2021-49 Ordinance Dissolving the Special Tax Allocation Fund and Terminating the Southeast Plaza Redevelopment Project Area Within the City of Decatur, Macon County, Illinois

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MEMORANDUM 2021-12 DATE: October 4, 2021 TO: Honorable Mayor Julie Moore Wolfe and City Council FROM: Scot Wrighton, City Manager Jon Kindseth,Deputy City Manager SUBJECT: An Ordinance Dissolving the Special Tax Allocation Fund and Terminating the Southeast Plaza Redevelopment Project Area within the City Of Decatur, Macon County, Illinois SUMMARY RECOMMENDATION: Staff recommends City Council approve this final action necessary to dissolve the first Decatur TIF, Southeast Plaza TIF district. BACKGROUND: The City of Decatur has 7 TIFs, with the oldest one being the Southeast Plaza TIF which expires this year after 24 years. SE TIF was created in 1997 and this Ordinance will dissolve this TIF as of December 31, 2021. This TIF includes commercial development on the south end of Decatur along Mt. Zion Road including the movie theater, Hawthorne Suites, and a new residential subdivision behind the theater. The developments added within the TIF project area have significantly increased EAVs, from$127,719 to $3,361,247. But for the TIF,this additional $3M+in new EAV would not be available to the affected taxing districts. This means beginning next year, there will be an additional $311,522 property tax dollars realized by all taxing bodies annually beginning in 2021,paid in 2022. The City of Decatur will receive approximately 16 %of that or$50,000 of additional property tax annually from the expiration of this TIF district. The City will also benefit from the additional sales taxes generated being generated within development. STAFF REFERENCE: City Manager, Scot Wrighton or Jon Kindseth can address any questions related to this agreement.