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Council approves TIF aid for $3.5 million renovation at 37 South Main to add downtown housing
Summary
The council authorized a pay‑as‑you‑go tax increment financing agreement supporting renovation of a historic downtown building at 37 South Main into retail plus 10 residential units, with a maximum TIF assistance of $375,305 over 15 years.
The Janesville City Council on Jan. 27 authorized a tax incremental financing development agreement with Friedenall LLC to renovate 37 South Main Street in the downtown historic district, using a pay‑as‑you‑go TIF over a 15‑year term with maximum assistance capped at $375,305.
City staff described the project as a $3.5 million renovation of a four‑story, historically designated building that will retain first‑floor retail space and convert the second and third floors into about 10 market‑rate residential units, totaling roughly 9,000 square feet of residential area. The property's current assessment is listed at $522,000; staff projected the post‑rehabilitation assessed value at $1.7 million. The project will combine bank financing, owner equity, historic tax credits and the proposed TIF assistance.
"We're really looking at this as an impact investment in downtown," Charlie Johnson, representing the ownership group, told the council. Johnson said the family has deep local ties and intends to hold the property long term; the project team is pursuing historic tax credits and expects to retain the building for at least 10 years to realize that program.
Staff and the council discussed the gap between the developer's capital cost and the expected assessed value. A city staff member explained that renovation of historic downtown buildings has high per‑unit costs (fire suppression, code upgrades and historic compliance), making total project investment substantially higher than the initial post‑rehabilitation assessment. The proposed TIF package targets redevelopment of a historically designated building and aligns with the city's downtown reinvestment goals.
The council approved the resolution authorizing the TIF agreement; the motion was made by Council Member Squire and seconded by Council Member Nino and passed unanimously.
Officials said the project is consistent with council policy for commercial economic development and fits inside the life of Tax Incremental District 36, which runs through 2043. The developer estimated a roughly one‑year construction timeline and said the project team includes a preservation‑focused architect working through the historic tax credit process.
The city recommended adoption of file resolution number 2025‑2299 to finalize the pay‑as‑you‑go TIF assistance for the 37 South Main rehabilitation, and the council voted to authorize the agreement with the specified cap on TIF assistance.
