ECDC endorses using final TID 14 dollars for affordable housing, votes to terminate TID 14 and approves RFP for Northside library site

The La Crosse Economic and Community Development Commission on June 24 reviewed and advanced several policy and land‑use actions related to Tax Increment District (TID) 14 and surplus city property.

Affordable housing extension/allocation: city staff explained the state’s affordable housing extension mechanism that allows a municipality to dedicate up to two years of a TID’s final increment for housing, with at least 75% of those dollars used for affordable housing (defined in state rules as housing costing no more than 30% of household income). Staff said the resolution before ECDC would set aside the last year of TID 14 to recapitalize the affordable housing revolving loan fund, housing incentive fund and the housing rehabilitation program, and that those dollars can be used anywhere within municipal boundaries rather than being restricted to the original TID area.

Commissioner questions focused on who decides how funds are allocated (city), whether the funds are used only for projects that need the dollars ‘‘but for’’ (staff said the state does not require strict but‑for proof in the housing extension) and whether the council or ECDC would later set specific policy or earmarks for the funds. Staff said a subsequent policy document and programmatic recommendations will follow and that the item will proceed to the Finance/Personnel and then City Council for final action. ECDC moved to forward the recommended resolution to subsequent bodies; the motion, made by Council Member Goggin and seconded by Council President Dickinson, passed.

Termination of TID 14: staff noted the Department of Revenue requires that the council adopt a TID termination resolution; ECDC moved and passed a motion to terminate TID 14 (a procedural step that does not change the earlier allocation recommendation going to council).

RFP for the former North Community Library: staff presented a draft RFP for the surplus property at 1552 Kane Street modeled on the Southside library process; ECDC voted to approve the RFP draft for public release. Commissioner Markerson recused herself for the North Library RFP discussion and vote as required by conflict‑of‑interest guidance.

Why it matters: the recommended housing allocation would provide a locally controlled pool of TID dollars to support affordable housing initiatives and programs across the city, increase capital for revolving loan and rehab programs, and give the city another tool for filling funding gaps in housing projects. Termination of TID 14 fulfills a Department of Revenue requirement and enables the timing for the housing allocation to be formalized.

Next steps: the allocation recommendation will proceed to the Finance/Personnel committee and then to City Council for final approval; staff said they will craft a policy framework and potential earmarks for how the funds would be distributed.