By Justin Markofski
Northside Planning Council
TID 54 is the recently created (July 25, 2023) Tax Incremental District on the Northside of Madison near Oscar Mayer. TID districts are created as a financial tool to make investments into defined areas of a city using the future increased taxes that will be generated and collected because of these improvements. They are intended to help stimulate and catalyze investments into areas that may otherwise remain undeveloped, underdeveloped or blighted. See the map of all existing TID districts in Madison in 2024. as well as the map for TID 54 here on the Northside.
TID 54 is the only existing Tax Incremental District on the Northside at this time. There is a 22-page document with maps and definitions about the scope, purposes and uses for this new Tax Incremental Financing (TIF) district. The 553-unit Huxley Yards development that is currently being constructed behind Oscar Mayer received the first TIF dollars from this TID district.
An amendment to TID 54 went through city committees and processes (Finance Committee, Plan Commission, Common Council) this summer to add additional sanitary sewer ($714,000), park improvements ($2,114,000), and economic development ($1,669,000) investments to the original TID 54 projections.
The $1,669,000 is designated for a new housing development — a Vermillion Development proposal for 330 market-rate units adjacent to Tenney Park and Lake Mendota. This development is named 1617 Sherman on the developer’s website.
There are many factors that go into whether a proposed development project is awarded TIF funds. One factor is the “but for” test, which states that without the addition and use of these TIF dollars the project would have a gap in its financing and would not otherwise happen. Using TIF dollars is a way cities like Madison can leverage significant private investment into housing, for example. Another factor for approving a TIF application is whether economic benefits to the area outweigh the costs of improvements needed.
There is a lot to learn and understand about the purpose and rules of TIFs and TIDs. The City of Madison has helpful information and resources on its website (cityofmadison.com, search for Economic Development and TIF). You can look up file #83655 under the name 12982 TID 54-2024 Project Plan Amendment for more specific information related to TID 54. Additionally, the City of Madison website lists a TIF Coordinator with a name, phone number and email where questions can be directed.
