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Preliminary TID 10 feasibility: consultant says district is feasible with PAYGO structure, estimated $9M revenue over 20 years
Summary
A consultant told council the proposed Tax Increment District (TID 10) keeps the city's TID cap well under 12% (projected ~9.36% vs. current ~8.35%). Development scenarios ($28M in development value) could generate about $9M of increment over 20 years; staff recommended a PAYGO approach and careful deal structuring to manage risk.
A consulting presentation laid out the preliminary feasibility framework for creating Tax Increment District 10. The consultant explained the TID mechanics, statutory constraints and the proposed boundary. He said the proposed district would leave Platteville below the 12% statutory cap (projected at about 9.36% with the new TID, up from roughly 8.35% currently).
Using conservative development assumptions, the consultant said about $28 million of development value could translate to roughly $9 million of TID revenue over a 20‑year horizon, and that the city could reasonably finance about $5 million of projects under a PAYGO reimbursement approach. He emphasized deal structure and risk allocation: “We would highly recommend seeking this method [PAYGO] whenever you can, so that you guys share the risk with developers,” the consultant said. Council asked for clarifications on phasing, which projects are fundable near‑term, and next steps (joint review board, public hearing, council creation vote). Staff and consultant said they would schedule the joint review board and public hearings and return with updated cash‑flow work up; no creation vote was taken at this informational meeting.
