Village of Bayside Conflict of Interest Statement
Village of Bayside Master Plan
Section 14 (page 26) “It is expected that any plan for development will be complimentary to the Village’s Master Plan” yet there are currently no proposed changes to the Master Plan map, building codes or other Village ordinances for the implementation of this Plan.
The TID does not fit the Master Plan.
Project Plan for the Creation of Tax Incremental District
Read the Project Plan and be prepared to ask the CDA committee and Village Trustees why they support this project
The future of our village depends upon YOU.
Strategic TIF Use – A Guide for Wisconsin Municipalities
The Costs of TIF Use
Because TIF districts pay for improvements through future tax revenues, many people consider TIF ‘getting something for nothing’. This is simply not true. In fact, using TIF carries significant costs, beyond just the dollar value of improvements made in the district.
These costs fall into five general categories:
Direct Costs: When most people discuss the cost of a TIF district, they are referring to direct costs. Direct costs are the costs of the physical improvements (including labor costs) within the district, the administrative costs of managing the district, the costs of any consultancies and/or developer incentives and the costs of financing all these expenditures.
Service Costs: Although not commonly included in TIF accounting, local governments take on new service costs during the life of each TID. New development increases demand for city, county, and school district services— demand not accompanied by increases in tax revenue to provide these services. For instance, a new subdivision will send more kids to school, require additional snow and trash removal and need more road maintenance. Providing these services is costly and, over the full life of a TID, can add up to millions of dollars.
Fixed Tax Base Costs: Fixed tax base costs are the costs of lost tax revenue on private development that would have occurred without TIF. When the ‘but for’ test is administered with 100 percent accuracy the fixed tax base cost of a TID is zero. In many cases, however, the property included in TIF districts would generate some form of privately-funded development over the TID’s life without any subsidy. If the property had not been included in a TID, local governments could receive taxes on this development immediately instead of it being diverted to pay off TID project costs.
Opportunity Costs: Using TIF also imposes opportunity costs on local governments in two ways. First, by approving one project plan for TID development, local governments eliminate the opportunity to develop that piece of land in a different manner. For example, if a project plan allocates TIF funds for the creation of an entertainment district, it eliminates the possibility of developing that land into an industrial corridor. Second, when one TID is created, it limits the municipality’s ability to use TIF elsewhere within the community, because state law limits the amount of property value which municipalities can include in TIF districts.
Negative Externality Costs: Improper planning and land use is costly to a community. As a development tool, TIF can contribute to these costs when used unwisely. If TIF is used to subsidize greenfield development on the urban fringe it contributes to sprawl, congesting commuter corridors and increasing pollution. If TIF lures businesses away from dense urban centers, it contributes to the spatial mismatch between jobs and employees, simultaneously creating labor shortages and unemployment. Likewise, if TIF is used to attract employers that do not pay living wages, the public bears the cost of wage supplements and social services for the working poor.