Contact:
Ethnie Groves, Office of the Governor, 608-261-2156
Bill Will Aid Major Redevelopment Along Madison’s Beltline Highway
Governor Jim Doyle today signed Senate Bill 124, which authorizes a town that has entered into a cooperative boundary agreement with a city or village to use tax incremental financing (TIF) for economic development purposes.
“I am pleased to sign Senate Bill 124, which encourages towns to work cooperatively with their neighboring cities and villages to promote economic development,” Governor Doyle said. “By extending the use of tax incremental financing to towns, this bill will help turn under-developed or economically barren areas between towns and neighboring cities into viable, tax generating properties.”
For nearly 30 years, cities and villages have used TIF districts to turn blighted, urban areas into sites suitable for business and industry. As taxes increase along with property values in these development zones, the community is able to pay for improvements. Once those costs are covered, the district is terminated, and full value of the property is added to the tax base. The result is a stronger local economy, an expanded tax base benefiting homeowners, and a far more desirable urban setting to live and work.
Currently, except under very narrow circumstances, towns do not have the ability to create TIF districts. SB 124 enables towns to created TIF districts if specific requirements are met, including:
The town enters into a cooperative boundary plan in which it agrees to be annexed in all or part by a city or village in the future;
The city or village adopts a resolution agreeing to the creation of the TIF district;
The TIF district is located specifically in the to-be-annexed area; and
The town submits a copy of the cooperative boundary plan to the Department of Revenue.
“I urge communities that already have cooperative boundary agreements to work together with their adjoining cities and villages – and begin using this important economic development tool,” Governor Doyle said. “When we are working so hard at the state level to grow the economy and create good paying jobs, we cannot let similar efforts stall at the local level.”
Governor Doyle made the announcement at the Novation Campus in the Town of Madison, a 55-acre former Brownfield site that sat underdeveloped for many years, in large part due to the Town of Madison’s lack of the tools necessary to nurture economic development.
Without the ability to offer tax incremental financing, the Town of Madison faced difficulty attracting developers to take on projects with special needs. This particular Brownfield site was one that few developers wanted to pursue, due to the complexities of financing, perceptions of the surrounding area, and Brownfield rehabilitation regulations.
This project was able to start with financial assistance from the Wisconsin Impact Fund. SB 124 will create an opportunity for the town and its partners to accelerate the remaining development – bringing dozens of new businesses and hundreds of good-paying jobs in more than one million square feet of new commercial and retail space.
Already having attracted tenants in retail and professional services, the campus will eventually be home to a variety of retail, high-tech, light industry, and other professional service businesses. A job training center will also be located at the Novation Campus.
“The Novation Campus is a great example of how tax incremental financing can help a blighted area turn itself into an economic success,” Governor Doyle said.
Governor Doyle thanked Senators Dale Schultz and Ted Kanavas and Representatives Ann Nischke and Scott Jensen for their work on the bill.
