Two alders are proposing to take out the Tax Incremental Financing funds allocated in Mayor Dave Cieslewicz’s 2010 capital budget for the Edgewater Hotel redevelopment.
The proposed changes stem from the 26 total amendments to the 2010 capital budget released Thursday.
Ald. Jed Sanborn, District 1, and Ald. Satya Rhodes-Conway, District 12, both made amendment change proposals that would take out the $8 million in TIF funds reserved for the Edgewater project. Cieslewicz also budgeted $8 million for the 2011 capital budget; however, this would not be subject to the amendment since it is only a “future projection.”
Both Sanborn and Rhodes-Conway said their amendments do not mean they necessarily do not support the project.
Sanborn said he did not think citizen taxpayer money should be used to subsidize the project.
“My idea of tax incremental funding goes back to the original idea, which is helping out blighted areas,” Sanborn said, adding he does not consider the Edgewater site a blighted area.
Rachel Strauch-Nelson, spokesperson for Cieslewicz, said the money should still be in the budget, and the inclusion of the TIF funds only sets a limit for the funds; the project may require less money after redesign. The City Council has the final say on whether or not to approve the funds.
Ald. Mike Verveer, District 4, said the amendment does not really matter either way, due to the nuances of TIF fund voting.
According to Verveer, if the amendment is successful and the TIF funding is taken out of the capital budget, approval of funds for the Edgewater project would require 15 alders to vote in favor rather than the normal 11. This occurs when a funding item comes outside of the normal budget process.
He also said while he was not exactly sure how he would vote on the subject, he is “inclined” to support Rhodes-Conway’s amendment.
Verveer said it is not unreasonable for a project of the Edgewater’s magnitude to require 15 alders to sign off on it.
Another budget amendment proposed would require a public referendum on the new Central Library proposal before it could get approved for funding.
The alders proposing the added referendum to the funding include Ald. Michael Schumacher, District 18, Ald. Judy Compton, District 16, Ald. Paul Skidmore, District 9, and Ald. Mark Clear, District 19.
The Board of Estimates votes on amendments to the budget, which would include the TIF money allocation amendment, at the committee’s next meeting Monday.
