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Village of Rochester, Illinois Tax Increment Financing

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Village of Rochester, Illinois Tax Increment Financing VILLAGE OF ROCHESTER, ILLINOIS TAX INCREMENT FINANCING (TIF) DISTRICT I REDEVELOPMENT AREA, PLAN & PROJECTS “THE NEXT STEP TOWARD ECONOMIC EXPANSION AND GROWTH” Prepared for Village of Rochester 1 Community Drive P.O. Box 618 Rochester, Illinois 62563 Prepared by Jacob & Klein, Ltd. and The Economic Development Group, Ltd. 1701 Clearwater Avenue Bloomington, IL 61704 www.tifillinois.com MARCH - 2017 © 2017 Jacob & Klein, Ltd. and The Economic Development Group, Ltd. All rights reserved. Jacob & Klein, Ltd. and The Economic Development Group, Ltd., gratefully acknowledge assistance from Sangamon County and Village of Rochester government officials, business leaders and residents who contributed their time toward the creation of this Rochester TIF District I Redevelopment Area, Plan and Projects. This redevelopment plan is also the result of collaborative efforts and consultations by and between the Village of Rochester. Additional information about Tax Increment Financing may be obtained by contacting Jacob & Klein, Ltd. and The Economic Development Group, Ltd., 1701 Clearwater Avenue, Bloomington, IL 61704 (Ph: 309/664-7777). Specific inquiries about Rochester TIF District I should be directed to Ms. Deb Elderton, Village Manager, Village of Rochester, 1 Community Drive, P.O. Box 618, Rochester, IL 62563 (Ph: 217/498-7192). Rochester Tax Increment Financing District I Redevelopment Area, Plan and Projects March - 2017 A variety of policies, programs, and strategies are often used to promote economic development in a community. The most effective program is Tax Increment Financing (“TIF”) with over 1,300 TIF Districts in Illinois. This Redevelopment Plan provides a comprehensive and detailed discussion of the uses, structure, and impacts of tax increment financing in Rochester, Illinois. The Village Board has concluded that it is in the best interest of the Village and that the citizens of Rochester will benefit by the adoption of this Rochester Tax Increment Financing District I Redevelopment Area, Plan and Projects. (This page is intentionally blank.) CONTENTS SECTION I. INTRODUCTION Background Information..................................................................................................................... 1 Recent Trends and Conditions ........................................................................................................... 3 Unemployment ............................................................................................................................... 3 Population ........................................................................................................................................ 4 Retail Trade ..................................................................................................................................... 5 SECTION II. REDEVELOPMENT GOALS AND OBJECTIVES Redevelopment Goals and Objectives .............................................................................................. 6 Planning Process and Calendar .......................................................................................................... 7 SECTION III. DESCRIPTION AND QUALIFYING CHARACTERISTICS OF REDEVELOPMENT PROJECT AREA Description of Redevelopment Project Area ................................................................................... 9 Qualifying Characteristics of Redevelopment Project Area ........................................................... 9 Improved Parcels .......................................................................................................................... 10 Vacant Parcels ............................................................................................................................... 11 Equalized Assessed Valuation (EAV) of Redevelopment Project Area ............................... 12 Summary of Qualification Findings ................................................................................................. 13 SECTION IV. ANTICIPATED PUBLIC AND PRIVATE PROJECTS FOR REDEVELOPMENT PROJECT AREA Public Redevelopment Projects ....................................................................................................... 14 Private Redevelopment Projects ...................................................................................................... 16 SECTION V. SOURCES OF FUNDS TO PAY TIF ELIGIBLE PROJECT COSTS Sources of Funds to Pay TIF Eligible Project Costs .................................................................... 21 TIF Financing Summary ................................................................................................................... 22 Present and Projected Tax Increment ............................................................................................. 23 Assessment of Financial Impact ...................................................................................................... 24 SECTION VI. OTHER STATUTORY REQUIREMENTS ........................................................ 26 SECTION VII. CONCLUSION ............................................................................................................. 27 SECTION VIII. EXHIBITS .................................................................................................................... 29 Exhibit 1. Rochester TIF District I Boundary Map ................................................................... 31 Exhibit 2. Rochester TIF District I Legal Description .............................................................. 33 Exhibit 3. Certified Engineer’s Opinion Drainage and Flooding Conditions of Vacant Lands .............................................. 39 Exhibit 4. Inducement Resolutions .............................................................................................. 41 Exhibit 5. Example TIF District Projections .............................................................................. 43 SECTION IX. APPENDICES ................................................................................................................ 45 Appendix A. Village of Rochester Comprehensive Plan ........................................................... 47 Appendix B. Tax Increment Financing Terms and Definitions .............................................. 49 Appendix C. Introduction to Tax Increment Financing ........................................................... 57 Appendix D. Annexations .............................................................................................................. 61 (This page is intentionally blank) VILLAGE OF ROCHESTER, ILLINOIS ROCHESTER TAX INCREMENT FINANCING (TIF) DISTRICT I REDEVELOPMENT AREA, PLAN & PROJECTS SECTION I. INTRODUCTION Background Information The Village of Rochester (current pop. 3,689) is located in Central Illinois in Sangamon County, Illinois, approximately six miles southeast of Springfield, Illinois (pop. 116,250). Rochester is situated along Illinois Rt. 29, which intersects with Interstate 55 at Springfield. Another nearby city, Decatur, Illinois (pop. 76,122), is located approximately 34 miles to the northeast of Rochester (see Figure 1 below). Figure 1. Location of Rochester, Illinois. The Township of Rochester was first settled in 1818. The lands on which the Village was originally located were first owned by Archibald and Robert Sattley. They transferred the lands to L.V. Hollenbeck, who along with his three brothers, came to what is now Rochester Township in 1829 or 1830. Upon arriving, L.V. Hollenbeck constructed a corn-mill and distillery, which was located at the north end of Water Street. On December 16, 1831, the Town of Rochester was surveyed and platted by James Gregory, Esq. The Town of Rochester was later incorporated on February 1, 1869. Then, on June 3, 1873, the organization of the Town of Rochester was changed to that of the Village of Rochester under a provision of the general incorporation act of 1872, entitled “An act to provide for Village of Rochester TIF District I Redevelopment Area, Plan & Projects Page 1 the incorporation of cities and villages, approved April 10, 1872; in force July 1st, 1872.” The Certificate of Incorporation was issued by the Secretary of State on March 12, 1874. The topography is more diverse within the vicinity of the Village of Rochester than is typical of other Midwestern prairie, largely due to nearby streams. Elevations typically range from 550 to 570 feet above sea level. The Black Branch of the South Fork of the Sangamon River flows through the Village of Rochester as well as a flood plain of the South Fork of the Sangamon River to the west of Rochester. Both the Black Ranch and the flood plain present obstacles for roadway connections and present other impediments for development throughout the surrounding areas. As reported in the Village of Rochester Comprehensive Plan that was adopted in 2011 (see Appendix A), Rochester is generally classified as a bedroom community. Based on U.S. Census Bureau data from 1990 and 2000, approximately 90 percent of Rochester residents commute outside of the Village for employment. However, according to Applied Geographic Solutions, the Village of Rochester hosted one hundred (100) businesses in 2008 that employed an estimated seven hundred eighty six (786) persons. The Figure 2. The two‐story building on the left was called the service sector, which includes Rochester Twist Building, after a private telephone company which Community Unit School District #3A, is occupied the top floor.
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