Tax Incremental District No. 9 Development Agreement
On January 9, the Village Board approved a Development Agreement for Tax Incremental District No. 9 (TID 9) between the Village of Pleasant Prairie and DPML 95th Street, LLC (Dermody Properties). The agreement outlines the phased construction of three or more commercial buildings, including the public and private infrastructure improvements for the LogistiCenter at Pleasant Prairie development. The project aligns with the Village's Comprehensive Plan for growth and development. In addition, it will enhance the value of the surrounding properties and re-develop a portion of the former We Energies Pleasant Prairie Power Plant property located north of 95th Street at 80th Avenue.
"We are thrilled to see the TID 9 Development Agreement come to fruition," stated Jean Werbie-Harris, Community Development Director. "Dermody Properties will be a valuable partner in bringing this project to life, and we appreciate their dedication to ensuring the project aligns with the needs and goals of our Village."
Dermody Properties plans to construct all improvements connected to the project, such as roadways and related water main, sanitary sewer, and stormwater improvements within the development area. The TID 9 Development Agreement includes a Tax Increment Financing (TIF) incentive that will reimburse Dermody Properties for the costs associated with constructing public improvements that will benefit the Village's public services and utilities. The TIF incentive allows TID 9 time to generate the increment needed to reimburse the developer and aids the Village by placing the responsibility of creating and paying for the upfront public infrastructure costs on the developer.
The increment value over the life of TID 9 is estimated to be more than $230 million. Dermody Properties guarantees the evaluation with tax payment obligations based on the project's value creation schedule, which establishes a development value of $45 million by 2025, $96 million by 2027, and $187 million by 2029. The developer anticipates phased construction of up to three or more commercial buildings. The first facility is planned to be approximately 550,000 square feet, the second around 620,000 square feet, and the final building about 1,116,000 square feet. Dermody Properties has also voluntarily agreed to make a monetary contribution to the Village to create a public park monument that memorializes the history of the We Energies project site.