Full Text
City of Middleton Comprehensive Plan 2016 Chapter 8 – Economic Development Page 1 The Economic and Community Development Element of the Comprehensive Plan is intended to guide decisions regarding private and public investments in community infrastructure and human resources, for the purpose of promoting the stabilization, retention and/or expansion of Middleton’s economic base. This chapter includes an assessment of types of new businesses and industries that are desired by the City, and an evaluation of our and weaknesses with respect to attracting and retaining businesses and industries. Economic Development Background The City’s business community is diverse and consistently strong. Middleton is headquarters to six of the thirty largest Dane County employers, including: the UW Medical Foundation, PPD, Electronic Theater Controls, Inc. (ETC), Spectrum Brands Holdings, Springs Window Fashions, and American Girl. In addition to many types of service industries and major manufacturers, the Middleton business community also features a strong cluster of high-tech businesses, including those specializing in agribusiness, pharmaceutical, biotech, health/medical/wellness, and research & development. With a superb collaborative partnership between the City, the Middleton-Cross Plains Area School District, and the Middleton Chamber of Commerce, the City’s tax base has grown to $2.9 billion in 2015. Residential property comprises 57% of the 2015 full valuation, followed by commercial property at 35%. The top ten taxpayers comprise 12% of the 2015 full valuation. Through continued investments in the City’s infrastructure as well as natural and cultural amenities, the City of Middleton aspires to maintain its regional status as a premier locale for research and sustainable development. Middleton's Top Ten Largest Employers in 2016 Company Full-Time Employees Part-Time Employees 1 PPD 747 3 2 ETC (Electronic Theatre Controls Inc.) 690 3 UW Medical Foundation 650 4 Spectrum Brands Holdings 633 3 5 Springs Window Fashions 550 6 American Girl 498 94 7 Humana Inc. 367 8 Veterans Health Administration 350 9 West Corporation 340 10 Fiskars Brands Inc. 276 Community Assets and Weaknesses Assets: Proximity to Wisconsin state government and major education facilities, including the University of Wisconsin, as well as Madison’s cultural amenities ---PAGE BREAK--- City of Middleton Comprehensive Plan 2016 Chapter 8 – Economic Development Page 2 Well-developed transportation infrastructure featuring superb access to regional highway system (USH 12 and 14), rail, public transit, and the second largest general aviation facility in Dane County Dynamic mix of residential, commercial, office and high tech business development Adequate inventory of fully- improved business development sites Highly educated and trained labor force Desirable neighborhoods and excellent school system Outstanding collaboration between the Middleton Chamber of Commerce, City Government and the Middleton-Cross Plains Area School District Comprehensive Urban Greenway system Redeveloping and attractive Downtown Efficient and effective public services Commitment to sustainable development Weaknesses: Relative shortage of land available in the long-term for large-scale business development Increasing development related costs Relatively expensive land costs Lack of affordable housing Downtown has limited growth capacity Existing Programs and Initiatives The City of Middleton has utilized various programs and strategies to facilitate economic development activities during the past two decades, and the City has been successful in growing its tax and employment base. This section summarizes the aforementioned initiatives. Electronic Theater Controls Headquarters Traditions Children’s Market in Downtown Middleton ---PAGE BREAK--- City of Middleton Comprehensive Plan 2016 Chapter 8 – Economic Development Page 3 Tax Incremental Financing (TIF) Tax Increment Financing (TIF) is a public financing method that is used as a subsidy for redevelopment, infrastructure, and other community-improvement projects. The City of Middleton has two active TIF districts, TIF District #3 and TIF District The City of Middleton created TIF District #3 in 1993. In the original 1993 TIF District 3 Project Plan, the base value of the TIF District was listed as $34.1 million. At the time, the projected expenses were $15.8 million, with projected new development of $44.9 million. To date, the City has spent approximately $65 million, and created over $645 million in new value. TIF District #3 has had 9 amendments to the original Project Plan, and has subtracted $340 million in value to return to the overlying taxing jurisdictions. The City of Middleton created TIF District #5 in 2009. In the Project Plan, the estimate for projected expenses for the life of TID #5 was listed at $104 million. The estimated value to be created within TID #5 was $678 million, on a base value of $89 million. The City has successfully used tax incremental financing (TIF) to revitalize and invigorate its business centers. In 2015, TIF development in Middleton comprised about 16% ($450 million) of Middleton's approximately $2.85 billion tax base. TIF has provided a valuable tool for redevelopment of the City’s Downtown and business districts, promotion of business growth (e.g. Spectrum Brands, Fiskars, Electronic Theatre Controls, Natus Neurology, WTS Paradigm, Automation Components, Inc.), connectivity to the Highway 12 Beltline with the Parmenter Street corridor and in the development of tax base and higher densities of development in Middleton. Community Development Authority The Middleton Community Development Authority (CDA) was formed in 1997 for the purpose of blight elimination, slum clearance, urban renewal, community development programs and projects, and housing projects in the City. The seven-member CDA has provided loans for downtown development projects including façade renovation loans, issued bonds for financing Map of TIF District #3 and TIF District #5 ---PAGE BREAK--- City of Middleton Comprehensive Plan 2016 Chapter 8 – Economic Development Page 4 infrastructure in redevelopment districts, and has an established Downtown Middleton Marketing/Advertising Program. Middleton Area Development Corporation Business Loan Program In August 2003, the City of Middleton entered into an agreement with the Middleton Area Development Corporation (MADC) for the purpose of implementing the economic development plans of the City. The MADC is a Wisconsin non-stock, not-for-profit corporation created and as an independent entity to partner with the City in providing economic development loans to businesses who will spur economic development in the City of Middleton through an increased tax base and heightened employment opportunities. The City capitalized the proceeds of land sales in the TIF district to establish a $2 million pool of funds (assets of nearly $4 million in 2015) for MADC to lend to qualified businesses applying for economic development assistance. The shared objectives of the City and MADC are to retain and expand existing businesses as well as attract new enterprises to the Middleton area. Applications to the MADC are generally considered on a first-come, first-serve basis. The MADC reviews and recommends loan approvals by weighing the projects and considering which projects would provide premier economic development benefits to the City. The applicant’s proposed industry or business project must be consistent with both the Economic Development Program goals and objectives and the City’s adopted Comprehensive Plan and other plans and goals relating to City’s development and growth. The MADC uses its funds to assist businesses in their physical relocation to Middleton; to promote investment and renovation that may be necessary to allow for production and service improvements of industries and businesses; and to facilitate infrastructure necessary for the construction of such facilities and the expansion of existing facilities. Workforce Housing Program In 2003, the City of Middleton created the Workforce Housing Task Force (WHTF) to address the need for more affordable housing in the community and ensure a healthy future for our community. Housing affordable to the workforce is essential to economic development and the health of the business community. Housing closer to jobs helps reduce travel time and expense, fuel consumption and air pollution, and the need for expensive new streets and roads. People in the workforce who provide services that are essential to the quality of life in our community – school teachers, firefighters, police officers and other public employees, as well as workers in the private sector – should be able to live in the community they serve. From 2005 to 2010, the Workforce Housing Program provided funding for 18 down payment loans for households with incomes between 40-80% of the Dane County median income. However, in 2010 due to a lack of funding and concerns about the program, the Middleton Community Development Authority (CDA) decided to discontinue the program. To date 12 loans are outstanding and will start to come due in 2020. ---PAGE BREAK--- City of Middleton Comprehensive Plan 2016 Chapter 8 – Economic Development Page 5 The WHTF has drafted and received approval for an exemption of impact fees for low-cost housing. In addition, the WHTF has worked with developers and supported projects that include affordable housing, such as Whispering Pines Condominiums, Parmenter Circle Phase I, Heritage Middleton Senior Campus, and Meadow Ridge Apartments. The City initiated the Amherst Road Residential Redevelopment project in 2010, which supported the redevelopment of 10 blighted duplex units into 10 single-family homes on Amherst Road. The homes were sold at an affordable price and one lot was donated to Habitat for Humanity. Workforce housing continues to be an important need in Middleton. In 2015, the City adopted a Workforce Housing Strategy which includes strategies and policies to increase the supply of affordable housing in Middleton, including a new policy which states that all residential projects receiving a tax increment financing (TIF) subsidy have a percentage of affordable units. Since the adoption of the strategy, the City has worked with two developments (Market West Apartments and Cardinal Row Apartments) to incorporate workforce housing units into these developments. The Housing Element (Chapter 4) contains additional information, goals, objectives and policies regarding housing in Middleton. Middleton Tourism Commission The Middleton Tourism Commission was formed in 1997. The mission of the Middleton Tourism Commission is to increase tourism to the community. Through a multifaceted strategy of marketing, public relations, sales and grant distribution, the Commission attracts travelers, generates overnight guest stays, and increases visitor spending. In addition to promoting Middleton as a leisure destination, the six- member Tourism Commission works to bring motorcoach tours, meetings and conventions to the community. The Commission is funded entirely through revenue raised through a hotel room tax and it works cooperatively with the visitor and convention industry on a range of related issues. The Tourism Commission staff publish an annual visitor’s guide, operate the Tourism web site (geared specifically to the needs of a visitor to Middleton), manage the City’s Visitors Center, assist groups and individuals prior to and during their stay in Middleton, operate a mobile Visitors Center called the “Know and Go”, provide a free Trolley that serves the central business area from March through December and assist with streetscape improvement and beautification efforts. The Middleton Trolley ---PAGE BREAK--- City of Middleton Comprehensive Plan 2016 Chapter 8 – Economic Development Page 6 Regional Economic Development Efforts The City has been an active participant in regional economic development efforts. These include the following: 1. Partnership with the Wisconsin Economic Development Corporation (WEDC), which works collaboratively to help businesses, communities, and individuals take advantage of new opportunities for growth and job creation through innovative market-driven programs. 2. Active membership in the Madison Regional Economic Partnership (MadREP—formerly Thrive) which is a collaboration of the municipalities and 8 counties in the South Central Madison area. 3. A close working relationship with the Middleton Chamber of Commerce to foster proactive economic development in the Chamber’s membership area which is more expansive than the City of Middleton. Goals, Objectives & Policies The following goals, objectives and policies are based on approved plans in both Tax Increment Districts #3 and as well as other City of Middleton plans. Goal: Maintain a balanced community with a sustainable mixture of residential, commercial, office, and industrial development. Objectives and Policies 1. Facilitate an economic development strategy, informed by data on key growth and base sectors, which will enhance Middleton’s economic vitality and use and preserve existing assets effectively. Work with existing companies and sector experts to enhance growth strategies for each sector. 2. Encourage the location of industries within planned business parks. 3. Encourage the location of “sustainable businesses” which have minimal negative impacts on the global and local environment, community, and economy. 4. Offer a variety of types of business and commercial park settings. 5. Encourage the development of smaller neighborhood-oriented businesses within walking distance of surrounding residences. Fiskars North American Headquarters in Middleton ---PAGE BREAK--- City of Middleton Comprehensive Plan 2016 Chapter 8 – Economic Development Page 7 6. Promote strong “green building” and sustainability standards to encourage residential, office, commercial and industrial developers to implement the most recent innovations in building design, renewable energy, stormwater management, and landscaping to protect the environment. 7. Implement appropriate land use tools along major transportation corridors, interchanges, access points, and arterial entrances, in order to control commercial development at these key locations. 8. Discourage “big box” retailers that would have the effect of undermining existing business districts. This policy should not eliminate the potential for “big box” retailers, but would rather control their location and character. 9. Promote the positive development of underutilized and environmentally-contaminated sites. Goal: Protect, leverage and accelerate the growth of Middleton’s strongest economic growth opportunities while actively preserving and enhancing the quality of life of all citizens. Objectives and Policies 1. Promote the City of Middleton as a friendly place to do business with hospitable City staff and responsive regulatory processes. 2. Enhance and continue the redevelopment of the downtown business district through increased and sustainable density, design guidelines, preservation of historic structures, streetscape enhancements, and programs that promote locally-owned specialty businesses and that maintain the “small town” atmosphere of the district. 3. Extend Middleton’s Downtown District northward along Parmenter Street and southward along Terrace Avenue, to enhance the City core. 4. Utilize the Downtown Traffic Circulation and Parking Studies to determine appropriate interventions to ensure adequate pedestrian, bicycle and vehicle circulation and parking supply that contributes positively to the business district’s atmosphere and business climate. 5. Further the visual appeal of the public art, gateway and wayfinding signage system. 6. Enhance the visual attractiveness of commercial areas and transportation corridors. ---PAGE BREAK--- City of Middleton Comprehensive Plan 2016 Chapter 8 – Economic Development Page 8 7. Protect and enhance the Urban Greenway, and continue to support the role the Urban Greenway plays as a driver of economic development. 8. Reserve areas for future business park development as the City grows northward. Goal: Foster entrepreneurship, business retention and growth of Middleton businesses through targeted City initiatives, programs and business development support. 1. Facilitate TIF assistance to support the redevelopment of underdeveloped, blighted areas or environmental contaminated areas. 2. Use the Tax Increment Financing (TIF) policy to guide TIF assistance allocation decisions. 3. Use the Workforce Housing Strategy to encourage, facilitate, and support affordable housing options for families earning up to 80% of the area median income (AMI). 4. Work with the Middleton Area Development Corporation to provide timely financial support to attract new businesses to Middleton and enable effective expansion of existing Middleton businesses. Map of Urban Greenway Economic Development Opportunities, from the TID #3 Middleton Urban Greenway Area Study ---PAGE BREAK--- City of Middleton Comprehensive Plan 2016 Chapter 8 – Economic Development Page 9 5. Work through the CDA to foster improved Downtown development opportunities and to link workforce housing assistance in residential areas adjacent to business development areas. 6. Support the hotel room tax to fund activities for promoting Middleton as a visitor destination and conference location. 7. Engage the Chamber of Commerce as a means to maintain good ties and working relationships with Middleton businesses. 8. Collaborate with the Madison Region Economic Partnership to leverage and accelerate regional economic growth in a sustainable and healthy manner. 9. Identify economic development programs at the county, regional, and state level to assist with the economic development goals, objectives and policies. 10. Seek out economic assistance grants and investigate other financial incentives and grants for the utilization of environmentally contaminated sites. Goal: Expand Housing Opportunities Sustainably in Middleton 1. Encourage the development of housing: a. To meet the needs of all the people who work in Middleton, so that they can have good housing choices closer to their jobs. b. For people who would like to join the workforce, so that they have a stable, affordable base on which to build their working lives. c. For older adults, many of whom are still in the workforce and who have built the community we all enjoy. Housing options for older adults who do not want to stay in larger homes may better meet their needs, and can make more affordable housing choices available to younger families. 2. Assure that new growth is balanced, and provides for the sustainable development of both rental and ownership housing for a range of incomes, for people with different life situations and cultural and ethnic backgrounds, for people with disabilities, for single people with very low incomes, and for the homeless. 3. Facilitate opportunities for renters to become homeowners if that choice best meets their housing needs. Goal: Use Partnerships Creatively to Meet Housing Needs 1. Seek ways in which the Tax Increment Districts and the Community Development Authority (CDA) can invest available funds in affordable multi-family and single family housing development, with the rate of return based on how well a project meets public policy objectives. Middleton Chamber of Commerce ---PAGE BREAK--- City of Middleton Comprehensive Plan 2016 Chapter 8 – Economic Development Page 10 2. Encourage the CDA to explore the use of its funds to leverage CDA-issued bonds, the interest on which is exempt from both state and federal tax, to maximize the impact of limited public financial resources. 3. Work with the County, other communities, the state government, employers and community businesses, for-profit developers and the nonprofit development sector to achieve housing development objectives. 4. Promote the use of the Dane County Housing Authority’s programs and services, and collaborate with the DCHA to help achieve mutual goals and objectives.