TIF district proposed for local housing area
Plan calls for completing five streets to enhance development of The Woods. If OK’d, development tool would be 17th in city history.By: Tom Lawrence, The Daily Republic
- TIF district
A proposed tax increment financing district will come before the Mitchell City Council on Monday night.
If approved, the TIF district would be the 17th in city history. It would fund the extension of five streets and other infrastructure improvements around The Woods, a residential and, to a minor degree, commercial development on the eastern edge of Mitchell off First Avenue.
Mitchell lawyer Don Petersen represents developer Chuck Mauszycki Jr., who is heading up the project through a corporation known as CJM Inc.
Petersen has been working the city on the project, which has so far been approved by the Tax Increment Financing Committee and the Mitchell Planning and Zoning Commission.
A TIF is a development tool used by private companies in cooperation with government entities.
The designated TIF area continues to pay the same amount in property taxes to the government that creates the TIF.
The increase in taxes as a designated area grows in value is used to pay off infrastructure and public improvements that were funded by the government. That increase in value is referred to as the “increment.”
When the TIF district is ended, the area hopefully has increased in value and pays more in taxes, with all of it then going to the government.
The proposed TIF is for about $700,000 in city money, including capitalized interest, according to Petersen. It will be completed in five stages as streets are built and extended in The Woods.
“The project is basically to finance the installation of incomplete streets,” City Planner Neil Putnam said.
Those streets to be completed are East Hanson Avenue, which will add 490 feet as phase one of the project; adding the same length to East Birch Avenue as phase two; adding 490 feet to Snead Avenue as phase three; adding 490 feet to Charles Avenue as phase four; and adding about 451 feet to Mattie Street as phase five.
If it is fully developed, it would include 30 single-family homes and 30 multi-family units, such as duplexes, four-plexes and possibly apartments, Petersen said.
“It’s kind of all over the board. It’s consistent with what’s already out there,” he said. “We look at these as kind of introductory-level homes.”
Currently, the assessed value in the proposed TIF area is about $12 million, he said. If all 60 lots are sold and developed and the strip mall built, the value will increase to more than $21 million.
In addition, jobs and business opportunities will be added through the strip mall, Petersen said.
He said while no final plans have been made, retail businesses are planned for the strip mall, which would be located on lots 1, 2 and 3 along First Street.
Although this is designated as the city’s 17th TIF, two were never brought to fruition, according to Finance Officer Marilyn Wilson.
The first TIF was for Graphic Packaging International, and that was closed in January 2011, Wilson said.
She said most TIFs in Mitchell are set up for 20-year periods but can and often are paid off earlier.
Chris Huber/Republic As part of a tax increment financing district proposed by Chuck Mauszycki Jr., streets like Snead Avenue, pictured here on Monday afternoon in eastern Mitchell, would be extended to the east. Mauszycki hopes to improve the area to build more housing units and a strip mall.
Republic Graphic The shaded area on this map shows the approximate location of the proposed TIF district.
Tags: tax increment financing, news, updates, local, mitchell, housing, tif, development
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