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City of East Moline Committee of the Whole met Jan. 16.
Here are the minutes provided by the committee:
ROLL CALL
Mayor Freeman called the meeting to order and directed the City Clerk Wanda Roberts-Bontz to call the roll. The following Alderpersons were present: The following Alderpersons were present: Olivia Dorothy, Jeffrey Deppe (remote), Nancy Mulcahey (remote will only be listen to the meeting – no vote), Adam Guthrie, Rhea Oakes, Lynn Segura, and Jose Rico. 7:06 p.m.
ADDITIONS/CORRECTIONS TO AGENDA
None
Adoption of Project Labor Agreements on Public Works Projects (Mark Rothert, City Administrator)
A Project Labor Agreement (PLA) is a contract between the owner of a project (e.g. a municipality) and a set of labor unions. A PLA functions like a pre-hire agreement covering all crafts on a large, complex, long term construction project in order to establish comprehensive employment terms and conditions for construction projects. It operates a lot like a “job-site constitution,” establishing worksite conditions, project execution, and protocols to resolve labor disputes without resorting to strikes and lockouts. PLAs may also include community workforce goals that increase access to construction jobs for veterans, local residents, disadvantaged workers, and small businesses. The principal aim of a Project Labor Agreement is to promote stability and productivity.
PLAs maintain project continuity by preventing employee strikes and employer lockouts. They also include a process for dispute resolution to ensure all partners can address concerns in a uniform manner. Project owners benefit from having access to a stable and skilled workforce that helps the project finish on time and on budget. Union hiring halls, which have a robust system to systematically track workers’ skills and characteristics, help contractors meet their hiring goals. For workers, unions advocate for worker's rights and working conditions, help resolve on the job issues, and connect workers to important services and training. Contractors may comply with community workforce provisions, if included in a PLA, which mandate that they hire workers who meet certain criteria, such as those who live in local areas; are from economically stressed areas; are women and racial/ethnic minorities; veterans; or disadvantaged workers.
The Illowa Construction Labor Management Council recently approached the City of East Moline to request that the City adopt a policy to utilize PLAs (aka IMPACT Agreements) for future public works projects.
Recently, the County adopted similar PLA policies in recent years:
• Rock Island County (2023), all public works projects over $400,000
• Rock Island County (2021), street and bridge projects over $650,000
• City of Rock Island (2022) on all city projects over $500,000
• City of Moline (2023) on all city capital projects over $500,000, unless waived by 2/3 of city council.
• City of Springfield (2023), all public works projects over $50,000
Project Labor Agreements, specifically the ILLOWA IMPACT Agreement, have been used successfully in East Moline in the past, and they provide assurances for quality of work and project timeliness. While these have been applied to large multi-million dollar projects in the past, smaller projects should similarly not be subject to poor workmanship or delays in construction. Staff therefore recommends adopting a policy that would require the use of a PLA on public works projects of the City over $500,000, unless an exception is warranted and granted by 2/3 of the City Council.
RECOMMENDATION/REQUESTED ACTION: Approve
A motion was made by Alderperson Rico, seconded by Alderperson Dorothy to concur with the recommendation as presented. Upon roll call the following voted in favor: Dorothy, Deppe, Guthrie, Oakes, Segura, and Rico. Motion carried.
ADA Transition Plan Update (Tim Kammler, Director of Engineering)
The Americans with Disabilities Act (ADA) requires all public entities, regardless of size, to conduct a self evaluation of its programs, services, facilities, policies, and procedures. Public entities with 50 or more employees, in addition to the ADA public notice and self-evaluation, must establish a grievance procedure, designate a responsible employee (as an ADA Coordinator) to coordinate ADA compliance and develop an ADA transition plan to remove barriers to programs and services.
East Moline has been advised that the State of Illinois is undertaking a project is to increase ADA compliance and improve accessibility within Illinois. The Illinois DOT will be encouraging and supporting public entities to comply with their administrative requirements of the ADA and implement accessibility improvements. A copy of the IDOT circular letter is attached for review. The overall goal of this Statewide Project is to increase ADA compliance and improve accessibility within Illinois. In addition to ADA code requirements, the city must also adhere to PROWAG guidelines developed specifically for access to pedestrian facilities that exist within the public right-of-way. These guidelines ensure that sidewalks, pedestrian street crossings, pedestrian signals, and other facilities for pedestrian circulation and use constructed or altered in the public right-of-way by state and local governments are readily accessible to and usable by pedestrians with disabilities. PROWAG outlines best practices for areas not fully addressed by the ADA/ADAAG Standards (FHWA January 23, 2006, Public Rights-of-Way Access Advisory). The final rule for these guidelines is effective as of September 7, 2023; PROWAG guidelines will be mandatory once they are adopted for enforcement by the Department of Justice and the Department of Transportation, which is expected to occur in 2024.
To assist the city in meeting the ADA Transition Plan requirement, staff have obtained a proposal from Klingner Associates for a logical first phase of assessment and plan. This proposal includes an ADA assessment of city buildings, parks and parking lots that have public access (including the municipal pool), and an assessment of the city's communication efforts for visual and hearing impaired. A copy of the proposal, including detailed scope of services, is attached for review and consideration.
FINANCIAL IMPACT: Budgeted Item - $40,000.00
| Line Item # | Line-Item Title | Department | Amount Budgeted | Available Funds | Amount Requested |
| 025-4000-24-312.4 | NHR Sales Tax | Sidewalk Program | $50,000 | $50,000 | $20,000 |
| 042-4000-24-495.0 | Downtown TIF | Capital Outlay $400,000 | $400,000 | $20,000 |
TOTALS Totals $450,000 $450,000 $40,000
RECOMMENDATION/REQUESTED ACTION:
Approve Klingner Engineering proposal; recommend approval to full City Council.
A motion was made by Alderperson Rico, seconded by Alderperson Deppe to concur with the recommendation as presented. Upon roll call the following voted in favor: Dorothy, Deppe, Guthrie, Oakes, Segura, and Rico. Motion carried.
Clearwell Repair Engineering Services (Brianna Huber, Water Treatment Plant Director)
As previously discussed, the Water Treatment Plant clearwell is in need of repair. The project has been delayed due to the need to complete some distribution system improvements to ensure proper water supply during the clearwell project. Therefore, staff is recommending the City engage the services of an engineering firm to help evaluate the situation, provide repair recommendations, develop bid specs, complete the bidding process, and oversee project construction. Due to the time sensitive nature of this project, a proposal was sought from Crawford, Murphy and Tilly based on a Qualifications-Based Selection process. The attached professional services agreement calls for the following scope of work and costs:
• Investigation phase $15,000
• Design phase $26,000
• Bidding phase $ 4,000
• Construction phase $22,000
TOTAL $67,000 (not to exceed amount)
As the work outlined in the scope of work is necessary to complete a repair of the clearwell, staff recommends approval to move forward with Crawford, Murphy and Tilly for clearwell repair project engineering services.
FINANCIAL IMPACT: Budgeted Item - $40,000
| Line Item # | Line-Item Title | Department | Amount Budgeted | Available Funds | Amount Requested |
| Water Utility Cash Reserve Fund | N/A | Water Utility | N/A | $67,000 | $67,000 |
| TOTALS | $67,000 | $67,000 |
A motion was made by Alderperson Oakes, seconded by Alderperson Guthrie to concur with the recommendation as presented. Upon roll call the following voted in favor: Dorothy, Deppe, Guthrie, Oakes, Segura, and Rico. Motion carried.
Professional Services Agreement to Assessment to Assess and Create TIF District (Mr. Mark Rothert, City Administrator) PULLED
The City has shown an interest to aggressively foster economic growth; help existing businesses; fix aging infrastructure; address deteriorating neighborhoods; and spur various types of residential development within the community. The City has options to implement both a Tax Increment Financing District (TIF) and Business Development District (BDD) to incentivize such growth and revitalization, particularly in key areas of the community that include:
• Avenue of the Cities;
• Industrial Park;
• Quad City Downs;
• I80/I88 Corridor;
• Various identified parcels for new residential growth.
Attached as Exhibit A is a proposed “Boundary Map” for potentially developable areas in the City where a TIF and BDD District would be beneficial. Please note that the boundaries for both a proposed TIF and BDD are partially coterminous and are purposely designed to connect all existing TIF and Business Development Districts. In the past, the City of East Moline has not connected or coordinated its incentives and resources available through its existing TIF and Business Development Districts. By connecting these districts with new districts, as well as, layering TIF and BDD incentives, along with Enterprise Zone benefits and CPACE, the City of East Moline could create a very powerful set of tools to help meet its development and revitalization goals.
ABOUT TIFs and BDDs
Tax Increment Financing (TIF) is a development financing tool by which cities, towns, and villages may develop and revitalize their community. A TIF District's revenues ("tax increment") come from the increased assessed value of property and improvements that occur within the District. Once a TIF District is established, the "base" assessed value is determined. As vacant land and dilapidated properties develop with TIF assistance, the equalized assessed valuation (EAV) of those properties increases. New property taxes resulting from the increased assessed valuation above the base value create an incremental increase in tax revenues generated within the TIF District. The "tax increment" created between the "base" and the new EAV is captured, deposited into a special city TIF account and used solely for reinvestment into the TIF District. The real estate tax increment can be used as a source of revenue to reimburse certain costs for public and private redevelopment projects either by issuing TIF Revenue Bonds or by reimbursing developers on a "pay-as-you-go" basis.
All of the other overlapping taxing bodies continue to receive real estate tax revenue from the “base” assessed valuation, so there is no loss of revenue to those local taxing bodies. The maximum life of a TIF District is 23 years. When the TIF ends and the City’s investments in both public and private redevelopment projects within the TIF redevelopment area are fully repaid, property tax revenues are again shared by all the taxing bodies.
All taxing bodies then share the expanded tax base – the growth which would not have been possible without the utilization of Tax Increment Financing. The majority of TIF Districts in Illinois are established and annually administered pursuant to the Tax Increment Allocation Redevelopment Act (65 ILCS 5/11- 74.4 et. seq.).
A Business Development District is a special financing program created by a municipality to encourage the development of new businesses in targeted geographical areas of the community. This program enables municipalities to attract development on vacant properties and redevelop existing properties within a designated BDD Area. New business development will increase local services and amenities, increase employment opportunities, and increase sales and property tax revenues to the municipality and other taxing bodies. To help fund public infrastructure or private development projects that benefit the BDD and City, the district may impose and collect up to 1.0% additional retail sales tax and hotel/motel taxes to invest in such projects. Municipalities generally have the same powers in the BDD as with a TIF district that include: installing, repairing, constructing, reconstructing, or relocating public streets, public utilities, and other public site improvements; constructing public improvements, including but not limited to buildings, structures, works, utilities, or fixtures; renovating, rehabilitating, reconstructing, relocating, repairing, or remodeling any existing buildings, structures, works, utilities, or fixtures; acquiring, managing, conveying or otherwise disposing of real and personal property for the purposes of a development or redevelopment plan; and clearing any area within a business district by demolition or removal of any existing buildings, structures, fixtures, utilities, or improvements, and to clear and grade land.
BDD’s generally have the same “eligible project costs” to which TIF funds can be applied to support on public or private projects. These costs include plans and studies; land acquisition; site preparation; public infrastructure; renovations to existing buildings; and relocation costs. One notable difference from TIF Districts is that a BDD can help pay for costs related to new construction. BDD are different from a TIF District in that the statutory process to establish a BDD is less complicated than creating a TIF District, because a BDD does not affect the collection or distribution of real estate taxes.
The BDD Fund receives increased retail sales taxes and/or hotel taxes generated by commercial-retail development occurring within the BDD Area. As is the case with TIF, a BDD Area must be a contiguous boundary, the municipality must prepare a BDD Redevelopment Plan and hold a public hearing. A BDD can usually be established within 60-90 days by a simple majority vote of the municipality’s corporate authority. A BDD may be established for a period not exceeding twenty-three (23) years.
RECOMMENDATION
In order to determine the viability of a new TIF district and BDD in East Moline, the boundary area requires a firm specializing in TIF district and BDD creation to assess parcels-of-interest and draft a redevelopment plan.
Under a qualifications-based selection process, staff is recommending that The Economic Development Group LTD / Jacob & Klein, Ltd. (J&K/EDG) be selected to help the City in analyzing the potential for new TIF and Business Development Districts. J&K/EDG consists of two partnering firms based in Bloomington, IL that work across the state as a single service provider for the creation and annual administration of Tax Increment Financing (TIF) Districts and Business Development Districts. J&K/EDG has demonstrated an ongoing effectiveness in helping municipalities manage the ongoing complexities of TIF Districts, Business Development Districts, and other incentive programs. J&K/EDG have established more than 220 TIF Districts and numerous Business Development Districts throughout Illinois and currently administers TIF Districts for municipalities throughout the state. They also annually administer hundreds of intergovernmental agreements and private redevelopment agreements for more than 80 Illinois municipalities. The firm also holds a competitive advantage with over 30 years of Illinois TIF experience and undertaking the difficult tasks and responsibilities of complying with a multitude of statutory requirements; offering easy-to-understand analyses; and taking care of the nuanced details of TIF/BDD administration.
Staff recommends entering into a Professional Services Agreement with J&K/EDG that generally provides for the following services and costs:
COST/FEE
| BDD District Establishment | Fee |
| BDD establishment fee
(includes analysis of nearly 2,000 parcels; redevelopment plan creation; public hearing process and notification, creation of designating ordinances) | Forthcoming on Monday |
| Estimated reimbursable costs of J&K/EDG relating to TIF establishment | Forthcoming on Monday |
| TOTAL |
| BDD Annual Administration | Fee |
| BDD annual administrative fee and financial reporting (combined, unduplicated J&K/EDG fee) | Forthcoming on Monday |
| Estimated reimbursable costs relating to annual BDD administrative services | Forthcoming on Monday |
| TOTAL |
| TIF District Establishment | Fee |
| TIF District establishment fee
(includes analysis of nearly 2,000 parcels; redevelopment plan creation; public hearing process and notification to interested parties, creation of designating ordinances) | Forthcoming on Monday |
| Estimated reimbursable costs of J&K/EDG relating to TIF establishment | Forthcoming on Monday |
| TOTAL |
| TIF DISTRICT Annual Administration | Fee |
| TIF District annual administrative fee, financial reporting and Joint Review Board administration (combined, unduplicated J&K/EDG fee) | Forthcoming on Monday |
| Estimated reimbursable costs relating to annual TIF administrative services | Forthcoming on Monday |
| TOTAL |
The attached Exhibit B provides a comparative look at TIF and BDD activity in other Illinois communities, namely Pekin and Canton Illinois. Both municipalities created “connector” TIFs and a BDD district spanning their communities. Pekin’s five (5) TIF districts generate approximately $1.1 million annually in TIF increment to address development and infrastructure needs. Pekin’s BDD generates $3.3 million annually. Canton has three (3) TIF districts that collectively generate $1.2 million, while its newly established BDD (2022) generates $400,000 annually. These districts have shown results in creating new funds for municipalities to address various needs, while creating a substantial return on investment for funds spent initially to establish the districts.
It is important to note here as well that the consultants will undertake a study to determine the eligibility of parcels and the suitability of creating both a TIF District and Business Development District. While we are proceeding with the notion that we want to create a TIF District and BDD, the hiring of the consultant does not mean that the City has already committed to create these districts at this time. Said analysis of parcels needs to be undertaken; public and business community input needs to be gained; discussions with our community partners such as school districts need to take place; and ultimately, the City Council has the final say on creation either of these districts. The Mayor has also requested that the city concurrently host an informational meeting on the creation of the BDD and TIF districts to gain feedback from the business community. This informational meeting will likely be held in the coming weeks. If at any point the City Council decides not to move forward with either the Business Development District, TIF District, or both, the Professional Services Agreement can be canceled and the consultant will only be paid for work completed.
TIMELINE
Timing, however, is of the essence as it relates to the Business Development District. Designating ordinances for the BDD need to be turned into the Illinois Department of Revenue by April 1, 2024 in order for any BDD sales tax rate to take effect by July 1, 2024. If submitted after April 1, 2024, any approved BDD sales tax rate would take effect next January 2025. Therefore, below is a tentative schedule for implementation of the BDD:
| 1 | Professional Services Agreement with EDG/J&K - Committee of the Whole Meeting | 1/16/2024 |
| 2 | Public Informational Meeting with Business Community | 2/1/2024 |
| 3 | Professional Services Agreement with EDG/J&K - City Council Meeting | 2/5/2024 |
| 4 | City approves ordinance proposing the approval of a BDD Redevelopment Plan and designation of a BDD; and sets a date for a Public Hearing | 2/19/2024 |
| 5 | First Publication of Notice of Public Hearing | 2/18/2024 |
| 6 | Second Publication of Notice of Public Hearing | 2/26/2024 |
| 7 | Public Hearing is held | 3/4/2024 |
| 8 | City approves ordinance to approve the BDD Redevelopment Plan and designate the BDD Area and impose applicable BDD Taxes | 3/18/2024 |
| 9 | City files with the Illinois Department of Revenue a copy of the ordinance to impose applicable BDD Retailers' Occupation Tax, BDD Service Occupation Tax and BDD Hotel Operators' Tax | Before 4/1/2024 |
| 10 | BDD sales tax takes effect | 7/1/2024 |
| 1 | Professional Services Agreement with EDG/J&K - Committee of the Whole Meeting | 1/16/2024 |
| 2 | Public Informational Meeting with Business Community | 2/1/2024 |
| 3 | Professional Services Agreement with EDG/J&K - City Council Meeting | 2/5/2024 |
| 4 | Establish Interested Partied Registry by Ordinance & Set a Date for Public Meeting | 2/19/2024 |
| 5 | Public Meeting Mailing | 3/18/2024 |
| 6 | Submit Draft Redevelopment Plan to the City | 3/29/2024 |
| 7 | Public Meeting | 4/1/2024 |
| 8 | Ordinance to Set a Date for a Public Hearing | 4/15/2024 |
| 9 | Certified Mailings to Taxing Districts | 4/19/2024 |
| 10 | Certified Mailings to Taxpayers | 4/30/2024 |
| 11 | 750' Residential & IPR Mailings | 5/3/2024 |
| 12 | JRB Meeting | 5/8/2024 |
| 13 | First Publication of Notice of Public Hearing | 5/13/2024 |
| 14 | Second Publication of Notice of Public Hearing | 5/20/2024 |
| 15 | Public Hearing | 6/3/2024 |
| 16 | Approve Final Ordinances to Establish TIF District (earliest date) | 6/17/2024 |
| 17 | EDG/J&K requests certification of initial TIF base values from Rock Island County | 6/30/2024 |
| Line Item # | Line-Item Title | Department | Amount Budgeted | Available Funds | Amount Requested |
| 046-4000-24-901 | Economic Development | TIF-Kennedy Dr. | $178,823 | $178,823 | TBD |
| 042-4000-24-901 | Economic Development | TIF-Downtown | $13,580 | $ 13,580 | TBD |
| Fund Balance | Fund Balance | TIF-Downtown | n/a | $407,555 | TBD |
| 010-4333-29-860 | Miscellaneous | ARPA Funding | $61,141 | $ 61,141 | TBD |
| TOTALS $253,544 | $661,099 | TBD | |||
RECOMMENDATION/REQUESTED ACTION: Approval
THIS ITEM WAS PULLED
Professional Services Agreement to Assessment to Assess and Create Business Development District (Mr. Mark Rothert, City Administrator)
The City has shown an interest to aggressively foster economic growth; help existing businesses; fix aging infrastructure; address deteriorating neighborhoods; and spur various types of residential development within the community. The City has options to implement both a Tax Increment Financing District (TIF) and Business Development District (BDD) to incentivize such growth and revitalization, particularly in key areas of the community that include:
• Avenue of the Cities;
• Industrial Park;
• Quad City Downs;
• I80/I88 Corridor;
• Various identified parcels for new residential growth.
Attached as Exhibit A is a proposed “Boundary Map” for potentially developable areas in the City where a TIF and BDD District would be beneficial. Please note that the boundaries for both a proposed TIF and BDD are partially coterminous and are purposely designed to connect all existing TIF and Business Development Districts. In the past, the City of East Moline hasn’t connected or coordinated its incentives and resources available through its existing TIF and Business Development Districts. By connecting these districts with new districts, as well as, layering TIF and BDD incentives, along with Enterprise Zone benefits and CPACE, the City of East Moline could create a very powerful set of tools to help meet its development and revitalization goals.
ABOUT TIFs and BDDs
Tax Increment Financing (TIF) is a development financing tool by which cities, towns, and villages may develop and revitalize their community. A TIF District's revenues ("tax increment") come from the increased assessed value of property and improvements that occur within the District. Once a TIF District is established, the "base" assessed value is determined. As vacant land and dilapidated properties develop with TIF assistance, the equalized assessed valuation (EAV) of those properties increases. New property taxes resulting from the increased assessed valuation above the base value create an incremental increase in tax revenues generated within the TIF District. The "tax increment" created between the "base" and the new EAV is captured, deposited into a special city TIF account and used solely for reinvestment into the TIF District. The real estate tax increment can be used as a source of revenue to reimburse certain costs for public and private redevelopment projects either by issuing TIF Revenue Bonds or by reimbursing developers on a "pay-as-you-go" basis.
All of the other overlapping taxing bodies continue to receive real estate tax revenue from the “base” assessed valuation, so there is no loss of revenue to those local taxing bodies. The maximum life of a TIF District is 23 years. When the TIF ends and the City’s investments in both public and private redevelopment projects within the TIF redevelopment area are fully repaid, property tax revenues are again shared by all the taxing bodies.
All taxing bodies then share the expanded tax base – the growth which would not have been possible without the utilization of Tax Increment Financing. The majority of TIF Districts in Illinois are established and annually administered pursuant to the Tax Increment Allocation Redevelopment Act (65 ILCS 5/11-74.4 et. seq.).
A Business Development District is a special financing program created by a municipality to encourage the development of new businesses in targeted geographical areas of the community. This program enables municipalities to attract development on vacant properties and redevelop existing properties within a designated BDD Area. New business development will increase local services and amenities, increase employment opportunities, and increase sales and property tax revenues to the municipality and other taxing bodies. To help fund public infrastructure or private development projects that benefit the BDD and City, the district may impose and collect up to 1.0% additional retail sales tax and hotel/motel taxes to invest in such projects. Municipalities generally have the same powers in the BDD as with a TIF district that include: installing, repairing, constructing, reconstructing, or relocating public streets, public utilities, and other public site improvements; constructing public improvements, including but not limited to buildings, structures, works, utilities, or fixtures; renovating, rehabilitating, reconstructing, relocating, repairing, or remodeling any existing buildings, structures, works, utilities, or fixtures; acquiring, managing, conveying or otherwise disposing of real and personal property for the purposes of a development or redevelopment plan; and clearing any area within a business district by demolition or removal of any existing buildings, structures, fixtures, utilities, or improvements, and to clear and grade land.
BDD’s generally have the same “eligible project costs” to which TIF funds can be applied to support on public or private projects. These costs include plans and studies; land acquisition; site preparation; public infrastructure; renovations to existing buildings; and relocation costs. One notable difference from TIF Districts is that a BDD can help pay for costs related to new construction. BDD are different from a TIF District in that the statutory process to establish a BDD is less complicated than creating a TIF District, because a BDD does not affect the collection or distribution of real estate taxes.
The BDD Fund receives increased retail sales taxes and/or hotel taxes generated by commercial-retail development occurring within the BDD Area. As is the case with TIF, a BDD Area must be a contiguous boundary, the municipality must prepare a BDD Redevelopment Plan and hold a public hearing. A BDD can usually be established within 60-90 days by a simple majority vote of the municipality’s corporate authority. A BDD may be a period not exceeding twenty-three (23) years.
RECOMMENDATION
In order to determine the viability of a new TIF district and BDD in East Moline, the boundary area needs requires a firm specializing in TIF district and BDD creation to assess parcels-of-interest and draft a redevelopment plan.
Under a qualifications-based selection process, staff is recommending that The Economic Development Group LTD / Jacob & Klein, Ltd. (J&K/EDG) be selected to help the City in analyzing the potential for new TIF and Business Development Districts. J&K/EDG consists of two partnering firms based in Bloomington, IL that work across the state as a single service provider for the creation and annual administration of Tax Increment Financing (TIF) Districts and Business Development Districts. J&K/EDG has demonstrated an ongoing effectiveness in helping municipalities manage the ongoing complexities of TIF Districts, Business Development Districts, and other incentive programs. J&K/EDG have established more than 220 TIF Districts and numerous Business Development Districts throughout Illinois and currently administers TIF Districts for municipalities throughout the state. They also annually administer hundreds of intergovernmental agreements and private redevelopment agreements for more than 80 Illinois municipalities. The firm also holds a competitive advantage with over 30 years of Illinois TIF experience and undertaking the difficult tasks and responsibilities of complying with a multitude of statutory requirements; offering easy-to-understand analyses; and taking care of the nuanced details of TIF/BDD administration.
Staff recommends entering into a Professional Services Agreement with J&K/EDG that generally provides for the following services and costs:
COST/FEE
| BDD District Establishment | Fee | |
| BDD establishment fee
(includes analysis of nearly 2,000 parcels; redevelopment plan creation; public hearing process and notification, creation of designating ordinances) | Forthcoming on Monday | |
| Estimated reimbursable costs of J&K/EDG relating to TIF establishment | Forthcoming on Monday | |
| TOTAL | ||
J&K/EDG will also provide annual administration of the BDD; financial reporting and unlimited access to their staff attorneys regarding development questions, incentives and deal structuring via developer agreements.
| BDD Annual Administration | Fee |
| BDD annual administrative fee and financial reporting (combined, unduplicated J&K/EDG fee) | Forthcoming on Monday |
| Estimated reimbursable costs relating to annual BDD administrative services | Forthcoming on Monday |
| TOTAL |
| TIF District Establishment | Fee |
| TIF District establishment fee (includes analysis of nearly 2,000 parcels; redevelopment plan creation; public hearing process and notification to interested parties, creation of designating ordinances) | Forthcoming on Monday |
| Estimated reimbursable costs of J&K/EDG relating to TIF establishment | Forthcoming on Monday |
| TOTAL |
J&K/EDG will also provide annual administration of the TIF District; financial reporting and unlimited access to their staff attorneys regarding development questions, incentives and deal structuring via developer agreements.
| TIF DISTRICT Annual Administration | Fee |
| TIF District annual administrative fee, financial reporting and Joint Review Board administration (combined, unduplicated J&K/EDG fee) | Forthcoming on Monday |
| Estimated reimbursable costs relating to annual TIF administrative services | Forthcoming on Monday |
| TOTAL |
The attached Exhibit B provides a comparative look at TIF and BDD activity in other Illinois communities, namely Pekin and Canton Illinois. Both municipalities created “connector” TIFs and a BDD district spanning their communities. Pekin’s five (5) TIF districts generate approximately $1.1 million annually in
TIF increment to address development and infrastructure needs. Pekin’s BDD generates $3.3 million annually. Canton has three (3) TIF districts that collectively generate $1.2 million, while its newly established BDD (2022) generates $400,000 annually. These districts have shown results in creating new funds for municipalities to address various needs, while creating a substantial return on investment for funds spent initially to establish the districts.
It is important to note here as well that the consultants will undertake a study to determine the eligibility of parcels and the suitability of creating both a TIF District and Business Development District. While we are proceeding with the notion that we want to create a TIF District and BDD, the hiring of the consultant does not mean that the City has already committed to create these districts at this time. Said analysis of parcels needs to be undertaken; public and business community input needs to be gained; discussions with our community partners such as school districts need to take place; and ultimately, the City Council has the final say on creation either of these districts. The Mayor has also requested that the city concurrently host an informational meeting on the creation of the BDD and TIF districts to gain feedback from the business community. This informational meeting will likely be held in the coming weeks. If at any point the City Council decides not to move forward with either the Business Development District, TIF District, or both, the Professional Services Agreement can be canceled and the consultant will only be paid for work completed.
TIMELINE
Timing, however, is of the essence as it relates to the Business Development District, if it were to be approved. Designating ordinances for the BDD need to be turned into the Illinois Department of Revenue by April 1, 2024 in order for the BDD sales tax rate to take effect by July 1, 2024. If submitted after April 1, 2024, the BDD sales tax rate would take effect next January 2025. Therefore, below is a tentative schedule for implementation of the BDD:
| 1 | Professional Services Agreement with EDG/J&K - Committee of the Whole Meeting | 1/16/2024 |
| 2 | Public Informational Meeting with Business Community | 2/1/2024 |
| 3 | Professional Services Agreement with EDG/J&K - City Council Meeting | 2/5/2024 |
| 4 | City approves ordinance proposing the approval of a BDD Redevelopment Plan and designation of a BDD; and sets a date for a Public Hearing | 2/19/2024 |
| 5 | First Publication of Notice of Public Hearing | 2/18/2024 |
| 6 | Second Publication of Notice of Public Hearing | 2/26/2024 |
| 7 | Public Hearing is held | 3/4/2024 |
| 8 | City approves ordinance to approve the BDD Redevelopment Plan and designate the BDD Area and impose applicable BDD Taxes | 3/18/2024 |
| 9 | City files with the Illinois Department of Revenue a copy of the ordinance to impose applicable BDD Retailers' Occupation Tax, BDD Service Occupation Tax and BDD Hotel Operators' Tax | Before 4/1/2024 |
| 10 | BDD sales tax takes effect | 7/1/2024 |
| 1 | Professional Services Agreement with EDG/J&K - Committee of the Whole Meeting | 1/16/2024 |
| 2 | Public Informational Meeting with Business Community | 2/1/2024 |
| 3 | Professional Services Agreement with EDG/J&K - City Council Meeting | 2/5/2024 |
| 4 | Establish Interested Partied Registry by Ordinance & Set a Date for Public Meeting | 2/19/2024 |
| 5 | Public Meeting Mailing | 3/18/2024 |
| 6 | Submit Draft Redevelopment Plan to the City | 3/29/2024 |
| 7 | Public Meeting | 4/1/2024 |
| 8 | Ordinance to Set a Date for a Public Hearing | 4/15/2024 |
| 9 | Certified Mailings to Taxing Districts | 4/19/2024 |
| 10 Certified Mailings to Taxpayers | 4/30/2024 | |
| 11 | 750' Residential & IPR Mailings | 5/3/2024 |
| 12 JRB Meeting | 5/8/2024 | |
| 13 First Publication of Notice of Public Hearing | 5/13/2024 | |
| 14 Second Publication of Notice of Public Hearing | 5/20/2024 | |
| 15 Public Hearing | 6/3/2024 | |
| 16 Approve Final Ordinances to Establish TIF District (earliest date) | 6/17/2024 | |
| 17 EDG/J&K requests certification of initial TIF base values from Rock Island County | 6/30/2024 |
| Line Item # | Line-Item Title | Department | Amount Budgeted | Available Funds | Amount Requested |
| 046-4000-24-901 | Economic Development | TIF-Kennedy Dr. | $178,823 | $178,823 | TBD |
| 042-4000-24-901 | Economic Development | TIF-Downtown | $13,580 | $ 13,580 | TBD |
| Fund Balance | Fund Balance | TIF-Downtown | n/a | $407,555 | TBD |
| 010-4333-29-860 | Miscellaneous | ARPA Funding | $61,141 | $ 61,141 | TBD |
| TOTALS $253,544 | $661,099 | TBD | |||
A motion was made by Alderperson Rico, seconded by Alderperson Guthrie to concur with the recommendation as presented. Upon roll call the following voted in favor: Dorothy, Deppe, Guthrie, Oakes, Segura, and Rico. Motion carried.
ADJOURMENT:
A motion was made by Alderperson Segura, seconded by Alderperson Guthrie to adjourn the Committee-of-the-Whole meeting. Upon roll call the following voted in favor: Dorothy, Deppe, Guthrie, Oakes, Segura, and Rico. Motion carried. 7:31 p.m.
https://www.eastmoline.com/AgendaCenter/ViewFile/Minutes/_01162024-984
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