A plan to financially assist of its Southridge Mall location is taking shape as the Village's Joint Review Board began deliberating it Monday morning.
The panel, made up of representatives from the Greendale's separate taxing bodies, was presented with the option to create of a to help the store finance its $8.5 million renovation.
According to village manager Todd Micheals, the municipality would commit about $2 million through a TIF district, which uses future property taxes from the development to pay off loans needed to create the development.
"We anticipate that we will get some ancillary projects from it," he said.
The TIF would be constructed with a 15-year payback, said Michaels, who noted the village just sold the bonds with a 3.7 percentage rate the second Southridge Mall TIF.
That is one percent less than the village anticipated.
"That is fantastic for this district because (it means) that it will be closing out earlier," Michaels said.
Given what the village has experienced with the second TIF, Michaels said he is optimistic on the prospect of the third TIF.
"This one is fairly simple. It is one property owner and one developer agreement," he told the board. "It's a guaranteed pay back and guaranteed assessed values."
along the South 76th Street Corridor, adjacent to Southridge Mall. The second TIF district was approved in December to help the $52 million renovation of Southridge Mall.
"You are starting to see the outgrowth of excitement starting to occur," said Village President John Hermes. "This is good for the whole region, as a regional mall. This will serve the economic corridor and 76th Street district."
, which is expected to occur in the spring 2012.
"You can't put a brand new building up and put them (the other mall anchor stores) at a competitive disadvantage," Micheals said.
Village officials and mall owners have discussed remodeling opportunities with JCPenney, one of the mall's other anchor stores, according to Michaels.
"Their store and Sears are pretty fresh inside. It's not the same situation since they are not direct competitors. Macy's and Boston Store are more direct competitors," said Michaels, who noted that there is about $50 million in private development money in the current Southridge Mall projects.
The Joint Review Board is scheduled to meet again to discuss the third TIF at 9 a.m. Sept. 21.
Understanding a TIF district
According to the Village a TIF district will not have negative impact on resident’s taxes. “The base taxes paid by the properties within the tax incremental financing(TIF) district to the Village of Greendale, the Greendale School District, Milwaukee County, and the Milwaukee Metropolitan Sewage District will be the same with or without the TIF. To further clarify, the base taxes paid by any property with the TIF district will be the same whether or not the TIF is implemented.”
TIF districts use future property taxes from the development to pay off loans needed to create the development. Property taxes from new developments are used solely to pay off the loan. Once the loan is covered, the development goes on the tax rolls and pays out to local schools, local government, county government, technical colleges and the state.