Madison City Commission Approves 5th Tax Increment Financing District

The Madison City Commission approved the city’s 5th Tax Increment Financing District on Monday. Tax Increment Financing, or “TIF,” is a means of financing public improvements in a defined area, known as a TIF district. 

The new TIF District is an area north of the new DSU athletic facilities that are currently under construction. It includes land from Washington Avenue and to the north of Division Avenue. The proposed “Trojan Village” development would include 35 single family lots, 20 twin home units, and a 48 unit apartment complex. There is also an area on the corner of Washington and 15th street designated for commercial development. The developers of the project are Randy Schaffer and Eric Sinclair. 

In a TIF District, property taxes collected on the original valuation that existed in the TIF at the time of its designation continue to be distributed to the city and school district. The property taxes collected as a result of the increase in the value after the formation of the TIF district are available for use by the city to fund project costs in the TIF district. Those projects included streets, curb & gutter, sewer, water, and electrical infrastructure. 

City Administrator Jamison Barreth gave a breakdown of the cost estimates. 

 Madison currently has three other active TIF Districts.