West Side Battery in Wausau. MWC photo by Mike Leischner.
WAUSAU, WI (WSAU) — Wausau’s Finance and Economic Development Committees have unanimously voted to extend tax increment dollars from one of the city’s expiring districts to help fund a handful of affordable housing projects.
“I think it is a win for everybody,” said Economic Development Director Liz Brodek. “We get the affordable housing that we need, and this is what this fund is meant to be used for should we choose to exercise it.”
The funding comes from Tax Increment District 6, which was created in 2005. The current estimated increment value is $4 million. Brodek says the four housing projects that would qualify for financing need about $5.3 million.
Those projects include the West Side Battery housing proposal from Gorman and Company, infill housing on Thomas Street, and projects on Grand Avenue and Wyatt Street. Brodek says each of those projects is in various stages of planning, and because some are being funded with ARPA dollars they would need first crack at the funds over the others. “We have the shortest expenditure period with those, ARPA funds have to be committed by the end of 2024. The low-income housing tax credit projects would be next.”
Both committees passed the proposal on voice votes. It will now go to the full City Council for consideration later this month. Should they pass the proposal, the money would be set aside in a separate account with no “spend by” date.
Tax Increment Financing is a strategy that municipalities can use to fund infrastructure or development projects in a specific area. The municipality sets geographical boundaries for the area and then calculates the total tax value for the properties. A percentage of that will then go to the municipality’s general fund with the remainder, or increment, remaining in the district. Among the uses for TIFs are infrastructure upgrades for a growing industrial park or carve out new streets for residential development.
The districts then close after a certain number of years or when the debt associated with those projects has been retired. In the case of TID 6, the debt accumulated for the projects has been paid off a year early, meaning the city can extend the $4 million increment one more year before the entire value goes into the general budget.
Brodek also noted that the funding could be used for the city’s lead service line replacement program, but that idea didn’t gain traction with the committees.
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