City Keeping Two TIDS Open To Boost Affordable Housing Funds

The Sturgeon Bay Common Council agreed April 7 to make use of a provision in state law that will allow the city to extend the life of Tax Incremental Districts (TIDs) #2 and #3 by a year to generate additional funds in the city to support affordable housing.

By using the additional year’s increment collected in 2027 from the 2026 tax roll, 75% of the property-tax increments received would be used to benefit affordable housing, with the remaining 25% available to improve the city’s housing in general.

Affordable housing is defined by state statute as housing that costs no more than 30% of a household’s gross monthly income, such as the apartment units Spoerl Commercial plans to build in TID #6 along North 14th Avenue using low-income housing tax credits from the Wisconsin Housing and Economic Development Authority...

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Leo's notes: Sturgeon Bay is leveraging a powerful but often underused state tool by extending two mature TIDs for an extra year to generate roughly $1.6 million for housing initiatives. The move will direct the majority of proceeds toward affordable housing, with remaining funds supporting broader housing improvements citywide. Smart municipal TID extensions allow communities to recycle past economic development success into future housing production without creating new taxes. As more Wisconsin communities confront housing shortages, I hope this strategy becomes an increasingly common part of the local housing toolbox.