A review of the state of the City of Milton's tax increment financing (TIF) districts was the focus of the annual meeting of Joint Review Board on Sept. 30.
Milton City Administrator Alan Hulick went through the five active test TIF districts that impact the taxing jurisdictions of the city, Rock County, Blackhawk Technical College and the Milton School District.
"Each of those TIFs represent a different geographical area of the community and generally has a different purpose," Hulick told The Gazette, following the meeting.
“The annual meeting is a look-back process on what transpired during the last tax season, which would have been tax season 2020,” he said.
Because TIF 11 was created in early 2021 for the Clasen Quality Chocolate manufacturing facility now under construction, it was not part of the review.
But Hulick said the the first phase of the project is expected to be operational yet this year. He said the city has not been told by the company how many people will be employed at the facility, but he projected between 300 to 400 people could work there.
TIF 9 includes a portion of the chocolate factory site but is not yet seeing much activity, Hulick said. Most TIFs have some outstanding debt, with the exception of TIF 9.
The other TIF districts Hulick discussed at the meeting are either industrial sites or involve redevelopments. TIF 6, 9 and 11 are industrial TIFs. TIF 7 and 10 are mixed use.
“The whole purpose of those [mixed use] TIFs is to generate redevelopment in commercial corridors or older sections of the city,” Hulick said. “Whereas industrial TIFs are meant to incentivize new development to occur on greenfield (former industrial) sites.”
Hulick provided updates on several of the TIFs within the city.
TIF 6, established in 2006, includes the Crossroads Business Park and some commercial parcels on the west side of Highway 26. Hulick said the city hopes to close it somewhere between 2024 and 2026. In 2020, TIF 6 generated $1,060,231 in revenue.
TIF 7, known as the downtown TIF district, extends from Kwik Trip to Merchant Row, and is described as a mixed use development TIF. Commercial developments makes up a majority of this TIF which is used to help Merchant Row and First Community Bank. Hulick describes TIF 7 as a "healthy TIF" which does not accrue a lot of financing on a yearly basis. TIF 7 made $148,754 in revenue last year.
TIF 10, including the Parkview Drive Apartment Complex on the east side of Milton, is relatively new and was a replacement for TIF 8. TIF 8 did not recover from the recession and has less value today than at the time of its creation. So, the board closed TIF 8 and created TIF 10, which generated $1,662,777 in total revenue in 2020.