West-side Tax Increment District could be extended

A TID, also know a Tax Increment Financing District or TIF District, is a form of economic development that can help improve part of a city.

It sets a zone of taxable property to fund improvements. Then, as the value of properties grow, municipalities recoup that cost.

A debate over affordable housing in one Wausau TID, near Aspirus Hospital on Wausau’s west side, continued last week.

The Wausau Economic Development Committee narrowly passed a measure that recommends extending TID 7 by a year.

The city’s Finance Committee had tabled the extension last month.

If approved by the city council, the extension would free up nearly 2 million dollars for affordable housing projects.

Patrick Gatterman is Wausau’s Economic Development Manager.

“Ultimately we have to adopt a resolution describing the use of these funds by the first part of January,” Gatterman said at the Dec. 2 meeting.

Gatterman outlined three options for the TID.

If they close the district, it would generate over $400,000 for the city’s 2027 budget.

That money would save around four firefighter positions.

Another option outlined by Gatterman would be to extend the district and free up the nearly $2 million for affordable housing, but leave a nearly $70,000 shortfall for the 2027 city budget.

The committee ultimately went with a third option.

“Option three would be to keep TID 7 open for the extension both for affordable housing and to offer a one-time transfer of reserves for of $355,158 for the operating budget and firefighters,” Gatterman said.

The extension narrowly passed with a 3-2 vote with alders Terry Kilian and Victoria Tierney voting against.

The proposal now goes to the Finance Committee, and then to the City Council.

If the extension is approved, it would also leave less revenue available for the 2027 city budget.

The Finance Committee is set to meet tomorrow at 5:15 p.m. in the City Council Chambers, where they will also consider accepting funding for a downtown Wausau police officer position.

The City Council will meet immediately after the committee at 6:30 p.m.