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TIF District Facts
- Financial benefit to the City of Madison: Since 1978 the City of Madison has invested $100mil in 68 projects leveraging $1.3bil in new property tax base.
- Total City of Madison TIDs: 36 TIDs created in the City of Madison since 1978
- City of Madison active TIDs:
Currently, the City of Madison has 12 active TIDs (#23, #25, #27, #29, #32, #33, #35, #36, #37, #38, #39, #40)-see the full map here.
City of Madison TID history:
In the City’s history of TIDs, six were created for declared industrial purposed (#1, #12, #13, #22, #24, #39). TID #13 was created on the West Beltline to provide $3 million of assistance to retain Rayovac’s 1200 jobs in 1984. TID #22 was created in 1992 to create The Blettner Group’s Corporate Center Business Park. TID #34 was created as a blighted area TID to provide infrastructure assistance for the Covance expansion in 2003 (though not declared an industrial TID, it was business related). TID #35 was also created as a blighted area TID, although the TIF generator was the $40 million Arbor Gate (retaining Wisconsin Heart, Wipfli, et. al in Madison) office project at the Beltline and Todd Drive where the City provided $2.7 million of assistance and the WI DOT contributed several million of intersection improvements at Todd Drive and the Beltline. TID #32 provided $3mil of TIF assistance to the commercial portion of the University Square project.
There have been two single purpose TIDs formed (i.e. one or two parcels). They are TID #30 (Amoth Ct.) for the Kennedy Place redevelopment projects and TID 33 (Monroe Commons) for the Monroe Commons/Trader Joe’s project.
Uses for TIF:
TIF used for public improvements mainly focuses on paying for street construction, sidewalks, streetscape, and in some cases pedestrian and/or vehicular bridges. TID #32 (State Street TID) is an example of this commitment. Of the $22.4 million of public expenditures estimated in the amended TID #32 project plan, the City has recovered approximately $10.6 million, leaving approximately $2.2 million of unrecovered cost.
The City acquired property, such as the $3.5 Million BioAg purchase of 27 AC to sell to Bio-Ag companies in TID #24 (now TID #39), purchase of the Doty School building in TID #10 to stimulate its redevelopment and various eminent domain acquisitions for right-of-way purposes such as Regas Road—Corporate Drive extension in TID #22. In TID #29 (Allied Drive), the City acquired the former Super Saver grocery store for $3.5 million to be re-sold to a developer for private development, and $4.5 million for the former Hauk property to be redeveloped into housing.
TIF used for bridges:
In TID #25, the pedestrian bridge between Monona Terrace parking ramp and Monona Terrace Hilton Hotel was built with TIF funds for about $2 million, the pedestrian bridge access Park Street to Meriter Hospital was a $1.6 million TIF expenditure in TID #26, the $4 million Marsh Road bridge provided vehicular access in TID #24 for companies on either side of the South Beltline.
Case study: TID #28 (Bassett).
This TID closed in 2007. TID #28 was created in 2000 with a base value of about $206 million and closed about seven years later with a new value of over $484 million—an incremental gain of approximately $280 million. TID #28 recovered/paid for $12.7 million of expenditure including and over $6.6 million of direct assistance to development projects and $6.1 million of public improvement costs.
As required by law, a TID closes when it fully recovers all of its cost. In TID #28 it did so in only seven years, when on average, a City of Madison TID closes in about 12 of its statutory 20-27 year lifespan. When TID #28 closed, approximately $3.5 million of excess tax increment was apportioned among the overlying tax jurisdictions as required by law.
NOTE: For detailed full color maps of current and closed TIDs in the City of Madison with a focus on downtown TIDs (including projects that received TIF assistance) please click here.
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