To be exempt from rebate and avoid penalties, we are required to spend borrowed funds within two years. Repurposing funds keeps us in compliance. 51

52 Thank you for your time. Please contact the Finance Office for more information

53 City Council Meeting April 24,

ECONOMIC DEVELOPMENT MEMORANDUM

ECONOMIC DEVELOPMENT MEMORANDUM February 12, 2018 TO: City Council FROM: Gale Price, AICP, EDFP, Economic Development Director SUBJECT: Consideration and action to adopt revised Council Policy No. 77 (Economic