The proposed tax breaks would be for Belleville-based FKG Oil Co., which plans to build a Moto convenience store at the intersection of Illinois 161 and Fullerton Road, and for Charleston-based Phillips Investments LLC, which plans to build The Villas of Holly Brook assisted-living and memory care center off Frank Scott Parkway near Belleville West High School.
The exact amount of the tax breaks for the two projects worth a combined $12.5 million has not yet been determined, but the city’s Economic Development, Planning and Zoning Department estimated the amount could be more than $100,000.
On Monday night, the Belleville City Council will consider a series of motions to kick off the process of getting the tax breaks implemented.
There are two types of tax breaks being considered for the Moto convenience store:
▪ A property tax abatement on 50 percent of the increase in value for five years.
▪ An exemption from state sales tax for construction material purchased in Illinois.
The Villas of Holly Brook project is not eligible for the property tax abatement but the developers, Rep. Reggie Phillips, R-Charleston, and his son, Hadley Phillips, are seeking the exemption from state sales tax for construction materials purchased in Illinois.
Hadley Phillips said construction won’t begin on the assisted-living center until the tax breaks have been approved.
The City Council is scheduled to vote on Monday to enter into agreements with St. Louis-based Economic Development Resources for assistance in getting state permission to expand the city’s enterprise zone to include the Moto and Villas of Holly Brook sites. If a project is located in an enterprise zone, the developers can apply for an exemption to the state sales tax for construction materials.
Aldermen also are scheduled to vote on agreements with FKG Oil and Phillips Investments to ensure the developers would each pay $8,500 to cover the fees charged by Economic Development Resources.
The City Council has already approved plans the for the Moto and Villas of Holly Brook projects.
The Moto will have a made-to-order restaurant, in-store dining and a drive-thru window for customers to get their food orders.
Plans for the Villas of Holly Brook call for 50 assisted-living units and 24 memory care units. The letter of agreement with Phillips Investments states the company will invest $6.21 million in the project, but Hadley Phillips said by the time the building is fully furnished, it will be worth $9 million.