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Port Washington
City poised to create subdivision TIF district PDF Print E-mail
Community
Written by KRISTYN HALBIG ZIEHM   
Wednesday, 15 July 2015 19:37

Plan that goes to public hearing this week calls for $6 million in public upgrades for Cedar Vineyard project

    The City of Port Washington is poised to create a tax-incremental financing district for the proposed Cedar Vineyard development on the city’s southeast side, as well as improvements to the industrial park.

    The public can weigh in on the plan during a public hearing before the Plan Commission at 6:30 p.m. Thursday, July 16, at City Hall.

    In a TIF district, increases in property taxes generated by development within the district are used to pay for a variety of improvements, primarily infrastructure costs.

    The proposed district would include 409 acres — 239 acres along Lake Michigan, 55 acres in the industrial park, 104 acres west of the industrial park and 11 acres of other properties — most zoned for agricultural
uses, according to the city’s draft TIF plan.

    The current value of the district is $8.3 million, the plan states, including $1.9 million in land.

    But at the end of 20 years — the maximum life of the TIF district — the value of the district is estimated to be $71.4 million, the plan states.

    The increased value of the land over that time is expected to generate more than $16 million in property taxes, according to the plan.

     “Based on conservative estimates of the value and timing of proposed development ... (the TIF district) will generate more than enough revenue to pay for the project costs within the allowable time limit,” the
plan states. “Therefore, the proposed district is economically feasible.”

    The Cedar Vineyard development — the first phase of development in the district — would encompass 58 acres of residential lots, 68 acres for the vineyard and winery and 101 acres for a nature preserve.

    The public improvements needed for this development include sanitary sewer collection and water mains, road improvements, storm sewers, the city’s share of the cost to acquire a nature park in the subdivision
and the construction of trails in the park, according to the plan.

    The first phase of the plan would also include the development of six undeveloped or underdeveloped parcels in the industrial park, the plan states.

    The city intends to buy the Ozaukee Sports Center property and use two acres of the land for stormwater management and a road right of way, the plan states.

    About 4.8 acres would be sold to Construction Forms to expand its facility, and the Sports Center building and one acre of the property would be sold for another use, according to the plan.

    This portion of the plan is expected to increase the property value by $60.5 million, the plan states.

    The second phase would encompass almost 105 acres in the industrial park, roughly half of which would be used for light industrial development, the plan states. The remainder of the land would be road right of way, wetlands and other undevelopable property.

    This development would increase the district value by $1.7 million and result in $9.3 million in building improvements, according to the plan.

    The cost of infrastructure to serve the Cedar Vineyard development is estimated at $6 million, while the work needed for the industrial park lands would cost $950,000.

    Another $100,000 is budgeted for improvements to support the second phase of the plan, the plan states.

    No cash incentives will be provided to a property owner without a signed development agreement, according to the plan. The plan shows an incentive for the industrial park portion of the development.

    The project expenditures would be capped at $7.1 million, the plan states.

    To finance this, the city is expected to issue $8 million in bonds, according to the plan.

    The plan estimates that the Cedar Vineyard development would be completed in seven years — two years longer than a residential market analysis for the subdivision.

    The Ozaukee Sports Center redevelopment is expected to occur in 2017, the plan states, with development in the remainder of the industrial park happening over 10 years. The land west of the industrial park is expected to be developed after that occurs.Daily Press

    The plan states that the district should maintain a positive cash balance throughout its life and the bonds should be paid off by the 20th year.

    If approved, this would be Port Washington’s third TIF district. The first was created in 1991 and paid off in 2007, and the second, which encompasses much of downtown, was created in 2010.



 
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