Council approves TIF‑14 developer agreement with PKH Holdings LLC including $250,000 incentive and $1 sale of 60 acres

The Common Council on Oct. 20 approved a developer’s agreement between the City of West Bend and PKH Holdings LLC connected to Tax Increment Financing district number 14.

John (last name not specified) presented the agreement and said it is a relatively straightforward package of incentives and protections intended to support a manufacturing or industrial development in the Milwaukee manufacturing development area of the city. Key elements discussed included the sale of roughly 60 acres to the developer for a nominal $1 (a commonly used municipal incentive tool), a $250,000 infrastructure/site‑preparation grant and a minimum property valuation guarantee.

Under the grant structure cited by staff, the $250,000 would be disbursed to defray infrastructure and site‑preparation costs. The agreement contemplates two development phases; if the developer builds in two phases they would receive approximately 77% of the grant at completion of phase one and the remaining 23% upon completion of phase two. If both phases are completed together, the grant would be applied upon completion.

A financial guarantee in the agreement requires the developer to assure a minimum assessed value of $15,000,000 for the initial phase; if assessed value falls below that threshold the developer must make up the difference. Staff described the $1 sale and the grant as standard economic‑development tools municipalities commonly use to entice investment.

Council members asked for clarifications about the dollar sale and grant timing; staff responded that such deals are a common incentive tool and that other projects had received discounted land sales. The council approved the agreement by voice vote.