Published: January 07, 2009 12:02 pm      

City takes first steps in creating special districts

Effingham City Council took the first steps Tuesday evening in establishing a tax increment financing district or business district along Rickelman Avenue.

“These are preliminary things we need to do if the council decides to establish either district. It doesn’t commit the council to establishing a district,” Economic Development Director Todd Hull said.

The council heard the results of a study by Economic Development Resources in November 2008 that concluded 80 acres around Rickelman is “blighted” and meets the qualifications for both a TIF district and business district. The proposed boundaries run along Rickelman Avenue from just west of U.S. 45 to just east of Willenborg Street.

The purpose of creating a TIF or business district is to give the city a tool to improve the roadway in the area, which often becomes a traffic tangle.

Two resolutions passed established special tax allocation funds for both a TIF district and a business district.

If any costs are incurred during the creation of the districts, then those costs would be paid for by other funds. These resolutions would allow the allocation of funds to reimburse the other funds once the districts are established and generating revenue, according to Hull.

A third resolution established an “Interested Parties Registries” and adopted the rules for the registry. Interested citizens or organizations who have their name placed on the registry will be notified about meetings and potential changes concerning the establishment of the new TIF district

The final resolution gives city officials permission to publish notices in the newspaper to see if any developers are interested in developing property within the proposed districts.

Hull said if the city eventually decides not to establish a business or TIF district around Rickelman Avenue, the resolutions would be “null and void.”

Economic Development Resources is currently working on the preliminary planning stages of developing the districts.

Angie Faller can be reached at 217-347-7151 ext. 131 or angie.faller@effinghamdailynews.com.