City Council Public Hearing
July 16, 2007
The Mt. Vernon City Council held a Public Hearing on Monday, July 16, 2007 at 6:00 p.m. in the Community Building at Veterans Park.
The purpose of this Public Hearing was for Consideration of the Homestead Tax Increment Financing Redevelopment Plan and Redevelopment Project and Redevelopment Area of Mt. Vernon, Illinois.
Mayor Mary Jane Chesley called the Public Hearing to order.
Mr. Eric White of DMI Consultants spoke regarding the proposed Homestead TIF Project. Mr. White stated that this is the second Public Hearing on this project. Mr. White stated that some issues surfaced after the First Public Hearing. Mr. White stated that it is not that the TIF has changed, but the City has 14 to 90 days to pass or rescind. The plans have not changed. A second access to the property has been looked at. It is statutory process to hold this second hearing. The City has exceeded the 90 days limit on this issue.
The plan and budget has been worked on together then the 1st Public Hearing was held. Some of the issues addressed by the public at that time were worked through. Now we’re back again. No closer than the last Public Hearing. Mr. White stated that he would answer questions from the public.
Mr. Gene Rettig of #16 Edgewood stated that he thought the Zoning and Planning Commission was to rewrite the plan. Mr. Rettig asked if the previous plan didn’t have the wrong owners listed. Rewriting the redevelopment agreement was discussed at the Zoning & Planning Commission. Mrs. Pat Rettig asked if this is a TIF agreement for any TIF. Mr. White stated that it is not; it is specifically for the Doe Valley TIF. City Manager Ron Neibert explained the specific document he was speaking of. Mr. Rettig asked when the City would be repaid. Mr. Rettig asked if this could be opened up for other developers. Mr. White stated that this plan would allow the City to negotiate with someone else. Mr. Neibert stated that this describes the property of Doe Valley and what can be done there, but it is not a specific document for Doe Valley and Mr. Miller and Mr. Campbell’s names are not on this document. Mrs. Rettig asked how this property
became a TIF area. Several members of the audience stated that they do not feel that they live in a blighted area. Mr. White explained that the term blighted is not used in a derogatory way. It simply means the area can be improved by the project. Mrs. Pat Rettig asked what the people need to do to say that they do not want this area rezoned to R-3 zoning. To zone it R-1 would not be bad, but not R-3.
Mr. Ron Neibert stated that these things need to happen.
Mr. Eric White stated that the Downtown TIF a different type of project.
Mrs. Erma Schalter stated that the people living in the area don’t want the area to be a TIF and don’t want the area to be known as a blighted area. Mr. James Augustine stated that TIF was created to bring about better developments. The developers use the tax breaks to make money. Mr. Eric White stated that the tax rates wouldn’t change because of the TIF; taxes after the TIF would be the same as before. Mr. Augustine said that the TIF funds go back into TIF only. City Manager Ron Neibert stated that 70% of the funds go to the developers until the TIF is paid back. Council Member Mike Walker stated that the thing to do is get the developer paid out as soon as possible to get the money back on the tax rolls. Council Member David Wood asked Mt. Vernon High School Superintendent Terry Milt how much tax is generated now from this property. Mr. Milt stated that the taxable assessed value is $26,144.00 per year, which means the tax on this property the High School receives is $54.00 per year. City Manager Neibert stated that once the developer is paid out the City can decertify the district and all of the money goes back into the tax rolls. Mr. James Augustine stated that the taxes would go up in twelve years or so. Mr. Augustine spoke regarding a University of Illinois Study of TIF Districts showing that TIFs do not promote growth in the areas and do not help the school system. Schools lose in the TIF districts.
Mrs. Pat Rettig stated that she would suggest an alternative location for this type of development or zoning to R-1 and having fewer units.
City Manager Ron Neibert stated that this is a Redevelopment Plan that authorizes and gives guidelines to negotiate future agreements.
Mrs. Art Schulte asked if it was correct that the developer gets 70% of the taxes and the City would get 30%. Can the City use their 30% for improvements in the area. City Manager Ron Neibert stated that the City could issue Revenue Bonds to cover the improvements in the area.
Mr. Eric White stated that there are 800 plus TIFs in the state. City Manager Ron Neibert stated that the City has to approve the plan, which does not approve the individual project, but establishes the TIF area and agrees that the area statutorily complies with TIF parameters, then annex the property into the City limits, have a portion of the 76 acres rezoned from flood plain to R-3, and approve an agreement which would set guidelines for what costs can be reimbursed through TIF funds and at what percentages. It is an all or none agreement. Nothing can be done until all of the items are agreed upon.
Mayor Mary Jane Chesley closed the Public Hearing.