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Tuesday, September 16, 2008 9:03 PM CDT
OUR VIEW: We'll getting more bang for our buck from this deal
By the JG/T-C Editorial Board editorial@jg-tc.com
Infrastructure, location, visibility, heavy traffic at the I-57/Illinois Route 16 intersection = prime business development.
Commercial development on the west side of the interstate and Illinois Route 16 erupted decades after construction of the two highways. Prior to that the land knew only corn and soybeans.
In recent years, shopping centers, motels, restaurants, and other businesses have proliferated on the west side. Development on the west side is expected to continue at a rapid pace.
In 2006, the city created the tax increment finance (TIF) district on the east side of I-57. The Mattoon City Council voted Sept. 2 of this year to create the I-57 East Business District. It slightly overlaps the TIF district.
The boundaries of the two districts extend north from the bicycle trail to a point south of Illinois Route 16. From west to east, the boundary extends from the interstate to the Lerna Road.
The TIF district will provide revenue for development work in the 300-acre site by setting aside property tax increases over 20 years. This is based on property tax assessments from the opening year of the TIF.
The I-57 East Business District will generate funds through a 1-percent municipal retailers’ occupation business tax, business district service occupation tax and hotel operator’s occupation tax.
Money from the TIF district and the mix of taxes for the I-57 East Business District will also allow the development of sewer and water lines and other infrastructure — infrastructure the city would not be able to finance on its own — in the 300-acre area.
Commercial development of the area around the I-57/Illinois Route 16 will benefit the city. Property tax revenues will increase in proportion to the rapidity of business development in the TIF district.
Increasing the municipal retailers’ occupation business tax, the business district service occupation tax and hotel operators’ occupation tax will boomerang to the city’s benefit as commercial development accelerates.
The reasons for commercial development of the area around I-57 and Illinois Route 16 will multiply as new businesses continue to sprout on the west side of I-57.
What can happen here is what we’ve seen happen around I-74 and I-57 in Champaign-Urbana, and I-57 and I-70 in Effingham.
We’ve got Eastern Illinois University and Lake Land College, companies like Consolidated and Donnelley, excellent public school systems, and a healthy mixture of other businesses and industry. The more commercial development we create around I-57/Illinois Route 16, the greater the draw for travelers and businesses.
We think investing in the development of the new business district and expansion of the city’s infrastructure makes sense.
We’ll be getting more bang for the buck.
Ronald Reagan, long before he was president, said it in another way in General Electric TV commercials: “Progress is our most important product.”
— JG/T-C Editorial Board.
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Raptor wrote on Sep 10, 2008 9:58 AM:
Creating and operating businesses is the life blood of a community. As we move in this direction I would like to encourage involvement in the local Junior Achievement programs.
Our children are the entrepreneurs who will own or operate these businesses. Let's continue to foster positive experiences to fulfill this vision. "