Somerset Village board declares TID #4 distressed
The village of Somerset has completed the requirements to declare Tax Incremental District (TID) #4 a distressed TID.
At the Tuesday, Nov. 15, Village Board meeting, Bert Peterson of Cedar Corporation presented the board members with the final numbers in proclaiming TID #2 a donor to TID #4.
The village had purchased 99 acres off Highway 35N in 2009 with the intention of developing the property for business or industrial purposes. However, no development has happened to generate revenue so the village has been losing money on the project.
In addition to declaring it "distressed," the village is designating the prosperous TID #2 as a "donor district" to help pay for TID #4. This will eliminate the need for raising property taxes on village residents.
"We had to borrow money to pay for the land and we had to use the tax levy," explained Pam Donohoe, village clerk/economic development director. "Because of this, our tax levy will drop $94,000 so it relieves the tax burden on the village."
Dave Carufel, board member, questioned what would happen if development did start in TID #4.
"We would be able to pay off the debt faster," answered Ryan Sicard, board member and chair of the Public Works Committee.
The Village Board already had a public hearing regarding these issues on Thursday, Nov. 3. The plan is for TID #2 to donate excess tax incremental funds to TID #4 in the approximate amount of $5,300,000. Both TID's would get extensions then; TID #4 until 2037 and #2 until 2029.
"The plan is to close out TID #2 in five years rather than 10 years," Donohoe said.
The board approved both resolutions. The final step was for the Joint Review Board to approve it at their Thursday, Nov. 17 meeting.
In other news:
The board approved proceeding with the de-icing project at the wastewater treatment plant. Cedar Corporation will partner with Breuer Metal Craftsman of Beaver Dam, Derrick Companies and Geigle Electric on the project.
The board approved the 2012 budget; said the mill rate should stay about the same as last year.
The board approved the contract with Cedar Corporation regarding the TID amendments not to exceed $4,500.
Todd Mayers, of Core Power Sports out of The Bridge Bible Church, told the board they were going to have winter races in the Somerset Amphitheater over the New Year's holiday. They asked when the village does snow removal, if they would bring the snow to the amphitheater to drop it off. The board said he should talk to the Public Works Committee at its December meeting first about their plans.
The Somerset Village Board meets the third Tuesday of each month at 7 p.m. in the Village Hall. The public is welcome to attend.