As many as 17 new parcels, representing about $5 million in property value, will have the opportunity to take advantage of the city's downtown tax incremental financing, with the hope of planners being that the newcomers to the district will help to spur economic revival in Muskego's downtown.
The Community Development Authority gave the green light on the final changes to the district map Monday night, and although a public hearing was held, no one came to offer input.
Community Development Director Jeff Muenkel said the first meeting of a joint review board, which is comprised of county and city representatives, "praised the city for trying to revive the district" by the expansion. While there remains $375,000 in loan funds the board recommended a threshhold of $600,000 should an unforeseen opportunity arise. In other words, the city could approve an additional $225,000 in loans before the board would be required to meet to approve them.
The additional parcels include businesses on the north and south side of Janesville Road, extending from Lannon Drive to Park Drive on the western end, and from south side businesses from Bellview Drive to Bay Lane Drive on the eastern end.
What is a TIF District?
Tax incremental financing districts are created to spur development. Once they are established, a base equalized assessed value is established. As properties are improved, the values — and therefore the tax revenue — also incrementally rise, and those increments are reinvested into the district. While TIF funds can't be used for "brick and mortar" improvements to the businesses, they can be applied to other infrastructure improvements and subsidies.