Fiscal Note
TIF Law requires that, when a municipality recovers all costs incurred within a district, the district must be dissolved and any excess increment apportioned among the overlying tax jurisdictions. When TIF District #28 is closed at the end of 2008 and a final audit is completed, staff estimates that approximately $5,000,000 of excess increment will be apportioned among the overlying taxing jurisdictions. Approximately $1,600,000 of that amount will be deposited in the City's General Fund in 2008, with the remaining $3,400,000 distributed between the Madison Metropolitan School District, Dane County and MATC.
Title
Dissolving Tax Incremental District (TID) #28 (Bassett Neighborhood).
Body
PREAMBLE
On September 19, 2000, the Common Council of the City of Madison adopted Resolution No. 56,644 creating Tax Incremental District (TID)#28 (Bassett Neighborhood) at an area generally bounded by John Nolen Drive to the east, West Dayton Street to the West, Proudfit Street to the south and Carroll Street to the north (map attached). A project plan was prepared, identifying various types of public improvements and private development that could be undertaken in the TID. TID #28 was created as a blighted area TID with a statutory life of 27 years. The City did undertake public improvement projects including non-assessable street and other improvements.
The development of the owner-occupied housing and other projects as well as the value growth of other property within the TID added approximately $280 million of value to TID #28. Staff estimates that approximately 855 new owner-occupied dwelling units have been developed or are under construction in the TID since its creation. By the end of December 31, 2008, approximately $12.7 million in project costs will have been implemented in the District, as follows:
Street Improvements $4,120,000
Storm Water Improvements 500,000
Streetscape, Pedestrian Circulation, Bus Shelters 621,000
Shoreline Repair 298,000
Development Loans 6,627,000
Administrative 562,000
Total Capital Expenditure $12,728,000
Approximately $5.8 million of this figure was in the form of development loans made by the City to assist the Bedford Court, Tobacco Row and Capitol West housing projects. An additional $800,000 is available for the Small Cap TIF program that may be disbursed by the end of December 31, 2008.
By the end of December 31, 2008 the City of Madison will have recovered its costs in TID #28 through the increased taxes generated by new development. State Statute requires that when a municipality recovers its cost within the statutory life of the district, the district shall be dissolved.
The Tax Increment Base Value in TID #28 as of January 1, 2000 was $206,299,000. The current equalized value as of January 1, 2007 is $484,772,400, representing a property value growth of $278,473,400. The project costs have been recovered in eight (8) years.
NOW, THEREFORE BE IT RESOLVED THAT Tax Incremental District #28 (Bassett Neighborhood) is hereby dissolved.
BE IT FURTHER RESOLVED, that the City Treasurer shall distribute any excess increment collected after providing for ongoing expenses of the district, to the affected taxing jurisdictions with proportionate shares to be determined by the final audit by the City of Madison.