Tax Incremental District (TID) No. 2 - Amendment

Tax Incremental District (TID) #2 in the Village of Kewaskum was established to promote industrial, commercial, and residential growth. Over time, challenges arose, including the need for additional revenue to meet existing obligations. To address these issues, the Village amended the TID #2 plan by subtracting 36.83 acres of territory to create TID #3, a mixed-use donor TID.

Decreased Debt on Levy: Over the past three years, the debt on the levy has significantly decreased, aided by the creation of TID #3. Surplus revenue generated by its development has supported TID #2, addressing shortfalls and promoting financial stability. This strategic approach underscores the Village's commitment to sustainable growth and fiscal responsibility, fostering a stronger economic future for the community.

Purpose and Scope of the Amendment

• Territory Subtraction:

  • The amendment removes 21 parcels, totaling 36.83 acres, from TID #2.
  • The subtracted parcels include 19.54 acres of industrial land and 17.29 acres of residential land.
  • Subtracted territory is incorporated into the newly created TID #3, allowing targeted redevelopment efforts in the new district​​.

• Reason for Subtraction:

  • As TID #2 is a Distressed District, it can only subtract land, not add to its territory, under Wisconsin law.
  • This adjustment helps focus TID #2's remaining area on its core industrial, commercial, and residential projects​​.

Key Goals and Benefits

• Support for Orderly Development:

  • TID #2 continues to support industrial, commercial, and residential growth within the Village, consistent with its original purpose​.
  • Incremental revenues from the district help repay existing debt obligations and stabilize Village finances.

• Collaboration with TID #3:

  • TID #3 is expected to become a donor TID to provide surplus revenue to TID #2, further reducing financial strain and enabling early closure​

Developments in TID #2 Since Creation:

• JK Rentals Expansion:

  • JK Rentals has undertaken a significant expansion within the TID, supporting industrial growth.
  • This expansion aligns with the district’s goal of fostering mixed-use development and increasing employment opportunities.

• Tails & Trails Doggy Day Care:

  • The Tails & Trails facility is currently under construction, adding a commercial component to the district.

Debt Repayment Progress

• Incremental revenues generated by TID #2 and TID #3 have been applied toward repaying existing debt obligations, including General Obligation Refunding Bonds, helping stabilize Village finances.
• Since 2021, debt on the tax levy has significantly decreased as additional developments in TID #2 and TID #3 have generated increased incremental tax revenues.