Abby reviews activity in its two TIF districts

By Kevin O’Brien

One of Abbotsford’s two active TIF districts is reaching the end of its active lifespan while another is humming along with multiple projects that will be paid for over the next decade, according to city officials at a meeting of the Joint Review Board last Wednesday.

Representatives from the Abbotsford and Colby school districts and someone from Northcentral Technical College attended the meeting at city hall, which included a brief overview of the city’s tax-incremental financing (TIF) districts. TID 5, which was created in 2008 and encompasses land on the east side of the city, reached the end of its expenditure period last year, so no new projects are planned for the district. City administrator Josh Soyk said the city took out a $790,000 promissory note last year to pay for a project on Linden Street, and once that is paid off, the district is slated to close in 2028.

Besides the newly issued debt, TID 5 also used a $326,110 Local Road Improvement Grant to complete the roughly $1 million Linden Street project.

TID 6, on the other hand, ended last year with a negative balance due to a variety of road extensions and other infrastructure projects in recent years. However, Soyk noted that the district is currently projected to take in over $13 million in taxes and other revenue before it closes in 2036, so it should have more than enough to pay off its debt.

(The city has a third TID, number 7, but it overlaps with TID 6, and has very little activity as a result.)

Some of the bigger expenditures in TID 6 this past year include $65,000 in engineering fees for future projects on First and Fifth street projects, $375,000 in debt payments, and $283,000 for purchasing 12 acres of land from Harold Christiansen for future residential developments on the northwest corner of the city. TID 6 also paid for extending Swamp Buck Drive to the west to accommodate new apartments built by Abbyland Foods.

Looking ahead to next year, TID 6’s budget includes $50,000 for improvements to Christiansen Park, $110,000 for engineering costs, and $500,0000 for an extension of Opportunity Drive, which provides access to the city’s newer industrial park north of STH 29.

The budget also includes $50,000 in unspecified incentives for potential developers.

“There is nothing planned as of right now, but if a business were to come forward, that’s what we have available,” Soyk said.