Community will have more chances to respond to Collinsville’s proposed TIF district soon

Since the city stated its intent to create a new tax increment financing district in January, opinions have poured in. And the community will have more chances to have their voices heard in the coming months.

A majority of residents who have spoken publicly so far, along with Collinsville Unit 10 School District, stand firmly against the plan. On the other side are some business owners, the Collinsville Chamber of Commerce and a majority of the City Council supporting it.

The proposed TIF district would encompass more than 850 acres along St. Louis Road, Collinsville Road and Bluff Road — called the southwest corridor — including Fairmount Park Racetrack, two schools and the city’s new water plant location. It would be Collinsville’s fourth TIF district, with one of the existing districts headed for dissolution.

Residents oppose the plan because they say there is no need for an additional TIF district, because they oppose the city’s previous use of TIF money, or because they fear they will have to move from their homes in that area when developers come in.

Robert Thiel, a resident who spoke at the March 22 public meeting on the proposed plan, said he, like many other residents, was worried after receiving a letter from the city that stated the district “may involve the displacement of residential units in the area.”

“I’m on a fixed income,” he said during the meeting. “I own my property there. I’ve been there 40 years. I don’t want to move. I want to stay there until I die, actually.”

Business owners, chamber representatives and council members have spoken about the opportunity to clean up the corridor and the positive effects it could have on tourism, new development and existing infrastructure.

Pete Hoffman said during the same meeting he was born in that area, worked his first job at the racetrack and continues to use the sports complex off of Collinsville Road as co-founder of the Collinsville Extreme Club. Hoffman supports the TIF district because he wants to see improvements to each of those areas, he said.

“Residentially, commercially and recreationally, I think this is needed and the reason I want to speak on it is because I live here, I work here and I play here, and I want this city to move forward,” he said.

Kris McClusky, president of ChiropracticWorks, 410 Regency Centre, said he doesn’t support or protest the creation of a TIF district, but feels the community should try “having an open mind and being willing to sort of imagine something that doesn’t currently exist.”

“...The way that we’ve always done business isn’t exactly the way that we need to do business in the future because, quite frankly, we’re getting outpaced. I’ve seen many of my peers leave Collinsville ... I’ve been under a lot of pressure to move my business to the north, to the east, if you will,” McClusky said. “Currently, I’m dedicated to Collinsville, and I just feel like it’s no longer time to remain silent.”

Three members of the City Council have previously voted in favor of moves to create the district: Mayor John Miller, Councilman Jeff Stehman and Councilwoman Cheryl Brombolich.

Councilwoman Nancy Moss does not support the proposed TIF district. She has said the city should focus on development through an enterprise zone or business district instead. Moss, along with Councilman Jeff Kypta, have both voted against advancing the southwest corridor plan on several occasions.

Like Moss, Gary Peccola, board president of the Collinsville School District, thinks the city should pursue the creation of a business district. He said the board supported it as an alternative to a TIF district.

“The city has had success with business districts,” Peccola said at the March meeting. “You can look out at the Orchards shopping center, which is a business district. You can look at the Kohl’s development, which is a business district. You can also look at Collinsville Crossing, which is a business district.”

Peccola said the board opposes the TIF district because of the anticipated loss of future revenue.

“Any loss of revenue directly impacts the students in a negative fashion,” he said. The schools have had to make cuts, including the elimination of eight teachers through classroom consolidation, and more cuts are on the way, according to Peccola, so the district can’t support a freeze in property taxes.

“We expect we’ll also have to be eliminating additional staff and positions in the future,” he said.

The city’s full redevelopment plan for the proposed district has been made available on the city’s website, and at the City Council’s Monday night meeting, it officially set the time and date for a public hearing that will allow another opportunity for the community to voice opinions. The hearing will be at 7:30 p.m. Monday, June 13, at City Hall.

Moss said the council had already heard mostly negative comments from residents regarding the district at the March public meeting. She and Kypta voted against the public hearing resolution because they oppose the district.

“I don’t believe that it’s in the best interests of the taxpayers,” Moss said.

Prior to the hearing, a meeting of the Joint Review Board, made up of representatives from each of the affected taxing districts, is planned for 10 a.m. Wednesday, May 4, in the second-floor training room of City Hall.

The city’s plan for the area

Among the city’s stated goals for the TIF district is to support existing public service entities within the district, including schools, the water plant and sewer plant.

“I believe the No. 1 policy should be an investment in infrastructure, and it should not be viewed as ‘this is a gift to developers,’” said Interim City Manager Mitch Bair to those in attendance at the March meeting.

A number of public improvements are planned, including streetscape, repair and reconstruction of streets, extension of sidewalks and flooding mitigation on some vacant properties, among other potential projects.

The city is also hoping for major commercial and industrial development along Bluff Road and Collinsville Road, property improvements along St. Louis Road and “spillover investment” in neighboring areas.

There are more than 400 housing units within the proposed TIF district area. The city, through a Peckham Guyton Albers & Viets, Inc., representative, has acknowledged that some housing units may be acquired over time for specific projects, but that the city would not be acquiring property by eminent domain.

According to the redevelopment plan, the proposal may result in the “removal” of 418 existing residential units, 412 of which are occupied, and relocation assistance would be provided to low income residents.

“...The city shall make a good faith effort to ensure that affordable replacement housing for any qualifying displaced residents whose residence is removed is located near the area,” the plan states.

The area has experienced a “gradual decline,” according to the plan, specifically suffering from age and physical deterioration. Of the 363 buildings within the proposed area, a PGAV study found that 282 are 35 years old or older and that 207 are deteriorated.

“... These conditions discourage private investment, as the potential return on investment in the area is too small relative to the risk or simply does not make economic sense,” the plan states. “Many of the commercial buildings require significant investment to rehabilitate them for new or continued viable locations for businesses. In other cases, improvements to deteriorated or inadequate public infrastructure are needed to facilitate land development.”

This story was originally published April 11, 2016 at 9:24 AM with the headline "Community will have more chances to respond to Collinsville’s proposed TIF district soon."