Council approves TIF agreements

January 06, 2009 10:36 am

— By TESA CULLI
tesa.culli@register-news.com
MT. VERNON — The City Council approved the city’s first tax increment finance agreements Monday night.
“This is the first TIF completed and gone the entire distance,” council member David Wood said. “I hope this is one of many.”
The first of the two agreements approved was between the city and Triple L Holdings, which renovated the new State Beauty Supply building on South Ninth Street. The complete renovation project had a $341,000 price tag, and under terms of the TIF agreement, a total of $93,000 will be reimbursed to the company from TIF funds. The payments will be made with $38,500 up front made by a loan obtained by the city, with payments of $54,000 annually for the next 20 years of not more than 80 percent of the increment garnered from the increase in equalized assessed valuation on the property.
Councilman Mike Walker questioned if the city would go out for bids to get the best loan rate on the $38,500, and City Manager Ron Neibert answered that the city would be taking bids for the loan.
“We ended the year with a good feeling and a first reading on these TIF agreements,” Mayor Mary Jane Chesley said. “This is a good beginning for the new year, of the TIF district downtown and a good incentive for businesses.”
The second TIF agreement approved by the council was to Ron Campo of Campland, LLC for property at 224 S. 10th St., with a restaurant/bar planned for the building. The total project cost is estimated at $324,608, and under terms of the TIF agreement, $150,000 of the project costs will be reimbursed with TIF funds. Campland will receive 90 percent of the new property taxes created by the increased EAV from the development for five years and 80 percent for the next 15 years up to the total reimbursable costs.
Councilwoman Mary Burgan abstained from all votes relating to the TIF, stating that she is part owner of property within the TIF area.
The council also approved going out for bids for three police vehicles. According to Neibert, the cost of the vehicles will be able to come from the police budget, as fuel costs were lower than projected and several officers who have been deployed to military service have not been replaced.
Mt. Vernon Police Chief Chris Mendenall said the two of the three vehicles have more than 140,000 miles while the third has more than 120,000 miles.
“Those are hard miles in the city,” Mendenall said. “The three cars are in really bad shape.”
Once replaced, the city could declare the cars as surplus items and take sealed bids.
“We’ll be lucky to get [$400] or $500 for them,” Mendenall said. “I know I wouldn’t want to be driving them.”
In other business the council:
Held a first reading on annexing property owned by Randolph Steele at 817 Dewey St., into the city limits;
Appointed Larry Kent to the Mt. Vernon Housing Authority Board to replace Ken Terry, who moved from the city limits. Kent will serve the remainder of Terry’s term, which ends in 2011;
Appointed Nick LeMay to the Mt. Vernon Historic Preservation Commission to replace Linda Short, who resigned from the board. LeMay will serve the remainder of Short’s term, which ends in 2011;
Heard that there are four openings left for the MVPD Citizens Police Academy, which begins on Jan. 13; and
Heard a report on Christmas in the Park from coordinator Travis Perry, who said in this second year of the display, there were 3,901 people who went through the light show, up from 3,303 in 2007. In addition, Perry said new churches were involved this year. Donations received from the display, which is sponsored by the Jefferson County Ministerial Association, will be split between next year’s Christmas in the Park and the 2009 Christmas For The Needy campaign.