City votes to close 2 TIDs, open another

A project that ushered in significant economic growth in the city of Medford over the past two decades came to an end Monday night as council members voted to formally close Tax Incremental District (TID) No. 12.

The action was taken as the city works to form a new district focused on expanding the area’s residential base through a combination of rentals, workforce housing and infrastructure improvements.

TID 12 was formed in 2000 with the relocation of the Marathon Cheese plant serving as its anchor industry. Through the years TID 12 has been a massive success creating millions of dollars in tax base for the city and expanding the number of jobs in the community. The area has also been a springboard for other improvements.

TID 12, along with TID 8 are being closed to allow the city to have the ability to create a new TID to foster future growth. TID 8 is located along Skyline Drive and was created in 1997. TIDs work by the school district, county, and technical college districts giving up their share of the property taxes collected on the improvements for the city to pay for infrastructure improvements and items in the project plan. State law caps the amount of overall value that can be in TIDs to being no more than 12% of the total. For the city of Medford this amounts to $41 million in tax base. While TID 12 could have remained on the books to help pay off debt in other districts until 2030. The city sought to close it, along with TID 8 to allow the creation of TID 14 which will help with the redevelopment of the currently vacant land along Pep’s Drive into being a mixed use residential development with construction set to begin this year on apartment buildings planned for near CTH O.

TIDs are limited to funding the projects included in the project plan. However, just because a project is included in the plan, doesn’t mean it will take place.

Proposed projects, their projected year of construction and their estimated cost include: 1 Single Family Housing Subdivision Infrastructure in 2022 $750,000 2 Sewer and Water upgrades in 2022 $300,000 3 Parks Amenities in 2024 $200,000 4 Development Incentives in 2024 $100,000 5 Bicycle Paths in 2024 $215,000 6 Well #14 in 2026 $650,000 7 Commercial Spec Building in 2030 $500,000 8 Progressive Avenue Resurfacing in 2030 $250,000 9 Land Acquisition in 2030 $400,000 Total projects are expected to add up to about $3.365 million over the life of the district. TID 14 is projected to generate about $5.2 million in taxes over time, which will be more than enough to pay for any projects.

Council member Clem Johnson asked about the location of the bike path. This would be similar to the one that exists along the south side of Hwy 64 near the hospital and fire station. It provides mixed non-motorized use. Harris said the plan would be to have it go through the industrial park and then cross behind Black River Industries and connect to the rest of the city through Venoske Road keeping non motorized traffic away from vehicles. Prior to voting to close TIDs 8 and 12 and create TID 14, at Monday’s special council meeting, council members approved “affordable housing extensions” for TIDs 8 and 12.

“Other communities that have implemented the extension have had great success in increasing housing availability for low to moderate income residents. There are several ways that the money can be used to help residents with updating current housing stock,” Harris stated in a memo to council members.

Alderman Mike Bub had several questions about the extension including how long the money would be available and who will administer how the funds would be spent.

Harris explained that this is the first step to the city getting the funds, and that it would then be up to the city council to determine how they could be spent. He noted some communities have used them for low interest loans to fund sewer lateral upgrades or replace windows. “Once we have the money we can figure out how you want us to do it,” he said, noting the council would have control over how the funds were spent.

“How is it different than a HUD loan?” asked alderman Laura Holmes, suggesting that the Taylor County Housing Authority would refer people to using it.

Alderman Greg Knight spoke in support of the move noting that it would help increase the value of property in the city and give a boost to housing. He said with the city able to assess it through taxes, the risk of not being paid back on an improvement loan would be minimal.

Harris said there is a possibility the city could lose money, but said there are ways to minimize that such as using a reimbursement system to show that actual bills were paid.

“We control it,” said mayor Mike Wellner, noting this eliminates some of the gamble involved.

Between TID 8 and TID 12 Harris said there would be about $600,000 available to fund a program the city will develop.

Following the action to close the TIDs and utilize the law that allows for housing extensions, council members voted unanimously with Christine Weix absent to approve the creation of TID 14.