Richmond TIF proposal raises doubt by some residents  

At a regular meeting last week, the Richmond Village Board recommended that a tax increment financing (TIF) plan deserved a closer look. The board authorized spending $12,000 on a redevelopment plan. The proposal is not yet authorized by the village. Preparing the plan could take up to eight weeks.

TIF districts are created to help eliminate blight, promote industry and rehabilitate declining property values. The district uses property and/or sales tax revenues in a defined area to encourage private development in that area (district). The property tax revenue attributable to an increase in the value of the property in the district (tax increment) goes directly to the city. The money is put into a special fund that can only be used to pay for redevelopment costs. The property tax revenue that is attributable to the value of the property in this district prior to the creation of the TIF goes to the normal taxing bodies such as school districts just as if the TIF had not been created.

When a TIF is established some activities may include acquisition and demolition of blighted properties in a downtown, construction of parking facilities and street improvements to implement a downtown redevelopment program; extension of sewer, storm sewer, and water mains, construction of a new well or elevated water storage facility to serve new industries and waterway and public park improvements.  

Benefits from a TIF program may come in the form of increased employment, an improved business climate and elimination of unsafe or unsightly areas.

When a TIF is created taxable properties are noted for their present values for tax purposes. This is called the Tax Incremental Base. All taxing bodies will receive their fair share of the annual taxes generated by this base throughout the life of the TIF.  The village then installs public improvements in the TIF district.

With development the property values usually increase. Taxes paid on the increased value are called “Tax Increments.” They are used to pay for public improvement projects undertaken by the village. The school districts and other taxing jurisdictions do not benefit from taxes collected on the increased values in the district until project costs have been recovered.  After that, the all taxing bodies will benefit by the increased taxes.

The Richmond TIF boundaries are concentrated to part of the downtown area and most of part of the golf course area where the new commercial and housing development will take place.

Not everyone is happy with the idea and the possible TIF will face some close public scrutiny in the weeks ahead. Some people are concerned that the village’s eminent domain power to remove buildings deemed unacceptable to the village authorities could be used

Resident Lars Anderson said, “I am not against a TIF but I want to make sure the schools have enough funding. If the TIF interferes with the schools then we will have major problems in the future. I also would like to make sure that future administrations would honor the conclusions we reach now about a TIF that will be in place for at least 23 years if it is passed.”

Trustee Chuck Schultz said, “My concern is that with all the houses on the books the additional houses we’ve approved, the Brusek era annexation giveaway agreements that did not provide money for the schools combined with a revenue ceiling will cause a hardship on the rest of the community. This will force higher taxes to make up for the difference. We are looking a minimum of one new school so far.”

Resident Susan Sullivan, the owner of Richmond Printing, said, “I am not opposed to a TIF that is managed correctly. I am concerned that my property taxes inside the TIF will be raised and that any building over 35 years old can be considered to be ‘blighted’. In addition, the village board will appoint a TIF board if this is passed. It is not an elected board. My biggest concerns are that the little individual businesses will be forced out and that there are no public checks and balances in place.”

Village President Laurie Olson said that the proposed new homes on the golf course are not included in the TIF district map. “The TIF effort came, first, from the realization that our core business district is struggling and, second, from the potential for the re-development of the Hunter Country Club. Our downtown seems to be surviving but not prospering. After looking for solutions, it was apparent that TIF districts are one of the few, if not the only, tools available to Illinois municipalities to improve their core business areas.”

Regarding public input Olson said, “I am committed to including all community stakeholders in the TIF dialogue. By law, TIF establishment is a very ‘public input’ oriented process, and you have my word that I will go above and beyond to keep you informed and ensure that this is the right thing for Richmond. We will soon have information available on the village website. Let us not look back in 10 years and say ‘If we had only done something for the downton when we had the chance.’ “

The village website is located at www.richmond-il.com.

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