Data center pushback; Sheboygan voters push TIF limits

Residents in Sheboygan, Wisconsin, are organizing a petition to amend a city ordinance concerning Tax Incremental Financing (TIF) districts. This grassroots effort follows a stalled attempt to enact a moratorium on data center zoning changes and approvals in the city. Led by individuals like Lisa Salgado, the petitioners aim to require voter approval for any TIF districts exceeding $10 million and for developer incentives over $5 million. The proposed changes also seek to prevent project splitting to bypass voter consent, mandate public release of financial documents, prohibit non-disclosure agreements for large TIF projects, and require competitive bidding for public infrastructure funded by TIF. Salgado expressed concern about citizens bearing the debt for infrastructure for wealthy private companies. Sheboygan Mayor Ryan Sorenson, however, argues that such a proposal would obstruct development, worsen the housing shortage, and increase costs for residents and businesses, ultimately harming the city's long-term economic health by introducing uncertainty for developers. This initiative mirrors a similar successful effort in nearby Port Washington, where voters approved a comparable ordinance change in April. The Metropolitan Milwaukee Association of Commerce is currently challenging the Port Washington ordinance in court, which was approved after the Common Council had already greenlit a TIF for a large Vantage data center campus.