City Closes TIF District, Returning $6.5M To Tax Rolls
The TIF district, formed in 2000, supported the expansion of Nucor in the Northbranch Industrial Park.
Oak Creek has dissolved a tax-incremental financing district in a move that will return $6.5 million to tax rolls.
The TIF was created in 2000 to support the expansion of Nucor, then called Milwaukee Steel Converting, at 400 W. Burkhard Court in the Northbranch Industrial Park.
The business expansion has resulted in an additional tax value of $4.6 million, according to a report to council members. The project costs for the TIF district, which mostly went to expand a public street, were $722,528. The city has received the tax increments necessary to pay the project costs and can now close the district.
"It's really a great example of how the city can invest in the future of its companies, of its businesses, of its business parks, and get that paid back in a very reasonable amount of time," said Doug Seymour, the community's development director. He noted Nucor has found much success in Oak Creek, including its award last month as the South Suburban Chamber's Business of the Year.
TIF districts allow municipalities or developers to borrow money for infrastructure improvements and use the resulting tax increment to pay back the debt.
City Administrator Gerald Peterson said he has pushed for the city to dissolve TIF districts as soon as possible to get properties back on tax rolls.
"We're in a pretty good position in these districts that we have the ability ... to support and attract business at a variety of locations in the community," he said.