The Salem City Council has unanimously voted to sign a Pre-TIF agreement with an apartment complex developer and to move towards the development of a new tax increment financing district.
Scott Conant of Effingham is proposing the 72-unit apartment complex off Airport Road behind the current Salem Aire apartments. He could receive reimbursement for expenses up to $ 1 million on development from property taxes he pays on the property.
Economic Development Director Leah Dellicaprini says at the present time Salem has just enough houses for the current population.
“Employers in town, their #1 concern is the workforce. Some of them are poised to grow and they are ready to expand but they are worried that they won’t be able to get the employees they need to fill the jobs they currently have much less slated in an expansion. So as a city, the best answer we can provide to that particular issue is to build houses.”
Dellicaprini says the TIF district would not limited to just this one housing project and she’s hoping other developers will also come forward.
“We really feel the need to add housing stock to our town and this is in alignment with that. So we are saying if we develop a TIF, a certain portion of that will go back to the developer and a portion into the TIF development fund that we can use for infrastructure projects or incentives for other projects.”
The boundaries of the proposed new TIF district have not been set. Other taxing bodies would also have to agree to the capture of the new property tax revenue for the life of the district for it to become a reality.
Conant Development’s current plan is to have the 18 apartment buildings with four two-bedroom units apiece completed by 2029.
