LA CROSSE, Wisconsin (WXOW) – La Crosse took a possible step towards a new development agreement with Kwik Trip on Monday.
The company is considering a roughly $32-million expansion to its facility in La Crosse, and would like to see the city aid the development through a reverse TIF agreement.
TIF stands for tax incremental financing.
A reverse TIF would require La Crosse to give back part of the extra tax revenue that would be generated in one of its TIF districts by a Kwik Trip expansion.
Monday, the La Crosse Planning Commission voted to add more area to its TIF District 13.
"TIF 13 we call the Kwik Trip TIF," said Director of Planning Larry Kirch. "The city has already done two development projects with Kwik Trip since TIF 13 was created in 2006."
Kirch added that Wisconsin law prevents taxes on manufacturing equipment, so he said only about $15-million of Kwik Trip's proposed expansion would be taxable.
Kirch said the city also wants to use approximately $7-million of that additional TIF revenue for infrastructure improvements – mainly to its roads.
The possible TIF expansion will now be discussed by the City Council's finance committee, and later by the council of the whole.
If it's approved, the city would then begin discussions about a possible agreement with Kwik Trip.
The mayor has previously said he's not opposed to TIF money funding city improvements, but does not like the idea of the money going back into private businesses.
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