Fiscal Note
A staff analysis of the potential tax increment associated with this proposed TIF loan has not been completed. No increment has yet been accumulated in this newly established TIF district and funding authorization for such loans was not included in the current year capital budget. Future tax increment anticipated from initial base growth in this large district has already been committed through an earlier budget amendment to fund the City's contribution towards the Bio-Link Incubator project, and it is not known when sufficient additional increment would be generated by the proposed Danisco project to repay the $300,000 forgivable loan authorized in this resolution.
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SUBSTITUTE - Amending the 2009 Capital Budget to authorize a TIF Loan in the amount of $300,000 to Danisco USA, Inc. in Tax Incremental District (TID) No. 39 (Stoughton Road) and authorizing the Mayor and City Clerk to execute a development agreement to fund the TIF Loan in the amount of $300,000 to Danisco USA, Inc. to assist in the expansion of its existing facilities in Tax Incremental District No. 39 (Stoughton Road). BY TITLE ONLY.
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On June 19, 2009 TIF staff received a TIF Application (dated May 29, 2009) signed by the Borrower’s finance director. The Borrower pledged $12.7 million of internal investment from its parent company, requesting $300,000 in TIF assistance. City of Madison TIF Policy requires that all projects requesting TIF assistance demonstrate the “but for” through an objective gap analysis. TIF staff could not determine that a statutory “but for” exists based upon the documents provided by Borrower with the TIF application. The Borrower recently purchased a plant in Rochester, NY. Staff has been informed that this expansion could occur at either the Madison or Rochester plants. The Borrower requests that the City consider providing $300,000 of TIF assistance using “competitive factors” rather financial gap analysis.
WHEREAS on September 3, 2008 the Com...
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