Tax incremental financing district #4 consists of about 765 acres in the southwest corner of the village. Trustees plan to extend municipal sewer and water to the area to spur commercial and/or industrial development.
But the name of the developer, details of the project, and even the boundaries of the expansion of TIF No. 4 were not disclosed at the meeting held Monday. Village administrator Tom Christensen and village president Bob Bradley met with the developer earlier this week. Christensen told the village board that the developer plans would like to build just outside of the TIF District, but would like to be included in the district.
“We believe that changing the TIF boundaries…. would result in some pretty significant development,” Christensen said.
A TIF district is a development tool municipalities can use to attract business. The way it works is that a financing district is created and a base value of that district is established by the taxing jurisdictions. The increased value of the property is still charged at the base rate, but the district uses the increased tax revenue to pay for the infrastructure projects.
This means those taxing entities (Village, County, Racine Unified and Gateway) still receive the same amount of tax revenue before the district was created, but the increased tax revenue pays for the infrastructure costs over a 20-year period.
The resolution also includes the execution of an engagement agreement with the village’s financial consultant Ehler’s & Associates, which will look at the viability and sustainability of the project, and change the map.
But village trustee Ed Willing voted against the project saying that he didn’t have enough information about what the project entailed.