Heartland Bank to benefit from $83K in DeKalb city aid

A bank was awarded $83,000 in assistance this week from the city of DeKalb to help offset some costs for opening a new location downtown.

In a 7-0 vote, the DeKalb City Council authorized a tax increment financing (TIF) economic incentive to Heartland Bank, 205 S. Fourth St. Mayor Cohen Barnes was absent.

The funds are meant to spur economic activity in a defined area where development otherwise may not occur.

City Manager Bill Nicklas urged city leaders for their support.

“I feel comfortable in recommending to you that amount,” Nicklas said.

The petitioner, Heartland Bank, had applied for some assistance from the city with utility extensions and upgrades to the site.

Typically, there are restrictions on what type of new construction tasks are reimbursable via TIF by the city.

City documents show that eligible expenses may include demolition of buildings, paving and landscaping, replacement of older underground infrastructure, and soft costs such as architectural and engineering expenses for plan development and construction supervision.

The proposed 2,160 square-foot building, once built, is intended to serve as a replacement for the bank’s existing location at 913 S. Fourth St. Last month, the City Council OK’d a special use permit, allowing a bank with a drive-thru to be built on a vacant lot.

The city projects that the new building has an estimated actual construction value of $1.6 million, documents show. The bank property will be valued at an estimated $447,120.

City officials said that the new Heartland Bank branch will bring in an estimated $83,000 in city property taxes over a 20-year period, documents show.

First Ward Alderwoman Carolyn Zasada said she is pleased to support Heartland Bank’s request.

“I’m excited about this project,” Zasada said. “I think this is what TIF is intended for. ... This property has been needing to be changed for a long time.”

The city’s Joint Review Board (JRB), tasked with reviewing the city’s TIF spending, also had an opportunity to weigh in on the petitioner’s request.

Nicklas said the panel was supportive of the bank’s plans.

“They wanted to proceed with the project,” Nicklas said. “We had a good conversation about what consensus was. The JRB was in favor of it.”