Prairie Avenue Tax Increment District Officially Certified by the State

The City of Beloit’s newest Tax Increment District (TID No. 16) along Prairie Avenue is official. The State of Wisconsin Department of Revenue has officially certified the district with a base value of $91 million.

The district covers approximately 305 acres, stretching from Franklin Street parcels in the north to Moccasin Trail properties in the south, and has been identified as in need of rehabilitation or conservation under Wisconsin Statutes.

While there are not yet any projects planned for the district, the creation of the TID provides additional economic development tools to help improve the corridor.

The Prairie Avenue plan estimates that new development could increase property values by approximately $6.19 million, with all project costs expected to be repaid through new tax revenue within the 27-year lifespan of the district.

Essentially, a TID helps fund improvements to an area; the costs of the improvements are then paid back through the increased taxes through the improved property values.

The creation of TID No. 16 aligns with the Prairie Avenue Concept Plan, which outlines several key goals:

• Coordinate corridor-wide revitalization
• Encourage mixed-use and infill redevelopment
• Promote street-oriented building design with rear parking
• Improve visual appeal with added street trees and fewer pylon signs
• Enhance multimodal transportation options
• Expand multi-family housing opportunities
• Connect destinations with new wayfinding signage

 

Here is a step-by-step look at how a TID works:

1. The value of properties located within the TID boundary when the TID is created becomes the “Base Value” of the TID. The property taxes associated with the base value are still used for regular services such as public safety, education, and public services by each of the taxing entities (City, School District, County, Tech College).
2. The city upgrades public infrastructure within the TID by fixing roads, adding sidewalks, improving lighting, or upgrading parks.
3. The city works with existing property owners and developers to improve their properties or bring new businesses into the TID. All of these improvements increase the total property value of the TID. The added value to the TID, above the base value, is known as the “Increment”.
4. The taxes generated from the increment remain within the TID and are used to help pay for the improvements that were made.
5. After all the project costs are paid off (up to 27 years), the TID closes. All the newly created increment value gets added to the original base value and becomes available for public purposes, just like before the TID was created.