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Sturgeon Bay’s TID #8 Finalized by Joint Review Board

A resolution to create Sturgeon Bay’s eighth Tax Incremental District (TID) near the intersection of 3rd Avenue and Jefferson Street received final approval April 13 by the city’s Joint Review Board, which includes representatives from the various taxing districts where the district is located.

TID #8 is called for in a development agreement that Shirley Weese Young has with the city to build a music venue and school called Muse in the vacant lot where the Moeller’s Garage car dealership once stood.

The three parcels in the TID include that lot and the one to the east that Young also purchased, where the former PIP Printing building is located, as well as the lot across the street with the former Door County Ace Hardware building.

Based on financial data provided to the city by Adam Ruechel, a consultant with R.W. Baird, TID #8 will generate an estimated $1.9 million in property-tax increments: tax dollars above what’s currently generated within the same area. The city intends to use the additional tax revenue primarily to pay the district’s debt service and project-development incentives.

The development agreement that the city has with Young calls for providing her with $900,000 in financial assistance in 15 annual payments. She has agreed to build a development with a minimum assessed value of $4 million upon completion.

Plans for the two-story building also include 11 studio apartments on the second floor and public restrooms along 3rd Avenue.

Community development director Marty Olejniczak said creating TID #8 was the final step needed to proceed with the Muse project, whose building design and site plan received approval April 10 from the Aesthetic Design and Site Plan Review Board.

Construction is set to begin in June, with substantial completion by Jan. 1, 2025.

Olejniczak said Young also intends to tear down the buildings on the parcel to the east of where the Muse buildings will be constructed, which would be the second phase of developing the north side of Jefferson Street between 3rd and 4th Avenue, but she has not indicated exactly what that development will encompass.

Olejniczak said public areas in a half-mile radius from the TID could use revenue from the district to make improvements, such as repairs to the parking lot between 1st and 2nd Avenues and Kentucky and Louisiana Streets.

Joint Review Board member Bill Chaudoir suggested also using TID money for a public expenditure to improve the traffic flow at the intersection of 3rd Avenue and Jefferson Street.

“Particularly when Bay Ship is letting out, of course, traffic is backed up extensively,” he said. “It seems to me it would help if there was a left-hand turn from 3rd [Avenue for the traffic] facing south. You’d have a left-hand turn lane there, and then the right lane being straight, or turn right.”

Olejniczak said Chaudoir’s suggestion would be forwarded to the city engineer.

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