I have been reviewing a number of the other topics and apologize up-front if I missed some of the discussion in other threads. I will be up-front in my support for a TIF as a tool to encourage economic development which I feel is sorely needed in Riverside for a number of reasons. I feel that I am in a considerable majority with regard to the need for a moderate redevelopment of the CBD. The number may not still be 80% as quoted in the Northern Illinois study. It could be higher, it could be lower, but I think its hard to argue that its not a majority of residents. The question then seems to be, what is the right approach for encouraging this redevelopment? A considerable amount of time has been spent by a number of Village Boards, Village Commissions, and Village Residents over a substantial number of years. To date, I do not feel a better alternative than a TIF has been identified. As other posters have ascertained, a TIF is not "good" or "bad", it is merely a financing vehicle. The focus should then be on the Redevelopment Plan. I feel that with some modification to the existing Redevelopment Plan, a vast majority of Residents complaints can be addressed. Please remember that the statutory approval process has not yet even begun and the Redevelopment Plan remains a draft. If a TIF with a proper Redevelopment Plan is not the answer, I would really like to hear other suggestions. I recognize that some Residents want no changes to the status quo, many of who are represented in other threads. While I respect that, I would like to hear from more Residents who have ideas. If there is a better way, everyone would like to hear constructive realistic suggestions.
Riverside Info » About Riverside
If Not TIF, then What?
(38 posts)-
Posted Wednesday Dec 20, 2006 20:05 #
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Not sure if this best spot for the following but here it goes.
Mr. Sedivy brings up some good points as do many others who have posted at various places in this forum. He points out that, in his opinion, no better incentive for redevelopment than a TIF has been identified. I agree with that statement. I am willing to look at anything.
One thing I keep reading and hearing is people asking “How is the village going to spend 20 million dollars?— The answer to that is, assuming they get 20 million dollars which is not likely, is very slowly over 23 years. We know one thing that any outlay of cash will be from money in hand. I see this as braking mechanism for uncontrolled & unwise spending.
Mike Tomecek asked in another area that he wants to know who is going to get the funds. That is an impossible question to answer because nobody knows how much money will be generated, who will apply for the grants and what the needs will be over the next 23 years. All a plan would do would outline the goals the village government has for the TIF district. I do not want a plan that specifies what type of businesses should be in our village. I want the market to figure that out. It is not the government's job to do that. If a bicycle shop works that is great but if doesn't that is fine too as long the village is doing everything it can to give new and current businesses the freedom to prosper.
I am also concerned about that people want to have a referendum for village residents about the TIF. I do not like this. The average Riversidian does not have the interest to educate themselves about the TIF. We are citizens under a representative government not a true democracy. We elect leaders to make decisions for us. We expect the elected leaders to be knowledgeable about the issues that come before them. I firmly believe that the elected leaders of Riverside are knowledgeable about the TIF and will make the right decision. If you feel that is not the right decision do not vote for them in the future.
I am new to this website but see it as great place to share ideas.
Posted Thursday Dec 21, 2006 12:38 # -
Mike, I have trouble keeping everyone's affiliations straight without a scorecard. Are you a member of the EDC?
Thanks for joining the discussion.
Chris
p.s. I ask because if you're not, you should be.
Posted Thursday Dec 21, 2006 12:38 # -
Chris, I am a member of the EDC but I certainly can not speak for the EDC and am representing my own views. I volunteered about a year ago because I was frustrated with what I viewed as a deterioration of our CBD and was worried about the long-term financial health of the Village. I should also disclose that I have 2 kids at Central and an infant at home so I have every incentive to make sure this is not detrimental to the schools. The Village really needs people that are interested in being part of the solution to become more involved.
Posted Thursday Dec 21, 2006 13:15 # -
Thanks Mike. I have two kids, one at Central and know your wife but not you (I don't think.) I appreciate your input and it's clear you have the best interests of the village and schools in mind. Thanks for joining the discussion. I think everyone here understands the views expressed are their own, unless explicitly stated otherwise. We certainly have a talented pool of individuals in town and I've learned a lot from their input on this forum.
Chris
Posted Thursday Dec 21, 2006 13:22 # -
It is always good to see new names.
HRCollins: Mr Wiaduck pointed out that the money is to be used for infrastructure improvements. Presumably that would in turn attract businesses here. I am trying to understand how it is cost-effective that $20M includes only $8M for infrastructure improvements, as stated in the present TIF/Redev Plan draft.
How would individual businesses apply for "grants"? What sorts of things are the grants for? I am under the impression that infrastructual improvements (including parking) with some marketing will, of themselves, attract business. And that those business will be attracted by and subject to market forces.
Thank you.
Posted Thursday Dec 21, 2006 14:30 # -
I don't believe HRCollins introduced the term "grant" as you are interpreting it. I read it to mean "reimbursement with TIF proceeds" by someone who is willing to take the risk that their project will provide incremental taxes in the future to partially reimburse the costs they are incurring up-front. The increment needs to be created before the revenue is available to either the private individual or the government to receive. If the criticism of the TIF is that it doesn't provide up-front dollars to address our aging infrastructure, I agree that is a limitation as currently contemplated. The TIF could leverage a General Obligation Bond, but that would require a public referendum that would obligate the Village to repay the Bonds. I do not believe that is being considered by the Village. I can not, however, come up with a mechanism that accelerates the improvement of the infrastructure except for a Tax Referendum or Special Services Area. Both of these mechanisms I feel are much more troubling than a TIF. As I understand it, it is the private development that generates the Tax Increment and a portion of the Increment goes to reimburse the private developer in order to make the project feasible in the first place. The balance is then available to re-invest within the TIF boundary.
If there are other ideas on addressing the infrastructure issues, I would like the opportunity to research the ideas.
Posted Thursday Dec 21, 2006 15:01 # -
Thank you. Well, to me grant means the same as reimbursement with TIF proceeds. What are the circumstances under which we would be giving money to a private business?
Posted Thursday Dec 21, 2006 15:22 # -
As I understand it, a private business owner must make the case that his project is not financially feasible without some support in the form of TIF reimbursement. The private individual/business than spends the money to re-develop a piece of property which later gets re-assessed at a higher amount as a result of the improvements. This re-assessment generates incremental tax revenue, a portion of which goes back to the private business while the remainder can be used for other costs allowed for in the redevelopment plan. This is how the TIF essentially pays for itself, but it is back-ended as currently proposed. It would potentially allow a property owner to charge rents that a small business owner can afford to pay and still make the project feasible. If I have misspoken, I encourage others more experienced with a TIF to correct me.
Posted Thursday Dec 21, 2006 15:41 # -
Catherine - here is an example of a project for which funding might be granted to a private business. Let say a new ABC store opens in one of the village older buildings and currently has parking for 6 cars. All those spots are normally used but not at all times. The former owner of the store and parking lot did not maintain the parking lot properly. The new owner also realizes that it possible to reconfigure the lot to allow parking for 10 cars, an increase of 67%. This, however, will involve a new street entrance. He does not have the funds to pay for the repairs or reconfiguring. He is in the TIF area so he is eligible to apply for funds to repair and reconfigure his lot. In his grant request he states that he will use 5 of the spots for his store and allow the public to use 5 spots. The money is then granted from the TIF funds for the repair and reconfiguring.
This is a win-win for ABC Store and the Village of Riverside. ABC store gets it lot repaired and 5 additional parking spots are now available in the Central Business District.
If there was no TIF money available Riverside would be left with a poorly maintained parking lot and 5 less parking spaces.
This is a simplified version of the process as I understand it. Perhaps Mr. Sedivy can confirm this.
Posted Friday Dec 22, 2006 10:24 #
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