Advanced Barrier Extrustions, or ABX, is planning on adding 50,000 square feet to its facility on Rhinelander's west side.
Monday, the Rhinelander common council approved moving $600,000 from city coffers to help facilitate the expansion. They also approved the mechanism to repay the city. City Administrator Daniel Guild outlined the proposal:
"...transfer $300,000 from the water utility and $300,000 from the wastewater utility to TIF#6. That would total $600,000. Then TIF#6 would make the payment to ABX. After which time we would go through and borrow money to replenish TIF#6, which would pay back the water and wastewater utilities..."
The short-term borrowing will be through local banks, the state or general obligation borrowing.
The added tax base from the expansion would eventually bring more revenue into the city. The concept of a Tax Incremental Finance District is to hold property taxes at a given level, then in subsequent years, the additional tax revenue in the district is used for more development, and more tax revenue.
The council approved three resolutions related to the project, though some final decisions will be coming later.
The council also approved updated investment language for the city, making clearer how money movement like that approved Monday is done.
