Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tax Incremental Districts topic
No spam. Unsubscribe anytime.
Two Rivers council approves early termination of TID 13 and TID 16 to return increment to tax rolls
Summary
The Two Rivers City Council voted to terminate Tax Incremental Districts 13 and 16, returning incremental tax revenue to the general tax rolls beginning Jan. 1, 2027; staff said the move will shift modest annual revenue into the general fund and to other taxing jurisdictions.
The Two Rivers City Council voted on March 17 to approve resolutions terminating Tax Incremental Districts (TID) 13 and 16, returning the incremental tax value of those districts to the regular tax rolls beginning Jan. 1, 2027.
City staff told the council that TID 13, created in February 2020 to support a proposed Culver’s restaurant that is not moving forward, has no active redevelopment in the pipeline and therefore should be closed. Staff said the city must notify the Wisconsin Department of Revenue by April 15 to effect the termination and that the reallocation of increment will begin on Jan. 1, 2027.
The staff presentation estimated net distributions from closing TID 13 after offsets would provide roughly $34,000 to the city general fund, about $25,000 to Manitowoc County, approximately $50,000 to the Two Rivers School District and about $4,000 to Lakeshore Technical College. Staff also estimated the ongoing increment to the city’s general fund would be about $4,100 per year beginning in 2027.
On TID 16—adjacent to the former Hamilton property—staff said the district likewise has no active project and recommended early termination now so the city could consider a possible future, larger district geared to Hamilton-area redevelopment when timing is appropriate.
A council member asked how negative balances in a TID occur; staff explained that annual administrative fees and audit-related costs can cause a small negative balance that is offset when positive balances from other districts are combined. A presenter described the process and statutory checks for creating a TID under state law, including Plan Commission review, Board of Review approval by representatives of the affected taxing jurisdictions and the Department of Revenue’s review for statutory compliance.
Both resolutions passed on roll-call votes. For TID 13 the roll call recorded: Doug Brand—Aye; Scott Sachse—Aye; Darla LeClair—Aye; Mark Bittner—Aye; Shannon Derby—Aye; Bill LeClair—Aye. For TID 16 the roll call recorded: Kyle LeClair—Aye; Mark Bittner—Aye; Shannon Derby—Aye; Bill LeClair—Aye; Doug Brand—Aye. The motions carried.
Council and staff emphasized that closing these districts is administrative and is intended to return incremental revenues to general taxing jurisdictions rather than representing a policy shift away from using TIF in the future; staff said new districts may be created later when projects are ready. The council then moved on to other agenda items.
