City Council approves two revenue-sharing payments to River Oaks West developer

2014-04-24T21:53:00Z 2014-04-24T22:58:12Z City Council approves two revenue-sharing payments to River Oaks West developerBy Gregory Tejeda Times Correspondent nwitimes.com
April 24, 2014 9:53 pm  • 

CALUMET CITY | The City Council gave its approval Thursday to two revenue-sharing payments with the developer who overhauled the River Oaks West shopping center a decade ago.

Aldermen voted 6-0, with 3rd Ward Alderman Thaddeus Jones absent, in favor of two payments to Kimco Realty Corp. Those payments consist of the city sharing half of its share of state sales tax and home rule sales tax.

That agreement dates back to 2004 and is in effect for 10 years. It was meant to be an incentive to get the real estate developer to make improvements to the River Oaks West portion of the shopping mall.

Payments approved were for $45,677.54 for the period from July 1-Sept. 30, 2013, and for $55,248.60 for the period from Oct. 1-Dec. 31, 2013. A payment for April 1-June 30, 2013 was approved by the City Council earlier this month.

One more payment, likely to be made by the city later this year, will be for the period of Jan. 1-March 31 of this year. Amounts of money owed to the real estate developer were calculated by the city treasurer’s office, based off figures provided to the city by the Illinois Department of Revenue.

City officials have said they benefit from sharing their tax revenues with businesses because it encouraged improvements to the retail development. Officials say the city has paid an average of $140,000 per year in each of the 10 years of the agreement.

Kimco officials, in a presentation to the City Council last autumn, said they did not recoup the $11 million they spent to improve the shopping strip back in the early 2000s, because the downturn of the economy in recent years caused unanticipated problems.

In other business, the City Council voted without opposition to approve a moratorium on the city being able to issue business licenses to used car sales lots. The moratorium takes effect immediately, and runs through Dec. 31.

Also, Police Chief Edward L. Gilmore said the city will be working with local Boy Scout troops to operate an explorer’s program this spring and summer that will give older scouts some direct contact with what police officers do on the job.

Gilmore also said that the Citizen’s Academy program created last year to give adults exposure to the police department operations will resume with a new class come September.

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