West Bend planning commission backs creation of Tax Increment District 18 to fund mixed-use development

The West Bend City Plan Commission voted July 1 to recommend that the City Council establish Tax Increment District No. 18 and approve the district's project plan, which would fund infrastructure and developer incentives for a mixed-use development south of Roscoe Road between Main Street and River Road.

The project plan covers roughly 164 acres (about 13 acres of wetlands are excluded from developable acreage) and calls for a mix of industrial uses on the eastern parcels and roughly 315 "NextGen" residential units in the purple residential area of the plan. Commission discussion and staff presentations said estimated project costs total about $35,000,000 and projected built value could reach roughly $180,000,000 if the plan is fully realized; the plan anticipates closing in about 19 years.

Why it matters: The TID would pay for street and utility work including Roscoe Road reconstruction, a roundabout at Roscoe and River, a lift-station decommissioning, and a multiuse path connecting to the Eisenbond Trail. The plan also includes developer incentives and a county-backed NextGen down-payment/loan program intended to keep a portion of the homes affordable to local buyers.

City staff described the proposal as a mixed-use tax increment financing district that meets state-era mixed-use criteria (at least two land uses comprising at least 50% of the planning area) and therefore may have up to a 20-year maximum life; the project plan projects a 19-year closeout. The plan shows six parcels inside the draft boundaries with a base (current) assessed value of about $1,300,000; staff's buildout projection would increase that to about $180,000,000.

Cost and funding breakdown: Staff presented a $35 million estimated project cost. That number includes about $7.7 million for primary infrastructure (Roscoe Road and the roundabout), roughly $21.7 million in developer incentives and PAYGo/MRO (municipal revenue obligation) items, and about $6.3 million to cover the county NextGen program ($20,000 per unit for 315 units). Staff said much of the developer incentive portion would be structured as PAYGo or contractual MROs, meaning developers earn a portion of the new increment back if they meet contract requirements rather than the city borrowing the full amount up front.

Housing and industrial components: The residential component is described as 315 NextGen units capped at targeted price tiers and intended to deliver higher-density, "missing middle" housing (staff noted the development would meet the requirement that newly platted residential not exceed 35% of district acreage and would achieve more than three units per acre). Industrial buildout was projected at about $75 million over multiple years; staff reported two prospective industrial users, one seeking a 10-acre pad and another needing rail access.

Timing and process: Staff said the joint review board of taxing jurisdictions reviewed the plan the same morning and provided limited comment but overall support, especially for the NextGen housing. The plan commission opened and then closed a public hearing before taking action. The commission moved to adopt a resolution recommending establishment of the district and approval of the project plan; the motion passed (the commission will forward the recommendation to City Council for final action). Staff noted final steps will include a city attorney opinion letter confirming statutory elements are present and subsequent development agreements that define cash-flow priorities (staff indicated typical practice is to have debt payments serviced first, then MRO reimbursements).

Questions from commissioners covered coordination with Washington County on nearby Main and Roscoe intersection improvements, sequencing of construction (staff estimated substantive construction in 2026/2027 with initial work such as lift-station decommissioning occurring earlier), and whether developer infrastructure costs exceed the incentive percentages shown in the plan. Staff said developers have provided higher infrastructure-cost estimates than the incentive amounts; incentives are intended to help, not to fully pay, those costs.

What remains: The planning commission's vote is a recommendation to council; the council is scheduled to review the district at a subsequent meeting (staff indicated a Council action likely in August and joint review board follow-up about two weeks later, subject to scheduling). Staff emphasized that specific development agreements and implementation schedules will return for review and that actual borrowing or reimbursements likely will not be necessary for at least one to two years, depending on development pacing.

The plan commission approved the recommendation after public hearing closure and discussion. The matter now advances to the City Council for final consideration and any associated ordinance or resolution required to formally create TID No. 18.