Bogdala Pushes $34 Million Expansion of Chrysler Site TIF, Critics Warn of Fiscal Recklessness

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Kenosha Mayor David Bogdala (R)
(File Photo by Kevin Mathewson, Kenosha County Eye)

KENOSHA, Wis. — Mayor David Bogdala’s administration is moving forward with a plan to inject an additional $34 million into the city’s already sprawling Tax Incremental District No. 19, covering the former Chrysler Engine Plant site and surrounding properties on the city’s south side.

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Under a proposal set to go before the Common Council on November 17, the city would significantly increase spending within the district for what officials call “public infrastructure, stormwater management improvements, development grants and professional services.” The district’s boundaries and 2044 termination date would remain unchanged, but its overall project budget would balloon dramatically.

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The City Plan Commission voted earlier this month to recommend approval of the amendment, which includes $10 million for a proposed “Innovation Center,” $10 million to reconstruct 30th Avenue between 52nd and 60th Streets, $9 million in developer incentives for housing projects, $1 million for environmental remediation, $1.5 million for additional buildout of the Kenosha Innovation Neighborhood (KIN), and $2.5 million for land acquisition.

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City records show the proposal was drafted by the Milwaukee-based law firm Quarles & Brady LLP and reviewed by City Attorney Matthew Knight, who signed off on its legality. But fiscal watchdogs and some residents are sounding alarms over the mounting costs tied to Kenosha’s numerous Tax Incremental Financing (TIF) districts, warning that this latest expansion could deepen the city’s long-term debt obligations.

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Bogdala’s plan relies on borrowing against future tax growth in the area — a mechanism known as tax increment financing — to cover immediate construction and development costs. Critics argue the strategy amounts to speculative spending, leaving taxpayers exposed if the promised growth fails to materialize.

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“Every dollar spent on a TIF project today is a dollar the city won’t collect in general property tax revenue for decades,” one local observer said after the plan commission meeting. “That’s fine if the developments boom, but it’s reckless if they don’t.”

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The 2017-created district already covers a large swath of the Chrysler redevelopment zone, which has seen slow progress despite millions in previous TIF commitments. While supporters say the added funding is essential to attract new employers and housing, others question whether pouring more taxpayer-backed money into the site — eight years into its existence — represents sound fiscal policy.

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The proposed amendment faces final votes by both the Finance Committee and Common Council next week. If approved, spending within the district could continue until 2039, with the TIF itself not slated to close until 2044.

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The plan’s official documents conclude that it is “feasible and in conformity with the City of Kenosha Master Plan,” but they also acknowledge that not less than half of the land in the district remains “blighted.” That, critics say, is precisely the problem.

“The city keeps saying these TIFs are about eliminating blight,” another resident commented after reviewing the amendment. “After nearly a decade, if it’s still blighted, maybe it’s time to rethink the strategy instead of doubling down with another $34 million.”

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24 Responses

  1. Each and every common council member campaigns historically on tax accountability, infrastructure, accountability. Right.

    Show us where every single penny is going including what the politicians divi up for their pockets.

    Sounds like an Obama Library in Chicago that’s gone no where or Newsom’s high speed rail to no where in California to me. Sounds to much like a copy cat scam to me.

    26
  2. I think C. Wilson will likely have the final say what goes on there.
    And for years, he always did, after all, it was his former empire.

    1. What else has the mayor done for you to say this? You disagree with all his moves? Have you talked directly to him or at least your alderman?

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      2
  3. Stealing tax dollars, $1 million for environmental remediation, this was supposed to have been accomplished already. Folks Bogdala is spending our future long after his one and done. I say Nooooooooway jose

    12
    1
  4. I think it’s funny how everyone thinks it will be closed in 2044. That TIF will remain open for 40 years.

    Take a look at the TIF along the harbor. That TIF was created with ridiculous projections by Quarles and Brady. If it weren’t for other TIFs bailing out that TIF, it would cause the city to go bankrupt.

    1. I wouldnt say hate, that is a strong word. HOwever, he has lived here for a long time but always worked in IL. He doesn’t understand the real local economy here.

  5. How about instead of putting money into an area that isnt coming back no matter what you do you, spend it fixing the roads in this town, They are awful.

    1. They can also use that money to properly plow our roads ffs. These past five winters have been abysmal in terms of public safety on our roads. Could’ve sworn we turned into Racine overnight with how little they care for their roads from wasted spending. What a bunch of worthless clowns.

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