Shawano plans new TIF for downtown area

The city of Shawano is planning a new tax increment finance district for the downtown area to replace the one expiring later this year.

The Shawano Plan Commission voted March 30 to recommend approval of the boundaries for TIF District 9 to the Shawano Common Council, which would include properties along and near Main Street from the city’s northern border to Oshkosh Street.

“Tax increment financing is our primary economic development tool that we utilize in the city,” said Eddie Sheppard, city administrator. “In order to do that, we need to establish these boundaries, and there are a number of tests they have to go through, a number of things we have to create to make sure we can spend those funds within the district.”

Much of the proposed new TIF district is currently part of TIF District 4, which has been used to help rehabilitate businesses and make improvements. The expenditure period for TIF District 4 ends Sept. 30.

“We’ve been pretty strategic with creating this district,” Sheppard said. “We’ve outlined some areas that have already been improved, so they’re not included, but we’ve included primarily the downtown area in which we intend to make funding available for future development.”

Included in TIF District 9 is $300,000 of the proposed $2.5 million plaza project planned south of Division Street, $200,000 for the new boat dock planned for Huckleberry Harbor and $600,000 for a revolving loan fund. In the future, the city plans to create development incentives totaling more than $2.7 million.

The district will be considered a rehabilitation and conservation district, according to John Cameron, a consultant with Ehlers Public Finance Advisors based in Waukesha. In order for the district to be established, at least 50% of the properties in the boundaries have to have the potential for rehabilitation, which Cameron said the city met the criteria.

When a TIF district is created, the taxes for the established property value go to their standard entities, which include Shawano County, Shawano School District and the technical college district, but any increase in value has the full taxes for that incremental increase go to the TIF district, according to Cameron.

“We’re estimating, over the district’s 27-year life, approximately $15.1 million in new taxable value within the district,” Cameron said.

The hard debt for the district could be paid off as early as 2035, according to Cameron.

TIF districts have been a benefit to the city as various projects have taken place. Sheppard noted that many of the downtown projects were made possible by TIF District 4, and the recent TIF District 7 was able to bring out Belmark, 200 apartments through S.C. Swiderski, and the relocation of Reinhart’s, now known as Performance Foodservice.

“In the downtown, a lot of our projects are smaller, storefront-type deals that we’ve been doing through the RDA (Redevelopment Authority) to help some business come in and reinvest a bunch of money to do a building that might have to be torn down,” Sheppard said, noting that the Cornerstone Chiropractic project done a couple of years ago was an example. “Main Street needs to be touched up on the public side.”

Mayor Bruce Milavitz said he supported the idea of a revolving loan fund being put in place to help new and existing businesses locate to Shawano.

“Who knows what’s out there for people to expand or bring their businesses or build or whatnot,” Milavitz said. “I think it’s going to be an open palette here.”

lpulaski@newmedia-wi.com