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Peru launches the region’s first Business Development District · Illinois Valley - Shaw Local

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  Peru launches the region's first business development district. Written by
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  Tom Collins. This article is being read by an automated voice, brought
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  to you by Everlit. A business development district works a bit like
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  a TIFF district, only with more flexibility for the city. Peru officials
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  think it could spur new projects. Monday, the Peru City Council voted
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  7-0, Alderman Bob Tiemann was absent, to launch the city's first business
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  development district. Pending state approval, the district will be in place by
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  January 1st and the project will be funded with a 1 sales
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  tax increase effective only within the district. Peru officials had been kicking
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  around ideas for how to fund infrastructure improvements here to, attract business
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  owners interested in acquiring a vacant commercial property or developing a new
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  one. Them idea behind the Business Development District is if somebody wants
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  to, say, come in and do the sports complex, then we could
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  use that money to help them instead of reaching into the general
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  fund, Alderman Jason Edgcombe said. This is money that can be collected
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  outside The
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  city not just from people inside the city. For city officials, a
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  business development district, and sales tax increases seemed like a better alternative
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  than raising property taxes. The sales tax increase includes exemptions such as
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  automobile purchases and pharmaceuticals. The city is being very conscious about implementing
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  something that would be the least impactful as opposed to property tax
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  or home rule sales tax increases. City engineer Eric Carls said, but
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  would provide a vehicle to enhance the area and spur redevelopment or
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  new development. How much of such a tax rate would residents absorb?
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  Alderman Tom Payton cited a past study showing the city population swells
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  five to sixfold during business hours. We are much larger during the
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  day, he said. And Peru's visitors might shoulder the lion's share of
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  taxes. Peru attorney Herb Kleine was retained to assess whether The city
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  qualifies for a business development district under the rules set forth by
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  Springfield. We conclude the area does qualify, Klein said, noting that the
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  taxable value of the four hundred odd parcels within the BDD have
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  increased in value more slowly than in other parts of the city.
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  The Business development districts will work somewhat like a tax increment financing
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  district, insofar as it collects a portion of tax revenue and turns
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  it into incentives for business development, as with TIFF districts. There are
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  limits and restrictions on how the funds can be used, but There
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  are fewer limits. Business development districts are growing in popularity. There
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  are more than 300 across the state, the nearest in LaSalle County
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  is Striater, and Peru officials saw an opportunity to attract interest in
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  open retail space at Peru Mall, the vacant car dealerships and the
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  recently closed red lobster. There are several parcels that were once viable
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  but are now vacant, and we know of liabilities such as flooding
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  or pedestrian access, Carl said. We would be able to use BDD
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  funds for street improvements, stormwater flood control, sidewalks, or similar infrastructure improvements.
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  Public feedback was negative. During the public hearing, six people and one
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  online participant took to the podium to express skepticism or to urge
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  the council to extend the discussion and give people more time to
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  digest them, pros and cons, which includes a tax increase at a
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  time when affordability is an issue. The skeptics did not go entirely
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  unheard. Mayor Ken Kulowski said he would entertain a motion to table
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  the BDD, but no one so moved. Alderman Rick Osadnik said he
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  was sympathetic to residents who felt this had been sprung upon them,
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  but said there would be millions at stake if the city failed
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  to act. I think we're shortchanging the city if we put this
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  off, Osadnik said. Patent said the city in fact had discussed the
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  B D D at length, in search of the least impactful means
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  of generating revenue, and this is the way to do it. If
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  we postpone for six months, Alderman Mike Sapienza said we lose six
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  months of revenue. If we're going to do this, do it now.