Fiscal Note
Adoption of this agreement would result in future revenue sharing payments from the Town of Blooming Grove to the City of Madison in exchange for the extension of Madison Water Utility services into the Town. The amount and timing of these future payments is dependent on future Blooming Grove tax rates and the value and timing of development on the parcel to be served, so the exact amount of future payments is not known. However, Madison expects to receive approximately $1,900 per year during the 5 year period from 2010 through 2014. When received, this revenue would be deposited in the General Fund and would serve to reduce future year property tax levies.
Title
Authorizing execution of a Municipal Revenue Sharing Agreement between the Town of Blooming Grove and the City of Madison.
Body
WHEREAS, pursuant to Wis. Stat. § 66.0307, Blooming Grove and Madison entered into a Cooperative Plan related to boundary lines and other municipal issues between themselves, which Plan was approved on October 3, 2006, by the State of Wisconsin Department of Administration; and
WHEREAS, Blooming Grove and Madison agreed to cooperate for more efficient delivery of municipal services within the Cooperative Plan Area, and agreed to pursue further cooperative agreements that would qualify each of them for additional shared revenue; and
WHEREAS, the Cooperative Plan created several "Protected Areas" of lands in Blooming Grove which, although nearly surrounded by Madison at the time of Cooperative Plan negotiations, were protected from early attachment to Madison for political and economic reasons; and
WHEREAS, PDQ Food Stores, Inc. ("PDQ") owns property in Blooming Grove (the "PDQ Property"), located at 4108 Milwaukee Street, and more particularly described as Lot 1 of Certified Survey Map No. 11449, Town of Blooming Grove, Dane County, Wisconsin; and
WHEREAS, Blooming Grove does not have municipal water utility services available to the Protected Area 6D which includes the PDQ Property; and
WHEREAS, in order to facilitate PDQ's development or redevelopment of the PDQ Property without drilling a private well, Blooming Grove and Madison wish to have Madison provide municipal water utility service to the PDQ Property; and
WHEREAS, as an alternative to further common boundary alterations related to the PDQ Property, Madison wishes to be compensated by Blooming Grove for providing the necessary water utility infrastructure and service to permit full development of the PDQ Property which is the subject of the proposed intergovernmental revenue sharing agreement that is authorized pursuant to Wis. Stat. §§ 66.0301 and 66.0305; and
WHEREAS, it is in the best interests of Blooming Grove and Madison to enter into a Revenue Sharing Agreement with terms and conditions as follows:
1. Revenue Sharing Formula. Blooming Grove and Madison agree to share property tax revenues on the PDQ Property in the following manner:
(a) Blooming Grove agrees to make annual revenue sharing payments to Madison of thirty percent (30%) of the Blooming Grove local share of general property taxes related only to the improvements of the PDQ Property as a gas station, convenience store, and car wash facility (the "PDF Improvements").
(b) Such annual revenue sharing payments shall commence in the first full tax year following the completion of the said PDQ Improvements and the issuance of an occupancy permit for the PDQ Improvements on the PDQ Property and continue for five (5) years. A total of five revenue sharing payments shall be made. Blooming Grove expects the PDQ Improvements to be completed and occupied sometime during 2008.
(c) Payments shall be made to Madison on the first day of August in each of the five years payments are to be made under this Agreement.
2. Term. The term of this Agreement shall be for ten (10) years (the "Term"), commencing as of the effective date of this Agreement. Each year of the Term, as measured from the effective date of this Agreement, is a "Contract Year." On the passing of the effective date of this Agreement in the tenth Contract year, this Agreement, except Section 3 of this Agreement, shall automatically terminate. Section 3 of this Agreement shall survive the expiration or termination of this Agreement.
3. Water Supply. Madison agrees to supply the PDQ Property, in perpetuity, with public water utility service. The PDQ Property shall be treated as a customer of Madison Water Utility, subject to all applicable Madison Water Utility ordinances and rules, including, but not limited to, prior to connection payment of $11,217.29 of outstanding costs for water main installation, as well as actual costs of connection. To the extent authorized by applicable laws, Blooming Grove shall levy as a tax upon the PDQ Property parcel(s) for which Madison Water Utility service was given any delinquent Madison Water Utility bills and penalty for collection pursuant to Sec. 66.0809, Wis. Stats., and shall pay all such revenues collected directly to the Madison Water Utility. The Madison Water Utility shall have no obligation to serve or supply other Blooming Grove lands in the Protected Area other than the PDQ Property with public water utility service.
4. No Third Party Beneficiary. This Agreement is intended to be solely between Blooming Grove and Madison. Nothing in this Agreement accords any third party any legal or equitable rights whatsoever which may be enforced by any nonparty to this Agreement.
5. Amendment. This Agreement may be amended only by the written agreement of both of the parties hereto.
6. Enforcement. This Agreement shall be governed by the laws of the State of Wisconsin. Any act by either party in violation of this Agreement shall be remedied by the courts of the State of Wisconsin. This Agreement is intended to provide both parties with the right and standing to seek any available legal or equitable remedy to enforce or seek damages for the breach of this Agreement.
7. Binding Effect. The parties have entered into this Agreement under the authority of Wis. Stat. §§ 66.0301 and 66.0305. The parties agree that this Agreement shall be binding upon all parties, as well as their respective heirs, successors and assigns.
8. Entire Agreement. This Agreement represents the entire integrated agreement between the parties with regards to revenue sharing for the PDQ Property and supersedes all prior negotiations, representations or agreements, either written or oral dealing with revenue sharing related to the PDQ Property.
9. Severability. In the event that any portion of this Agreement is invalidated or held unenforceable by a court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable. However, in the event that Section 3 of this Agreement is invalidated or held unenforceable by a court of competent jurisdiction, this Agreement shall automatically terminate and be of no further force or effect.
10. Non-discrimination. In the performance of the obligations under this Agreement, the parties agree not to discriminate against any employee or applicant because of race, religion, marital status, age, color, sex, handicap, national origin, ancestry, income level, source of income, arrest record, conviction record, less than honorable discharge, physical appearance, sexual orientation, political beliefs, or student status. The parties further agree not to discriminate against any subcontractor or person who offers to subcontract under this Agreement because of race, religion, color, age, disability, sex, or national origin.