The City of Two Rivers is making changes to two of its Tax Incremental Districts, or TIDs.
A TID is an area designated by a city that uses municipal taxes from a TIF to develop new projects or help existing ones.
The city is working to eliminate TID 13 and TID 16 because there are currently no development plans.
TID 13 would have been used for building a Culver’s restaurant, while TID 16 was created for development on the former Eggers East property.
Community Development Director Jeff Sachse told the council that there doesn’t seem to be any interest in bringing a Culver’s to the Cool City at this time.
TID 16 was supposed to help create new residential housing on the former Eggers property, but that project didn’t come to fruition either.
Sachse explained that money from the soon-to-be former TID would go toward other developments.
“It gives us the full 23 years of expenditure authority on a future Hamilton development,” he explained. “Because we can then bring those two parcels together, create a new TID, which then encompasses the entirety of that property.”
Sachse later explained to Seehafernews.com that money won’t be lost by ending the TIDS, but it will be redirected.
“Who actually benefits the most from TIDs being terminated early are the other taxing jurisdictions, the school district, the county, and the tech college district,” he noted. “Because they are able to capitalize on those value increases sooner then they would had the TID been allowed to expire naturally.”
Two Rivers is also giving two other developers with TID abilities until February to create a development plan, or those TIDs could be eliminated due to a lack of development.
That could mean the city could eliminate a total of four TIDS in the end.
Sachse says the city council could get a formal proposal by February.
