The Salem City Council Monday night approved entering into an agreement with Jacob and Klein of Bloomington, Illinois to establish a new tax increment financing district.
Salem Economic Development Director Lea Delicarpini says TIF 4 will offer residential and commercial project incentives. While boundaries are not yet set, she envisions the district including undeveloped land north of US 50 on both sides of I-57 and along South Hotze Road west of the interstate. She also has another goal.
“Now that we have TIF 4 what we are working towards is connecting our two TIFs…..so we would like to see those connected so we have a nice corridor for development.”
The district will include land on Airport Road north of Mills Cart Road where a 72-unit apartment complex is proposed. Delicarpini says she also has a few other projects in the works.
As part of their $37,500 contract, Jacob and Klein will prepare the final map and language as well as complete all required meetings with the public and other taxing bodies. Delicarpini notes while taxing bodies can raise concerns about the district, they cannot block its formation like they can an extension of a district.
The council also approved agreements with other taxing bodies in TIF-2 to distribute a total of $125,369 for use in capital improvements. The distribution will only occur if Governor Pritzker signs the 12-year extension of the TIF district now on his desk into law. It passed in the spring legislative session. Delicarpini says an additional $224,913 will flow into the district from property taxes collected this year. That will leave $400,000 available for projects. Meanwhile, $125,369 will flow from this year’s property tax collections into the downtown TIF district for improvements.
