WAUKESHA — The Common Council will meet Tuesday evening to review and act on three tax incremental financing districts, extending one, creating one and terminating one.
Tax incremental financing is an economic development tool used by municipalities primarily to encourage private development or investment by using public funds for infrastructure improvements, with the intention of making the money back through increased property tax revenues.
City staff is recommending that the life of TID No. 22 be extended by one year and that the revenue generated be allocated toward affordable housing in the city, city documents show.
This comes as the city is struggling to find enough affordable housing units, as reported by the Waukesha Housing Authority Sept. 6.
TID No. 22 was created in 2013 as a mixed-use district in order to facilitate various projects along the East Sunset Drive commercial corridor, including redevelopment of the former Kmart into Sunset Crossings, a multi-tenant commercial center, as well as upgrades to stormwater infrastructure in the area, according to documents.
The district’s land value increased by $56,214,600 since its creation, a 2021 assessed value shows.
As the project plan is to be completed in 2023, city staff wants to use the state’s “affordable housing extension,” which would allow the city to extend the TID’s life by one year with the increment collected going to benefit affordable housing, according to city documents.
The city says it has already created two programs to which these funds will be allocated: the Affordable Housing Rehabilitation Loan program and the Affordable Housing Development Fund.
At its last meeting, the council voted to use $750,000 in American Rescue Plan Act funding for manufacturer Wildeck Inc. to expand their operations in the city, consolidating their Waukesha and Pewaukee locations at this property. Now, the city is looking to create TID No. 31 at the property, 1900 E. North St., which was previously occupied by Eaton.
Tax incremental financing is needed to pay for the costs to raze the old office space, reconstruct new office space, relocate a fire pump and upgrade the manufacturing space in order to meet Wildeck’s requirements, city documents say.
The property is currently assessed at $3,423,200 and is expected to assess at $9,923,200 after the rehabilitation work. It’s anticipated that the district will close in 2037, according to city documents.
TID No. 21 was created in 2012 with a base value of $11,343,900. The district was created to facilitate redevelopment of the 33-acre former Spancrete facility.
The property, now assessed at $42,537,800, is occupied by Woodman’s, Culver’s, Waukesha State Bank, Planet Fitness and a mixed-use retail building.
As of 2021, sufficient increment was collected to meet all the project costs and financial obligations, the city says, therefore the district can be terminated.
The Common Council will meet at 6:30 p.m. on Tuesday in the City Hall Council Chambers, 201 Delafield St.