By K. L. KLEIN

Menomonee Falls - Next month, the Plan Commission will hold a public hearing on the creation of a new tax-incremental financing district to spur redevelopment downtown.

The new TIF district, the ninth in the village, would encompass Appleton Avenue from about Joper Road to about Elm Lane, Village Redevelopment Manager Bill Freisleben told the commission last week.

TIF is a mechanism that allows municipalities to borrow money to fund infrastructure improvements for an area that otherwise would be difficult to develop or redevelop. The increased property tax revenue is then diverted from the tax roll to pay off the loan.

The new district, which would be the village's sixth open one, would share some boundaries with TIF 2, which will close in about four years.

Freisleben said there is not enough time left with TIF 2 to raise enough increment to fund the projects planned in TIF 9. The projects include Menomonee River trail connections, restoration of the historic lime kilns in Lime Kiln Park and storm sewer relays.

An area of potential redevelopment within the TIF includes the west side of Appleton Avenue between Garfield Drive and Main Street.

Other areas for redevelopment include Grace Lutheran Church, W16171 Kenwood Blvd., and the Griffin Dodge car dealership site, W15474 Appleton Ave., which is vacant. The church owns another parcel in the village and could build a new church at that site, according to a village document.

Village officials are projecting the new TIF would generate about $15 million to cover the costs of the projects.

Trustee Michael McDonald questioned why the village would pursue another TIF district with similar boundaries when it appears the earlier TIF was not successful.

Freisleben said TIF 2 did its job - allowing the creation of a revolving loan fund and infrastructure improvements.

Commissioners suggested altering the boundaries. McDonald said the village needs to be cautious about how many properties it takes off the tax rolls. Too many properties might result in other taxing entities opposing the TIF, he said.

A TIF district affects other taxing entities, such as schools, because once the base is frozen, they cannot collect new revenues until the district is closed. The other taxing districts have to agree to form the TIF.

Next step

WHAT: public hearing on creation of proposed Tax-Incremental Financing District 9

WHEN: 6:30 p.m. Dec. 8

WHERE: Village Hall, N8480 Pilgrim Road