Madison city leaders are in the process of deciding if the city’s tax incremental funding will go toward funding the new Judge Doyle Square project or Madison’s School District.
Common Council recently approved plans to construct a convention center hotel in Judge Doyle Square along with a new parking garage. The project was originally planned to be funded with revenue generated by the city’s tax incremental District 25.
“The city of Madison will create a TIF district and what they’ll do is freeze the property tax to that district,” Ald. Scott Resnick, District 8, said. “Any additional revenue that comes in over the length of that district will come back to the city to reinvest in public projects.”
By keeping the tax district open during the 27-year span it is allotted by the state to remain open, the city will generate multimillions in revenue which could fund the JDS development project and other projects around the city.
If the city does not close tax incremental district 25, however, Madison’s School District will not receive its share of tax dollars until after 27 years. According to Resnick, closing the district will provide the city approximately $16 million in tax revenue which could be divided between the school district, the county and the city.
According to Resnick, city officials only have preliminary ideas to satisfy all parties with tax dollars.
“Eventually we’ll come to a conclusion on this, but it’s a little early to tell what the next steps will be,” Resnick said.
