The Village of Sturtevant is throwing a party to celebrate the closing of the village’s highly successful tax incremental financing district that could mean lower tax rates for nearly every property owner in eastern Racine County.
Scheduled for Sept. 27 at Fountain Banquet Hall, 8505 Durand Avenue, the celebration will include check presentations to representatives from community taxing bodies like the Racine Unified School District, Gateway Technical College, and Racine County.
“This is really a great thing for everyone,” Village President Steve Jansen. “Property tax decreases in the village will go down some 20 percent or more, and we expect this closure will have far-reaching positive implications for everyone else, too. This is a win-win-win all the way around.”
TIF districts are specific growth tools available to municipalities that use the property taxes from commercial and industrial tenants inside the district to pay back the loans used for infrastructure like water and sewer lines and roads. Once those loans are paid in full, the district closes and the property taxes there are added to the general tax roll no different than other property owners.
“Tax Increment District # 3 (TID) was created in the Village of Sturtevant on September 27, 1994 as a source to facilitate economic development in the Renaissance Business Park. The value of property of the district when it was created was $9 million dollars. The district is closing six years early and has grown by $222 million in property value, making it one of the most successful TID’s in the state of Wisconsin,” the invitation/announcement reads.
The Sturtevant TIF district primarily encompasses the Renaissance Business Park, and, now that the TIF is closing, Sturtevant will receive approximately $1.3 million in a lump payment. Trustees are working on a plan for that money that could include budget increases for roads, parks and additional police officers. Some of the money was used to buy parcels that front Washington Avenue for future development.
RUSD, Gateway, and the county will also receive lump sum payments because of the TIF closure; exact amounts won’t be known until Baker & Tilly complete an audit of both the district and the village in general, but a ballpark figure of $500,000 for Racine Unified, for example, has been discussed.
The celebration is scheduled from 6 to 8 p.m. and is an invite-only event.