The Shawano Common Council on Wednesday forwarded to the Plan Commission a proposal to create a new tax increment finance (TIF) district aimed at spurring development along East Green Bay Street.
The commission will hold a public hearing on the proposal on a date still to be determined.
The proposed district would run from County Road BE to Lincoln Street, but would zigzag around sufficiently developed properties.
“It’s in very preliminary stages,” City Administrator Brian Knapp said.
Knapp said it would be similar to the TIF district set up for Main Street and would be aimed at assisting properties that are “under-utilized or in potential need of development or re-development.”
The council directed the Plan Commission to finalize the boundaries for the proposed TIF district and hold a public hearing on the matter.
TIF districts are areas where municipalities invest in infrastructure, such as sewer and water, to attract development where it might not otherwise occur, or to make improvements, such as eliminating blight.
Whatever increase in tax revenue that results from development in those districts goes to paying back the debt the municipality incurred from making improvements to the district.
Other taxing entities — including Shawano County, the Shawano School District and Northeast Wisconsin Technical College — would have to approve of the idea, because they would not share in any additional revenue from new development in the district until the improvements are paid off.
In related action Wednesday, the council approved using up to $7,000 of revenue from the Main Street TIF district to fund improvements at the railroad depot the city is leasing to Mountain Bay Outfitters at 620 S. Main St. The improvements will include a 60- by 16-foot raised deck or “platform” along the south side of the building and add insulation to the attic of the occupied portion of the building to improve heating efficiency.
The council also approved TIF district funds to pay the salary of Shawano County Economic Progress Inc. Chief Economic Development Officer Dennis Heling.
TIF rules allow for the use of TIF district revenue to cover administrative costs for the promotion of economic development.
Under an agreement between the city and SCEPI reached earlier this year, Heling will technically be a city employee so that health, retirement and other benefits can be provided. However, all of the city’s expenses related to the job will be reimbursed by SCEPI.
The city and Shawano County make annual contributions to fund SCEPI.
Heling’s salary is $85,000 a year, according to city officials.
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