City amends TID boundary for housing complex
By Bert Lehman
The Clintonville Plan Commission and the Clintonville City Council agreed to amend the boundaries of Tax Incremental District (TID) No. 8 to help pave the way for a new housing complex.
The Plan Commission held a public hearing on Jan. 18 to discuss amending the TID boundary as well as other changes to the project.
TID No. 8 was originally created in 2018 to allow for a new housing complex to be built featuring townhouse apartments.
The same developer who built that housing complex in Clintonville wants to build another one near it.
In order for that development to take place, the land needs to be rezoned.
“In making that residential, by acreage you are over the 35% limit that you have for a mixed-use district, so one of the options you have, is of course, to add more acreage to non-residential,” said Brian Roemer, municipal advisor for Ehlers, the city’s financial advisor.
The project plan amendment would add 325A 15th Street to TID No. 8. The addition would put the city in acreage compliance, Roemer said.
“You can then have that other parcel be a residential development,” Roemer said.
Developer seeks incentives
Beyond that, Roemer said the residential developer is looking for an incentive to complete the development.
He suggested, since the city has to amend the boundary of the TID, that it also amend the project plan to add the costs into the project plan. He said the actual costs instead of estimated costs for the street projects in the TID could also be included in the amended plan.
“All in all, the difference in project costs from the original plan to this amended plan is a little over $175,000,” Roemer said.
About $140,000 of the additional cost is due to the developer incentives. The costs to do the amendment are also included in the additional costs. These costs include Ehlers developing the plan, the city’s attorney fees to write a legal opinion that is statutorily required, as well as administrative time to handle meetings and reviewing documents.
Roemer said TID No. 8 now has an expected closure date of 2028.
“This is based on some assumptions of kind of a flat tax rate in this new development going on,” Roemer said.
He added that any economic appreciation that happens may lead the district to close sooner.
The city council approved the project plan changes and amended boundary for TID No. 8 at a special council meeting that followed the Plan Commission meeting.
Roemer told the council that the city is allowed to change the project plan for a TID four times, and this is the first change for TID No. 8. He added that there are no future changes anticipated.