Yorkville officials will vote on the creation of a new business development district area in downtown Yorkville that benefits only one developer when the council convenes for its first meeting of the new year.
Imperial Investments, which redeveloped Cobblestone Bakery and Bistro and The Follies Theatre, would receive the incentive through the city’s downtown business district.
In November the Yorkville City Council held a public hearing on the establishment of the plan that put a 1 percent sales tax in place to raise money to be spent on public improvements in the area of the business district. Initially the proposal was for a .5 percent tax, but it was amended by downtown developers Imperial Investment following the company’s revelation of unplanned expenses, including sprinkler system installation and higher than expected fees to connect to sanitary services. The proposed district will only include properties owned by Imperial Investments and can only be used to improve those specific properties, according to city documents.
Council will also vote on a redevelopment agreement with TCB 123, LLC., which does business as Rowdy’s, 210 S. Bridge St. City staff is proposing providing the company with up to $170,000 over the life of the TIF.
In a TIF district, property taxes from increasing property values are funneled into a special fund to encourage development. The downtown TIF district will expire after 23 years in December 2013. That property tax revenue is separate from city funds and can only be used for specific economic development expenses.