Cottage Grove and DeForest report continued development growth
New construction has expanded the tax base in both Dane County communities, giving local leaders more room to fund services.
Cottage Grove and DeForest have continued to add construction and development, a trend that affects how their budgets can grow under Wisconsin's property tax levy limits.
Cottage Grove Administrator Matt Giese discussed development at a Sept. 21 Village Board meeting. The village recorded 28% net new construction, supported by large projects including a 154-acre Amazon distribution center valued at $399 million as of Jan. 1.
DeForest reported net new construction growth of 7.36%. Projects include new housing and development at The Yards, where a hotel is under construction.
Why construction matters to budgets Under state rules, net new construction helps determine the amount a municipality may increase its tax levy. Local leaders say new buildings can expand the tax base, while available land, roads and utility connections influence whether further projects can proceed.
DeForest Administrator Bill Chang cited access to interstate highways and developable land as advantages shared by the communities. Giese said Cottage Grove does not expect its 2027 net new construction rate to exceed the current year's level. Officials stressed that the allowed levy increase does not automatically dictate the final tax rate.
