MONROE - Financial advisory company Ehlers & Associates was directed by the Monroe Common Council on Tuesday to begin evaluating whether a block of city property could be designated as a Tax Increment District to bolster the development of local cancer care services by Monroe Clinic.
The feasibility study will look at whether creating TID 10 will be both financially and legally possible. Ehlers municipal advisor Greg Johnson said the process of creating the district could "run congruently" with the creation of TID 9. City staff is currently creating a project plan for that district, on what's commonly called the Dolan property that lies on 98 acres north of County N and Wisconsin 81, after approval from council members Tuesday.
A TID allows municipalities to invest in infrastructure and other improvements within a designated area; property taxes are used to reimburse the cost of those improvements.
City Administrator Phil Rath said by tasking Ehlers with work to create two TIDs at once, city cost and time would be reduced.
The request for a TID near Monroe Clinic Hospital came from the health care facility, which suggested taking part in an arrangement referred to as PayGo or pay-as-you-go. Rather than using funds provided by the city by creating a TID immediately, the organization would pay for development up-front.
Rath said incentives could be provided once construction is completed and can be smaller if development does not reach its potential. Contrary to current TID arrangements within the city, PayGo lessens tax credits rather than enforcing tax penalties once the development is completed if the property does not reach its expected tax value.
Mike Sanders, president and CEO of Monroe Clinic, was present but did not speak to the plans. However, he had discussed the project during a council meeting on May 17. Sanders said during the meeting that without financial assistance from the proposed TID 10, the cancer services development would not occur. He added that on-site laundry would also remain.
Alderman Michael Boyce, who has said he is "not a fan of TID" a number of times during council meetings, pointed to this lack of development as a problem. Specifically, he blamed taxes.
"When the county's largest taxpayer is asking for this it really strikes me," Boyce said. "There's got to be a reason why. I think we need to have those conversations going forward."
The council instructed Johnson and Ehlers to proceed with the proposed feasibility study on an 8-0 vote by members Charles Koch, Jeff Newcomer, Ron Marsh, Richard Thoman, Rob Schilt, Tom Miller, Chris Beer and Boyce. Alderwoman Brooke Bauman was absent.
The feasibility study will look at whether creating TID 10 will be both financially and legally possible. Ehlers municipal advisor Greg Johnson said the process of creating the district could "run congruently" with the creation of TID 9. City staff is currently creating a project plan for that district, on what's commonly called the Dolan property that lies on 98 acres north of County N and Wisconsin 81, after approval from council members Tuesday.
A TID allows municipalities to invest in infrastructure and other improvements within a designated area; property taxes are used to reimburse the cost of those improvements.
City Administrator Phil Rath said by tasking Ehlers with work to create two TIDs at once, city cost and time would be reduced.
The request for a TID near Monroe Clinic Hospital came from the health care facility, which suggested taking part in an arrangement referred to as PayGo or pay-as-you-go. Rather than using funds provided by the city by creating a TID immediately, the organization would pay for development up-front.
Rath said incentives could be provided once construction is completed and can be smaller if development does not reach its potential. Contrary to current TID arrangements within the city, PayGo lessens tax credits rather than enforcing tax penalties once the development is completed if the property does not reach its expected tax value.
Mike Sanders, president and CEO of Monroe Clinic, was present but did not speak to the plans. However, he had discussed the project during a council meeting on May 17. Sanders said during the meeting that without financial assistance from the proposed TID 10, the cancer services development would not occur. He added that on-site laundry would also remain.
Alderman Michael Boyce, who has said he is "not a fan of TID" a number of times during council meetings, pointed to this lack of development as a problem. Specifically, he blamed taxes.
"When the county's largest taxpayer is asking for this it really strikes me," Boyce said. "There's got to be a reason why. I think we need to have those conversations going forward."
The council instructed Johnson and Ehlers to proceed with the proposed feasibility study on an 8-0 vote by members Charles Koch, Jeff Newcomer, Ron Marsh, Richard Thoman, Rob Schilt, Tom Miller, Chris Beer and Boyce. Alderwoman Brooke Bauman was absent.