Bloomington Mayor Mboka Mwilambwe won't yet say whether District 87 schools will get a cut of potential revenue created by a proposed tax increment financing district, or TIF, for the downtown area — but schools will get something.
"We can anticipate also an intergovernmental agreement with them to make sure some of those things are covered in trying to hold them harmless," Mwilambwe said in an interview on WGLT's Sound Ideas.
There is a precedent. The city shared with District 87 money generated by a past TIF to redevelop the former Kmart Plaza and bring new stores there.
TIF districts use money generated by the increase in property values to stimulate development. That can be returned to developers, or set aside for future development within the borders of the TIF. Mwilambwe said it's possible the aggregate land value in the downtown would double if the TIF is effective.
Often, school districts are concerned about TIFs because they lose tax revenue created by development.
Mwilambwe said the concern is lessened because many developers would consider one- or two-bedroom apartments for downtown projects. He said that kind of housing is less likely to attract families, which increases demand for school services. In a TIF, there would be long delays for schools to see new revenue to pay for those services.
In 2018, the city council balked at creating a downtown TIF. Mwilambwe said there is a groundswell of support for the proposal now because council members have seen downtown development continue to lag growth in the rest of Bloomington, and because the city has created a new downtown redevelopment plan and funded the early stages of it.
The mayor said the council will likely vote to create the TIF on Monday.
Grocery tax
Mwilambwe thinks the city can grow its way out of the loss of money from the state sales tax on groceries. The city takes in up to $3 million a year from the tax that would go away if Gov. JB Pritzker signs a bill now on his desk. Pritzker has called the tax regressive and said it hits low-income families harder than more affluent residents of the state.
Mwilambwe said the city may not have to cut its budget by that amount.
"One of the things I am encouraged by is that we are seeing quite a bit of economic growth in the area. So, hopefully that will result in additional tax dollars such as sales taxes and things like that," he said.
City Manager Jeff Jurgens said recently sales tax revenues are up but city costs are up even more. Mwilambwe said he and other council members don't want to create a local grocery tax to make up the loss.
If the governor signs the bill abolishing the grocery tax, it would take effect in 2026.
Housing dashboard
Mwilambwe said he's pleased with the creation of an online Residential Development Dashboard with information about housing creation. It lets the community know what's going on with planned units. The mayor said the dashboard also has information valuable to developers.
"Either to purchase property or where can I build something. That gives them that. That's a very exciting kind of thing," said Mwilambwe.
So far, the dashboard reports 250 units approved, more than 200 permit applications, and 600 units in progress.
Mwilambwe said the dashboard has the potential to facilitate development by making information available faster. The city is trying to attract people who want to build larger residential projects to address the housing shortage.
The dashboard categorizes data into four main areas: Residential Units: Plans Approved; Residential Units: Applied for Permits; Residential Units: Permits Issued; and Residential Units: In Progress. Each category is broken down into subcategories: Single Family Attached or Detached; Two Family Attached; and Multi-Family. It features an interactive map for users to click on projects for more detailed information.
Liquor license push back
Mwilambwe said he'll make his decision this week on a controversial application for a package liquor and smoke shop on Cottage Avenue. That's so he can communicate with council members before next week's meeting. The location is a former Family Video Store near a neighborhood where residents have voiced objections.
"In the three years I have been liquor commissioner I don't believe I have seen that much opposition," said Mwilambwe.
Mwilambwe held off making a decision on the application near the Park Place subdivision during an earlier hearing because it came out at that the business had not yet hired a general manager to oversee the liquor license on site. Usually that information comes to the city before the hearing. Mwilambwe declined to say whether that is a deal breaker or a process issue.
“I have to look at the balance of everything that was presented,” he said.
Front and Center building
Since the city moved to condemn the vacant Front and Center building that once housed a Montgomery Ward Department store downtown earlier this year, Mwilambwe said talks with the owner have been revived. The city claims before an administrative law judge that conditions continue to deteriorate with the structure and it's a threat to public safety and the rest of the downtown.
“Staff continue to talk to the owner about some of the issues, including it sounds like we have some interest in the building from other parties,” said the mayor, who declined to say what kind of interest or what development the multi-story structure could support.
“Nothing too concrete,” he said.
Deputy city manager
Mwilambwe said he anticipates announcing a new deputy city manager within about a month. He has been pleased in the past with the depth of the pool of applicants. Interviews continue. The position became vacant when Jeff Jurgens became city manager in April.
