The City created TID#2 in 1998 with the goal of
furthering economic development through the establishment of a Business Park.
The primary objective was to provide improved industrial parcels for
development with the least expenditure possible at the earliest possible date.
The City anticipated that this Business Park could yield up to 470 employees.
In November of 2000, the City started the first amendment to the Boundary
and Project Plan. The amendment modified the Business Park layout and area. The
Business Park includes parcels held by the City and a private developer. The
City currently holds three lots that range from two (2) to seven (7) acres. The
City has an offer in on one lot and is looking at building a public facility on
another lot. The City would potentially not have any lots available for
development by the end of 2013.
DEFINE THE PROBLEM
After a Tax Incremental District (TID) is created,
the municipality may amend the TID. The area of the TID can be modified to add
property served by TID improvements, or remove developed land from a TID. The
project plan can be amended to include new project costs or different financing
plans. The increment revenue from one TID can also be allocated to help pay
debts of another TID. Finally, the life of a TID can be extended beyond the
statutory maximum (which differs based on the type of TID) if existing tax
increments will not pay project costs in the allowed time.
The amendment request involves territory changes that
will require valuation forms that list and value the parcels and the project
plan will have to be modified. This project plan would include all affected
parts of the project plan, especially the financing and cash flow information.
TID#2 is now a financially successful district. The
City has been the main player in the sale of land in the Park. The private
developer has sold some lots, but still holds over forty (40) acres for sale.
The Economic Development Commission is being asked to evaluate if the City
should purchase more land and add it to TID#2 to continue encouraging
industrial and business development in the community.
BACKGROUND
The City of Lake Mills started reviewing the
creation of a Tax Increment District in 1997 to generate Tax Increment
Financing for use in developing a business park. The City had purchased seventy
seven (77) acres to stimulate industrial growth and experienced low interest in
the undeveloped land. The City ultimately determined that southeastern
Wisconsin had too many developed business parks to stimulate economic activity
with vacant undeveloped land. This led the City to created Tax Increment
Financing District #2 in 1998. The goals and objectives of the City in creating
this TID were to further economic development through the establishment of a
business park. The intent was to
diversify the tax base by encouraging industrial and business development in the
community that would increase jobs and spending capacity and eventually would
spin-off development into the rest of the community.
The discovery and delineation of a wetland, a
business reduction and statute changes arose between the creation of TID#2 and
early 2000 which required the City modify the original Boundary and Project
Plan.
COMPREHENSIVE PLAN
INFORMATION
The City of Lake Mills
Comprehensive Plan (2009) lists in its land use recommendations that the City
should provide sufficient area and appropriate development standards for a
range of residential, commercial, industrial and civic land uses. The Plan states
that nine (9%) percent of the City total area is industrial uses. Most of the
industrial area is in the Lake Mills Business Park. The Comprehensive Plan concludes that
the City will experience one (1%) percent commercial and industrial growth per
five year period and this is based primarily on expectations for the northside
and the Business Park.
Page 74, item 7 states that the City will direct intensive commercial and
industrial uses to locations near existing and planned arterial roads such as
the Interstate Highway 94 corridor, the STH 89 corridor north of Interstate Highway
94, Tyranena Road, and CP Avenue.
Page 100, item 1 states that the City will provide an
efficient system of arterials and major collectors that provides local
industrial and commercial truck traffic with the most direct access possible to
Interstate 94, STH 89 and other highways.
Page 100, item 1 states that much of CP Avenue runs from north and south
through mostly industrial and open areas of the City. However, it does not
provide direct, efficient connections to Interstate 94 to the north or State
Highway 89 to the south. As a result, through-traffic from outside of the City
and truck traffic generated by the City relies almost exclusively on State
Highway 89 or is forced to take less efficient, indirect routes to the east of
the City. To alleviate traffic congestion on Main Street and provide a safe and
efficient alternative for large trucks and through-traffic, the City’s Long
Range Transportation Plan recommends improving and extending CP Avenue by
improving the Intersection at Owen Street to better accommodate trucks, and
extension of CP Avenue to State Highway 89 via Owen Street and Tyranena Road
(See Map #7: Transportation and Community Facilities).
The Economic Development Recommendations Summary
(page 133) states that the City will recruit new business and promote
local entrepreneurship to expand and diversify the local economy.
Page 140, the policies state that the City will provide appropriate sites
for additional commercial and industrial development near Interstate 94 and
other major transportation corridors that maximize the benefit of the City’s location
within the region and minimize the impact of traffic and other externalities on
residential and natural resource areas of the community in accordance with
recommendations of this Plan.
The policies also state that the City will continue to use TIF, State and Federal
grant programs and other economic development tools to provide incentives and
assistance with redevelopment of blighted, abandoned or under-utilized
commercial and industrial property.
ESTABLISHING CONTEXT
After a TID is created,
the City may amend the TID in numerous ways. The physical area of the TID can
be modified to bring property served by district improvements into the TID, or
to remove developed land from a TID and return it to the tax rolls. The project
plan can be amended to include new project costs or different financing plans.
The increment revenue from one TID can also be allocated to help pay off the
debts of another TID. Finally, the life of a TID can be extended beyond the statutory
maximum (which differs based on the type of TID) if existing tax increments will
not pay off project costs in the allowed time. This section details the unique
features of the different amendments, and outlines the required forms and
procedures.
The procedures to adopt
an amendment to a TID are largely similar to those for creating the TID. The
steps described here apply to each type of amendment (territory, project plan,
or allocation). Extensions to the maximum life are slightly different, and
special details for that amendment can be found at the end of this section.
The boundaries of a TID can be expanded as long as three requirements are met.
First, the addition must be contiguous to the TID. Second, the equalized value
limit must be observed. Third, the newly added territory must be served by the
improvements in the district's project plan. Each TID can add territory up to
four times during its life.
DOCUMENTED EVIDENCE
District#2 is an industrial district south of Lake Street and east of CP
Avenue. The financing for TID#2 is bonds guaranteed by the full faith and
credit of the City
TID #2 has an incremental value of $11,666,500. When created, the property within the
District was valued at approximately $11,445,700. Total value today is approximately $23,112,200.
DECISION
The EDC may want to start developing a plan for expansion of TID#2.
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