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. TID #14 will have accrued excess increment totaling approximately $1,548,000, including $1,446,000 of increment received in 2007.
Bond covenants for the outstanding Block 90 lease revenue bond issue commit TIF increment as a backstop to the lease payments from the developers that are intended to repay the bonds. If the developers (Urban Land Interests and Mullins partnerships) would fail to make the remaining scheduled payments on these variable rate bonds, the City would be responsible for ensuring that those payments are made. The remaining payments (totaling an estimated $950,000 to $1,000,000) are scheduled for October 2007 and 2008.
Therefore, when TIF District #14 is closed and a final audit is completed, $548,000 of the total excess increment of $1,548,000 will be apportioned among the overlying tax jurisdictions. The remaining $1,000,000 will be held in reserve until the developers satisfy their last two debt payment obligations. After these payments are made late in 2007 and 2008, the remaining excess increment will be distributed proportionately. When all distributions have been completed, the City's share of excess increment will total approximately $526,000 and will be deposited in the General Fund. The remaining $1,022,000 will be distributed to Dane County, Madison Area Technical College and the Madison Metropolitan School District.
Title
Dissolving Tax Incremental District (TID) #14 (Capitol Square North).
Body
PREAMBLE
On July 23, 1985, the Madison Common Council adopted Resolution 41,519 I.D. No. 4485-14 creating Tax Incremental District (TID)#14 (Capitol Square North) through a corridor East Mifflin, East Dayton, East Johnson and the 0-100 Block of East Gorham, bounded Henry Street to Butler Street (map attached). A ...
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