Action to refinance debt related to Sturgeon Bay’s fourth tax increment district is expected to be taken Tuesday by the city council. Based on advice from financial consultant, Robert W. Baird, an amount not to exceed $3,350,000 will be used to cover $3.1 million of short-term notes acquired in 2015 plus capitalized interest on the new notes. The estimated interest rate on the refinancing is 2.63%. Tax increment district four primarily encompasses the city’s west waterfront area. During discussions on the committee level, it was noted that it made sense to continue short-term borrowing until it is known how much development can be expected in the district. By its nature, a tax increment district or “TID” is intended to spur development in a blighted area with the investment in infrastructure paid for through increased property taxes captured over a period of years.
