New business district, city tax levy up for approval at O’Fallon City Council meeting
Without objection at a public hearing or first reading vote, the Highway 50/Cambridge Business District plan has advanced for approval at the O’Fallon City Council meeting Monday, Dec. 16.
The $6.6 million development proposal at 531 W. U.S. 50, the former O’Fallon Lumber and Material Company grounds, includes two small commercial strip centers and a stand-alone drive-thru restaurant on 3 acres. The multi-tenant commercial development would total 16,600 square feet of retail space.
The creation of a business district will allow collection up to an additional 1% sales tax within the development. This is not a sales tax rebate but rather an additional tax on retail goods above and beyond what is currently collected in the city.
Preliminary estimates indicate the site could produce $60,000 to $70,000 worth of sales tax revenue annually to the city.
The project decision Dec. 16 includes the planned use zoning, creation of the 1% business district and approval of the redevelopment agreement for the business district. The redevelopment agreement is still being finalized but will be ready by the city council meeting Monday, Dec. 16.
Gregg Korte of TO-JB LLC filed the application requesting approval of a zone change and planned use on five parcels of land generally located on the southeast corner of U.S. 50 and Cambridge Boulevard.
Not all the details are ready for release, but Hi-Pointe Drive-In is interested in expanding to Illinois but has not made an official announcement yet.
Although the restaurant’s plans are listed in the O’Fallon Planning Commission report: “The project includes the development of a 3,061 square foot drive-thru restaurant along Highway 50 slated to be a Hi-Pointe restaurant. In addition to the Hi-Pointe restaurant, the project also has a proposed 6,500 square foot multi-tenant commercial building with a drive-thru and a 7,000 square foot retail center along Cambridge Boulevard” the staff report stated.
Jackie Roach, the wife of alderman Todd Roach and the daughter-in-law of O’Fallon Mayor Herb Roach, is a 10 percent, non-voting member of the restaurant development group. Because of that, Todd Roach has recused himself from all the votes taken, and the mayor has not conducted the votes.
At the Dec. 2 council meeting, aldermen approved an intergovernmental agreement between Fairview Heights, Swansea and O’Fallon to support a Metro East Business Incubator that will provide an environment that fosters business development and sustainability through education, mentorship, networking and support services in St. Clair County.
The resolution stated MEBI will facilitate economic growth and revenue potential through the generation of income, creation of jobs and ensuring opportunities are inclusive of disadvantaged groups and individuals.
The board and executive committee will include the mayors or designee of Fairview Heights, O’Fallon and Swansea. The administrator is the economic development director for Fairview Heights.
TAX LEVY PROPOSAL
For the third straight year, O’Fallon can reduce the city’s property tax levy rate, effective May 1, 2019, to April 30, 2020.
The city’s tax levy must be filed with St. Clair County the last Tuesday of December, which is Dec. 31 this year. Therefore, the council approved first reading and it advances to the Dec. 16 meeting for final approval, the last meeting in December.
The total levy request is $6,800,357, which represents a 1.62% increase from last year. The city is requesting an additional $58,476 across all funds and the library is requesting $49,908, primarily because of the new minimum wage increase.
The rate-setting EAV is the base for the next year’s estimate as provided by the county, which they project to be $714,458,449 (approximately a 1.2% increase in EAV over last year).
With the passage of the legislation providing 100% exemption for disabled veterans, this amount includes a reduction of $62,182,277 for all disabled vet exemptions, which is a 25% increase from the previous year.
The county is also expecting to apply a 1.029% multiplier for O’Fallon Township and a 1.0041% multiplier for Caseyville Township, thereby increasing the EAV by approximately $7,266,042.
Board of Review appeals are estimated to reduce the EAV by $2,100,000. Therefore, the estimated rate setting EAV for the 2019 tax levy is $719,624,491, which is approximately a 2% increase from last year.
This proposed tax levy represents an increase of 1.62% — $58,476 for the city and $49,908 for the library. Even though O’Fallon is requesting more revenue, the estimated tax levy rate of 0.9451 is a decrease of 0.0030 compared to last year’s final rate-setting EAV rate of 0.9480, which is again lower than the tax rate of 2012.
The decrease is possible by reducing the General Fund amount by $170,000 and keeping Social Security at the same amount as last year due to the current reserves. Due to the recent minimum wage increase, the O’Fallon Library requested a $50,000 increase and Parks requested a $30,000 increase. The new minimum wage law takes effect Jan. 1 and then another increase takes place July 1.
Other action by O’Fallon City Council
In other action, the council approved an Illinois Department of Transportation preliminary engineering services agreement with Horner & Shifrin for the Hartman Lane and Central Park Drive intersection improvements project and for use of $141,841.64 in Motor Fuel Tax.
These improvements were recommended in a 2014 traffic study. Since that time, a Congestion Mitigation Air Quality Grant has been awarded to the city to add a second southbound left turn lane at the intersection.
Advancing to the Dec. 16 meeting was an ordinance on amending speed restrictions. The section of Green Mount Road between U.S. 50 and Regency Park/Pierce was jurisdictionally transferred to the city in 2016. At that time, the speed limit of 40 mph was not updated in the city code of ordinances. This ordinance will officially set the speed limit of this road at 40 mph. Signs are currently installed along the road marking this speed limit.
After a public hearing without objection, the council approved an annexation request from Jeffrey S. Jerashen for 2.43 acres of land at 142 Private Estates Drive, which is located north of the Rock Springs Nature Park. It’s currently zoned rural residential district but will be rezoned agricultural, as there is a working farm on the property.
The council approved an ordinance terminating the redevelopment agreement with Central Park Plaza Condominiums.
Additional tidbits from meeting
In his report, the mayor read an invitation to aldermen for an O’Fallon VFW dinner honoring first responders at 6 p.m. Thursday, Dec. 12, and another invitation to attend a veterans meal at 6 p.m. Tuesday, Dec. 17.
The mayor congratulated Grant Litteken, assistant city administrator, and his wife on the birth of their daughter, June.
“Everybody is doing fine,” Roach said.
The mayor also recognized Governor’s Hometown Award winner Katie Buchanan, whose Girl Scout Gold Award project, “Summer of STEM,” was chosen as a community honor.
Along with the mayor, O’Fallon Police Chief Eric Van Hook introduced the O’Fallon Police Department’s newest officer, Brennen Little, who has been a community service officer with the department the past two years. In addition, he has served the village of Marissa as a part-time police officer for the last year.
Little joins three other former CSO’s as a full-time officer in O’Fallon. Sgt. Eric Buck, Detective Nick Schmidt, and patrolman Casey Broadston all started their career with the OPD as community service officers. He fills a vacancy created by the retirement of Sgt. Eric Andrew in September. He will begin his field training immediately.
The mayor noted the deadline for businesses to apply for Downtown District Façade Improvement Program is Friday, Jan. 3.
The mayor also congratulated the chair, Beth Spradling Ortega, and her volunteers, for the success of the Illuminated Holiday Parade on Nov. 30.
This story was originally published December 10, 2019 at 1:03 PM.