Brookfield’s long-awaited tax increment financing (TIF) district for Ogden Avenue is finally a reality after the village board voted unanimously Monday night to approve it.
“This is probably the most important piece of economic development legislation that any Brookfield village board ever passed,” said Brookfield Trustee Michael Towner.
The TIF district will run the length of Ogden Avenue in Brookfield, from Custer Avenue to Eberly Avenue. The equalized assessed valuation of the property located within the TIF district will be frozen for all taxing bodies for 23 years. While the property will continue to be reassessed, any increase in tax revenue that comes from increased value of property located within the TIF district will go to a special TIF fund and can be used only within the TIF district.
The revenue can be used in a number of ways within the district. It can be used to improve the streetscape, sidewalks, sewers and other infrastructure within the district. It can also be used to purchase property, relocate businesses, train new employees, provide tax breaks to developers and fund other inducements to development.
TIFs are a commonly used, though sometimes controversial, technique used by local governments to promote development in stagnating areas. The downside to TIFs is that they reduce tax revenue to other taxing bodies, forcing other property taxpayers to make up the shortfall. But by promoting development, proponents of TIFs say they increase property values and tax revenue in the long run.
Commercial development on Ogden Avenue has been stagnant for years. The small lot sizes and older buildings along Ogden have been a deterrent to development, according to Brookfield Village President Michael Garvey.
“People have not been able to invest or locate businesses there because of the size of the parcels of land and the age of the infrastructure,” said Garvey.
While stressing that development will not happen overnight and that there are no developers waiting in the wings, Garvey said that the TIF will create interest among developers, particularly when the economy improves.
Garvey would like to see commercial development along Ogden.
“We don’t see it as residential development,” said Garvey. “It will be sales tax-generating retail, service businesses and food service businesses.”
Garvey said that he would like to see some family style sit-down restaurants, possibly chains such as Applebee’s or Culver’s.
He said the TIF will create interest from developers, adding the village has no particular plans for any specific locations within the TIF.
“We just want to create a climate where different businesses have the ability to come in and approach us and locate there,” Garvey said.
Village board member C.P. Hall said the village in unsure of exactly what kind of development will eventually take place along Ogden. But he does expect the TIF to spur development.
“It’ll be an opportunity for people to come in here and make investments,” said Hall. “I think it’s an opportunity for developers, but I don’t know who will be interested and what they will bring to town.”