ACTION REQUESTED:
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Communication from the City Manager and Corporation Counsel with a Request to ADOPT an ORDINANCE Levying a Special Service Area Real Estate Tax, in the Amount of $85,000.00, for the Tax Year 2019 for the WESTLAKE SPECIAL SERVICE AREA.
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BACKGROUND:
On July 13, 2010, the City Council created the Westlake Special Service Area for the purpose of renovating parking areas and making improvements to Rockwood Road and West Lake Avenue, as well as other reasonably contemplated improvements. This is the seventh year for such tax levy.
On June 24, 2014, the City Council established a Special Service Area Sales Tax pursuant to Ordinance No. 17,111, within the Westlake Special Service Area to generate sufficient funds to allow for additional improvements and a potential reduction of the real estate tax levy. Subsequently, on July 31, 2014, the Agreement between Westlake Limited Partnership and the City was amended to reflect the application of the Special Service Area Sales Tax pursuant to Ordinance No. 17,111, to the SSA financing for the Westlake Special Service Area.
On November 14, 2017, the Agreement between Westlake Limited Partnership and the City was again amended to reflect the application of the Special Service Area Sales Tax pursuant to Ordinance No. 17,111 to the SSA financing for the Westlake Special Service Area.
On October 29, 2019, Westlake Limited Partnership through Morton Community Bank (“Bank”) as holder of two notes for funds advanced by the Bank submitted a request to set a real estate tax levy for 2019 (payable in 2020) in the amount of $85,000, which is estimated to be the sufficient amount, in addition to the estimated SSA sales taxes, to meet the repayment obligations of the loan for the SSA improvements. See letter included with this Council Communication. This requested levy amount is identical to the 2018 levy amount of $85,000. However, due to a change in valuation by the County, after last year’s levy was adopted the amount is more than 105% of the tax extension (even though the dollar amounts levied are identical). This necessitates the need for a public hearing pursuant to 35 ILCS 200/27-32. Subsequent to the public hearing and pursuant to this request, the Ordinance sets the 2019 real estate tax levy for the Westlake Special Service Area, in the requested amount of $85,000.
FINANCIAL IMPACT: Revenue neutral.
NEIGHBORHOOD CONCERNS: Not applicable.
IMPACT IF APPROVED: $85,000 in SSA property tax, in addition to the SSA sales taxes, would be available to pay the loan obligations for costs in renovating parking areas as well as other reasonably contemplated improvements within the Special Service Area.
IMPACT IF DENIED: The City would be in violation of its agreement as amended with Westlake Special Service Area and the Bank as the Third Party Beneficiary of the SSA.
ALTERNATIVES: Not applicable.
EEO CERTIFICATION NUMBER: Not applicable.
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Grow Peoria: Businesses, Jobs, and Population
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Grow employers and jobs.
DEPARTMENT: Legal