The Waunakee Village Board Tuesday approved an economic incentive package for Hovde Properties to help finance construction of a multi-unit commercial building on the Koltes Lumber site.
Already, crews have begun demolishing outbuildings on the property to make way for redevelopment the Waunakee Main Street cornerstone. The property lies within the village’s downtown Tax Incremental Finance (TIF) district, allowing it to receive TIF financing.
Within a TIF district, a developer can use the tax increment generated by additional value from new development or redevelopment to fund the project. During the life of the TIF district, taxing jurisdictions do not see the tax revenue rise from the added value of the development. Instead, the tax revenue stays within the TIF district. Once the TIF is retired, those taxes are returned to the taxing jurisdictions.
According to the developers agreement approved at the board’s Sept. 2 meeting, Hovde Properties will spend $4 million on the project, raising the property values.
But the tax increment from that increased value will return to the developer. Over the first five years, from 2017-2021, the village will return 90 percent of the tax increment to the developer. The following five years, from 2022-2026, the village will return 75 percent of tax increment to the developer. The maximum amount available to the developer over 10 years will be $850,000.
Todd Schmidt, village administrator, told the board the tax increment is a conservative estimate based on the $4 million of property value.
“It’s pretty much what we asked staff and council to put together,” said Steve Kraus, village trustee, before the board voted to approve the deal.
Hovde properties is planning a mix of retail on the ground floor and offices above with historic downtown Main Street facades. The outbuildings and newer additions are being demolished, but the original building from the 1800s will be preserved, Schmidt said in a press release.
“We are excited to be redeveloping this important site in downtown Waunakee. This property and original building have great history and we plan to restore the existing facade and use similar design elements on the new construction, all of which celebrate Main Street’s past” said Mike Slavish, President of Hovde Properties, in a release of the signed agreement. “Village staff and elected officials have been great to work with, and we look forward to being an important part of the community.”
Concept drawings for the development show a restaurant and a brew pub, but no specific tenants have been disclosed.
The project calls for 12,000 square feet of retail on the first floor, with 9,500 of office space on the second floor. In all, the development would be about 40,000 square feet.
The developers hope to have the project completed in June 2015.
“The Village Board is happy to see this project as another step in Waunakee’s downtown renewal. In particular, it is wonderful to see that the facade of the new structure pays homage to the historical roots of this site in our community,” said Village Board President John Laubmeier in a release.
Originally article by Roberta Baumann and published by The Waunakee Tribune. View the original article here.