Baird presents Neenah tax-increment report showing outsized growth in several TIDs; council asks for more review time

Brad Vigoot of Baird gave the City of Neenah Common Council a high-level review of the city's biennial tax incremental district (TID) report at the Jan. 15 meeting, summarizing cash-flow analyses, recent closures and projections for seven currently active TIDs.

Vigoot said the report, the fifth produced for the city, is meant as an up-to-date summary for elected officials and the public and is published about every two years. "It's about every 2 years, there's a new report," he said.

The nut of the presentation: two TIDs have closed since the last report (TID 5 and TID 6), several districts have produced more incremental value than projected, and newer TIDs show forward-looking borrowing and construction assumptions that could change the timing of closures. Highlights cited by Vigoot included:

- TID 5 (downtown business district) closed in 2023. The project plan had forecast about $9.3 million in increment; actual incremental revenue was just under $16 million. - TID 6 (South Park Industrial Center) closed in 2023 and produced about $28.7 million in new tax growth from inception through closure. - TID 7 (west-side business corridor) had generated roughly $121.5 million in tax increment through 2024, about $41.8 million above the last project-plan projection; TID 7 currently donates funds to TID 8 per past council approvals. - TID 8 (Doty Island business district) generated about $89 million in new value through 2024, beating its last projection by roughly $21 million but has experienced years where annual expenditures exceeded revenues. - TID 9 (I-41 South Industrial Redevelopment) has produced some $10.5 million in increment and is repaying city advances; it is projected to close in the late 2030s. - TID 10 (downtown gateway redevelopment) had generated about $14.6 million to date and was tracking behind the prior projection by about $5 million; the analysis shows future debt issuance and short-term deficits before positive annual cash flow resumes. - Newer districts, including TID 11 (Pendleton development), TID 12 (Bridgeport) and TID 13 (South Park expansion), showed varying projected futures: TID 11 had produced roughly $32.3 million to date; TID 12 is projected to generate $25.1 million in new growth over a six-year window; TID 13 (created summer prior) was projected to generate about $45.9 million over its life.

Vigoot noted the city and prior councils have used statutory tools, including distressed designations and donor-district arrangements, to manage shortfalls and that two closed TIDs used the affordable-housing extension to allocate about $850,000 in aggregate increment toward affordable housing. He also emphasized that the report is a snapshot and projections change as construction timing and valuations evolve.

Council members asked procedural and substantive questions. Alderman Lundrum pressed the timing of distribution: "The discouraging thing is the council didn't get this report until Monday at 8 o'clock at night," he said, calling the 100-page report difficult to review on short notice. Vigoot and staff said the packet had been provided earlier to city staff and to Baird, but the council packet distribution timeline had resulted in late receipt for some members.

Alderman Steiner asked about Standard & Poor's commentary that described a weak debt profile even while the city holds a double-A rating. Vigoot said the characterization stems from S&P's internal categories and metrics but does not affect market access: "You're a solid double a. You're not gonna be downgraded because of the debt outstanding," he said, adding S&P also cited strong management practices.

Several aldermen praised the clarity of the report while reiterating the need for more time to review long documents. Vigoot and councilors agreed that the community development department will continue routine monitoring and bring finance recommendations to committee as financings or development agreements arise.

No formal action was taken on the report at the meeting. Council members were directed to the finance director for follow-up questions and the report was entered into the municipal record.

Ending: The presentation will remain available as part of the council packet; staff and Baird suggested the council direct further technical questions to the finance and community development departments and indicated the biennial monitoring process will continue.