Council approves creation of Tax Increment District 18 to support mixed industrial and NextGen housing development

The City of West Bend approved Resolution No. 26 creating Tax Increment District (TID) No. 18, a 164-acre mixed-use district intended to finance public infrastructure and incentives to enable industrial development and approximately 315 owner-occupied NextGen housing units. Phil Costin of Ehlers summarized the project plan and statutory process, saying the district would be mixed-use with a maximum life of 20 years and identifying roughly $31.4 million in project costs that include reconstruction of Rusco Road, a roundabout at Rusco and River, a small lift station and development incentives. Costin explained the plan assumes incremental taxable value of about $180 million and that some project costs lie just outside the district boundary but would be eligible to be paid from the district. Christian Cheslock, CEO of the Economic Development Washington County (EDWC), presented a fiscal-impact analysis for the residential component and said the county and EDWC propose pairing local NextGen Housing funds with the TID. Cheslock said the analysis estimates about 167 new households and roughly 425 new residents and that the combined projected net benefits after incentives would be substantial. "That is by design," Cheslock said of the staged funding and delayed payback structure. Deb Sloskin, Community Development Director for Washington County, described NextGen Housing program rules the county requires for funding, including owner-occupancy requirements, price-point targets (40% under $340,000; 40% under $360,000; remaining under $420,000), and a standard $20,000-per-owner-occupied-unit loan mechanism repaid by increment or as a revolving loan. Council members debated timing and asked for clarifications on cash flow, the county's role, interest/deferral terms and how potential appreciation and buildout speed would affect TID cash flow. A motion to postpone consideration to Aug. 18 was made during discussion and taken to roll-call; council proceeded to a final motion to adopt Resolution No. 26. The council voted to approve the TID creation and project plan by a roll-call vote of 7-1. Staff and Ehlers noted the project plan must still be reviewed by the joint review board and certified by the state Department of Revenue before it becomes effective; development agreements with the developers will follow and will define final incentive amounts and payment schedules.