GRAFTON — The Grafton Village Board on Monday voted 4-3 to approve a special taxing district that they say will help address blighted properties just north of downtown and bring up the values of those around them.
Tax incremental district No. 6 includes 56 parcels totaling approximately 34.9 acres, stretching from just south of Washington Street north to Shoreland Lane and from 13th Avenue west to 9th Avenue.
In a TID, taxes generated on any improvements within the district go back toward paying for the upgrades, rather than going to the taxing entities — in this case, the village of Grafton, Ozaukee County, Grafton School District and Milwaukee Area Technical College. In Wisconsin, a TID district can exist for up to 27 years.
Village President Dan Delorit and Trustees Amy Luft, Mary Pat Fenton and Dave Armstrong voted for the TID, while Lisa Uribe Harbeck, Jim Miller and Andrew Schwartz voted against it.
According to the plan, more than 50% by area of the real property within a TID must be blighted area, as defined by state statutes. A key property eyed for rehabilitation is the Goldberg Foundry at 1019-1025 11th Ave. Village officials say that “previous attempts to reuse the building are no longer safe for occupancy.”
According to the 43-page project plan, as of Jan. 1, 2023, the real and personal property in TID No. 6 had an assessed base value of $13,948,300. A total of $6,079,179 in project costs is proposed, including estimated finance charges and interest.
As a result of the creation of this district, the village estimates that additional land and improvement value of approximately $17,811,500 (in 2024 dollars) may be created as a result of development and appreciation in the value of the existing properties.
“I am pleased that TID 6 is moving forward, and is resultant of a great deal of work by our staff and public input,” Delorit said.
He said the primary goal is to raise funds to remediate the Goldberg Foundry.
“After extensive research by our environmental contractor, we believe the Goldberg Foundry will give us the opportunity to improve one of the more useful and unsightly properties in Grafton. The residents of Grafton want to make sure the elected officials are creative in finding alternate methods to raise funds short of exceeding levy limits,” Delorit told the News Graphic.
He said that homes and businesses in the TID represent a “fantastic opportunity for improvements leading to higher valuations.”
He added that it’s very important to remember that no projects recommended will move forward without approval of the full Village Board and the committees, on which numerous citizen members sit.
According to the village, funds generated within the district are expected to significantly enhance the value of substantially all other real property in the district.
The project plan includes a Home Improvement Grant Program for properties within the TID boundary. While the first priority is to clean up and demolish the Goldberg Foundry, any funds left over after that will be the subject of discussions between village staff and the CDA on the grant program.
All property owners within the district will be notified when the program will begin accepting applications, which could be several years from now,” said Assistant Village Administrator and Community Development Director Jessica Wolff.
The village will not be borrowing funds for this project, so they will need to wait for the funds to build up over time to be able to award grants.
Schwartz said he likes the fact that the foundry is in the district, but said the money that is to be set aside for cleanup may not be enough. Since the initial study was done, he said, many costs have increased.
He also disagrees with the financial projections that were used to calculate the revenue. The $5 million expected to be generated by the Harmony Grove subdivision may be accurate, though Schwartz said it might be a bit high because he doesn’t think the homes will be built in time.
The former Clark Station property on Wisconsin Street west of Green Bay Road is also overestimated in value, he believes.
“They’re looking at a gain there of like $2 million. That to me says that they’re going to build a multi-story commercial building there,” Schwartz said. “And there hasn’t been any interest in that location.”
Luft supports the TID, citing the success the village has had with other previous and current tax incremental districts.
“The primary purpose of establishing TID No. 6 is to capture future tax growth in this area,” Luft said. “Even though the main blighted area is the Goldberg Foundry, I feel that the improvements resulting from the TID such as, road reconstruction, traffic signaling, trails and sidewalks, will benefit the Village as a whole.
Miller also voted against the TID when it came before the Community Development Authority in June. He told the News Graphic at the time that the package still includes things the village doesn’t need, while also incurring more debt for the village.
“We’ve already got TID 3 for three more years,” Miller said of the district in the village’s South Commercial District.
He likes that the Goldberg Foundry is included, as it is an “eyesore,” he said.
Among those things in the plan and shouldn’t be paid for with TID dollars, according to Miller, are a new eastbound left turn signal onto Washington Street from Wisconsin Avenue and upgrades to the Third Avenue Park.
He said the park is “relatively new” and that both costs can be incurred by their respective departments.
To read the entire project plan, go to https://tinyurl.com/6w522sju.