Sussex officials are taking the first step toward creating a special taxing district that could spur development downtown.
The Village Board is authorizing the PFM Group to begin creating the scope and size of a possible tax increment financing district to aid in the redevelopment of an area stretching from the Piggly Wiggly to the Cannery Crossing project located near Main Street and Waukesha Avenue.
Village Administrators Jeremy Smith said the TIF district could stretch further on Main Street, depending on what recommendations are brought forth to the village.
“This is just a first step,” he said. “We could amend the boundaries as we go forward. It could make sense to make is longer and narrower, or it might make more sense to make it broader.”
PFM will now put together a preliminary plan for the TIF, which will be ready for the next Community Development Authority meeting. Officials hope to get the district approved by Sept. 30.
The first planning phase for the TIF district is expected to cost about $6,500 and the second phase will cost $8,500.
Communities use TIF districts as a way to spur development in a targeted area. Typically, a community will borrow money to help finance infrastructure improvements within the district. That debt is then repaid by the additional property taxes generated by those improvements. After that debt is paid, the additional property taxes from the development go to the municipality, school district and other taxing bodies.
In order to be created, a TIF district, the prepared plan must be subject to a public hearing, be published twice in a newspaper, gain committee approval, gain Village Board approval and approval by a joint committee composed of members from the village, Waukesha County, Hamilton School District and Waukesha Technical College.