Council recommends cutting TIF request for proposed event center to 25 percent

Vandalia aldermen voted on to recommend half of the requested amount on the latest Tax Increment Financing grant application, with almost all of the discussion on the request coming after that vote.
Link Holdings has applied for a grant of 50 percent, or $53,900, for renovations to create an event center in its building at 1405 Veterans Ave., and aldermen voted to support a grant of 25 percent, or $26,950.
Brian Oberlink, who owns the property with his wife, Nancy, and Brandi Cripe, who plans to manage the event center for Link Holdings, described to aldermen briefly their plans for the use of TIF funds.
The grant funds would be used for construction, electrical and plumbing work in the building, according to the grant.
After that brief discussion, Alderman Andy Lester made a motion to recommend a 25-percent grant, with aldermen Mike Hobler, Joel Rebbe, B. John Clark, Ken Hubler, Steve Barker and Russ Stunkel all supporting that motion.
Then, after the vote, Cripe said, “Can I ask why 25 percent?”
Lester told her, “That’s just my opinion. A grant of 25 percent is a nice helping hand.
“That’s been my personal policy,” he said.
Stunkel and Barker also gave their reasons.
Stunkel said, “TIF is a great weapon to fight urban decay, but we have to make sure, as overseers, that we don’t spend too much in one place; you know, scatter it around.”
Barker said, “It’s a relatively new building, so you shouldn’t run into too many unforeseen problems.”
Brian Oberlink asked whether the council’s vote was weighed by a recent meeting during which the TIF program was discussed.
“The only issue I have with the 25 percent, I don’t know if that’s based on what happened at the last council meeting, with you guys getting blindsided with that little fiasco.
“You know, that building does bring in a lot of tax (dollars) on its own, and just from the past projects that have been going on, the percentage of this property tax versus this award of TIF … I mean, this thing is paying $25,000 year in property taxes, where some of these other projects are only paying $2,500.
“Then, they turn around and get $100,000 in TIF,” Oberlink said.
Lester agreed with Oberlink on some past issues.
“It’s true that we’ve been inconsistent about that,” Lester said. “We’re trying to become more consistent, but the property tax is going to continue as long as that building is standing, whether there’s something there or not,” he said.
“And, improvements to the building doesn’t raise the value to the building to the point that taxes are increased, so, therefore, a plus for the TIF,” Lester said.
Also, he said, TIF awards are also based on other factors, including job creation and sales tax generation.
When Oberlink noted that they have applied for a 50-percent grant, Lester said, “That’s another thing that we need to get changed – you’re not applying for a percent, it’s up to (a certain percent).
Stunkel agreed, saying that when considering a grant, the council “starts at zero and goes up.”
Barker added, “It’s up to the discretion of the council, the committee … it’s case by case.”
Cripe said that the event center can play a key role in the city’s tourism efforts, not just hosting such things as weddings and baby showers.
“It’s basically to make something in a small, small town to bring people from other places, which you then send them to local restaurants, you send them to hotels to stay,” she said.
“You’re going to try to get people who would stay (overnight), big organizations that are going to bring people from quite a distance who are going to use other things in our town,” Cripe said.
She said that through her job at the Fayette County Farm Bureau, she is able to reach out to more organizations that would use the center.
Also, she said, her father-in-law, Ken Cripe, is now on the Illinois Farm Bureau Board, and they can work at bringing some Farm Bureau events here that are now being held in areas further north.
Asked by Barker whether the project would be done with just a 25-percent grant, Oberlink said, “That’s where I’m at – we’ve struggled with our scenarios all along (and) there’s just so much unknown.
“We don’t know how many weddings, we don’t know how many other outside events” the center will host, he said.
While they have tried to keep their plans under wraps as much as possible, Oberlink said, “What rumor has gotten out, we’re getting a lot of inquiries.”
Cripe added that the center can help host events for schools who are going elsewhere and paying more.
She said that a teacher in Brownstown is wondering how they will be able to hold outside events at the estimates they are now getting.
“Our goal was to get to offer it to local schools at a complete fraction of the price to have a great prom,” Cripe said.
Cripe and Oberlink said that they plan to start with a limited staff of part-time workers, and Cripe explained that her plans are to have local businesses, such as restaurants that cater, “give their staffs the opportunity (for more work).”
Hobler said that after hearing more about their plans, he could change his vote.
“Personally, I don’t have an issue with going with a higher percentage but for the one fact that you’re offering something that Vandalia doesn’t have.
“I personally wouldn’t mind going further just to try to offer something that’s not available,” Hober said.
At that point, Clark wanted to end the discussion, with other aldermen agreeing.
“I’ve got one question – Why are we debating a decision that’s already been made?” Clark said.
Mayor Rick Gottman clarified that a final vote on their request wouldn’t come until the council meeting on May 15.
“At that point, if there’s a change in it, and the council changes their mind, it could be changed that night,” Gottman said.
Cripe said that she just wanted the opportunity to explain their plans more in depth, but Clark said, “You’ve got your answer. We gave you a decision tonight on this.”
Cripe said, “Nobody came here to be ugly.”
When she again said that just wanted more time to explain their plans, Clark said, “Then come to the next council meeting and explain that. That would be my suggestion.
“Before the vote, if you’ve got objections, that would be the time to do it, not tonight,” Clark said.
“I wasn’t trying to upset anybody – I wanted to explain every goal and ever step we have,” Cripe said.