Moline reverses prior decision, approves TIF for Genesis

Posted Online: Nov. 13, 2012, 10:43 pm
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By Dawn Neuses,
The Moline City Council will vote in early December on creating a tax-increment-finance district for a Genesis Medical Center development, a proposal that was voted down last week.

Aldermen sitting as the committee of the whole were asked on Tuesday to reconsider the TIF by Ald. John Knaack, 1st Ward, one of six aldermen who voted against it.

Aldermen voted 5-3 to reconsider, but voted 4-4 on moving the TIF-related ordinances to the city council floor for a formal vote in December. MolineMayor Don Welvaert broke the tie, siding with the four aldermen who voted to consider the TIF: Alds. Knaack; David Parker Jr., 2nd Ward; Scott Raes, 3rd Ward; and Lori Turner, 5th Ward.

Voting against consideration of the TIF were Ald. Ted Ronk, 4th Ward; Kevin Schoonmaker, 6th Ward; Sean Liddell, 7th Ward; and Stephanie Acri, At-Large.

Genesis owns 48 acres west of 41st Street and south of 26th Avenue, a former landfill site. It proposes to build a multiphase medical campus and asked for a TIF to assist with the first phase of the development, to include a medical office building, parking lot, infrastructure and road improvements.

In a TIF, the assessed land value is frozen when the district is established, with revenue created by new development going into a TIF fund to be used for improvements or tax rebates to developers within the TIF district for up to 23 years.

The various taxing bodies continue to receive the same tax revenue they received before the TIF was created, but usually not any of the new revenue until the TIF expires.

Ald. Knaack said he now supports the Genesis TIF because his questions were answered.He said he does not believe Genesis is asking the TIF to lower the lease rate it will charge its tenants, but to help with infrastructure and other allowable costs.

Ald. Knaack said the first building will hold medical offices for doctors now practicing in the Illinois Quad-Cities, but also will have space for, and facilitate, new doctors moving to the area.

Ald. Knaack saidGenesis Medical Center officials told him that, without the TIF, it likely would erect the first building it has planned, but may not build the rest of the medical campus and might sell the remaining land.If the city establishes a TIF, Ald. Knaack said, the city council would have control over the future development of the property.

"From the questions I asked ... (Genesis) wants to develop the property, sees a need for a medical park and a future for other projects they have in mind," Ald. Knaack said."But if not for TIF, future development may not occur."

The city council alsoheard first readings of ordinances that, if passed by the city council later this month, would create TIFs for SouthPark Mall and 42 acres at U.S. 6 and 150.

The city and SouthPark Mall owner Macerich Co. have discussed possible property improvements at the mall. The proposed 121-acre TIF does not include outlots recently developed or redeveloped

The proposed TIF at U.S. 6 and 150 includes the former Horace Mann Elementary School -- north of U.S. 6 -- and three parcels east of U.S. 150 owned by Miller Leasing LLC. City staffers have said the TIF would not include property where Miller formally proposed a concrete recycling plant. The land owned by Miller Leasing is property planned for retail or commercial development.

In other business, the council:

-- Approved a one-year extension to city administrator Lew Steinbrecher's contract, to Nov. 30, 2013, and gave him a 4 percent raise. Mr. Steinbrecher will be paid a salary of $148,174 and the city will contribute $15,672 into his retirement account. His total income from the city will increase from $157,544 to $163,846.

-- Voted to increase the sanitation fee from $7.56 to $8.61 per month. Without the increase, the 2013 sanitation fund was projected to have a $187,495 deficit.

-- Heard a first reading of the tax levy ordinance. It is proposed Moline levy $14.6 million in property taxes to support the proposed $130.6 million Fiscal 2013 budget. While the proposed levy is the same as this year, city staffers have said the property tax rate likely will increase from $1.97 per $100 of assessed value to $2.01 because the city's total equalized assessed valuation is expected to decrease next year.


Local events heading

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