Neenah celebrates creation of 3,000 jobs, $45 million in tax base from 2 TIF districts

Duke Behnke, Appleton Post-Crescent
Updated ·5 min read
Superintendent Mary Pfeiffer, left, receives a $413,063 check for the Neenah Joint School District from Neenah Mayor Jane Lang during a press conference celebrating the successful closure of the city's tax incremental financing districts 5 and 6.
Superintendent Mary Pfeiffer, left, receives a $413,063 check for the Neenah Joint School District from Neenah Mayor Jane Lang during a press conference celebrating the successful closure of the city's tax incremental financing districts 5 and 6.

NEENAH — Government and business leaders gathered Wednesday at Plexus Corp.'s manufacturing plant in the Southpark Industrial Center to celebrate the closure of two tax incremental financing districts.

TIF District 5, which assisted with the redevelopment of downtown Neenah's east end, and TIF District 6, which assisted with the expansion of the industrial center, helped create more than 3,000 jobs and generate $44.5 million in new tax base.

The city also used the two districts to set aside more than $850,000 to support affordable housing in the city.

"This is certainly a day (of) which to be proud, as the closure of these two districts demonstrates the usefulness and effectiveness of this community development tool that has been in use in the city of Neenah since the early 1980s," Mayor Jane Lang said.

The successful closure of the districts is particularly noteworthy because both were designated as distressed in 2015. The designation extended their payback period by 10 years — from 2020 to 2030 — but only two additional years were needed to fully recover the city's investments and generate the money for affordable housing.

An audit earlier this year confirmed numbers.

A TIF district is a public funding tool that allows a municipality to capture gross property tax revenues from new development within a defined area to pay for costs incurred or promised to bring about that development. The tax revenues from the increment are diverted from the other taxing entities — school district, county and technical college — for as long as the district is in effect.

Now with the retirement of the districts, the revenues will be benefit all four taxing entities.

TIF District 5: Neenah Riverwalk and downtown office towers

Neenah created TIF District 5 in 1993 to spur downtown redevelopment. It generated $15.8 million in new tax base.

Prominent projects were the redevelopment of Shattuck Park and the Neenah Riverwalk and the construction of three office towers — One Neenah Center, Two Neenah Center and Three Neenah Center.

Tenants in the towers include ThedaCare, Bergstrom Automotive, Alta Resources, Di Renzo & Bomier and Remley Law.

"The towers were really the catalysts to the redevelopment or rebirth of our downtown that continues today," Neenah Director of Community Development Chris Haese told The Post-Crescent.

Other projects in the district included the renovation of the Holiday Inn Neenah Riverwalk (now DoubleTree by Hilton Neenah) and the restoration and reuse of the former Equitable Reserve Association building.

TIF District 5 was declared distressed in 2015. Haese said its performance was affected by the Great Recession of the late 2000s and by changes in state law that had "unintended consequences" for TIF districts.

A 2010 change lowered the incremental property value in TIF District 5 by $8.4 million. "At that time it was a loss of almost 50% of our value," Haese said.

Despite the setback, Neenah was able to close the district only two years into the extension period.

Plexus CEO Todd Kelsey speaks during a press conference recognizing the closure of Neenah's tax incremental financing districts 5 and 6.
Plexus CEO Todd Kelsey speaks during a press conference recognizing the closure of Neenah's tax incremental financing districts 5 and 6.

TIF District 6: Plexus Corp.'s manufacturing plant

Neenah created TIF District 6 in 1997 to assist with the expansion of the Southpark Industrial Center. It generated $28.7 million in new tax base.

The centerpiece project was the construction of Plexus Corp.'s $50 million, 410,000-square-foot manufacturing plant at 2444 Schultz Drive.

"It still is the largest single-built building in the city," Haese said.

Without TIF assistance, Haese said "this project could very well be in some distant location."

Plexus, headquartered in Neenah, is a contract manufacturer of complex electronic products. CEO Todd Kelsey said the company employs 25,000 people worldwide, including more than 1,000 at the Neenah plant.

"We help create the products that build a better world," Kelsey said, mentioning advanced surgical systems, diagnostic equipment, health care imaging equipment and military communications.

TIF District 6, similar to District 5, overcame its distressed designation to close just two years into the extension period.

Plexus Corp.'s manufacturing plant at 2444 Schultz Drive in Neenah is the centerpiece project of Tax Incremental Financing District 6.
Plexus Corp.'s manufacturing plant at 2444 Schultz Drive in Neenah is the centerpiece project of Tax Incremental Financing District 6.

Neenah uses surplus for tax stabilization fund

Neenah collected excess revenues from TIF districts 5 and 6 to ensure all of the city's costs were recovered. After the audit, the surplus was divided among the city, school district, county and technical college.

The surplus will result in the following payments:

  • Neenah: $459,262

  • Neenah Joint School District: $413,063

  • Winnebago County: $246,890

  • Fox Valley Technical College: $48,729

Neenah placed its allocation in a tax stabilization fund.

"This will create a revenue stream amortized over the next 10 years as transfers to the general fund," Finance Director Vicky Rasmussen said.

The surplus is in addition to the $858,492 the city collected to support affordable housing.

Neenah has six remaining TIF districts

  • TIF District 7: Neenah created the district in 2000 to assist with the redevelopment of the west-side business corridor (Kohl's, Walmart, etc.). The high-performing district has served as a donor to the underperforming TIF District 8. To date, it has yielded $112.9 million in new tax base. Its projected closure date is 2031.

  • TIF District 8: The city established the district in 2001 to assist with the redevelopment of the city's riverfront and the shuttered Glatfelter paper mill. It is not self-supporting, was designated as distressed in 2015 and receives help from TIF District 7. It has yielded $72.8 million in new tax base. Its projected closure is 2032.

  • TIF District 9: Created in 2015 to support the expansion of Menasha Corp. along Interstate 41, the district has generated $9.9 million in new tax base. Its projected closure is 2033.

  • TIF District 10: The district was created in 2015 to assist with the redevelopment of the Downtown Gateway District and Arrowhead Park. It has generated $16.5 million in new tax base. Its projected closure is 2042.

  • TIF District 11: The district was created in 2017 for the Pendleton Park development. It has produced $17.6 million in new tax base. Its projected closure is 2032.

  • TIF District 12: The district was established in 2022 to support the Bridgewood redevelopment. It anticipates $22 million in new tax base before its closure in 2042.

Contact Duke Behnke at 920-993-7176 or dbehnke@gannett.com. Follow him on Twitter at @DukeBehnke.

This article originally appeared on Appleton Post-Crescent: Neenah celebrates creation of 3,000 jobs and $45 million in tax base