Sycamore City Council to consider creation of second TIF district

SYCAMORE - Another tax increment finance district could be coming to Sycamore, as the city council on Tuesday will consider a proposal to conduct a feasibility study for the proposed TIF on the north side of town.

According to Sycamore city documents, the proposed area for the TIF district, which city officials are calling the Tax Increment Redevelopment Project Area No. 2, includes properties along portions of North Cross Street, Lucas Street to North Avenue and one block over Main to Page Street.

The Sycamore City Council will consider whether to hire a contractor for $29,000 out of St. Louis to conduct a feasibility study on the proposed TIF district. If the feasibility study is approved and a TIF district is created, it would be the second of its kind to exist in Sycamore.

The feasibility study would be conducted by St. Louis-based PGAV Planners, the same contractor that the Sycamore city officials used when the first TIF district was created in 2000.

The study would include a redevelopment area map, estimated redevelopment project costs, a general land use plan, existing conditions map, a parcel key map with information on property owners in the proposed zone, and a report with trends for equalized assessed values, which are the property tax metrics used in TIF districts to create revenue.

According to the Illinois TIF Act, municipalities and taxing bodies can create a TIF district over a specified geographic area. At the time the TIF is created, the value of property in the area is established as the “base” amount, and taxes paid on that amount continue to go to taxing bodies as normal.

Over time, as development occurs and property values rise, the city collects the additional property tax revenue created from new development and increased property values, known as increment, which must then be invested back into the area for redevelopment. The money can go toward fixing blighted areas and paying for infrastructure, the costs of jobs related to the TIF district, surveys, environmental reviews needed for development and more.

City officials are recommending the contractor be approved for the study, whcih would be the fist step in the creation of a second TIF district.

“When used appropriately, TIF Districts are a significant tool that can be utilized to redevelop areas in need of revitalization and investment,” city officials state in documents leading up to Tuesday’s public meeting.

According to city officials, the City’s first TIF district has brought about the following in the past 21 years: removal of hazardous material and creating an engineered barrier at Harvester Square, removal of the raised platform at Harvester Square; a public and private partnership with Auto Meter for parking lot improvements; development at Blumen Gardens including a parking lot, work on the HVAC system and weatherizing and improving accessibility to the local garden and event center’s sales area; a watermain replacement on Park Avenue and renovation of the Train Depot.

Part of the City of Sycamore’s plans for its first TIF district, set to expire Dec. 31, 2024, include a recommendation that the city council vote to close it early, terminating it on Dec. 31, 2021 instead, documents show.

The Sycamore City Council will meet Tuesday, July 6 instead of Monday this week due to the Independence Day holiday. The meeting will begin at 7 p.m. in the City Center, 308 W. State Street.