HORICON — During a special meeting Tuesday night, the Common Council approved the creation of a new tax increment financing district that could bring in an estimated $20 million in tax revenue.
“Hopefully, this will add another tool to the toolbox,” Mayor Steve Neizel said in a phone interview.
In a TIF district, property taxes collected are used to pay for the costs of the improvements in the district over a specified time. The draft plan for the new TIF district states that it could spur new public infrastructure, offset redevelopment costs and provide incentive for business improvements and expansions.
This will be the city’s sixth TIF district. The boundaries will run along either side of Highway 33 from near the railroad tracks to the intersection of West Lake and Clark streets. The district will also include Bowling Green Park and other streets that extend off Highway 33. The proposed boundaries include 128 parcels and 55 acres.
Neizel has previously said that a 40-unit mixed-use workforce housing project will kick-start the TIF. The building will be located on a vacant lot at the Valley Street and Barstow Street intersection. The site is referred to as the former Hardee’s site. The city wants to break ground this year.
The housing project is intended to be an incentive for business owners to live near downtown with the hopes they will establish businesses downtown.
Based on an economic feasibility study, the TIF district is expected to recover all project costs by 2042, which is within the 27-year maximum life for the TIF district as established by state statute.
The TIF 6 resolution will move to the Joint Review Committee for consideration.