From Illinois Business Journal news services
O’FALLON – The city is moving forward on a tax increment financing plan to aid its downtown area.
The City Council this month formally approved the Central City TIF, which includes Downtown O’Fallon and the Southview area. The city said Wednesday it plans to use the TIF to help property owners renovate and redevelop their buildings as well as make improvements to streets, sidewalks, and other infrastructure in the district.
“For many years, O’Fallon’s Downtown and Southview areas have experienced minimal growth. Many of the area’s buildings have now fallen into a state of disrepair and require expensive rehab to get rid of mold, asbestos and lead paint,” said Mayor Gary L. Graham in a release. ”Reviving O’Fallon’s City Center was a major priority of O’Fallon’s Strategic Plan. With this TIF in place, O’Fallon can finally attract the type of investment that will help to revitalize the City Center and generate excitement in our Downtown.”
In its release, the city offered a tip of the cap to local school districts and other taxing bodies for their cooperation. During the design of the Central City TIF, “absolute priority” was put on finding the right approach to enable the redevelopment of O’Fallon’s City Center, while not adversely affecting the ability of O’Fallon’s school districts to educate the community’s youth, the release said.
The city’s TIF consultants, PGAV, have determined that the redevelopment of Downtown and Southview Plaza would not be possible without a TIF in place. PGAV also calculated that O’Fallon School District 90 will continue to receive every dollar of tax revenue currently collected, but will be forgoing approximately $1,000 from future tax growth per year over the lifetime of the TIF. In return, the O’Fallon community will receive a redeveloped Downtown and Southview area with new stores, jobs and growth.
With the TIF now in place, the city will begin to work to attract redevelopment projects in the TIF district.
The city says it has partnered to help local schools for decades, including paying for crossing guards and paying for and providing materials and police resources to help schools. The city has also partnered with schools using intergovernmental agreements to share common assets and facilities for the benefit of all residents and children. This cooperation has helped save hundreds of thousands of tax dollars that would have been spent building duplicate assets and athletic fields, the city said.
For more information about the Central City TIF District, please contact the O’Fallon Community Development Department at 618.624.4500 Ext. 4.