Exhibit F.pdf

City of Ladysmith

Tax Incremental District (TID) #13 Project Plan Tax Increment Financing - District #13 City of Ladysmith, WI 152799 | er , 2021

TAX INCREMENTAL DISTRICT (TID) #13 PROJECT PLAN 152799

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Plan Approvals

Organizational Joint Review Board Meeting: August 31, 2021

Public Hearing at Plan Commission: September 7, 2021

Approval by Plan Commission: September 7, 2021

Adoption by City Council: September 27, 2021

Adoption by Joint Review Board: September 30, 2021

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City of Ladysmith Officials Common Council Kalvin Vacho Mayor

Mark Platteter District 1 Councilmember

William Morgan District 2 Councilmember

John Pohlman III District 3 Councilmember

Gerard Schueller District 4 Councilmember

James West District 5 Councilmember

Allen R. Hraban District 6 Councilmember

Marty Reynolds District 7 Councilmember

City Staff Al Christianson City Administrator

Shari Kavanagh City Clerk / Elections

Allen Kenyon City Attorney

Plan Commission Susan Moore

David Willingham

Kalvin Vacho

Melissa Rudack

Bob Grotzinger

Adam Kaiser

Brian Groothousen

Rachel Rodriguez

Joint Review Board Andy Albarado Northwood Technical College Representative

David Willingham Rusk County Representative

Laura Stunkel School District of Ladysmith Representative

Marty Reynolds City of Ladysmith Representative

Al Christianson, Sr. Public Representative

Short Elliott Hendrickson Inc. (SEH) was retained by the City of Ladysmith to assist in developing this Tax Incremental Project Plan. SEH is a multi-disciplined, professional services firm comprised of 800 engineers, architects, planners and scientists in a full range of transportation, civil, environmental and structural engineering services; urban design, community planning and architectural design; and technology and GIS services.

SEH is a registered trademark of Short Elliott Hendrickson Inc.

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Contents

1 Introduction

2 Qualified Statement of Findings

3 District Description

4 TID #13 Plan Goal and Objectives

5 Development Assumptions

6 Project Costs / Public Improvements

6.1 Eligible Expenditures

6.2 Anticipated TID #13 Project Costs

7 Relocation of Displaced Persons

8 Promoting Orderly Development

9 Compliance with Comprehensive Master Plan and Zoning

9.1 Comprehensive Master Plan Compliance

9.2 Zoning Compliance

10 Economic Feasibility

10.1 TID #13 Projected Tax Increment Revenue

10.2 TID #13 Projected Cash Flow

10.3 General Obligation Borrowing Capacity

11 Financing Methods

11.1 Municipal Borrowing

11.2 Federal and State Grant, Loan and Economic Development Programs28

12 Projected Share of Tax Increment for Overlying Jurisdictions

13 Boundary Description

Contents (continued) ii

List of Tables Table 1 – Total Equalized Value in Ladysmith TIDs

Table 2 – Projection of Total Equalized Value in Ladysmith TIDs Table 3 – Valuation Estimates of Anticipated New Development

Table 4 – Anticipated Project Costs / Public Improvements Table 5 – Administrative and Organizational Costs Table 6 – Projected Tax Increment Revenue

Table 7 – Projection of Cash Flow Table 8 – Annual Apportionment of TID Revenues*

List of Figures Figure 1 – TID #13 District Boundary Map with Aerial Photograph Figure 2 – TID #13 District Boundary Map Figure 3 – TID #9 District Boundary Map Figure 4 – TID #13 District Boundary Map with TID #9 Overlap Figure 5 – TID #13 Redevelopment Areas Figure 6 – WDNR Mapped Wetlands within TID #13 Figure 7 – Location of Public Improvement Projects and Redevelopment Areas Figure 8 – TID #13 One-Half Mile Radius Figure 9 – City of Ladysmith Existing Land Use Map for TID #13 Area Figure 10 – City of Ladysmith Existing Conditions / Zoning Map for TID #13 Area .. 23

List of Appendices Appendix A – TID #13 Real and Personal Property List

Appendix B – Legal Opinion

Appendix C – Municipal Resolutions

Appendix D – Publication Affidavits

152799

Tax Incremental District (TID) #13 Project Plan Tax Increment Financing - District #13

Prepared for the City of Ladysmith, WI

1 Introduction The City of Ladysmith, Wisconsin (the “City”) has prepared the creation of the Tax Incremental District (TID) #13 Project Plan as a mechanism to stimulate new private investment, redevelopment, and economic development within the boundaries of TID #13. TID #13 is being established as a Mixed-Use District. Growth within the District is anticipated to be a mix of commercial including health care, professional services, and mixed-use development.

The City intends to construct a series of public capital improvement projects that will improve public infrastructure within TID #13 and will serve as a catalyst to stimulate and facilitate growth predominately in assessed valuation of properties north of the Flambeau River, west of State Highway 27, along College Avenue and Port Arthur Road.

2 Qualified Statement of Findings The TID #13 Project Plan has been established to comply with Wisconsin Statutory requirements for the creation of Tax Incremental Financing Districts.

Statutory requirements (Wisconsin Stat. § 66.1105(4)(g)) as it applies to this Project Plan for TID #13 include:

TID #13 will have an expenditure period of 15 years (2021-2036) and a maximum life of 20 years (2021-2041).

TID #13 may be extended three addition years (until 2044), however, expenditures remain limited to the first 15 years of designation (Wis. Stat § 66.1105(7)(am)1, 2, and 3).

Activities and improvements are and will be related to commercial, industrial, and mixed-use land uses or related to public improvements that benefit and/or encourage private investment.

Activities and improvements are likely to encourage ancillary private investment.

Activities and improvements are likely to significantly enhance the value of the other real property in TID #13 as designated in this Project Plan and in the City overall.

The equalized value of taxable property within TID #13 (plus all existing TID’s) cannot and does not exceed 12 percent of the total equalized value of taxable property within the City (TID #8, #9, #10, #11 and #12).

TID #13 will be established as a Mixed-Use District. At least 50 percent, by area, of the real property in TID #9 is suitable for mixed-use development – at least two of the following types: residential, commercial, and industrial uses.

Less than 35 percent, by area, of the real property in TID #13 is currently and will in the future be used for retail business.

TID #13, a mixed-use TID, is not anticipated to have new platted residential lots (as defined under Wis. Stat § 66.1105). The total area will not exceed 35 percent of the total area of real property within TID #13.

The City will only allow tax increment revenue to be spent on newly platted residential development in TID #13 if one of the following applies: (1) Density of the residential housing is at least three units per acre, or (2) Residential housing is located in a conservation subdivision, as defined by Wis. Stat § 66.1027(1)(a), or (3) Residential housing is located in a traditional neighborhood development as defined by Wis. Stat § 66.1027(1)(c).

The City will limit project costs to: (i) expenditures related directly to a commercial, industrial or residential project or; (ii) the promotion of mixed-use, commercial, industrial or residential development, and (iii) public improvements that benefit or encourage private investment.

The City is setting up this Project Plan for TID #13 with an effective base value date of January 1, 2021 and is anticipated to consider adoption of a municipal resolution authorizing the creation of the district prior to September 30, 2021.

3 District Description

3.1.1 Area and Composition

The City of Ladysmith’s TID #13 is located west of State Highway 27 between the Flambeau River, along College Avenue and Port Arthur Road. The district has a mix of institutional, governmental, commercial, residential and recreation land uses. The city’s hospital is located in this district. The TID #13 boundary encompasses nine real property parcels and is located entirely within the City of Ladysmith. No part of the District was annexed to the City within the past three years.

A land use map may be found in Section 9, and a list of parcels may be found in Appendix A.

TID #13 is a geographically contiguous area consisting of whole tax parcels. A map of the District boundary follows in Figures 1 and 2.

3.1.2 District Valuation

Properties within TID #13 have a January 1, 2021 assessed value of $0 (real and personal property excluding the value of overlapping parcels in TID #9). Under Wis. Stat. § 66.1105(4)(gm)4c the equalized value of the taxable property in the district plus the value increment of all existing districts cannot exceed 12 percent of the total equalized value of the taxable property in the city.

Tax Incremental Financing districts in the City of Ladysmith currently contain 11.54% of the City’s total equalized value (as shown in Table 1). The value of current TIF districts in the City, as compared to the total equalized value of all properties in the City, is currently under the 12% limitation (11.54%), therefore the proposed TID #13 with $0 base value may be created in 2021 considering this rule.

Table 1 identifies all active TID’s within the City of Ladysmith in 2021, as well as the percentage of total equalized value of all taxable property in TIF Districts, as identified by the Wisconsin Department of Revenue (DOR) in the 2021 Value Limitation Report.

Table 1 – Total Equalized Value in Ladysmith TIDs

Table 2 identifies the impact of new value from the TID #13 creation on the 12% value limitation.

Table 2 – Projection of Total Equalized Value in Ladysmith TIDs

Base Year 2021 TID Value

TID Value Increment

2021 Total Equalized

Value of City

TID #8 2003 5,189,100 4,329,100

TID #9 2006 7,136,200 6,653,900

TID #10 2007 2,010,300 1,606,800

TID #11 2011 7,028,000 6,997,800

TID #12 2020 - -

Total 21,363,600 19,587,600 169,684,600

11.54%

Source: Wisconsin Department of Revenue, Annual Reports, 08/10/2021

Percent of Total Equalized Value of Taxable Property in TID's

Base Year

TID Value Increment

TID #8 2003 4,329,100

TID #9 2006 6,653,900

TID #10 2007 1,606,800

TID #11 2011 6,997,800

TID #12 2020 -

Total Existing Increment 19,587,600 Proposed Base Value of TID #13 2021 -

19,587,600 11.54%

Total Existing Increment Plus Proposed Base Value Estimated Percent of Total Equalized Value of Taxable

2021 Total Equalized Value of City

Maximum Allowable TID Value

169,684,600 X 12% = 20,362,152

Figure 1 – TID #13 District Boundary Map with Aerial Photograph

Figure 2 – TID #13 District Boundary Map

3.1.3 District Overlap of TID #9

The boundary of TID #13 overlaps the City of Ladysmith’s existing TID #9. The adoption resolution for TID #9 was approved by the City Council on August 14, 2006. TID #9 was created as a mixed-use district to promote the orderly and stable growth of the community and to promote commercial and residential development to provide a more diversified employment base. The geographic area and district boundary of TID #9 was amended in 2020 and the current boundary is identified on the map that follows in Figure 3. The maximum normal life for TID #9 is August 14, 2026.

TID #13 is being created to include four parcels from TID #9, with a 2021 assessed value of $90,400 (real and personal property). Development of parcels along College Avenue is anticipated, but outside the time frame where TID #9 would be able to recover anticipated project costs. By creating this overlay between TID #13 and TID #9:

TID #13 is established with a January 1, 2021 base year value.

The value of these overlapping parcels in TID #9 will be frozen at their January 1, 2021 equalized value.

When calculating the total equalized value of properties in all TID’s, as compared to the City’s total equalized value of all taxable property in the City, the 12 percent test, the calculation would include the equalized value of the taxable property in TID #13, plus the value increment of all existing districts (TID #8, #9, #10, #11 and #12), minus the 2021 equalized value of the TID #9 overlapping parcels. (Which as noted in Section 3.1.2 would be met with this Project Plan.)

A map identifying the TID #9 boundary follows in Figure 3 and a map identifying the overlap between TID #9 and TID #13 follows in Figure 4.

Figure 3 – TID #9 District Boundary Map

Figure 4 – TID #13 District Boundary Map with TID #9 Overlap

4 TID #13 Plan Goal and Objectives The overall goal of the City’s redevelopment efforts within TID #13 is to support the expansion of healthcare facilities, professional services, and mixed-use residential, along College Avenue to strengthen the economic vitality of Ladysmith. The City intends to make public investments to stimulate new development and to encourage the retention and/or expansion of existing businesses, to add assessed value to the City’s tax base and to create new employment opportunities.

TID #13 will also advance the City of Ladysmith’s planning objectives identified in the 2009 Comprehensive Plan.

5 Development Assumptions Based on past trends, it is anticipated that TID #13 will experience, on average, a three percent increase in taxable equalized value per year over the life of the District. Projected increases to personal property valuations are not included in the Plan’s estimation of average increases, so as to provide a conservative financial estimate.

This Project Plan anticipates an estimated value increase of $9,600,000 in new taxable development within TID #13 during the life of the District. The new taxable development anticipated includes those listed below. Figure 5 includes a map of these redevelopment areas.

Marshfield Clinic/Hospital Expansion, vacant parcel between Port Arthur Rd and College Avenue

Rusk County Memorial Hospital, 900 College Avenue

Redevelopment of this site and existing buildings is a primary objective of the TID #13 Project Plan. The site consists of two parcels currently owned by Rusk County Memorial Hospital, located west of State Highway 27 and south of College Avenue.

The redevelopment area also includes two parcels owned by Rusk County, north of College Avenue, which are partially undeveloped and currently serve as parking lots supporting adjacent institutional and healthcare uses.

This project would have a significant benefit to Ladysmith and the region, as expanded healthcare facilities would bring more people into the City of Ladysmith for healthcare services, additional services, shopping, and restaurant visits. The facility’s expansion should also provide additional employment opportunities.

Table 3 outlines the estimations of new value anticipated with TID #13.

Table 3 – Valuation Estimates of Anticipated New Development

At this time, it is not guaranteed when or if the redevelopment projects listed above will occur.

The new value estimates are based on real property improvements and do not include personal property which will also contribute to the value increment.

These sites are the only currently known redevelopment sites within TID #13, however a successful tax incremental financing district experiences development and/or redevelopment of other properties within the district, helping to improve all properties within the district and within the City as a whole.

If other properties within TID #13 meet the redevelopment goals of this district and meet the “but for” test established by the State of Wisconsin, the City will consider TIF assistance through the City’s review and approval process.

Project 1/1/2021

Valuation New

Valuation Value

Increment Construction

Year Comments Parcels Location

Marshfield Clinic/Hospital Expansion

-$ 7,000,000$ 7,000,000$ 2021-2022 taxable clinic uses 246-03560-0000 Vacant Parcel Between Port Arthur Rd and College Ave

Rusk County Memorial Hospital Redevelopment

-$ 2,600,000$ 2,600,000$ 2024-2025 65 residential units @ $40,000 each; Currently tax exempt (X3-County)

246-03599-0000 900 College Ave

Total -$ 9,600,000$ 9,600,000$

Figure 5 – TID #13 Redevelopment Areas

6 Project Costs / Public Improvements Expenditures from TID #13 increment revenue including development incentives and expenditures for public improvements which will be linked to new mixed-use developments and redevelopment within the District. This development will increase property values and generate new tax increment which will allow the City to recover the costs it spends on items identified in this Project Plan.

6.1 Eligible Expenditures

Wis. Stat. § 66.1105(2)(f) defines project costs that are eligible to be funded by tax incremental financing if the costs are identified in this Project Plan. Eligible project costs, capital improvement costs, and administrative / organizational costs follow.

6.1.1 Eligible Project Costs / Public Improvements through TID #13 The City’s use of TID #13 tax increment revenue may include reimbursement for qualified public improvement expenditures made by the City for the purchase of non-recurring capital expenditures, such as the following:

A. Infrastructure for the expansion, development or redevelopment of commercial, residential, and mixed-use developments, including water and sanitary sewer extensions or reconstructions, and stormwater improvements;

B. Street resurfacing, replacement or reconstruction, including essential public right-of-way improvements;

C. Site development including, but not limited to storm sewers, drainage ways, filling, and grading;

D. Right-of-way traffic signage and signalization, street and path lighting;

E. Ancillary right-of-way amenities or improvements related to and including but not limited to: wayfinding, gateway monuments, bollards, trash receptacles, benches, bike racks, tree grates, landscaping pavers;

F. Pathways, bike paths, pedestrian sidewalks, municipal parking lot improvements;

G. Property acquisition and clearance, building remodeling, adaptive reuse of buildings;

H. Other one-time public works, public safety, public health or economic development projects that the City determines are either in, serve or are physically connected to TID #13 which further the redevelopment and economic development purposes of this Project Plan; and

I. Any public capital improvements outside TID #13 which comply with Wis. Stat. § 66.1105(2)(f)1.k.

For all the above public capital improvement projects identified or as may be qualified, the costs of engineering, design, survey, inspection, materials, construction, installation, acquisition of equipment, restoring property to its original condition, landscaping, legal and other consultant fees, testing, permits, judgments, claims, or damages and other expenses are included as project costs.

The City may also utilize TID #13 tax increment revenue for cash grants made by the City to owners, lessees, or developers of land that is located within the tax incremental district if the grant recipient has signed a development agreement with the City and a copy of which is sent to the Joint Review Board to comply with Wis. Stat. § 66.1105(2)(f).

6.1.2 Administrative/Organizational Eligible Expenses through TID #13 Other eligible and qualified TID #13 expenses, including administrative and organizational costs authorized through this Project Plan include the following:

A. Administrative costs related to the implementation of this Project Plan to benefit development and redevelopment of TID #13, including: consultant fees, auditor fees, public employee fees, and other salaries and fees incurred throughout its implementation as may be authorized and qualified by Wis. Stat. § 66.1105(2)(f).

B. Environmental studies and remediation including regulatory fees, floodplain delineations, floodplain hydraulic and hydrologic analysis, environmental remediation including the removal of above or below ground contamination or hazardous materials.

C. Acquisition of real property or easements for right-of-way, site and/or public capital improvements or facilities.

D. Relocation costs related to the implementation of this Project Plan, including the costs of developing a relocation plan and relocation benefits as required by Wis. Stat. §§ 32.19 and 32.195, as they may pertain to the acquisition of property for identified and listed public improvement projects, as may be authorized and qualified by existing State Statutes.

E. Finance costs related to the implementation of this Project Plan, including, but not limited to, principal, interest, finance fees, bond or other obligation issuances related expenses, legal fees, insurance, and other expenses, as may be authorized and qualified by existing State Statutes.

No TID expenditures may be made before the adoption of the municipal resolution by the City Council, except for costs directly related to planning for and the establishment of TID #13.

6.1.3 Ineligible TID #13 Expenses

The Wisconsin Department of Natural Resources (WDNR) Surface Water Data Viewer Map does not identify any mapped wetlands in and around Ladysmith’s TID #13. Should any wetlands be identified within the boundary of TID #13 they are excluded from any Project Plan activities as per Wis. Stat. § 66.1105(2)(k).

Figure 6 – WDNR Mapped Wetlands within

TID #13

6.2 Anticipated TID #13 Project Costs

6.2.1 Anticipated Project Costs / Public Improvements

The City intends to implement public capital improvement projects and incur other project costs directly related to economic development activities as part of this Project Plan. These improvements will be made as development and investment occurs, based on project need and the ability to recover incurred public improvement expenses that lead to and stimulate private mixed-use investment in TID #13. Project costs including public capital improvements are planned to be constructed within the 15-year expenditure period for TID #13 (2021-2036). However, the City reserves the right to implement only those projects that, in whole or part, remain feasible and viable as the plan period proceeds, and priorities may change.

This section describes the future project costs for TID #13 in order to support the new development anticipated in Section 5 and to achieve the goals and objectives of the District. The primary public improvements and project costs intended for TID #13 through this Project Plan are described below. A map identifying the locations of the proposed public improvements and redevelopment areas is found in Figure 7. Table 4 identifies the TID #13 estimated project costs.

Potential TID #13 project costs and public improvements include the following.

A. Clinic/Hospital Building Remodel

Facilitate the adaptive reuse and building remodel of the Clinic/Hospital Building for multifamily, senior living, or other creative building reuse that will provide needed services to Ladysmith or add tax base.

B. Clinic/Hospital Building Demolition / Parking Lot Improvements

Raze the circa 1946 four-story clinic/hospital building and replace with parking area or courtyard.

C. College Avenue Reconstruction – Options (a) and (b)

Relocate, reconstruct, or resurface College Avenue from W 10th Street to near State Highway 27. If relocated, underlying utilities likely to be relocated as well. Project to include sidewalk, curb and gutter. Relocation likely to involve moving access road to north and east edges of current parking areas to minimize hazards created by keeping entering and exiting traffic outside pedestrian walkway areas.

D. Parking Lot Improvements

Rebuild current parking lots. Access improvements (i.e., enclosed walkway between parking lots and medical facilities).

E. Sports Complex Relocation

Relocate specific recreational facilities (i.e., soccer field, softball fields, Little League fields, tennis courts, basketball courts) and construct new facilities, trails, and pickle ball courts.

F. Pedestrian / Bike Route along Flambeau River

Acquisition, planning, and construction of a multi-use trail along the Flambeau River to create a public amenity for the employees, customers, residents and visitors to this mixed-used area of the City. Estimated costs in Table 4 do not include costs for acquisition or rock excavation.

G. Developer Subsidy ($ varies based on the development)

This is a potential cash grant to the developer for the purpose of sharing costs to encourage the desired kind of improvements and assure tax base is generated sufficient to recover project costs, related to the redevelopment of these parcels. The amount of the subsidy would be based upon a percentage of the amount of increment revenues created by new development subject to a cap equal to the amount of the deficit documented by the developer.

This cash grant would only be approved by the City if the developer provides sufficient financial documentation (e.g., pro forma, feasibility study) demonstrating that their proposed project will not cash flow without financial assistance in the form of a cash grant from TID #13. In other words, the developer must reasonably demonstrate that the development would not occur as planned “but for” the developer subsidy. Prior to the provision of such a cash grant, the developer should first reasonably exhaust alternative funding sources and a signed development agreement with the City must first be executed.

Developer subsidies are a potential to assist with the redevelopment and adaptive reuse of the former hospital building.

H. Demolition, Haz-Mat, Asbestos Abatement ($ varies based on the development)

If redevelopment / adaptive reuse of the existing hospital building does not occur in a timely manner or is deemed not financially feasible, then consideration could occur of building demolition. Demolition costs including an estimate of asbestos abatement and hazardous materials handling have been included as a potential contingent project cost.

I. Easement and/or Land Acquisition ($ unknown)

J. Water, Sanitary Sewer, and Storm Sewer Extensions ($ unknown)

These public utility extension projects may include new lines, realignments and/or abandonment. Until master planning for the area is complete, the scope of the required utility improvements is unknown.

K. Street Extensions and/or Abandonments ($ unknown)

Developments within TID #13, including the proposed healthcare facilities expansion could necessitate the improvement, abandonment, or extension of streets, based on the final master plan. Such street projects may be designed and pursued in conjunction with the previously mentioned utility extensions.

L. Low-Cost Housing ($ unknown)

Costs to create, provide, or rehabilitate low-cost housing.

In addition to identifying project costs, Table 4 also identifies the priority level of projects, either as a “Priority” or a “Contingent” project. Priority projects are anticipated to be supported by the projected cash flow for TID #13 as demonstrated in Section 10. The City believes there is a potential to exceed the projected revenues which will allow for the financing of the proposed Contingent projects, in whole or in part. Contingent projects would only be funded by TID #13 if the City determines:

A. Sufficient TID #13 revenues exist to provide funding for the Contingent project(s);

B. The Priority TID #13 projects are completed, sufficiently financed, or are no longer a priority;

C. The statutory expenditure period for TID #13 has not ended;

D. Tax increment revenue will be generated to fund the project expenditures within the remaining life of TID #13; and

E. In the case of increment sharing, the developer(s) has provided a feasibility analysis demonstrating that the “but for” test has been met.

Cost estimates in Table 4 are based on information available at the time this Project Plan was developed for the creation of TID #13. Actual project costs may vary from the estimates in this document. The City may need to increase certain costs to account for inflationary increases or other unknown or uncontrollable circumstances. The City may also increase certain project costs described herein without a Project Plan amendment if other project costs in this Project Plan are likewise reduced or not implemented.

Table 4 – Anticipated Project Costs / Public Improvements

Project Cost Total Priority or Contingent

Project Expenditure Year

A. Clinic/Hospital Building Remodel - Remodel Assistance, Compliant with "But For" Test

$ 500,000 2022 Priority

B. Clinic/Hospital Building Demolition / Parking Lot Improvements

$ 303,710 2022 Priority

C (a). College Avenue Reconstruction (Option a.) $ 321,850 2023 Priority

C (b). College Avenue Relocation (Option b.) $ 456,480 2023 Priority

D. Parking Lot Improvements $ 234,100 2023 Contingent

E. Sports Complex Relocation $ 1,179,830 2025 Contingent

F. Pedestrian / Bike Route along Flambeau River $ 537,650 2026 Contingent

Project Total $ 3,533,620

Table Notes:

(1) Cost estimations are made w ith 2021 dollars and have not been adjusted to reflect inflation over the next 20 years.

Figure 7 – Location of Public Improvement Projects and Redevelopment Areas

Pursuant to Wis. Stat. § 66.1105(2)(f)1.n, the City may undertake projects within territory located within one-half mile of the boundary of the TID #13 provided that:

(1) the project area is located within the City’s corporate boundaries, and

(2) the projects are approved by the Joint Review Board.

The cost of projects completed outside the District within the one-half mile distance from TID #13, pursuant to this section, are eligible project costs and may include any project cost that would otherwise be eligible if undertaken within the District. Within the one-half mile radius of TID #13, additional public improvements may be considered to encourage development that will achieve the goals identified in this Project Plan. A map of the one-half mile radius from TID #13 follows in Figure 8. Projects anticipated outside the TID #14 boundary but within the one-half mile radius include:

Pedestrian / Bike Route along Flambeau River (Item F listed above)

Water, Sanitary Sewer, and Storm Sewer Extensions (Item J listed above)

Street Extensions and/or Abandonments (Item K listed above)

Figure 8 – TID #13 One-Half Mile Radius

6.2.2 Anticipated Administrative/Organizational Costs

For the creation, management, and implementation of this Project Plan, additional non-construction, professional services, organizational and administrative costs are necessary and are included as eligible costs to be repaid by the positive tax increment. Potential organizational and administrative costs include but are not limited to: legal services; required reporting to the Wisconsin Department of Revenue; required public notices; and project plan development and creation costs. This includes costs related to the following required reporting to the Wisconsin Department of Revenue:

Three CPA audits: (i) after 30% of the expenditures are made; (ii) within 12 months after the end of the TID #13 expenditure period; and (iii) within 12 months after the termination of TID #13.

TID #13 creation fee ($1,000 in 2021)

TID #13 annual reporting fees ($150/year)

Financing, debt service, and capitalized interest related to the TID #13 project costs identified in Section 6.2.1 are also included as eligible project costs to be repaid by the positive tax increment.

These potential costs include related professional services fees, such as financial advisor and bond counsel.

Table 5 – Administrative and Organizational Costs

6.2.3 List of Estimated Non-Project Costs

Non-project costs are public improvement projects that only partly benefit the District or are not eligible to be paid with funds from the TID tax increment.

Examples of non-project costs include:

Public improvement made:

o Within the TID — that also benefits property outside the TID. The portion of the total project costs allocated to the properties outside the TID is a non-project cost.

o Outside the TID — that partially benefits property within the TID. The portion of the total project costs allocated to the properties outside the District is a non-project cost.

Projects started within the TID as part of this Project Plan implementation that are paid fully or in part by impact fees, grants, special assessments or revenues other than TIF increments.

There are no non-project costs identified at this time for TID #13.

Eligible TID Related Planning, Administration and Organization Costs, pursuant to Wis. Stat. § 66.1105(2)(f)

TIF Eligible Costs

Project Plan Administrative Costs $ 23,000 Public Hearing Publication Costs $ 1,000 Wi-DOR Fee for TID Creation $ 1,000 Wi-DOR Annual Reporting Fees $ 3,000 Legal Fees $ 4,500 Municipal Financial Advisor $ 6,500 Bond Counsel Fees $ 5,500 CPA Audits $ 10,500

Total $ 55,000

7 Relocation of Displaced Persons It is possible that implementation of this Project Plan results in the acquisition of properties for redevelopment (i.e., the Marshfield Clinic and the Rusk County Memorial Hospital) and may possibly include relocation of displaced persons. If relocation become necessary during the life of TID #13, the City will comply with the following. Relocation of residential or business occupants by the City of Ladysmith will be in accordance with Wisconsin Relocation Law and in conformance with federally required standards when federal funds are uses. If the City should begin negotiations for the acquisition of property or easements, affected property owners will be contacted to determine if there will be displaced persons as defined by Wisconsin Statutes and Administrative Rule. If it appears there will be displaced persons, all property owners and prospective displaced persons will be provided with an informational pamphlet prepared by Wisconsin Department of Administration (WDOA) on relocation benefits. Any person or business to be displaced will be given a pamphlet on relocation benefits. The City will file a Relocation Plan with the Wisconsin Department of Administration and shall keep records as required in Wis. Stat. § 32.27. The City will provide each owner a full narrative appraisal, a map showing the owners of all property affected by the proposed project and a list of neighboring landowners to whom offers are being made as required by law.

8 Promoting Orderly Development The creation of TID #13 and the implementation of the projects in this Project Plan will promote orderly development in the City of Ladysmith by encouraging the redevelopment of a structure that is planned to be vacated and development that is anticipated to occur along a major corridor within Ladysmith. By encouraging development where properties are already served by public infrastructure, like that anticipated in this Project Plan, it reduces public infrastructure costs, urban sprawl and supports the vibrancy of other businesses and services in Ladysmith.

By utilizing tax incremental financing the City can increase property values through development projects that result in an increased tax base. TID #13 will continue and expand the development efforts that have occurred in TID #9. TID #13 will result in an increase to the tax and employment base of Ladysmith and will generate positive secondary impacts in the community through the growth of its healthcare and services sectors.

9 Compliance with Comprehensive Master Plan and Zoning

9.1 Comprehensive Master Plan Compliance

The City of Ladysmith is proposing to create TID #13 to encourage development and to promote and expand mixed-use developments in the city, as identified in Figure 1.

The City of Ladysmith’s Comprehensive Plan supports the development and redevelopment goals outlined in this Project Plan. The Comprehensive Plan identifies several implementation activities which align with the goals of TID #13 including the following:

Work with Rusk County to develop a plan for hospital reuse if a new hospital is built.

Expand conservancy areas along Flambeau River or at other valued areas when opportunities exist.

Work with federal and state housing agencies and to address housing affordability issues.

Work with Planning Commission to seek approvals from the Council to rehabilitate or redevelop housing.

Utilize tax incremental financing districts to provide assistance for financing future projects in the City including construction of a roundabout at the U.S. 8 and WI 27 intersection, and to assist with development of the Rusk County Memorial Hospital and the Mount Senario College campus.

Through the implementation of this Project Plan, the development of lands within TID #13 will occur in a manner that is consistent with the Comprehensive Plan’s planned land uses.

Existing land uses in TID #13 are identified in Figure 9.

9.2 Zoning Compliance

Most properties in TID #13 are zoned Commercial, Multi-Family Residential (R-3), and Planned Unit Development (PUD). The City of Ladysmith’s March 2021 Zoning Map for the TID #13 area, identifying existing conditions is located in Figure 10 below. At least 50 percent (by area) of the real property within the district is suitable for mixed-use development and will remain zoned for such uses for the life of the TID.

As a result of anticipated new development, redevelopment or rehabilitation of real property, some zoning changes may be necessary for properties within TID #13, depending on the proposed use. The zoning changes will occur in a manner that is consistent with the City’s Comprehensive Plan.

Figure 9 – City of Ladysmith Existing Land Use Map for TID #13 Area

Figure 10 – City of Ladysmith Existing Conditions / Zoning Map for TID #13 Area

10 Economic Feasibility Under Wis. Stat § 66.1105, 100 percent of the property taxes levied against new property value created within a TIF district are retained by the District (TID #13) to pay for improvement costs that were incurred to attract the new development. Implicit in the law is the concept that without the improvements, the attraction of new development, the creation of new jobs, and the expansion of the tax base would not occur.

The economic feasibility of this Project Plan is dependent upon the tax increment revenue generated from increment captured assessment within TID #13. There are three critical components in determining the economic feasibility of the Plan:

1. Inflation-driven increases in property value.

2. New development increases in property value within the TID #13 district boundaries.

3. Variances or change in the full value tax rate. (For the purposes of this Project Plan, the tax rate was held constant.)

Wisconsin Tax Increment Law establishes that the maximum life of a “mixed-use” TID is 20 years unless extended by the Joint Review Board for a maximum of three additional years (23 years total). Project expenditures may be incurred until five years before the maximum life of the TID. In the case of a mixed-use TID, this allows the City 15 years in which to make the public improvements and implement the project costs needed to stimulate and support development.

The property tax increments generated by the new development are retained by the City until all TID costs are paid or until the maximum life of TID #13.

The City of Ladysmith’s TID #13 will be created by Council action prior to September 30, 2021, for a January 1, 2021 base year. Therefore, all TID project improvements must be completed by 2036. The taxes on any increased property value in the district between 2021 and 2041 will be retained by the District (TID #13) to repay the TID project costs. TID #13 will be dissolved when all TID project costs are repaid, or in 2041, whichever comes first.

To determine the economic feasibility of the proposed Tax Incremental District, estimated TID project costs must be compared to projected property tax increments within TID #13. The TID is considered economically feasible when tax increments exceed TID costs over the 20-year life of the tax incremental district.

10.1 TID #13 Projected Tax Increment Revenue

Property values within TID #13 are expected to increase as a result of the construction and implementation of public capital improvements which will generate tax increment revenue to the City to pay for qualified expenses for public capital improvement projects identified herein, either as: (i) pay-as-you-go as tax increment revenue is generated annually or (ii) a pledge of tax increment revenue to payments on principal and interest of financial instrument obligations (debt service).

Tax increment revenue to the District from TID #13 is projected to come from two sources:

1. Inflation: For this analysis, we used a three percent increase in property value.

2. Property Investment: New investment within TID #13 is anticipated to occur by property owners as a result of the implementation of this Project Plan and as identified in Section 5 and in Table 3, as Value Added. Throughout the life of the TID, general property improvements will occur within TID #13, however, the increased assessed valuation associated with these general improvements has not been quantified or applied to this Project Plan for conservative scenario estimates.

3. Market Value Increases: The market value of real property in the district will increase over time, which will influence increases in assessed valuation of property in TID #13.

These increases are independent of inflation.

This Project Plan utilizes conservative assumptions about the future to determine the economic feasibility of TID #13. Additionally, the property tax mill rate has not been projected to increase.

Anticipated increases in assessed valuation for properties within TID #13 and corresponding tax increment revenue are described in Section 5 and are shown in the following table:

Table 6 – Projected Tax Increment Revenue

Based on the assumptions listed above, $9,600,000 in new property value is anticipated between 2021 and 2041. Over the life of TID #13, this will generate $6,956,330 in tax increment revenue.

Prior to the award of any cash grant/developer subsidy as envisioned within this Project Plan, the City will enter into a development agreement with the developer. The development agreements are binding contracts that will guarantee the minimum amount of investment needed to fully amortize all TID costs associated with each project within 10-15 years. The City will limit the implementation of all TID expenditures until the actual levels of new property value are known and sufficient increment is available to pay project costs.

Construction

Year Valuation

Year Revenue

Year

Value Added / Change in Increment

Total Increment (3% Inflation)

TID Mill Rate

Increment Revenue

1 2021 2022 2023 $ 2,500,000 $ 2,500,000 29.11 72,790$ 2 2022 2023 2024 4,500,000 7,075,000 29.11 205,980$ 3 2023 2024 2025 1,300,000 8,587,250 29.11 250,010$ 4 2024 2025 2026 1,300,000 10,144,870 29.11 295,360$ 5 2025 2026 2027 10,449,220 29.11 304,220$ 6 2026 2027 2028 10,762,700 29.11 313,350$ 7 2027 2028 2029 11,085,580 29.11 322,750$ 8 2028 2029 2030 11,418,150 29.11 332,430$ 9 2029 2030 2031 11,760,690 29.11 342,410$

10 2030 2031 2032 12,113,510 29.11 352,680$ 11 2031 2032 2033 12,476,920 29.11 363,260$ 12 2032 2033 2034 12,851,230 29.11 374,160$ 13 2033 2034 2035 13,236,770 29.11 385,380$ 14 2034 2035 2036 13,633,870 29.11 396,940$ 15 2035 2036 2037 14,042,890 29.11 408,850$

16 2036 2037 2038 14,464,180 29.11 421,120$ 17 2037 2038 2039 14,898,110 29.11 433,750$ 18 2038 2039 2040 15,345,050 29.11 446,760$ 19 2039 2040 2041 15,805,400 29.11 460,160$ 20 2040 2041 2042 16,279,560 29.11 473,970$

TOTALS 9,600,000$ 6,956,330$

Table Notes:

(1) The value added is projected; actual development and equalized values may vary from estimates.

(2) Projection assumes no change to current tax rate.

(3) Expenditure period for original, unamended Project Plan expenditures is 15 Years from date of TID #13 creation.

The overall TID #13 is planned to be able to recover all costs by the year 2041. Contingent public improvement projects will not be implemented if tax increment revenue is not projected to support improvements.

10.2 TID #13 Projected Cash Flow

An estimation of the TID #13 project costs required to spur priority redevelopments is outlined in Table 7 along with a projection of borrowing costs and increment revenue.

15-Year Expenditure Period (2021-2036)

Table 7 – Projection of Cash Flow

10.3 General Obligation Borrowing Capacity

The City of Ladysmith has sufficient resources to finance this Project Plan’s proposed public capital improvement projects and administrative and organizational costs. The Fiscal Year 2021 Municipal Budget outlines that the City has $4,514,625 in outstanding long term general obligations, which is 53 percent of available borrowing capacity, based on the City’s January 1, 2021 TID-in equalized value of $169,684,600.

The City reserves the right to pledge tax increment revenue to qualified financial obligations for identified public capital improvement projects and improvements proposed through the use of debt backed by the general obligation borrowing capacity of the City.

11 Financing Methods

11.1 Municipal Borrowing

Wisconsin Statutes provide several methods of financing the cost of improvements in tax incremental districts including municipal borrowing.

Municipal debt obligations can be secured in one of two ways:

(1) General Obligation Pledge – General obligation debt is secured by the full faith, credit, and taxing power of the issuer. Repayment of the obligation is secured by an irrepealable tax levy imposed at the time the obligation is issued. Wisconsin Statutes limit the principal amount of outstanding general obligation debt a community may have to not exceed five percent of its total equalized value.

(2) Revenue Pledge – Repayment of the obligation is secured by a pledge of specified revenues such as water or sewer system revenues, tax increments or special assessments. Revenue pledges generally do not count against a municipal taxing unit’s general obligation borrowing capacity or debt limitation. However, this type of borrowing is viewed as less secure credit than a general obligation pledge so typically includes a higher interest rate and is more costly to issue.

The City anticipates using general obligation borrowing to fund TID project costs, however a determination will be made at the time the borrowing is needed, to ensure that the debt is most appropriately structured considering the principal amount, timing of the new increment, and outstanding municipal obligations at the time of the borrowing.

11.2 Federal and State Grant, Loan and Economic Development

Programs The City may be able to leverage federal and/or state grant and loan program funds to support the redevelopment objectives in this TID #13 Project Plan.

The U.S. Economic Development Administration (EDA) has programs such as the Public Works and Economic Adjustment Assistance Program, which may be available to supplement public infrastructure investments within the City and TID #13.

The U.S. Department of Agriculture (USDA) has programs such as the Rural Housing Service Community Facilities Program and the Housing Preservation Program. The Community Facilities

Program offers direct loans, loan guarantees and grants to develop or improve essential public services and facilities in communities across rural America. These amenities help increase the competitiveness of rural communities in attracting and retaining businesses that provide employment and services for their residents. The Housing Preservation Program provides grants to sponsoring organizations for the repair or rehabilitation of housing owned or occupied by low-and very-low-income rural citizens.

State of Wisconsin grant / loan programs include the following:

Community Development Block Grant - Public Facilities Program (CDBG-PF) through the Wisconsin Department of Administration (WDOA). CDBG-PF funds help support infrastructure and facility projects for communities. Examples of eligible projects include improvements, repairs, or expansions of streets, drainage systems, water and sewer systems, sidewalks, and community centers. Grants are limited to projects that, if implemented, meet a CDBG National Objective. This highly competitive program offers grants up to $1,000,000 with a required 2:1 ratio of matching funds (e.g., maximum of $2 CDBG for every $1 local match funds). A project may qualify as benefitting Low- Moderate Income (LMI) persons on an area basis if at least 51 percent of the persons residing in the area served by the activity are of LMI. Applications are due annually in May.

Community Development Block Grant - Public Facilities for Economic Development (CDBG-PFED) Program through the Wisconsin Department of Administration (WDOA).

CDBG-PFED grant funds are awarded to local governments for public infrastructure projects that support business expansion or retention. Examples of eligible applications include: new or improved water & sewer service and streets that result in business expansion and job opportunities for low- and moderate-income individuals. The program offers grant funds for up to half of the total project cost OR up to $500,000; a match of 50% of project costs is required. If the project retains jobs, CDBG funds must be used to benefit low-to-moderate income (LMI) individuals. At least 51% of the hires should be LMI individuals. Applications may be submitted at any time of the year and are reviewed by the WDOA as they are received.

Community Development Block Grant – Small Cities Housing Program through the Wisconsin Department of Administration (WDOA). This program provides grants to local governments for housing programs which principally benefit low to moderate income (LMI) households. These funds are primarily used for rehabilitation of housing units, homebuyer assistance, and small neighborhood public facility projects. CDBG dollars are flexible and responsive to local needs. In addition to addressing LMI housing needs, CDBG can be used to leverage other programs or serve as a local match. The grant also can be used as an incentive to involve the private sector in local community development efforts or to respond to area needs. The CDBG program often serves as a catalyst for other community development projects. Eligible activities include:

o Rehabilitation of dwelling units.

o Removal of architectural barriers.

o Homeownership opportunities for renters.

o Payment of relocation costs and benefits.

o Small public…