Council creates TID 19 to support conversion of former Lake Superior Elementary into 50 apartments

The City of Superior Common Council on Jan. 21 approved a resolution establishing Tax Incremental District No. 19 to support redevelopment of the former Lake Superior Elementary School into 50 residential units, then approved a related development and cooperation agreement with the project developer.

The TID creation passed on a voice vote after Planning, Economic Development and Port staff and financial adviser Sean Lens of Ehlers presented the project plan and revenue projections. The redevelopment group proposes converting the school to 50 apartments, 23 of which will be rent-restricted under terms in the development agreement.

Why it matters: Councilors and staff said the site likely would not be redeveloped without tax-increment financing. Sean Lens told the council TIF proceeds would fund on-site incentives and nearby infrastructure, and that the district would use any increase in property value above a base value to repay those costs before the increase returns to taxing jurisdictions.

Lens said the parcel’s base (January 1, 2025) taxable value — set after the property’s private sale last year — is roughly three-quarters to nearly $1 million. He said Phase 1 of redevelopment, scheduled to begin construction in 2025, is projected to produce roughly $5.5 million in increment value; a potential second phase could add about $7 million more. Over a theoretical 27-year life, Lens said projected cumulative TID revenues are just under $4.7 million.

Under terms summarized by Lens and city staff, the council would support a pay-as-you-go incentive for Phase 1: roughly $1,018,000 in reimbursements to the developer, repaid from increment revenue as taxes are received (Lens estimated repayment at about $49,000 a year beginning in 2027, subject to actual tax receipts). Lens emphasized that pay-as-you-go payments require taxes to be paid and available before the city remits funds.

Councilor Robert Harrick asked whether the 23 restricted units would be segregated. Developer Ryan Nelson said the restricted units are not designed as a separate wing and “they won't be isolated within the building of the other residents.” Nelson and staff said unit types and exact locations will be selected during final design.

Jason (Planning, Economic Development and Port Director) and Sean Lens said infrastructure projects tied to the TID — street and utility work inside the TID and within a half-mile as allowed by Wisconsin law — would come back to council for individual approvals and possible borrowing in 2030 and 2042 if pursued.

The council then approved a related resolution adopting a development agreement and a cooperation agreement with the Redevelopment Authority of the City of Superior and Lake Superior Apartments LLC; that motion also carried by voice vote.

What’s next: The joint review board for the taxing jurisdictions will meet Jan. 22 to vote on the TID boundaries and plan. Individual incentive payments and infrastructure projects will require later council approvals and documentation from the developer to trigger pay-as-you-go reimbursements.