The Village of Bellevue is proposing to create its very first Tax Incremental Finance District in the GV/172 area.
In this video update, Community Development Director Andrew Vissers gives the public some background information on the proposed TID and the reasons why the Village is exploring the creation of this district to help support development.
Tax Incremental Finance Districts are one of the few economic development tools that the state of Wisconsin allows for municipalities to use in order to promote tax base expansion through our own initiative and effort. They have been around in Wisconsin since 1976 and there are approximately 1,000 active TIF Districts in the state currently. Since incorporation, Bellevue has never established one. TIF Districts are regulated by State Statutes and must be approved by all taxing entities that have jurisdiction where the proposed district is located.
How a TIF District works is that a boundary is created around an area that is anticipated to develop or redevelop. At that time, the base value of the district is frozen. All tax revenue currently generated still flows to each taxing entity through the life of the TIF District. Typically a municipality then installs infrastructure, amenities, or makes other expenditures to encourage and promote development within the district boundary. As new development occurs, new tax revenue is generated. This is called the new tax value increment. This new increment stays within the district and is used to pay off the upfront expenditures made by the municipality. Once all costs are repaid, the TIF District can be retired. At that time, all entities receive the new share of the tax revenue.
The area where this proposed TIF District is located in Bellevue has long been underutilized and is ripe for new development. It is just part of over 500 acres of vacant land that will one day be the Villages primary commercial area. A number of projects have been proposed in the past, but mainly have not materialized due to the significant upfront costs of infrastructure just to get the sites shovel ready.
The Village is proposing to utilize TIF to be a partner in encouraging development in the area. Costco is anticipated to be a regional draw and is likely going to generate additional development around it.
The Village is proposing in the first phase of the TIF Plan to install public infrastructure that will not only benefit the Costco development and allow it to occur, but also open up approximately 32 acres of additional land that can be developed into commercial, retail, office, and residential mixed uses.
This infrastructure includes new public roadways, utilities, a roundabout, and stormwater management facilities. The first phase expenditures are likely to be the neighborhood of approximately $4.85 million dollars. Additional phases are anticipated in the future and are shown and detailed in the proposed Project Plan but will likely need a project to drive installation before the Village Board would consider borrowing additional funds for those phases during the expenditure period of the TIF District life.
One point to be made is that the Village is not giving Costco a lump sum payment to come to our community. The expenditures are all public infrastructure. In addition, the Village will sign developers agreements with developers and land owners in the TIF area to ensure we minimize the risk to Village taxpayers as much as possible. Approving the TIF District boundary and plan does not tie the Village to borrowing the money for the expenditures, but does allow the Village to utilize this economic development tool in order to foster the development of this area.
Along with the reconstruction of County Highway GV, store construction and internal infrastructure work is scheduled to begin in May of 2013. All components of construction should be completed by October 2013, weather permitting, with a Grand Opening of the store in late October 2013.
If you are interested in reviewing the project plan for the proposed TIF District, you can find a copy on our Village website at www.villageofbellevue.org, or if you have any questions feel free to contact Andrew Vissers, Community Development Director at (920) 468-5225. As always stay tuned to the Village website for additional updates and other stories.