Sheboygan council creates TID No. 26 to support Volrath expansion; council approves 8-1-1

The City of Sheboygan Common Council adopted a resolution creating Tax Increment District No. 26 to support a mixed-use redevelopment area that includes the Volrath company expansion and the Old World Creamery site.

Greg Johnson, presenting the project plan, described TID No. 26 as a mixed-use district of approximately 62 acres with a maximum life of 20 years. He summarized the project-plan costs as totaling about $3 million, which include a $1.6 million pay-as-you-go incentive to Volrath, north 23rd Street improvements, sidewalk work and sanitary sewer improvements. Johnson told the council initial incremental value from the Volrath expansion is projected at roughly $8 million.

Council members asked about early-year cash flow. One member cited the 2026'27 period would show a shortfall of about $824,000 before increment begins to be collected in 2028. Staff said the city can advance funds or finance the projects and recover eligible project costs as increment is generated; they also said some projects listed in the plan would occur regardless of the TID and benefit the broader community. Staff emphasized that pay-as-you-go incentives would not be paid if the required increment does not materialize.

The resolution to create TID No. 26 passed on a roll-call vote (recorded as eight ayes, one abstention). The resolution now moves to the joint review board for final consideration on a scheduled future date.

What it funds: the plan lists development incentives, infrastructure and administrative costs; staff said the district is projected to remain open to its maximum life and that collections for final-year increment are projected through 2047.

Next steps: with council approval the TID creation proceeds to the joint review board and staff will finalize financing details and any necessary follow-up on early-year cash-flow options.