PROJECT AND REDEVELOPMENT PLAN TAX INCREMENT DISTRICT NO. 3 and

REDEVELOPMENT PROJECT AREA NO. 1

CITY OF BRODHEAD, WISCONSIN

Project and Redevelopment Plan Tax Increment District No. 3

and Redevelopment Project Area No. 1 City of Brodhead, WI

Prepared For: City of Brodhead

Prepared By: Vierbicher Associates, Inc.

6200 Mineral Point Road Madison, WI 53705-4504

Adoptions: TID Project Plan – September 9, 2002

Project Area Redevelopment Plan – September 5, 2002 Certified – October 7, 2002

Brodhead Common Council

Mayor William Wellnitz Judith Cleasby Joe Kohlman Larry Meinert

Mark Dombkowski Martin Brandenburg Bertha Sutherland

Brodhead Plan Commission

Mayor William Wellnitz Holly Everson Sharon Wolter

Mac Frie Jim Williams

Peter Gabryshak Alderman Joe Kohlman, Council Rep.

Brodhead Community Development Authority

Mayor William Wellnitz Holly Everson Sharon Wolter

Mac Frie Jim Williams

Peter Gabryshak Alderman Joe Kohlman, Council Rep.

Vierbicher Associates, Inc.

Project Manager – Gary Becker

TABLE OF CONTENTS Page

I. Introduction ..................................................................................................... 1 II. Statement of Kind, Number and Location of Proposed

Public Works and Improvements Within the District ................................... 11

III. Detailed List of Project Costs ........................................................................ 15 IV. Economic Feasibility Study ........................................................................... 16 V. Financing Methods and Timetable ................................................................ 18 VI. Analysis of Overlying Taxing Districts ........................................................ 19 VII. Maps Showing Existing Uses and Zoning

(See Maps 3 and 4) ........................................................................................ 19

VIII. Maps Showing Proposed Improvements (See Map 5) ................................................................................................... 20

IX. Proposed Changes in the Master Plan, Maps, Building Codes and City Ordinances ............................................................ 20

X. A List of Estimated Non-Project Costs ......................................................... 20 XI. Proposed Methods for the Relocation of

Any Displaced Persons .................................................................................. 20

XII. Statement Indicating How Creation of the TID Promotes the Orderly Development of the City of Brodhead ....................................... 20

XIII. District Boundaries ........................................................................................ 21

XIV. Attorney Opinion Letter and City Council Resolution ................................. 22 Maps

# 1: District Boundary and Parcel Numbers .......................................................... 5 # 2: Condition of Property ..................................................................................... 6 # 3: Existing Zoning .............................................................................................. 8 # 4: Existing Land Uses ......................................................................................... 9 # 5: Proposed Land Uses ..................................................................................... 10 # 6: Proposed Improvements ............................................................................... 14 LIST OF ATTACHMENTS Financial Attachments # 1: Planned Project Costs # 2: Financing Summary # 3: Debt Service Plan (Loan #1) # 4: Tax Increment Pro Forma # 5: Cash Flow Worksheet # 6: Analysis of Overlying Taxing Jurisdictions Resolutions, Notices & Minutes # 7: Timetable # 8: Notice to Overlying Taxing Jurisdictions of Creation of Joint Review Board

(JRB) #9: Ordinance Creating Community Development Authority #10: Blight Notification Letter #11: JRB Organizational Meeting Notice #12: Public Hearing Notice to Overlying Taxing Jurisdictions #13: JRB Organizational Meeting Minutes #14: Public Hearing Notice Proof of Publication #15: CDA Public Hearing Minutes 8/5/02 #16: Council Meeting Minutes 8/12/02 – Declaration of Blight Resolution #17: CDA Meeting Minutes – Approval of Project Redevelopment Plan #18: Council Resolution Creating TID #3 & Redevelopment District #1 #19: JRB Final Meeting Notice #20: JRB Final Meeting Minutes – Resolution Approving TID 9/27/02 #21: CDA Certification

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PROJECT AND REDEVELOPMENT PLAN TAX INCREMENT DISTRICT NO. 3 BRODHEAD, WISCONSIN I. INTRODUCTION

This project and redevelopment plan for Tax Increment District No. 3 (TID No. 3) in the City of Brodhead has been prepared in compliance with Wisconsin Statutes Chapter 66.1105(4)(f). The project plan establishes a need for the district, the proposed improvements within the district, an estimated time schedule, and an estimated budget. This project plan also includes a detailed description of the Tax Increment District boundaries.

A. Approval Process

The City of Brodhead Common Council met on June 10, 2002 and directed the City Plan Commission to prepare a draft project plan and preliminary boundaries. The Council also authorized the formation of a Joint Review Board at that time. The Plan Commission and City Council reviewed the draft project plan and preliminary boundaries on July 8th, 2002. A public hearing date was set at that time. Notice of the Public Hearing was sent to the overlying taxing jurisdictions on July 12, 2002, and published July 17, 2002, and July 24, 2002. Owners of property within the boundaries of TID #4 were notified by certified mail on July 12, 2002, of the proposed designation of a blighted area within TID #4 and of the Public Hearing. An organizational meeting of the Joint Review Board was held on August 1, 2002. A Public Hearing was held on August 5, 2002. Approval of the Project and Redevelopment Plan and boundary was made by the Community Development Authority and recommended to the Common Council for adoption on September 9, 2002. This project plan was adopted by resolution of the City Council on September 9, 2002. The Joint Review Board met on Sept. 27, 2002 to approve the City Council Resolution Creating TID No.3. Documentation of all resolutions, notices and minutes can be found as attachments to this Project Plan.. As required by Wisconsin Statutes Chapter 66.1105(5)(b), a copy of the project plan will be submitted to the Wisconsin Department of Revenue and used as the basis for the certification of Tax Increment District No. 3 in the City of Brodhead. This is to be used as the official plan that guides redevelopment activities within TID No. 3. Implementation of the project plan and construction of the proposed improvements will require a case-by-case authorization by the City Council. The City Council is creating a Community Development Authority (CDA) in conjunction with the creation of TID No. 3. The CDA will be the primary agent for implementing this project plan. Public expenditures for projects listed in the project plan will be based on the development status of the land and economic conditions existing at the time the

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project is scheduled for construction. The City Council is not mandated to make expenditures described in this plan and is limited to implementing only those project cost categories identified. Changes in boundaries or additional project categories not identified here will require formal amendment to the project plan involving public review and City Council approval.

B. Joint Review Board

The TID No. 3 project plan was reviewed and approved by a Joint Review Board (JRB) as required by Wisconsin Statutes consisting of:

City of Brodhead Peter Gabryshak 604 E. Third Avenue Brodhead, WI 53520 (608) 897-3875 (H) (608) 897-2136 (W) (608) 558-3723 (C) Green County Board Calvin Wickline N502 1st Center Ave. Brodhead, WI 53520 (608)897-4608 Blackhawk Technical College Brodhead School District Audrey Hein Kendall Schlittler N2557 Richland Road 601 E. 2nd Avenue Monroe, WI 53566 Brodhead, WI 53520 (608) 328-4848 (608) 897-8415

At-Large Mark Dombkowski 1803 W. 5th Avenue Brodhead, WI 53520 (608) 897-8582

The JRB held its organizational meeting on August 1, 2002, at which members voted to accept Mark Dombkowski as the At-Large Member and Peter Gabryshak as the JRB Chairman. The final meeting of the JRB was held on September 27, 2002. The JRB approved the City’s creation of TID #3.

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C. Plan of Redevelopment This area of Brodhead is characterized by underutilized vacant industrial properties and a manufacturer of farm implements. The manufacturer is proposing construction of a manufacturing facility on parcel #2004.2. The City will assist with the redevelopment of vacant, blighted and underutilized properties by making public improvements to support new industrial development and by creating a Community Development Authority and making funds available to the CDA to support redevelopment activities. The City will replace/improve/install public infrastructure in certain areas to improve the physical functioning of the area. TID #3 comprises approximately 7.2 acres and is predominantly industrial land uses. The Redevelopment District encompasses a larger area than TID #3 – comprising approximately 20 acres. A listing of all parcels in TID #3 and the Redevelopment District, their use, value and condition is included on page 7. Map #2 (p. 6) shows the condition of property, Map #1 (p. 5) shows the parcel numbers which are keyed to the parcel list, Map #3 (p. 8) shows existing zoning, Map #4 (p. 9) shows existing land uses, Map #5 (p. 10) shows proposed land uses and Map #6 (p. 14) shows proposed improvements.

TID #3 and Redevelopment District #1

TID #3 % of TID #3 Redevelopment District #1

Total Area 7.2 Acres 100% 26.4 Acres Area of Real Property (parcels) 4.77 Acres 66% 17.2 Acres Right-of-Way 2.43 Acres 34% 9.2 Acres Blighted Property 4.77Acres 100% of parcels 12.9 Acres Blighted Area for Redevelopment 4.77 Acres 100% 26.4 Acres Vacant Parcels 4.77 Acres 66% 9 Acres Vacant Parcels Vacant > 7 Years 4.77 Acres 66% Area Zoned and Suitable for Industrial 7.2 Acres 100% 26.4 Acres

TID #3 and Redevelopment District #1 is served by a number of city streets including 14th St., 17th St. and 18th St. Wisconsin Southern Railroad tracks bound the north edge of the Redevelopment District. CTH GG serves the sound end of the District. No other Federal, State or County highways serve either the TID or the Redevelopment District. City infrastructure is in generally good shape, except that 17th St. is in need of reconstruction. The entire District is served by City sanitary sewer and water service. A City storm sewer also serves the District. Electric power is provided by the Brodhead Water and Light Commission – a City electric utility. Natural gas service is provided by Wisconsin Gas Co. Public utilities are adequate to serve proposed redevelopment of the District with the exception of older sanitary sewer and water lines which may be in

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need of replacement as redevelopment occurs. There are no recreational facilities within the District, however, the District is well served by City parks and recreational trails. There are no community facilities within the District. Police, fire, City Hall, a school and several churches serve the District within a 10 block radius. Planned redevelopment activities include the construction of an addition to Knight Manufacturing, the construction of new parking lots to serve an increasing number of employees, site improvements (fencing) around the Knight Manufacturing property and the reconstruction of a section of 17th St. The City would like to encourage the redevelopment of those parcels through the creation of TID #3 and the creation of a Community Development Authority. Population density, land coverage and building intensity are all at lesser levels than adjacent areas due to the predominance of blighted, vacant and underutilized parcels within the District. Redevelopment activities proposed for the District will help to bring building density and land coverage up to a standard which is consistent with that of the surrounding areas.

PARCEL DATA

CITY OF BRODHEAD Reason for Finding of BlightTID #3 & REDEVELOPMENT DISTRICT

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653 Knight Mfg Corp 14th Street $6,600 $0 $6,600 Manu. 2.727 X X x x654 Knight Mfg Corp 14th Street $8,900 $12,700 $21,600 Manu. 2.312 X X x x2000 Knight Mfg Corp 14th Street $19,900 $129,100 $149,000 Manu. 1.997 X2001 Knight Mfg Corp 14th Street $3,700 $18,200 $21,900 Manu. 0.669 X2002.1 Knight Mfg Corp 1501 W 7th Ave $3,900 $0 $3,900 Vacant 0.910 X X x x976 Knight Mfg Corp 1401 W 8th Ave $15,100 $2,900 $18,000 Manu. 0.300 X X x x977 Stan & Selma Knight 16th Street $13,500 $0 $13,500 Vacant 1.350 X X x x1010 Summit Group of Southern 1504 17th Street $16,000 $99,700 $115,700 Manu. 1.600 X X X1011 Knight Mfg Corp 1606 17th Street $14,000 $29,500 $43,500 Manu. 1.600 X X x x1068.1 Knight Mfg Corp 19th Street & 8th Ave $7,000 $0 $7,000 Vacant 0.303 X X x x2004.1 Knight Mfg Corp 9th Ave $14,100 $1,000 $15,100 Manu. 2.360 X X x x2004.2 Knight Mfg Corp 9th Ave $21,100 $600 $21,700 Manu. 1.060 X X x x

$143,800 $293,700 $437,500 17.188 acresArea of TID #3 - Parcels 4.770 66.3% Right-of-Way 9.212 acres Area of Vacant Property 9.01Area of TID #3 - ROW 2.430 33.8% Total Acreage in District 26.400 acres Area Vacant >7 Years 9.0Total Area of TID #3 7.200 Blighted Area 12.922 acres Area of Blighted Parcels 12.92

Parcels in bold indicate parcels to be included in TID #3

City Equalized Value $124,984,100City TIF Capacity $8,748,887Existing TID #2 Value $8,430,500Existing TID #2 Increment $7,971,400Capacity for Additional TIDs $318,387 6.75% must be less than 7%Value of Proposed TID #3 $50,300

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Vierbicher Associates, Inc. 9/9/02Parcel Data

Page 7

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II. STATEMENT OF KIND, NUMBER AND LOCATION OF PROPOSED PUBLIC

WORKS AND IMPROVEMENTS WITHIN THE DISTRICT

TID No. 3 of the City of Brodhead is created primarily to eliminate blight and promote industrial development as authorized in Wisconsin Statutes 66.1105. TID No. 3 is created in order to promote the expansion of an existing manufacturer, create jobs, improve a portion of the City, enhance the value of said property, broaden the property tax base, and relieve the tax burden of residents and home owners. The City contemplates expending funds on planning, street, sewer and water improvements, and the redevelopment activities of the Brodhead Community Development Authority.

Any cost directly or indirectly related to achieving the objectives of blight elimination, rehabilitation, conservation or industrial development is considered a "project cost" and eligible to be paid from tax increments of this tax increment district, including but not limited to the list below. The costs of planning, engineering, design, surveying, legal and other consultant fees, testing, environmental studies, permits necessary for the public work, easements, judgements or claims for damages, and other expenses for all projects are included as project costs. Listed below are major public improvement categories, which are necessary and standard improvements for eliminating blight and promoting redevelopment of blighted areas:

A. Infrastructure for Development of TID:

Infrastructure costs most often include projects located within the boundaries of the TID. Infrastructure costs for projects located outside the TID, benefiting or necessary for the development within the TID may also be eligible TID projects. Such costs must be shared in a reasonable manner relating to the amount of benefit to the District. Proposed infrastructure improvements may include: 1. Street reconstruction or upgrading and alley removal to facilitate development

within the District. 2. Construct, upgrade and/or relocate sanitary sewer system components and related

appurtenances. 3. Construct, upgrade and/or relocate storm water drainage facilities and related

appurtenances. 4. Construct, upgrade and/or relocate water system components and related

appurtenances. 5. Install or improve primary and secondary electric service including installing

above or below ground electric distribution lines and related appurtenances.

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6. Install or improve natural gas service.

7. Install or improve telecommunication and/or cable television service including installing above or below ground distribution lines and related appurtenances.

Other infrastructure projects unknown at this time, but consistent with the purpose of TID No. 3 may be eligible project costs. Such eligibility will be determined by the City Council and/or the CDA at the time the projects are being considered.

B. Site Improvements:

Site improvement activities required to make sites suitable for reuse include, but are not limited to: environmental studies, environmental cleanups, stripping topsoil, grading, compacted granular fill, topsoil replacement, access drives, parking areas, landscaping, storm water detention areas, razing existing structures, relocating power lines, utilities, signs, fencing, and related activities. Other site preparation activities, unknown at this time, may be eligible costs as long as they are consistent with the purpose of TID No. 3 and approved by the City Council.

C. CDA Redevelopment Funds:

The City may provide funds to a Community Development Authority or Redevelopment Authority for the purpose of implementing the project plan of TID #3 or any other activity authorized by Wisconsin Statutes to be undertaken by such an Authority within TID #3 and consistent with implementation of the TID #3 project plan.

D. Promotion & Development: Promotion and development of TID No. 3 including professional services for marketing, recruitment, Realtor commissions and fees in lieu of commissions, marketing services and materials, advertising costs, administrative costs and support of development organizations are all eligible costs under this section.

E. Real Estate Acquisition: This may include, but is not limited to purchase of fee title, easements, appraisals, consultant fees, closing costs, surveying and mapping, lease and/ or sale of property at below market price to encourage or make feasible a blight elimination or redevelopment project.

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F. Relocation Costs: Relocation costs in the event any property is acquired for the above projects, including the cost of a relocation plans, director, staff, publications, appraisals, land and property acquisition costs and relocation benefits as required by Wisconsin Statutes 32.19 and 32.195.

G. Administrative Costs:

Imputed administrative costs including, but not limited to, a portion of the salaries of the City employees and elected officials, professional fees for audits, legal review, planning and engineering services, professional assistance with the general administration of TID No. 3, and others directly involved with the projects over the seven year expenditure period.

H. Organization Costs:

Organization costs including, but not limited to, the fees of the financial consultant, attorney, engineers, planners, surveyors, appraisers, title companies, map makers, and other contracted services related to the creation of the TID.

I. Discretionary Payments:

Payments made, in the discretion of the City Council, which are found to be necessary or convenient to the creation of TID #3 or the implementation of the TID #3 project plan.

J. Financing Costs: Interest, finance fees, bond discounts, bond redemption premiums, legal opinions, ratings, capitalized interest, bond insurance and other expenses related to financing.

The projects listed above will provide necessary facilities and support to enable and encourage the development of TID No. 3. These projects may be implemented in varying degrees in response to development needs.

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III. DETAILED LIST OF PROJECT COSTS

The table below describes the detailed project costs for project categories anticipated to be implemented during the expenditure period of TID #3. This format follows Dept. of Revenue guidance on detailed project costs, which states “this list should show estimated expenditures expected for each major category of public improvements”. All costs listed are based on 2002 prices and are preliminary estimates. The City reserves the right to revise these cost estimates to reflect change in project scope, inflation and other unforeseen circumstances between 2002 and the time of construction or implementation. The City should pursue grant programs to help share project costs included in this project plan, as appropriate. Planned project costs are listed in the table below. A more detailed list of planned project costs is included as Attachment #1. The City may fund specific project cost items shown below in significantly greater or lesser amounts in response to opportunities which will help the City accomplish the purposes of TID #3. The City will generally use overall benefit to the City and economic feasibility, i.e. the availability of future revenue to support additional project costs, in determining the actual budget for project cost items over the course of the TID’s expenditure period.

BRODHEAD TID #3 PLANNED PROJECT COSTS

Proposed Improvements Total Cost Others Share TID Share

A. Infrastructure Improvements $50,000 -0- $50,000

B. Site Improvements $0 -0- $0

C. CDA Redevelopment Funds $162,000 -0- $162,000

D. Promotion & Development $0 -0- $0

E. Real Property Assembly Costs $0 -0- $0

F. Relocation Costs $0 -0- $0

G. Administration $20,000 -0- $20,000

H. Organizational Costs $20,000 -0- $20,000

I. Discretionary Payments $20,000 -0- $20,000

TID SHARE SUBTOTAL $272,000 -0- $272,000

Inflation Cost Adjustment $0

Capitalized Interest $14,809

Financing Costs (Interest less Capitalized Interest, Financing Fees) $72,229

TOTAL TID EXPENDITURE $359,038

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IV. ECONOMIC FEASIBILITY STUDY

In order to evaluate the economic feasibility of the TID, it is necessary to project the amount of tax incremental revenue that can reasonably be generated from the district. The ability of the municipality to finance proposed projects must also be determined. TID No. 3 is economically feasible if the tax incremental revenue projected to be generated over the life of the TID is sufficient to pay all project and financing costs incurred during the TID’s expenditure period. The components of such an analysis include: A. The expected increase in property valuation due to inflation and the impact of general

economic conditions on the TID. B. The expected increase in property valuation due to new development encouraged by

the TID. C. Any change that may take place in the full value tax rate. Following is a discussion of these components. Financing issues are discussed in the next section. A. Inflation

Throughout the past twenty years, the annual rate of inflation in the construction industry has averaged 3.0 percent (source: Engineering News-Record Construction Cost Index History - http://enr.construction.com/cost/costcci.asp). Appreciation of property values in Brodhead have averaged about 7.2% per year since 1995 (source: Wisconsin Dept. of Revenue, Property Tax Master Data File1995 - 2001). The inflation rate, for the purpose of making projections of equalized value, will be a very conservative 0%. Inflation for purposes of projecting future project costs is assumed to be 3%.

B. Increase in Property Value

The proposed plan for TID No. 3 will encourage the redevelopment of two parcels within the TID. The formation of TID No. 3 will enable the City to make various improvements and provide funding that will stimulate redevelopment in the area. This redevelopment will create increased property valuation. The increase in property valuation is estimated from the following projects. Other improvements and redevelopment projects, which were not anticipated at the time this Project Plan was prepared, may occur within the TID.

1) Knight Manufacturing Expansion $1,200,000

Parcel #2004.1 and #2004.2 Construction is expected to occur in 2003.

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C. Full Value Tax Rate

The third variable to consider in projecting TID revenues is the full value tax rate. The full value tax rate is adjusted annually based on property valuation and the amount of funds required by all taxing jurisdictions to support their adopted annual budgets. The following chart summarizes the historic full value tax rate in the City between 1995 and 2001.

Year Full Value Rate Percent Change 1995 .03130 N/A 1996 .02576 -17.7%1997 .02554 -0.9%1998 .02513 -1.6%1999 .02459 -2.1%2000 .02702 9.9%2001 0.02703 0.04%

The full value rate has been decreasing since 1995 – about 13.6% between 1995 and 2001 or an average of –2.3% per year. This decline is due to a number of factors, including property tax reform measures at the state level. Since the large drop in 1996, full value tax rates have increased an average of 1.46% per year. With state budget shortfalls predicted for the next five years and growing fiscal pressures on municipalities, it is unlikely that local tax rates will continue to drop. A full value tax rate of .02703 with 0% change will be used in this project plan to project TID revenues.

D. TIF Revenues

Utilizing an average inflation rate of 0 percent, projected construction increment of $1,200,000 and an initial full-value tax rate of .02703, which is projected to remain constant, the projected TIF Revenue from TID No. 3 will be as shown in the Tax Increment Proforma in Attachment #4. The total tax increment revenue is sufficient to pay all TID related costs for the projects and amounts shown in the Planned Project Costs on Page 15.

E. Cash Flow

Another consideration regarding the adequacy of TID revenues toward paying TID project costs is the relative timing of revenue and expenditure, or cash flow. There are sufficient TID revenues over the life of the TID to pay all costs. In addition, there are sufficient TID revenues in each year to pay all costs. The City anticipates borrowing additional funds to pay interest expense on borrowings (capitalized interest) to bridge temporary cash flow gaps caused by the two year lag in collecting tax revenue on new increment. The Tax Increment Cash Flow Worksheet shown on Attachment #5 summarizes the assumed cash flow.

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V. FINANCING METHODS AND TIMETABLE

A. Financing Methods

An important aspect to consider in assessing the economic feasibility of TID No. 3, is the ability of the City to finance desired projects to encourage development. Financial resources available to the City include general obligation notes and bonds, revenue bonds, special assessments, and federal and state community development programs. Additionally, a Community Development Authority may finance project costs within a TID and the City may apply TID revenue to the CDA to service the debt incurred to finance eligible projects within the TID.

General obligations of the City are limited by state law to five percent of the equalized property value. The City has a current total debt capacity of $5,981,285 and $3,395,000 in existing General Obligation debt. Using this data, the current remaining debt capacity is $2,586,285. This is more than adequate financing capacity to finance the planned project costs of approximately $272,000 plus capitalized interest. Not all anticipated project costs will need to be borrowed. For example, TID administration costs will be relatively small on an annual basis and can be paid out of City operating funds and reimbursed from the TID when funds are available.

The City has the capacity to finance some project costs through direct debt or bond instruments, utilizing the general revenue capacity of the City to secure those instruments. There are other mechanisms available to pay for some project costs that would not count against the City’s constitutional debt capacity.

The City may utilize revenue bonds repaid from fees for services charged by the City. Common examples of such revenue are charges for sewer and water usage. There is no statutory limit on the amount of revenue bonds that can be issued, however, the City must demonstrate the ability to repay the debt from anticipated revenues. A further factor that could potentially limit revenues is that utility rates may be regulated by the Wisconsin Public Service Commission.

Some project costs can potentially be paid through special assessments levied on properties directly benefiting from the improvements. Costs of streets, curbs, gutters, and sewer and water extensions are commonly paid through special assessments. The City can issue special assessment bonds, pledging revenues from the special assessments on individual properties to repay the debt. Property owners are generally permitted to pay the special assessments in installments. These bonds are not counted against the City's constitutional debt limit.

B. Timetable

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The City of Brodhead has a maximum of seven years, until September 2009, to incur TIF expenses for the projects outlined in this plan. The City Council is not mandated to make the improvements defined in this plan; each project will require case by case review and approval. The decision to proceed with a particular project will be based on the economic conditions and budgetary constraints at the time a project is scheduled for consideration. Actual implementation of the projects may be accelerated or deferred, depending on conditions existing at the time. Projects are expected to begin in 2002 and occur periodically throughout the seven year expenditure period. Timing for each of the planned redevelopment projects is shown in the TID Pro Forma (Attachment # 4) and TID Cash Flow (Attachment #5) worksheets.

C. Description of Methods of Financing and Time Such Costs or Related Monetary

Obligations are to be Incurred

Financing for the projects shown above will be done as summarized in the Financing Summary and the Debt Service plans for the borrowing shown in Attachments #2 and #3. The actual number, timing, and amounts of debt issues will be determined by the City and the CDA at its convenience and as dictated by the nature of the projects as they are implemented. All monetary obligations will be incurred within the seven year expenditure period, unless a relocation requires extending beyond the seven year period.

VI. ANALYSIS OF OVERLYING TAXING DISTRICTS

Taxing Districts overlying the City of Brodhead TID No. 3 include Green County, Brodhead School District, Blackhawk Technical College, and the State of Wisconsin. Impact on the overlying taxing districts is based on the percentage of tax collections in TID No. 3 in 2001. Total TIF Increment over the life of the district is divided by a proportionate share of each taxing jurisdiction. An analysis of the impact on overlying taxing districts is included as Attachment #6. Many of the projects planned for the TID would not occur or would occur at significantly lower values but for the availability of tax incremental financing. TID #3 is a mechanism to make improvements in an area of Brodhead which is experiencing blighting influences and to support growth in the city’s industrial base. All taxing jurisdictions will benefit from the increased property values and community vitality which will result from the projects planned in TID #3.

VII. MAPS SHOWING EXISTING LAND USES AND ZONING SEE MAPS #3 and #4, pages 8 and 9.

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VIII. MAPS SHOWING PROPOSED IMPROVEMENTS

SEE MAP #6, page 14. IX. PROPOSED CHANGES IN THE MASTER PLAN, MAPS, BUILDING CODES AND

CITY ORDINANCES

The City of Brodhead has a Community Master Plan. No changes in the Master Plan, Official Map, Building Codes or City Ordinances are required to implement this project plan.

X. A LIST OF ESTIMATED NON-PROJECT COSTS

There are no project costs planned for TID No. 3 which would directly benefit property outside the TID, therefore there are no “non-project” costs.

XI. PROPOSED METHOD FOR THE RELOCATION OF ANY DISPLACED PERSONS

No persons are expected to be displaced or relocated as a result of proposed projects in TID #3. The following is the method proposed to be followed by the City or CDA if future projects require displacement or relocation. Before negotiations begin for the acquisition of property or easements, all property owners will be contacted to determine if there will be displaced persons as defined by Wisconsin Statues and Administrative Rules. If it appears there will be displaced persons, all property owners and prospective displaces will be provided an informational pamphlet prepared by the Wisconsin Department of Commerce (DOC). 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 DOC. The City will file a relocation plan with the DOC and shall keep records as required in Wisconsin Statutes 32.27. 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 neighboring landowners to whom offers are being made as required by law.

XII. STATEMENT INDICATING HOW CREATION OF THE TID PROMOTES THE

ORDERLY DEVELOPMENT OF THE CITY OF BRODHEAD

The creation of TID No. 3 will encourage the development of blighted and otherwise economically distressed and underutilized property in the City. Creation of the TID will also promote development of the industrial base of the City and, in general, promote the public health, safety and general welfare. Successful implementation of the projects planned in TID #3 will build tax base for the City and overlying taxing jurisdictions and improve the safety and welfare of the neighborhood by making improvements to protect the people who live in the neighborhood.

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XIII. DISTRICT BOUNDARIES

Prior to considering the specific area to include within the TID, the Planning Commission established criteria to act as guidelines in their work. The boundary criteria are as follows:

1. The aggregate value of equalized taxable property of the TID cannot exceed 7% of

the total value of equalized taxable property in the City, or equalized value of district plus value increments of all other districts won't exceed 5% of the total value of equalized taxable property in the City.

2. A minimum of 50 percent of the TID must be a blighted area, in need of

rehabilitation or conservation or suitable and zoned for industrial use.

3. All lands within the TID shall be contiguous.

Boundary Description: City of Brodhead, Tax Increment District No. 3 follows:

Lots 1 and 2, Green County Certified Survey Map No. 897, Lots 2,3,4,6,7 and 8, Block 196 and part of Block 212 of the original plat of Town of Brodhead (now City) part of the right of ways of West Ninth Avenue, Fourteenth Street and Seventeenth Street, part of vacated Sixteenth Street, all being located in part of the SE ¼ of Section 26 and part of the SW ¼ of Section 25, T2N, R9E, in the City of Brodhead, Green County, Wisconsin, described as follows:

Commencing at the Southwest Corner of said Section 25; thence Northerly along the West line of the said SW ¼ of said Section 25 to the intersection with the Westerly extension of the South line of Block 212, original plat of Town of Brodhead (now City), said South line also being the North right of way line of Eighteenth Street and said point of intersection also being the Point of Beginning; thence continuing Northerly along said West line of the SW ¼ of Section 25 to a point that lies 657.47 feet North of the said Southwest Corner of Section 25; thence West, 33 feet; thence Northerly parallel with the said West line of the SW ¼ of Section 25 to the intersection with the South line of said Certified Survey Map No. 897, said South line also being the centerline of Seventeenth Street ( A. K. A. Ten Eyck Road); thence Westerly along the said south line of Certified Survey Map No. 897, 209.79 feet, more or less, to the Southwest Corner of said Certified Survey Map No. 897; thence Northerly along the West line of said Certified Survey Map No. 897, 640.38 feet to the Northwest Corner of Lot 1 of said Certified Survey Map No. 897; thence Easterly along the Northerly line of said Lot 1 of Certified Survey Map No. 897, 228.82 feet to the intersection with the west right of way line of West Ninth Avenue; thence Northerly along the said west right of way line of West Ninth Avenue, 392.35 feet, more or less, to the intersection with the North right of way line of Fourteenth Street; thence Easterly along the said North right of way line of Fourteenth Street to the intersection with

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the centerline of said West Ninth Avenue; thence Southerly along the said centerline of West Ninth Avenue, 693 feet, more or less, to the intersection with the Westerly Extension of the centerline of Vacated Sixteenth Street; thence Easterly along the said centerline of Vacated Sixteenth Street and its Westerly Extension, 231 feet, more or less, to the intersection with the Northerly extension of the East line of Lot 2, Block 196, original plat of Town of Brodhead (now City); thence Southerly along the said East line of Lot 2, Block 196 and its Northerly Extension and along the East line of Lot 6 and its Southerly extension of said Block 196 to the intersection with the Southerly right of way line of Seventeenth Street (also being former State Trunk Highway 11); thence Westerly, Southwesterly and Southerly along the Southerly right of way of Seventeenth Street and the Westerly right of way line of West Ninth Avenue (also the right of way of former State Trunk Highway 11) to the intersection with the North right of way line of Eighteenth Street; thence Westerly along the said North right of way line and its Westerly Extension of Eighteenth Street to the intersection with the West line of the said SW ¼ of Section 25 and the point of beginning.

Excluding all wetlands.

XIV. ATTORNEY OPINION LETTER AND CITY COUNCIL RESOLUTION

See Attorney Opinion Letter and City Council Resolution on following pages.

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