City asks other entities to support TIF extension

Vandalia officials gathered representatives of local taxing entities last Wednesday to ask for their support as the city seeks an extension on the life of one of two Tax Increment Financing districts.

At that meeting, state Rep. Blaine Wilhour (R-Beecher City) said that while he will support that request in the Illinois General Assembly, he would like to see some fine-tuning on how the TIF program is operated locally.
Attending that meeting were representatives of Vandalia Township, Fayette County Hospital District Board, Fayette County Mosquito Abatement District, Evans Public Library District, Vandalia Park District, Kaskaskia College, Fayette County Board and Vandalia School District.
Amber Daulbaugh, the city’s TIF administrator, explained to those representatives that the city’s TIF I District, which was designated in 1999, expires in on Dec. 31, 2022 and that the city wants to extend the life of that district to Dec. 31, 2024.
As part of the city’s efforts, its TIF attorney, Kathleen Field Orr, suggested that the city obtain letters of support and/or a resolution from each tax district in the TIF district after Octochem expressed an interest in an expansion creating 40-50 jobs.
The city’s request, along with the letters of support, will be presented to local legislators prior to the fall veto session and ask that they support the extension request in the General Assembly.
Daulbaugh said that the TIF issue “kind of got muddled with a lot of people having an issue with how the city runs TIF.
“We can talk through all of that,” she said. “The long and short of it is that the extension is going to put us in a position in TIF to continue to development on properties that need attention downtown.”
She said that there have been requests from taxing districts, including being part of meetings in which they could hear about proposed TIF projects and limiting certain percentages on TIF awards.
Daulbaugh said that progress can be made to accommodate those requests, but for the time being, the city wanted to receive letters of support.
“That’s what I need to know now,” she said. “I need to let Mark (Langston) and Denny (Grant) (of Octochem) know that.”
Asked by Jessica Blain, Evans Library librarian, the chances that the request for an extension would be denied, Wilhour said that while that it could happen, “they (General Assembly) do this stuff all of the time.”
Wilhour said that while he can support TIF, he feels the entities involved in need to work on better operation of the program.
As an example, he said that he does not support the current TIF agreement through which Octochem receives 90-percent reimbursement on new property taxes it generates.
Daulbaugh said that since 2012, Octochem has received $332,840.27 through that agreement.
With this extension being discussed, Wilhour said, “I view this as an opportunity for everybody, the city, the school district, the developer” to look at improving the program.
“Baiscally, what we’re talking about is accountability, primarily for the taxpayers,” Wilhour said.
“We’re setting a precedent. I think we’re going to have to lay down some ground rules, to make sure there are economic multipliers, such as job creation,” he said
Those who receive TIF benefits, Wilhour said, need to produce benefits as a result of those benefits.
“That’s fair to taxpayers, that’s fair to everybody else, so we’re using this TIF money effectively. I want to see specific criteria on who we give money to,” he said.
“We just want to take this opportunity to dial it in a little bit,” Wilhour said. “Taxpayers demand it.”

Amber Daulbaugh (left), the city of Vandalia’s TIF administrator, talks with representatives of local taxing entities about the city’s request to extend the life of its TIF I District during a meeting last Wednesday at Vandalia City Hall.