Galesburg City Council on Tuesday night will approve a pair of items that aim to study if an area along Grand Avenue can be turned into a Tax Increment Financing District.
Over the last two years, TIF 1 and 2 and a portion of TIF 4 in Galesburg have expired, and TIF 3 will expire at the end of 2023.
TIF Districts are an economic development tool to help blighted areas. They do this by setting a base property value at the beginning of the TIF term and as property values rise the incremental funds are used for grants within the district.
The Illinois Municipal League says that for a TIF to be created a local government must find that development or redevelopment of the area would not occur “but for” the creation and use of TIF.
The Council will vote on a resolution to perform a feasibility study, the required first step in the process.
Later in the agenda, there’s a contract to approve with PGAV Planners LLC, with a cost of $31,500.
PGAV would assist with the required process of determining if all or a portion of the area is eligible under the applicable provisions of the TIF Act.
If all or a portion of the area is eligible, the city may direct PGAV to prepare a redevelopment plan for the area, which is included in the agreement.
Council documents say that the entire process, from start to finish, may take five to seven months to create a new TIF district.