FULTON, Ill. -- Development discussions for the 112 acres of land purchased by the city of Fulton last month has begun.
The city council met Monday to review a presentation from SB Friedman Senior Project Manager Geoff Dickenson for a new potential TIF district.
A TIF is an economic development tool used by municipalities to redirect incremental tax revenues to fund eligible redevelopment costs within a specified geographic area according to Dickenson’s presentation.
This potential new TIF district designation would create the city’s second TIF district.
In a proposal developed by SB Friedman, the company will work with city staff to conduct a full TIF designation process.
The process will include a TIF eligibility study, preparation of a redevelopment project area plan and report, preparation of required notices and mailings, and a complete public approval process.
During Dickenson’s presentation, Mayor Larry Russell commented that a TIF is basically a “vehicle to leverage debt.”
Dickenson made it very clear to the council that if the city decides to approve the new TIF district there will be no money going out until development plans start getting put to action.
“If the city doesn’t make a move with the TIF district within seven years of approval, the money will be given back and the TIF will be resolved,” Dickenson said.
The contract for the new TIF district will be in place for a maximum of 23 years but the city is not required to go the full term.
“We don’t have to go that long; none of us want to go that long,” Russell said.
Although the state of Illinois is very limiting in terms of TIF development, the city can benefit from TIF revenues for both private and public redevelopment.
According to the designation proposal, the TIF Eligibility Study and Redevelopment plan and the noticing and public approval process will take approximately 180 days and cost an estimated $28,350 to $38,210.