Wednesday, April 27, 2011
Controversial TIF Dimmick Twp and City of Peru
Lois, regarding the issue of the Holiday Inn Express TIF. What is the history behind Dimmick and Peru involving what used to be farm land? Why did Peru turn that property over to Dimmick to begin with? Could you possibly make this a heading in order to get some feedback?
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35 comments:
Peru did no such thing. The land has been in Dimmick Township since 1849. The City of Peru (City - not Township), expanded into Dimmick Township.
Can a city just expand without a deal being made with someone? Is that how Dimmick was able to get the property taxes from the businesses which developed in this area? Was that the deal?
We as Peruvians should support the city in this TIF district. Dimmick grade has a new school and is spending 23K per student and they still want more. The area is in dire need for development. It is full of old gas stations, old hotels, low lying areas, etc. Developers are going to spend millions just to get the area ready for construction and a TIF distrct is a great solution. We need the additional tax revenue and Dimmick school needs to get out of the way.
I did view the TIF map online today and I noticed that the TIF boundry is not real consistent amongst the parcels. Certain areas are TIF and then the neighboring parcel is not and the next parcel is. If the entire area was considered blighted, why are all the parcels not part of the TIF. On a different note, with all of the financial trouble that the state is in, I have to believe it's about time to start consolidating the smaller schools together. I appreciate the fact that there is more of a personal level of instruction at a smaller school, but we can't continue to maintain all these small schools.
I too have no problem with the TIF with the exception of the Holiday Inn Express being included in it. That area along 251 north of 80 is prime property not blighted and most of it is already developed to some degree.
The original architects or designers of this TIF painted it with a very broad brush. Dimmick School and LaSalle County have made it clear that their opposition is directed straight at the Janko hotel property and sections of farm land. They make a good argument and I beleive the courts will see it that way as well.
The city and it's TIF lawyers were encouraged by Janko to include his property as well as others in the area which clearly do not qualify as "Blighted".
The truly blighted and unproductive properties included in the TIF should be and will be developed with the help of TIF dollars.
The city of Peru should not expend any additional funds fighting this lawsuit and paying these TIF attorneys to argue a case they are sure to lose. Unless of course the owners of the Holiday Inn Express are going to share in the cost of attorney fees.
Thanks for the great comment Steve. You are right the city should not waste any taxpayer money on TIF lawyers.
I believe that Peru could win. The inducement resolution is a solid argument. However, the TIF law is poorly written and it would really be up to the judge's opinion of this particular TIF. It is up to the Mayor on how to proceed. The way I see it, the city stands to loose $45,000 plus interest to repay the loan to the Janko Financial Group. I don't think we have any new infrastructure to pay for - maybe we do though.
To the original point of the post... It is not applicable to this TIF but.... upon further review it might be worth looking at why the Peru Public School District does not include the property up to N30th Road which is within Peru Township and the City of Peru.
School district boundaries have nothing to do with township or city boundaries. Think about most rural school school districts. Their boundaries far exceed those of any municipality. While Peru Schools are more based within town, the city boundaries have grown north. As a result, most of the north Peru commercial development does not lie within the boundaries of Peru Public Schools, but Dimmick School District. This has nothing to do with anything the school districts did. This is why Dimmick is a relatively wealthy school district.
Just a few questions: 1) Can the TIF district be amended by the City? or 2)Can the TIF proceeds be assigned to the school in good faith without retaliation from the developer? or 3) Is there a written agreement between the City and Janko for their parcel specifically? I thought a few steps for that arrangement were not yet complete.....
ATTENTION CITIZENS OF PERU: You should be made aware that no matter who wins this TIF lawsuit you are the loser. Your tax dollars are going to pay for the two TIF lawyers (county and city). Maybe we should call our aldermen and let them know that there is no winner in this case except possibly the property in question. Should we have to pay to make one business happy?
Brian: I think you have your boundaries wrong. Did you mean anything north of 36th street?
Lois: Do you know if the above mentioned TIF a done deal or not?
I'm talking about the road just north of I-80, it has several names on the maps... May Road, LaSalle Road, North 30th Road. This is, more or less, the border between Dimmick and Peru Townships. I've posted some maps on my site. Lois - you can copy them if you want to post them here.
Let me see if I have this straight now. Even though Peru & Dimmick Twps. are basically divided by May Rd. the property taxes from businesses north of 36th st. go to Dimmick schools because that's where the school boundaries are? Why did Peru relinguish those taxes when we started to annex into Dimmick Twp.? It's almost like we wanted the businesses to be in Peru and get the sales tax to run the city but we forgot about our schools. No matter what the situation was back then I personally cannot justify the property along 251 as a TIF area. That's where Wal-Mart, Kohls, Pet Smart, Taco Bell, etc. etc. are located.
1:35PM
I think you understand it perfectly. It just goes to show how decisions done at one time have unknown consequences for the future generations.
If the city decides they will continue to defend the TIF in court there will be only one group of winners, the attorneys. Even if Peru eventually prevails after a long court case the fees to the TIF lawyers will be substantial. Dimmick School can afford the best law firm in the state for unlimited billable hours. Peru can't.
Citizens of Peru should contact their county board representatives and urge them to withdraw from this lawsuit. Peru taxpayers are paying for the county to bring the TIF lawsuit and paying again to defend the TIF lawsuit.
Peru should not allow their TIF attorneys to keep the meter running throughout this ordeal.
Consider it "pro bono" for a cash strapped municipality.
It is my understanding that even if the county would withdraw Dimmick will still proceed with the lawsuit.
We just learned today that the restaurant that has operated in the former Tiki complex as The Pine Cone Restaurant for the past year or so will be closing the second week in May. This is located between I-80 and La Salle Road.
The original Pine Cone Restaurant closed several years ago and several attempts at re-opening were short lived. The current renters of the restaurant have been successful because they served good food at reasonable prices and know how to run a restaurant.
A notice taped to the door indicated the closure was because they were unable to reach an agreement with the owners of the property who also maintain several restaurants in Wisconsin. The property needs major repairs and the landlord is unwilling to take care of the problems.
The owners of the current business operating the restaurant will be going to Mendota and move into the former Busters Restaurant in the truck stop in Mendota near to I-39.
This property falls within the boundaries of the North Commercial TIF. I wonder if the owners will continue to let the property become more run down in hopes that someone will purchase all the land with the incentives offered by being in a TIF.
Did the TIF have unintended consequences for this property and Peru?
I always had to wonder if the same "situation" was a set up for the property where the other truck stop was located. Remember all the money we were going to make from the sales tax at the flea market? That place was a disgrace. But, who knows, maybe someone wanted it to go bad and "look blighted" in order to buy the property at a great discount later.
I would be very interested in who owns that piece of property called the Pine Cone. Just because the "owners" are from Wisconsin does not indicate it is not a trust or LLC. I am also curious if anyone in any of the trusts or LLCs are affiliated with the county township or Dimmick, etc.
The TIF lawyers aren't the only ones getting rich from this deal. One family will/is directly benefiting from the new TIF. How can new construction be blighted? If the area was blighted before the new construction, why build there? Watch very carefully who buys/takes possession of both "blighted" truck stops.
By the way, whose land value rose 10 times when the city of Peru paid for water and sewer lines to be extended to I80 up Plank RD? Just read the signs.
I still don't understand how a blighted area can exist in between new businesses and why, if it was a blighted area, the new construction was built before the TIF existed. And, does anyone know if the full TIF area is finalized?
What was the vote of each individual member of the city council in regards to this particular TIF? Peru's city website does not publish city council meetings back to this date.
This was probably all discussed in executive session, where no votes are allowed.
8:01PM
The TIF approval I believe was approved by the entire city council, I don't remember anyone expressing any dissent.
It seems that once the atty does all the paper work and the council votes, it becomes a done deal unless there is an objection by an interested or involved party as Dimmick Twp.
Would someone please inform me what is meant by executive session of the city council. (I know what a city council session is and a closed session but I do not know what an non voting "executive" session may be.)
Isn't it sad that the owner of the Holiday Inn Express is being singled out as the villain, when it truthfully seems that everything he has done in regard to the TIF is legal, alert business practice and, let's not forget, the huge investment of over $8,000,000.00 in his own hometown.
Too understand this TIF you would have to know the history of its intended creation from day one and also have a through knowledge of the TIF Laws.
10:31 AM
You may find your answer as to "what is meant by executive session of the city council" by going to this site and then clicking on the appropriate links
http://www.mrsc.org/research/libraryresults.aspx?cat=782
My day will not allow me the time to do the posting for it.
Executive session is the same exact thing as closed session. There is absolutely no difference. They cannot vote in closed session and they can only discuss certain items in closed session.
Im sure the 8 Million dollar investment is purely altruistic. If it is was purely good business sense then the Inn owner should have waited util the results of the TIF came back. Oh wait, the Inn owner paid for the study. So it was ok to go ahead, knowing it would be included.
Is the other new hotel in the TIF district? I guess that Innkeeper isnt as savvy as the other.
Is it savvy or connected.....??
10:31 My question to you is "Is it fair to other businesses who spend a great deal of money in our community but don't get the advantage of a TIF"? I too think it's wonderful that he established another business in his community but does it have to be with perks?
While the citizenry continue to debate what is good and bad (mostly bad), the City of Peru is losing. #1 we couldn't allow Bojo and his truck garden in Peru - now he is establishing in LaSalle and now has purchased a lot and planning on a building AND paying taxes #2 now the Pine Cone is moving to Mendota. City Council - People of Peru quit worrying about who is getting rich because we are getting poorer. No one is to blame but us. Most progression in business costs money and unless you are the guy upfront RISKING their money, all others (me and you) are riding on their coat tails. We will receive a lot of the benefits, if the risk becomes a success. Peru needs some savy leaders. Downtown Peru is all but dead, the mall has certainly lost its luster, Peru infrastructure (roads, sewers, etc. could not handle any kind of massive growth. The expansion is north of 80 (unfortunately), time to open our minds and be forward thinking. Quit the finger pointing.......we are losing.
6:58 am, "Don't look behind the curtain!" said the great OZ. Savy business people risk their money all the time. Unfortunately 99% of them have to rely on sales to recoup the capital, not by taking much needed tax revenues.
"We are all losing." said the person who is getting a brand new business while the cities tax money is paying for the improvements.
The city can't pay for infrastructure improvements when the tax base is being diverted.
I think land within the city limits that has been zoned and platted should have to be taxed on the appraised value or asking price. If it is being farmed or otherwise. That should solve the budget shortcomings.
Is it time for some Pride in Peru signs?
Signs couldn't hurt as the 175th celebration proved, we have NO PLANNING.
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