The Normal Town Council signed off Tuesday on an agreement with Young America Realty and other local apartment owners that will resolve a long-running dispute over property taxes.
The agreement covers 85 properties, including several that Young America argued were overvalued, meaning the property taxes were too high. The agreement settles the existing assessment challenges for 22 properties and increases the assessment for 59 properties by 20 percent, Town of Normal staff said.
Unit 5, which is the largest taxing body impacted by the agreement, was the lead negotiator. The Unit 5 school board approved the Young America agreement in December. It also approved a similar agreement with First Site and other apartment owners looking to cut their tax bills on 26 different apartments.
“Unit 5 has told Town staff that it believes the settlement agreement is in the best interest of the school district and in the best interest of the Town and other affected taxing bodies. Town staff agrees with this assessment,” staff told Normal Town Council members in a report.
The eight-year agreement covers tax years 2015 through 2022. Unit 5 expects to get an extra $141,000 annually from the Young America agreement. Normal does not expect to see any additional revenue because of how the town levies property taxes, said City Manager Mark Peterson. Other Normal property owners may see some tax relief as the apartments pick up more of the town's overall tax levy, he said.
The property tax agreement was approved Tuesday during a meeting that lasted just 4 minutes. Normal council members then adjourned into executive session to discuss the selection of an unidentified public official. The Town of Normal is searching to hire a new city manager to replace a retiring Mark Peterson.
Editor's note: GLT General Manager R.C. McBride serves on the Normal Town Council.
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