Fiscal Note
No additional City appropriation is required with the approval of the project plan and boundary for Tax Incremental District (TID) #51 (South Madison). The 2023 Adopted Capital Budget includes $3 million in tax increment revenues transferred from TID 36. Additional city costs associated with urban development in this area will be included in future operating and capital budgets subject to Common Council approval.
Title
Approving the Creation of the Project Plan and Boundary for Tax Incremental District (TID) #51 (South Madison), City of Madison.
Body
WHEREAS Chapter 105 of the Laws of 1975 of the State of Wisconsin created the Tax Increment Law (the “TIF Law”), Section 66.1105, Wisconsin Statutes; and
WHEREAS TIF Law sets forth certain steps which must be followed to create a Tax Incremental Project Plan and Boundary; and
WHEREAS a Notice of Public Hearing by the Plan Commission to afford interested parties an opportunity to express their views on the creation of the TID Project Plan and Boundary for TID 51 was published in the Wisconsin State Journal on January 27 and February 3, 2023 as required by TIF Law; and
WHEREAS prior to publication of the Notice of Public Hearing a copy of the Notice was sent by first-class mail to each of the chief executive officers or administrators of all local governmental entities having the power to levy taxes on property within the boundary of TID 51; and
WHEREAS the Plan Commission of the City of Madison held a public hearing on February 13, 2023, at which interested parties were afforded an opportunity to express their views on the proposed creation of the Project Plan and Boundary for TID 51; and
WHEREAS the Plan Commission has made the following findings as indicated in the attached report:
1. No less than 50%, by area, of the real property within the TID is blighted within the meaning of 66.1105(2), Wisconsin Statutes.
2. The improvement of such area is likely to significantly enhance the value of a substantial portion of the other real property in the TID.
3. The aggregate value of equalized taxable property of the TID, plus all existing TIDs, does not exceed 12% of the total value of equalized taxable property within the City.
WHEREAS the Plan Commission has determined that the TID meets the basic requirements of City TIF Policy for tax incremental district proposals adopted by the Common Council on April 17, 2001, amended on March 31, 2009, and amended again on February 25, 2014 (insofar as they are applicable to the amendment of a project plan), conforms to the Comprehensive Plan for the City of Madison and is consistent with the review criteria adopted at the same time, specifically, that the TID supports economic development activities intended to stabilize and diversify the City’s economic base.
NOW THEREFORE BE IT RESOLVED that the Common Council of the City of Madison hereby confirms and adopts the above recitals and finds that:
1. No less than 50%, by area, of the real property within the amended TID boundary is blighted within the meaning of Section 66.1105(2), Wisconsin Statutes.
2. The improvement of such area is likely to significantly enhance the value of a substantial portion of the other real property in the TID.
3. The aggregate value of equalized taxable property of the TID, plus all existing TIDs, does not exceed 12% of the total value of equalized taxable property within the City.
4. The project costs relate directly to eliminating blight.
5. TID 51 (South Madison) is hereby declared a blighted area district.
6. The percentage of territory devoted to retail businesses within TID 51 (South Madison) is under thirty-five (35%) percent.
7. TID 36 (Capitol Gateway) and TID 37 (Union Corners) the Donor TIDs, have the same overlying taxing jurisdiction as TID 51 (South Madison) as the recipient TID.
8. The Donor TIDs have sufficient revenue to pay for all of their current costs.
9. TID 36 (Capitol Gateway) has sufficient tax increments to donate $47,200,000 to TID 51 (South Madison) and TID 37 (Union Corners) has sufficient tax increments to donate $18,000,000 to TID 51 (South Madison), the Recipient TID.
10. The Recipient TID, TID 51 (South Madison) is a blighted area TIDs as defined in State Statute 66.1105(6)(f)2.
BE IT STILL FURTHER RESOLVED that the attached Project Plan and Boundary for TID 51 (South Madison), City of Madison, is hereby adopted as the Project Plan as of January 1, 2023 for said District and such plan is feasible and in conformity with the Comprehensive Plan for the City of Madison and will add to the sound growth of the City.
LEGAL DESCRIPTION
See Attached Legal Description