Woodman's $3.5M TIF Moves Forward

Update, 8:29 p.m. Monday: The Redevelopment Authority unanimously approved the use of tax incremental financing for the Waukesha Woodman's Food Market – and to move forward with the project, according to Jennifer Andrews, community development specialist.

The project still needs the approval of several governmental bodies, including the Finance Committee and Waukesha Common Council.

The could be offering Woodman’s Food Market as much as $3.5 million in “pay as you go” expenses that would be paid “partially or in full through development incentives,” according to a draft document about the plan that is going before city boards.

The is looking at establishing a tax incremental finance district to entice Woodman’s Food Market to the corner of East Main Street and Highway 164. The proposal is going before the Redevelopment Authority at 6 p.m. tonight (Monday).

“This means that Woodman’s would pay for the $3,500,000 TID incentive up front and as the tax increment from the project is realized the city would reimburse Woodman’s for this up front cost,” the document states. “This scenario puts all the development risk on the Woodman’s. If the project does not result in the values anticipated then they will not be reimbursed the total $3,500,000 anticipated.

"In these uncertain economic times this scenario is provides the City with the economic development tool needed to satisfy the financial gaps in proposed development plans without putting the taxing entities at any financial risk.”

The project is expected to increase the property value of the Woodman’s site by $15 million.

“Additional property value and jobs will be added as the outlots develop,” the document states. “The redevelopment of this property to a commercial use is appropriate given is close proximity to residential neighborhoods. This area is no longer suitable for manufacturing operations.”

The city is estimating the costs for the multi-million dollar project include $1 million to $1.2 million for demolishing the former Spancrete facility, $200,000 to $250,000 in city-required architectural upgrades, $150,000 to $200,000 in site preparation, $125,000 to $150,000 in environmental testing, $400,000 to $600,000 for off-site infrastructure improvements, and $3 million to $4 million in land acquisition costs.

“Developing this facility in Waukesha is much more costly than building a new facility on a green field in another location,” the document states. “But for TIF assistance this development would not be occurring in Waukesha.”

A public hearing about the district’s boundaries will be held at 6:30 p.m. Oct. 12 at City Hall, 201 Delafield St.

A memo from Steve Crandell, community development director and interim city administrator, stated that any partnership with Woodman’s requires a developer’s agreement.

“TIF allows a city to use the taxes generated by new or improved properties in the district to pay for improvements that attract new development,” Crandell states in the memo. “Theses revenues are used to finance many worthwhile public improvements in the district such as sanitary sewers, storm sewers, water mains and the street improvements and developer incentives.

“… Tax Incremental Districts No. 21 is being created to encourage/promote redevelopment on property privately owned which is blighted. The creation of TID No. 21 will have a very favorable impact on the growth and prosperity of the area and the entire city.”

Meanwhile, a public hearing will be held at 7:30 p.m. Oct. 4 during the Waukesha Common Council meeting as the council is being asked to approve rezoning the property from an industrial use to a commercial use. The Plan Commission voted unanimously Wednesday night to recommend the Common Council change the zoning.

is expected to open in summer of 2013 at the site. Construction on the grocery store is planned for 2012, pending all government approvals.