COLLINSVILLE — Residents will get a chance Monday to tell the City Council what they think about plans to change Collinsville Crossing's sales taxes and create a new redevelopment district in the city.
The City Council will hold public hearings at 10 and 11 a.m. on its plans to alter the Collinsville Crossing tax increment financing district and to create a new business district along St. Louis Road.
When the council signed an agreement in 2005 to develop Collinsville Crossing, the bonds were paid with a 1-percent sales tax levied on all the businesses in the shopping center except Home Depot and Walmart. Home Depot would only agree to a half-cent tax; Walmart refused to accept any additional tax.
But with the recession, the city has found sales taxes are falling short of the required amount to pay the bills: about $300,000 per year, or roughly the difference between what other businesses pay and what Home Depot and Walmart pay.
The proposal would require that Home Depot and Walmart pay the same 1-cent sales tax paid by the other businesses. It would also add two streets south of the original development and a short stretch on the other side of Illinois 157 to improve infrastructure and development, according to community director Paul Mann.
Meanwhile, the city also plans to create a new business district along St. Louis Road, from the popular Horseshoe Restaurant to the Fairmount Racetrack. The district might not include the recently-built Collinsville Middle School, but would include the older Jefferson Elementary. It would create a 1-cent sales tax in that area only, raising funds that would be reinvested in infrastructure and development, Mann said.
The city also plans to create a tax increment financing district in the St. Louis Road area, which would take a portion of property taxes generated along that corridor for similar reinvestment. However, those public hearings will take place at a later date, Mann said.
The Monday hearings will solely be on the sales tax business districts for Collinsville Crossing and St. Louis Road.
The hearings are open to the public at City Hall. Collinsville Crossing will be heard at 10 a.m., and the St. Louis Road district at 11 a.m.
Contact reporter Elizabeth Donald at firstname.lastname@example.org or 239-2501.