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Common Council approves creation of Tax Increment District No. 17 and project plan; moves to Joint Review Board
Summary
The Common Council voted 6–1 to create Tax Increment District No. 17, approve its project plan and establish its boundaries. City staff said the TID is structured for mixed-use development and that developer agreements will include pay-as-you-go provisions and minimum value guarantees.
The Common Council on Jan. 20 approved a resolution creating Tax Increment District (TID) No. 17, approving its project plan and setting the district’s boundaries. The motion passed 6–1 and will next go to the Joint Review Board.
City staff told council members the proposed TID is a mixed-use district structured under statutory provisions for mixed-use development, not a blight or brownfield designation. A staff speaker said the city has been cautious with TIDs created in the last decade and generally uses pay-as-you-go (PAYGO) developer agreements that do not obligate the city until tax increment is received.
Alderman Mitch raised the finance risk question: if projected development fails to materialize, taxpayers could bear the cost. Staff and legal counsel responded that TIDs under state law have multiple types (environmental, blight, mixed-use) and that this project meets mixed-use criteria. Staff added that developer agreements typically include a minimum value guarantee and that the “but for” test — that development would not occur but for the TID — will be applied at each step when incentives or agreements are approved.
Council members asked about the city’s prior experience with TIDs; staff noted the city has worked to avoid earlier problematic structures and emphasized the PAYGO approach. After discussion, the council approved the resolution 6–1; the matter was scheduled for review by the Joint Review Board the following morning.
The resolution’s approval authorizes staff to finalize documents needed for the district and continue negotiating any developer agreement required to implement the project plan.
