TID #2

Tax Incremental District (“TID”) No. 2 (“District”) is a 166-acre mixed-use district created on March 3, 2022. The District was created primarily to fund utility extensions needed for residential and commercial development.

The Village has strategically leveraged TIF to finance several key projects within our TID. Below is a summary of ongoing and completed projects:

1. Commercial Development Along Highway 35:
   • Description: Extend Water, Sewer, and Electric services to entrance of the development and build an access road.
   • Status: Completed in 2022.
   • Purpose: To prepare recently annexed and re-zoned property for commercial development.
   • Increment produced: So far, the development has led to a commercial gym and a Dollar General Store with three more lots available.
2. Highway 35 Reconstruction:
   • Description: To cover the Village share of costs for repaving highway 35 and updating any aged and dysfunctional utility assets.
   • Status: Completed in 2023.
   • Purpose: Repaving the main traffic corridor through the Village limits.

3. River Trails Development Along Highway K:
   • Description: Extend Water, Sewer, and Electric services to entrance of a potential housing development. Incorporate developer incentives to encourage a developer to purchase and add additional housing units.
   • Status: Utility extensions were completed in 2023, discussions with developers are ongoing. Village Board is willing to consider purchasing the land and offering it as a development incentive if the right offer were available. An RFI has been developed and has been sent out to a few regional developers.
   • Purpose: To prepare for and encourage development of housing units within the Village.
4. Parkland Development:
   • Description: Construction of phase one of a 20-acre community park.
   • Status: Construction is ongoing and is estimated to be completed by the Fall of 2026.
   • Purpose: To meet the community’s need for additional recreational facilities, enhance the quality of life for residents, and create a vibrant community that attracts new residents, ultimately supporting the Village’s growth strategy.
5. Train Quiet Zone Feasibility Study
   • Description: To study the feasilibity of establishing a quiet zone for train whistles for the Village of Trempealeau
   • Status: The feasibility study was completed and shared with the community. Based on public feedback and cost considerations, the Village Board determined that none of the options presented were financially justified. No further action was taken.
   • Purpose: The study was conducted in response to a referendum approved during the winter 2022 primary election, fulfilling the direction provided by voters.

TID #2 is entering its fifth year of its planned 20-year life. Development activity has slowed, with the last major project being Dollar General. Many vacant parcels remain available within both the Highway 35 commercial corridor and the River Trails residential area.

To encourage new construction, the Village sent letters this year to all owners of undeveloped or commercial lots within the district, as well as to local realtors, outlining the development incentives available through TID #2. The Village also continues to actively seek a development partner for the River Trails subdivision.

While there has been substantial upfront investment in infrastructure, the district is not yet generating sufficient tax increment to cover its annual debt service. Until increment revenues increase, the General Fund will advance funds each year to cover the shortfall. As development occurs and additional increment is generated, those revenues will be used to pay debt service and reimburse the General Fund for prior advances.

Key Ratios and Indicators