New TIF district a go for Slinger

By JOE VANDELAARSCHOT - Daily News

Aug. 4, 2015

SLINGER — If projections become reality, the creation of a Tax Incremental Finance District approved by the Village Board on Monday night could generate $62 million in improvements during the next 20 years.

John Korman, of Ehlers, the company advising the village on the creation of TIF District No. 4, said the project should attract new residential, commercial and business development.

“That means additional tax revenue and jobs in the village,” Korman said.

The district would cover 144 acres in an area northeast of the intersection of Highways 41 and 60 and includes property along Highway K. About 43 acres, or 29 percent, are designated for residential development.

“The type of district being proposed is a mixed use district,” said Village President Russ Brandt. “Based upon the land area to be included, greater than 59 percent of the land area would be suitable for commercial and industrial use. State law says we can create residential development on, at most, only 30-35 percent of the land.”

A TIF district uses additional property taxes generated within its borders through increased economic development to pay for building infrastructure such as sewer and water, storm water management, roads, access to electricity and natural gas as well as other improvements needed to spur development.

The proposal was discussed at several earlier Village Board and Redevelopment Authority meetings.

“If the TIF sells property, do the profits made from that sale need to be put back into the TIF district fund?” asked Trustee Dean Otte.

Korman said it’s possible that might be the case, but he said he’d have to do some research to provide a correct answer.

According to Ehlers and Associates, about $8 million will need to be spent by the village on TIF district improvements to allow development. That would include the installation of general utility infrastructure, storm water management systems and roads. Development incentives of $2.7 million are also included, along with $50,000 for planning for development of a specific zone. The improvement costs will be either assessed directly back to the benefitting properties or paid directly by developers.

Officials said the economic benefits of the TIF district, as measured by increased employment, business and personal income, and property value, are sufficient to compensate for the cost of the improvements. The village considered many factors, including the approximately 184 residential units created by the development expected within the district that would provide housing opportunities for workers.