GERMANTOWN — The Joint Review Board in Germantown approved an amendment to its tax incremental financing district 7, adding land to it to pave the way for a new development.
The vote is the last approval required at the municipal level. The Plan Commission gave the all-clear to adding to the TID March 8, and the Village Board adopted the resolution to change the TID on March 15. The Joint Review Board includes a representative from each of the taxing authorities affected by the TID.
With the amendment to the TID approved, a development from Capstone Quadrangle is set to go forward. The Waukesha-based developer is planning to construct about 800,000 square feet of industrial space in three buildings off Holy Hill Road.
The TID has been adjusted to add the property where that development will occur to the district, to allow village assistance to the Capstone project. The project is projected to create about $61 million in new value, according to the TID project plan.
“I think, in a very positive way, we’re impacting TID 7 not only for the possible development and future development that’s being proposed, but also it helps support the (district) and helps to close it earlier, so it can be part of the tax rolls earlier for all the taxing authorities,” Germantown Village President Dean Wolter said.
Tax incremental finance districts are areas in which properties are removed from normal tax rolls. When development occurs within the district, creating new tax increment, the monies that would normally be paid in property taxes for the parcels to various taxing jurisdiction – the municipality, school district, the county and other taxing authorities – are instead all kept within the district for improvements.
Municipalities often use TID funds to provide developer incentives or install infrastructure, such as roads and water and sewer, to assist development with moving forward; in some cases the money is borrowed for costs up from and then paid back using TID money collected over the lifetime of the district. The only significant alteration made to the TID 7 amendment since the process began was a village project cost being added. The project plan stated that a recreational trail along Goldendale Creek will be funded through the district; it is scheduled for 2023 and projected to cost $700,000.
Phil Cosson, of financial consultant Ehlers which has been assisting the village with the TID amendment process over the past few months, said that without the amendment, TID 7 was predicted to close after 14 of the 20 years a TID is allowed. Cosson said with the amendment, it will close two years faster due to the additional development and increment to be created.
“This amendment allows for a little more security within TID 7,” Cosson said.
The JW Speaker facility within the original TID 7 boundaries has not progressed as much as originally planned, and thereby has not created as much increment revenue as originally expected; the security Cosson referred to is that the Capstone Quadrangle development will add value and revenue, allowing the investments so far into the district to be paid off more quickly.