Gillett council, review board approve new TID

Tax incremental financing reserves use of funds for municipal infrastructure
By: 
Warren Bluhm
Editor-in-chief

The city of Gillett has authorized its fourth tax incremental finance district (TID) after action Sept. 15 by the city council and joint review board.

Creation of a TID can generate additional revenue for a city. The increased property tax from new development within the boundaries of a district is reserved for municipal use for 20 years rather than shared with other taxing entities such as schools, the county or state.

The money can then be used to improve infrastructure within the TID. Art Bahr, community development specialist for MSA Professional Services, a Baraboo-based civil engineering firm that prepared the TID 4 plan, estimated that the new district could provide Gillett with $1,059,110 for infrastructure projects if the expected development occurs.

Activities and improvements in the newly designated TID 4 are intended to encourage and attract business growth to the city, Bahr said.

“I did try to stay conservative, so if you see there, I’ve only got about six new structures in the next 20 years,” he said.

A TID can fail in its purpose if a community borrows for infrastructure and the expected development does not occur. For that reason the boundaries of TID 4 were drawn to include areas where businesses are already planning or building, including the corner of North McKenzie Avenue and Pine Street, where a new Dollar General store is under construction.

Other potential projects are a storage facility expected to be completed next year, a couple of new homes in 2024, and a multi-family dwelling by 2028.

“This is in hope we can develop some of the vacant areas in the city area,” Bahr said.

Community support and promotion are important to ensure a TID succeeds, he said.

“Sometimes when TIDs don’t work like we’ve experienced in the past it’s because the boards didn’t market those TIDs right or they didn’t promote the city for growth at the right time,” Bahr said. “Sometimes it’s the economy that does it, many times it’s because the boards don’t really make an effort to work with the people in the community to build things.”

In a pair of special meetings, the Gillett City Council and then the Joint Review Board unanimously passed resolutions approving the creation of TID 4. The last step is submitting the project plan and documentation to the Wisconsin Department of Revenue for certification.