Naperville moves closer to approving tax incentives to revitalize shopping centers
While several Naperville City Council members appear on board with two proposals to increase sales tax rates at multiple shopping centers to pay for site upgrades, one project has more support than the other.
The city council voted 8-1 this week to move ahead with a public hearing to consider the establishment of a business district at the Eagle Crest shopping center, at the southwest corner of East Chicago Avenue and Olesen Drive. Approving a business district would allow a half-percentage point sales tax increase on purchases made at the strip mall for up to 23 years, with a maximum amount of $4.4 million to be collected.
The money would pay for infrastructure upgrades and to alleviate flooding issues in the area. Heinen's, an Ohio-based grocery chain with several suburban locations, would move into the vacant Butera space.
With much less support at Tuesday's meeting, a similar business district plan advanced for the Westridge Court and Heritage Square shopping centers on Route 59, between West Jefferson and Aurora avenues. The city council will consider the proposal based on a 5-4 vote, with the dissenters saying a sales tax increase for that site wouldn't assist the public good.
"Hopefully, we can move that up a little bit," Naperville Mayor Steve Chirico said of the split vote. "And when it comes back, we can answer some of those questions and get a couple more of the council members on board."
Chirico and other supporters of the Route 59 plan said this step is necessary to keep the shopping centers viable, and the 1-point increase to a 1.75% home-rule sales tax rate for the affected businesses would still keeps the rate on par with nearby Aurora.
They also said the designation of a business district at the Route 59 shopping centers would benefit Indian Prairie Unit District 204 by generating additional revenue for schools.
"The more businesses we can bring to our district, the greater our chance to reduce the funding disparity that is current within our district," District 204 Superintendent Adrian Talley wrote in a letter of support to the city council.
If approved for the Route 59 shopping centers, the sales tax increase would be in effect for up to 23 years with a maximum reimbursement amount of $20 million to pay for the removal of buildings that formerly housed big-box retail stores and to relocate water and utility lines.
Calling the tax increases "unconscionable" during a time of high inflation, Councilwoman Jennifer Bruzan Taylor voted against both proposals. Council members Ian Holzhauer, Patrick Kelly and Theresa Sullivan voted "no" on the Westridge Court and Heritage Square plan.
Both proposals will be voted on again at future meetings.
The council members opposing the Westridge Court and Heritage Square plan noted the difference from the Heinen project that would ease the flooding that affects much of the surrounding area. Similar public benefits, they said, are not evident along that stretch of Route 59.
"This one and others like it, I, in principle, don't have much appetite for," Sullivan said. "The minute we do this, everyone's going to want a business district. And, suddenly, we're raising taxes, but it's not for the public good."