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Author: Melissa Leavy, Uptown Coordinator

Uptown is coming around! While some of the projects are not complete, many are underway and many more are planned. New businesses like Café Ventana, the Urban Art Co-Op and Generations T-Shirts will be opening soon and are renovating buildings Uptown right now. Other businesses like the Johnny’s Sidebar expansion and Prodigy Dance Studio are here.

New projects are planned for the next six months, including the renovation of 105 East Main, expansion of Fifth Quarter and renovation of the Home Furniture building.

The bulk of projects are in the 100 East Main block from the Glik’s Building (101 East Main) to Home Furniture.

The Fifth Quarter underwent drastic renovations and additions to the building shown below: Owners Roger and Diana Schuerbaum, were very successful in their first attempts, and have now purchased the building to their west and plan an expansion and renovation at 118 East Main.

The Home Furniture store will also be sporting a new façade this year! 

These are just two of several businesses that are coming Uptown.  While many areas have been negatively impacted by the down economy, good things continue to happen Uptown.

The  Planning Commission agenda included two separate requests for rezoning and Site Plans that present procedural issues, namely that a rezoning ordinance cannot be placed before the City Council absent an approved Site Plan.  The issue was both Planned Development Districts included additional development requirements that were not reflected in the submitted Site Plan and neither Site Plan met the technical requirements of the Zoning Code.  Therefore, the Commission was asked to recommend approval of the Planned Development District ordinances and then conditionally approve the Site Plans.  This places the burden on the applicant to submit a completed Site Plan to the City to review and approve (meaning it reflects all the requirements of the ordinance and the Site Plan section of the Zoning Code) before it can be placed on the City Council agenda.  The two items that were under consideration were: The Courtyards at Keebler and Horseshoe Lake Animal Hospital.

The Courtyards at Keebler is a proposed condominium development on Johann Drive.  The development, as proposed, includes 22 units.  The following issues must be considered before the Planning Commission will improve the rezoning request:

• Neighborhood compatibility
• Density and Intensity
• Architecture
• Landscaping and public open space design
• Screening
• Parking
• Access
• Sidewalks

The Horseshoe Lake Animal Hospital proposal included the redevelopment of a site that already is being used for animal care.  The development was approved, permitting the development of a new 5,200 sq. ft. animal care building and the use of the current building for animal boarding.

The next Planning Commission agenda is slated to consider the following items:

CVS: A request for rezoning for the CVS store that will be located at Beltline and Pine Lake Road.

The Orchards: A rezoning request for the redevelopment of the Orchards shopping center located on Vandalia Road.

Site Plan, Zoning Code Review:  Review of the current Site Plan section of the Zoning Code.  The current section is at best unclear, and at worst, inadequate to provide direction to staff and applicants regarding the expectations of what constitutes a Site Plan.  The Assistant Community Development Director will overview the current requirements and process and present preliminary recommendations for changes to this section.

Paul Mann, Community Development Director and the Collinsville Economic Development Commission are in the process of creating an Economic Development Plan, which will include a Business Retention Plan to assist the City in ensuring the continued success of Collinsville.  Randomly selected owners/operators or managers of Collinsville businesses are being solicited for their opinions which will be essential to the creation of this plan and its implementation. 

The Commission has scheduled a public meeting at which a SWOT Analysis will be conducted.  A select group of local businessmen and women will be led through an analysis of the City’s Strengths, Weaknesses, Opportunities and Threats (SWOT) as they directly relate to the business climate within the City.  Immediately following the analysis, a discussion period is planned in order to get business owners’ input applicable to the creation of the retention plan.

Author:  Paul Mann, Director of Community Development

Due to the overwhelmingly concerning misconceptions and misinformation regarding TIF, Business Districts, Sales Rebates and other, limited, economic development tools and incentives available to Illinois communities, I will provide a quarterly report of these important development/redevelopment tools.
In this first report, I provide information via accurate information compiled by the Illinois Tax Increment Association (ITIA).

About TIF
Tax Increment Financing (TIF) helps local governments attract private development and new businesses.
Municipalities in Illinois and across the nation are faced with numerous challenges, not the least of which is encouraging economic growth in blighted, decaying, and underperforming areas in need of development or redevelopment.

Most often improving these areas requires a public investment to reduce the extra cost and risk that private development faces in such areas. The public wishes to see this development occur, but without increased taxes or the reduction of other necessary services and projects that would be required to pay for the public investments that development and redevelopment usually require.
One tool successfully in use in Illinois and 48 other states to meet this economic development challenge is Tax Increment Financing: or TIF. With this development tool, financially strapped local governments can make the improvements they need, like new roads or sewers, and provide incentives to attract new businesses or help existing businesses stay and expand. And TIF does this without tapping into general municipal revenues or raising taxes.

Since the Federal and State governments have greatly reduced their support for local economic development, Tax Increment Financing helps local governments attract private development and new businesses using local resources that do not depend upon an increase in taxes or the reduction of other services. New development and businesses mean more jobs, more customers, and, in turn, more private investment for areas most in need. TIF projects also help retain existing businesses that might consider relocating away from declining areas. These jobs and investment — public and private — mean more revenue to help a community meet its other needs. As a result, the community as a whole, not just the area targeted for TIF revenues, improves.

The TIF Concept
Tax Increment Financing is simple in concept. TIF calls for local taxing bodies to make a joint investment in the development or redevelopment of an area, with the intent that any short term gains be reinvested and leveraged.

Tax Increment Financing is simple in concept. TIF calls for local taxing bodies to make a joint investment in the development or redevelopment of an area , with the intent that any short term gains be reinvested and leveraged so that all the taxing bodies will receive larger financial gains in the future. The funds for this investment do not come from current revenues, but from future tax revenues, not otherwise expected to occur. These new revenues are generated by increased public and private investment in identified, underperforming areas.

When a TIF redevelopment project area (often called a TIF district) is created, the value of the property in the area is established as the “base” amount. The property taxes paid on this base amount continue to go to the various taxing bodies as they always had, with the amount of this revenue declining only if the base declines (something that the TIF is expected to keep from happening) or the tax rate goes down. It is the growth of the value of the property over the base that generates the tax increment. This increment is collected into a special fund (the Special Tax Increment Allocation Fund) for use by the municipality to make additional investments in the TIF project area. This reinvestment generates additional growth in property value, which results in even more revenue growth for reinvestment.

In this way the TIF redevelopment project creates a vital cycle, increasing development and redevelopment in the area, such that when the TIF project ends — and Illinois law allows a TIF project to exist for a period of up to 23 years — all of the taxing bodies benefit from the new growth.

How a TIF Works
A tax increment is the difference between the amount of property tax revenue generated before TIF district designation and the amount of property tax revenue generated after designation. Establishment of a TIF does not reduce property tax revenues available to overlapping taxing bodies as the property taxes collected on properties included in the TIF at the time of designation continue to be distributed to them in the same manner as they would if the TIF did not exist. Only the new property taxes generated by the incremental increase in the value of these properties after the TIF is established are available for investment in the TIF.

For example, assume that a municipality wants to develop an area that includes two parcels that contain substandard commercial buildings. Let’s also assume that both of these parcels are paying $30,000 per year in property taxes. However, the municipality finds that by making an investment of $500,000 to rehabilitate the buildings on the two parcels and provide necessary infrastructure, private developers will commit an additional $2,000,000, making the commercial buildings available for new use. This additional investment causes the property to increase in assessed value, for example — and conservatively — leading to the tax paid on each parcel going from $30,000 per year in property taxes to $60,000 per year. The public and private investment would increase the total property taxes paid from $60,000 each year ($30,000 per parcel), to $120,000 each year ($60,000 per parcel). The project would result in $60,000 in new tax increment, which the municipality could use to off-set its original investment in less than nine years. After this initial investment is paid-off, the newly generated increment can be used for additional investments in the area.

Ultimately, after the conclusion of the TIF project, all of this new revenue growth is available to the various taxing bodies. Successful TIF investment therefore serves all of the investors, both public and private. Private investors are helped by a reduction in development cost and risk, and public investors by the generation of additional revenue available at the conclusion of the TIF project.

Typical TIF Projects
TIF funds may be used for costs associated with the development or redevelopment of property within the TIF, allowing blighted, declining and underperforming areas to again become viable, and allowing these areas to compete with vacant land at the edge of urban areas.
Typical projects include:
• The redevelopment of substandard, obsolete, or vacant buildings.
• Rehabilitating historic properties
• The development of residential housing in areas of need.
• Cleaning up polluted areas.
• Improving the viability of downtown business districts.
• Providing infrastructure needed to develop a site for new industrial or commercial use.
• Financing general public infrastructure improvements, including streets, sewer, water, and the like, in declining areas.

Types of Eligible Costs
The eligible uses for TIF funds are provided in Illinois’ Tax Increment Allocation Redevelopment Act (65 ILCS 5/11-74.4-1 through 11-74.4-11).

The Illinois TIF Act generally authorizes that TIF funds may be used for:
• Job training.
• Construction of public works or improvements.
• Rehabilitation or renovation of existing public or private buildings.
• Property acquisition.
• The administration of a TIF redevelopment project.
• Financing costs, including interest assistance.
• Relocation.
• Professional services, such as architectural, engineering, legal, and financial planning.
• Marketing sites within the TIF.
• Studies, surveys and plans.
• Demolition and site preparation.
Some restrictions may apply, so review the full Act for the list of TIF-eligible costs.

Creating a TIF
Illinois law specifies a number of requirements that must be satisfied for an area to qualify for Tax Increment Financing, beginning with identifying the project area and the physical and economic deficiencies that need to be cured. These deficiencies are often called the “blighting requirements”.

In addition to meeting the blighting requirements called for under the TIF Act, the municipality must also demonstrate that these conditions will not be addressed without some local action. What is often called the “but for test”, calls for the municipality to show that ‘but for’ the public investment provided through the TIF, effective redevelopment or development will not occur.
Along with meeting these requirements, the municipality must also prepare a plan laying out the actions that the municipality intends to take to improve the area, and a budget for the TIF district that includes the total TIF-eligible costs. Municipal officials and a Joint Review Board, made up of representatives from local taxing bodies, must review the plan for the redevelopment of the TIF area, allowing the various taxing bodies to provide their input and opinion on the matter to the municipal authorities. Following this, a public hearing must be held so that residents and other interested parties can express their thoughts on the subject.

Once these steps are completed, the proposal to establish the TIF district and engage in Tax Increment Financing must pass through the same process as any other ordinance proposed by the municipality, receiving approval by the municipal legislative body. If approved by the municipal governing body, the mayor or village president may sign the ordinance into law. As the establishment of the TIF is a municipal function, no State or Federal approval is required.

TIF is a process, not a panacea that requires careful monitoring. When used properly, TIF is a fulcrum for positive redevelopment that creates a win-win for all parties; not, as some think, just a subsidy for developers.

Planning a TIF
As noted above, the establishment of a TIF requires the preparation and approval of a Project Area Redevelopment Plan. This plan includes an assessment of the area in need of economic assistance, and demonstrates why the area needs redevelopment and how the municipality plans to revitalize it.

Illinois law requires review by the major overlapping taxing bodies and a public hearing on the plan prior to TIF designation. The plan must be made available for public review and inspection at least 45 days prior to the public hearing.

The Redevelopment Plan includes:
• A discussion of why the area needs redevelopment.
• A description of the boundaries of the area recommended for redevelopment.
• Documentation as to how the area satisfies the ‘but for’ requirement.
• A timetable for redevelopment of the area.
• A statement of conformance with the municipality’s comprehensive plan.
• A description of the process to amend the plan.
• An evaluation of the fiscal and programmatic impact on the overlapping taxing bodies.
• A budget for the life of the TIF, including the total TIF eligible costs.
• An explanation of how land in the TIF district will be used.
• The redevelopment goals and objectives for the area

This planning is important since the municipality, by spending its own funds to establish the TIF and, potentially, securing debt with its own credit, incurs more substantial risk than any other taxing district in making the project a success.

NEXT REPORT – BUSINESS DISTRICTS

Team Collinsville - Cops for Kids Fundraiser Event

 

Author:  Tracy Carlson, Planning Assistant

The City and CARD are moving forward with plans to construct a skateboard park at Glidden Park.  After several years of planning, the location has been identified, a startup budget has been approved, proposals have been received and reviewed, and fundraising is underway to raise the additional funds necessary to begin construction. 

A meeting with the skate park committee will be held shortly to decide the final design of the park and to appoint a fundraising chairperson.  The committee consists of skateboarders, parents, community leaders and local business people.  Anyone interested in joining the committee or helping out is welcome to join.  If you’d just like to know what’s going on, you can join the mailing list by submitting your email or mailing address to tcarlson@ci.collinsville.il.us.  Email is preferred as it is a quicker distribution method. 

Businesses or organizations interested in donating funds, labor, or materials, should contact tcarlson@ci.collinsville.il.us. 

Updates will be posted on the Collinsville Connection and CARD Facebook sites, as well as the CARD website www.collinsvillerec.com.

Please click on the link below for more information and a full project outline of the Skate Park details.

http://www.collinsvilleil.org/docs/communitydevel/SkatePark.pdf

With a new emphasis on pedestrian-friendly culture and less reliance on the automobile, the City has been looking at a variety of options for a bike/pedestrian path “connecting” the community.  City Staff has proposed a bike pathway which would run southward from the Madison County Transit (MCT) Schoolhouse Trail trailhead at Keebler Road down both opposite sides of that roadway to the alleyway located between Clay and Main Streets in the Uptown area.

From the Uptown area the trail would run southwesterly down both opposite sides of St. Louis Road to the former Beck’s Lodge site located on St. Louis Road where a parking lot, bus shelter, information kiosk and potential passive pocket park scenario will be developed to complete the transportation route and/or serve as a trail-head/trail-end.

Thus, the City has written for CMAQ (Congestion Mitigation and Air Quality) grant for completion of this project.  The grant would cover 80% of costs (similar to our streetscape federal grants).  The equity built into the land at the former Beck’s Lodge site may cover the entire grant match; however if it does not, the final portion of the grant match is an eligible cost from the Uptown TIF fund (TIF Area #1).  This TIF expenditure, however, is anticipated in the 2010 or 2011 Budget. 

This is an exciting project and will “connect” the community to the Uptown Area renaissance.

St. Louis Road Bike Trail

Keebler Road Bike Trail

  

Bike Parking Facility

The stars came out on Thursday, March 5, when the City’s Economic Development Commission hosted “An Evening with the EDC”, an event designed to bring together those in the development community from around the area in order to promote Collinsville as a premier location for new development initiatives.  The invitation only event was attended by 250 local businessmen and women, architects, engineers, developers, realtors, bankers and others in related fields as well as City, County, and local officials. 

The Gateway Center buzzed with excitement while the Collinsville High School Jazz Band wowed the crowd with a fabulous performance; easily one of the highlights of the evening.  Business cards changed hands by the hundreds as the guests renewed old acquaintances and created new ones.  One attendee, Brad Greer, local businessman and City Planning Commissioner had this to say:

“As a businessman, nothing could be more gratifying than the turnout of developers, contractors and finance related businessmen, all talking about our home town. The general consensus seemed to be that we are a desirable community with which to partner.”

While the economy is definitely having an impact on development across the country, there was little evidence of it as the Mayor, City Councilmen, City Manager, and department heads answered a never-ending stream of questions about Kohl’s Department Store, the potential soccer stadium development, Orchard Shopping Center, the Uptown Master Plan, and various other upcoming projects in Collinsville.  A slideshow presentation depicting Collinsville’s past, present, and future ran on two huge screens above an impressive display of Collinsville literature and information, and the City’s Community Development Director Paul Mann lost his voice after he and Downtown Coordinator Melissa Leavy spent the evening talking about all the great things going on in our community. 

The evening was considered a huge success by all, and a big “Thanks” goes out to all of the sponsors who made it all possible:  Johnson Properties, LW Contracting, Anderson Hospital, Oates Associates, Holland Construction, TheBank of Edwardsville, Re/Max Alliance, Herr Funeral Home, Louer Facility Planning, Southwestern Electric, Gateway Center, and AVSC Audio Visual Services.

Northeast Business District Plan – The City Council recently approved the Northeast Business District Plan in order to provide a mechanism to help fund the extraordinary costs associated with several problematic commercial properties located along the Beltline and Vandalia Road corridors and to help spur economic development/redevelopment in Collinsville. Thus far, three potential “developer” projects have been identified:
• Orchards Shopping
• Pine Lake Site
• Future Commercial Site

The first of the proposed redevelopment agreements located along the Northeast Business District is the Orchards Shopping Center Redevelopment Project.  The Orchards Shopping Center will receive a complete renovation.  Improvements include environmental remediation of the site, storm water drainage and detention reconstruction, landscaping, repaving and striping of parking lot, building reconstruction both interior and exterior façade, and curbing and lighting. 

The second proposed redevelopment agreement, Pine Lake Site, calls for the planned redevelopment of the northeast quadrant of the Vandalia/Pine Lake Road intersection.  At this location a full-service drug store, fast food restaurant and small mixed use building with retail and restaurant is proposed.  The redevelopment agreement with the developer of the site is still being negotiated with the City and will be presented to the City Council for review and approval in March.

The third potential redevelopment initiative is the relocation of an existing commercial development site located on Vandalia.  Due to the planned improvements IDOT is proposing along that portion of State Highway 159 (Vandalia), a commercial development would be located in the vicinity of the Vandalia/Pine Lake intersection.  However, several nearby sites have also been identified. This project is not contemplated for development for at least one year.

Besides the above referenced redevelopment initiatives, funds generated by the District can be used for public infrastructure improvements and private reinvestment into existing businesses and properties. The City is considering implementing a  40/60 grant program available to businesses located within the district.  Also being considered is an entry-corridor signage program identifying the NE Business District corridor and a voluntary sign amortization program to reduce the proliferation of free-standing pole signs located along the corridor.  A final consideration is an aesthetic streetscape program along Beltline and Vandalia Road similar to that of Uptown Collinsville.

These projects and public improvements coupled with Kohl’s Department Store (old Wal-Mart site) and the redevelopment of Jack Schmitt Ford dealership are perceived to be major contributors towards the economic revitalization and stabilization of the City of Collinsville. These economic initiatives are one step further towards implementing the City Council’s Strategic Planning Goal # 3 – Strong, Balanced Economy  and Goal # 6 – Preferred Place to Live.

Orchards Shopping Center Redevelopment Project

Orchards Shopping Center Redevelopment Project

Author:  Paul Mann, Director of Community Development

Over the last couple of months, the Community Development Department (CDD) Staff has been working on the creation of a document entitled the “Uptown District Plan” that encompasses past, present and future planning efforts for the Uptown area.  Within this document, you will find:

– Completed planning work on the District, including City Council initiatives, such as the vision for the District, and a summary of previous work completed over the last two years including the Uptown — Master Plan, Uptown Market Analysis and Architectural Guidelines;
– Current market conditions and market potential for the District;
– Existing conditions of the Districts, including topography, zoning, transportation, infrastructure, TIF uses, etc.;
– Goals and Strategies for the next 10 years, including: infrastructure, sustainability, signage, development, transportation, open/public spaces, historic preservation, and events; and
– Preferred future land use with a discussion of the variability of land use types within the District and how each variable should be treated both through zoning and architectural preferences.

Community Development Staff members are currently in the process of seeking approval of the document as an amendment to the Comprehensive Plan.  After adoption of this Plan, the City will be proactively pursuing developers for portions of or the entire project.  While we anticipate clusters of small developments, we will engage different developers about any possibility that encourages timely completion of the Master Plan. 

To read the draft of the “Uptown District Plan”, go to the “City Departments” tab, click on the “Community Development Department” and then “Uptown”.

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