Mitchell Street ‘Stronger Neighborhoods’ plan moving forward

Mayor’s initiative marks 24th neighborhood-focused TIF investment

A Barrett Administration proposal to boost revitalization along W. Mitchell Street on Milwaukee’s south side was approved today by the Common Council’s Zoning, Neighborhood and Development Committee. The measure will be considered by the full Common Council at its meeting September 25.

The proposed creation of a $3.1 million Tax Incremental Financing District in the Historic Mitchell Street neighborhood would assist in attracting and retaining retail, office and service businesses in one of the city’s oldest commercial corridors. The initiative would assist businesses as well as improve key catalytic properties, add new harp lights, update the streetscaping and improve public safety. Home owners in the area would also be eligible for loans up to $10,000 to make repairs to the exteriors of their homes. The Mitchell Street plan covers the area one block north and one block south along W. Mitchell Street, from S. 5th Street to S. 16th Street and includes a commercial area south of W. Forest Home Ave between S. 13th and S. 15th Streets. The proposal was approved last month by the Redevelopment Authority but still requires approval from both the Common Council and Joint Review Board.

“A Stronger Milwaukee means stronger neighborhoods,” said Mayor Tom Barrett. “My Stronger Neighborhoods agenda has meant greater use of all available economic development tools to leverage jobs, new businesses and additional private investment in areas throughout the City of Milwaukee. From the Metcalfe Park neighborhood, to Midtown Center and Bronzeville, we are using Tax Incremental Financing, or TIF, to bring new vitality to Milwaukee.”

If approved, the Mitchell Street project would mark the City of Milwaukee’s 24th neighborhood-focused Tax Incremental Financing District, commonly referred to as a TID. Out of the 15 TIDs created since Mayor Barrett took office, nine are neighborhood-focused. Overall, Mayor Barrett’s more aggressive use of this tool will lead to the creation of an estimated 3,317 jobs, 1,105 new homes, 50 homes rehabbed and a $357 million increase in Milwaukee’s tax base. These numbers are expected to grow and spark additional growth in Bronzeville, at the Brewery in the former Pabst Brewery location, in the New Avenue Commerce Center on W. North Avenue and, if approved, in the Historic Mitchell Street neighborhood.

Tax Incremental Financing (TIF) is an important tool with which government can assist development, improve public infrastructure and expand the local tax base, with repayment of the TIF expenditures coming from the increased tax base resulting from the development. In Milwaukee and other municipalities throughout the state, TIF is targeted toward eliminating blight, increasing property value and promoting job growth and economic development. State statutes permit TIF districts only when development would not occur “but for” City assistance.

In recent years, TIF has leveraged the redevelopment of the Menomonee Valley as a place for companies to grow, assisted in the removal of the Park East Freeway Spur where now more than $400 million worth of private development is underway, fueled the expansion of Manpower International in Downtown Milwaukee and the lead to the creation of central city subdivisions such as City Homes and Lindsay Heights.

For more information about TIF-assisted projects and to learn about all of the economic development tools used by the City of Milwaukee, visit the Department of City Development’s online Business Toolbox at www.mkedcd.org/toolbox.