Officials weigh cost impact but remain confident that financing district is viable for Cedar Vineyard development
Although the final report isn’t completed, the possibility of creating a tax incremental financing district for the Cedar Vineyard subdivision proposed for Port Washington’s south side still looks good, City Administrator Mark Grams said Tuesday.
The city is continuing to look at both the cost of infrastructure improvements such as utility extensions, a bike path, road repair and land acquisition, he said, as well as the potential boundaries of the district.
That’s because the city may try to connect a portion of the industrial park to the TIF district to accommodate such projects as an expansion of Construction Forms, Grams said.
But to do this, he said, the city will have to work with Anchor Bank to create a connection between the subdivision on the former VK Development land and the industrial park.
“They have indicated they’re willing to work with us,” Grams said.
Grams said the city is struggling to come up with reliable cost estimates for the extension of sewer and water service to the Cedar Vineyard subdivision on Highway C.
The Cedar Vineyard subdivision would have 73 home sites, a 100-acre nature conservancy, vineyard and winery on the former VK Development property.
Officials have said the Cedar Vineyard development is expected to be valued at more than $50 million when completed, with the value of the homes and lots expected to range from $650,000 to $880,000.
In his preliminary calculations, Grams said, he looked at the worst-case scenario, with the utilities costing $6 million and the value of the lots being 25% less than the developer anticipates.
But, Grams said Tuesday, the cost estimate to extend the utilities has been fluctuating as the project engineers look at different ways to extend those services.
“There are ways to cut costs, and that’s what we’re looking at,” Grams said.
Despite the changes, Grams said he still believes the $6 million figure is “probably in the ballpark.”
And that number means a TIF district is still feasible, he said, noting that he still hasn’t included the value of the project’s vineyard and winery in those calculations.
“That gives us a little wiggle room,” he said.
The city is looking at whether it can include a $1 million contribution toward the purchase of a 101-acre nature preserve as a TIF project in the plan, Grams said.
If Ozaukee County balks and won’t help fund the project, the city will consider whether it can contribute the entire $2 million needed, he added.
“We would look at it and see if we can handle it,” he said. “I don’t know if the TIF could handle it.”
Mayor Tom Mlada said that while the city is willing to consider that option, he is confident the county will contribute half the funding for the nature preserve.
“I know you’re not going to move everybody to the yes camp,” he said. “But I think when people really consider the impact this could have not only to the city but to the county, I’m confident this will happen.”
Grams said he hopes to have a draft TIF plan and district borders for the March 17 Common Council meeting.