City approves development agreement
TIF helps fund New London residential project
By Robert Cloud
Members of the New London Common Council voted unanimously to approve a developer’s agreement with S.C. Swiderski (SCS) Tuesday, July 19.
During a Committee of the Whole meeting held immediately before the council meeting, City Administrator Chad Hoerth explained the agreement.
Hoerth said SCS plans to develop property located between Wyman Street, Wolf River Avenue, Smith Street and the Bernegger River Walk Trail in downtown New London.
Located in a tax incremental financing district, the residential project is projected to increase assessed property values by $4.2 million after two years and additional tax revenues by more than $94,000 annually.
TIF districts allow municipalities to capture all additional tax revenues to help pay for development costs. That means the tax revenues that would go to the city, school district, county and other entities, will be collected by the TIF district for a period of 20 years.
As part of the agreement, the city commits to pay SCS 50% of the TIF incremental funds up to $400,000.
New London will collect the other 50% until SCS receives its $400,000, then it will receive 100% of the increased tax revenues.
The city expects to meet its commitment to SCS within 8-9 years.
In the initial phase of the project, the city will spend $800,000 to relocate utilities, which will be initially funded by the city, but recovered with TIF District funding.
Construction on the residential project is scheduled to begin by June 30, 2023, and completed by Dec. 31, 2024.