As one tax increment financing district ends in Columbia, another one may be beginning. 

At last Tuesday’s Columbia City Council meeting, Columbia Director of Community Development Scott Dunakey requested the council consider hiring Eugene Norber of Economic Development Resources LLC to review properties for eligibility and designation as part of a new potential TIF and business district.

The proposed districts would begin at the southern end of the city on the east side of Route 3 and include a section of Frontage Road just past the Route 158 interchange, continuing along both sides of South Main Street to Madison Street with the goal of financing improvements in the area and attracting commercial development.

The first step in the process would require identifying private development and city improvement plans as well as evaluating sites and infrastructure conditions and performing a property history background data analysis. 

If the districts are approved, property values in the TIF district would be frozen at their current assessment and any tax revenue collected from improvements would be used for reinvestment in the TIF district area. 

Columbia City Administrator Doug Brimm explained that the “underlying taxing districts continue to receive the same share of the property taxes at the same level as when the TIF  district was implemented” during the life of the district. 

Another future goal of a TIF district is to increase the amount of property tax that may be collected by a municipality for general use after the district expires.

Brimm also clarified that the availability of “business district” imposes an “up to one percent sales tax” on businesses within the district. Similar to TIF revenue, the extra tax funds would be collected by the city and allocated to finance projects and improvements within business district boundaries.

In addition to enhancing property values, Dunakey explained that TIF district funds could finance infrastructure updates in what is the oldest part of Columbia along Main Street and could also provide funds for development of the section of the GM&O Heritage Trail that lies in the proposed TIF district zone.

“There hasn’t been a significant redesign to extend (city improvements) through the heart of Columbia,” Dunakey said, referring to the recent Main Street Improvement Project in the middle section of town, adding that the tax districts could be used to leverage funding to extend improvements on the south end of the street.

Dunakey also reported the city has been contacted by parties interested in developing properties on and near South Main Street. 

According to a staff report submitted to the council, “both projects have great potential to benefit the community, but there are challenges, particularly infrastructure. The developers have indicated that a (TIF or business district) would likely be needed to make the projects financially viable, primarily because of the infrastructure concerns.”

One plan would “redevelop the mobile home park  at Centerville Road,” with the initial concept including “an 8,000-square-foot building… with ground-floor retail and residential lots.” 

The report also stated that Land of Lincoln Investment Corp., which owns property across from Dairy Queen in the 900 and 1000 blocks of South Main Street where three older homes were recently demolished, was in preliminary discussion with the city about possible commercial and residential development in the area.

Thomas Rollins, a partner with Land of Lincoln, confirmed there are no specific plans for that property yet, but the group will be working with Joe Koppeis of Admiral Parkway Inc. to find investors interested in building on the lots.

Rollins added that work to finish razing that area should be completed by the end of this week, weather permitting.

The proposed TIF area includes parts of Route 3, Frontage Road, South Main and Ferkel streets, Centerville Road and Metter Avenue. 

“This seems to be a viable opportunity to at least… study to get these benefits out of this district,” Dunakey remarked. 

The district would abut an existing Main Street Abbey TIF that includes properties formerly occupied by Immaculate Conception Catholic Church and Immaculate Conception School. 

The Main Street Abbey TIF, passed in 2016, allowed development of The Abbey event center in the former church building as well as Cafe on the Abbey in the church’s convent building. 

The owner also has plans to convert the former ICS school building into several different businesses.

Dunakey explained that the city could not expand the bounds of the Main Street Abbey TIF because recent legislation that would have allowed expansion of current districts did not pass. A new TIF district would need to be created if the city wishes to proceed with the proposal. 

Columbia Ward II Alderman Kevin Martens asked about residential properties included in the current TIF district. Dunakey confirmed there were and that there would be a few existing residential properties in the proposed districts, but they would not be the properties that would seek improvement or redevelopment. 

Brimm also took the opportunity to “strongly encourage the council not to consider any kind of residential project utilizing TIF (funds).”

Dunakey pointed out that the only way residential parcels could benefit directly from this TIF is through infrastructure improvements.

Currently, the Main Street Abbey TIF is the only such district in Columbia. The Admiral Parkway TIF District expired last year after a 25-year term. 

That TIF was deemed a success and has been cited by the Illinois Municipal League as an example of how TIF districts should be administered.

Dunakey believes the latest TIF proposal would also be a boon to the city in an area in need of redevelopment. He added that Norber would be the best person for the evaluation of a potential TIF district, citing previous work with the city and reputation for work quality.

The Columbia City Council will vote on whether or not to pursue the TIF study at a future meeting.