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Long it was. Not just long, but
thorough. Discussion pertaining to the Diversified business plan
intended to bring a Goody's and Dollar Tree to the old Kmart plaza
took over two hours. The room heated up quickly, and it wasn't just
the closed doors and lots of bodies filling the room. By the end it
seemed that guests, development council members, city council
members, an attorney for the developer and the city attorney had, as
EDC Director Jeff Mayfield often said, "left no known stone
unturned" in their quest to make the best decision.
The proposed ordinance addressed making
an agreement with the developer, Diversified Acquisition LLC, to
develop a business district and enter a redevelopment plan for the
property. In the agreement the city is obligated to give the
developer $510,000 to be used toward the redevelopment of the
property.
The developer is obligated to reimburse
the city if either of the businesses fails before the city's loan
and costs have been repaid by the new retail sales tax revenues that
those businesses generate. Some additional stipulations were
identified during the meeting, and the agreement is subject to those
changes.
Unease at the financial risk that the
endeavor poses to the city factored in five "no" votes, from
Aldermen Benny Huskins, David Armbrust, Patrick Madigan, Jonie Tibbs
and Buzz Busby. Several said that they felt the city is not in a
good enough position to take such risks at this time.
The major
concern centered around sales tax revenue shortfalls: What if the
stores don't generate enough? What will the city do about timing
between when the first loan payment is due and where the funds will
come from to cover it? The sales tax revenue that is to cover the
loan has a four-month delay before it is received from the state of
Illinois. The opening of the stores is scheduled for April. There
will likely only be four months of accumulated revenue when the
first-year loan payment comes due. It was estimated by City
Treasurer Les Plotner that the city will probably need to cover
about a $22,000 difference on Dec. 1, 2004.
[to top of second column in this
article] |
Several of the "yes" votes were
pronounced following long pauses, possibly indicating deep thought
or prayer? In all, the yeses summed five. They were from Aldermen
Glenn Shelton, Verl Prather, Steve Fuhrer, Martha Neitzel and
Derrick Crane.
Those favoring the step spoke of future
jobs, potential to attract additional businesses, increases in sales
and property tax revenues, bringing goods and services to town, in
general taking a step toward new economic development opportunities.
The vote lay as a 5-5 tie, and Mayor
Beth Davis quickly broke it with her solid yes.
Goody's and Dollar Tree will be coming
to Lincoln.
An unrelated order of business
immediately followed in regard to a compensation plan for city
employees. Representatives from the Valic Co. waited more than two
hours to make their two-minute proposal. Mayor Davis apologized for
keeping them through the laborious discussion that had preceded
them.
One of the
representatives enthusiastically quipped, "I enjoyed it. It was
better than the Monday night drama on CBS."
[Jan
Youngquist] |
