City Closes the Books on TIF #1

Effingham City Council members this week approved closing the books on the city's Tax Increment Financing District #1. TIF 1 was an instrument utilized to capture the increase in tax revenue in the district, then to use those revenues for improvements in the district.

The TIF District was created in the last 48 hours of 1986, and lasted 35 years. The increase in tax revenue was not only used by the City, but also by other taxing bodies for their projects. Some argued that those taxing bodies lost out on tax revenue, but TIF proponents argued that much of the tax revenue generated never would have been realized without the district.

The revenue remaining in the TIF 1 account was transferred to the remaining three TIF districts, the Central Redevelopment District, the South Central Industrial District, and the Outer Belt West District. The Central District will remain until 2035 and the South Central Industrial District until 2038. The Outer Belt West District will be allowed to expire as that project has been completed.

The Council approved a professional services agreement with Milano and Grunloh for work on reconstruction of portions of Thies Avenue by John Boos and Company and on Airport Road by Hetzel's Overland Transport. Also approved was the abatement of the tax levy on four bond series since the bonds earned enough interest to make the payments.

Council members approved $89,000 for preliminary engineering work on Phase 2 of a reconstruction of Rickelman Avenue. The work is related to an eventual extension of Ford Avenue east and possibly north to Rickelman. Also approved was additional sidewalk on the west side of Merchant Street from Eden to Flamingo Avenues, and the purchase of a generator for the waste water treatment plant from Pals Electric for just under $358,000. 

The Council rezoned land at 40 North Lakewood from non-urban to single-family residential, land at North Wind Court on North 4th Street, south of Rickelman Avenue from general commercial to multiple dwelling district, land at 202, 204 and 206 North Henrietta from limited office and retail to general commercial, and land on the southeast corner of Sur's Woods Drive and North 3rd Street from single family residential to general commercial. The Council also approved vacating a portion of 1st Street from Fayette Avenue south to the CSX Railroad, and agreed to allow a special use permit to allow general commercial projects in a highway commercial district. 

City Director of Public Works Jeremy Heuerman reported that bids received on the City's Bike Trail and Bike Path Project came in below the engineer's estimated cost so the work can proceed. While the work will include bike path striping at locations throughout the city, it also includes construction of a trailhead for the TREC Trail along Outer Belt West. The trailhead will provide 20 to 25 parking spaces, rather than about five as is now located there.