The City of Madison proposed a $115 million plan to support communities in South Madison by allocating tax revenue toward economic development in the area.
The “South Madison Plan” was sent to the state’s Tax Increment Finance Joint Review Board Friday. It would create a Tax Increment Financing District called TID 51, directing $115 million towards economic development in South Madison neighborhoods bounded by Fish Hatchery Road, John Nolen Drive and the Beltline Highway.
The city looks to allocate approximately $50 million for public works projects in South Madison, including maintenance and restoration of public buildings and services. It would also provide $22 million to build affordable housing.
Mayor Satya Rhodes-Conway told the Wisconsin State Journal the city worked with residents and small businesses in South Madison to develop a plan that has community support.
“The creation of TID 51 will allow us to make significant, needed investments in South Madison, particularly in affordable housing and small business support,” Rhodes-Conway said. “The TID 51 plan is guided by what we heard over several years of deep engagement with the South Madison community, and the project it will fund will be shaped by community engagement as well.”
In addition, the plan would allocate $19.9 million for economic and community development assistance aimed at helping businesses in the area. Approximately $6 million of the economic and community development assistance will be allotted to small businesses.
TID allows governments to control the allocation of tax revenue in a specific geographic location and is used to invest in economic development and fund public projects that need additional assistance. Since 2005, when a similar initiative was enacted, community members have been consulted about how to address historical inequalities like redlining and gentrification in Madison, according to the city.
The plan will not raise additional taxes on residents in the district, and community members are not responsible for aiding projects, City of Madison Economic Development Director Matt Mikolajewski told NBC15. Funding for the project comes from existing income and property taxes collected by the city, as development growth increased tax revenue.
Other facets of the South Madison plan aim to ensure childcare is available to families, local nonprofits remain strong and transportation networks are accessible to residents.
The Common Council is expected to vote on final approval in the spring.