WINFIELD | The Town Council approved a tax increment financing district at Tuesday’s meeting.
The Winfield Plan Commission recommended establishing the economic development area which will include commercial and business properties along East 109th Avenue and Randolph Street within the municipal limits. The area was selected after an extensive study by the Winfield Redevelopment Commission.
The next step is a public hearing by the Redevelopment Commission.
Town Attorney David Austgen explained that TIF districts are set up to capture portions of property taxes paid by businesses within the district. The amount is based on the initial or base assessed value of the property when the district is established and any increase in assessed value afterward.
The state returns a portion of the business property taxes collected in that district to the redevelopment commission. That money can then be used to develop and redevelop infrastructure in the district.
It can also be used as an incentive to attract businesses to the town, Austgen said. Those incentives are tied with capital financing.
Prior to the vote, Jim Brown, a representative of Winfield Township Trustee Roland L. Brauer Jr., spoke during the public comment period and asked the Town Council to table the action until a meeting could be held with Brauer and other taxing units within the town.
“The TIF district proposal could have future impact on the township, the county and the library,” Brown said.
However, Austgen said the entire matter has been conducted at public meetings that follow state statute. Brauer and Brown will be invited to the Redevelopment Commission public hearing.
Town Council President Gerald Stiener said the TIF district “is really, really important for our town. With the tax caps, every source of revenue needs to be explored.”
In other business, the Town Council approved requiring performance and maintenance bonds for the Stonegate subdivision being developed by Peter Manhard.
A performance bond of $899,705 will be required for Stonegate Commons. A maintenance bond of $289,209 is needed by Stonegate Offsite and a $353,773 maintenance bond is required for Stonegate Phase I.
The bonds help protect Winfield if the developer doesn’t complete specific tasks that are required by town ordinances, said Clerk Treasurer Rick Anderson.