Officials approved spending $17.7 million Tuesday to create a new tax increment finance district on the east side of Baraboo projected to create an estimated $45.75 million in value for the city while providing needed housing.
The district encompasses about 446 acres of land, including 120 acres of the parcels commonly referred to as the “Jackson Property” purchased in 2001 by the city. The recent rezoning of the area from agricultural use to assorted types of single- and multi-family housing was completed in line with the Eastside Corridor Study and the Housing Study and Needs Assessment by the Sauk County Development Corporation, which was published in late 2018.
“The footprint, or the boundary, coincides with the east side study done in 2017,” Bradley said. “That’s the area we’re targeting with the TID district.”
The TID includes residences and businesses as well as some agricultural land for possible future development along County Highway T. It stretches from the far east edge of city owned land to East Elementary School and along Eighth Street to Kwik Trip.
Estimated costs for the project include $5.7 million for infrastructure, such as the installation of streets, street lighting, bike and pedestrian paths, water and sewer piping, street reconstruction and water and sewer main replacement. The project plan also outlines roughly $2.1 million for purchasing additional land, demolishing existing structures and inspections for asbestos. There would be about $2 million in expense to the city to issue debt, $92,000 for the creation of TID and administrative expenses and $7.8 million in development incentives.
The plan outlines incentives for housing developers on the land over the 20-year life of the TID.
Baraboo Common Council members unanimously approved the creation of the TID without discussion.
An estimated list anticipates the expense of more than $12.1 million this year, with $7.2 million for development incentives as the largest cost and $4.4 million for public infrastructure. In the second phase, scheduled over 2023, $170,000 would be spent. That would include $115,000 for biking and walking paths, $40,000 for land acquisition, $10,000 for demolition and $5,000 for asbestos inspections.
In 2024, the state Department of Transportation plans to reconstruct State Highway 33, which is when sewer and water main replacements as well as additional street reconstruction along Jefferson Street and street light installation is anticipated for roughly $835,000.
Currently, the city anticipates a multifamily development on the property that would create 64 living units. The tax value benefit would be roughly $9 million. Other projects are anticipated in coming years for four- and six-plex apartment buildings and single family homes.
The TID was designated as mixed-use, which means no more than 35% of the land can be used for new construction of residential buildings. Less than 35% of the district is estimated to be used for retail businesses. There are also plans to create conservancy land within the district.
According to a feasibility study as part of the project plan, the district should generate enough tax revenue to pay for all project costs within 16 years and create about $45.75 million in value by 2032.
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