MAXIMIZING TAX BASE & GROWTH. Future Development and Tax Density Considerations

MAXIMIZING TAX BASE & GROWTH Future Development and Tax Density Considerations

SERVICE NEEDS/EXPENSES ARE OUTPACING TAX REVENUES

NEIGHBORING COMMUNITIES

LIKE SIZE COMMUNITIES

SEMI-FIXED BORDERS

Green Field Usually farm fields Not previously developed New Infrastructure Usually near the edges of the city or in the town WAUKESHA S DEVELOPMENT FUTURE Redevelopment / Brownfield Land previously developed Existing Infrastructure More costly Demolition Environmental remediation Paying for improvements that will be removed

PROPERTY VALUE CHANGES 2012-2018 Commercial / Office / Multi-Family Manufacturing Residential (1 & 2 Family) 15.2% Increase $224 million gain 3.31% Increase $7.8 million gain 10.2% Increase $376.8 million gain

TAX REVENUE BY PROPERTY TYPE *Residential = 1 & 2 Family *Commercial = Office, Commercial, Multi-Family

EACH LAND USE SUPPORTS THE OTHERS Business Successful businesses create of vitality of place People want to live in the city and seek employment Manufacturing & Office Provides Employment Employees seek housing near employment Housing Residents drive consumer spending More spending power attracts more businesses

HOW DO WE USE DEVELOPMENT TO ACHIEVE OUR REVENUE GOALS

DEVELOPMENT NEEDS & GOALS Maximize Tax Base & Tax Density Very little land left for green development Redevelop underutilized or underdeveloped parcels Build up (vertically) instead of out to maximize value per acre

DEVELOPMENT NEEDS & GOALS Increase/Maximize Tax Base Very little land left for green development Redevelop underutilized/underd eveloped parcels Build up instead of out to maximize value per acre Attract Residents/ Workforce Development decisions today result in attraction of workforce tomorrow Workforce = business recruitment and investment Diverse workforce needed Service, trades, professional, executive

IN 6 YEARS THIS POPULATION WILL BE 75% OF THE WORKFORCE Jurisdiction Age 20-39 Eau Claire city 36.6% Oshkosh city 34.0% Milwaukee city 32.3% Waukesha city 31.1% West Allis city 30.0% Milwaukee County 30.0% Wauwatosa city 28.7% Racine city 28.2% Janesville city 27.3% Greenfield city 25.3% Skokie, IL 23.3% Menomonee Falls village 21.4% Waukesha County 21.0% New Berlin city 18.5% Brookfield city 15.8% 40% 35% 30% 25% 20% 15% 10% 5% 0% Population Age 20-39 Compared to peer communities and regional comparisons

LOW UNEMPLOYMENT RATES USA = 4% Wisconsin = 2.9% Waukesha County = 2.4%

DEVELOPMENT NEEDS & GOALS Increase/Maximize Tax Base Very little land left for green development Redevelop underutilized/underd eveloped parcels Build up instead of out to maximize value per acre Attract Residents/ Workforce Development decisions today result in attraction of workforce tomorrow Workforce = business recruitment and investment Diverse workforce needed Service, trades, professional, executive Attract Businesses that Create a Diverse Economy Serve residents Provide family supporting employment Diverse sectors to guard against shifts in economy

TOTAL ASSESSED VALUE VS. TAX DENSITY Total Assessed Value = Value of any single property Tax Density = Total assessed value per square acre Relates property value to land consumption City has a finite amount of land to develop Property Assessed Acres Tax Density Value Walgreens $2,400,000 2.14 $1,121,495 per acre People s Park $466,300.05 $9,326,000 per acre

CURRENT VALUE PER ACRE CITYWIDE VALUE PER ACRE 0-500,000 500,001-750,000 750,001-1,000,000 1,000,001-1,500,000 1,500,001-2,500,000 2,500,001-6,000,000 6,000,001-12,500,000 City Tax Revenue $0 - $5,340 $5,341 - $8,010 $8,011 - $10,765 $10,766 - $16,020 $16,021 - $26,700 $26,700 - $64,080 $64,081 - $133,500

MAXIMIZING VALUE PER ACRE Residential

LOT SIZE ROLLING RIDGE SOUTH & TALLGRASS Rolling Ridge South Tallgrass Highest Lowest

SUBDIVISION COMPARISON Rolling Ridge South Avg. lot size =.37 acres Tallgrass Avg. lot size =.58 acres

SUBDIVISION COMPARISON Rolling Ridge South Avg. lot size =.37 acres Avg. assessed value = $339,876 Avg. linear feet of street = 56 feet per lot Tallgrass Avg. lot size =.58 acres Avg. assessed value = $398,279 Avg. linear feet of street = 79 feet per lot

SUBDIVISION COMPARISON Rolling Ridge South Avg. lot size =.37 acres Avg. assessed value = $339,876 Avg. linear feet of street = 56 feet per lot Avg. value per acre = $1,160,824 Avg. City tax revenue per acre = $12,397 Tallgrass Avg. lot size =.58 acres Avg. assessed value = $398,279 Avg. linear feet of street = 79 feet per lot Avg. value per acre = $696,305 Avg. City tax revenue per acre = $7,436

Single Family Comparison Single Family Comparison $1,400,000 $1,200,000 $1,160,824 $14,000 $12,000 $12,397 $1,000,000 $10,000 $800,000 $696,305 $8,000 $7,436 $600,000 $400,000 $200,000 $0 $339,876 $398,279 Average Assessed Value per Parcel Average Value per Acre $6,000 $4,000 $2,000 $0 Average City Tax Revenue per Acre Rolling Ridge South Tallgrass Rolling Ridge South Tallgrass

ANOTHER EXAMPLE South South High High School School Highest Lowest

$1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Single Family Comparison $151,474 $224,490 Average Assessed Value per Parcel East & Grand $1,075,685 $753,875 Average Value per Acre Tenny Tenny $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 Single Family Comparison $11,488 $8,051 Average City Tax Revenue per Acre East & Grand Tenny

MULTI-FAMILY Woodland Hills Condos The Lodge Apartments Fiddlers Creek Condos Highest Lowest

Lodge Apartments Woodland Hills Condos Fiddlers Creek Condos

MULTI-FAMILY Rivers Edge Apartments Mountain Village Apartments Highest Lowest

Madison House Condos Mill Reserve Condos Mountain Village Apartments

River s Edge Apartments Clocktower Condos

Waukesha Lofts Apartments

Average Value per Acre Average City Tax Revenue per Acre $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $1,961,211 $2,384,443 $2,389,257 $4,334,048 $4,997,739 $11,013,127 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $20,946 $25,466 $25,517 $46,288 $53,376 $117,620 $0 $0

MULTI-FAMILY Values are similar whether condo or apartment Often streets are private Generally greater value per acre than single family Underground parking increases tax density

Market driven unit type (Current and Future) OTHER CONSIDERATIONS Residential Development Size Square footage Number of bedrooms Location Suburban or urban Style Detached or attached Nearby amenities

OTHER CONSIDERATIONS Residential Development Market driven unit type (Current and Future) Size Location Style Market driven price point (cost per month) Household Income $18,000 - $43,200 Cost per Month Rent Own $500 500sf studio apartment $90,000 house $1,200 2 Bedroom, 1200sf apartment, duplex or house $235,000 house *Average Home Value in Waukesha = $186,400 Household Income $47,000 - $86,400 Cost per Month Rent Own $1,300 2 Bedroom & 2 Bath apartment, duplex, house 1,250sf-1,450sf $260,000 house $2,400 4 Bedroom 2,900sf house (Heritage Hills Subdivision) $490,000 house Household Income $90,000 - $144,000 Cost per Month Rent Own $2,500 4 Bedroom 2,900sf house (Heritage Hills Subdivision) $510,000 house $3,700 5 Bedroom & 4 Bath 3,000sf house (Tallgrass Subdivision) $3,495 $765,000 house

OTHER CONSIDERATIONS Residential Development Market driven unit type (Current and Future) Size Location Style Market driven price point (per month cost) Entry Level Mid Level Upper Level Workforce Diversity Service industry Manufacturing / Skilled Trades Professional Executives

MAXIMIZING VALUE PER ACRE Commercial

BIG BOX Home Depot Woodman's Walmart Target Highest Lowest

BIG BOX Home Depot Woodman's Walmart Target

STRIP VS. SMALL STAND ALONE COMMERCIAL Silvernail strip Westbrook Highest Lowest

MIXED USE Highest Lowest

15-16 ACRES COMMERCIAL LAND Downtown Home Depot Silvernail Strip Center City tax revenue = $88,883 City tax revenue = $131,316 City tax revenue = $239,705 * Includes Parking ramp property (1.2 acres) @ $0 assessment

Total Value City Tax Revenue $40,000,000 $35,000,000 $35,444,288 $400,000 $350,000 $378,545 $30,000,000 $300,000 $25,000,000 $22,444,288 $250,000 $239,705 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 $8,322,378 $12,295,506 Home Depot Silvernail Downtown Downtown w/ Clearpoint Apts. $200,000 $150,000 $100,000 $50,000 $0 $88,883 $131,316 Home Depot Silvernail Downtown Downtown w/ Clearpoint Apts.

OTHER CONSIDERATIONS Commercial Development Land used for surface parking lowers tax density Assessment Challenges Big Box National & Regional Retailers

MAXIMIZING VALUE PER ACRE Industrial

INDUSTRIAL PARKS Paramount Industrial Park Airport Industrial Park Highest Lowest

INDUSTRIAL PARKS West & Bypass Pearl St. Highest Lowest

OTHER CONSIDERATIONS Industrial Development Employment Drives Housing and Commercial Development Stable & diverse economy Company Total Employees 2018 GE Healthcare 3,700 Eaton/Cooper Power 888 HUSCO 366 GE Power & Water 250 Metal Tek 450 SPX 646 TOTAL 6,300

Average Value per Acre Top Private Employers vs. 2 Residential Neighborhoods Average City Tax Revenue per Acre Top Private Employers vs. 2 Residential Neighborhoods $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 $144,957 $341,398 $164,778 $170,308 $169,869 $171,418 $730,657 $1,075,685 $753,875 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 $1,548 $364 $1,760 $1,819 $1,814 $1,831 $7,803 $11,488 $8,051 Average Value per Acre Average City Tax Revenue per Acre

MAXIMIZING VALUE PER ACRE Office

OFFICE 3 story office 3 story office 2 story office Highest Lowest

OFFICE 3 story office 3 story office 2 story office Parking Ramp

Value per acre City Tax Revenue per acre $2,500,000 $25,000 $2,000,000 $1,930,201 $20,000 $20,615 $1,500,000 $1,366,524 $15,000 $14,594 $1,000,000 $967,685 $10,000 $10,335 $500,000 $5,000 $0 Grandview 3 story office Grandview 2 story office Grand & South 3 story office $0 Grandview 3 story office Grandview 2 story office Grand & South 3 story office

OTHER CONSIDERATIONS Office Development Employment Daytime population that makes area desirable for retail Diverse & stable economy

VALUE PER ACRE Highest concentration areas

CENTRAL CITY Highest Lowest

WAYS TO INCREASE VALUE PER ACRE Build Vertically $454,508 $681,792 $1,136,300 $486,250 $486,250 $486,250 $486,250 $719,100 City Tax Revenue = $12,136 City Tax Revenue = $28,452 $2,664,100

BUILD VERTICALLY Tax Density $2,417,659 per acre $13,320,500 per acre

Value per acre $2,069,743 City Tax Revenue per acre $22,105 MAXIMIZE REDEVELOPMENT OPPORTUNITIES Value per acre $11,013,127 City Tax Revenue per acre $117,620 Before Redevelopment After Redevelopment

WAYS TO INCREASE VALUE PER ACRE Shared Facilities Underground Parking & Multiple Stories Lot Size

BUILD VERTICALLY SHARED FACILITIES UNDERGROUND PARKING

SHOREWOOD OAKLAND AVE. Blocks of surface parking Low rise buildings

MEETING NEEDS & REACHING GOALS Future Needs & Goals Increase/Maximize Tax Base Attract Residents/Workforce Attract Businesses that Create a Diverse Economy Next Steps Maximize tax density in each development/redevelopment Encourage more intensive development in appropriate areas Incentives may be needed Zoning code requirements Minimize single story commercial development Focus on a variety of housing opportunities Balance land uses to meet needs and maximize tax density

WHICH WOULD YOU PLANT? $164 Per Acre Net $231 Per Acre Net