29 Paddock Lake TIF formed – almost

 

By Gail Peckler-Dziki ~ Correspondent

Gateway Tech and Kenosha County sent representatives to sit on the joint commission of the overlapping taxing districts for the Paddock Lake Tax Incremental Fund (TIF) district when it first convened on June 4.

Neither Central High School nor Salem Grade School has yet to appoint representatives, but no decisions were made at the June 4 meeting. The joint commission has   30 days to act on the proposed TIF.

Paddock Lake Village President Marlene Goodson is the village representative and formed village president Dave Buehn is the citizen representative. Goodson nominated him and was supported by the Gateway representative, Mark Zlevor (vice president of finance) and Dave Geertson, the Kenosha County representative.

The joint commission is tasked with answering the “but for” question and approve or deny the creation of the TIF district. One aspect is would development happen without the project? Also considered are the issues of the same value, the same time frame, the same level of amenities and the same level of job creation.

 

Why?

The purpose of the Paddock Lake TIF district is to complete the west side water system that was begun by several developers prior to the economy tanking. Jim Mann, a representative From Ehlers and Associates, explained that there was already a certain amount of infrastructure in the ground.

“The original plan was to finance the water system through special assessments,” Mann explained. “Without completing the water system, development won’t occur.”

He gave the example of Hartnell Chevrolet, which recently annexed into Paddock Lake and plans to expand but needs access to water to accomplish this.

There is a three-year lag in collecting property taxes on new development. If the development occurs in 2012, the new assessment doesn’t occur until 2013 and the actual taxes won’t be collected until 2013. Mann explained that would make it necessary to defer any interest or principal payments for a few years.

Mann explained that there are always   some risks in any venture. “If there is no development,” he said, “then the village would have to pay for the project out of the regular tax levy. The  village already sees expansion planned for that will increase the tax increment with the Hartnell plans.”

Paddock Lake has already seen other growth in the proposed TIF district area. There is a new Dollar General store in The Plaza and a dentist/orthodontist has plans to move into the village. Both would increase the tax increment of the TIF fairly soon.

When a TIF district is set, property tax amounts received by schools and the county are frozen, in this case, at whatever the amounts are at the end of 2012. As property values increase, that amount is used to pay for improvements to the area.

This TIF district would be created to pay for the completion of the west side water system.

 

Where

The possible TIF district is in the general area of the intersection of Highway 50 and 83. The village is considering the area bounded by 248th Avenue west to 262nd Avenue. The northern boundary is one-tenth of a mile from Highway 50 and the southern two-tenths of a mile from Highway 50.

Ninety percent of the TIF will be mixed use, residential and commercial/light industrial. Ten percent will be green space. There are 28 single-family homes and 30 multi-family homes in the proposed plan, with 60 acres slated for commercial development. Completing the water system would make it easier for a possible senior housing development called Celadon and located south on Highway F to be developed.

Since the district is not defined, letters were not sent out to specific business owners. “I am anxious to hear from residents,” Goodson said in a later interview. “As soon as we have a set area, letters will go out. We have tried to make sure this plan was publicized and want the input form Paddock Lake residents.”

The well is dug and fire hydrants, a portion of the distribution system, are completed.  The rest would be done in three phases. The cost for all three is estimated at $4.8 million. The first phase would be the pumps and well housing, along with an iron removal/water treatment system. Booster pumps and a pressure reducing station are also included. There would be a transmission main which is a line that would tie the east and west water systems together.

Since the Department of Natural Resources (DNR) requires a redundant water source, the transmission main would allow the west side to use only one well until the second was needed.

Phase two would occur only if needed. Should large-scale development occur, an at grade water storage tank would be installed. Phase three is a rehabilitation of wells one and two, both on the east side portion of the system.

Copies of the proposed plan will be available for viewing at the Paddock Lake village hall.

The next joint commission meeting is scheduled for June 28 at 6 p.m. at the village hall.


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