Harrisburg going ahead with northeast side TIF district

HARRISBURG - Harrisburg city council voted Thursday to proceed with the process to create a new tax-increment financing district in an effort to revitalize the northeast portion of the city.

Council members heard a presentation from Keith Moran of Moran Economic Development, who has been working on the the project. He said the area of the district, which is centered around Veterans Drive, qualifies in a variety of ways to be eligible to be included in a TIF.

A TIF district is an area designed for economic growth, whereby municipalities may use public funds to make improvements to areas within the TIF. Those funds come from the increased property taxes the property will bring in due to the improvements.

Moran referred to past TIF districts within the city as having positive benefits.

"TIF was responsible for a lot of good in this community," Moran told council members. "The schools benefited greatly, and it was especially used for levee repairs, a lot of public infrastructure improvements. We still have a little further to go in this area."

One project that would benefit from the new proposed TIF district, which is being called the Veterans Drive TIF District, would be a proposed hotel that Harrisburg businessman Dennis Murphy plans to build near the intersection of Veterans Drive and the Illinois 13 Bypass.

Floodwater and stormwater improvement projects also could use TIF funds, which would make the area, currently prone to flooding, more attractive to businesses wishing to locate there.

Council voted to proceed with the plan, and place the plan and feasibility study on file. It also will be sent to affected taxing districts.

A public hearing on the matter is set for 5:30 p.m. Thursday, Dec. 7 prior to that evening's city council meeting.

During the citizen comment portion of the meeting, Harrisburg resident Johnathan Gericke asked whether creating the TIF district in that location was the best use of city funds. He also said the city should make zoning a priority.

"We've tried to pass zoning several times. It's very hard to pass," Mayor John McPeek said.

Gericke said he thought the city should look at building in a different area, eventually moving away from its flood-prone sections.

"If 75 percent of properties in this district already are in need of serious repairs and are subject to chronic flooding, what better time to relocate to higher ground and build something from scratch instead of rehabilitating something that will be flooded?" Gericke asked.

McPeek said he and other council members believe using a new TIF district will allow for growth in the city.

"This town needs to grow," McPeek said.