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HomeMy WebLinkAboutG82-06 Ordinance No. G82-06 AN ORDINANCE PROVIDING FOR FEASIBILITY STUDY FOR PROPOSED GROVE AVENUE/LINCOLN AVENUE TAX INCREMENT FINANCING (TIF) DISTRICT WHEREAS, the City of Elgin ("City") is a duly organized and existing municipality of the State of Illinois, and pursuant to Section 6 of Article VII of the 1970 Constitution of the State of Illinois, the City is a home rule unit and as such may exercise any power incidental to its government and affairs; and WHEREAS, the City is authorized to take certain actions pertaining to redevelopment activities; and WHEREAS, the Mayor and City Council have determined that it is in the best interests of the City that certain property, generally described in Exhibit A attached hereto and incorporated herein by this reference (the "Area")be redeveloped; and WHEREAS, the Area contains a number of impediments to private investment and development and it is not reasonably anticipated to be developed without certain public assistance by the City; and WHEREAS, in order to redevelop the Area, it may be necessary to undertake certain public improvements and to pay certain site preparation and related costs; and WHEREAS, the Mayor and City Council are desirous of having the Area redeveloped, and believe that it is not economically feasible to do so given the impediments to redevelopment which characterize the Area; and WHEREAS, the following redevelopment goals and objectives are being contemplated for the Area: • Strengthen the economic well-being of the Area. • Maintain and enhance the economic diversity throughout the Area. • Improve and upgrade existing surface infrastructure, including streets, curbs, gutters, sidewalks, lighting, alleys and other public facilities. • Removal and redevelopment of sites with existing inappropriate land uses and encourage the redevelopment of properties at appropriate densities. • Assemble or encourage the assembly of land into parcels of appropriate shape and sufficient size for redevelopment. • Create an environment that stimulates private investment in residential development. • Provide needed improvements and facilities in proper relationship to the projected demand for such facilities and in accordance with present-day design standards for such facilities. • Create new job opportunities for City residents through new developments, and utilizing existing hiring programs and appropriate job training programs. WHEREAS, the Mayor and City Council have reviewed the conditions of the Area and have reason to believe that the cost of the necessary public improvements, site acquisition and preparation costs, and certain other costs to be incurred may qualify for tax increment financing (TIF) pursuant to the Tax Increment Allocation Redevelopment Act (65 ILCS 5/11-74.4-1, et seq.) (the "Act"), provided the Mayor and City Council, within their sole discretion, approve a formal agreement for tax increment financing in accordance with the Act; and WHEREAS, the Act provides a means for municipalities, to finance eligible redevelopment project costs with incremental property tax revenues, a tax increment being the difference between the amount of property tax revenue generated before TIF district designation and the amount of property tax revenue generated after TIF designation; and WHEREAS, the establishment of a TIF does not reduce property tax revenues available to the overlapping taxing bodies because the property taxes collected on properties included in the TIF at the time of its designation continue to be distributed to the school districts, county, community college and all other taxing districts in the same manner as if the TIF did not exist and the only property taxes generated by the incremental increase in the value of these properties after that time are available for use by the TIF; and WHEREAS, the Mayor and City Council have determined that it is in its best interests of the city to initiate a feasibility study regarding the creation of a TIF District for the Area pursuant to the Act; and WHEREAS, the Mayor and City Council reasonably expect to issue obligations in connection with the redevelopment of the Area in an amount not to exceed $20 million, a portion of which will be used to reimburse the City for the expenditures contemplated herein; and WHEREAS, the City has designated Raymond H. Moller, the City's Director of Economic Development and Business Services, as the person to contact for additional information about the creation of a TIF District for the Area and as the person who should receive all comments and suggestions regarding the redevelopment of the proposed TIF District for the Area. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, AS FOLLOWS: 1. The foregoing recitals shall be and are hereby incorporated in this paragraph one as if said recitals were fully set forth herein. 2. The Mayor and City Council have determined that the City shall initiate a feasibility study to determine the viability of creating a TIF District for the Area under the provisions of the Act. 3. The Mayor and City Council will engage in planning related to the redevelopment of the Area and will take such actions and incur such costs as they deem appropriate and necessary relative to the planning related to the redevelopment of the Area under the Act. 4. All undertakings of the Mayor and City Council set forth herein are specifically contingent upon the ability of the Mayor and City Council to determine, within their discretion, that the development or redevelopment of the Area includes costs that would qualify for tax increment financing under the Act. 5. There is no anticipated purpose that would result in the displacement of residents from ten(10)or more inhabited residential units at the Site. 6. The Mayor and City Council reasonably expect to issue obligations in connection with the Site in an amount not to exceed $20 million, a portion of which will be used to reimburse the City for the expenditures contemplated herein. 7. There is hereby established an interested parties registry pursuant to section 11-74.4-4.2 of the Act which shall be governed as follows: i. The city clerk shall maintain registration forms. ii. Parties interested in registering pursuant to this section shall complete the registration form maintained by the city clerk and file such form with the city clerk. iii. Each registration shall be effective for three years from the date of issue; notice of renewal shall be mailed by the city clerk to the name of the organization or individual and address listed on the completed registration form not more than ninety (90) days nor less than thirty (30) days prior to the expiration of the registration. All registrations shall be provided with an expiration date corresponding to the next end of quarter according to the City's fiscal year. 8. Raymond H. Moller, the City's Director of Economic Development and Business Services, is hereby designated as the person to contact for additional information about the creation of a TIF District for the Area and as the person who should receive all comments and suggestions regarding the redevelopment of the proposed TIF District for the Area. Additional information, comments and suggestions regarding the Area should be addressed to: Raymond H. Moller, Director of Economic Development and Business Services, City of Elgin 150 Dexter Court, Elgin, IL 60120-5555; (847) 931-6749. 9. If any section, paragraph clause or provision of this ordinance shall be held invalid, said invalidity shall not affect any other provision of this ordinance. 10. This ordinance shall be in full force and effect from and after its passage and approval in the manner provided by law. s/Ed Schock Ed Schock, Mayor Presented: November 29, 2006 Passed: November 29, 2006 Omnibus Vote: Yeas: 7 Nays: 0 Recorded: November 30, 2006 Published: Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk EXHIBIT A The area described as follows: Commencing at the intersection of the North line of Slade Avenue and the East line of North Grove Avenue, thence Southerly along the East line of North Grove Avenue to the intersection of the South line of Lincoln Avenue, thence Westerly along the South line of Lincoln Avenue to the intersection of the West line of the former Union Pacific Railway Line, thence Northeasterly along the West line of the former Union Pacific Railway Line to the intersection of the North line of Slade Avenue, thence Easterly along the North line of Slade Avenue to the point of beginning at the intersection of the North line of Slade Avenue and the East line of North Grove Avenue.