Teutopolis Village Board members faced a volley of questions on a proposed Tax Increment District for a new southwest subdivision.
The Sept. 2 public hearing drew about 16 residents to Village Hall, with several questioning the commitment to providing infrastructure for a third TIF district as existing neighborhoods need immediate attention for fixing problems.
The hearing lasted almost one hour prior to the regular board meeting, had Trustees and their TIF adviser justifying the effort and explaining how the village has been working to fix water and storm sewers, roads, sidewalks plus various infrastructure issues. The hearing is part of a long process for establishing a new TIF, if approved, would be located on the southwest edge of the community. The village will purchase land for the new TIF with negotiations proceeding with three landowners at this time.
The village invested in the Prairieview subdivision with a TIF two decades ago to address declining enrollment in the Teutopolis school district, Mayor Dave Repking said.
“People were finding it hard to buy lots in town. Many were interested in a new subdivision so they could build here,” Trustee Dave Tegeler said referring to a past survey on housing.
Creation of the TIF district on the south edge of the village offered property lots for a fraction of the going rate for lots in town and a financial mechanism for paying for new streets, sidewalks, street lighting, sewer and water lines for the subdivision. The TIF option also bypassed the problem of village property owners unwilling to sell lots. “They didn’t want houses built close to them,” Tegeler said.
Prairieview has proved a success with dozens of houses built there and the sale of the final housing lot pending. This has added more families to the village, more students to the school district and more property tax money due to the residential development of what was once farmland. When new homes in the TIF are added to the tax rolls the property tax money is set aside to pay for money previously borrowed for the subdivision infrastructure. A local review board determines how TIF money is distributed, adhering to state law. The tax money can be spent outside the TIF district if the use is considered to have an impact on the district.
The new subdivision will require a $7.5 million investment by the village. TIF money from Prairieview tax receipts will help with that cost. The village can also borrow money from the westside industrial park TIF district. Adam Shaw, TIF adviser to Teutopolis, said that transfer process is known as “porting.”
Nicolle Zerrusen questioned why TIF 3 is needed now that school enrollment has increased. She noted flooding after storms in her neighborhood, unsafe walking routes for children, lack of sanitary sewer service to existing homes in the village and other issues the board should fix.
“I hope you take care of the areas around it before you commit to a new TIF,” said Zerrusen, who lives on the southwest corner of the village.
Martin “Sonny” Hutmacher criticized the past housing survey because the village did not offer help to people willing to build on existing private lots at that time. He also opposed the TIF process that places the final decision in the hands of village board members.
“Float a bond issue and let the people decide on this not just six people,” Hutmacher said.
Other residents questioned whether the village could afford establishing a new subdivision while offering TIF money to the Unit 50 school district through a proposed intergovernmental agreement. There were additional complaints about issues ranging from flooding along a railroad ditch to higher park district participation fees.
Mayor Repking said the village has been working to fix multiple problems in the village but has been blocked mainly through lack of money and how the wheels of state and federal government turn very slowly on financing. For example, securing money through the Safe Route to Schools program has been a multi-year effort. Gaining finances for replacing aging underground cast iron piping has been frustrating for decades.
Some progress has been made this summer with major road improvements along Harvester Street and other streets. The recent widening of Oak Street by Teutopolis Grade School has improved traffic flow at the start and end of school days.
This month the village is again using underground camera equipment and smoke to detect leaks in underground piping. And an extensive sidewalk replacement along East Main Street should fix flooding and mud built-up due to sinking concrete slabs.
Tegeler said the TIF 3 will benefit the community in the long run with a larger property tax base, money to help the schools and more residents living in the village. Trustee Rachel Collins said the Teutopolis comprehensive plan is for continued growth for the village.
Yet, several residents fear the village board might be biting off more than it can chew financially with another TIF district for housing.