|2/15/2021 12:57:00 PM|
TIF for ACES Property Management gets OK by Arena Board
by Meredith Anding
The Arena Village Board of Trustees will move forward with the ACES Property Management, LLC, Tax Incremental Financing (TIF) Developer's Performance Agreement they decided at their monthly board meeting last Tuesday.
The ACES agreement outlines the payment procedure to be followed by the village to finance the improvements and occupation of 314 Willow Street at the former elementary school location. The objective of the project is to convert the area into a multi-family residential and commercial facility. This project is meant to revitalize and improve the economic stability of the village through an increase in the property tax base.
The board approved ACES' submission of a Wisconsin CDI Grant Program Application. If received, the grant would help fund the project. Trustee
ACES Development co-owner Rick Kerska stated that he was content with the ACES agreement but specified that the agreement is waiting on project developers before it can be finalized.
The board considered two possible tax incremental financing options for the ACES agreement. Option A would have the village pay the developer 80 percent of the net tax increment annually with a $3,000 per year administration fee over 11 years. In option B the village would pay the developer 95 percent of the net tax increment annually with a $150 per year administration fee over 10 years. The payments are set to begin in 2023 and cease in 2031 or alternatively, end when village payments reach a maximum of $200,000. Village Attorney Paul Johnson had recommended that the board select Option A.
Village president pro-tem Kathy Stoltz asked whether incremental financing Option B was feasible, but expressed interest in selecting the option that would allow the project to conclude earlier. After brief discussion the board approved Option A (80 percent incremental payment) as recommended by Johnson. It was noted, noting that the motion will only be final if ACES receives the Wisconsin CDI Grant. If the grant is not received, the motion will be declared null and void. d
The board also approved the Restrictive Covenant Agreement. This agreement prohibits ACES from allowing any portion of the project property to be exempt from the levy of general real estate or personal property taxes following an agreement termination without written permission from the village board...
(See the rest of the story in the February 11 Chronicle issue)
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