Sparta closing TID districts
The City of Sparta is set close two tax incremental districts (TID) worth a combined $42 million in real property value.
The two TIDs include the East Side Business Park and the Century Foods International building on Hwy. 16. The TIDs were created as economic incentives to draw business to the community.
All the taxes collected from business within the TIDs go toward paying off the infrastructure within the districts. When they close, the taxes will be divided up among all taxing entities, which, besides the city, include the Sparta School District, Western Technical College and Monroe County, and reduce the tax burden on their residents.
TID 3 is valued at $4,568,700, while TID 5 is valued at $37,563,600.
Combined, the two TIDs will be closing $1 million in the black. The city council will be deciding how to use that money. According to city treasurer Mark Sund, who also is the city's co-administrator, the city can use that money to fund low-interest housing projects.
The city previously had a community block grant program but, according to Sund, the state took it over, added a lot of bureaucratic red tape and depleted the funds. He said the city could implement its own program again making it easier for low-income homeowners to get low or interest-free loans for house repairs.
The matter will go before the finance committee at its August meeting.