CALUMET CITY | The City Council approved a pair of payments that keep the city in compliance with deals to real estate developers who oversaw additions or renovations to businesses near the River Oaks Shopping Center.
By a 5-0 vote, the council voted Thursday to approve a $39,540.34 payment to Kimco Realty Corp. Calumet City 836 Inc., along with another payment of $17,831.31 to SDI Calumet City LLC.
Kimco is the developer that oversaw a mid-2000s renovation of the River Oaks West shopping center, while SDI oversaw construction of the Sonic Drive-In restaurant.
Under the agreements, Calumet City is required to share half of its portion of the state and local sales taxes it generates from the River Oaks West and Sonic business entities.
The payment to Kimco is a quarterly one, and the payment approved Thursday represents the developer’s share of sales tax from October through December. The SDI payment is made annually, and this payment represents the proceeds owed for 2012.
Calumet City has made payments to Kimco since 2004, while the payments to SDI began in 2011. The agreements run for 10 years.
Real estate developers demanded the tax-sharing agreements, claiming the extra revenue to them made the renovation projects viable. In the case of SDI, they say expenses they incurred during the construction of the Sonic Drive-In related to storm water management from the nearby Little Calumet River were such that they need some reimbursement.
Calumet City officials justify the tax-sharing agreements by saying the presence of improved businesses bolsters the local economy.
The amounts of money owed to the developers was computed by the city treasurer’s office, based on sales tax data provided by the Illinois Department of Revenue.
In other business, Mayor Michelle Markiewicz Qualkinbush told aldermen that she will give them new committee assignments when the City Council meets again on June 13.