Beaver Dam is set to provide incentives to a growing business that was among the first to locate in the Highway 151 Business Park.
The city’s community development committee recommended on Thursday an agreement between the city and Beaver Dam Cold Storage for a 45,000-square-foot expansion at its facility on Tower Drive in the 151 Business Park. The current 126,000-square-foot facility opened in 2017.
Trent Campbell of the Beaver Dam Area Development Corporation said the north-side location has been very successful.
“They have a need to expand that facility,” he said.
The location is in a tax increment financing district that allows the city to provide incentives to developers, such as a cash payment or investments in infrastructure, to encourage them to actually develop. Then the city will pay for the incentives using the new tax revenue from development, where such revenue would normally go to public services. Money for TIF projects does not come directly from taxpayers, unlike money for roads and park improvements. The city used TIF funds to develop infrastructure in the business park.
The plan for the cold storage site calls for the city to give the company a tax rebate for four years with the rebate ending early if the rebate total reaches $180,000. The project is expected to bring $7 million in capital investment from the company, on top of the $14 million invested the existing site.
Campbell said the project hits the “sweet spot” of being a high source of new tax base, but low service on the part of the city.
The full Common Council will vote on the recommendation at its Oct. 7 meeting.
Also on Tuesday, the committee decided to recommend getting rid of the city’s facade improvement program, and lumping it in with an existing TIF district. Mayor Becky Glewen said the facade program wasn’t really being used, so taking the $120,000 already borrowed for that program and moving it toward a TIF district will allow for more flexibility in helping development projects.
The method is being used to help Nunatak Coffee develop a new site on South Spring Street, offering the business 20% of the project cost up to $80,000.