 Thank you, mayor, so I'm gonna start out and this will be a tag team if you've got any Financial questions as we review the current status of our TIF districts So just a little bit of background What is a TIF district? A TIF district is a mechanism for funding development and infrastructure related to Development it allows all taxing jurors jurisdictions benefiting from the development to share in its cost We interchangeably use the word TIF to TID so a TIF is a Financing option that allows a municipality a town village or city to fund infrastructure and other improvements through property tax revenue on newly developed property and the TID is the actual district that identifies the area where The TIF incentive or TIF development is to be so it's the municipality identifies an area known as the district as a Appropriate for the certain type of development a Little bit about the TIF law background so Wisconsin adopted TIF legislation in 1975 to eliminate blighted areas and urban neighborhoods Before the TIF law was enacted if a municipality wanted to expand its local tax base The municipality alone would have to pay the cost But the overlapping Overlying taxing jurisdictions as in the other like school district and county would also benefit from the growth the legislation saw this situation as on Legislator saw this Situation as unfair and viewed TIF as a way to remedy the problem and encourage cooperation between local governments and in our case It makes up Sheboygan County Sheboygan area school district and the Lakeshore Technical College So what kind of tip types of tips tids are there so you can either have a blight elimination TIF or TID which requires a hearing to blight properties a Rehabilitation district. This is a district very similar to blight, but it doesn't you're not blighting people's properties This can be open for up to 27 years an industrial TIF funds industrial and business parks and can be open for 20 years a Mixed-use TIF is used when there is a mixed development. So if you have residential and commercial together It would be a mixed-use TIF and they're open for 20 years and then you can use it for environmental clean-up For areas if you had a factory that had significant environmental Degregation you can use it for environmental costs related to the cleanup and those districts can be open for 20 years as well So how does TIF work upon creation the value of the TID is frozen for property tax distribution Abortion purposes so in this in the city The county school district and technical college continue to receive tax revenue off the base So whatever the value was at the time that the district was certified to be created the the taxing jurisdictions continue to receive that Revenue and then any new revenue that's generated as it relates to the development is then kept by the Municipality and must be spent on projects specific to the district in accordance with the project plan Once the TIF closes all taxing entities start to realize the benefits of the new value so this graph just shows you what that means so When you can see the line on the bottom TID created and TID terminated and how little kind of segregation happens under each one of those taxing Jurisdictions How are TIF projects funded since incremental values are delayed means palities must decide on how to fund the improvements that lead To the creation of the increments so you can do one of three things you can bond for upfront funding for projects using municipal bonds You can do what's called city led pays you go Harnessing new development and using that income to pay for future projects and then you can do developer led pays You go asking the developer to finance their own improvements and agreeing to pay them back All or on a percentage of the tax increment received over a certain amount of time So most of the time what you're seeing when we have development agreements with developers is the developer led pays You go where the developer funds the development and then we pay them back a portion of their taxes over time We have done in some situations bonding where we went out and borrowed money and gave up front Incentives and we've also do upfront borrowing for public infrastructure improvements So TID amendments a TID may be amended for four reasons number one to modify the project plan To add or subtract property to extend the maximum lifespan and to donate tax increments to another TID TID amendment boundaries may be changed four times There's no limit on the project plan amendments one expenditure period amendment if not cash flowing and then TID any of the TID amendments and or project plan Changes must be approved by the joint review board So what is the joint review board there to establish and mean you're to establish and maintain a joint review board That's made up of one representative of the school district one representative of the technical college One representative from the county one represented chosen from the city and then a public member So this is a listing of the current TIDs in the city of Sheboygan We'll go into more detail on their current Financials but TID six we like to call as a south pier and the waterfront basically up to the marina Tid 10 is Water Street, and that's primarily where the Kingsbury development project is under construction today TID 11 was the area around Washington Square including Washington Square that district has been closed as of April 15th of this year TID 12 is an a street office building primarily the Nemshoff the former Nemshoff building in downtown Sheboygan that now houses Rody Dales Tid 13 is the landmark condos. It was developed for the landmark square condos, and it includes the founders club Tid 14 was originally developed for the construction of festival foods and Was expanded for Meyer foods and the redevelopment that happened around the former Memorial Mall Tid 15 pick-and-save. That's the area where Kmart was demolished and the new pick-and-save at that time was reconstructed Tid 16 is downtown a street so it primarily is an area from the bridge up to Niagara Avenue by the Children's Museum Tid 17 encompasses Indiana Avenue basically from the lake to 14th Street The River Bend neighborhood is Tid 19 and that's the area Where both doctors was redeveloped into Lakeshore Technical College, and then Tid 20 is the one we Created in March, and that's for the redevelopment of the former Vanderva property so We're just going to run through some of the Financials of the districts and then be happy to answer any questions you guys might have but Tid 6 was started in 1992 It's expenditure period is now closed it closed as of 12 31 2017 and the end date of that district is January 20th 2023 It was amended and had a number of changes. So this one exceeded the amount of years Primarily based on moving into the recession So there it's been open for 33 years, and it's to close in 2022. It was created as a blight elimination district If you look at the current status of the district the revenues based on 2019 Shows a positive cash balance between revenues and expenses of about 250,000 and then there's about 750,000 in the fund balance Tid 10 the water street This is the area basically from Pennsylvania Avenue out to the Walgreens along the Sheboygan River Was created in 1997 It closes in 2024. It was created as a blight district with a maximum life of 27 years the revenues right now are Positive at about 280,000. There is a deficit in the fund balance As of the end of the year, but we're projecting that the new Kingsbury development will help fill that goal with fill that deficit with the plan to Ultimately close it in the positive Tid 12 the a street office building. So this is the Niagara north a street You can see the map on there. It basically goes from 7th Street to the middle of North 8th and north 9th from Wisconsin to Ontario was created in 2000 it closes in 2027 this district has substantial Or has fund balance and has no additional Expenses so right now it's it's a donor district and it's sharing excess revenue with Tid 17 Which is the Indiana Avenue Tid? This is a rehabilitation district open for 27 years Although it shows a negative fund negative balance as of the end of 2019 It does have 340,000 and fund balance Landmark Square condos, so this is Tid 13 that includes the Founders Club in Landmark Square was created in 2005 closes in 2032 for 27 years Sorry, I don't know something underneath here, but oops. Sorry anyway It's a donor district to Tid 17 It's got $632 as the end of 19 with a fund balance of around 221,000 and it'll see some new increment with the Founders Club development being fully assessed now So then there's no expenses in that district Taylor Heights Festival Foods and now Meyer Was created in 2011 Open for 20 years as a mixed-use diff strict closes in 2031 Has a positive cash balance as of the end of 2019 and a fund balance of around 462,000 Does not include the new increment that'll be generated from Meyer and the Panera redevelopment as part of that project Tid 15 pick and save Was opened in started in 2011 Closes in 2031 open for 20 years as a mixed-use district Has a positive cash balance as of the end of 2019 And then the fund balance is right around 350,000 Tid 16 downtown Sheboygan and a street so this was created in 2015 really the reason this was created was to facilitate the development of some market rate apartment housing It runs through 2035 as a mixed-use diff strict It has a negative cash balance right now of 219,650 dollars as well as about a million dollar fund balance negative That's to be given Typically the TIF districts this early on that you would exceed those expenditures And then over time the payback of the taxes would pay off the debt And we've done a number of capital improvement projects and different things throughout this time So some and there's also some additional increment that'll be gathered from high-point apartments and the visitor center That's part of that is taxable. So there's there's there'll be some additional increment But it's this is a downtown district that has a lot of needs and TIF is one way to fund some of those needs Tid 17 Indiana this was created in 2018 It closes in 2042 as a rehabilitation district with a maximum life of 27 years It's right now receiving. It's a recipient Tid receiving funding from Tid 12 and Tid 13 it has a positive cash balance as of the end of 2019 and a fund balance Positive as well, but I will note that We did take a note out for almost four million dollars to repair the infrastructure around the Badger state loss and and those Debt payments have not been paid back or started payment yet. They will start in 2021. So Even though it shows it pretty positive now, it's going to have some Significant costs going forward although there is new increment projected from the Badger state loss project and the south pier condos that are under construction Tid 18 the south point enterprise campus. This is the new business park on the south side was created in 2018 It closes in 2038. It's a 20-year district. It's an industrial district It has a negative cash balance of about 4.9 million at the end of 19 It's got a little bit of fun balance in 2019 but there is some outstanding notes nans that were approved by the council For roughly 11 million dollars that need to be paid back There's also some increment not projected not included in here That will be coming from the FedEx project to the tune of about 7.7 million and then the north half of the Warner sub division That hopefully is going to be breaking ground this year Those properties are within this district as well. So it's it'll see some increment from that Just a little bit on that. So the we're doing an aggressive marketing campaign to a lot of Economic development areas and there's there was interest in the property and then COVID hit So I'm not sure what that's going to do for us going forward But the goal is to try to get a few more developments to least get this district cash flowing Tit 19 the River Bend neighborhood was opened in 2019. It closes in 2038. It's open for 20 years It's a mixed-use district. It has a positive cash balance. It has a fun Deficit as a fun balance deficit as of the end of 2019. Although it doesn't include any of the Redevelopment that's happened in that area as it relates to the waters edge condos the bull doctors and the Richardson lumber redevelopment projects And the last one is the former van der Waart tid 20 was created as of January 1st, 2020 It's open for 27 years as a rehabilitation district through 2047 has no expenditures or Revenues as it just was started, but will be done to facilitate redevelopment of that property So how many tids can the city have like that's a question we hear a lot is you seem like you have a lot of tids One thing I would say the Department of Revenue just keeps adding the numbers Progressively that's why you're seeing 20 some of them are obviously closed But it requires us to not exceed 12% of our total equalized value of taxable property So when we created tid 20 the city's total equalized value of existing tids was around 190 million And the max we could go to is 350 million so you can see we have a little bit of flexibility in there yet for Tiff district creation Advantages of tids so it can increase the property values spur private investment and development create a stronger broader tax base Incremental revenue is reinvested within the district Stimulates investment outside of the district and then benefits underlying taxing bodies at the end of the tid life As you saw with the tid 11 will there where there'll be some payments back to the jurisdictions The disadvantages is that the increment does not materialize as planned the city might Must find other sources to fund those improvements under lab underlying taxing just districts have no benefit until the tit is terminated Tids may be used in areas where development would have occurred anyway And then increases the administrative burden on managing local government entity So that's it in a nutshell if you've got any questions, I know I went through it fairly quickly But if you've got any questions, you know overall I think the Tids are doing very well You know and hopefully it will you know see continued investment in those particular areas Thank you very much for that report chat. Are there any questions for Chad or Marty? I have one I have one mayor Jim Warren. Please go ahead Jim Thank you Chad Do you see any other areas in the city? That look like they possibly could be tid territory within the next five years The one that comes to mind right now is if we ever do any redevelopment of the armory property, so I would say That's a potential If Penn tear develops that's already in tid 17 so I Besides Penn tear, I can't say that there's any other ones that come to mind Thank you Any other questions? Well, thank you very much, Chad