The Waunakee Village Board approved an amendment to Tax Incremental Financing District (TID) 6 to include the Kilkenny West development via a 4-3 vote on Monday, April 15.
Trustees Nila Frye, Sam Kaufmann and Robert McPherson were the dissenting votes.
Created in 2015, TID 6 is mostly built out and has an expected closure date in 2028. The proposed amendment would likely push that closure to 2031 according to Village Administrator Todd Schmidt.
If approved once more by the Joint Review Board, the TID would grow to include the 28-acre Kilkenny West development. Plans currently have the development mostly zoned as residential but include several highly sought after mixed-use and commercial lots.
As the applicant, Livable Communities by Don Tierney and the Tierney family would receive Tax Increment Financing (TIF) assistance from the village to aid infrastructure improvements related to the site’s development.
The request is for $2.8 million to be reimbursed by the village through the TID after the Tierney family invests $5.82 million to undertake the infrastructure improvements.
Revamping Woodland Drive, completing necessary roadways in Kilkenny West and completing lighting and landscaping installations along S. Century Ave. were some expected projects listed by village staff.
Todd Taves from Ehlers Public Financial Advisors stated that the Waunakee has the ability to pay this reimbursement in cash, rather than through borrowing. He explained that the favorable returns from TID 6 to date have enabled the village to do so.
At the April 15 meeting, and at several others on the topic dating back to 2023, residents and trustees have been split on amending TID 6.
Much of the controversy rests on the agreement’s “but for” requirements. One key aspect of approving TIF is whether or not the feasibility of the benefactor developments rests on the funds they will receive.
Taves stated that based on information that Ehlers received, the Tierney family’s project would meet bare minimum returns with the $2.8 million reimbursement.
Some residents who attended the April 15 meeting opposed the amendment and doubted its necessity for the development.
“My biggest issue with this is, does it meet the ‘but for’ test? We’ve seen development come in Waunakee without TID. We’ve seen Veridian and Heritage Hills with a lot of apartments come in and lots of roads, and they didn’t ask for TIF money. They were able to do it without,” said resident Linda Ashmore.
Trustee Robert McPherson shared a similar sentiment. He encouraged the developer to continue to seek out partners interested in the site’s commercial lots to provide private funding for the infrastructure improvements.
McPherson referenced a 2019 letter from the Tierney family to the board stating that Festival Foods was interested in the lot at the corner of Woodland Dr. and Hwy. Q and offered to providing funding for the infrastructure.
Don Tierney responded, saying that those conversations had long since fallen through. He added that without the TID amendment, the project would not be able continue under its current plan.
Tierney alluded to possibly rezoning to the commercial lots to residential zoning to bring the development to reality.
Other trustees supported the amendment in part for fear of this exact result.
Trustee Tricia Braun stated that she supported the amendment because it would ensure the corner lot stays commercial.
Village President Kristin Runge referenced the lot in question as the “most desirable corner left in the village.”
Runge also expressed a desire to continue to bring commercial development to Waunakee residents and diversify the municipality’s tax base as reasons for her support of the amendment.
Some residents supported the change due to improved pedestrian safety around the Waunakee Intermediate School and the quality infrastructure the Tierney family has produced.
“Full disclosure, I do build homes. I build in Don’s (Tierney) neighborhoods. I exclusively build in Don’s neighborhoods for one reason, because of the infrastructure and the type of developments Don puts together,” said resident Don Morello.
The benefits, like the one Morello cited, ultimately outweighed the potential drawbacks for the board on April 15.
Their split vote of approval now sends the proposed TID 6 amendment to the Joint Review Board (JRB) on Thursday, April 25.
That board, comprised of a representative from the village, county, school district and Madison Area Technical college, as well as one resident, will consider the final approval then.
Local News
Comments / 0