Richmond/Spring Grove Village Articles

Richmond makes concessions on TIF proposal

 by Greg Cryns

January 18, 2007

Richmond village called a special meeting to discuss ordinances. About 25 people showed up to watch the proceedings. Many came to gather information about the TIF proposal.

The board approved two major changes to the TIF plan.  First, the village declared it would not use the relaxed TIF laws in the TIF district. Second, additional funds would be distributed to the school districts and other taxing bodies to help make up for losses incurred.

Village Administrator Tim Savage said, “It is not our intent to purchase properties and turn them over to developers.”

The board approved the changes. However, trustee Charles Schultz voted against because he feels that the TIF wording does not protect people from future decisions of the village. “We are just playing a shell game,” said Schultz. 

Savage took exception to that statement. “We are not playing any shell game,” he said. “The village listened to the community and came up with these changes.” Savage explained that under new eminent domain laws the village board has “higher standards to meet” before it can take a property and use it for “private purposes.”

Sue Maurer, a trustee for school District 2, challenged a few of the numbers about the TIF as presented by Speer Financial, Inc, a firm that the village hired to determine the financial impact of a TIF on the area. “Some Speer assumptions are off,” said Maurer. “We should discuss the two models and come to an agreement together.”

Village President Lauri Olson agreed with Maurer. Olson said that another meeting could be held with both school boards after the public meeting on January 18. According to state law, the village may take action after 14 days have elapsed. The project must be put in front of the board for a decision within 90 days of the public meeting.

Trustee Dan Deters was pleased with the changes. “It is laudable that the administration would listen to the concerns of the people. The problem many people have is that a TIF extends far down the road. It is a complex system so we cannot predict what will happen in the future.”

Trustee Wulffen is also happy with the changes. “What the board did is commendable.”

“I want to hear more about this at the next meeting before I am convinced eith way,” said resident Pete Koenig.

Resident Charlie Eldredge has worked in community development for 40 years. He said there are other ways to finance improvements.

1. The IDFA agency offers low cost loans to communities.

2. The Department of Commerce and Economic Opportunity (DCEO) provides a wide array of programs and services designed to help Illinois businesses thrive in the global economy.

3. HHire a professional grant writer.

4. Hire a lobbyist as Johnsburg did when it obtained $1 million for sewer improvement.

5. Referendum.

6. A “Special Service Area” could be established to fund sidewalk and building façade improvements.

However, Eldredge is not opposed to a TIF. “The downtown area needs a lot of help,” said Eldredge. “A TIF may be the best of the choices. The community needs to ask whether they believe the downtown area needs stimulus.”

Eldredge pointed out that the sewer lines, streets and sidewalks are over 80 years old. The cost to replace the sewer line may best be handled by a TIF.

Eldredege opted out of the TIF for his personal residence. “I do have other properties on the west side of 12 that are inside the TIF,” said Eldredge.

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