Thursday the TIF Review Committee is meeting and they will be hearing a presentation from staff about how TIF could be used in South Madison to solve challenges with the annexation of the Town of Madison.I’m going to miss the meeting, I have other obligations at that time, but here’s a sneak preview of the materials. I’m guessing this isn’t going to fly, but is a way to get the conversation started about what could happen here. The council discussed a bit about what would be happening with the East Wash TID during the budget and Marsha Rummel and Patrick Heck (see amendment 6) have plans for a committee to determine how money should be spent in that TID. I couldn’t find any publicly available details on this plan.
CHALLENGES
- The Final Attachment of the Town of Madison occurs in 2022. It will require significant infrastructure improvements (Streets, Storm Water, Traffic Engineering, etc.)that are currently being quantified. (See blog post for details)
- There is a high risk of housing displacement in the attached Town property (Rising Property Taxes, City Building Code Enforcement, Gentrification, Large Low-Moderate Income Community).
- Revitalization efforts in TID #38 (Badger Ann Park –TID 38 Map, TID 38 Map with Aerial, TID 38 Project Plan) and TID #40 (North Side – Info not available) that utilized borrowing, did not succeed as planned. G.O. borrowing was hampered by poor value growth. TID#27 (West Broadway – Info not available) took 21 years to recover its borrowing.
- Donor TIDs were required to recover cost in both TIDs #38 (Badger Ann Park – TID 38 Map, TID 38 Map with Aerial, TID 38 Project Plan) and #40 (North Side – Info not available).
SOLUTION
Utilize healthy TIDs that are on the verge of repaying their existing debt obligations to fund expected costs.
- Donate excess tax increment from healthy TIDs into South Madison TIDs in lieu of borrowing
- When growth picks up pace, TID may begin to borrow its own funds
PHASE ONE
Phase I of this plan is implemented from 2020- 2024 donating excess tax increments from TID 39 (Stoughton Road – TID 39 Map, TID 39 Map with Aerial, TID 39 Project Plan – Amended in 2009) to TID #42 (Wingra – TID 42 Map, TID 42 Map with Aerial, TID 42 Project Plan.)
PHASE TWO
Assuming no additional spending in TIDs 36 (East Wash/Public Market – TID 36 Map, TID 36 Map with Aerial, TID 36 Project Plan), 37 (Union Corners – TID 37 Map, TID 37 Map with Aerial, TID 37 Project Plan), and 42 (Wingra – TID 42 Map, TID 42 Map with Aerial, TID 42 Project Plan), Phase II Recipient TID would donate excess tax increment to a new South Madison TID (red boundary) over the period of 2023-28.
PROPOSED TIMELINE
2020 – Amend TID 39 (Stoughton Road – TID 39 Map, TID 39 Map with Aerial, TID 39 Project Plan – Amended in 2009) & 42 (Wingra – TID 42 Map, TID 42 Map with Aerial, TID 42 Project Plan.) Project Plans, Implement Donor-Recipient plan Finalize South
- Madison capital costs and revitalization programs Close
- TID #38 (Badger-Ann-Park – TID 38 Map, TID 38 Map with Aerial, TID 38 Project Plan)
2022 – Final Attachment of Town of Madison
2023 – Create South Madison TID
- Implement Donor-Recipient plan for TIDs 36 (E Wash), 37 (Union Corners) and 42 (Wingra) and South Madison TID
2023 (and Beyond)
- Monitor Donor TIDs and South Madison TID performance
- Leverage other funds—Opportunity Zone, NMTC, AHI, LIHTC, PACE, etc.
WANT MORE ON TIF?
My readers are geeks and want the details! So here’s the 2019 Annual TIF report to the Joint Review Board that was given in August – 18 attachments for your reading pleasure.
Also here’s more information from the City’s website
City TIF Policy (Adopted on February 25, 2014)
TIF OVERVIEW (All documents are in PDF format) – 2019
