Village Approves Taxing Districts For Kohl's, Wacker Neuson and Eaton Corp.

The Menomonee Falls Village Board gave its approval to create taxing districts to support development by key companies in the village.

The board approved by Eaton Corp., Wacker Neuson and hopefully a new Kohl's corporate headquarters.

Tax Incremental District (TID) No. 10 includes the Woodland Prime office park and stretches north of Good Hope Road to the east of , and also forms a wedge south of Good Hope Road along Appleton Avenue that includes a residential subdivision.

The taxing district was approved to accommodate two scenarios — either the construction of Kohl’s headquarters, or other commercial development. Kohl’s headquarters would occupy 45 acres on the northwest portion of the taxing district. If Kohl’s doesn’t locate within the district, the parcel would be split into two roughly 20-acre sites for future development.

To encourage Kohl's to locate in Menomonee Falls, the village would front $23 million for infrastructure improvements on the site, and provide $18 million in grants and incentives for the project.

Village Manager Mark Fitzgerald has said Kohl's will make a final decision in fall regarding the location of their new headquarters.

Eaton Corp. has also to build a 102,000-square-foot office and research laboratory within the same taxing district. The new building will cost Eaton roughly $15 million, but would receive a total of $3 million in public financing from the village. This includes a $500,000 grant from the village and $2.5 million in tax payments over the next 10 years.

Details of the development agreement are still in the works between the company and village officials.

The second taxing district approved by the Village Board Wednesday is TID No. 11, which includes Wacker Neuson. The company is building a 97,000-square-foot along Pilgrim Road. However, during construction they ran into bedrock that complicated the process and required blasting and rock crushing adding costs to the project.

To help offset some of those costs, the village will spend $3.3 million to help the company with its expansion project.

The village utilizes taxing districts as a way to attract development and help offset initial costs of construction. Over time, the village will be paid back by the companies they help with additional tax dollars that are added by improving the property values within the district.

The two taxing districts need one final approval. A joint board of review will meet Aug. 31 and take that final vote. The joint board includes representatives from other taxing districts as well as Waukesha County.