Forward Janesville - TheReport - FirstQuarter 2019

The story of Rock County’s revitalization has been well told. Thanks to the work of Rock County 5.0 and dozens of community partners, economic growth has been remarkable. In the last decade, Rock County has welcomed over 130 private sector economic development projects, over $2 billion in capital investments, and nearly 5,000 new full-time jobs. This growth has led to unprecedented challenges in the workforce and housing sectors, which are “good problems to have,” but problems nonetheless. Community leaders understand that our area’s lack of available housing represents a threat to our future prosperity and have taken proactive steps to address the issue. The City of Janesville, Forward Janesville, and Rock County 5.0 co-hosted a housing summit on June 6, 2018. Here are some recommendations that came from the meeting and actions the city has taken. TAX INCREMENT FINANCING One of the summit’s major takeaways is that housing development is a full contact sport. Many communities have been aggressive in offering incentives to developers and quite a significant portion of those incentives come in the form of tax increment financing (TIF). Background: TIF can get complicated, so here’s a quick explanation of how it works: When a city designates an area as a TIF district, the value of all the property in the district, known as the district’s base value, is set. As development occurs— and the overall value of property in the district rises—taxes on the TIF district’s new value are captured and available for use by that municipality. The difference between the district’s new taxable value and its base value is known as the increment. Cities in Wisconsin use TIF funding for all sorts of activities within TIF districts. Action: Under existing policy, the city could already use TIF incentives for downtown housing development projects, but the Janesville City Council voted to extend TIF incentives for residential projects in areas outside of downtown that are zoned to allow apartment buildings. This sparked a few interesting development proposals, including a potential 250-unit development near Racine Street and Interstate 39/90, and a 60-unit building on Parker Drive. While neither project is written in stone, we hope that they will move forward. CITY INFRASTRUCTURE FINANCING Many summit participants encouraged the city to again consider providing primary financing for subdivision infrastructure. Background: Before 2016, the city could pay for the installation of public infrastructure (water mains, curbs, and gutters, etc.) within new private developments. However, a few developers were not able to pay their property taxes and special assessments on lots on which the city paid to install public infrastructure, which resulted in a substantial loss for the city. This led to the city getting out of the subdivision infrastructure financing business in 2016, and they have been reluctant to get back in. Action: A group of industry professionals are working with city staff on ways to implement a scaled-down public infrastructure financing program that protects taxpayers while facilitating the residential development that our community so desperately needs. THE NEED FOR DIFFERENT TYPES OF HOUSING IN JANESVILLE A common complaint about houses in Janesville is that they are a little boring: homogeneous, ranch-style homes on quarter- acre lots. Housing summit participants would like to see a host of different housing types and lot sizes in Janesville, including downtown lofts, mixed-use rental developments, high-end multifamily, “tiny houses,” downsized (retirement) housing, townhomes, etc. The city needs to be open to new product types—not just 1,500 square foot single-family ranch homes on 85-foot lots. Recommendation: The city has tools in place to facilitate unique housing products and developments, and is ready to work with developers. That said, the city’s zoning ordinance could use some revision to accommodate unique projects. We look forward to taking part in this discussion. By taking these steps, the city is laying the groundwork to make Janesville more attractive for residential development. We are pleased to take part in these efforts, which will only increase Janesville’s vibrancy as a community. 10 • W W W . F O R W A R D J A N E S V I L L E . C O M ADDRESSING THE HOUSING CHALLENGE Dan Cunningham • Vice President, Government Relations & Education • danc@forwardjanesville.com (Source: The US Chamber of Commerce)