City Council Workshop Meeting
Friday, June 9, 2006
The Mt. Vernon City Council met for a Workshop Meeting on Friday, June 9, 2006 at 1:30 p.m. in the Council Chambers at City Hall, 1100 Main Street, Mt. Vernon, Illinois.
Mayor David E. Keen called the Workshop Meeting to order.
Roll call showed present: Council Member Mike Walker and Mayor David E. Keen. Absent : Council Member Ricky D. Heck and Council Member John Howard.
Mayor David E. Keen stated that this being a Workshop Meeting it was only for discussion on a TIF District.
Mayor David E. Keen introduced Mr. Norm Sims of the Illinois Tax Increment Association. Mr. Sims spoke regarding the possibility of a TIF District for the City of Mt. Vernon. Mr. Sims stated that a TIF District concept is a simple concept. There are 49 states that have TIF’s. The only one that does not have a TIF is Arizona. Mr. Sims gave a brief rundown of his previous employment before he came to the TIF Association. Illinois adopted the TIF concept in the early 80’s.
Mr. Sims stated that the concept of TIF is fairly simple. The implementation can be complicated. The first thing the City needs to do is to pass an Ordinance of Intent for a TIF. The City then needs to identify the area to be in the TIF. Mr. Sims stated that TIF’s end in 23 years but they can be extended for up to 12 years only. Mr. Sims stated that to comply with TIF regulations, the property must meet several issues. One of the main issues is that it must be blighted property. Mr. Sims explained the tax body interest for the TIF and how the funds can be used. Mr. Sims stated that he feels a TIF Consultant would need to be hired. A layout of the project would need to be done. What the TIF allows and what the plans consist of are two questions that will need to be answered. The plans must be all inclusive as TIF plans are very hard to amend. Vacant land can be included in TIF’s but it also has to be blighted.
Mr. Sims stated that a Joint Review Board would need to be appointed. Mr. Sims gave some things that cannot be done with TIF’s. There are many reporting requirements involved in TIF’s and administration costs involved.
Brian Edmison asked if housing could be done in TIF areas. Mr. Sims stated that they could if the area meets the TIF criteria and the housing is for low or very low-income housing. Also if the area is adjacent to and necessary to the TIF District.
Park Plaza Shopping Center was discussed, as it is adjacent to a possible TIF District. Mr. Sims stated that there could be more than one TIF in a city and one TIF can loan another TIF if it is adjacent.
Council Member Mike Walker asked about using TIF’s for schools. Mr. Sims stated that schools cannot be made whole by TIF’s or given TIF increments. Mr. Walker asked if a new City Hall could be built by a TIF. Mr. Sims stated that City Halls have been excluded in the act. Maintenance garages can be built unless specifically excluded. It is possible City Hall could be rehabbed. An old building could be rehabbed for a police department.
Mr. Dennis McEnaney asked if vacant land could be a TIF. Mr. Sims stated that it would have to be blighted or a BUT FOR… area.
Mr. Sims explained that you have three years to use the increment and then it goes back to the tax districts. Mr. Sims stated that there is an annual audit, not just the funds, but also for compliance.
Mr. Sims explained some TIF eligible expenditures and some expenditures that are not. Mr. Sims stated that the downtown area looks like it would be a TIF area as some of the buildings are old, vacant and out of code.
ADJOURNMENT
Motion by Council Member Mike Walker to adjourn this City Council Workshop Meeting. Second by Mayor David E. Keen. Yeas: Walker and Keen. Absent: Heck and Howard