ECONOMIC CONDITION AND OUTLOOK Recent unemployment rates have decreased in the Milwaukee metropolitan area as throughout the nation. Ozaukee County’s 2016 unemployment rate decreased to 3.0 percent compared to the 2015 unemployment rate of 3.4 percent. The Ozaukee County 2016 rate remains lower than the Wisconsin and Federal 2016 unemployment rates of 3.7 and 4.7 percent, respectively. The Village’s tax base increased in valuation from 2015 to 2016 by approximately $50.5 million, or an overall increase of 4.2 percent. Of the 4.2 percent increase, approximately 0.9 percent represented an offsetting increase in values due to new construction, with an increase in value of existing properties representing 3.3 percent. In 2016, the Village had $29.9 million of valuation in building permits, $3.3 million less than the building permit valuation in 2015. New residential construction totaled $2.0 million in 2016, a decrease of $0.7 million in comparison to 2015. Permits for commercial construction accounted for 56 percent of 2016 construction valued at $16.8 million. Residential construction, including single and multi-family buildings accounted for 43 percent or $12.9 million of construction valuation. Industrial and tax-exempt construction made up the remaining 1 percent or $0.1 million. The Tax Incremental District (TID) No. 2 – Grafton Business Park was created on June 3, 1996, to provide for the installation of public improvements to promote industrial and related office development in the Grafton Business Park. Wisconsin Statutes allow the Village to receive tax increments until the net project costs are fully recovered or until a date 27 years after the formation of the District, whichever occurs first. The public improvements were substantially completed in 1997 and eight industrial or office projects have been constructed within the district. As of January 1, 2016, the tax incremental district equalized value increase between the tax incremental base value of 1996 and the current equalized value of all taxable property within TID No. 2 is $20.8 million. The Village approved an amendment to the original plan in 2009 to include the ability of the district to donate funds to TID No. 3 – Downtown Redevelopment. In 2011, the Village approved an additional amendment to include the property where Regal Beloit office building was constructed in 2012. This property was integral in solidifying the economic development of the Village. In 2015, Kapco Metal Stamping completed a $3.7 million addition to their existing facility. TID No. 3 – Downtown Redevelopment was created on May 3, 1999, to provide for the infrastructure improvements, traffic circulation, public parking, streetscape improvements, pedestrian amenities, and way-finding improvements necessary to stimulate private reinvestment and redevelopment within the downtown area. As part of this effort, a Community Development Authority (CDA) was created in 1999. The CDA has been a volunteer organization involved in the planning and development process. In 2000, five properties were acquired at the intersection of 12th Avenue and Washington Street and the structures razed. Two of these properties were sold in 2001 for the development of a full service bank, BMO Harris Bank, with additional non-bank offices. The property at the northwest corner was sold in 2004 for the construction of a 5,000 square foot office building. The remaining properties were sold in 2005 for the construction of two mixed use buildings, 22,000 and 12,400 square 3