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Redevelopment authority establishes TIF District 30 to support US Bank building conversion
Summary
The Redevelopment Authority approved a resolution creating Tax Increment Financing District No. 30 in downtown Green Bay to support conversion of the former US Bank tower into 66 market-rate apartments with first-floor commercial use, using a pay-as-you-go incentive capped at $7 million.
The Redevelopment Authority of the City of Green Bay on a unanimous voice vote approved a resolution establishing Tax Increment Financing (TIF) District No. 30 to support conversion of the former US Bank building at 425 Pine Street into 66 market-rate apartments above first-floor commercial space.
Rebecca, a city redevelopment staff member, told the authority the proposal is a “rehabilitation or conservation” TIF and that the project would convert floors two through seven to 66 market-rate rental units while keeping the first floor as commercial space. She said the developer’s amended incentive package includes an 85% pay-as-you-go reimbursement, a $7,000,000 tax-increment cap and a minimum guaranteed property value of $8,000,000.
The plan is structured as a pay-as-you-go incentive, Rebecca said, meaning the developer must first create new assessed value; a portion of the incremental property taxes generated by that new value would be reimbursed to the developer over time. City modeling estimates the project would add roughly $8.4 million in equalized value and generate about $4.2 million in incremental tax collections over the district’s 27-year maximum life; estimated reimbursements under the development agreement total about $3.6 million over that period, well below the stated $7 million cap. Rebecca told the authority there is no planned district debt issuance and that the only revenue source modeled is the district’s incremental tax stream.
A representative of Downtown Green Bay Incorporated spoke during the public hearing in support of the conversion, saying the building “has been largely vacant” and that additional downtown residents would be welcome. Harry Allen of Ehlers, the city’s financial consultant, was on the line for technical detail during the hearing.
The authority adopted the resolution to establish boundaries and approve the project plan for TIF District No. 30 after the public hearing. The record shows the incentive structure is limited to pay-as-you-go reimbursements; any portion of the $7 million cap that is not supported by incremental collections by district closure would not become a city liability.
The authority returned to regular business after the vote; next steps include administration of the development agreement and monitoring of incremental collections and reimbursements.
