Wausau City Hall. MWC file photo.
WAUSAU, WI (WSAU) — The Wausau Economic Development Committee voted to support a one-year extension of Tax Increment Finance District 7, with the captured revenue earmarked for affordable housing projects.
The move would give the city about $1.96 million to use on affordable housing projects city-wide, but keeps the full tax revenue from hitting the city, county, school district, and technical college by an additional year. Alder Tom Neal said that would be a worthwhile move, even if it means delaying the full tax value for the city and other taxing entities. It may be a darn if we don’t, darned if we do scenario. Somebody could look at a no vote tonight and say, ‘Why would they turn down $2 million for affordable housing when that is something that we think is probably the most important thing this town needs?’ It would be hard to explain why we would not accept [that].”
“Affordable housing, affordable housing; that drum is beaten constantly,” added Neal.
Tax Increment Finance districts are designed to keep a percentage of tax revenue within the district for infrastructure projects or economic development incentives. State law allows communities to delay their closure by one year if the percentage is put towards affordable housing projects.
A similar move was made with TID 6, which brought $3.87 million for housing projects, including the Westside Commons and 700 Grand Avenue Apartments. City leaders say the $1.9 million generated by TID 7 could be used to kick-start development at the recently acquired Marathon Box site or 1300 Celveland Avenue.
Finance Director Maryann Groat said that the one-year extension is used quite often across the state. In fact, Wausau once passed on the opportunity at the closure of a district, prompting state officials to call and double-check before signing off on the closure.
The proposal is expected to go to the Finance Committee next Tuesday. The full council would need to sign off on it as well.
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