City of Aledo Tax Increment Financing Committee met Aug. 9.
Here are the minutes provided by the committee:
A Tax Increment Financing (TIF) Committee meeting of the City of Aledo met in Open Session in the Council Chambers of the City Hall building. ALD. SARABASA called the Committee meeting to order at 7:21 P.M. The roll was called, whereupon the following committee members answered present:
Aldermen MICHAEL CHAUSSE, BARRY COOPER, and LINDA SARABASA. Mayor CHRIS HAGLOCH. Alderman CHRIS KOPP was excused.
Also, present DENNIS DIXON, Alderman, JAY DOHERTY, Alderman, ZACH FRICK, Alderman, JIM HOLMES, Alderman, CHRIS SULLIVAN, City Administrator/Chief of Police, and JAROD DALE, City Clerk.
The following was discussed:
Approval of Committee Minutes: Motion was made by ALD. COOPER and seconded by ALD. CHAUSSE to approve the minutes of the TIF Committee held on 07/08/21. A Unanimous voice vote followed in agreement.
Public Comment: No Report.
Old Business:
Discussion regarding a Professional Services Agreement with Jacob & Klein, Ltd. – Status Update:
ADMINISTRATOR Sullivan reported the city’s current TIF Redevelopment Area to expire on December 21, 2021 and the final increment to be received in 2022. City Staff has consulted with Steve Kline of Jacob & Klein to receive a proposal for the closing of the current TIF Redevelopment Plan and establish a potential new TIF District.
Jacob & Klein, Ltd., of Bloomington, Il., and Economic Development Group, Ltd., of Bloomington, Il., has provided a proposal to establish a Tax Increment Financing (TIF) District within the City. City is looking to engage the professional services of J&K to render legal advice and EDG to render technical advice to assist the City in establishing an annually administering a TIF Redevelopment Plan, Area and Projects to be known as the Aledo TIF District – 2022.
The cumulative professional fees for both J&K and EDG to help with the establishment of the TIF District is quoted as $41,400 plus reimbursable costs for services described in Exhibit 1. The base professional fee relates to a TIF Area containing up to 450 individual parcels, however a per parcel option is included to allow the City to include additional area, if necessary, at a rate of $15 per parcel. The City will also incur other costs related to mailings, publications, engineering, and possible City Attorney expenses as it may relate to any additional annexations. Once underway, J&K will work with the engineering firm of the city’s choice to specify the information needed for the Project and request an estimate for their services be provided to the City in advance of undertaking the work.
On an annual basis, J&K have provided the City the option to engage in their assistance with the ongoing services described in Exhibit 2 at an annual flat fee of $6,000 plus reimbursable costs and an annual CPI adjustment with 2022 as the base year.
J&K reasonably anticipate the City can complete the process by February-2022. All of their legal and consulting fees quoted are cumulative (not duplicated between the firms) and are of course eligible for reimbursement with TIF Funds.
Motion was made by ALD. COOPER and seconded by ALD. CHAUSSE to approve and authorize the execution of a professional services agreement for the close out of Tax Increment Financing (TIF) and Administration of Aledo Tax Increment Financing (TIF) District by and between the City of Aledo, Mercer County, Illinois and Jacob & Klein, Ltd., and The Economic Development Group, Ltd. in the amount of $41,400 and to refer the item to the City Council for final approval. A Unanimous voice vote followed in agreement.
Discussion on Future of a Tax Increment Financing (TIF) District:
The Committee continued discussions related to the hiring of Jacob & Klein, Ltd., as it relates to the close-out of the current TIF District and the establishment of a new TIF District. MAYOR Hagloch advised the Committee that discussions have been held with Steve Kline, Jacob & Klein, Ltd., regarding the addition of developmental residential areas into a new TIF District. MAYOR highlighted potential programs could include the assistance of siding for those residents within the district.
ADMINISTRATOR Sullivan reiterated the discussions with J&K to include the new development in Sponsler’s Subdivision. ADMINISTRATOR noted the “but-for” question would need to be answered in this particular case. ADMINISTRATOR made a statement, “but-for the City putting in the water / sewer / gas infrastructure in the redevelopment of the area in Sponsler’s the development would not happen.”
MAYOR suggested a new TIF could be established in 2022 and connect the TIF District with the two (2) new developments in the north section of town. MAYOR has also discussed the idea of a new Redevelopment Project Area in Aledo with Mercer County
School District Superintendent Scott Petrie, noting Petrie would be supportive of a new district specially to attract new housing.
On an annual basis, J&K have provided the City the option to engage in their assistance with the ongoing services described in Exhibit 2 at an annual flat fee of $6,000 plus reimbursable costs and an annual CPI adjustment with 2022 as the base year.
New Business: No Report.
ADJOURNMENT: There being no further business, motion was made by ALDERMAN CHAUSSE and seconded by ALDERMAN COOPER that the meeting be adjourned. Unanimous voice vote followed in agreement. Meeting was adjourned AT 7:40 P.M.
http://aledoil.org/AgendaCenter/ViewFile/Minutes/_08092021-285
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