66.46(2)(f)1.c.
c. Real property assembly costs, meaning any deficit incurred resulting from the sale or lease as lessor by the city of real or personal property within a tax incremental district for consideration which is less than its cost to the city.
66.46(2)(f)1.d.
d. Professional service costs, including, but not limited to, those costs incurred for architectural, planning, engineering, and legal advice and services.
66.46(2)(f)1.e.
e. Imputed administrative costs, including, but not limited to, reasonable charges for the time spent by city employes in connection with the implementation of a project plan.
66.46(2)(f)1.f.
f. Relocation costs, including, but not limited to, those relocation payments made following condemnation under
ss. 32.19 and
32.195.
66.46(2)(f)1.g.
g. Organizational costs, including, but not limited to, the costs of conducting environmental impact and other studies and the costs of informing the public with respect to the creation of tax incremental districts and the implementation of project plans.
66.46(2)(f)1.h.
h. The amount of any contributions made under
s. 66.431 (13) in connection with the implementation of the project plan.
66.46(2)(f)1.i.
i. Payments made, in the discretion of the local legislative body, which are found to be necessary or convenient to the creation of tax incremental districts or the implementation of project plans.
66.46(2)(f)1.j.
j. That portion of costs related to the construction or alteration of sewerage treatment plants, water treatment plants or other environmental protection devices, storm or sanitary sewer lines, water lines, or amenities on streets or the rebuilding or expansion of streets the construction, alteration, rebuilding or expansion of which is necessitated by the project plan for a district and is within the district.
66.46(2)(f)1.k.
k. That portion of costs related to the construction or alteration of sewerage treatment plants, water treatment plants or other environmental protection devices, storm or sanitary sewer lines, water lines, or amenities on streets outside the district if the construction, alteration, rebuilding or expansion is necessitated by the project plan for a district, and if at the time the construction, alteration, rebuilding or expansion begins there are improvements of the kinds named in this subdivision on the land outside the district in respect to which the costs are to be incurred.
66.46(2)(f)2.
2. Notwithstanding
subd. 1., none of the following may be included as project costs for any tax incremental district for which a project plan is approved on or after July 31, 1981:
66.46(2)(f)2.a.
a. The cost of constructing or expanding administrative buildings, police and fire buildings, libraries, community and recreational buildings and school buildings.
66.46(2)(f)2.b.
b. The cost of constructing or expanding any facility, if the city generally finances similar facilities only with utility user fees.
66.46(2)(f)2.c.
c. General government operating expenses, unrelated to the planning or development of a tax incremental district.
66.46(2)(f)3.
3. Notwithstanding
subd. 1., project costs may not include any expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by the city for newly platted residential development for any tax incremental district for which a project plan is approved after September 30, 1995.
66.46(2)(g)
(g) "Project plan" means the properly approved plan for the development or redevelopment of a tax incremental district, including all properly approved amendments thereto.
66.46(2)(i)
(i) "Tax increment" means that amount obtained by multiplying the total county, city, school and other local general property taxes levied on all taxable property within a tax incremental district in a year by a fraction having as a numerator the value increment for that year in such district and as a denominator that year's equalized value of all taxable property in the district. In any year, a tax increment is "positive" if the value increment is positive; it is "negative" if the value increment is negative.
66.46(2)(j)
(j) "Tax incremental base" means the aggregate value, as equalized by the department of revenue, of all taxable property located within a tax incremental district on the date as of which such district is created, determined as provided in
sub. (5) (b). The base of districts created before October 1, 1980, shall exclude the value of property exempted under
s. 70.111 (17).
66.46(2)(k)
(k) "Tax incremental district" means a contiguous geographic area within a city defined and created by resolution of the local legislative body, consisting solely of whole units of property as are assessed for general property tax purposes, other than railroad rights-of-way, rivers or highways. Railroad rights-of-way, rivers or highways may be included in a tax incremental district only if they are continuously bounded on either side, or on both sides, by whole units of property as are assessed for general property tax purposes which are in the tax incremental district. "Tax incremental district" does not include any area identified as a wetland on a map under
s. 23.32.
66.46(2)(L)
(L) "Taxable property" means all real and personal taxable property located in a tax incremental district.
66.46(2)(m)
(m) "Value increment" means the equalized value of all taxable property in a tax incremental district in any year minus the tax incremental base. In any year "value increment" is positive if the tax incremental base is less than the aggregate value of taxable property as equalized by the department of revenue; it is negative if that base exceeds that aggregate value.
66.46(3)
(3) Powers of cities. In addition to any other powers conferred by law, a city may exercise any powers necessary and convenient to carry out the purposes of this section, including the power to:
66.46(3)(a)
(a) Create tax incremental districts and to define the boundaries of such districts;
66.46(3)(b)
(b) Cause project plans to be prepared, to approve such plans, and to implement the provisions and effectuate the purposes of such plans;
66.46(3)(d)
(d) Deposit moneys into the special fund of any tax incremental district; or
66.46(3)(e)
(e) Enter into any contracts or agreements, including agreements with bondholders, determined by the local legislative body to be necessary or convenient to implement the provisions and effectuate the purposes of project plans. Such contracts or agreements may include conditions, restrictions, or covenants which either run with the land or which otherwise regulate the use of land.
66.46(3)(f)
(f) Designate, by ordinance or resolution, the local housing authority, the local redevelopmental authority, or both jointly, or the local community development authority, as agent of the city, to perform all acts, except the development of the master plan of the city, which are otherwise performed by the planning commission under this section and
s. 66.435.
66.46(4)
(4) Creation of tax incremental districts and approval of project plans. In order to implement the provisions of this section, the following steps and plans are required:
66.46(4)(a)
(a) Holding of a public hearing by the planning commission at which interested parties are afforded a reasonable opportunity to express their views on the proposed creation of a tax incremental district and the proposed boundaries thereof. Notice of such hearing shall be published as a class 2 notice, under
ch. 985. Prior to such publication, a copy of the notice shall be sent by first class mail to the chief executive officer or administrator of all local governmental entities having the power to levy taxes on property located within the proposed district and to the school board of any school district which includes property located within the proposed district. For any county with no chief executive officer or administrator, this notice shall be sent to the county board chairperson.
66.46(4)(b)
(b) Designation by the planning commission of the boundaries of a tax incremental district recommended by it to be created and submission of such recommendation to the local legislative body.
66.46(4)(c)
(c) Identification of the specific property to be included under
par. (gm) 4. as blighted or in need of rehabilitation or conservation work. Owners of the property identified shall be notified of the proposed finding and the date of the hearing to be held under
par. (e) at least 15 days prior to the date of the hearing. In cities with a redevelopment authority under
s. 66.431, the notification required under this paragraph may be provided with the notice required under
s. 66.431 (6) (b) 3., if the notice is transmitted at least 15 days prior to the date of the hearing to be held under
par. (e).
66.46(4)(d)
(d) Preparation and adoption by the planning commission of a proposed project plan for each tax incremental district.
66.46(4)(e)
(e) At least 30 days before adopting a resolution under
par. (gm), holding of a public hearing by the planning commission at which interested parties are afforded a reasonable opportunity to express their views on the proposed project plan. The hearing may be held in conjunction with the hearing provided for in
par. (a). Notice of the hearing shall be published as a class 2 notice, under
ch. 985. The notice shall include a statement advising that a copy of the proposed project plan will be provided on request. Prior to such publication, a copy of the notice shall be sent by 1st class mail to the chief executive officer or administrator of all local governmental entities having the power to levy taxes on property within the district and to the school board of any school district which includes property located within the proposed district. For any county with no chief executive officer or administrator, this notice shall be sent to the county board chairperson.
66.46(4)(f)
(f) Adoption by the planning commission of a project plan for each tax incremental district and submission of the plan to the local legislative body. The plan shall include a statement listing the kind, number and location of all proposed public works or improvements within the district or, to the extent provided in
sub. (2) (f) 1. k., outside the district, an economic feasibility study, a detailed list of estimated project costs, and a description of the methods of financing all estimated project costs and the time when the costs or monetary obligations related thereto are to be incurred. The plan shall also include a map showing existing uses and conditions of real property in the district; a map showing proposed improvements and uses in the district; proposed changes of zoning ordinances, master plan, if any, map, building codes and city ordinances; a list of estimated nonproject costs; and a statement of the proposed method for the relocation of any persons to be displaced. The plan shall indicate how creation of the tax incremental district promotes the orderly development of the city. The city shall include in the plan an opinion of the city attorney or of an attorney retained by the city advising whether the plan is complete and complies with this section.
66.46(4)(g)
(g) Approval by the local legislative body of a project plan prior to or concurrent with the adoption of a resolution under
par. (gm). The approval shall be by resolution which contains findings that the plan is feasible and in conformity with the master plan, if any, of the city.
66.46(4)(gm)
(gm) Adoption by the local legislative body of a resolution which:
66.46(4)(gm)1.
1. Describes the boundaries, which may, but need not, be the same as those recommended by the planning commission, of a tax incremental district with sufficient definiteness to identify with ordinary and reasonable certainty the territory included therein. The boundaries shall include only those whole units of property as are assessed for general property tax purposes. Property standing vacant for an entire 7-year period immediately preceding adoption of the resolution creating a tax incremental district may not comprise more than 25% of the area in the tax incremental district, unless the tax incremental district is suitable for industrial sites under
subd. 4. a. and the local legislative body implements an approved project plan to promote industrial development within the meaning of
s. 66.52. In this subdivision, "vacant property" includes property where the fair market value or replacement cost value of structural improvements on the parcel is less than the fair market value of the land. In this subdivision, "vacant property" does not include property acquired by the local legislative body under
ch. 32 or property included within the abandoned Park East freeway corridor or the abandoned Park West freeway corridor in Milwaukee county.
66.46(4)(gm)2.
2. Creates such district as of a date therein provided. If the resolution is adopted during the period between January 2 and September 30, then such date shall be the next preceding January 1. If such resolution is adopted during the period between October 1 and December 31, then such date shall be the next subsequent January 1. If the resolution is adopted on January 1, the district shall have been created as of the date of the resolution.
66.46(4)(gm)3.
3. Assigns a name to such district for identification purposes. The first such district created shall be known as "Tax Incremental District Number One, City of ....". Each subsequently created district shall be assigned the next consecutive number.
66.46(4)(gm)4.a.
a. Not less than 50%, by area, of the real property within such district is at least one of the following: a blighted area; in need of rehabilitation or conservation work, as defined in
s. 66.435 (2m) (b); or suitable for industrial sites within the meaning of
s. 66.52 and has been zoned for industrial use; and
66.46(4)(gm)4.b.
b. The improvement of such area is likely to enhance significantly the value of substantially all of the other real property in such district. It shall not be necessary to identify the specific parcels meeting such criteria; and
66.46(4)(gm)4.bm.
bm. The project costs relate directly to eliminating blight, directly serve to rehabilitate or conserve the area or directly serve to promote industrial development, consistent with the purpose for which the tax incremental district is created under
subd. 4. a.; and
66.46(4)(gm)4.c.
c. Either the equalized value of taxable property of the district plus all existing districts does not exceed 7% of the total equalized value of taxable property within the city or the equalized value of taxable property of the district plus the value increment of all existing districts within the city does not exceed 5% of the total equalized value of taxable property within the city.
66.46(4)(gm)5.
5. Confirms that any real property within the district that is found suitable for industrial sites and is zoned for industrial use under
subd. 4. a. will remain zoned for industrial use for the life of the tax incremental district.
66.46(4)(gs)
(gs) Review by a joint review board, acting under
sub. (4m), that results in its approval of the resolution under
par. (gm).
66.46(4)(h)1.1. Subject to
subd. 2., the planning commission may at any time, by resolution, adopt an amendment to a project plan, which amendment shall be subject to approval by the local legislative body and approval of the amendment shall require the same findings as provided in
par. (g). Any amendment to a project plan is also subject to review by a joint review board, acting under
sub. (4m). Adoption of an amendment to a project plan shall be preceded by a public hearing held by the plan commission at which interested parties shall be afforded a reasonable opportunity to express their views on the amendment. Notice of the hearing shall be published as a class 2 notice, under
ch. 985. The notice shall include a statement of the purpose and cost of the amendment and shall advise that a copy of the amendment will be provided on request. Prior to such publication, a copy of the notice shall be sent by 1st class mail to the chief executive officer or administrator of all local governmental entities having the power to levy taxes on property within the district and to the school board of any school district which includes property located within the proposed district. For any county with no chief executive officer or administrator, this notice shall be sent to the county board chairperson.
66.46(4)(h)2.
2. Not more than once during the 7 years after the tax incremental district is created, the planning commission may adopt an amendment to a project plan under
subd. 1. to modify the district's boundaries by adding territory to the district that is contiguous to the district and that is served by public works or improvements that were created as part of the district's project plan. Expenditures for project costs that are incurred because of an amendment to a project plan to which this subdivision applies may be made for not more than 3 years after the date on which the local legislative body adopts a resolution amending the project plan.
66.46(4)(i)
(i) The local legislative body shall provide the joint review board with the following information and projections:
66.46(4)(i)1.
1. The specific items that constitute the project costs, the total dollar amount of these project costs to be paid with the tax increments, and the amount of tax increments to be generated over the life of the tax incremental district.
66.46(4)(i)2.
2. The amount of the value increment when the project costs in
subd. 1. are paid in full and the tax incremental district is terminated.
66.46(4)(i)3.
3. The reasons why the project costs in
subd. 1. may not or should not be paid by the owners of property that benefits by improvements within the tax incremental district.
66.46(4)(i)4.
4. The share of the projected tax increments in
subd. 1. estimated to be paid by the owners of taxable property in each of the taxing jurisdictions overlying the tax incremental district.
66.46(4)(i)5.
5. The benefits that the owners of taxable property in the overlying taxing jurisdictions will receive to compensate them for their share of the projected tax increments in
subd. 4.
66.46(4)(k)
(k) Calculation by the local assessor of the value of all tax-exempt city-owned property, except property described in
sub. (5) (bm), in the proposed tax incremental district, as of the day of the district's creation. This information shall be sent to the department of revenue for inclusion in the tax incremental district's initial tax incremental base under
sub. (5) (b).
66.46(4m)(a)(a) Any city that seeks to create a tax incremental district or amend a project plan shall convene a joint review board to review the proposal. The board shall consist of one representative chosen by the school district that has power to levy taxes on the property within the tax incremental district, one representative chosen by the technical college district that has power to levy taxes on the property within the tax incremental district, one representative chosen by the county that has power to levy taxes on the property within the tax incremental district, one representative chosen by the city and one public member. If more than one school district, more than one technical college district or more than one county has the power to levy taxes on the property within the tax incremental district, the unit in which is located property of the tax incremental district that has the greatest value shall choose that representative to the board. The public member and the board's chairperson shall be selected by a majority of the other board members before the public hearing under
sub. (4) (a) or
(h) 1. is held. All board members shall be appointed and the first board meeting held within 14 days after the notice is published under
sub. (4) (a) or
(h) 1. Additional meetings of the board shall be held upon the call of any member. The city that seeks to create the tax incremental district or to amend its project plan shall provide administrative support for the board. By majority vote, the board may disband following approval or rejection of the proposal.
66.46(4m)(b)1.1. The board shall review the public record, planning documents and the resolution passed by the local legislative body or planning commission under
sub. (4) (gm) or
(h) 1. As part of its deliberations the board may hold additional hearings on the proposal.
66.46(4m)(b)2.
2. No tax incremental district may be created and no project plan may be amended unless the board approves the resolution adopted under
sub. (4) (gm) or
(h) 1. by a majority vote not less than 10 days nor more than 30 days after receiving the resolution.
66.46(4m)(b)3.
3. The board shall submit its decision to the city no later than 7 days after the board acts on and reviews the items in
subd. 2.
66.46(4m)(c)1.1. The board shall base its decision to approve or deny a proposal on the following criteria:
66.46(4m)(c)1.a.
a. Whether the development expected in the tax incremental district would occur without the use of tax incremental financing.
66.46(4m)(c)1.b.
b. Whether the economic benefits of the tax incremental district, as measured by increased employment, business and personal income and property value, are insufficient to compensate for the cost of the improvements.
66.46(4m)(c)1.c.
c. Whether the benefits of the proposal outweigh the anticipated tax increments to be paid by the owners of property in the overlying taxing districts.
66.46(4m)(c)2.
2. The board shall issue a written explanation describing why any proposal it rejects fails to meet one or more of the criteria specified in
subd. 1.
66.46(5)
(5) Determination of tax increment and tax incremental base. 66.46(5)(a)(a) Upon the creation of a tax incremental district or upon adoption of any amendment subject to
par. (c), its tax incremental base shall be determined as soon as reasonably possible.
66.46(5)(b)
(b) Upon application in writing by the city clerk, in such form as the department of revenue may prescribe, the department shall determine according to its best judgment from all sources available to it the full aggregate value of the taxable property and, except as provided in
par. (bm), of the city-owned property in the tax incremental district. The department shall certify this aggregate valuation to the city clerk, and the aggregate valuation shall constitute the tax incremental base of the tax incremental district. The city clerk shall complete these forms and submit the application on or before December 31 of the year the tax incremental district is created, as defined in
sub. (4) (gm) 2.
66.46(5)(be)
(be) Notwithstanding the time limits in
par. (b), if the city clerk of a city that created a tax incremental district in September 1994 files with the department of revenue, not later than March 30, 1996, the forms and application that were originally due on or before December 31, 1994, the tax incremental base of the district shall be calculated by the department of revenue as if the forms and application had been filed on or before December 31, 1994, and, until the tax incremental district terminates, the department of revenue shall allocate tax increments and treat the district in all other respects as if the forms and application had been filed on or before December 31, 1994, except that the department may not certify a value increment under
par. (b) before 1996.
66.46(5)(bm)
(bm) The value of real property owned by a city and used for police and fire buildings, administrative buildings, libraries, community and recreational buildings, parks, streets and improvements within any street right-of-way, parking facilities and utilities shall not be included in the tax incremental base established under
par. (b).
66.46(5)(c)
(c) If the city adopts an amendment to the original project plan for any district which includes additional project costs at least part of which will be incurred after the period specified in
sub. (6) (am) 1., the tax incremental base for the district shall be redetermined, if
sub. (4) (h) 2. applies to the amended project plan, by adding to the tax incremental base the value of the taxable property that is added to the existing district under
sub. (4) (h) 2. or, if
sub. (4) (h) 2. does not apply to the amended project plan, under
par. (b), as of the January 1 next preceding the effective date of the amendment if the amendment becomes effective between January 2 and September 30, as of the next subsequent January 1 if the amendment becomes effective between October 1 and December 31 and if the effective date of the amendment is January 1 of any year, the redetermination shall be made on that date. The tax incremental base as redetermined under this paragraph is effective for the purposes of this section only if it exceeds the original tax incremental base determined under
par. (b).
66.46(5)(ce)
(ce) If the city adopts an amendment, to which
sub. (4) (h) 2. applies, the tax incremental base for the district shall be redetermined, by adding to the tax incremental base the value of the taxable property that is added to the existing district under
sub. (4) (h) 2., as of the January 1 next preceding the effective date of the amendment if the amendment becomes effective between January 2 and September 30, as of the next subsequent January 1 if the amendment becomes effective between October 1 and December 31 and if the effective date of the amendment is January 1 of any year, the redetermination shall be made on that date. The tax incremental base as redetermined under this paragraph is effective for the purposes of this section only if it exceeds the original tax incremental base determined under
par. (b).
66.46(5)(cm)
(cm) The city clerk shall annually, after May 1 but before May 21, by written notice, inform the department of revenue of any amendment to the project plan which has been adopted. The city clerk shall also give written notice of the adoption of an amendment to the department of revenue within 60 days after its adoption. The department of revenue may prescribe forms to be used by the city clerk when giving notice as required by this paragraph.
66.46(5)(d)
(d) The department of revenue shall not certify the tax incremental base as provided in
par. (b) until it determines that each of the procedures and documents required by
sub. (4) (a),
(b),
(gm) or
(h) and
par. (b) has been timely completed and all notices required under
sub. (4) (a),
(b),
(gm) or
(h) timely given. The facts supporting any document adopted or action taken to comply with
sub. (4) (a),
(b),
(gm) or
(h) shall not be subject to review by the department of revenue under this paragraph.
66.46(5)(e)
(e) It is a rebuttable presumption that any property within a tax incremental district acquired or leased as lessee by the city, or any agency or instrumentality thereof, within the one year immediately preceding the date of the creation of such district was so acquired or leased in contemplation of the creation of such district. Such presumption may be rebutted by the city with proof that such property was so leased or acquired primarily for a purpose other than to reduce the tax incremental base. If such presumption is not rebutted, in determining the tax incremental base of such district, but for no other purpose, the taxable status of such property shall be determined as though such lease or acquisition had not occurred.
66.46(5)(f)
(f) The city assessor shall identify upon the assessment roll returned and examined under
s. 70.45 those parcels of property which are within each existing tax incremental district, specifying thereon the name of each district. A similar notation shall also appear on the tax roll made by the city clerk under
s. 70.65.
66.46(5)(g)
(g) The department of revenue shall annually give notice to the designated finance officer of all governmental entities having the power to levy taxes on property within each district as to the equalized value of such property and the equalized value of the tax increment base. Such notice shall also explain that the tax increment allocated to a city shall be paid to the city as provided under
sub. (6) (b) from the taxes collected.
66.46(6)
(6) Allocation of positive tax increments. 66.46(6)(a)(a) If the joint review board approves the creation of the tax incremental district under
sub. (4m), positive tax increments with respect to a tax incremental district are allocated to the city which created the district for each year commencing after the date when a project plan is adopted under
sub. (4) (g). The department of revenue shall not authorize allocation of tax increments until it determines from timely evidence submitted by the city that each of the procedures and documents required under
sub. (4) (d) to
(f) have been completed and all related notices given in a timely manner. The department of revenue may authorize allocation of tax increments for any tax incremental district only if the city clerk and assessor annually submit to the department all required information on or before the 2nd Monday in June. The facts supporting any document adopted or action taken to comply with
sub. (4) (d) to
(f) shall not be subject to review by the department of revenue under this paragraph. Thereafter, the department of revenue shall annually authorize allocation of the tax increment to the city that created such a district until the department of revenue receives a notice under
sub. (8) and the notice has taken effect under
sub. (8) (b), 27 years after the tax incremental district is created if the district is created before October 1, 1995, or 23 years after the tax incremental district is created if the district is created after September 30, 1995, whichever is sooner.
66.46(6)(am)1.1. For a tax incremental district that is created after September 30, 1995, no expenditure may be made later than 7 years after the tax incremental district is created, and for a tax incremental district that is created before October 1, 1995, no expenditure may be made later than 10 years after the tax incremental district is created.
66.46(6)(am)2.
2. The limitations on the period during which expenditures may be made under
subd. 1. do not apply to:
66.46(6)(am)2.b.
b. Expenditures authorized by the adoption of an amendment to the project plan under
sub. (5) (c).
66.46(6)(am)3.
3. For tax incremental districts for which the resolution under
sub. (4) (gm) is adopted on or after July 31, 1981, no expenditure may be made before the date the project plan is approved, except for costs directly related to planning the tax incremental district. In this subdivision "expenditure" means the exchange of money for the delivery of goods or services.
