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Janesville creates TID 43 and approves developer deal for Innovation Park; three older TIFs closed
Summary
Council closed three small tax-increment districts, creating roughly $1.1 million in excess increment for taxing bodies, and approved creation of a new industrial TID (No. 43) plus a TIF development agreement for a two‑building industrial project in Innovation Park.
The Janesville Common Council on June 9 adopted resolutions to dissolve three existing tax-increment districts and approved the creation of a new industrial tax-increment district (TID 43) plus a pay-as-you-go TIF development agreement for a two-building project in the newly named Innovation Park.
The council closed TID 17, TID 25 and TID 33 effective for fiscal year 2025 (taxes payable in 2026). City staff said closing those districts will generate about $1.1 million of excess increment to be shared among the overlapping taxing jurisdictions, with roughly 34% of that amount allocated to the city.
Why it matters: TID closures free incremental value to taxing entities and can be a source of local housing funds; the new TID and development agreement authorize infrastructure, a substation, and pay-as-you-go incentives intended to bring industrial development and jobs to a 133‑acre tract the city purchased in 2023.
TID closures and expected housing fund impact City staff reported current balances and expected distributions to housing funds: the affordable housing fund currently holds about $1.1 million. With the closure of the three TIDs, the city expects approximately: - TID 17: about $21,000 to the affordable housing fund and about $7,000 to the city’s general housing portion. - TID 25: about $266,000 to the affordable housing fund and about $82,000 to the general housing portion. - TID 33: about $266,000 to the affordable housing fund and about $88,000 to the general housing portion.
The council adopted the three closure resolutions (file resolutions 2025-2309, 2025-2310 and 2025-2311) unanimously.
Creation of TID 43 and Innovation Park project plan Council approved file resolution 2025-2314 to create Tax Increment District Number 43, a 133-acre industrial district south of the Dollar General distribution facility along County Highway G. The council also approved a project plan that includes: - An anticipated total new value at full buildout of roughly $108 million across phases (project-plan estimates vary by phase). Staff modeled total incremental revenues at about $34 million. - A city land‑purchase reimbursement of $4.6 million (the city bought the land prior to creating the TID) that the project plan allows to be recovered from future increment. - An anticipated Rock Energy Cooperative substation with a city share estimated around $1.3 million (placeholder subject to future engineering and load timing). - Pay-as-you-go development incentives modeled at 75% of projected revenues for each of three phases; any actual incentive will be subject to a separate development agreement for each phase and require council approval.
TIF development agreement with TI Investors / Silver Property Group The council unanimously approved a proposed TIF development agreement (file resolution 2025-2318) with TI Investors of Janesville Holding Company 3 LLC (an affiliate of Silver Property Group) for two industrial buildings on approximately 26 acres in Phase 1. Key items provided to the council: - Developer spending on the Phase 1 project: approximately $38 million (two buildings, each about 237,800 square feet). - Projected annual property taxes after both buildings are completed: about $492,888 per year. - The agreement is structured as a 10-year pay-as-you-go incentive for each building (phase 1 payouts 2027–2037; phase 2 payouts 2030–2040). Total incentives (land value reimbursement plus cash TIF incentive) are capped and will not exceed $4,072,993 for the agreed scope.
Process and timing Council members heard a detailed presentation from municipal finance consultants and planning staff about statutory TID requirements, the joint review board process, and the project plan. The plan commission held a public hearing and recommended approval on March 3. If the council’s action is approved, the joint review board will make a final decision on July 8, and any pay-go incentives will be finalized through separate development agreements that return to council for approval.
Ending: Council members described the project as fitting the city’s industrial economic strategy and directed staff to continue negotiating final contract language; staff will return required development agreements and the Jets lease amendment (where relevant) for future council action.
