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Janesville City Council to formalize opportunity zone

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Victor Grassman

JANESVILLE — A Janesville company has successfully applied for and been awarded tax credits that are designed to encourage job creation and are available through a new Development Opportunity Zone created by the state.

One source said that SSI Technologies would be the first company to receive the tax credits.

The Legislature created a Development Opportunity Zone for Janesville in 2009. Qualifying businesses that make capital investments and/or create or retain jobs can quality for state income tax credits, according to a memo by Vic Grassman, economic development director for the city.

The Janesville opportunity zone received an initial allocation of $5 million in tax credits, and companies have five years to apply for them. If the initial allocation runs out within that time, a second $5 million over an additional five-year time frame is available.

The city council on Monday will be asked to formally approve the zone and backdate its creation to March 1 so that the company can begin counting jobs created.

The agenda material did not include specifics about the company, credits to be awarded or the number of jobs expected to be created.

Grassman would not confirm that SSI is the company. He said the Department of Commerce wants to issue a press release, so he must wait to give out more details until Monday night.

Tony Hozeny, communications officer for the Department of Commerce, said he would not give details early and advised the Gazette instead to file an open records request with the city.

An open records request would not yield information by Monday.

The minimum standards to be met in an opportunity zone are creation of 10 or more full-time jobs and/or a capital investment of $10,000 per employee or $1 million, whichever is less.

“We have an existing company expanding,” Grassman said. “We needed to get this in gear so they can start counting their jobs.”

The state Department of Commerce is the final authority in deciding if tax credits should be given to a company. The level of the credits is based on the estimated future taxes to be paid.

SSI, located at 3330 Palmer Drive, recently announced plans to build a 10,350-square-foot addition.

A representative of the company who recently appeared before the plan commission said the company might add 40 people to a shift in the future but the growth would be slow.

SSI has operated at the current location since 1978 and manufactures powdered metal components. Production is about 80 percent automotive, providing parts such as anti-lock brake components and exhaust flanges.

SSI also sells to other industries, such as those involved in military food processing and HVAC equipment.

If you go

The Janesville City Council will meet at 7 p.m. Monday in City Hall, 18 N. Jackson St. Items on the agenda include:

-- A motion to approve a claim from Kathryn and Michael Davis for $9,759. The couple was involved in a motor vehicle accident with a Janesville Police Department squad car Jan. 11, 2008. Both were injured, according to a city memo.

-- A public hearing to rezone property at 1102 Pliny Ave. to allow for open storage on the site. The vacant lot is immediately south of the Wisconsin & Southern Railroad. The plan commission has recommended that the council deny the request because it is not consistent with the city’s comprehensive plan. A home on the property was torn down in 2002. The lot was later purchased by Frank Donahue, who has used the property for outdoor storage for such items as vehicles, trailers, boats and appliances, according to a memo to the council. The city has received complaints about the storage and has asked the owner to remove the items. Since outdoor storage is prohibited in residential districts, Donahue requested to rezone the property, according to the memo.

-- A public hearing on an ordinance that gives the city authority to police illegal discharges into the storm sewer system, something required by the Wisconsin Department of Natural Resources. Illegal discharge is described as anything other than clear water. Examples of that include rainwater, air conditioning condensation and water from sprinklers. The ordinance gives the city the authority to identify illegal discharge and work with the property owners to correct the discharge, impose penalties and recover costs.

-- Authorization to buy a home at 215 Linn St. for $21,775. The money comes from a federal grant program. The property is a foreclosed home owned by Federal Home Loan Mortgage Corp. Staff recommends that the home be demolished at a cost of $11,000 because the interior is in poor condition. Adjoining property owners would get a chance to buy portions of the vacant property.