Driving Growth and Opportunity: Economic Development in the Village

The Village's Comprehensive Plan is a forward-thinking framework designed to guide our community’s growth and development through the mid-21st century. Rooted in the requirements outlined by the State of Wisconsin, this plan ensures that we address essential elements such as housing, transportation, utilities, land use, natural resources, and community facilities, while staying true to the values and vision of our residents.

Our current plans position the Village to achieve the intermediate-growth trajectory outlined in the 2050 Comprehensive Plan Update (page 2), ensuring we meet projected goals for sustainable development and economic vitality.

The State of Wisconsin mandates that comprehensive plans are updated regularly and include measurable objectives to guide land-use decisions and promote sustainable, coordinated development. This ensures that local planning aligns with state statutes while addressing the unique needs of our Village.

The Comprehensive Plan reflects a commitment to sustainable growth, environmental stewardship, and maintaining the Village’s character. Together, we can create a vibrant and resilient future for all who call our Village home.

 

Adopted on May 6, 2024, the Downtown Revitalization Plan serves as a comprehensive guide to shaping the future of Kewaskum's downtown. Designed with community input and a focus on progress, this plan outlines key strategies to preserve the Village’s unique character while fostering growth, enhancing livability, and promoting economic vitality.

As a roadmap for decision-making and development, the plan provides clear goals to create a vibrant, welcoming downtown that supports local businesses, attracts visitors, and enhances the quality of life for residents. Discover how this guide will help us transform downtown Kewaskum into a thriving hub for generations to come.

A Tax Incremental District (TID) is a financial tool used by municipalities to promote economic development, redevelopment, or public improvements in a designated area. Established under Wisconsin Statutes Section 66.1105, a TID allows a municipality to invest in infrastructure and other improvements to stimulate private investment and increase property values. The key concept behind a TID is Tax Increment Financing (TIF): the increase in property tax revenue (referred to as the "increment") generated by the rise in property values within the district.

TIDs are often used to address blighted areas, promote industrial growth, or support mixed-use developments, aligning with the municipality’s long-term planning goals. In Wisconsin, TIDs are subject to strict compliance with state laws, ensuring they do not overly burden taxpayers in overlapping jurisdictions. This financing mechanism helps communities grow economically while minimizing upfront costs to taxpayers.

The Village is proud to introduce TID #6, a development initiative encompassing the Buckshot Development and Downtown Revitalization Program. This mixed-use project spans approximately 129 acres and is designed to transform key areas of the Village into a vibrant hub of residential, commercial, and community activity.

Partnering with developers and local stakeholders, the Buckshot Development will add single-family homes, duplex units, high-end apartments as well as senior living, providing diverse housing options to meet the community’s needs. Additionally, a Downtown Revitalization Program will focus on enhancing business opportunities and boosting the vitality of the Village’s core.

This initiative underscores the Village’s commitment to sustainable growth, economic development, and maintaining its unique charm while providing a foundation for future generations. Join us in shaping the next chapter for our community!​

Key Points 

• Village Risks:

  • By aligning developer incentives with realized growth, the Village eliminates financial exposure and maintains a sustainable approach to funding.  This is recognized as a pay-go model, whereby all incentives are tied directly to the performance of the TID.
  • All other financial commitments, such as public improvements and administrative costs, are prioritized, ensuring the district's operational needs are met.  

• Performance Bond Requirement:

  • The project requires a performance bond and other financial security from developers to ensure compliance with development agreements​.

• Economic Impact:

  • The District anticipates generating $181.75 million in new incremental value by 2044 from mixed-use developments, including residential, retail, and senior living units​​.

• Planned Developments:

  • Includes a mix of residential and commercial developments:
    • 94 single-family homes, 69 multifamily units, and 105 senior living units.
    • Retail developments estimated to add millions in assessed value​​.

• Public Improvements:

  • Key infrastructure projects include:
    • Knight Avenue sanitary sewer lift station improvements (estimated $1 million total cost, with 50% funded by TID 6 and 10% funded by TID 5).
    • Road, water, and stormwater infrastructure upgrades funded by developer​.

• Downtown Revitalization Program:

  • TID #6 allocates $2.95 million to enhance the downtown area and stimulate business growth​.

• Financial Sustainability:

  • The plan assumes no inflation in tax increment values and aims to pay off all liabilities by 2044, two years prior to TID 6's mandatory closure​.

• Environmental and Land Use Goals:

  • Promotes mixed-use development consistent with the Village’s Comprehensive Plan

TID #5 – Regal Place, is a transformative project that will breathe new life into the former Regal Ware Headquarters site. Partnering with American Construction Company and Washington County, this initiative focuses on turning a blighted area into a thriving residential community.

With support from Washington County’s Next Generation Housing Fund, the project will construct 48 beautiful, owner-occupied homes. This redevelopment not only addresses the growing demand for housing but also enhances the Village’s character and vitality.

Together, we’re creating a fresh start for Regal Place—blending thoughtful design and a vision for a brighter future. Stay tuned as we bring this exciting project to life!

Key Points

Village Risks

• The success of the project relies on tax increment revenues covering the costs of public improvements, incentives, and debt repayments within the TID's lifespan​.
• Risks are mitigated by requiring performance guarantees and minimum tax increment revenue requirements in development agreements​​.

Increment Value Increase

• The TID is expected to generate $15.67 million in incremental property value from a redevelopment project converting the former Regal Ware Headquarters into 48 multi-family residential units​​.

Key Public Improvements

• Knight Avenue sanitary sewer lift station improvements (estimated $1 million total cost, with 50% funded by TID 6 and 10% funded by TID 5).
• No direct funding for street improvements has been allocated​.

 Economic Impact

• Incremental tax revenue of $6.87 million is anticipated over the TID's 27-year life, supporting project costs and benefiting local taxing jurisdictions​.
• The project will contribute to local economic growth by attracting new residents, supporting local businesses, and enhancing community infrastructure​​.

Expected Termination

• The TID is expected to close by 2043, 10 years before the mandatory closure date, assuming projections hold true​​.

 Site Characteristics and Challenges

• The 5.72-acre site has been designated as a blighted area due to vacancy, deterioration, and other public welfare concerns​.
• Redevelopment involves demolition, site preparation, and utility upgrades to make the site suitable for housing

 

The Village’s Blue Door District, created under TID #4, highlights Drexel’s state-of-the-art door manufacturing operations as a cornerstone of industrial revitalization and economic growth. This development project focuses on expanding Drexel’s manufacturing capabilities, fostering innovation, and creating quality jobs for the community.

As a key player in the region’s economy, Drexel’s growth within the Blue Door District reflects the Village’s commitment to supporting industry, enhancing job opportunities, and driving long-term prosperity. By investing in cutting-edge manufacturing and workforce development, TID #4 is shaping a brighter future for the Village and its residents.

Learn more about how Drexel and the Blue Door District are opening new doors to opportunity!   

Drexel Building Supply Careers

Village Risks

• The success of TID #4 depends on generating $25.1 million in incremental property value, which is required to fund planned public improvements and developer incentives.
• Developer incentives are structured as Pay-As-You-Go (PAYGO), ensuring payments are only made if sufficient tax increment revenue is generated.
• Risks are minimized by tying expenditures to actual revenue, reducing the likelihood of financial shortfalls.

Performance Bond Requirement

• Development agreements include requirements to guarantee that a minimum level of incremental value is achieved, ensuring that the Village can finance the planned improvements​.

Increment Value Increase

• The TID anticipates a total incremental value increase of $25.1 million, driven primarily by the development of Lot 1 by Drexel Building Supply for a manufacturing facility​​.

Key Public Improvements

• Planned improvements are designed to support the Drexel development and ensure adequate infrastructure for future growth within the district, with funding tied to TID revenue performance to minimize financial risks for the Village.
  
  • Sanitary Sewer Improvements: $610,600.
  • Stormwater Management: $885,400.
  • Water System Enhancements: $606,650.
  • Public Streets: $486,750 for new road construction​​.

Economic Impact

• The District is expected to contribute to job creation, increased business activity, and long-term economic growth within the Village.
• Total tax increment revenue is projected to reach $6.7 million over the TID’s 20-year lifespan.

Expected TID Closure

• TID 4 is expected to close in 2044, its 20th year, with all obligations paid off by that time​.

Environmental Considerations

• The project includes stormwater management improvements to mitigate runoff and protect natural resources​

Tax Incremental District (TID) #3 in the Village of Kewaskum represents an important step in addressing challenges within the southeastern portion of the Village. Spanning approximately 36.83 acres, this mixed-use district was established to support both residential growth and economic stabilization in an area requiring significant investment and redevelopment.

While progress is being made, TID #3 also plays a crucial role in alleviating the financial burden of the distressed TID #2 by dedicating surplus revenues to its recovery. This approach reflects the Village's commitment to responsibly addressing existing challenges, fostering community growth, and ensuring a stronger, more sustainable future for residents and businesses alike.

Key Points

Donor TID Status:

• TID #3 was created and amended to become a donor TID, to support TID #2, a distressed industrial district.
• The amendment allows TID #2 to reduce its deficit.

Residential Duplex Development:

• A significant component of TID #3 is the planned development of five residential duplexes, expected to contribute $2.7 million in incremental property value by 2022.
• This residential project complements the district’s mixed-use purpose, aiming to boost housing availability and attract new residents to the Village.

Economic and Community Benefits:

• The duplexes are expected to provide housing opportunities, increase the Village’s tax base, and generate secondary benefits like increased business activity and employment opportunities.

Developments Since TID #3 Creation:

• Residential Duplexes:

  • Two additional duplexes have been constructed, expanding the initial residential development.
  • These duplexes further enhance the housing stock in the district and contribute to incremental property value growth.
• Graduation Ink Expansion:
• Graduation Ink, a local business, expanded its operations within TID #3, boosting economic activity and increasing property values in the district.
• Future Plans
• TPK 2023 LLC has entered into an agreement with the Village to ensure the future full buildout of TID #3, supporting long-term development and financial growth.

Tax Incremental District (TID) #2 in the Village of Kewaskum was established to promote industrial, commercial, and residential growth. Over time, challenges arose, including the need for additional revenue to meet existing obligations. To address these issues, the Village amended the TID #2 plan by subtracting 36.83 acres of territory to create TID #3, a mixed-use donor TID.

Decreased Debt on Levy: Over the past three years, the debt on the levy has significantly decreased, aided by the creation of TID #3. Surplus revenue generated by its development has supported TID #2, addressing shortfalls and promoting financial stability. This strategic approach underscores the Village's commitment to sustainable growth and fiscal responsibility, fostering a stronger economic future for the community.

Purpose and Scope of the Amendment

• Territory Subtraction:

  • The amendment removes 21 parcels, totaling 36.83 acres, from TID #2.
  • The subtracted parcels include 19.54 acres of industrial land and 17.29 acres of residential land.
  • Subtracted territory is incorporated into the newly created TID #3, allowing targeted redevelopment efforts in the new district​​.

• Reason for Subtraction:

  • As TID #2 is a Distressed District, it can only subtract land, not add to its territory, under Wisconsin law.
  • This adjustment helps focus TID #2's remaining area on its core industrial, commercial, and residential projects​​.

Key Goals and Benefits

• Support for Orderly Development:

  • TID #2 continues to support industrial, commercial, and residential growth within the Village, consistent with its original purpose​.
  • Incremental revenues from the district help repay existing debt obligations and stabilize Village finances.

• Collaboration with TID #3:

  • TID #3 is expected to become a donor TID to provide surplus revenue to TID #2, further reducing financial strain and enabling early closure​

Developments in TID #2 Since Creation:

• JK Rentals Expansion:

  • JK Rentals has undertaken a significant expansion within the TID, supporting industrial growth.
  • This expansion aligns with the district’s goal of fostering mixed-use development and increasing employment opportunities.

• Tails & Trails Doggy Day Care:

  • The Tails & Trails facility is currently under construction, adding a commercial component to the district.

Debt Repayment Progress

• Incremental revenues generated by TID #2 and TID #3 have been applied toward repaying existing debt obligations, including General Obligation Refunding Bonds, helping stabilize Village finances.
• Since 2021, debt on the tax levy has significantly decreased as additional developments in TID #2 and TID #3 have generated increased incremental tax revenues.