Rib Mountain wants to start a new TIF district. These residents aren't having it
Rib Mountain wants to start a new TIF district. These residents aren't having it
UPDATE: Rib Mountain’s administrator responded after publication and that response is included below.
A plan to start a new Tax Incremental Finance district in the village of Rib Mountain was set to cost some of its residents upwards of $100,000.
Thanks to resident outcry, that plan has been seriously scaled back. But the residents in the town are still fighting to stop the district out of concern for what it would ultimately do to taxes.
Now the town of Rib Mountain on Tuesday is slated to vote on a reconsideration of the vote it took earlier this month to approve the district with some changes. The Joint Review Board is slated to consider the district on Wednesday afternoon.
This is how the story unfolded.
The Wausonian caught up with Cindy Hogan, a Rib Mountain resident for 16 years. Hogan started a group on Facebook called Stop the TID in North Rib. On Monday morning Hogan and roughly a dozen other folks manned signs outside the town hall, including phrases such as “NN not for sale,” “No TID for Skinner" and “Keep Rib Natural.”
The group also has a petition up on change.org opposing the Rib Mountain TIF District.
Hogan says she learned about it the day the first approval was going through and she came out to oppose it. She said the vast majority of speakers at that meeting expressed that they didn’t want the district.
The original boundaries of the district would have meant people in that area of NN would have been required to hook up to village sewer and water - right now many of them are on septic systems and are happy to remain that way, Hogan told The Wausonian.
The hook-ups could have cost residents tens of thousands of dollars.
The village board approved an amendment to the plan that carved out that area from the proposed district.
But residents are still concerned about the district and what it will do to taxes.
About the district and TIFs in general
The idea behind TIF districts is that they allow municipalities to essentially borrow against future tax revenue. When a district is formed, the current property values of that district are set as a baseline. Anything above that baseline is income for the district, and goes toward paying back the borrowing.
The intention of such districts is to help municipalities develop blighted areas developers otherwise don’t want to touch. To be approved, municipalities must prove the project passes the “but, for” test. In other words, but for these incentives, the project wouldn’t happen.
In 20 years, while I’ve seen municipal leaders deny projects, I haven’t yet seen a project denied by a Joint Review Board for not passing the but, for test.
Right now what is detailed on the TIF project plan is about $33 million worth of infrastructure projects.
That’s meant to set up the corridor for business, something that many residents aren’t happy about. The project plan says that 75% of the territory within the district would be dedicated to retail by the project’s close.
According to the project plan, the district would generate $54 million in value over its life and the district would pay off its debt by 2045.
For more about some of the downsides of TIF Districts, see The Wausonian’s earlier story:
What’s next for Rib Mountain’s TIF District?
Hogan says she discussed with Village Board Chair Al Opall about bringing the district back up for reconsideration at a future board meeting. Hogan says she thought he would be the most likely to put the reconsideration on the agenda.
That appears to have happened. The Rib Mountain Village Board agenda for Tuesday has the item “Possible reconsideration of the motion to create Tax Increment District No. 2” on Tuesday night’s agenda.
The Joint Review Board is slated to meet Wednesday at 3 pm. But if the district is reconsidered, it seems unlikely that meeting would still be necessary.
The Rib Mountain Village Board meeting is at 6 pm Tuesday at the village hall off of Highway NN, 227800 Snowbird Avenue.
The Wausonian reached out to Administrator Gaylene Rhoden for comment but did not hear back in time for publication. Rhoden did respond post-publication however: Her response is below:
The Village respects the residents’ ability to express concerns publicly whether that is through the public comment period in a meeting or through other means. Since early September, the Village became aware of the growing concerns of the proposed Tax Incremental District. This item will be brought back for reconsideration at the October 1 Village Board meeting. As Administrator, I appreciate the passion residents have for Rib Mountain. We will continue to engage the residents especially as we undertake the CTH NN Corridor Study.
Read next:
