A proposal to establish a Tax Incremental Financing District, or TIF, for the now-vacant Aurora Medical Center property between 6th and 7th Streets on North Avenue is gaining the scrutiny not only of the Sheboygan Alders, but also that of those who oppose its establishment.
A TID establishes the property value as a baseline and, as development occurs, property values within the district increase. The increase in property tax revenue is then used to finance eligible project costs, such as public infrastructure, redevelopment, and other related activities within the TIF without being steered toward general revenue or other purposes. Once that debt is repaid, the captured tax increment disappears and the resulting revenue is put into the general stream.
The item before the Common Council on Monday night proposes to create District 25 to cover the former location of Aurora Hospital, thus facilitating the construction of 21 single family homes.
The application for the TIF claims that “Not less than 50% by area of the real property within the District is in need of rehabilitation or conservation work as defined by Wis. Statutes…”
A petition objecting to its establishment has been circulating, citing that, contrary to assertions in the application, the area is not blighted or contaminated, and the developer is “unknown” to everyone but the City Administrator. It further states that the land is worth $1.4 million, but is being turned over at no cost to the unknown developer, while the City also provides a million-dollar incentive, and allows the developer the rights to whatever profits they receive from selling the homes contained within the district.
Alders Mitchell and Perella have recommended that the Common Council adopt the resolution during Monday night’s meeting. Rules allow for a limit of five people to comment at the beginning of the meeting with comments limited to items on the agenda. Objectors to the establishment of TIF 25 are hoping that they will be able to use the opportunity to persuade the Common Council to either hold off for now on any decision, or to reject it outright.
The Sheboygan Common Council will consider that and other items when it convenes at 6 p.m. on Monday, May 19.
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