The Prescott City Council approved a resolution to establish Mixed-Use Tax Increment District (TID) #6, including its project plan and boundaries at a special meeting at City Hall on Sept. 30 with Alderpersons John Peterson and Adam Granquist absent.

TID #6 will span approximately 220 acres, situated north of US Highway 10 and east of the US Highway 10/State Highway 29/35 interchange. Joshua Low of Ehlers, Inc. presented an overview of TID #6 to the council after the plan commission approved to forward a recommendation at their Sept. 11 meeting. Low explained that for a city to meet its goals and visions, it’s important to fund the necessary incentives and infrastructure to develop the site. Tax Increment Financing (TIF) is a tool that cities use to encourage development to a specific area by creating a Tax Incremental District (TID). These districts, which are widely used in Wisconsin, allow cities to boost development without immediately raising taxes and it allows them to use future tax gains to fund current improvements. A TID usually only lasts for a set number of years and then the additional tax revenue goes back to the city and schools. A mixed-use TID usually lasts for 20 years but can be extended under certain circumstances.

“The whole purpose is to find a specific funding source for incentives and infrastructure that might be necessary to help you achieve your economic development or community development goals,” stated Low. “The entire purpose around tax increment financing is to take the revenue that’s generated by the new development to pay off whatever it is that you took out in debt or infrastructure on its own.”

TID #6 will be established to cover the costs of infrastructure improvements and development incentives necessary for the redevelopment of the former Sears Farms property. In addition to the anticipated increase in property value, the city expects the project to generate significant job creation. The city estimates that approximately $82 million in new land and improvement value will be generated by the project and this increase in value will be facilitated by the project costs incurred within TID #6. TID #6 is expected to generate enough tax increment to cover all project costs.

“Fortunately, we were able to do this,” began Mayor Robert Daugherty. “If we had waited any longer, we probably would have missed the window of opportunity.”

Low agreed stating, “Today is literally the last day that a TID can be created in 2024.”

The final Joint Review Board meeting was held Oct. 8 to vote on the project plan for TID #6.

National Scenic Byways Grant

As the meeting continued, City Administrator Matt Wolf explained that the Federal Highway Administration (FHWA) has opened the application window for the 2024 National Scenic Byways Program grants. The program was established in the United States to fund projects that enhance, preserve, and promote scenic byways.

“The grant provides financial assistance for projects that improve the experience of travelers on scenic byways. This could include road improvements, interpretive facilities, marketing, and protection of scenic, historic, and cultural resources,” explained Wolf.

The proposed trail or sidewalk will run along Jefferson Street, continue down Highway 35, cross a bridge over the ravine, and then head north along Dexter Street into Magee Park.

“The reason that we apply for this is specifically because Highway 35 is part of the Great River Road. That’s why this particular project that we’re proposing does meet the criteria,” he said.

The City of Prescott applied for the grant in 2022 and did not receive it. In 2023, the council decided to have Cedar Corporation apply for the 2023 grant; however, in August 2023, the federal government informed the Wisconsin Department of Transportation that the program would not be funded. Wolf explained that the final paperwork for the upcoming grant must be sent into the DOT by Nov. 18, 2024. If the city receives the grant, the project as proposed is estimated to cost approximately $1.2 million with an 80/20 split, meaning the city would be responsible for about $240,000. The council approved Cedar Corporation to apply for the National Scenic Byways Grant on the city’s behalf.