Neillsville City Council and Planning Commission Approve Designating 2nd TIF District as Distressed
Friday, September 25th, 2015 -- 8:15 AM
-The Neillsville City Council and City Planning Commission approved designating the 2nd TIF District as distressed.The beginning of the meeting was a joint meeting between the city council and planning commission and a public hearing was held in regards to that as well. The TIF District was created in 1999 and will expire in 2022. Unfortunately, due to the 2008 recession and low property values, the district will not meet its debt service by that time.
The city has already had to contribute $281,009 to make up for years where it hasn't hit its mark. If the city would have let it expire, by the year 2022, there would have been a deficit for the district of $310,742. To combat this, the state passed a law in 2009 that would allow cities to label these properties as distressed.
By designating it as distressed, it extends the life of the district by 10 years, allowing the district to meet its debt service. According to preliminary numbers, the city wouldn't even need the full 10 years. The district should meet its debt service with three or four years.
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