From the Law Office of Dennis M. Grzezinski

Dear Mayor Olson, President Lawrence and Stoughton Common Council Members: 

Ms. Olson and Mr. Lawrence please review the below email with the city attorney.

On behalf of Stoughton Forward, we urge the city to follow the pertinent portions of the WI TIF law if the city chooses to significantly modify the present Developer's Agreement with Kettle Park West LLC.

If you are unsure of the proper actions to take, it would be best to table tonight's agenda items that relate to the Kettle Park West Developer's Agreement until the city has had these matters reviewed by appropriate TIF experts for legality.

Thank you!

Buzz Davis, Treas., Stoughton Forward

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From: dennisglaw@gmail.com
To: DBuzzdavis@aol.com
Sent: 6/23/2015 3:46:03 P.M. Central Daylight Time
Subj: Re: Proposed changes to the Development Agreement for the Kettle Park West TIF District Project

to:  Buzz Davis, Stoughton Forward.

Mr. Davis:  You have requested me to review proposed actions by the Common Council of the City of Stoughton relating to the Kettle Park West development in light of the requirements of the Wisconsin statutes regarding TIF districts, Section 66.1105, Wis. Stats.  

Section 66.1105(4)(f) governs the creation of Tax incremental districts and project plans.  Essential elements of the project plan, as itemized in Sections 66.1105(4)(e) and (f), include a detailed list of estimated project costs; identifying whether cash grants may be made by the city to owners, lessees, or developers of land within the TIF district; and the time when the costs or monetary obligations in the plan are to be incurred.  The plan must be complete and available to the public when the official notice of the public hearing on the proposed project plan or TIF district is published.

Section 66.1105(4)(h) authorizes the planning commission to adopt an amendment to a project plan, subject to approval by the common council, and to review by the joint review board.  The statute further provides:  "Adoption of an amendment to a project plan shall be preceded by a public hearing held by the plan commission at which interested parties shall be afforded a reasonable opportunity to express their views on the amendment."  Publication of an official notice of the hearing is required.

City officials have proposed and/or approved amendments to the Development Agreement regarding the Kettle Park West TIF development which significantly increase the estimated cost of the improvements to be financed by the City, which have added Wal-Mart as a party to which cash grants of approximately $5 million may be made by the City, and which delay the time period in which the costs or monetary obligations of the City are to be incurred.  Approval of such changes to the Development Agreement presuppose making similar changes to the project plan and to the TIF district itself.  However, there has been no notice published for a public hearing before the planning commission regarding such changes to the plan or district, no action on such amendments by the planning commission, the common council, or the joint review board.   

Under these circumstances, contractually committing the city to the developer and Wal-Mart as proposed seems to put the cart before the horse.  It in effect, obligates the planning commission and the common council, in advance of the legally required public hearing on project plan and TIF district amendments, to officially approve the various proposed amendments.  

This completely skirts the public notice and public meeting requirements of Sections 66.1105(f) and (h), and could likely subject the City's actions in approving such changes to serious legal challenge and uncertainty as to their validity.  The law is clear regarding how a city may make significant changes relating to TIF projects and TIF districts, and Stoughton Forward should urge members of the Common Council to follow the procedures set forth in the TIF law if they believe that amendments are needed.

Very truly yours,

/s/Dennis

Dennis M Grzezinski

Law Office of Dennis M Grzezinski1845 N. Farwell Avenue, Suite 202

Milwaukee, WI 53202

Phone: (414) 455-0739 MOBILE 414 530-9200

Fax: (414) 455-0744dennisglaw@gmail.com