Port Washington residents approve referendum requiring TID vetting

A referendum that will require future tax incremental financing districts worth $10 million or more to go through voter approval has passed in Port Washington.

The referendum was added to the ballot after a group of residents gathered more than 1,000 signatures and submitted them to the city in response to a TID created last year to support the $15 billion Vantage Data Centers project. The data center, which will be operated by Oracle and OpenAI, is currently under construction north of the city.

In 2025, the city approved Tax Incremental District No. 5 to pay $175 million for infrastructure improvements on the data center site near Interstate 43. The district will last 20 years.

A total of 2,710 residents voted “yes” on the April 7 referendum with more than 66% of the vote, Ozaukee County records showed. The referendum question doesn’t affect TID No. 5, but future TIDs worth $10 million or more will need approval through new referendums.

Municipalities designate certain geographic areas as TIDs to spur economic development, offering incentives to prospective developers to start new construction or renovation projects. The property tax revenue generated by the increased property value inside the district is used to pay for public infrastructure improvements.

In January, the Metropolitan Milwaukee Association of Commerce filed a lawsuit against Port Washington challenging the referendum and arguing that it would create uncertainty for future development.

The Associated General Contractors of Greater Milwaukee, Building Advantage, Commercial Association of Realtors-Wisconsin, NAIOP Wisconsin Chapter and the Wisconsin Realtors Association joined MMAC’s lawsuit.

In February, an Ozaukee County judge turned down the group’s motion for a preliminary injunction.