CALUMET CITY | The City Council gave its approval to a payment of a little more than $48,000 to a real estate developer who redeveloped stores in the River Oaks West retail complex nearly a decade ago.
By a vote of 6-0 with no discussion, the council on Thursday approved a payment of $48,295.59 to Kimco Realty Corp. First Ward Alderman Eric Schneider was absent because of a vacation.
That payment represents half of the city’s share of state sales and home rule taxes generated by stores in the River Oaks West development between Jan. 1 and March 31.
City Treasurer Gerald Tarka said in a memorandum to the City Council that he calculated the amount based on figures provided by the Illinois Department of Revenue.
In 2004, city officials approved a 10-year deal by which the city would make quarterly payments to the real estate developer as an incentive to undertake the redevelopment project. The payments are required through April 2014.
City officials have said the tax-sharing agreement benefits the city by improving the quality of the retail development.
In a separate measure last week, the City Council is considering action that could lead to a tax break of more than 50 percent for the local property taxes that would be paid by a prospective business.
Officials are aware of a company that wants to turn the vacant Jump ’n’ Jam Inflatables, at 1584 Huntington Drive, into a new business. The City Council was to consider a resolution supporting a Class 8 real estate tax assessment for the property, which would reduce the level of property taxes paid during a 12-year period.
The Cook County Board has final say over whether such a tax break is granted, although it usually requires the local government to give its approval first.
But Mayor Michelle Markiewicz Qualkinbush on Thursday asked for the measure to be deferred so that city Economic Development Director James Gigliotti could be present to answer questions from alderman.
Seventh Ward Alderman Antoine Collins also said he wants the issue to come before his Ordinances and Resolutions Committee for a review before it gets a final vote.
The delay was approved by the council, although no date for future action on the measure has been scheduled.