Wausau committee votes to extend TID 7 for one year to support affordable housing
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Summary
After debate about alternative funding sources, the committee voted to keep Tax Increment District 7 open for one year with an affordable-housing designation. Staff said the extension would leave roughly $1.9 million for housing and could permit a one-time transfer of $355,158 to operations if approved by council.
WAUSAU, Wis. — The Wausau Economic Development Committee voted Dec. 2 to extend Tax Increment District (TID) 7 for one year and designate it for affordable housing, sending the recommendation on to the Finance Committee and Common Council.
City economic development staff described three options for the soon-to-close TID 7: close the district (which would return some operating funds to the city), close with a defined allocation for affordable housing, or extend the TID for one year with at least 75% of the increment dedicated to affordable housing projects and the remainder available for operations. Patrick Gatterman, speaking for staff, told the committee that 2026 revenue for TID 7 is roughly $2.1 million, leaving an estimated $1.9 million in increment for housing if extended; closing the district would make about $69,000 available to the operating budget in the near term. Staff also described a one-time transfer option of $355,158 for operating needs under the extension scenario.
Committee members debated whether extension was the right approach or whether the city should rely on other grant and state funding sources. Alder Killian said she would not support the extension and asked staff to compile a list of possible state and federal funding sources. "I am not in support of the TID extension," she said. Alders Randy Pfeifferich and Alderman Neal and others argued that keeping the TID open provides a faster, stackable piece of a capital funding plan.
A motion by Alder Henke to keep TID 7 open for affordable housing for one year (option 3) was seconded and the committee approved the motion.
Staff noted that, per state statute, a resolution describing how the funds will be used must be adopted in early January and that funds could be directed toward new construction, rehabilitation of existing housing, and other broadly defined affordable-housing activities to allow flexibility.
The committee's recommendation will go to the Finance Committee next week and then to Common Council for final action.