QUINCY – A $ 500,000 dollar pledge in tax increase funding for the renovation of the former Illinois State Bank building at 531 Hampshire was authorized by Quincy City Council on Monday.
Developers Ryan Jude Tanner and Jay Krottinger plan to convert the building into a boutique hotel with 25 to 30 rooms and a restaurant area on the first floor.
Quincy’s director of planning and development, Chuck Bevelheimer, said TIF’s involvement in a development project typically accounts for 20-25% of the total project costs. However, the city would only incur 5% of the cost of renovating the hotel.
“Another thing that I think the board needs to be aware of is that our participation is only triggered when we issue a certificate of occupancy, so when the project is complete, and they allow for a two-year delay, we I’ll pay, ”says Bevelheimer.
Funding through tax increases works by capping the base value of a degraded area in a municipality. All property taxes collected on properties located in this development zone up to this base value are paid into the general city fund. Taxes collected above the capped value are placed in a special account reserved for economic development expenditure.
The council voted unopposed in favor of the expenses of the TIF.
Alderman Mike Farha, R-4, who voted in attendance, said that while the project is noble, the private market should determine if it goes ahead. He added that as a public-private partnership, the public invests taxpayer money through TIF without any guarantee of return.
“I know you’re going to say that we potentially get more tax revenue from it, but that’s questionable,” Farha told Bevelheimer. “And my concern is what do we say to the big investors who get nothing who build structures of 10 (million), 20 (million) and 30 million dollars and get absolutely nothing?”
Quincy Mayor Mike Troup said he supports the project and believes it will be linked to the city’s plans for the Sixth Street promenade.
“This building has been vacant for several years, the current owner really has no interest or ability to do anything with it and I think this is a great opportunity,” said Troup.