posted on September 15, 2015
(Janesville, WI) Excerpts Courtesy of the Gazette and WEDC
The Janesville City Council on Monday unanimously approved a Tax Increment Financing package worth $11.5 million, one of the largest TIF deals in Janesville's history, to help the retail giant select the City's STH 11 Business Park. Monday's Council vote moved the project another step closer to becoming a reality, as a number of key milestones remain outstanding before things are considered official.
The proposed distribution facility will be located at 3598 Beloit Ave. and it is expected to create up to 552 full-time jobs by 2019.
Council members called the deal a victory for the entire region—one that will inject new economic life into Janesville and cause ripple effects in wages for the surrounding area.
In anticipation that all of the necessary permits and approvals will be secured for its proposed project, Dollar General issued a prepared statement that read: "Dollar General is excited about our proposal to build a new Distribution Center in Janesville / Rock County Wisconsin. Janesville offers an ideal location to service the growing needs of our business in the upper Midwest. In addition to great location, the area offers first-class infrastructure, a strong business environment and an excellent workforce to draw from.”
The deal includes these provisions:
—Dollar General will pay $1 for 124 acres of land valued at $4.3 million and invest approximately $70 million + in the building and its equipment. The project must be completed by July 1, 2017.
—Dollar General will create up to 552 full-time positions by the end of its third year of operation. They must be maintained for 10 years. The city will pay Dollar General $178,830 over 10 years to facilitate its job creation activities.
—The property will have a guaranteed $40 million value after the facility is built, and the equipment will have a guaranteed $25 million value, which will be amortized over 10 years.
—The city will contribute $3.9 million over 10 years to help pay for the building and $1.3 million over 10 years to help pay for its equipment.
—Dollar General will receive a rebate of $232,000 in permit fees.
—Dollar General will pay $250,000 for a traffic signal at Beloit Avenue and the southernmost entry to the property. The city will pay for a traffic signal at Innovation Drive and Beloit Avenue.
The Wisconsin Economic Development Corporation (WEDC) also said last week it will offer up to $5.5 million in state tax credits for the project. To receive these credits, certain investment and employment conditions must be met by Dollar General. According to WEDC's economic forecasting model, this proposed project is anticipated to boost state income tax collections by over $13 million.
Additional support for this project is also pending from Alliant Energy (WP&L), specifically from their discounted electric rate program.
Last week, Janesville City Manager Mark Freitag noted that, "This is a great example of collaboration between the private sector and state, county and city government."
The sentiments were echoed by James Otterstein, Economic Development Manager for Rock County, who noted, "This project provides a visible example of how strategic alignment, collaboration and positioning generate positive outcomes."
Although Dollar General's proposed project would be the first tenant in the City's STH 11 Business Park, which is a designated as a certified, shovel-ready Park, additional infrastructure build-out along Beloit Ave. / CTH G is required. To facilitate these improvements, the council also unanimously authorized the city's administration to apply for a $1.2 million grant from the Wisconsin Department of Transportation.
In addition, a number of related steps were approved last week by the County of Rock - including granting an access control permit and revising the County / Municipal Agreement that governs jurisdictional issues regarding Beloit Ave. / CTH G.
Headquartered in Goodlettsville, Tennessee, Dollar General has more than 12,000 stores in 43 states. The company's proposed Janesville project, which would represent the company's 14th distribution center nationwide, is designed to service the entire Midwest region.
[Read the rest of this article...]