Wheaton group gets funding, deal extension

A deal between the city of Wheaton and the Downtown Wheaton Association that helps fund the group was extended through next fiscal year to ensure that the group would have the money it needs to operate at least through the end of this year. However, because of a set expiration date of the pact, the days of the deal and special service area created by the deal appear to be numbered.

At a meeting Tuesday, the city council approved the extension through April 30, 2012, and also agreed to a request for $230,000 in special tax district money to help cover operating expenses.

“If there are future levy needs (for the group), there would have to be another special service area created,” said City Manager Don Rose, who said that would likely include a public hearing process.

The special service area in downtown Wheaton was created in 2004. At the time, the council set April 30, 2011, as the expiration date. However, because of timing issues, the group requested an extension through the end of the year and requested the money for operations.

A request of an additional $60,000 for brick-and-mortar projects, a downtown consultant and a fine arts fair will be undertaken during the city’s budget process, Rose said.

The group is composed of downtown business owners who pay an additional tax of 95 cents per $100 of equalized assessed value of their property. That money is stored in an escrow fund and given back to the Downtown Wheaton Association, which then decides where to target the money.

The funding model for the group has come under fire with councilman Phil Suess saying in January that it should rely more heavily on private donations. However, city officials on Tuesday repeated their support of the group’s mission. Ultimately, they said, if the property owners wanted to disband the special service area, it would be up to them to do so.

Councilman John Prendiville, who is challenging Mayor Mike Gresk in April’s election, said the fact that the special service area lies within a tax increment finance district complicates things, as any additional money from increased property values must be reinvested for specific uses within the TIF. However, he said the group should continue as long as the business owners downtown want it around.

“The DWA performs an essential function for downtown,” said Councilman John Prendiville. “But I agree there are problems. A lot of the money goes to the TIF. But those circumstances should not mean we cut off DWA funding.”

“It’s self-determination,” he said. “The business owners came to us and said we want the special service area.”

Gresk agreed with Prendiville and said he hoped the business owners continued with the tax district.

“The DWA was started by the landowners in downtown,” he said. “If they want to renew it, that’s great. It is still useful and still viable. However, if the taxpayers in downtown think otherwise, then it’s time for them to say that.”