PC Agenda Packet 9-28-26 - Special Meeting

Village of Hartland 210 Cottonwood Avenue Hartland WI 53029 PH: 262-367-2714 FAX: 262-367-2430 www.villageofhartland.wi.gov PLAN COMMISSION AGENDA TAX INCREMENTAL DISTRICT NO. 8 CREATION SEPTEMBER 28, 2026 at 6:00 PM Roll Call 1. Public Hearing regarding the proposed creation of Tax Incremental Finance District No. 8, the proposed boundaries of the District, and the proposed Project Plan for the District. 2. Consideration and possible action on a “Resolution Establishing the Boundaries of and Approving the Project Plan for Tax Incremental Finance District No. 8.” 3. Adjourn Ryan Bailey, Village Manager A complete packet of meeting materials is normally available by 5:00pm on the Friday before the meeting on the Village website: www.villageofhartland.wi.gov (Government/Agendas and Minutes). Notice: Please note that upon reasonable notice, efforts will be made to accommodate the needs of disabled individuals through appropriate aids and services. For additional information or to request this service, contact Sandee Policello, Village Clerk, at 262-367-2714. The Municipal Building is handicap accessible. To participate via Zoom: https://us02web.zoom.us/j/89850624053?pwd=VwluaCmybfiJ1kwVkhOPQg68Mzi3ie.1 Meeting ID: 898 5062 4053 Passcode: 962014 September 28 , 2026 DRAFT PROJECT PLAN Village of Hartland, Wisconsin Tax Incremental Finance District No. 8 Prepared by: Ehlers N19W24400 Riverwood Drive, Suite 100 Waukesha, WI 53188 BUILDING COMMUNITIES. IT’S WHAT WE DO. Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 2 KEY DATES Organizational Joint Review Board Meeting Held: September 28, 2026 Public Hearing Held: September 28, 2026 Consideration by Plan Commission: September 28, 2026 Consideration by Village Board: October 12, 2026 Consideration by the Joint Review Board: TBD TABLE OF CONTENTS Executive Summary ................................ ................................ ................................ ................................ ..... 3 Preliminary Map of Proposed District Boundary ................................ ................................ ............ 6 Map Showing Existing Uses and Conditions ................................ ................................ .................... 8 Preliminary Parcel List and Analysis ................................ ................................ ................................ ... 10 Equalized Value Test ................................ ................................ ................................ ................................ .. 11 Statement Listing the Kind, Number and Location of All Proposed Public Works or Improvements Within the District ................................ ................................ ................................ ....... 12 Map Showing Proposed Improvements and Uses ................................ ................................ ........ 18 Detailed List of Estimated Project Costs ................................ ................................ .......................... 21 Economic Feasibility Study, Description of the Methods of Financing Estimated Project Costs and the Time When Related Costs or Monetary Obligations are to be Incurred ................................ ................................ ................................ ................................ .......................... 22 Annexed Property ................................ ................................ ................................ ................................ ..... 26 Estimate of Property to Be Devoted to Retail Business ................................ ........................... 26 Proposed Changes of Zoning Ordinances, Master Plan, Map, Building Codes and Village Ordinances ................................ ................................ ................................ ................................ .... 26 Statement of the Proposed Method for the Relocation of any Persons to be Displaced ................................ ................................ ................................ ................................ ................................ ........... 27 How Creation of the Tax Incremental District Promotes the Orderly Development of the Village ................................ ................................ ................................ ................................ ..................... 27 List of Estimated Non - Project Costs ................................ ................................ ................................ . 27 Legal Opinion Advising Whether the Plan is Complete and Complies with Wis. Stat. § 66.1105(4)(f) ................................ ................................ ................................ ................................ ................. 28 Calculation of the Share of Projected Tax Increments Estimated to be Paid by the Owners of Property in the Overlying Taxing Jurisdictions ................................ ...................... 30 Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 3 SECTION 1: Executive Summary DESCRIPTION OF DISTRICT Tax Incremental District (“TID”) No. 8 (“District”) is a proposed In Need of Rehabilitation or Conservation District comprising approximately 0.55 acres located at 101 E. Capitol Drive and 107 E. Capitol Drive . The District will be created to pay a developer incentive for extraordinary costs needed to facilitate construction of a 34,200 - square - foot m ixed - use building and ongoing planning/administrative costs of the District . The intended use is a 36 room boutique hotel, along with a rooftop lounge that will be open to the publ ic (“Project”) to be developed by Luther Group (“Developer”). AUTHORITY The Village is creating the District under the provisions of Wis. Stat. § 66.1105 . ESTIMATED TOTAL PROJECT COST EXPENDITURES The Village anticipates making total expenditures of approximately $ 3,8 1 8,245 (“Project Costs”) to undertake the projects listed in this Project Plan (“Plan”). INCREMENTAL VALUATION The Village projects that new land and improvements value of approximately $ 17,500,000 will result from the Project. Creation of this additional value will be made possible by the Project Costs made within the District. A table detailing assumptions as to the development timing and associated values is included in the Economic Feasibility S tudy located within this Plan. EXPECTED TERMINATION OF DISTRICT Based on the Economic Feasibility Study located within Section 9 of this Plan, the Village anticipates that the District will generate sufficient tax increment to pay all Project Costs within 20 of its allowable 27 years. SUMMARY OF FINDINGS As required by Wis. Stat. § 66.1105, and as documented in this Plan and the exhibits contained and referenced herein, the following findings are made: 1. That “but for” the creation of this District, the development projected to occur as detailed in this Plan: 1) would not occur; or 2) would not occur in the manner, at the values, or within the timeframe desired by the Village. In reaching this determinatio n, the Village has considered: Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 4 The Developer’s representation that the Project is not economically viable without public participation based on extraordinary costs associated with demolition of structures and redevelopment of existing sites. Redevelopment projects often involve extraordinary costs beyond those typically associated with greenfield or otherwise unconstrained development. These costs are tied to site - specific challenges, such as environmental conditions and soil limitations needed to make the site shovel - ready and support private investment. Extraordinary costs are distinguished from broader TIF eligible expenses to focus on costs that substantiate the “but - for” test and justify public assistance. Luther Grou p identified these costs, and Village staff reviewed and agreed that they are appropriate for reimbursement through the District . 2. The economic benefits of the District, as measured by increased employment, business and personal income, and property value, are sufficient to compensate for the cost of the improvements. In making this determination, the Village has considered the follow ing information: The Project represents a significant investment within the downtown core of the Village and will complement existing business within the community by increasing the purchase of goods and services from local suppliers in construction of the Project, and induced effects of employee households spending locally for goods and services from retailers, restaurants and service companies. 3. The benefits of the proposal outweigh the anticipated tax increments to be paid by the owners of property in the overlying taxing jurisdictions. As required by Wis. Stat. § 66.1105(4)(i)4., a calculation of the share of projected tax increments estimated t o be paid by the owners of property in the overlying taxing jurisdictions has been prepared and can be found in this Plan. However, because the Project would not occur without the use of tax incremental financing, these tax increments would not be paid but for creation of the District. Accordingly, the Village finds that the benefits expected to be realized as set forth in this Plan outweigh the value of the tax increments to be invested in the Project. 4. Not less than 50% by area of the real property within the District is in need of rehabilitation or conservation work as defined by Wis. Stat. § 66.1337(2m)(a). 5. Based on the foregoing finding, the District is designated as a district in need of rehabilitation or conservation. Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 5 6. The Project Costs relate directly to the rehabilitation or conservation of property and improvements in the District, consistent with the purpose for which the District is created. Improvements to be made in the District are likely to significantly enhance the value of substantially all the other real property in the District. 7. The equalized value of taxable property in the District, plus the incremental value of all existing tax incremental districts within the Village does not exceed 12% of the total equalized value of taxable property within the Village. 8. The Village estimates that less than 35% of the territory within the District will be devoted to retail business at the end of the District’s maximum expenditure period, pursuant to Wis. Stat. § 66.1105(5)(b). 9. That there are no parcels to be included within the District that were annexed by the Village within the preceding three - year period. 10. The Plan for the District is feasible and is in conformity with the Master Plan of the Village. Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 6 SECTION 2: Preliminary Map of Proposed District Boundary Map f ound on f ollowing p age. The TID boundary will be as of 1/1/2027. A CSM is anticipated to combine the two parcels. Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 7 Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 8 SECTION 3: Map Showing Existing Uses and Conditions Ma p f ound on f ollowing p age. Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 9 Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 10 SECTION 4: Preliminary Parcel List and Analysis Rehabilitation Conditions: Condition 1 : Carrying out plans for a program of voluntary or compulsory repair and rehabilitation of buildings or other improvements. Condition 2 : Acquisition of real property and demolition, removal or rehabilitation of buildings and improvements on the property where necessary to eliminate unhealthful, unsanitary or unsafe conditions, lessen density, reduce traffic hazards, eliminate obsolete or ot her uses detrimental to the public welfare, to otherwise remove or prevent the spread of blight or deterioration, or to provide land for needed public facilities. Condition 3 : Installation, construction or reconstruction of streets, utilities, parks, playgrounds, and other improvements necessary for carrying out the objectives of the urban renewal project. Condition 4 : The disposition, for uses in accordance with the objectives of the urban renewal project, of any property acquired in the area of the project. The disposition shall be in the manner prescribed in this section for the disposition of property in a redevelopm ent project area. "Urban renewal project" includes undertakings and activities for the elimination and for the prevention of the development or spread of slums or blighted, deteriorated or deteriorating areas and may involve any work or undertaking for th is purpose constituting a redevelopment project or any rehabilitation or conservation work, or any combination of the undertaking or work . The parcels being added to the District meet the criteria of “Carrying out plans for a program of voluntary or compulsory repair and rehabilitation of buildings or other improvements”. Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 11 SECTION 5: Equalized Value Test The following calculations demonstrate that the Village expects to be in compliance with Wis. Stat. § 66.1105(4)(gm)4.c., which requires that the equalized value of the taxable property in the proposed District, plus the value increment of all existing tax incremental districts, does not exceed 12% of the total equalized value of taxable property within the Village . The equalized value of the increment of existing tax incremental districts within the Village, plus the base value of the proposed District, totals $ 74,660,500 . This value is less than the maximum of $302,848,776 in equalized value that is permitted for the Village. The projected base value of $1,205,000 for the District includes improvement value prior to expected demolition. It is anticipated the base value for the District will reflect demolished structures and removement of improvement value. Calculation of Village Equalized Value Limit Village TID IN Equalized Value (Jan. 1, 2026) 2,523,739,800 $ TID Valuation Limit @ 12% of Above Value 302,848,776 $ Calculation of Value Subject to Limit Estimated Base Value of Territory to be Included in District 1,205,600 $ Incremental Value of Existing Districts (Jan. 1, 2026) 73,454,900 $ Total Value Subject to 12% Valuation Limit 74,660,500 $ Total Percentage of TID IN Equalized Value 2.96% Residual Value Capacity of TID IN Equalized Value 228,188,276 $ Valuation Test Compliance Calculation Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 12 SECTION 6: Statement Listing the Kind, Number and Location of All Proposed Public Works or Improvements Within the District Project Costs are any expenditure made, estimated to be made, or monetary obligations incurred or estimated to be incurred as outlined in this Plan. Project Costs will be 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 in connection with the implementation of the Plan. If Project Costs incurred benefit territory outside the District, a proportionate share of the cost is not a Project Co st. Costs identified in this Plan are preliminary estimates made prior to design considerations and are subject to change after planning, design and construction is completed. With all Project Costs, the costs of engineering, design, survey, inspection, materials, construction, restoring property to its original condition, apparatus necessary for public works, legal and other consultant fees, testing, environmental studies, perm its, updating Village ordinances and plans, judgments or claims for damages and other expenses are included as Project Costs. The following is a list of public works and other tax incremental financing eligible Project Costs that the Village expects to make, or may need to make, in conjunction with the implementation of the District’s Plan. The map found in Section 7 of this Plan along with the Detailed List of Project Costs found in Section 8 provide additional information as to the kind, number and location of potential Project Costs. Property, Right - of - Way and Easement Acquisition Property Acquisition for Development To promote and facilitate development the Village may acquire property within the District. The cost of property acquired, and any costs associated with the transaction, are eligible Project Costs. Following acquisition, other Project Costs within the cate gories detailed in this Section may be incurred to make the property suitable for development. Any revenue received by the Village from the sale of property acquired pursuant to the execution of this Plan will be used to reduce the total project costs of t he District. If total Project Costs incurred by the Village to acquire property and make it suitable for development exceed the revenues or other consideration received from the sale or lease of that property, the net amount shall be considered “real prope rty Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 13 assembly costs” as defined in Wis. Stat. § 66.1105(2)(f)1.c., and subject to recovery as an eligible Project Cost. Property Acquisition for Conservancy To promote the objectives of this Plan, the Village may acquire property within the District that it will designate for conservancy. These conservancy objectives include: preserving historic resources or sensitive natural features; protection of scenic and historic views; maintaining habitat for wildlife; maintaining adequate open space; reduction of erosion and sedimentation by preserving existing vegetation; and providing adequate areas for management of stormwater. The cost of property acquired for conse rvancy, and any costs associated with the transaction, are eligible Project Costs. Acquisition of Rights - of - Way The Village may need to acquire property to allow for installation of streets, driveways, sidewalks, utilities, stormwater management practices and other public infrastructure. Costs incurred by the Village to identify, negotiate and acquire rights - of - way are eligible Project Costs. Acquisition of Easements The Village may need to acquire temporary or permanent easements to allow for installation and maintenance of streets, driveways, sidewalks, utilities, stormwater management practices and other public infrastructure. Costs incurred by the Village to identi fy, negotiate and acquire easement rights are eligible Project Costs. Relocation Costs If relocation expenses are incurred in conjunction with the acquisition of property, those expenses are eligible Project Costs. These costs may include, but are not limited to: preparation of a relocation plan; allocations of staff time; legal fees; public ation of notices; obtaining appraisals; and payment of relocation benefits as required by Wis. Stat. Chapter 32 and Wis. Admin. Code ADM 92. Site Preparation Activities Environmental Audits and Remediation If it becomes necessary to evaluate any land or improvement within the District, any cost incurred by the Village related to environmental audits, testing, and remediation are eligible Project Costs . Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 14 Demolition To make sites suitable for development, the Village may incur costs related to demolition and removal of structures or other land improvements, to include abandonment of wells or other existing utility services. Site Grading Land within the District may require grading to make it suitable for development, to provide access, and to control stormwater runoff. The Village may need to remove and dispose of excess material, or bring in fill material to provide for proper site eleva tions. Expenses incurred by the Village for site grading are eligible Project Costs. Utilities Sanitary Sewer System Improvements To allow development to occur, the Village may need to construct, alter, rebuild or expand sanitary sewer infrastructure within the District. Eligible Project Costs include, but are not limited to, construction, alteration, rebuilding or expansion of: coll ection mains; manholes and cleanouts; service laterals; force mains; interceptor sewers; pumping stations; lift stations; wastewater treatment facilities; and all related appurtenances. To the extent sanitary sewer projects undertaken within the District p rovide direct benefit to land outside of the District, the Village will make an allocation of costs based on such benefit. Those costs corresponding to the benefit allocated to land within the District, and necessitated by the implementation of the Project Plan, are eligible Project Costs. Implementation of the Project Plan may also require that the Village construct, alter, rebuild or expand sanitary sewer infrastructure located outside of the District. That portion of the costs of sanitary sewer system pr ojects undertaken outside the District which are necessitated by the implementation of the Project Plan are eligible Project Costs. Water System Improvements To allow development to occur, the Village may need to construct, alter, rebuild or expand water system infrastructure within the District. Eligible Project Costs include, but are not limited to, construction, alteration, rebuilding or expansion of: distri bution mains; manholes and valves; hydrants; service laterals; pumping stations; wells; water treatment facilities; storage tanks and reservoirs; and all related appurtenances. To the extent water system projects undertaken within the District provide dire ct benefit to land outside of the District, the Village will make an allocation of costs based on such benefit. Those costs corresponding to the benefit allocated to land within the District, and necessitated by the Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 15 implementation of the Project Plan, are eligible Project Costs. Implementation of the Project Plan may also require that the Village construct, alter, rebuild or expand water system infrastructure located outside of the District. That portion of the costs of water system projects undertaken outside the District which are necessitated by the implementation of the Project Plan are eligible Project Costs. Stormwater Management System Improvements Development within the District will cause stormwater runoff. To manage this stormwater runoff, the Village may need to construct, alter, rebuild or expand stormwater management infrastructure within the District. Eligible Project Costs include, but are no t limited to, construction, alteration, rebuilding or expansion of: stormwater collection mains; inlets, manholes and valves; service laterals; ditches; culvert pipes; box culverts; bridges; stabilization of stream and river banks; and infiltration, filtra tion and detention Best Management Practices (BMP’s). To the extent stormwater management system projects undertaken within the District provide direct benefit to land outside of the District, the Village will make an allocation of costs based on such bene fit. Those costs corresponding to the benefit allocated to land within the District, and necessitated by the implementation of the Project Plan, are eligible Project Costs. Implementation of the Project Plan may also require that the Village construct, alt er, rebuild or expand stormwater management infrastructure located outside of the District. That portion of the costs of stormwater management system projects undertaken outside the District which are necessitated by the implementation of the Project Plan are eligible Project Costs. Electric Service To create sites suitable for development, the Village may incur costs to provide, relocate or upgrade electric services. Relocation may require abandonment and removal of existing poles or towers, installation of new poles or towers, or burying of overhead electric lines. Costs incurred by the Village to undertake this work are eligible Project Costs. Gas Service To create sites suitable for development, the Village may incur costs to provide, relocate or upgrade gas mains and services. Costs incurred by the Village to undertake this work are eligible Project Costs. Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 16 Communications Infrastructure To create sites suitable for development, the Village may incur costs to provide, relocate or upgrade infrastructure required for voice and data communications, including, but not limited to: telephone lines, cable lines and fiber optic cable. Costs incurr ed by the Village to undertake this work are eligible Project Costs. Streets and Streetscape Street Improvements To allow development to occur, the Village may need to construct or reconstruct streets, highways, alleys, access drives and parking areas. Eligible Project Costs include, but are not limited to: excavation; removal or placement of fill; construction of ro ad base; asphalt or concrete paving or repaving; installation of curb and gutter; installation of sidewalks and bicycle lanes; installation of culverts, box culverts and bridges; rail crossings and signals; utility relocation, to include burying overhead u tility lines; street lighting; installation of traffic control signage and traffic signals; pavement marking; right - of - way restoration; installation of retaining walls; and installation of fences, berms, and landscaping. Streetscaping and Landscaping To attract development consistent with the objectives of this Plan, the Village may install amenities to enhance development sites, rights - of - way and other public spaces. These amenities include, but are not limited to: landscaping; lighting of streets, si dewalks, parking areas and public areas; installation of planters, benches, clocks, tree rings, trash receptacles and similar items; and installation of brick or other decorative walks, terraces and street crossings. These and any other similar amenities i nstalled by the Village are eligible Project Costs. Community Development Cash Grants (Development Incentives) The Village may enter into agreements with property owners, lessees, or developers of land located within the District for sharing costs to encourage the desired kind of improvements and assure tax base is generated sufficient to recover Project Costs. No cash grants will be provided until the Village executes a developer agreement with the recipient of the cash grant. Any payments of cash grants made by the Village are eligible Project Costs. Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 17 Miscellaneous Projects Outside the Tax Increment District Pursuant to Wis. Stat. § 66.1105(2)(f)1.n, the Village may undertake projects within territory located within one - half mile of the boundary of the District provided that: 1) the project area is located within the Village’s corporate boundaries; and 2) the projects are approved by the Joint Review Board. The cost of projects completed outside the District pursuant to this section are eligible project costs, and may include any project cost that would otherwise be eligible if undertaken within the District. T he Village does not intend to make project cost expenditures outside the District . Professional Service and Organizational Costs The costs of professional services rendered, and other costs incurred, in relation to the creation, administration and termination of the District, and the undertaking of the projects contained within this Plan, are eligible Project Costs. Professional ser vices include but are not limited to: architectural; environmental; planning; engineering; legal; audit; financial; and the costs of informing the public with respect to the creation of the District and the implementation of the Plan. Administrative Costs The Village may charge to the District as eligible Project Costs reasonable allocations of administrative costs, including, but not limited to, employee salaries. Costs allocated will bear a direct connection to the time spent by Village employees relating to the implementation of the Plan. Financing Costs Interest expense, debt issuance expenses, redemption premiums, and any other fees and costs incurred in conjunction with obtaining financing for projects undertaken under this Plan are eligible Project Costs. Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 18 SECTION 7: Map Showing Proposed Improvements and Uses Map f ound on f ollowing p age with a rendering of the proposed development. Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 19 S ECTION 8: Detailed List of Estimated Project Costs The following list identifies the Project Costs that the Village currently expects to incur in implementing the District’s Plan. All projects identified and related costs reflect the best estimates available as of the date of preparation of this Plan. All costs are preliminary estimates and may increase or decrease. Certain Project Costs listed may become unnecessary, and other Project Costs not currently identified may need to be made. (Section 6 details the general categories of eligible Project Costs). C hanges in Project Cost totals or the types of Project Costs to be incurred will not require that this Plan be amended. T his Plan is not meant to be a budget nor an appropriation of funds for specific Project Costs, but a framework within which to manage Project Costs. Any developer incentive provided will require a development agreement approved by the Village Board. Subject to approval of a developer agreement the payment term for the developer incentive is capped at $3,658,245 payable through 2048. If the full amount of the incentive is not repaid by 2048, the Village will have no obligation to pay any outstanding balance. Less: Project Name/Type Cost Non-Project Costs Net Totals Developer Incentive Extraordinary Costs ($2.1 million principal) 0 Utility relocations 200,000 200,000 Sidewalks Curb & Gutter 22,350 22,350 Earth Retention System 277,500 277,500 Underground Stormwater System 175,000 175,000 Structural Fill Corrections 150,000 150,000 Environmental Studies & Engineering 123,000 123,000 Asbestos & Lead Abatement 75,000 75,000 Contaminated Soil 227,150 227,150 Vapor Mitigation 125,000 125,000 Demolition & Clearance of Site Conditions 75,000 75,000 Urban Construction Premium and Site constraints 650,000 650,000 Interest on Developer incentive (5% present value) for 20 years 1,558,245 1,558,245 Ongoing Planning & Administrative Costs 160,000 160,000 TOTALS 3,818,245 0 3,818,245 Detailed List of Estimated Project Costs Estimated Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 22 SECTION 9: Economic Feasibility Study, Description of the Methods of Financing Estimated Project Costs and the Time When Related Costs or Monetary Obligations are to be Incurred This Section includes a forecast of the valuation increases expected within the District, the associated tax increment collections, a summary of how Project Costs would be financed, and a projected cash flow demonstrating that the District is economically feasible. Key Assumptions The Project is estimated to generate approximately $1 7 .5 million in incremental value. This is a preliminary estimate. There are not many comparable projects in the immediate area. Estimated valuations and timing for construction of the Project are included in Table 1. Assuming an Interim tax rate of $9.91 per thousand of equalized value, and 1.25% appreciation, the District would generate approximately $5.4 million in incremental tax revenue over the 27 - year term of the District as shown in Table 2 . Based on the Project Cost expenditures included within the cash flow exhibit (Table 3) , the District is projected to remain open for 20 years due to incentive payments ending in 2048. The projected closure is based on the various assumptions noted in this Plan and will vary dependent on actual Project Costs incurred and the actual amount of tax increments collected. Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 23 Table 1 – Development Assumptions Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 24 Table 2 – Tax Increment Projection Worksheet Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 25 Table 3 – Cash Flow Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 26 SECTION 10: Annexed Property A tax incremental district cannot include annexed territory unless at least three years have elapsed since the annexation, or certain other requirements are met. None of the property within the proposed District boundary was annexed during the past three years. SECTION 11: Estimate of Property to Be Devoted to Retail Business Pursuant to Wis. Stat. § 66.1105(5)(b), the Village estimates that less than 35% of the territory within the District will be devoted to retail business at the end of the District’s maximum expenditure period. SECTION 12: Proposed Changes of Zoning Ordinances, Master Plan, Map, Building Codes and Village Ordinances Zoning Ordinances The proposed Plan is in general conformance with the Village’s current zoning ordinances. Individual properties may require rezoning at the time of development. Master (Comprehensive) Plan and Map The proposed Plan is in general conformance with the Village’s Comprehensive Plan identifying the area as appropriate for redevelopment as a commercia use . Building Codes and Ordinances Development within the District will be required to conform to State Building Codes and will be subject to the Village's permitting and inspection procedures. The proposed Plan conforms to all relevant State and local ordinances, plans, and codes. No chang es to the existing regulations are proposed or needed. Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 27 SECTION 13: Statement of the Proposed Method for the Relocation of any Persons to be Displaced Should implementation of this Plan require relocation of individuals or business operations, relocations will be handled in compliance with Wis. Stat. Chapter 32 and Wis. Admin. Code ADM 92. SECTION 14: How Creation of the Tax Incremental District Promotes the Orderly Development of the Village Creation of the District and the implementation of the projects in its Plan will promote the orderly development of the Village because the Project represents a significant investment within the downtown core of the Village and will complement existing business within the community. Through use of tax increment financing, the Village can attract new investment that results in increased tax base. Development will occur in an orderly fashion in accordance with approved plans so that the Projects will be compatible with adjacent land uses. SECTION 15: List of Estimated Non - Project Costs Non - project costs are public works projects which only partly benefit the District. Costs incurred that do not benefit the District may not be paid with tax increments. Examples of non - project costs are: • A public improvement made within the District that also benefits property outside the District. That portion of the total Project Costs allocable to properties outside of the District would be a non - project cost. • A public improvement made outside the District that only partially benefits property within the District. That portion of the total Project Costs allocable to properties outside of the District would be a non - project cost. Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 28 • Projects undertaken within the District as part of the implementation of this Project Plan, the costs of which are paid fully or in part by impact fees, grants, special assessments, or revenues other than tax increments. No improvements to be made within the District will benefit property outside the District. Furthermore, there will be no improvements made outside the District that will only partially benefit the District. SECTION 16: Legal Opinion Advising Whether the Plan is Complete and Complies with Wis. Stat. § 66.1105(4)(f) Legal Opinion Found on Following Page. Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 29 Tax Incremental Finance District No. 8 Project Plan Village of Hartland Prepared by Ehlers Page | 30 SECTION 17: Calculation of the Share of Projected Tax Increments Estimated to be Paid by the Owners of Property in the Overlying Taxing Jurisdictions The following projection is provided to meet the requirements of Wis. Stat. § 66.1105(4)(i)4. Village of Hartland, Wisconsin Tax Incremental Finance District No. 8 Plan Commission Resolution RESOLUTION NO. 09/28/2026 RESOLUTION ESTABLISHING THE BOUNDARIES OF AND APPROVING THE PROJECT PLAN FOR TAX INCREMENTAL FINANCE DISTRICT NO. 8 WHEREAS, the Village of Hartland (the “Village”) has determined that use of Tax Incremental Financing is required to promote development and redevelopment within the Village; and WHEREAS, Tax Incremental Finance District No. 8 (the “District”) is proposed to be created by the Village in accordance with the provisions of Wisconsin Statutes Section 66.1105 (the "Tax Increment Law"); and WHEREAS, a Project Plan for the District has been prepared that includes: a. A statement listing of the kind, number and location of all proposed public works or improvements within the District, or to the extent provided in Wisconsin Statutes Sections 66.1105(2)(f)1.k. and 66.1105(2)(f)1.n., outside of the District; b. An economic feasibility study; c. A detailed list of estimated project costs; d. A description of the methods of financing all estimated project costs and the time when the related costs or monetary obligations are to be incurred; e. A map showing existing uses and conditions of real property in the District; f. A map showing proposed improvements and uses in the District; g. Proposed changes of zoning ordinances, master plan, map, building codes and Village ordinances; h. A list of estimated non-project costs; i. A statement of the proposed plan for relocation of any persons to be displaced; j. A statement indicating how the District promotes the orderly development of the Village; k. An opinion of the Village Attorney or of an attorney retained by the Village advising that the plan is complete and complies with Wisconsin Statutes Section 66.1105(4)(f); and WHEREAS, prior to its publication, a copy of the notice of public hearing was sent to the chief executive officers of Waukesha County, the Hartland-Lakeside Joint No 3 School District, and Arrowhead Union High School and the Waukesha County Area Technical College District, and any other entities having the power to levy taxes on property located within the District, in accordance with the procedures specified in the Tax Increment Law; and WHEREAS, prior to its publication, a copy of the notice of public hearing was also sent to the owners of all property in the proposed District; and WHEREAS, in accordance with the procedures specified in the Tax Increment Law, the Plan Commission, on September 28, 2026 held a public hearing concerning the proposed creation of the District, its proposed boundaries and its proposed Project Plan, providing interested parties a reasonable opportunity to express their views thereon. Village of Hartland, Wisconsin Tax Incremental Finance District No. 8 Plan Commission Resolution NOW, THEREFORE, BE IT RESOLVED by the Plan Commission of the Village of Hartland that: 1. It recommends to the Village Board that Tax Incremental Finance District No. 8 be created with boundaries as designated in Exhibit A of this Resolution. 2. It approves and adopts the Project Plan for the District, attached as Exhibit B, and recommends its approval to the Village Board. 3. Creation of the District promotes orderly development in the Village. Adopted this _____ day of _______________, 2026. Plan Commission Chair Village Clerk Village of Hartland, Wisconsin Tax Incremental Finance District No. 8 Plan Commission Resolution EXHIBIT A - TAX INCREMENTAL FINANCE DISTRICT NO. 8 BOUNDARY MAP [INCLUDED IN PROJECT PLAN] Village of Hartland, Wisconsin Tax Incremental Finance District No. 8 Plan Commission Resolution EXHIBIT B - PROJECT PLAN [DISTRIBUTED SEPARATELY]