The Daily Egyptian is published by the students of SIU at Carbondale. Except during vacations and exam weeks, The Daily Egyptian is published Monday through Friday during the fall and spring semesters and TWThF during the summer semester."

City to gain $676,412 over 23 years from TIF district

If the third tax increment financing agreement is approved by the Carbondale City Council Tuesday, the district's net revenue created for the city will reach an estimated $676,412, which will be paid over 23 years.

The city's economic developer Jeremy Hayes said this amount only represents the net gain the district has created since it was developed in February 2004 and there could be more created as time passes.

"I suspect that will definitely be the case," he said.

However, Hayes said the numbers are only estimates and are based on current property tax rates, which fluctuate.

"Keep in mind these are projected numbers," Hayes said. "The market value could be more than what was estimated and the current property tax rate will probably go up. I'd say these are very conservative projections."

City Manager Jeff Doherty said the money these agreements create are placed in a fund specifically used for improving the TIF district, which covers 26 acres of land in central Carbondale.

The money, Doherty said, could cover not only TIF agreements, but also improvements made by other business owners who necessarily would not qualify for tax increment financing.

First Southern Bank is the third developer to apply for a TIF agreement with the city.

The first was a Save-A-Lot grocery store, which is scheduled to be finished by early next year, and the second was an agreement with Helen Wallace for renovations made to her building at 317 E. Main St.

John Dosier, president and CEO for First Southern Bank, said while the TIF district had little to do with the decision to build a new branch, it had everything to do with the location.

"We were going to build a new bank building somewhere, but the TIF district was a major influence in going into the downtown area," Dosier said. "It was good for us and our customers and a big help to the city."

The bank currently has a branch located at 2471 W. Main St. in Carbondale. The new 13,565 square foot building will house another branch for the bank, and Dosier said it would ultimately bring 35 new employment opportunities to Carbondale.

The bank's cost to build in the area is an estimated $3.4 million, which includes the purchasing and developing of the land, as well as the construction of the new facility.

Dosier, along with local bankers and shareholders, bought the bank in July 2002. Since then, the bank has tripled its assets to $75 million.

"What it means now is a more central location as well as a branch on the other side of town and ease of use for our customers," Dosier said.

The new bank branch will be located on the southeast corner of South Marion and East Main Streets, and Dosier said he expects the bank to be complete by fall 2005.

The bank has also acquired an additional four lots in the area that will be turned into an office park that other businesses can develop.

If the TIF agreement is approved the city will reimburse the bank $909,931 over 20 years for development costs, which is 75 percent of the estimated $1.4 million revenue the project will create for the TIF fund.

The City Council will also be voting on a resolution to subdivide the Carbondale Community High School Central Campus.

The city's development services director, Tom Redmond, said the president of the Foundation for Family Enhancement and Enrichment Program, Inc. and master instructor at Black's Martial Arts Academy, Tom Black is applying to subdivide the building so part of it could be sold.

The building that will be sold was constructed in 1923 and is zoned medium density residential. Development of the property would be subject to the zoning.

The martial arts academy's office manager and foundation volunteer Rich Rowell said they are currently offering Tae Kwon Do classes in the Bowen Gymnasium.

The classrooms are currently being remodeled and Rowell said the foundation would hopefully be able to offer programming for Carbondale youth.

Along with youth programming, Rowell said they are working with a chiropractor to develop a fitness center in the building. He also said they are working on bringing in a local gymnastic school when the school's current lease runs out.

Tuesday's City Council meeting will take place in Ballroom B at the Student Center.

 

 

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