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.
66.1105(2)(f)1.j.
j. That portion of costs related to the construction or alteration of sewerage treatment plants, water treatment plants or other environmental protection devices, storm or sanitary sewer lines, water lines, or amenities on streets or the rebuilding or expansion of streets the construction, alteration, rebuilding or expansion of which is necessitated by the project plan for a district and is within the district.
66.1105(2)(f)1.k.
k. That portion of costs related to the construction or alteration of sewerage treatment plants, water treatment plants or other environmental protection devices, storm or sanitary sewer lines, water lines, or amenities on streets outside the district if the construction, alteration, rebuilding or expansion is necessitated by the project plan for a district, and if at the time the construction, alteration, rebuilding or expansion begins there are improvements of the kinds named in this subdivision on the land outside the district in respect to which the costs are to be incurred.
66.1105(2)(f)1.L.
L. Costs for the removal, or containment, of lead contamination in buildings or infrastructure if the city declares that such lead contamination is a public health concern.
66.1105(2)(f)1.m.
m. With regard to a tax incremental district that is located in a city to which
sub. (6) (d) applies and about which a finding has been made that not less than 50 percent, by area, of the real property within the district is a blighted area, project costs incurred for territory that is located within a one-half mile radius of the district's boundaries.
66.1105(2)(f)1.n.
n. With regard to a tax incremental district that is located anywhere other than a city to which
sub. (6) (d) applies, and subject to
sub. (4m) (d), project costs incurred for territory that is located within a one-half mile radius of the district's boundaries and within the city that created the district.
66.1105(2)(f)2.
2. Notwithstanding
subd. 1., none of the following may be included as project costs for any tax incremental district for which a project plan is approved on or after July 31, 1981:
66.1105(2)(f)2.a.
a. The cost of constructing or expanding administrative buildings, police and fire buildings, libraries, community and recreational buildings and school buildings, unless the administrative buildings, police and fire buildings, libraries and community and recreational buildings were damaged or destroyed before January 1, 1997, by a natural disaster.
66.1105(2)(f)2.b.
b. The cost of constructing or expanding any facility, if the city generally finances similar facilities only with utility user fees.
66.1105(2)(f)2.c.
c. General government operating expenses, unrelated to the planning or development of a tax incremental district.
66.1105(2)(f)2.d.
d. Cash grants made by the city to owners, lessees, or developers of land that is located within the tax incremental district unless the grant recipient has signed a development agreement with the city, a copy of which shall be sent to the appropriate joint review board or, if that joint review board has been dissolved, retained by the city in the official records for that tax incremental district.
66.1105(2)(f)3.
3. Notwithstanding
subd. 1., project costs may include any expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by the city for newly platted residential development only for any tax incremental district for which a project plan is approved before September 30, 1995, or for a mixed-use development tax incremental district to which one of the following applies:
66.1105(2)(f)3.a.
a. The density of the residential housing is at least 3 units per acre.
66.1105(2)(g)
(g) "Project plan" means the properly approved plan for the development or redevelopment of a tax incremental district, including all properly approved amendments thereto.
66.1105(2)(i)
(i) "Tax increment" means that amount obtained by multiplying the total county, city, school and other local general property taxes levied on all taxable property within a tax incremental district in a year by a fraction having as a numerator the value increment for that year in the district and as a denominator that year's equalized value of all taxable property in the district. In any year, a tax increment is "positive" if the value increment is positive; it is "negative" if the value increment is negative.
66.1105(2)(j)
(j) "Tax incremental base" means the aggregate value, as equalized by the department of revenue, of all taxable property located within a tax incremental district on the date as of which the district is created, determined as provided in
sub. (5) (b). The base of districts created before October 1, 1980, does not include the value of property exempted under
s. 70.111 (17).
