Fiscal Note
The proposed resolution authorizes dissolution of Tax Incremental District (TID) #38. Since 20216, TID #35 has been donating incremental revenue to TID #38 in order for TID #38 to pay down its unrecovered costs to ultimately dissolve. The lost donor payment was from TID #41 in 2020. TID #38 will be terminated with likely no cash balance. No additional appropriation is required for the dissolution of TID #38.
Title
Dissolving Tax Incremental District (TID) #38 (Badger-Ann-Park). (14th A.D.)
Body
On June 17, 2008, the Madison Common Council created Tax Incremental District (TID) #38 (Badger-Ann-Park) located in south Madison. A project plan was prepared, identifying various types of public improvements and private development that could be undertaken in the TID. The City did undertake public improvement projects to assist in-fill redevelopment. The Great Recession of 2008-11 negatively affected the district, causing a significant base value decrease and rendering the district unable to generate positive tax increment thereafter. The City of Madison has now recovered its costs through donor-recipient plans adopted by the City whereby performing TIDs donated excess tax increments to TID #38 to accelerate the district’s cost recovery. State Statute requires that when a municipality recovers its cost within the statutory life of the district, the district shall be dissolved.
The TID #38 Tax Increment Base Value, certified in 2008, was $54,203,700. The current equalized value as of January 1, 2021 is $56,390,600, or value growth of only $2,186,900. Although the district demonstrates positive incremental value in the current year, historically it did not generate incremental value growth over its life. The district was thereby unable to generate tax increments to pay for approximately $4,928,000 in costs. Through excess increment donations from TIDs 35 and 41 (University - Whitney) beginning in 2014, project costs have been recovered in 7 years. The di...
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