By Rachel Brands - March 20th 2023

 

BELOIT

 The City of Beloit is proposing the creation of a Tax Increment District to prepare for future development in the Gateway area.

The district is planned to be suitable for mixed use development, including potential for residential, commercial and marketing developments. The city is hopeful that the Tax Increment District (TID) will provide incentive for job creation and retention in the area, especially since Beloit has experienced success with Gateway in the past.

A meeting of the Joint Review Board to discuss and consider the proposed Tax Increment District No. 15 will be held at 4 p.m. on April 5 at City Hall, 100 State St.

A TID is a financing option that allows a municipality to fund infrastructure and other improvements through the property tax revenue on newly developed property. As the property values rise, the municipality uses the increased property taxes on that increment to fund the infrastructure improvements. The TID can close when all the project costs are paid. When a TID closes, all taxing jurisdictions — such as the city, school district, county, and technical college — can collect taxes on the full value of the development.

Beloit’s Gateway Business Park celebrated its 20th anniversary in 2021, and it oversaw the development of 545 acres of land with building space that represented over $200 million in capital assets and created nearly 3,000 jobs.

There are no existing incentives for businesses to move to the Gateway area at present, according to Eric Miller, the Finance and Administrative Services Director for the City of Beloit.

“It just depends on what the project is. There isn’t a boiler plate incentive that’s offered,” Miller said. “Each deal would be done independently based on the number of jobs they would create. It’s negotiable.”

The new proposed TID could result in projects funded by the city that include the promotion of the district, property acquisitions, infrastructure enhancements, and more.

The creation of Gateway, which was funded by a previous Tax Increment District, created $384 million in property value for Beloit. The new district will be paid for by future increased taxes due to the higher property value the district can bring.

“(Tax Increment Districts) are the most important development tool we have in the state of Wisconsin. They tend to be the driving factor behind economic development,” Miller said. “These districts are there to promote more jobs and more value for the city and the jurisdictions. It makes us more competitive for when businesses or companies are looking to relocate.”

The Tax Increment District proposal will be reviewed at the Joint Review Board meeting in April, although it requires City Council approval.

The Joint Review Board is made up of representatives from the City of Beloit, Rock County, Blackhawk Technical College, Clinton Community School District, and one additional community member.

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