The Macomb city council will be asked early next month to approve creation of a business development district that city leaders say will spur economic development.
The proposed district focuses on commercial corridors such as Jackson Street all the way through town, North Lafayette Street, the courthouse square, and small portions of Washington and Carroll streets.
A map and other information about the district can be found on the city of Macomb website.
The city council held a public hearing and first reading of the ordinance to create the district during its meeting this week, and it’s scheduled for discussion during the Aug. 25 committee of the whole meeting.
The council will vote on it Sept. 2.
As part of the plan, the city would impose a retailers’ occupation tax, a service occupation tax, and hotel operators’ occupation tax within the district. Each would be for one-percent.
Anything that’s titled, such as cars and boats, would be exempt from the sales tax, as would groceries and prescription medicines.
The tax would generate an estimated $2 million annually to be reinvested in projects within the district, including private developments. Eligible costs for business district funds include site preparation, infrastructure improvements, renovations, and new construction.
“The business district is one tool in your toolbox to help contribute towards making these things happen,” Steve Kline of Jacob & Klein, Ltd. told the city council.
“In essence, by utilizing this type of tool, you’re importing dollars, revenues from outside of Macomb that will largely help grow the fund and help pay for a lot of these projects that you hope to undertake.”
The business district would be in place for 23 years.
Mayor Mike Inman said the revenue generated could be used to help pay for construction of a sports complex if the city decides to proceed with that project.
“But even if we decide not to do that, we’ll have a mechanism that will be in place, very strongly in place, to encourage the continued redevelopment of that district,” Inman said.
He emphasized the tax is on sales and is not a property tax.
The city needs to submit the approved ordinance to the Illinois Department of Revenue by Oct. 1 in order to have the tax in place on Jan. 1.
The revenue department will collect the retail and service taxes and distribute that revenue to the city.
The city will collect the hotel tax.
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