The city’s Tax Incremental Financing Committee addressed the financial details of the Capitol Square Revitalization project and brought to light a possible $5.7 million in extra funds available for further spending.
The project falls within a district created in 1994 which allows for TIF allocations. If the current proposal were to pass — allocating about $2 million for improvements — the district would remain open until 2012.
Under state law, expenditures can be made within a half-mile of an existing TIF district. This law — created in 2006 — factors into the project plan, as it will be used to commence improvements to some of the streets jutting off the Capitol.
Joe Gromacki, the city’s TIF coordinator, said the city would normally create an amended TIF boundary but the current situation lends itself to a different approach.
“This district has some extra cash and [the half-mile rule is] the most practical way to do it,” Gromacki said.
City Comptroller Dean Brasser said extra money is now available for spending within the district because the value created by it was originally underestimated.
Amounting to $5.7 million, the money is available for use, but according to Gromacki, no plans exist that would make use of the money.
This amount of undirected money caused some concern for members of the review board. Board member and Vice President of Infrastructure Services for Madison College Roger Price said he would want some language added to the project plan requiring any new plans for potential uses of the $5.7 million to have board approval.
Gromacki said he was uncomfortable with taking the $5.7 million out from the accounting; he said he wants the TIF district to accurately reflect what funding is available and not underreport the potential funds.
Lucy Mathiak, vice president of the Madison School Board, said the board is against the project proposal.
In a time when the schools are cutting classes and operating “by the skin of their teeth,” Mathiak said she does not want the large properties in the TIF district to be off the tax rolls. She added this will have a direct financial affect on schools.
The proposal will come before the City Council in two weeks.
