Advertisement The aerial photo on display does not show areas near, or north of, the highway 53-35 interchange. It also does not show the development that has mushroomed north of McHugh Road. That is because the area envisioned in the TIF district was more than a mile and a half from the village limits until about two years ago.
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The above map shows Holmen’s proposed tax-increment financing district, which encompasses 941 acres on the village’s northern end. The TIF district’s project plan calls for spending up to nearly $22 million over the 20-year life of the district for public works projects, including water and sewer pipe extensions, upgrading the village’s water system storage and treatment capacity and possibly building a parking ramp. |
Holmen’s TIF district includes about 941 acres starting with the Gundersen Lutheran property at Highways 53 and 35, goes west to Highway XX, including the Seven Bridges Bank and some land south of Highway 35. The TIF district extends north of Old Highway 93.
The new TIF district will allow Holmen to use taxes collected from properties in the district to pay for improvements such as sewer and water service.
Financial consultant Sean Lentz explained that the present tax base, about $2.1 million worth, would be “frozen” for the next 20 years and the taxes collected on that base will continue to flow to the village, school district, the technical college district and the county.
Taxes collected on the increased value in the TIF district — the “increment” — go to a fund used for projects that encourage development in the area.
The TIF district project plan approved by the Planning Commission included $21.8 million in public works projects spread out over six phases. Most of the spending relates to extension of sewer and water pipes, although $3.1 million is included in 2014 for expansion of the village water utility’s storage and treatment capacity.
The final phase in 2019 calls for spending $2 million for a parking ramp, although there’s no specific plans for where it would go or whom it would serve.
“It was included at my suggestion, just based on recent issues with parking in La Crosse and I thought maybe within the next 20 years a similar issue could arise and we would wish we had included it,” Village Administrator Catherine Schmit said. “It’s one of those things that was included as a ‘just in case’ and will in all likelihood not actually materialize.”
The TIF district has a maximum life of 20 years, and Schmit said it would take 18 to 19 years to pay off the bonds for the $21.8 million in projects, based on conservative estimates.
Holmen School Board President Cheryl Hancock expressed concern that up to 300 homes could be in the TIF district, yet the schools would not get adequate tax revenues for them. Lentz said state law has allowed state aid to compensate for lower tax revenues during the life of the TIF district.
Documents supporting the TIF district predict about $80 million in development to take place in the district. It should generate far more taxes than the cost of the projects planned in the TIF district as well as provide vastly expanded tax base for the village. “There is a definite need for commercial expansion in our community,” Village President John Chapman said.
Holmen is carefully threading its way through the complicated TIF district process. It’s only the second time the village has established a TIF district. An important step was establishing a joint review board, a group that represents all the property tax collecting entities affected by the district, including representatives from the village board, school board, La Crosse County, the technical college board and an at-large public representative — Barry Ploessl, an investment representative active in community and civic affairs.
The village board must approve the TIF district at its Dec. 12 meeting and the joint review board will have another shot at it Dec. 17.
