The Madison Plan Commission approved a resolution Monday allocating approximately $2 million in Tax Increment Financing funds to complete the renovation of Capitol Square.

The commission also approved the project’s use of the “half-mile” rule, which, under Wisconsin state TIF law, states a municipality may engage in public works improvements up to a half-mile outside of a TIF district. The half-mile rule, which has been utilized only once before in Madison, will allow for the completion of the entire Square and its side streets.

The sponsor of the Capitol Square Revitalization resolution, Ald. Mike Verveer, District 4, said the key to getting the project underway next year was the approval of the half-mile rule, by which the extensive TIF district expansion process is circumvented.

The funding for this project was approved by the City Council last week as part of the 2010 capital budget.

Under current plans, improvements include new benches, trash and recycling receptacles, planters, bicycle racks, sidewalk and landscaping, as well as the installation of a new irrigation system. Additionally, the project includes money to construct a plaza in front of the Madison Children’s Museum.

The project, Verveer said, will create uniformity among the currently “mismatched” streetscape of the square and one block of each of its surrounding side streets. Furthermore, he said the improved aesthetics will help businesses around the Square.

Verveer said the project is in response to the TIF district — originally created in 1994 — being slated for closure in 2010. With the approval of the resolution, the district will remain open, which will allow for the completion of the Capitol Square renovation.

During the public hearing, Madison TIF Coordinator Joe Gromacki responded to concerns regarding the flexibility of current project plans, saying the plan merely outlines the improvements the city can make with TIF funds but does not get into the specifics of — for example — the color of street signs.

Mark Olinger, director of the Madison Department of Planning and Community and Economic Development, said the amendment passed unanimously because the city wants to see the project completed soon.

“Instead of dragging [the improvements] out over years, this allows us to get them all done basically next year and keep disruption to a minimum,” Olinger said.

While the project may not create as many jobs as the Edgewater Hotel reconstruction or the new Central Library, Verveer said the project will offer employment opportunities for a fair amount of construction workers.

The resolution will go before the Board of Estimates Nov. 30 and back to the City Council Dec. 8. The TIF Joint Review Board, which is comprised of representatives from each of the property taxing jurisdictions, will meet early next year to make a final decision on the plan.

If approved, construction would begin in the spring and is expected to be completed by the end of summer.

Despite the long process the project will have to go through before construction can begin, Verveer said he anticipates smooth sailing over the next few months.