Downtown Wheaton group pitches new taxing district

The Downtown Wheaton Association on Monday took a first step toward what it hopes is the eventual creation of a new special service area that would provide the money it needs to survive. However, first it must answer several questions posed by the city council about its operations and whether the taxing district is the best way to pay for it.

The group's president, Keven Graham, said it is imperative that his group exist because of the services it provides the city.

“Our goal is to work and craft some mechanism and continue providing the benefits, promotions and activities in downtown Wheaton,” he said. “We want to work with the city to craft that and bring everyone together.”

At a planning session, Graham held what he called “very early” discussions with the city council hoping to work toward an agreement that would replace an expiring taxing district. Without it, the group would most likely dissolve when the current agreement expires April 30, 2012.

Graham said the group wanted to begin discussions early to gauge the city council's thoughts before taking a proposal to its members, who would have to approve it.

The initial idea includes lowering the tax imposed on the group's members from 95 cents per $100 of equalized assessed value to 45 cents. To make up the difference, the association asked that the city no longer capture revenue from property value increases in a tax increment financed fund and instead divert the money to the group.

As it stands, the annual budget for the downtown group remains stagnant from year to year because most of the properties lie within one of the city's three TIF districts. Because of this, the money it receives from the special service area each year is based upon a fixed value.

Any money generated from property tax increases are diverted into the TIF fund, which by law must be reinvested within the TIF district. Graham wants the city to instead give that money to the DWA, to make up for the smaller tax levy.

City Councilman Phil Suess suggested somehow funding the entire DWA budget through TIF money. However, city officials said that would not be possible because the functions of the DWA, primarily marketing and promotions, are not allowed under TIF rules but are one notable exception that is permitted only if a special service area were created.

Additionally, Graham came under fire when a map that could potentially be the special service area — and drawn by the group — included some not-for-profit properties, such as a parking lot at St. Michael's Church.

The city council will not vote on a new special service area until the DWA comes to it with an official proposal, likely later this year, and only if a majority of property owners within the special service area's boundaries give the OK.