Janesville taps TIF for downtown project

By MARCIA NELESEN ( Contact )   Thursday, May 28, 2009
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— The Janesville City Council on Tuesday agreed to spend $860,000 in TIF incentives to aid a development group in renovating the former Helgesen building, a project city staff says is located in the "heart of the downtown."

SARA Investments of Madison has formed 101 Milwaukee Street LLC to buy and renovate the six-story office building in TIF No. 23.

The city will reimburse $500,000 to the developers after the renovation project is complete. The completion date is Dec. 31.

In addition, the city will loan the investors $360,000 at 4.25 percent interest for 10 years to help finance the renovation. If annual property taxes exceed the amount guaranteed by the investor, then the excess property tax revenue will be used to pay the debt on the loan.

The investors agree to guarantee property tax payments ranging from about $72,000 in 2010 to $80,000 in 2022.

"The revitalization of the downtown has been one of the council's top priorities," said Doug Venable, director of economic development.

"The property at 101 E. Milwaukee St. anchors the Main and Milwaukee intersection and is a key activity generator in the heart of the downtown," Venable said.

The city also is building a $4.4 million parking ramp near the building to serve that part of downtown and the office building.

"Given the downturn in both the local and national economy, it is exciting to have a private developer willing to purchase an underperforming downtown property and to invest several million dollars to create class 'A' office space," Venable said.

Market rates in downtown Janesville do not support the $4.5 million project, which is the reason for the TIF incentives, Venable said.

101 Milwaukee Street LLC bought the six-story, 52,400 square-foot office building for $950,000 and is spending $3.6 million to renovate the property. The office building has not had a major renovation since it was built in the early 1970s and is 70 percent vacant. The company is replacing the heating and air conditioning system, the single-pane windows with energy-efficient, two-panel glazing, and the roof; installing accessible bathrooms on each floor and fire sprinklers; and replacing all interior walls and finishes.

"Staff feels that without TIF incentives, the renovation project would not occur and the building would likely continue to lose tenants and property value," Venable said.

reader COMMENTS
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(18)
creatureinthefreezer
Jun 1, 2009 at 2:11 p.m.
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I think this is a good move for Janesville.

bennetonf1
May 29, 2009 at 2:46 p.m.
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Hannah,
This is the point I'm trying to make.
You want the shops to stay open.
The shops need to justify the overhead costs of staying open additional hours.
Would it be worth their while to stay open / would extra hours bring in more customers?
What comes first, the chicken (extra hours) or the egg (more business)?

cappyman
May 29, 2009 at 2:32 p.m.
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so the city and us taxpayers are building a parking ramp and lending him money-why are there no janesville contractors working on this project?

janesvillean
May 29, 2009 at 12:21 p.m.
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irebout, you seem to have misunderstood me. If LaCrosse is doing as well as you say, I think they probably are doing some things right that other cities could duplicate. (It can also be luck; hard luck is what cost Janesville Parker Pen and GM, not anything that the local authorities did.) But we have to work with modern situations. I think Forward Janesville and the former DDA have been quite pragmatic in their approach and it has kept our downtown limping along with periodic glimmers of real resurgence, but we haven't really succeeded the way we would like.
.
The key is when we have a developer like Sara that is interested in the downtown and has the experience to succeed, we run with that opportunity. I think the city has done that with alacrity here.

gazettefan
May 29, 2009 at 11:49 a.m.
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In accordance with the mechanism of evolution, the egg came first: it was laid by something that was almost a chicken.

Open your business here.

bennetonf1
May 29, 2009 at 11:06 a.m.
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What comes first the chicken or the egg? If I want to relocate my business to downtown Janesville I have to ask myself, what is there to attract a customer base AND what is there to benefit/support my employees? If I'm opening a bar/restaurant I have to ask myself, Is there enough interest/attraction to this area to count on market growth via new business. We, as a city, need to display Janesville in a good light. A place that a business or manufacturer would WANT to relocate to. A place that would make it easy for an existing company to convince it's employees to relocate to.

janesvillegirl23
May 29, 2009 at 10:26 a.m.
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localboysince1968:
Sorry but you are wrong about the ghost town. Have you even been to either Game Day or Zachow's ? I suggest you take the time to visit before you speculate.
Both are doing very well despite the fact that GM is closed.
Zachow's has expanded their hours and currently sponsor more dart teams than any one else in Janesville.
Instead of spreading rumors about local businesses, maybe you should try to support them.
(Sorry If I sound harsh.)

localboysince1968
May 29, 2009 at 6:35 a.m.
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You have to have employment down there to support the downtown dream. If people are working down there, they will be spending money down there. A sample is the area around GM. Those bars/restaurants down there look like a ghost town since GM closed. Nobody has a reason to go down around that area anymore since they don't work there. They can now visit places close to home. You get some good paying jobs downtown, and people will shop/visit/eat in the area. We need to land a major professional job company to locate in the downtown, and the rest is residual.

irebout
May 29, 2009 at 3:54 a.m.
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TO whom who think that reviving downtown Janesville can't be done with some of the things that the fifties provided, your wrong. LaCrosse is a perfect example of this. It went back to it's roots and while it's not completely perfect it is growing inch by inch. Already in the last four years I have seen a huge transition and a wonderful downtown come back. Maybe Janesville should look at other towns such as this to see what is working and what isn't.

janesvillean
May 29, 2009 at 12:15 a.m.
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Red, I sure think that the Sara/Helgesen project shows that downtown is still a viable commercial district. Even if we did everything perfectly we can't bring back the 1950s and earlier. The mass production of the car changed everywhere, not just Janesville, and we are really fortunate that we still have what we do downtown.

Red
May 28, 2009 at 9:55 p.m.
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madman1961 Bell Appliance was on the corner where the Helgeson building now stands.

madman1961
May 28, 2009 at 8:42 p.m.
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Does anyone remember what was on that corner before the current building was built?

Red
May 28, 2009 at 8:17 p.m.
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In 1970 something I did a senior class project multi media presentation for civics class called, "In My Little Town". The music was Simon and Garfuncle "in my little town I grew up believing God keeps His eye on us all . . . nothing but the dead and dying back in my little town." It featured a slideshow of all the boarded up businesses in downtown Janesville. I wish it weren't true but come on people you're gonna have to start thinking outside the "box" to reinvent Janesburg. Difficult times call for daring inovation. Only 50 years ago Janesville had a vibrant, living downtown with 2 movie theatres, Woolworth's with a lunch counter, Sears, Pennys, Bostwicks, banks, florists, Bell appliance, sporting goods stores, bars, the Gazette, Parker Pen, auto dealerships, music stores, churches, etc. Maybe it's better to let an old dog die but if it were on my watch I'd sure try to breath some new life into what once was thriving and viable.

sannio
May 28, 2009 at 5:43 p.m.
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I was at the new restaurant (can't remember the name) that's in the building, and I thought I was imagining things when I noticed the floor looked the same as it did the last time I was there back in the 70's. Maybe I wasn't imagining things after all. More seriously, why do I remember flooring in a place I visited once back in high school? It will be exciting to see what it looks like, and the parking ramp after remodeling. Hopefully the ramp won't fall apart like the last one.

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