TIF District Creation On A Fast Track To Attract Unnamed Businesses

The and the Racine County Economic Development Committee are acting quickly on plans to expand the Franksville Business Park.

The Community Development Authority reviewed a , which calls for a 390-acre expansion, Tuesday night.

The administration hopes to have the tax incremental finance district in place so that an unnamed business can start building almost immediately and a second unnamed business would build in a year.

Tom Lebak, the Village Administrator, told members of the CDA the Village has two other TIF districts that have not gone well. The Twelve Oaks subdivision and the Western Publishing TIFs never got off the ground because of the economy, but those were not industrial projects.

“Our history here is not real good,” Lebak said. “Based on RCEDCs work on this though, we think this is a potential winner. But we’re being very cautious.”

A feasibility report written by Ehlers, a consulting firm the Village Board hired, calls for the expansion to occur in two phases, one that includes 152 acres and one that includes 238 acres. The first expansion would mostly serve two unnamed businesses, according to the report.

The two developments are expected create 70 jobs with an annual compensation between $35,000 and $55,000. And with the total build out of both phases, the district is expected to “spur” $66 to $88 million in new, and taxable, industrial development. The

The total cost of the infrastructure improvements carries a price tag of $12 million. However, 25 percent of the cost would likely be paid for with grants, and the Village or the developer would finance the remaining cost of the infrastructure project, which would cost $8.9 million for both phases. The money would be used to improve the truck route, utilities, roads, sewer and water service, and add a rail spur, signage and lighting. However, the project doesn’t have to be completed all at once, said an official with Ehlers.

Gordy Kacala, the executive director for the Racine County Economic Development Corporation, said the Village is still competing with other municipalities for the potential business.

“We are competing with other communities in the southern Midwest as well as Mexico,” Kacala said. “We do need to get affirmations from these companies that they are going to do these projects because without them, we have nothing.”

Kacala then explained several protections the Village could use to minimize the risk to the Village.

Next Step:

The Joint Review Board will meet at 5:30 p.m. Sept. 6 at the East Side Community Center, 6156 Douglas Ave. The board is made up of the taxing entities, Gateway, Racine Unified, the County and the Village Board that need to approve the project plan for the creation of the TIF district.

Following the Joint Review Board meeting, a public hearing will be held on the project.

To learn more about TIF districts, .