Granite City approves eligible TIF funds to Quadrant for infrastructure projects
February 7, 2009
Land acquisition and environmental studies on 37 acres on Illinois Route 3 have been completed by Quadrant Properties, of St. Louis, likely leading the way for the construction of a $38 million commercial project.
At Tuesday's Granite City Council meeting, aldermen approved eventual payment of $1.1 million in eligible Illinois Route 3 Tax Increment Financing funds to Quadrant for the studies. Quadrant will develop the site for outlot shops that it will lease.
Quadrant is eligible for up to $7.1 million in the tax increment financing funds for infrastructure work due to a redevelopment agreement between the city and Quadrant that was finalized in October 2008. Land acquisition and environmental studies are considered infrastructure projects, City Comptroller Scott Oney said. Oney pointed out Friday that Quadrant will not receive the TIF funds until property taxes from the commercial site, to be named Gateway Village Shopping Center, are generated.
As part of the redevelopment agreement, Quadrant will receive 70 percent of property taxes generated by the TIF district - up to $7.1 million. The city will initially receive 30 percent of the TIF funds, then 100 percent of the money after Quadrant hits the $7.1 million mark. City officials were not sure how long that would take. Quadrant officials could not be reached for comment prior to Friday's Press-Record deadline.
Economic Development Director Jon Ferry said he will meet with officials from Quadrant next week to get an update on Gateway Village. It's not clear how much more infrastructure work is needed for construction to begin. It is also not clear if the slumping economy will have an effect on the construction.
Gateway Village will abut Granite Park Village, south of Wal-Mart. Construction on the Lowe's Home Improvement store, the cornerstone project of Granite Park Village, will begin in April.
The tax increment financing district in which Gateway Village and Granite Park Village will be constructed expires in 2020. The TIF district stretches from Interstate 270 south to Capri Sun on Missouri Avenue.
D2 assisted this project through completion of the redevelopment plan and cost benefit analysis.
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