As I wrote about recently, South Milwaukee is not unique in feeling the impacts of declining property values on its tax incremental financing districts.
In fact, two of our closest neighbors are in a similar situation.
The Milwaukee Journal Sentinel details the South Shore TID situation well here. From it:
South Milwaukee, Cudahy and St. Francis have common challenges. All three cities are older industrial communities with limited population growth.
In South Milwaukee, two tax districts have debts coming due at the end of 2013, and there’s a possibility that property taxes from new development within the districts would fall short in making those debt payments, said City Administrator Tamara Mayzik.
So the Common Council, at its March 20 meeting, will consider a proposal to sell $1.5 million in bonds and use that newly borrowed cash to refinance the debt tied to those tax districts, Mayzik said. That would allow the city to save money by borrowing at lower interest rates and avoid the possible shortfall, she said.
The tax districts have been hurt by lagging property values at two condominium developments, Marquette Square and Heritage Reserve, said City Engineer Kyle Vandercar.
Marquette Square, 920 Marquette Ave., was completed, but some of its units are being rented as apartments because of a lack of condo buyers, Vandercar said. At Heritage Reserve, in the 2600 block of Ninth Ave., only about one-third of the planned ranch-style units have been built, he said.
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