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The Village of Caledonia passed the creation of a 764-acre tax incremental financing district and authorized the implementation of the projects on Monday, said Mark Janiuk, the village administrator.

The projects call for the extension of sewer and water out to Interstate 94. Caledonia and Mount Pleasant are in discussions over how much Caledonia owes Mount Pleasant for the sewer connection fee.

“When those costs are finalized, they will be a cost of the TID and will not impact property owners,” Janiuk said.

The resolution includes hiring consultants to put together a project plan, which carries a price tag of $30,000. However, those costs would be paid for through the TIF district.

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 new tax incremental financing district will consist 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.

Laura Million from Racine County Economic Development Corporation agreed, told officials in May that 17 companies are currently shopping for a new home with easy access to I-94 and municipal water and sewer services.

“Most will decide within the next six to nine months so without a development-ready lot, they won’t consider Caledonia,” she explained. “You are looking a little further down the road, but you should be aware of what’s out there.”

Sewer and water extensions will feed the area roughly bordered by Highway V to the east, I-94 to the west, Highway K to the north and the border between Caledonia and Mount Pleasant to the south. The original district proposal included a West Franksville phase: the area bordered by Highway V to the west, Highway K to the north, Highway H to the east and the border between Caledonia and Mount Pleasant to the south.


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