St. Charles signals support for another TIF district for 7th Street property

St. Charles aldermen are considering reviving a tax increment financing district to help develop a long-shuttered manufacturing site.

Aldermen signaled support for bringing back the 7th Street TIF for the former Applied Composites site, which has been vacant for more than 20 years.

Pulte Group, a national homebuilder, recently presented concept plans for a residential development that would include 92 single-family homes and 12 townhouses on the 28-acre parcel located off 7th Street and north of State Street.

“It’s really a great opportunity to get this developed,” said Alderwoman Vicki Spellman, whose ward includes the property.

The city previously established a tax increment financing district for the property in 2013, when another developer proposed a housing development for the site. The TIF, however, expired after no activity happened on the property for seven years.

“No developer is going to come,” Deputy City Administrator Derek Conley told council members during a July 6 committee of the whole meeting. “A TIF is absolutely necessary.”

TIF districts are established to spur development by freezing property taxes paid to taxing bodies when the district is created. Taxes generated by the increased property value from the new development, or increment, go to a separate fund to help cover eligible expenses for the redevelopment of the property.

Aldermen expressed support for establishing a new TIF district for the property to aid in redevelopment. Later this month, the city council is expected to approve a $35,000 contract with a consultant who will prepare a report necessary to establish the TIF district.

The study, which will include public hearings, is expected to take about six months before the city council can vote on the matter, Deputy City Administrator Derek Conley said.

“(Pulte) needs to know the TIF is in place before moving forward,” Conley said.

Pulte has said it would cover environmental cleanup and costs associated with removing concrete foundations on the property. However, it wants the city to relocate city-owned electrical infrastructure off the property, Conley said.

That project, estimated to cost under $3 million, could be covered by money generated by a TIF district, Conley said. He estimated those funds could be recovered from the TIF district within three to four years.

A previous developer requested $5.6 million in TIF funds to help make its project viable, Conley noted.

A representative for Pulte declined to comment, saying it was too early in the project.