Committee dedicates about $1.8 million from TID 14 to affordable housing, creates two new TIDs

The Finance & Personnel Committee on July 2 approved a series of tax-increment district (TID) actions intended to free funds for housing and to make room for new redevelopment districts.

Director Train told the committee the "affordable housing extension" terminology is state-level; the resolution would dedicate the final year’s increment from TID 14—projected at about $1,800,000—to the city’s affordable housing revolving loan fund and related housing-incentive and rehabilitation programs. She said at least 75% of the allocation must be used for affordable housing, with the remainder available for housing generally, and that the resolution would not extend the life of the TID in this case.

Train also presented the required TID-termination resolution the Department of Revenue requires when a TID closes; she said the council must pass that resolution by Aug. 24 to record the TID’s full termination and to reduce the city’s equalized-value concentration below the state 12% threshold, which in turn allows the city to create new TIDs or add properties to existing ones.

The committee voted to adopt the affordable-housing resolution and the TID-14 termination language.

Separately, the committee approved creation of Tax Incremental District 22 to support the West Channel mixed-use redevelopment at 455 Park Plaza Drive and a neighboring parcel on Barron Island. Train said the West Channel project contemplates about 110 residential units and will likely need TIF assistance. The committee passed the TID-22 resolution unanimously.

On a related vote to create TID 24, Council member Janssen questioned whether the specific parcel merited inclusion and noted the parcel did not appear blighted; Train said parks and public infrastructure are commonly included in TIDs and that a neighboring parcel (the Black River Beach Neighborhood Center area) was valued at 0% for tax-base calculations, making its inclusion straightforward. Janssen voted against the TID-24 motion; the resolution passed 4–1.

Together, the measures position the city to redirect TID resources toward affordable housing and to pursue redevelopment projects that officials said may require TIF assistance. The committee moved the items forward for final council action where required.