City of Oak Creek

Common Council Report

Meeting Date: April 17, 2007

Item No.:        

Recommendation:  That the Council adopt Resolution No. 10758-041707 creating, describing and making certain findings and approving the project plan for Tax Incremental District No. 7.

Background:  The Council is being requested to create Tax Incremental District No. 7, including the adoption of a project plan for the district.

The proposal is for a large mixed-use TIF consisting of approximately 1110 acres that would be developed with industrial, office, commercial/retail, and potentially some new residential uses.  In general, the boundary of the TIF is Drexel Avenue on the north, The Racine/Milwaukee County Line on the south, S. 27^th Street on the west, and I-94 on the east.

The District is being formed to allow the City to respond quickly and efficiently to a variety of development proposals, some of which are known, and others are not.  In addition, in conjunction with the City of Franklin, the City has entered into an agreement for the redevelopment of the 27th Street corridor.  Franklin has already created two tax incremental financing districts along 27th Street for this purpose.  In addition to the usual public works projects to be funded from tax increments there are a number of current development proposals that are seeking assistance from the City.  These projects, and potential future projects, will likely be developer funded.

A copy of the TIF project plan, which provides details of the existing conditions, potential public improvements, potential private project requests, and details on the proposed financing, is included as an attachment to this report.

The Plan Commission, after a public hearing held on March 27th, has recommended its approval of the boundaries of the district as well as the project plan.  The joint review board is scheduled to meet on April 27th to review and consider approval of the project plan.

Staff as well as legal and financial counsel will be present at the meeting to present the project plan and address any questions.

Fiscal Impact:  The financial analysis indicates that the district would remain active for 17 years, after which the tax revenue generated by anticipated $288 million incremental increase in development value would return to all taxing jurisdictions.

Prepared by: Doug Seymour, AICP Director of Community Development

Respectfully submitted, Patrick DeGrave City Administrator

Fiscal Review by:

Beverly A. Buretta, CMC

City Clerk