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The City of Manitowoc is amending its Tax Incremental Financing District for the former Mid-Cities and Lakeshore Mall properties.
TID 24 was created in January last year to allow Tycore Built to develop around 40 single-family homes, 168 apartments, and three commercial outlets by December 2031.
Manitowoc Community Development Director Adam Tegan said that during development, Tycore found an issue that would cost them $300,000 more than originally estimated for infrastructure.
“The development agreement, the way it was drafted, is that the developer is providing the costs of all the infrastructure and then over time, through the TIF, they are getting a pay-as-you-go (system),” he explained. “Once the city pays off our existing bonding and responsibilities, that remaining amount of tax dollars, a percentage will go back to the developer.”
That means the cost of an incentive will increase from $4.9 million to $5.2 million.
Tegan reminded the council that the city would be paid before the incentive is returned to Tycore.
“So there’s no impact necessarily to the city cash flow and our ability to pay the bonding that exists on this particular project,” he noted. “And if for some reason the project underperformed, for example, they would likely never even see this additional funding because the TIF would close and our obligations would still be met.”
The City of Manitowoc purchased the property in 2024 before knocking down the former Younkers building and seeding the area for development.
Tycore Built has since bought the property for future development. Construction could be seen as early as July.
