Thursday, August 5, 2010

Tosa TIF For UWM Would Have Slowwwwww Payoff

If Wauwatosa creates a $12 million taxpayer-subsidized loan to pay for a portion of UWM's Innovation Center/Engineering complex proposed on the County Grounds, don't look for the project's increased property taxes to boost local schools or other municipal services.

That's because the loan would take a long time to be paid off first.

How long?

The maximum allowed by state law - - twenty-seven years, according to the city's consultant quoted in this report.

In Milwaukee, the average is 18 years.

Is this really a wise expenditure - - and, as I've asked before, the best place to drop this project, with all the available space downtown, or at Rockwell Automation, or in closer proximity to MSOE or Marquette's new Engineering school just west of downtown?

4 comments:

Nick said...

Do you know of any studies or reports showing the number of unoccupied office spaces in the suburban area? Is there even a demand right now, that shows that an office park would be suitably occupied to create the necessary revenue?

Anonymous said...

The UWM Real Estate Foundation LLC is taxable. I think they should remove the "UWM" part of their name.
Here is the key to this whole report:
"These projections have been prepared based on information received from the UWM Foundation and City staff. The projections include assumptions on square footage and business type for future developments that have
been proposed in the preliminary site plan."

James Rowen said...

Nick: I do not. Maybe another read has data.

To Anon: If I were a Tosa taxpayer, I would have a lot of questions about this projection, given the economy, the real estate market, the interest in housing there, and the maximum-length TIF payback.

27 years is a long time to wait,

Red flags everywhere.

James Rowen said...

I meant another reader, not read.
Sorry.