The Village Board Monday decided to spend $12,000 to have the village's financial consultant, Ehlers & Associates Inc., amend two tax incremental finance districts in the municipality.
Village administrator Mike Gracz said there were a few reasons to amend TIF District 2 and TIF District 3. In TIF 3, the description of the installation of a bicycle/pedestrian path included the entire 4,400-foot path from the west side to Jaycee Park on the east side, but "for the costs we only included the costs from Jaycee Park to the railroad corridor."
He said changing the language in the document would allow the village to use TIF money to help cover the cost of building the path.
Also, increments from TIF 3 in downtown Oregon has been already promised to Gorman & Co. for its renovation of the former Red Brick School. By amending the two TIF Districts, "we can do revenue sharing between TIF 2 and TIF 3," Gracz told trustees Monday.
"You can use the power you built up in TIF 2 to cover a shortfall in TIF 3," explained Jim Mann of Ehlers & Associates.
Gracz said village officials were planning to amend TIF 3 last year but got side tracked in dealing with flooding issues and the downtown construction project.
He said amending the TIF Districts would also allow the village to help pay the debt service costs for borrowing to finance the downtown construction, thereby lessening the potential burden for taxpayers. The village borrowed about $5 million to fund the construction project.
Mann said village officials are not seeking to add more territory to the TIF districts, but "broaden the scope of some projects. It's virtually the same as creating a new district."
The village would still have to prove to a Joint Review Board that amending the districts is required in order for certain projects to be accomplished. Mann said amending the districts is a four-phase effort, and the village retains the right to withdraw from the contract at completion of any of the phases.
