Janesville's $9 million TIF agreement with SHINE would grow by $1.5 million
JANESVILLE—Janesville's $9 million TIF agreement with SHINE Medical Technologies would grow by $1.5 million to $2 million under an emerging deal, a city official said Wednesday.
SHINE plans to build a prototype facility on land owned by farmer Randy Hughes adjacent to land the city has set aside for SHINE's full-scale production facility near the Southern Wisconsin Regional Airport, according to map documents the company provided the Gazette.
The Gazette on Sunday reported the city was in talks with SHINE for additional incentives through an amendment to the project's tax increment financing agreement. The Gazette reported the city deal would help SHINE build a prototype facility on the Hughes land.
On Wednesday, SHINE Vice President Katrina Pitas and city Economic Development Director Gale Price said in separate interviews that SHINE--not the city--would pay for building the prototype facility on Hughes' land.
The additional money the city could write into SHINE's TIF deal—somewhere in the neighborhood of $1.5 million to $2 million, according to an estimate Price gave Wednesday—would be used later to help SHINE relocate its prototype facility from Hughes' land to the adjacent city land earmarked for SHINE's full-scale, 57,000-square-foot molybdenum-99 production facility, Pitas and Price said.
Price said the city believes enlarging the TIF agreement is viable because SHINE's project would create a tax base that's about double the value estimated in 2012.
SHINE plans to produce mo-99 for use in medical bone and tissue scans. The proposed amendment to SHINE's TIF agreement could go to the city council as early as Monday, June 12, and SHINE could break ground on the prototype facility as early as July.
As previously reported in The Gazette, SHINE would use the smaller, separate prototype facility on Hughes' land to set up and test a prototype particle accelerator and low-enriched uranium target, Pitas said. The prototype would be similar to equipment that would eventually power SHINE's full-scale production facility.
The prototype facility was not part of SHINE's original plan, Pitas said.
The prototype was added to SHINE's plans in large part because SHINE hadn't raised all the money it needs for a full-scale project, Pitas said. The prototype facility, which SHINE is calling “Building 1,” would allow SHINE to take a metered and systematic approach toward its plans to commercially produce mo-99 in Janesville.
Later, as SHINE builds out the full production facility, SHINE would use the prototype building to train SHINE staff and engineers and to stage and continue to test its particle accelerators and other production equipment before they're installed at the full-scale facility, Pitas said.
Pitas said in May that SHINE's target for commercial production at its full-scale facility had moved from late 2019 to early or mid-2020, provided SHINE raises all the money it needs by that time.
She said she could not give a hard date of when SHINE could break ground on its production facility.
SHINE would build the prototype on a separate parcel, in part, to protect the city's investment in its TIF parcel and to prevent the land from being carved up prior to the SHINE building its full-scale production facility project, Pitas and Price told The Gazette earlier.
Neither Price nor Pitas made it clear in earlier interviews that SHINE intends at some point to relocate its prototype facility from Hughes' property to the TIF parcel, where SHINE plans to eventually build its full-scale production facility.
Pitas disclosed that portion of SHINE's plan Wednesday, and Price on Wednesday confirmed the information.
The city Wednesday had not yet responded to an open records request The Gazette filed May 17 seeking documents that detail proposed changes to SHINE's TIF agreement.
Price on Wednesday said he believed the Gazette's request was being reviewed by city legal counsel.