Madison Plan Commission recommends five tax-increment finance amendments, creation for council approval

The Madison Plan Commission on June 23 unanimously recommended that the Common Council approve amendments to four existing tax incremental financing (TID) project plans and create a new TID for the Voigt Farm area.

Dan Ross, manager with the city’s real estate/finance group, presented one combined update covering TIDs 42, 45, 48 and 53 and the proposed new TID 55. Ross said the changes range from budget reallocations to boundary additions and a development loan for a downtown affordable housing project. “There’s 1 change being proposed in this amendment to add a million 4 to pay for South Park Street utilities,” Ross said of TID 42; he later described cost and boundary changes for the other districts and a proposed $8.5 million funded-project cost for the new TID 55.

The TID amendments and creation matter because they authorize the city to reallocate increment and make certain project expenditures. Ross told the commission the city projects the closure years and expected incremental values for each district under current assumptions: TID 42 (Wingra/South Park) projected to close in 2028 with an estimated incremental value at closure of about $85 million; TID 45 (Capitol Square West/John Nolan Drive area) projected to close in 2030 with an estimated incremental value of roughly $178 million; TID 48 (Regent Street corridor) projected to close in 2028 with an estimated closure value of about $225 million after adding roughly $2 million in capital costs for bike-path, crossing and lighting work; TID 53 (East Wilson / inclusion of 501 E. Washington parcel) projected to close in 2033 with an estimated incremental value at closure of about $156 million and a proposed $15.3 million TIF-funded project cost tied to the 501 East Washington development loan; and proposed new TID 55 (Voigt Farm/Milwaukee Street area) with a $8.5 million proposed funded project cost to support development loans, targeted lot acquisitions (lots 6, 9, 10 and 13) and administrative costs, with a projected close in 2035–2036 and an estimated closure incremental value of about $110 million.

Ross said the city will submit required notices to the Department of Revenue and that these changes assume no further amendments, changes in tax rate or other adjustments. Commission members asked clarifying questions about the TIDs’ affordable-housing extension policy; Ross said the additional one-year extension for affordable housing is expected to be standard operating procedure going forward because TID extensions are commonly used to support affordable housing funds.

Ald. Field praised the staff materials’ color-coded presentation, saying it made the proposed changes easier to follow. Commissioner Solheim asked whether the one-year affordable-housing extension would apply across districts; Ross replied that it would likely be standard practice as districts wind down.

The commission voted on each TID item separately. Commissioner Solheim moved each recommendation and Ald. Field seconded; the commission recorded each item as recommended to the Common Council. The Plan Commission’s recommendation is advisory; the council will take the final legislative action.

The city clerk confirmed that public notice and the statutory findings required by state law (including items such as whether the proposed improvements will enhance property values and whether the city remains under the statutory 12% equalized value cap) are part of the record for the council’s action.

What’s next: Each amended or newly created TID will be forwarded with the commission’s recommendation to the Common Council for final approval and to the Finance Committee for its review and any budget actions.