CALUMET CITY | The City Council gave its approval to a payment of just over $42,000 to the developer who rehabilitated stores in the River Oaks West retail complex nearly a decade ago.
At the time of the agreement in 2004, municipal officials agreed to share part of the city’s portion of sales tax with the developer, Kimco Realty Inc.
Payments are to be made every three months for a decade. The payment approved by the aldermen on Thursday by a 7-0 vote with no public discussion is for the period of April 1 to June 30, 2013.
It totals $42,034.71, and is half of the state and home rule sales taxes that Calumet City received. The city treasurer’s office calculated the payment, based on figures provided to the city by the Illinois Department of Revenue.
Payments will be required for one more year, ending when the period of Jan. 1 to March 30 of this year is calculated sometime early next year. City officials have said previously that the tax-sharing is a benefit because it encouraged improvement to the retail development. It has paid Kimco an average of $140,000 per year for the life of the agreement.
Last year, Kimco officials told the City Council they do not expect to recoup the $11 million they spent to upgrade the shopping strip in the early 2000s, saying at the time the downturn in the economy caused problems that could not have been anticipated.
In other business, the City Council authorized Robinson Engineering, which serves as a city engineer, to conduct a study to determine whether a catch basin should be installed at 516 State St. in the alley. The study is not to cost more than $1,200.
While aldermen also approved having the engineer work with Lansing Fence Corp. to remove and re-erect parts of the existing guardrail, while also installing a steel guardrail along the north side of Harding and Burnham avenues within the city right-of-way.
Lansing Fence Corp. also will remove existing fence posts within the Illinois Department of Transportation right-of-way. Cost will not exceed $9,800.