City Council Backs Creating TID #9

The city took its final action toward the creation of its ninth tax increment district (TID). It’s now up to the Joint Review Board to give the final stamp of approval.

The Sturgeon Bay Common Council approved a resolution Tuesday that creates the boundaries for the industrial TID – between South Neenah Avenue and Shiloh Road – and plans for the area. One of those is the construction of a 50,000-square-foot building and space for tenants in the Industrial Park on a 17.8-acre parcel owned by the city. The council voted in February to approve a memorandum of understanding between the city and Howard Immel, Inc. to design and construct the building. 

Under that agreement, the city was expected to provide the vacant former Zak property along South Neenah Avenue and some level of financial incentives for construction. 

The project plan for TID #9 put together by R.W. Baird, the city’s financial consultant, lists $1.1 million in developer incentives for the multi-tenant industrial building, which is anticipated to begin next spring. Financial projections for the district show $4,332,894 raised in property-tax increments over the 20-year life of the district. 

The TID is scheduled to be considered for final approval Oct. 12 by the Joint Review Board, which is made up of representatives from the district’s various taxing entities, such as the Sturgeon Bay School District and County of Door.

The district would have approximately 40.2 acres total, including an adjacent, 17.45-acre parcel that is privately owned with a dwelling, storage building and farmland to the north of the vacant city-owned parcel, as well as a 4.41-acre vacant parcel owned by Therma-Tron-X across South Neenah Avenue. 

Based on the three parcels now valued for property-tax purposes at $140,200, any new increment above that, said Adam Ruechel of R.W. Baird, would go into the TID and fund the projects.

Property taxes generated from development (i.e., tax-increment revenue) in a TID, once it is created, go directly to infrastructure improvements rather than being split among the various taxing entities where a TID is located.

Upon Joint Review Board approval, TID #9’s creation would be effective next year on Jan. 1.

Related Organizations