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 #23 is closed at the end of 2011 and a final audit is completed, staff estimates that approximately$1,000,000 of excess increment will be available for apportionment. Of that total, approximately $360,000 will be transferred to the City's General Fund with the remainder distributed to the other participating jurisdictions.
Title
Dissolving Tax Incremental District (TID) #23 (Capitol Square).
Body
WHEREAS on May 17, 1994 the Common Council of the City of Madison adopted Resolution 51,154, I.D. No. 15,139 creating Tax Incremental District (TID) #23 (Capitol Square) as a blighted area TID located in an area from Butler to Pinckney Streets to the northeast and Dayton to Mifflin Streets to the northwest (See Attached Map); and
WHEREAS a Project Plan was prepared, identifying various types of public improvements and private development that could be undertaken in the TID; and
WHEREAS on December 15, 2009 the Common Council of the City of Madison adopted RES-09-00970 approving a Project Plan amendment recognizing tax increments from unanticipated growth and thus increasing the total TID expenditures to provide for certain project costs to be completed; and
WHEREAS said infrastructure project costs have been completed and sufficient tax increments received to repay such costs; and
WHEREAS the City of Madison has implemented the said project costs to date in comparison to estimates forecasted in the amended Project Plan as follows:
Capital Expenditures Est. Final Project Plan
Street Renovation $2,704,292 $2,313,000
Way finding System 21,108 19,000
Concourse Improvements 1,032,224 1,310,000
Revitalization Loans 5,826,936 6,152,000
Organizational Costs 445,889 326,000
Pedestrian Linkages -- --
Total Capital Expenditures $10,030,449 $10,120,000
WHEREAS the following private development projects have been implemented within the TID by providing TIF financial assistance:
Project Year Base Value Current Value Value Growth TIF Assistance
22 E. Mifflin (Mullins) 1998 $193,000 $13,689,000 $13,496,000 $3,234,936
Bartell Theatre 1998 275,000 459,800 184,800 100,000
Capitol Point (McGrath) 2001 78,700 37,744,300 37,665,600 2,492,000
$546,700 $51,893,100 $51,346,400 $5,826,936
WHEREAS on December 31, 2011 the City of Madison will have recovered its costs in TID #23 through tax increments. State statute (Wis. Stats. 66.1105) requires that when a municipality recovers its cost within the statutory life of the district, the district shall be dissolved; and
WHEREAS the Tax Increment Base value in TID #23 established on January 1, 1994 was $29,554,100. The current equalized value as of January 1, 2010 is $107,988,800, representing a property value growth of $78,434,700. The project costs have been recovered in seventeen (17) years; and
WHEREAS staff estimates that $1,000,000 of excess tax increment will be apportioned among overlying tax jurisdictions as follows:
City of Madison $360,000
Madison Metropolitan School District 470,000
Madison College (MATC) 60,000
Dane County 110,000
Total $1,000,000
NOW THEREFORE BE IT RESOLVED that Tax Incremental District #23 (Capitol Square) is hereby dissolved, effective December 31, 2011.
BE IT FURTHER RESOLVED that the City Treasurer shall distribute any excess tax 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.