Washington is making plans to join the crowd when it comes to creating a Business Development District [BDD].
Several area communities have the economic development tool in place. The list includes Peoria, Bartonville, Canton, Creve Coeur, East Peoria, Germantown Hills, Mackinaw, Morton, Pekin, Peoria Heights and Tremont.
"A BDD just like a TIF district [tax increment financing] district, except it's sales tax-based instead of property tax-based," said Washington City Administrator Jeff Fiegenschuh.
Each BDD has a sales tax attached to it, ranging from 0.25% to 1.0%, in 0.25% increments.
The sales tax is applied to most purchases within the district from brick-and-mortar retailers and on-line vendors. Food, drugs and titled items like vehicles are not subject to the sales tax.
Revenue from the sales tax can be used within the district for items like site preparation and acquisition, professional services, public infrastructure improvements, economic development initiatives, building rehabilitation and new building construction.
Washington's proposed BBD would be bounded roughly by Washington Plaza on the west and Wilmor Road on the east. A contiguous boundary is required in a BBD.
A 0.25% sales tax in Washington's proposed BBD, which would raise the total sales tax on purchases in the district to 9.25%, is estimated by city officials to generate about $700,000 annually.
The process of creating a BBD, which can be completed in 60-90 days, includes a public hearing.
A public hearing has been tentatively scheduled for 6:30 p.m. Sept. 8, prior to that night's Washington City Council meeting.
The council will vote Aug. 17 on formally scheduling that public hearing after having a first reading this week of an ordinance that sets the public hearing and approves the eventual creation of the BDD.
A BDD has a 23-year term, with a city having the option to end it at any time.
'Let's Talk' at legion hall
In other news from this week's meeting, including reports from department heads:
- The monthly "Let's Talk Washington" informal discussion session hosted by Mayor Lilija Stevens will be from 5:30-6:30 p.m. Aug. 11 at the American Legion Post 100 hall at 211 Legion Road. Police Chief Jeff Stevens, Fiegenschuh and Alderperson Jamie Smith will be there.
- The council awarded a nearly $230,000 contract to low bidder Walker Excavating of Peoria for the construction and extension of the sanitary sewer in Washington Plaza.
- The council approved vacating several platted streets and alleys near Lincoln Grade School that are now part of the school's footprint. Washington School District 52 now owns those parcels.
- Illinois American Water officials said during a meeting with City Engineer Dennis Carr and Fiegenschuh that the company's proposed rate increase pending before the Illinois Commerce Commission [ICC] does not involve its bulk water purchases from the city, only capital improvements. The city submitted a letter to the ICC on behalf of the Washington residents who would be impacted by the rate increase, expressing their concerns.
- Chief Stevens was elected vice chair of the Peoria Metropolitan Enforcement Group [PMEG], an agency that focuses on narcotics distribution, gun crimes and human trafficking enforcement in central Illinois.
- Washington Police Department officers Troi Westbrook and Dramane Taylor recertified as school resource officers, and Officer Mike Brown completed certification.
- City staff is continuing discussions with the Washington Fire Department to utilize fire department personnel for life safety plan reviews and inspections, which could slightly reduce the city's insurance premiums.
- The city's new JustFOIA public records request management system is scheduled to go live Aug. 17.
- A ribbon cutting and plaque dedication for the repaired historic Candlewood Bridge is scheduled for 10 a.m. Aug. 25.
