tax increment financing

A Personnel and Finance Committee meeting scheduled with this topic on the agenda was canceled.

Staff presented proposed TIF district budgets using the same total property tax revenue as last year, redistributed based on updated increment values, and said numbers would change once levy information arrived.

Staff said TIF districts 6 and 10 were expected to close in 2026 with negative balances.

Staff said TIF districts 15, 16, and 17 might end the year slightly negative due to service fees, despite having years left.

Staff reported the Revolving Loan Fund balance was just over $1 million and said three active loans (VT Industries, Pop Start Pizza, and Violet Inn) were being repaid.

Staff flagged 2026 work to analyze and possibly end some underperforming TIF districts.

Staff noted discussion about potentially acquiring the former Hamilton’s property, with a Dec. 2 status meeting mentioned.

Staff reviewed proposed state legislation that could expand how the city uses TIF, including additional options to support affordable housing and small-lot, owner-occupied housing.

Council discussed the potential added flexibility from the proposed state legislation and how it might fit future housing and infill strategies if the bills pass.

A committee reviewed Revolving Loan Fund and TIF fund balances, including current commitments and remaining capacity, and staff walked through lending strategy and guidelines; no action was taken.

The minutes for the RLF/TIF balance review did not include the actual fund balances or any specific direction changes.

Staff said Two Rivers operates 12 TIF districts and described a 2025-data performance review intended to drive recommendations for early termination of underperforming districts and amendments to active districts to reflect state law changes; the record reflects discussion without a documented vote or named target districts.

Staff provided a summary of activity and finances for each TIF district as part of an annual review.

Staff reported RW Baird was hired to prepare a valuation estimate for all TIF districts, with a report expected the next week.

Council approved a resolution to terminate TIF district 13 after staff said the intended anchor project (a Culver’s at Washington and 22nd) was not moving forward in the near term; vote 6-0.

Council approved a resolution to terminate TIF district 16; staff said it had no active project and had small administrative/audit costs leaving it slightly negative; vote 6-0.

During the TIF district 16 discussion, staff said ending it made sense because it is next to the former Hamilton property and the city may later create a new, larger TIF district tied to Hamilton/East River redevelopment.

Council approved a facade improvement grant not to exceed $17,536 for Cool City Motel (3009 Lincoln Ave.) to replace 28 exterior doors and locking systems, reimbursed through TIF district 11; vote 9-0.

Council approved a facade improvement grant not to exceed $10,000 for Lighthouse Inn (1515 Memorial Dr.) for exterior lighting and signage, reimbursed through TIF district 12; vote 9-0.