(Juneau) City officials in Juneau on Tuesday voted to dissolve a tax increment finance district to pave the way for creating a new one in a similar footprint. MSA Professional Services was recently hired by the common council for $16-thousand dollars to assemble the Professional Services Agreement to establish TIF #4, which would be located on the southwest side of the city near a portion of TIF #2, which had one more year left before expiring.
While one resolution dissolved TIF #2, a second ordinance paid off the remaining debt in the TID while a third allows the city to apply for an Affordable Housing Extension, which would allow Juneau to continue collecting TIF #2 increment for one year, even though it is closed. Andrew Bremer with MSA Professional Services told the council that around $450-thousand dollars could be realized in that one year.
Mike Laue with MSA says the money that comes from the Affordable Housing Extension could be used for street improvements near two of Juneau’s Habitat for Humanity homes on South Main Street. The money could also be used to fund low-interest Community Development Block Grant loans for home improvements for city residents. The decision will be made at a later date.
The city will vote on the establishment of TIF #4 at their next meeting. That would allow Juneau to lock-in property values as of January 1st of this year. If the council waits until next year, they would not be able to capture the $250-thousand dollars in increment that is estimated to be generated by the new Farmers and Merchants Bank being constructed. The bank will be located near the Juneau Piggly Wiggly at West Oak Grove Street and South Western Avenue, with the TIF extending north and west into what is now corn fields. Ground was broken last month on the new bank.