The $2.75 million in tax-increment funding that Lakestone Properties has requested from the Village of Oregon for its affordable housing project is set to be an up-front development cost for the business.
The developer’s financing request will be a pay-as-you-go setup, village administrator Mike Gracz told trustees in a project update at the Monday, Nov. 9, Village Board meeting. Lakestone Properties is planning to construct a mix of family and senior living apartment buildings with rents below market rate at 917, 919 and 947 Janesville St.
Gracz also gave an update from financial consultant Ehlers’ analysis of the project, which was done to help assess whether the village can fulfill the developer’s request. Gracz said the analysis could be ready for review as early as the next board meeting.
TIF is a public financing tool that allows a municipality to collect increased taxes on new or improved developments from multiple taxing jurisdictions. It can be used to clear or renew aging or neglected property, to make an area of a municipality competitive or to close a gap in financing capability.
Municipalities often request that TIF deals are pay-as-you-go, which provide developer incentives or assistance in the form of a rebate, rather than an up-front payment.
Gracz also told trustees Lakestone Properties is applying for Wisconsin Housing and Economic Development Authority low income housing tax credits this week.