PLEASANT PRAIRIE'S TAX INCREMENTAL DISTRICTS
The Tax Incremental District (TID) portion of the Village budget operates independently of the other areas (General Government and enterprise funds). TID projects are generally long-term investments that will help to prepare an area for sustainable, quality development. A TID is established to spur economic development requiring a sizeable investment in infrastructure and is contained to a specific geographic area.
TIDs receive income from taxes paid by businesses within the boundaries of the district. These funds are used to develop the land within the TID. Once the debt incurred for development is repaid, the property taxes from businesses within the district are directed back to the taxing entities. Property taxes collected from the general population (properties outside of the TID boundaries) are not used to pay for any TID improvements, programs or debt.
The Village currently has two established TIDs. TID #2 ranges roughly from Highway 31 to west of I-94 along Highway 165. Notable and recent development in TID #2 includes the expansion of Uline's corporate campus and infrastructure improvements that will pave the way for future economic development west of I-94. TID #4 is a small, developer-funded district located at the corner of 22nd Avenue and 91st Street.
TID HISTORY IN PLEASANT PRAIRIE
The first TID in Pleasant Prairie was created in 1989 to assist in the development of LakeView Corporate Park. It was retired in 1999, ten years earlier than originally anticipated. The initial value of TID #1 was $15.75 million, and today, corporate park development in Pleasant Prairie is valued at approximately $1.1 billion and accounts for 35% of the total value of the Village. This creates a substantial benefit in the amount of property tax residents in Pleasant Prairie pay each year.
In 1999, TID #2, a TID suitable and zoned for industrial sites, was created to provide for additional industrial development in within LakeView Corporate Park. In 2002, the Village adopted an amendment to TID #2 to provide the Village Community Development Authority the ability to identify, acquire, and redevelop blighted properties along the I-94 corridor.
In 2004, the Village made a second amendment to TID #2 in order to install broadband infrastructure. The installation of the fiber network has better enabled TID #2 to attract businesses with better paying jobs and significantly higher land values.
A third amendment to TID #2, made in 2008, provided funding for the installation of municipal infrastructure and utilities to accommodate the construction of Uline's corporate campus on the west side of I-94, south of County Highway Q. A fourth amendment enabled the Village to construct additional roadway and sewer improvements to accommodate a second 1 million square foot warehouse at Uline's corporate campus, a park-and-ride lot inside Prairie Springs Park, and additional infrastructure improvements.
A fifth amendment to TID #2 was made during 2014. The fifth amendment: placed additional parcels of land into the boundaries of the district; revised project expenses to complete infrastructure improvements; provided financial incentives for the development of industry; and provided funds for the acquisition of properties or easements required for public improvements.
TID #2 APPROACHES MATURITY
Pleasant Prairie's TID #2 is approaching maturity and is required to be retired by 2023 (barring any legislative changes that could impact debt repayment). During July of 2017, the Village will reach a spending deadline for TID #2, after which the Village can no longer incur additional expenses through TID #2.
"The TID projects in Pleasant Prairie have provided quality sustainable development for our area," explained Village President John P. Steinbrink. "Our commercial and industrial residents are a great asset to our community. They provide employment, contribute to our tax base, reinvest in the community, and help to grow and balance the local and regional economy. We, in turn, offer them a great place in which to conduct business and a great community in which their employees can live and work."
WHAT TO EXPECT MOVING FORWARD
The Village will continue its efforts to foster quality, future economic development with a focus on ensuring that any remaining developable land in the Village achieves its highest and best use in order to help the Village maintain its value over the long term. During 2016, approximately $11.2 million dollars went to pay down debt in TID #2. During 2017, this amount is expected to be $10.7 million. To date, expenditures within TID #2 total approximately $102 million. The current equalized value of TID #2 is $548.4 million.