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Plan commission backs recommendation to amend TID No. 8 project plan
Summary
The Plan Commission recommended that the Common Council consider an amendment to the project plan for Tax Incremental District No. 8 (Verona Technology Park) to increase planned project costs to support infrastructure and potential development incentives tied to a possible Arrowhead Pharmaceuticals expansion.
Todd Taves, the city's financial adviser with Ehlers, told the Plan Commission that the proposed amendment to the Tax Incremental District No. 8 project plan would raise the district's listed costs and accommodate potential infrastructure and incentive needs associated with future development.
Taves said the current project plan lists about $18,400,000 in costs and that the amendment would raise that total to $46,100,000. "This amendment would raise that total to 46,100,000," he said. He also said a potential expansion by Arrowhead Pharmaceuticals could add roughly $90,000,000 in assessed property value to the district.
The proposal would not change the district's boundaries, Taves said; rather, it would increase the project plan's funding envelope for items such as a water tower and pump station, two intersection improvements, and road and utility extensions within the technology park. He added that some infrastructure would not exclusively benefit the TID area and that staff had netted out approximately $3,000,000 in costs for an adjusted total.
Taves presented cash‑flow projections showing estimated collections for the 2026 budget year of about $2.8 million and, with the potential expansion, a ramp to roughly $4.4 million. He said the district could generate approximately $53 million over a 20‑year life if it remained open that long, and that the district might be in a position to close as early as 2036 under certain scenarios.
Commissioners asked whether the city would pay incentives only after a signed development agreement; Taves confirmed that infrastructure identified by staff would proceed independently, while incentives would only be approved after negotiation and a signed development agreement. Commissioner Henker pressed whether incentives would be paid only if a developer proceeded; Taves confirmed the incentive portion depends on a development agreement but said infrastructure could be advanced even if no further development occurs.
Commissioner Powers moved and Alder Swanson seconded a motion recommending the amendment to the Common Council. The commission adopted the recommendation by voice vote.
