The Bloomington City Council on Monday approved a new Tax Increment Finance [TIF] district located around the downtown area, a new project labor agreement for public works projects and several new priorities to address housing.
A TIF district diverts any new taxes generated by an increase in property values back into redevelopment of the area. The council previously proposed a downtown TIF district in 2018, but axed the plan after the District 87 school district objected amid concerns that TIF districts erode the tax base and divert potential revenue away from schools.
On Monday, the council also approved an intergovernmental agreement with District 87 that works to alleviate some of these concerns. According to the agreement, a parcel at 201 Front Street will not be included in the TIF.
Additionally, in the 11th year of the TIF, there will be an evaluation period. If it's found that a $5 million threshold in equalized assessed value [EAV] growth was not met in the first 10 years, then 50% of the TIF fund increment will go back into the taxing district, which would benefit District 87 financially.
A less concrete aspect of the intergovernmental agreement involves the district’s longstanding concerns that a downtown TIF will strain its resources related to student growth. Also at the 11-year mark, student growth will be evaluated and the district and the city will work together to alleviate any additional burden the district faces due to the TIF. What exactly this will entail is unspecified.
The council approved all five ordinances concerning the TIF without fanfare, and all public commenters who referred to the TIF did so favorably.
Former council member and downtown business owner Jamie Mathy said “for a hundred years, downtown was the cultural heart of Bloomington. And then we got to the mall era.”
Mathy referred to the '90s TIF that rescued some downtown buildings from dilapidation after businesses moved from the area. “So much history was almost lost, but that TIF district spent 23 years just trying to save those buildings,” he said.
“We really need the city to come in and do the streetscape, right, outdoor things,” concluded Mathy, arguing business owners have done their part to revitalize buildings. “We’ve done the buildings. We can’t touch the sidewalks, we can’t touch the trees, and the roads, and everything else that needs to be happening to push the city forward,” he said.
Labor agreement
Also Monday, the council approved a new project labor agreement regarding public works contracts exceeding $50,000. The city says the agreement will be “utilized to help ensure labor stability, add increased safety standards, and support local employees."
The council room was packed with supporters of the agreement from local labor unions, and they cheered when it was approved.
“This has been about a year in the making,” city manager Jeff Jurgens said of the new agreement. “And when I took over in early May, this was one of my top priorities.”
Jurgens added the ordinance is modeled after one in Springfield that has yielded good results.
Housing
In their final new business matter, council members set four new priorities to address the housing crunch.
They include establishing a standardized housing incentive, enhancing housing rehabilitation in blighted areas, focusing on intergovernmental collaboration, and completing a review of zoning and subdivision codes.
Jurgens said while he’s proud of the new priorities, “we need more shelter space. That’s the long-term solution.”
“We’re zeroing in on that,” Jurgens added. “I really hope that there’s light at the end of the tunnel and that we’ll have more to announce shortly.”
Jurgens also remarked that there are “about 100 unsheltered individuals” currently living in Bloomington, noting this is a growing problem across the country, and not just in Bloomington-Normal.
As part of its consent agenda, the council authorized the city’s participation in class action lawsuits surrounding the opioid crisis, approved a $6.8 million contract for street resurfacing, and followed the Normal Town Council in expanding the boundaries of the Bloomington-Normal Enterprise Zone to include acreage along Rivian Motorway.
