Naperville revising food, beverage tax

Naperville still has work to do on a proposed food and beverage tax in the downtown area to help pay for parking deck projects.

The city council tabled the proposal Tuesday in order to continue working out details including how much to tax, how long the tax would be in effect and what restaurants it would affect.

The plan currently calls for restaurant and bar patrons to pay an additional 1.5 percent tax on top of the existing 1 percent that would last for up to 20 years.

The tax will help fund three parking projects that will add 1,000 more parking spaces downtown. A 317-space addition to the Van Buren deck is already under way. The plans also include a new 557-space deck on Water Street and a 520-space facility at the Nichols Library.

In addition to the proposed food and beverage tax, these decks will also be funded through the city and developers.

However some councilmen suggested making it a 2 percent tax for up to 25 years to ensure there is enough revenue for future parking deck needs. Others said the boundaries of the area affected by the tax need to be redrawn.

In order to enact the tax, the council will need the approval of at least 75 percent of the restaurant operators that will be affected.

But Jim Bergeron, chairman of the Downtown Naperville Alliance, said that while the group supports the concept, it has some concerns about the latest draft of the proposal. Restaurant owners would like the tax repealed if the city imposes a downtown parking fee.

"It' s not an attempt to get out of the tax, it's an attempt to make sure we're continuing looking at this as a comprehensive funding mechanism," Bergeron said.

The city has included provisions in its draft ordinance to adjust the food and beverage tax accordingly if it imposes a parking fee or citywide sales tax but does not repeal it.

Councilman James Boyajian said it is not the city's intent to collect a double tax.

"But a termination clause is not fiscally smart," he said. "What we're attempting to do is link the cost of 1,000 spaces with a revenue stream and go out and bond that accordingly."

The council will take up the issue again at its March 18 meeting. If approved, the new tax could go into effect this spring.