PUBLIC HEARING
March 3, 2008
The Mt. Vernon City Council met for a Public Hearing on Monday. February 3, 2008 at 6:30 p.m. in the Community Building at Veterans Park.
Mayor Mary Jane Chesley called the Public Hearing to order and stated that this Public Hearing is for the purpose of the Consideration of the Downtown Tax Increment Financing Redevelopment Project and Redevelopment Area of Mt. Vernon, Illinois.
Mayor Chesley introduced Mr. Keith Moran of DMI to speak regarding the TIF Project. DMI is the Company the City has chosen to work on the TIF Projects in Mt. Vernon. Mr. Moran stated that the City has established a Downtown TIF. Mr. Moran stated that you cannot just do a TIF anywhere. The areas have to meet certain qualifications before it can become a TIF District. Some of the qualifying factors are: deteriorating buildings 35 years old or older, the area developed before a Comprehensive City Plan was in place, areas not growing as well as other areas of town. Mr. Moran stated that 57% of the buildings are deteriorating, 45% are vacant in this area. Mr. Moran stated that DMI has done studies on the proposed TIF area for progress, architecture, land use, demolitions, rehabilitations, streets, curb and guttering, water and sewer lines and eligibility for a TIF. Mr. Moran reminded everyone that a TIF is not an increase in property taxes; it is a tool to stimulate the area.
Council Member Mike Walker asked Mr. Moran to explain in lay language what a TIF is and how the developers get reimbursed. Mr. Moran stated that an easy way to explain this is to begin with a vacant parcel of ground that the City owns. A developer comes in and wants to build a business, say a pharmacy. The City sells the property to the business. There had been no tax income on the property because it was vacant. After the business builds it’s building, say that there is a value of $210,000.00. Now the parcel will have a value of $210,000.00. The Assessor will come by and assess the property. Now the value goes from 0 to $49,000.00 property taxes. The City could encourage by using a portion of the taxes back to the business or the City could run water lines, sewer lines, work on a parking lot or something of equal value to help both them and the business.
Mr. Ron Moyer asked if Centralia has a TIF and how will this help the City of Mt. Vernon. He stated that we do not want to do this and end up like Centralia. He stated that Centralia seems to be dying.
City Manager Ron Neibert stated that the TIF should bring in new businesses and encourage older businesses to grow in the downtown area. Mr. Neibert stated that we have 5 businesses already pending for rehabilitating downtown.
Council Member Mike Walker stated that we need incentives to make the downtown area better, and this also spreads out to South 10th Street and close to the High School. Council Member Mary Burgan stated that Mr. Moyer’s business would be in the TIF area. City Manager Ron Neibert stated that that would allow Mr. Moyer to rehab his buildings, move or expand his business. Mr. Neibert stated that the Downtown Mt. Vernon Development Corporation would also be able to help with growth in the TIF area. TIF would be a tool to be used.
Council Member David Wood stated that a TIF wouldn’t solve everything. But it is a good incentive to work with other tools to help. Mayor Mary Jane Chesley stated that the TIF is an incentive to help the plan grow.
Ms. Emma Johnson of Bell Street stated that she is all for Mt. Vernon growing and redeveloping. She asked if it could help her to start a new small business in town. City Manager Ron Neibert stated that a TIF could help her and work for her in starting a business. She would need to present her business plan and a Redevelopment Agreement could help her. Mr. Neibert also mentioned the Revolving Loan, and the Rend Lake Small Business connections that could be of help to her.
Mr. Keith Moran of DMI stated that this would not happen overnight. The City, DMDC and DMI have been working on this project for quite a while.
Mr. Chris Campo asked when the rehabilitation money would be refunded. City Manager Ron Neibert stated that a percent or total of the new taxes generate
from the project will be unobligated funds. The City will have different agreements with many different property owners on how their funds would be handled so there is really no direct answer on the availability.
Mr. Charles Rightnower asked if the TIF would help him. He owns and is remodeling apartments. City Manager Ron Neibert stated that at this time the TIF would not help with residences.
Mrs. Cyndy Mitchell of DMDC spoke saying that the DMDC strongly supports this TIF Plan and she believes that it will greatly help the City, especially the downtown area. Mrs. Mitchell spoke about the strategic plan, the master plan and the City’s comprehensive plan. Mrs. Mitchell stated that 50 businesses have moved into the downtown area.
Mr. Jay Koch, a business owner and a member of the DMDC stated that it is not at all conducive to try to rehabilitate any of the older buildings without the incentives. Mr. Koch stated that without a TIF a lot of the old buildings downtown would be torn down rather than saved. Mr. Koch stated that it is amazing what can be provided by a TIF once the money is built up in the funds. It is a great tool.
Hearing no further questions or comments, Mayor Mary Jane Chesley called the Public Hearing to a close at 6:50 p.m.