A plan to redevelop the 134-acre parcel that includes Regency Mall, several of the out lot parcels, Target and the High Ridge Center strip mall may move forward.
At a meeting set for Tuesday night, the Common Council will likely send a development agreement between the City of Racine and Hull Property Group, which owns Racine Mall LLC, to the Finance and Personnel Committee. The agreement includes forming a tax incremental finance (TIF) district 20 and a business improvement district.
Located at Green Bay Road and Durand Avenue, the TIF district includes 24 parcels and calls for a $15.7 million investment that will happen over several phases. This first phase involves a $4 million upgrade to the interior of the mall.
Here’s how a TIF district works.
Jordan Brown, a business recruitment specialist for the Racine County Economic Development Corporation, said that the intent is to have developers start working on re-positioning their presence in the area through possible expansion projects and attract new development.
The project is developer driven, which means the money won’t be spent until the developer creates the increment.
The agreement calls for the following:
- In exchange for a $3,955,000 immediate rehabilitation investment in the Racine Mall property and another $2,500,000 in tenant incentives (total minimum investment by the developer is $6,500,000), Racine Mall, LLC requests:
- Tax Increment District sharing totaling $3,955,000 for eligible expenses related to a Phase I and Phase II investments (interior and exterior remodeling, tenant incentives) 100% of tax increment generated over the life of the Tax Increment District (27 years)
- Total minimum investment by the developer is $6,500,000
- Minimum net assessed value for the property owned by Racine Mall, LLC would be $8,954,000 over the
next 27 years.