1. West Bend tax district seeks extra time
West Bend plan calls for extension for River Shores
By Tom Daykin of the Journal Sentinel
Jan. 3, 2013
Land and Space
Journal Sentinel business reporter Tom Daykin blogs about
commercial real estate and development
A tax financing district that helped pay for a West Bend
mixed-use development will need more time to pay off its
debt after the project stalled.
The city created the tax incremental financing district in 2004 to spend
$14.2 million for new streets, utilities and a bridge tied to the River
Shores development.
An investment group led by Milwaukee developer Tim Dixon and Ken
Hendricks, owner of Beloit-based ABC Supply Co., planned to
redevelop a former industrial site on the Milwaukee River into 200
condos, 100 apartments and commercial space.
The 42-acre River Shores site, overlooking the river's east bank north
of Highway 33, once housed a factory operated by West Bend Co.
Dixon later left the River Shores group, said T.J. Justice, city economic
and community development director. He said the River Shores group
is now controlled by Diane Hendricks, the widow of Ken Hendricks,
who died in 2007.
So far, former factory space has been converted into 58 condos, and
17,500 square feet of commercial space, including the Kettle Moraine
YMCA, said Dan Barkes, a vice president at Hendricks Commercial
Properties. He said 24 condos have been sold, with additional units
being leased out.
The pace of construction has been much slower than expected because
of the recession and the bursting of the housing bubble, Justice said.
Also, property values within the tax district have declined. So, new
buildings are generating less property tax revenue to pay off the tax
district's debt - a problem that has surfaced in other area
communities, includingGrafton, Milwaukee and St. Francis.
Property taxes from such districts cannot go to the village or city, its
school district and other local governments until the tax district debt is
paid off. The shorter the payback period, the quicker the benefit to the
local community.
In West Bend, River Shores' owner and city taxpayers have covered
shortfalls in property tax revenue to make sure the tax district's
annual debt payments were made, Justice said. The developer has
since provided $852,000 to cover those city payments, he said.

2. Under a new proposal, the River Shores group would cover future
shortfalls but would be allowed to eventually recover those payments
through property tax rebates.
To accomplish that, the proposal calls for extending the tax district to
2041, Justice said. The tax district was supposed to end by 2031.
Also, the proposal requires River Shores to add $8 million in new
property value to the tax district by 2015, Justice and Barkes said.
That includes plans to convert additional former industrial space into
86 apartments, and 30,000 square feet of commercial space, Barkes
said.
So far, River Shores has created new properties valued at $14.3
million.
The proposal was to be reviewed Wednesday night by the Plan
Commission, with the Common Council scheduled to review it on
Monday.
Last year, West Bend officials took steps to bail out three other tax
financing districts.