MONROE —Monroe officials are working to finalize creation of a special taxing district to fund infrastructure they say will fuel growth in a part of town that needs it.

A tax-increment financing district is the primary economic development tool municipalities must use to help promote economic development or redevelopment in a given area,” Greg Johnson of Ehlers, the city’s consulting firm, told the Monroe Common Council at its Feb. 3 regular meeting.

The proposed district includes 279 acres incorporating portions of the city’s industrial park and recently annexed territory, north and south of Wis. 11. The so-called TID 12 district will be created to fund the costs of public infrastructure and development incentives officials say are necessary to promote development. Ideally, TIF’s use any increase in tax value to fund the investments that created it and eventually pay those off while adding permanent properties to tax rolls.

Essentially, it works like this: 

●  A base value is established for the properties in the district. 

●  The city collects taxes on the base value and sends the money to all taxing bodies. 

●  The city keeps the taxes on the increase in value, called the increment, in a TIF fund. 

●  The city uses the money in the TIF fund to pay for improvements in the district. 

Based on an Economic Feasibility Study council members were told that the Monroe anticipates the district will generate enough tax increment to pay all project costs by the end of its maximum life. Improvements, Johnson told the council, are likely to significantly enhance the value of substantially all the other real property in the district.

Currently, the site has little to no utility infrastructure suitable for future development, he added.

“That’s the major impediment to development on the site,” said Johnson.

The district must be approved by a Joint Review Board comprised of representatives from the other impacted taxing bodies, likely sometime in late February or March; and then be subject to final council approval.

The proposed improvements, including interest to finance debt for the work, total nearly $15 million.

Among the expenses included:

●  31st Avenue Design and Reconstruction-$750,000

●  32nd Avenue Design and Reconstruction-$1.25 million

●  Development Incentive for B&S Subdivision-(MHS excess property) $3.25 million 

●  N 29th Avenue and 3rd Street N M&O Streets $335,000