Beaver Dam Gets State Trust Fund Loan For TIF Incentive

4/21/17 – The state has approved a one-million-dollar loan to the city of Beaver Dam. The Board of Commissioners of Public Lands (BCPL) has announced that it approved the State Trust Fund Loan to finance development incentives for Tax Increment Finance District #7. City Finance Director John Somers says the money is part of a developer’s agreement with Beaver Dam Cold Storage and their new facility in the 151 Business Park. As part of the agreement, there is a one-million dollar developers grant awarded upon securing an occupancy permit, which has been issued. Meanwhile, funds from the city’s annual borrowing for capital projects will not be available until late July. Somers say the State Trust Fund Loan is essentially interim financing until the capital improvements borrowing is complete. He says the city will have to decide to either pay off the State Trust Fund Loan this summer or keep it, depending on how interest rates come in for capital borrowing. The 151 Business Park is the city’s newest business park and it currently has three occupants. The largest purchaser of land is Beaver Dam Cold Storage, which is expected to add around 10-million dollars to the tax base and is getting ten-percent of that back in incentives at $1-million dollars. The developers grant is paid with TIF funds. The Board of Commissioners of Public Lands operates entirely on program revenue, without taxpayer money and distributes more than 96 cents of every dollar of interest earned on State Trust Fund investments to Wisconsin’s public schools.  The 2017 earnings of $32.1 million are the sole source of state funding for K‑12 public school library materials. The board approved loans totaling nearly $27.7 million at this week’s meeting.