Ironwood DDA tackles TIF timing

By TOM LAVENTURE

tlaventure@yourdailyglobe.com

Ironwood — The goal of establishing a tax increment financing district (TIF) for the downtown looks to be delayed longer than anticipated, according to reports at Thursday’s meeting of the Downtown Ironwood Development Authority.

Tom Bergman, director of community development for the city of Ironwood, said ongoing work with the zoning ordinance has created delays. This will require the city to adjust its TIF application to the revised Redevelopment Ready Communities “2.0” certification process since it’s unlikely to comply with the current process by holding a public hearing prior to June. 

“In the long run, the 2.0 process is better, but it will slow the TIF district,” Bergman said. 

The likelihood of the district taxes increasing makes it a priority to get the TIF district going sooner than later, Bergman said. Rather than wait for the zoning project to finish in order to receive technical assistance dollars from the Michigan Economic Development Corporation, he will propose that the city pay the TIF consulting fees in order to establish the district sooner in order to capture tax dollars as the economy improves.

“It does appear that taxes are going up soon and the sooner we get started the better,” Bergman said. “This will make a difference of six months in the process but it’s worth a discussion to see if we can budget the full amount.”

A TIF district applies a flat tax rate and any captured funds above that rate are directed toward projects within the district. DIDA proposed the TIF district for the downtown in early 2020 and dedicated $5,000 toward the city’s $15,000 match for consultants to aid the process of developing the TIF plan.

Initially, the delay of MEDC technical funds was not a concern as starting a TIF district during the pandemic would likely have resulted in a loss of tax revenue, Bergman said. That scenario is changing and timing the TIF with the rise in the economy is now very important, he said.

Paul Linn, city treasurer and finance officer, provided a budget report for the DIDA members and recommended that a budget be approved at the April meeting. This will allow the city commission to incorporate the DIDA budget into the annual city budget that is due to be completed by June.

In a report from the Ironwood Area Chamber of Commerce, Michael Meyer, director, said the Ironwood Area Historical Society is concluding the current phase of the main room renovation in the Historic Ironwood Depot. There is some electrical work to complete the replacement of lighting in the main room and secondary rooms before the volunteers start putting up the displays to be ready in time for Memorial Day weekend and the start of the summer tourism season.

The Ironwood Destination Guide, the biennial publication of the chamber, has sold out its advertising for the 2021-23 issue, he said. The chamber has an agreement with the Ironwood Tourism Council for printing costs that will allow for 15,000 copies and a new marketing model that will extend to strategic placements from the Twin Cities through southern Wisconsin and into Illinois, the places where most visitors to the area come from, he said. 

The Ironwood chamber is working with other area chambers of commerce in a shared advertising project that will place full page ads in an outdoor recreational magazine that focuses on the region. 

The shared project will extend to social media as well and will for the first time get word of popular annual events out to a wider readership, he said.