Friday, Jul. 03, 2009

Belleville halts plans for tax financing district on west end

Zone was proposed for west Belleville

BELLEVILLE -- City leaders have decided to hold off on trying for what would have been Belleville's 20th tax-increment financing district.

City leaders had said they would consider pursuing a financing district for the area north of Main Street in the west end of town.

Mayor Mark Eckert said they wanted to help Raymond's Place restaurant and bar to keep its location in the 9700 block of West Main Street. But that business moved just down the street to 82nd and West Main streets. Without a project to use as an anchor, Eckert said, a tax-increment financing district would be difficult to launch.

"At this point in time, it's not going anywhere," Eckert said, adding that another difficulty in creating a financing district for the area is that the blight is scattered.

The city never paid for a study on the matter, but rather city leaders made the decision not to pursue it following discussions with the city's consultant for tax-increment financing districts.

A tax-increment financing district freezes the value of the tax base for local governments within the district so that increases in the value of property can go into a separate fund to help improve infrastructure and attract new development in blighted areas.

Still on the table is a tax-increment financing district for the expansion of Eckert's Inc. The council voted to explore the possibility of creating one to help Eckert's with its $5 million proposed expansion of its facilities, including its popular Country Store.

That company's president, Chris Eckert, has said that without some help from the city, the company would likely have to delay or scale back its expansion. Mark Eckert, who is not related to Chris Eckert, has said that he thinks the marketing and sales tax income the company generates for the city justifies some tax-increment financing help.

Some residents have criticized the city's use of tax increment financing; they worry that it raises their property taxes and that the city isn't clear on how exactly it uses the funds. Mark Eckert has maintained that new development in the city, such as the Belleville Crossing shopping center, wouldn't have been possible without a financing district.