The Macomb city council voted 7-0 to approve creation of a business development district.
“This is a way for us to make sure that Macomb is moving forward,” said second ward city council member John Vigezzi. “The funds that are coming in will help us bring in more stores like TJ Maxx.”
The district includes 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.
City leaders believe the district will spur economic development and help them address blighted areas.
“Think of the empty lots. Think of the places that we need to improve things. There’s lots of things that can be done,” said City Administrator Scott Coker. “The city does not want to compete with businesses, but we want to help businesses to bring more people and better employment.”
Coker said nearby communities that already have some form of a business development district include Monmouth, Quincy, Canton, Havana, Peoria, East Peoria, and Pekin.
As part of the plan, the city will impose a retailers’ occupation tax, a service occupation tax, and hotel operators’ occupation tax within the district. Each of those taxes is for one-percent.
Anything that’s titled, such as cars and boats, will be exempt from the sales tax, as will groceries and prescription and non-prescription medicines.
The city estimates the tax will generate $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.
Existing and new businesses are eligible to receive funds through the district.
“We can make things work better for people who are already here in existence, while going out to find new and different shopping experiences that bring people in and funnel them to your businesses,” said fourth ward city council member Dave Dorsett.
He called it an investment in today’s business community in Macomb.
Two Macomb residents addressed city council members before they voted.
Canaan Albright said he supports the possible improvements that could come to the district.
“Façade improvements, grants or loans for local businesses, support for major community projects, maybe improving Jackson Street’s ADA compliance,” Albright said.
He said he had a few reservations about the district, such as with its 23-year length, but he said that overall it will be good for Macomb.
Ian Nelson, one of the owners of Nelson’s Clothing on the courthouse square, spoke against the district.
“I believe this additional proposed tax to be yet another deterrent for consumers to shop in our area,” Nelson said. “It’s negative press I believe, too, to increase the sales tax right now when we already have enough negativity locally.”
He said the tax will give Macomb a higher sales tax rate than what’s assessed in Quincy, which he called a local competitor “who takes a lot of business from us, a lot of big retailers.”
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, so it will be several months after Jan. 1 before the city starts receiving that income.
The city will collect the hotel tax.
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