66.1103(7)(h)
(h) The interest on the bonds, or on any debt which is replaced by the proceeds of the bonds, for a reasonable time prior to construction or acquisition, during construction or acquisition and for not exceeding 6 months after completion of construction or acquisition; and
66.1103(7)(i)
(i) A reserve for payment of the principal of and interest on the bonds.
66.1103(7)(j)
(j) The financing of the acquisition cost, incurred after the date of adoption of the initial resolution, of property acquired from an authorized developer which is substantially completed or under construction on July 25, 1980, and which is substantially unused prior to the acquisition, except the authorized developer may have leased the property prior to its acquisition, for a period not to exceed 2 years, for the purpose of deriving revenue from the property pending its sale.
66.1103(8)
(8) Purchase. The municipality or county may, by or with the consent of the eligible participant, accept any bona fide offer to purchase the project which is sufficient to pay all the outstanding bonds, interest, taxes, special levies and other costs that have been incurred. The municipality or county may also, by or with the consent of the eligible participant, accept any bona fide offer to purchase any unimproved land which is a part of the project, if the purchase price is not less than the cost of the land to the municipality or county computed on a prorated basis and if the purchase price is applied directly or indirectly to the payment of the principal or interest on the bonds.
66.1103(9)
(9) Payment of taxes. If an industrial project acquired by a municipality or county under this section is used by a private person as a lessee, sublessee or in any capacity other than owner, that person is subject to taxation in the same amount and to the same extent as if that person were the owner of the property. Taxes shall be assessed to the private person using the real property and collected in the same manner as taxes assessed to owners of real property. When due, the taxes constitute a debt due from the private person to the taxing unit and are recoverable as provided by law, and the unpaid taxes become a lien against the property with respect to which they were assessed, superior to all other liens, except a lien under
s. 292.31 (8) (i) or
292.81, and shall be placed on the tax roll when there has been a conveyance of the property in the same manner as other taxes assessed against real property.
66.1103(10)(a)(a) An action required or permitted by this section to be taken by a governing body may be taken at any lawful meetings of the governing body. A simple majority of a quorum of the governing body is sufficient for the action under this section. The ayes and noes need not be taken with respect to the action and the action need not be officially read before adoption. Failure to publish an action under this section does not affect the validity of the action.
66.1103(10)(b)
(b) Upon the adoption of an initial resolution under this section, public notice of the adoption shall be given to the electors of the municipality or county before the issuance of the bonds described in the resolution, by publication as a class 1 notice, under
ch. 985. The notice need not set forth the full contents of the resolution, but shall state the maximum amount of the bonds; the name of the eligible participant; the purpose of the bonds; the net number of jobs which the project the municipality or county would finance with the bond issue is expected to eliminate, create or maintain on the project site and elsewhere in this state which is required to be shown by the proposed eligible participant on the form submitted under
sub. (4m) (a) 1.; and that the resolution was adopted under this section. A form of the public notice shall be attached to the initial resolution. Prior to adoption of the initial resolution, the open meeting notice given to members of the public under
s. 19.84 shall indicate that information with respect to the job impact of the project will be available at the time of consideration of the initial resolution. No other public notice of the authorization, issuance or sale of bonds under this section is required.
66.1103(10)(c)
(c) A copy of the initial resolution together with a statement indicating when the public notice required under
par. (b) was published shall be filed with the secretary of commerce within 20 days following publication of notice. Prior to the closing of the bond issue, the secretary may require additional information from the eligible participant or the municipality or county. After the closing of the bond issue, the secretary shall be notified of the closing date, any substantive changes made to documents previously filed with the secretary and the principal amount of the financing.
66.1103(10)(d)
(d) The governing body may issue bonds under this section without submitting the proposition to the electors of the municipality or county for approval unless within 30 days from the date of publication of notice of adoption of the initial resolution for the bonds, a petition conforming to the requirements of
s. 8.40, signed by not less than 5% of the registered electors of the municipality or county, or, if there is no registration of electors in the municipality or county, by 10% of the number of electors of the municipality or county voting for the office of governor at the last general election as determined under
s. 115.01 (13), is filed with the clerk of the municipality or county and as provided in
s. 8.37 requesting a referendum upon the question of the issuance of the bonds. If a petition is filed, the bonds may not be issued until approved by a majority of the electors of the municipality or county voting on the referendum at a general or special election.
66.1103(10)(e)
(e) Members of a governing body and officers and employees of a municipality or county are not personally liable on bonds and are not personally liable for any act or omission related to the authorization or issuance of bonds.
66.1103(10)(g)
(g) Bonds may not be issued unless prior to adoption of an initial resolution a document which provides a good faith estimate of attorney fees which will be paid from bond proceeds is filed with the clerk of the municipality or county and the department of commerce.
66.1103(10)(h)
(h) Bonds may not be issued unless prior to issuance all prerequisite conditions contained in the initial resolution are satisfied.
66.1103(11)(a)(a) With respect to the enforcement of any construction lien or other lien under
ch. 779 arising out of the construction of projects financed under this section, no deficiency judgment or judgment for costs may be entered against the municipality or county. Projects financed under this section are not public works, public improvements or public construction within the meaning of
ss. 59.52 (29),
60.47,
61.54,
62.15,
779.14,
779.15 and
779.155 and contracts for the construction of the projects are not public contracts within the meaning of
ss. 59.52 (29) and
66.0901 unless factors including municipal or county control over the costs, construction and operation of the project and the beneficial ownership of the project warrant the conclusion that they are public contracts.
66.1103 Note
NOTE: Par. (a) is shown as affected by 2 acts of the 2009 Wisconsin legislature and as merged by the legislative reference bureau under s. 13.92 (2) (i).
66.1103(11)(b)1.1. Except as provided by
subd. 2., construction work which is let by contract and which has an estimated cost exceeding $5,000 may be financed with bonds only if the contract is let to the lowest responsible bidder and proposals for the contract are advertised by publishing a class 2 notice under
ch. 985.
66.1103(11)(b)1m.
1m. The contract shall include a clause prohibiting discrimination in employment and subcontracting. No facility constructed with industrial revenue bonds shall be used for any purpose which includes any act of employment discrimination as specified under
s. 111.322.
66.1103(11)(b)2.
2. The governing body of a municipality or county may waive
subd. 1. with respect to a particular project by adopting an ordinance or resolution containing a statement of the reasons for the waiver and a description of the project for which waiver is made and publishing it as a class 1 notice under
ch. 985.
66.1103(12)
(12) Validation of certain bonds and proceedings. Notwithstanding this section or any other law:
66.1103(12)(a)
(a) In the absence of fraud, all bonds issued before July 25, 1980, purportedly under this section, and all proceedings taken purportedly under this section before that date for the authorization and issuance of those bonds or of bonds not yet issued, and the sale, execution and delivery of bonds issued before July 25, 1980, are validated, ratified, approved and confirmed, notwithstanding any lack of power, however patent, other than constitutional, of the issuing municipality or the governing body or municipal officer, to authorize and issue the bonds, or to sell, execute or deliver the bonds, and notwithstanding any defects or irregularities, however patent, other than constitutional, in the proceeding or in the sale, execution or delivery of bonds issued before July 25, 1980. All bonds issued before July 25, 1980, are binding, legal obligations in accordance with their terms.
66.1103(12)(b)
(b) Any proceedings for the authorization and issuance of bonds under this section in process prior to July 25, 1980 may be continued under this section as in effect prior to July 25, 1980 or under this section as in effect on and after July 25, 1980 if the governing body so elects and the initial resolution is published or republished after July 25, 1980. All such continued proceedings are validated, ratified, approved and confirmed; and all bonds issued as a result of such proceedings are binding, legal obligations in accordance with their terms.
66.1103(13)
(13) Cost of industrial project eligible for financing. 66.1103(13)(a)1.
1. "Placed into service" means having become a completed part of a facility which is in fact operational at the level of pollution control for which it was designed.
66.1103(13)(a)2.
2. "Substantially" refers to an expenditure of 15% or more of the financed cost of acquiring the property involved.
66.1103(13)(b)
(b) This section may be used to finance all or part of the cost, tangible or intangible, whenever incurred, of providing an industrial project under this section, whether or not the industrial project is in existence on the date of adoption of the initial resolution or of issuance of the bonds; whether new or previously used; whether or not previously owned by the eligible participant, the eligible participant's designee or a party affiliated with either; and notwithstanding that this section was not in effect or did not permit the financing on the date of adoption of the resolution or at the time ownership was acquired, except as follows:
66.1103(13)(b)1.
1. No part of the costs of constructing or acquiring personal property owned by the eligible participant, the eligible participant's designee or a party affiliated with either at any time before the date of adoption of the initial resolution may be so financed except costs for:
66.1103(13)(b)1.a.
a. Pollution control facilities which have not been placed into service on the date of adoption of the initial resolution; or
66.1103(13)(b)1.b.
b. Personal property which will either be substantially reconstructed, rehabilitated, rebuilt or repaired in connection with the financing or which represents less than 10% of the entire financing. Personal property is considered owned only after 50% of the acquisition cost of the personal property has been paid and the property has been delivered and installed.
66.1103(13)(b)2.
2. No part of the costs of acquiring real property or of acquiring or constructing improvements to the real property may be so financed except costs:
66.1103(13)(b)2.a.
a. For pollution control facilities which have not been placed into service on the date of adoption of the initial resolution;
66.1103(13)(b)2.b.
b. For real property which will be substantially improved or rehabilitated in connection with the project or which represents less than 25% of the entire financing;
66.1103(13)(b)2.c.
c. For acquiring improvements which will themselves be substantially improved or rehabilitated in connection with the project, which represent less than 25% of the entire financing, or the cost of which is less than 33% of the cost of the real property to which they are appurtenant which is also being acquired; or
66.1103(13)(b)2.d.
d. As are incurred after the date of adoption of the initial resolution for constructing improvements.
66.1103 History
History: 1973 c. 265;
1977 c. 28;
1979 c. 32 s.
92 (9);
1979 c. 34,
221,
350,
355;
1979 c. 361 s.
112;
1979 c. 362 ss.
3 to
12,
16,
17,
18;
1981 c. 314;
1983 a. 24,
27;
1983 a. 189 ss.
63 to
65,
329 (14);
1983 a. 207 s.
93 (8);
1983 a. 532 s.
36;
1985 a. 29,
222,
285;
1985 a. 297 s.
76;
1985 a. 299;
1987 a. 27;
1989 a. 192;
1991 a. 39,
316;
1993 a. 122,
124,
453;
1995 a. 27 ss.
9116 (5),
9130 (4);
1995 a. 201,
225,
227,
332;
1997 a. 3,
27,
35,
39;
1999 a. 9;
1999 a. 150 ss.
495 to
497; Stats. 1999 s. 66.1103;
1999 a. 182 s.
206;
2001 a. 30,
38,
103;
2009 a. 28,
112,
173,
401; s. 13.92 (2) (i).
66.1103 Annotation
Industrial development revenue bonding is not available for a project for a new automobile showroom, warehouse, and repair facility of a retail automobile dealership. 62 Atty. Gen. 141.
66.1103 Annotation
Typical turnkey projects financed by industrial development revenue bonds under s. 66.521 [now s. 66.1103] are not subject to s. 66.293 (3) [now s. 66.0903 (3)], concerning prevailing wage rates. 63 Atty. Gen. 145.
66.1103 Annotation
Sub. (11) does not require a municipality to obtain performance bonds for typical industrial revenue bond projects constructed by private industry. 64 Atty. Gen. 169.
66.1103 Annotation
A chiropractic clinic may qualify for financing under this section. 70 Atty. Gen. 133.
66.1103 Annotation
The financing of corporate expansion through industrial revenue bonds. Mulcahy, Guszkowski, 57 MLR 201.
66.1104
66.1104
Waiver of recovery zone facility bond limitation. 66.1104(2)(a)(a) The allocation of a recovery zone bond limitation received by a city or county shall be considered waived on March 1, 2010, except with regard to any amount about which the city or county sends written notice to the department of commerce before that date in which the city or county does one of the following:
66.1104(2)(a)1.
1. States that recovery zone bonds have been issued pursuant to the city's or county's limitation allocation.
66.1104(2)(a)2.
2. Identifies the amount of a proposed issuance of recovery zone bonds and the nongovernmental entity that will own or operate the project being financed, together with a letter addressed to the department of commerce from the prospective purchaser of the recovery zone bonds that states the expectation of the prospective purchaser that both an agreement will be executed before May 1, 2010, providing for the purchase of the recovery zone bonds, and that the recovery zone bonds will be issued before June 1, 2010.
66.1104(2)(b)
(b) The allocation of a recovery zone bond limitation received by a city or county shall be considered waived on May 1, 2010, except with regard to any amount about which the city or county sends written notice to the department of commerce before that date in which the city or county states one of the following:
66.1104(2)(b)1.
1. That recovery zone bonds have been issued pursuant to the city's or county's limitation allocation.
66.1104(2)(b)2.
2. That an agreement has been executed by the city, county, other local governmental unit, or authority that will issue the recovery zone bonds, and a bond purchaser, providing for the purchase of recovery zone bonds.
66.1104(2)(c)
(c) The allocation of a recovery zone bond limitation received by a city or county shall be considered waived on June 1, 2010, except with regard to any amount about which the city or county sends written notice to the department of commerce before that date in which the city or county states that recovery zone bonds have been issued pursuant to the city's or county's limitation allocation.
66.1104(2)(d)
(d) Any allocation of a recovery zone bond limitation that is considered waived under this subsection may be reallocated by the department of commerce under
s. 560.033.
66.1104(2)(e)
(e) If a city or county that is eligible to issue a Midwestern disaster area bond waives any portion of its allocation of a recovery zone bond limitation under this subsection before January 1, 2011, the department of commerce, under
s. 560.033 (4), shall increase that city's or county's allocation of Midwestern disaster area bond authority by the amount of the city's or county's waived recovery zone bond limitation allocation.
66.1104(2)(f)
(f) With regard to a letter, or a copy of a letter, addressed to the department of commerce from a prospective purchaser of a recovery zone bond, as described in
par. (a) 2., which is in the possession of the city or county, the name of any business or prospective bond purchaser named in the letter or copy of the letter is not subject to the right of inspection or copying under
s. 19.35 (1) before the first day of the 3rd month beginning after the letter or copy of the letter is received by the city or county.
66.1104(3)
(3) Reallocation. Any authority or local governmental unit may apply for a reallocation of the recovery zone bond limitation allocation in accordance with the system established by the department of commerce under
s. 560.033.
66.1104 History
History: 2009 a. 112.
66.1105(1)(1)
Short title. This section shall be known and may be cited as the "Tax Increment Law".
66.1105(2)
(2) Definitions. In this section, unless a different intent clearly appears from the context:
66.1105(2)(ab)
(ab) "Affordable housing" means housing that costs a household no more than 30 percent of the household's gross monthly income.
66.1105(2)(ae)1.a.
a. An area, including a slum area, in which the structures, buildings or improvements, which by reason of dilapidation, deterioration, age or obsolescence, inadequate provision for ventilation, light, air, sanitation, or open spaces, high density of population and overcrowding, or the existence of conditions which endanger life or property by fire and other causes, or any combination of these factors is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime, and is detrimental to the public health, safety, morals or welfare.
66.1105(2)(ae)1.b.
b. An area which is predominantly open and which consists primarily of an abandoned highway corridor, as defined in
s. 66.1333 (2m) (a), or that consists of land upon which buildings or structures have been demolished and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of the community.
66.1105(2)(ae)2.
2. "Blighted area" does not include predominantly open land area that has been developed only for agricultural purposes.
66.1105(2)(bq)
(bq) "Household" means an individual and his or her spouse and all minor dependents.
66.1105(2)(c)
(c) "Local legislative body" means the common council.
66.1105(2)(cm)
(cm) "Mixed-use development" means development that contains a combination of industrial, commercial, or residential uses, except that lands proposed for newly platted residential use, as shown in the project plan, may not exceed 35 percent, by area, of the real property within the district.
66.1105(2)(e)
(e) "Planning commission" means a plan commission created under
s. 62.23, a board of public land commissioners if the city has no plan commission, or a city plan committee of the local legislative body, if the city has neither a commission nor a board.
66.1105(2)(f)1.1. "Project costs" mean any expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by the city which are listed in a project plan as costs of public works or improvements within a tax incremental district or, to the extent provided in
subds. 1. k.,
1. m., and
1. n., without the district, plus any incidental costs, diminished by any income, special assessments, or other revenues, including user fees or charges, other than tax increments, received or reasonably expected to be received by the city in connection with the implementation of the plan. For any tax incremental district for which a project plan is approved on or after July 31, 1981, only a proportionate share of the costs permitted under this subdivision may be included as project costs to the extent that they benefit the tax incremental district. To the extent the costs benefit the municipality outside the tax incremental district, a proportionate share of the cost is not a project cost. "Project costs" include:
66.1105(2)(f)1.a.
a. Capital costs including, but not limited to, the actual costs of the construction of public works or improvements, new buildings, structures, and fixtures; the demolition, alteration, remodeling, repair or reconstruction of existing buildings, structures and fixtures other than the demolition of listed properties as defined in
s. 44.31 (4); the acquisition of equipment to service the district; the removal or containment of, or the restoration of soil or groundwater affected by, environmental pollution; and the clearing and grading of land.
66.1105(2)(f)1.b.
b. Financing costs, including, but not limited to, all interest paid to holders of evidences of indebtedness issued to pay for project costs and any premium paid over the principal amount of the obligations because of the redemption of the obligations prior to maturity.
66.1105(2)(f)1.c.
c. Real property assembly costs, meaning any deficit incurred resulting from the sale or lease as lessor by the city of real or personal property within a tax incremental district for consideration which is less than its cost to the city.
66.1105(2)(f)1.d.
d. Professional service costs, including, but not limited to, those costs incurred for architectural, planning, engineering, and legal advice and services.
66.1105(2)(f)1.e.
e. Imputed administrative costs, including, but not limited to, reasonable charges for the time spent by city employees in connection with the implementation of a project plan.
66.1105(2)(f)1.f.
f. Relocation costs, including, but not limited to, those relocation payments made following condemnation under
ss. 32.19 and
32.195.
66.1105(2)(f)1.g.
g. Organizational costs, including, but not limited to, the costs of conducting environmental impact and other studies and the costs of informing the public with respect to the creation of tax incremental districts and the implementation of project plans.
66.1105(2)(f)1.i.
i. Payments made, in the discretion of the local legislative body, which are found to be necessary or convenient to the creation of tax incremental districts or the implementation of project plans, including payments made to a town that relate to property taxes levied on territory to be included in a tax incremental district as described in
sub. (4) (gm) 1.
