New London plans TIF districts
By Robert Cloud
The Joint Review Board and the Planning Commission each recommended that the city approve preliminary plans and boundaries for two Tax Incremental Financing (TIF) districts during meetings on Thursday, July 22.
A TIF district “is the primary and really only major economic development tool in the state of Wisconsin,” according to Phil Cosson, a municipal advisor with Ehlers and Associates.
Cosson discussed the proposed projects and costs of TIF Districts 3 and 4 at the meetings.
“If you want to spur redevelopment, if you want to encourage development, then TIF is the game,” Cosson said.
TIF districts are within the purview of the Joint Review Board, which includes representatives from all taxing jurisdictions, including the city, school district, county and Fox Valley Technical College, as well as one citizen member.
All jurisdictions continue to receive the current, or baseline level, of tax revenues from the district, while the city receives the new, or incremental, tax revenues created by development until it pays off its costs for roads and utilities.
He said the two proposed TIF districts will have mixed use developments that include commercial, residential and some industrial and 20 years to pay off the city’s associated costs.
Prepared by Ehlers
TIF District 3
TIF District 3 has a section located on each side of the Wolf River.
North of the river, the district’s boundary runs along North Water Street, west of North Pearl Street and just east of State Street.
The northern boundary has small bump out at Lincoln Court, where a parking lot is planned.
South of the river, South Pearl Street defines the district’s eastern boundary between the river and West Spring Street. The western boundary is city-owned land north of Wolf River Avenue. It also includes parcels between Smith and Pearl streets.
TIF District 3 boundaries encompass 10.75 acres. Its current total property value is about $2.55 million.
The projected growth in property value due to development is estimated at $4.2 million.
The city has approved S.C. Swiderski LLC’s plan to develop a 44-unit residential project along the riverfront.
Cosson said retail development is also expected on both the north and south sides of the river.
The district plan estimates $200,000 in downtown development.
The city’s TIF District 3 project costs include $550,000 for utility relocation on the city-owned parcel, $325,000 for North Water Street improvements, $100,000 for North Pearl Street improvements, $100,000 for downtown parking, $50,000 for parking near South Pearl Street, $100,000 for downtown streetscaping and $25,000 for TIF district administrative costs and professional services.
TIF District 4
Located on the city’s south side, TIF District 4 runs along Beckert Road, between Oshkosh and Division streets.
The district is about 37 acres total and has a base value of $1,77 million.
New development is estimated to increase property values within the district by at least $3 million.
On the west side of the district, Randy Retzlaff has proposed development of multi-unit and single-family housing.
Most of the single-family housing will be outside the district due to state TIF regulations that encourage multi-unit development.
The city’s projected costs are approximately $1 million, which includes $400,000 to extend Southland Lane and $500,000 for work on Oshkosh Street and Beckert Road.
City Finance Director Judy Radtke told the board that the city’s costs for road improvements will be in the millions and TIF revenues will pay for only about 25% of those costs.
But the revenues help the city limit its total bonding for the road work to a more affordable amount.
“Any revenue that we can gain through the increment and the building of this development is a win for the city,” Radtke said. “I feel like this is a great opportunity for the city.”
Cosson noted that the boundaries, costs and project details were preliminary and more details would be worked out over time.
After the board’s meeting, the Planning Commission voted to recommend TIF Districts 3 and 4 to the city council.