Tax
Incremental District Number Two, Village of
Greendale
In recent years, our Village leaders have been
encouraged, by residents, community leaders and
business owners, to explore the various options
for energizing a revitalization of Southridge
Mall and the surrounding 76th Street commercial
area.
On November 11, the Village initiated the public review process for a proposed creation of a Tax Incremental Financing District to promote redevelopment at Southridge. In the right sidebar are links to a draft of the Project Plan for the proposed district and information about the proposed project. The Project Plan has been prepared in conformance with the provisions of Wisconsin Statutes Section 66.1105 (the “Tax Increment Law”).
A public hearing will be held before the Village of Greendale Plan Commission on December 1, 2010 at the Greendale Safety Center, 5911 W. Grange Avenue.
TIF Basics
No Negative Effect on Taxes
The base taxes paid by the properties within the tax incremental financing(TIF) district to the Village of Greendale, the Greendale School District, Milwaukee County, and the Milwaukee Metropolitan Sewage District will be the same with or without the TIF. To further clarify, the base taxes paid by any property with the TIF district will be the same whether or
not the TIF is implemented.
New Taxes Generated by the Project Fund The Development Costs
The additional property taxes that are collected from the increased valuation due to the development are placed in a separate fund. Those additional property taxes collected within the TIF fund are known as the increment. The increment is used to fund the development costs.
Builds Additional Tax Base
After the development is completed and the TIF increment is paid out, the TIF District is dissolved, and ALL property taxes are then distributed to the Village of Greendale, the Greendale School District, Milwaukee County, and the Milwaukee Metropolitan Sewage District.
Tax Increment Financing is simple in concept. TIF calls for local taxing bodies to make a joint investment in the development or redevelopment of an area, with the intent that any short term gains be reinvested and leveraged so that all the taxing bodies will receive larger financial gains in the future. The funds for this investment do not come from current tax revenues, but from the additional generated by the new development. These new revenues are generated by increased public and private investment in identified, underperforming, areas.
When a TIF redevelopment project area (often called a TIF district) is created, the value of the property in the area is established as the “base” amount. The property taxes paid on this base amount continue to go to the various taxing bodies as they always had. It is the growth of the value of the property over the base that generates the tax increment. This increment is collected for use by the municipality to make additional investments in the TIF project area. This reinvestment generates additional growth in property value, which results in even more revenue growth for reinvestment.
On November 11, the Village initiated the public review process for a proposed creation of a Tax Incremental Financing District to promote redevelopment at Southridge. In the right sidebar are links to a draft of the Project Plan for the proposed district and information about the proposed project. The Project Plan has been prepared in conformance with the provisions of Wisconsin Statutes Section 66.1105 (the “Tax Increment Law”).
A public hearing will be held before the Village of Greendale Plan Commission on December 1, 2010 at the Greendale Safety Center, 5911 W. Grange Avenue.
TIF Basics
No Negative Effect on Taxes
The base taxes paid by the properties within the tax incremental financing(TIF) district to the Village of Greendale, the Greendale School District, Milwaukee County, and the Milwaukee Metropolitan Sewage District will be the same with or without the TIF. To further clarify, the base taxes paid by any property with the TIF district will be the same whether or
not the TIF is implemented.
New Taxes Generated by the Project Fund The Development Costs
The additional property taxes that are collected from the increased valuation due to the development are placed in a separate fund. Those additional property taxes collected within the TIF fund are known as the increment. The increment is used to fund the development costs.
Builds Additional Tax Base
After the development is completed and the TIF increment is paid out, the TIF District is dissolved, and ALL property taxes are then distributed to the Village of Greendale, the Greendale School District, Milwaukee County, and the Milwaukee Metropolitan Sewage District.
Tax Increment Financing is simple in concept. TIF calls for local taxing bodies to make a joint investment in the development or redevelopment of an area, with the intent that any short term gains be reinvested and leveraged so that all the taxing bodies will receive larger financial gains in the future. The funds for this investment do not come from current tax revenues, but from the additional generated by the new development. These new revenues are generated by increased public and private investment in identified, underperforming, areas.
When a TIF redevelopment project area (often called a TIF district) is created, the value of the property in the area is established as the “base” amount. The property taxes paid on this base amount continue to go to the various taxing bodies as they always had. It is the growth of the value of the property over the base that generates the tax increment. This increment is collected for use by the municipality to make additional investments in the TIF project area. This reinvestment generates additional growth in property value, which results in even more revenue growth for reinvestment.
TIF Quick
Links:
Project Highlights
Simon Property Group plans to undertake a redevelopment of Southridge Mall, including a renovation and upgrade of the mall’s interior. Southridge Mall, Wisconsin’s largest shopping center, is a 1.2 million square foot regional mall that was built in 1970. Anchors include Kohl’s, Sears, JCPenney, and Boston Store.
Simon has committed to a multi-million dollar redevelopment of Southridge, $10 million of which will be borrowed and repaid through a proposed Tax Incremental Financing (TIF) district, without any cost to other Greendale taxpayers.
The design and specific elements of the redevelopment have yet to be determined, although the potential ranges from adding a department store to new restaurants and specialty store tenants.
Greendale home and business owners will not pay one additional penny in taxes to support this redevelopment. On the contrary, once the loan is repaid, the additional taxes paid by Southridge will provide tax relief.
- Community Development Authority Agenda for December 21, 2010
- Joint Review Board Agenda for December 22, 2010
- NOTICE: Joint Review Board Meeting, December 22, 2010
- Draft Project Plan (November 10, 2010)
- Project Boundary Map
- Redevelopment Concept Illustration
- State of Wisconsin Department of Revenue Tax Incremental Finance (TIF) Manual
- Joint Review Board: Tax Increment District Number Two
Project Highlights
Simon Property Group plans to undertake a redevelopment of Southridge Mall, including a renovation and upgrade of the mall’s interior. Southridge Mall, Wisconsin’s largest shopping center, is a 1.2 million square foot regional mall that was built in 1970. Anchors include Kohl’s, Sears, JCPenney, and Boston Store.
Simon has committed to a multi-million dollar redevelopment of Southridge, $10 million of which will be borrowed and repaid through a proposed Tax Incremental Financing (TIF) district, without any cost to other Greendale taxpayers.
The design and specific elements of the redevelopment have yet to be determined, although the potential ranges from adding a department store to new restaurants and specialty store tenants.
Greendale home and business owners will not pay one additional penny in taxes to support this redevelopment. On the contrary, once the loan is repaid, the additional taxes paid by Southridge will provide tax relief.