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It has been an intense several months
of numerous meetings. The opportunity falls as both city and county
recover from tight times. Yet, it is the type of initiative that
will aid in county and community revenues for the future and likely
turn a sagging economy around. The city finance committee called a
special meeting last night that was followed by an adjourned meeting
that allowed them to complete their commitments toward the
development.
Last month, city finance committee
chairman Verl Prather recommended that some of the new sales tax
revenue intended for infrastructure be designated toward the
project. Motor fuel tax can be used for it as well.
The city agreed to supply a
requested $600,000 from those funds upfront and an additional
$110,000 per year for five years to be used toward infrastructure.
Additional financing of $10,000 for
10 years to be used toward the purchase of land was also approved at
the city's March 22 meeting. Those funds would be taken out of
general revenue.
However, as plans have progressed,
the project was still short on funds, and Prather recommended that
the city supply additional funding to aid in purchasing the land.
Since the funds to purchase land
need to be supplied upfront, it will be financed through a debt
service that is to be chosen yet. A choice between finance plans at
$30,000 per year for 10 years or $20,000 per year for 20 years was
presented.
After evaluating them city treasurer
Les Plotner agreed with Prather that it would be far better to
choose the 10-year plan with much less of the funds going toward
interest. That plan kicks in about $240,000 toward the land
purchase.
"I had a lot of questions about
this; I'm a lot more comfortable now," Plotner said. "It is doable.
The $30,000 per year is handleable with the jobs this will bring
in," he added.
The county made an informal
commitment by straw vote at a special meeting the end of last month.
They could not make a formal commitment outside a regularly
scheduled meeting. Orr reported that their executive committee met
earlier this week to work out how they will finance their portion,
which is to go toward the purchase of land. They made a 6-0 approval
on debt service financing. It is on their monthly business meeting
agenda for final approval next Tuesday, April 19.
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The company, the city and county are
putting a lot at stake. City attorney Bill Bates is watching for the
city side that the agreements have adequate contingencies so that
the returns will cover the city's commitments. This would include
that the company does what they say they will do, such as hire the
number of employees they say they will and maintain a certain
employment level.
The city will also offer returning
additional sales tax over $90,000 per year. This will cap at $190,000. Qualifying years would
kick back up to $100,000 dollars per year to the company for the
first 20 years.
Mayor Beth Davis was given approval
to sign an agreement that will be faxed to the Illinois Department
of Transportation this morning. IDOT has a 50 percent matching grant
fund program that fits the site. However, it requires that
engineering studies be performed as part of the grant application.
Green and Bradford, a firm
specializing in that field and knowledgeable of that area of our town,
has agreed to do the work. They will begin right away, but their
contract will include a clause that allows that if the project
doesn't go, the work can be stopped and payment will be only for
work that has been completed.
The engineering plan and studies
cost $149,000. If approved by IDOT, this fee will be included in the
total infrastructure cost.
Aldermen approved all of the above
plans.
Orr said that the company would like
to break ground by July 1 and be up and running 10 months later.
They are waiting on our offer to be completed. They have another
site in Indiana they are considering but prefer Lincoln as their
Illinois site.
Orr said that the company could make
a decision in as soon as a couple of days.
[Jan
Youngquist]
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