TIF given the green light

$8 million investment estimated to bring in $41.2 million to village
By 
CONNOR CARYNSKI
Ozaukee Press Staff

The tax increment financing district that will fund infrastructure for the Village of Saukville’s next major development has been approved.

Throughout the expected 20-year life of the TIF district, it will reimburse Neumann Developments the $8 million the developer will spend on building infrastructure for the Emerald Ridge residential and industrial development.

Following approval by the Plan Commission and Village Board, the Joint Review Board officially approved creation of the TIF district on March 17.

Approval of the district creates a funding mechanism for the development’s infrastructure as the village and Neumann Developments edge closer to approving the entirety of the project.

The development, to be located east of Hope Living Lutheran Church on farmland, will be bisected by Highway 33 with the residential portion south of the road and the industrial portion on the north side.

On the southern portion will be eight multifamily buildings containing 108 units and 63 single-family homes, and on the northern portion will be large industrial lots suitable for large-scale industrial or manufacturing operations.

The TIF district will collect tax dollars generated by development and use them to reimburse Neumann for the upfront cost of building roads and installing utilities throughout the site.

Senior municipal financial adviser for Ehlers Inc., Greg Johnson, said the arrangement is often referred to as a “pay as you go” TIF district.

Johnson said the arrangement does not require the village to borrow money and puts no risk on the village to reimburse Neumann. If the property is never developed and no tax dollars are generated in the district, the village will not be required to pay for the infrastructure.

“If the tax increment generated by the new development is not sufficient to repay the developer… the village is under no responsibility to make up that shortfall,” he said.

For the $8 million in tax dollars the village will dedicate to the project, Johnson said, Ehlers expects the development will add $41.2 million to the tax rolls from the residential portion alone. The district is projected to pay off the infrastructure costs in 20 years but Johnson noted it may close earlier depending on industrial developments.

With only one single-family building permit issued in the village between 2016 and 2021, Johnson said the development will address a housing need in the community.

“There certainly has been some pent-up demand for housing in the village as well as opportunities for additional investment in development,” he said.

 

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Wisconsin’s largest paid circulation community weekly newspaper. Serving Port Washington, Saukville, Grafton, Fredonia, Belgium, as well as Ozaukee County government. Locally owned and printed in Port Washington, Wisconsin.

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