Businesses split on downtown Wheaton taxing district
Some downtown business and property owners say the Downtown Wheaton Association should just go away when a taxing district that funds the group expires at the end of the year.
Association officials, however, say they will try to replace Special Service Area 6 with a new taxing district that will have the same boundaries.
Downtown Wheaton Association President Derek Bromstead said the group brings value to downtown and members will have the ultimate say in whether they create the new district.
“They (downtown businesses) can opt out, it's a majority rule,” he said. “There is nothing I can say if 51 percent of the members say ‘No.' They do have a say.”
If the new service area is rejected, Bromstead said the downtown group most likely will dissolve. Some property owners say that might not be such a bad thing.
Right now, any property owner in the taxing district pays an additional 95 cents per $100 of equalized assessed value on top of the city's property tax levy. The tax serves as a sort of membership fee that mostly goes toward the association, which is charged with maintaining, managing and promoting downtown.
“It is a tax that I see minimal benefit for what it pays for,” said Glenn Kosirog, who owns an office building on the 200 block of West Wesley Street on the northern edge of the district. “I have to see some relief somewhere down the line.”
Kosirog said his taxes have more than tripled since the tax district was instituted in 2004 and he now pays more than $25,000 a year.
However, he said his main issue with the district is that it pays for the downtown group with very little accountability. He said the group's contention that its books are open holds little weight because only an outside auditor could determine unnecessary spending.
The group's expenses include about $120,000 in committee expenses, $46,000 in operating expenses and $87,000 in salaries and vacation pay. The expenses are almost completely supported by the city, which last month agreed to allocate $230,000 for the group.
“I'm not saying there is someone dishonest and these salaries might be legitimate,” Kosirog said. “But how do I know? Who justifies that salary? There has to be a comparison of what it costs to do the work.”
Kosirog was not alone in his criticism. Dan Cook owns two properties in the district that have nothing to do with business. But he still pays the taxes and says he just wants out.
Bromstead, who is seeking a seat on the Wheaton City Council in the April 5 election, said the majority of the business owners support the district.
In 2004, the city created the district at the behest of the Downtown Wheaton Association. That district was set to expire April 30 but the city granted a one-year extension. The extension allows the group to operate through the end of the next fiscal year and more closely aligns the group's fiscal year to the city's.
Bromstead said the group has been in existence under various names, such as Heart of the City, for nearly 20 years. He said the group will vote later this year to see if members support continuing the taxing district.
The district essentially runs from Wesley Street on the north to Illinois Street on the south, and West Street on the west to Naperville Road on the east. About 10 properties on the north side of Wesley and several along Front Street, west of West Street, also are included.
Last month, the city allocated $230,000 out of the special service fund to the group. An additional request for $60,000 for brick-and-mortar projects, a downtown consultant and a fine arts fair will have to go through the city's budget process.
Bromstead said the tax is similar to association fees paid by business owners in other shopping areas, such as Danada Square on the city's south side.
“There are objections but the people that see the value of the tax are those that recognize how well the DWA supports their businesses,” Bromstead said. “The businesses also see that there are a lot of services we are providing and special events. They see the value in that.”