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Joint Review Board to discuss TIF district
By Holly Johns
Daily News staff writer
After meeting, Rockton Village Board will vote on Chemtool Superfund site
ROCKTON - A Joint Review Board will meet again at 2 p.m. Tuesday at Rockton Village Hall to discuss a possible agreement on a tax increment financing district at the proposed Chemtool site.
The review board is comprised of representatives from area taxing districts, including Hononegah High School, which has met with Rockton officials twice already to discuss the matter. Both meetings have brought no agreement, just more questions.
The district expressed worry over the amount of new students Chemtool could bring to the area. With a cost of about $10,000 per student, the school board wonders who is going to cover the costs of each student if taxes on the Chemtool site are frozen for 23 years.
“Money is our main concern,” Hononegah Superintendent Randy Gross said.
When Chemtool first expressed interest in the former Beloit Corp. site, owner Jim Athans said the 500 jobs to be had at the headquarters would be filled by those who would commute from other facilities and the prospect of new students should not be a concern.
However, in later discussions, the possibility of new jobs and new students has been brought up, leaving the school districts to be concerned over the cost of new students, teachers, buildings and materials.
“There is some interest in trying to be included in some of that increment as that area develops,” Gross said. “We're trying to receive some of that revenue.”
Gross said some more information would help in swaying a decision, but he is not considered someone who makes the vote.
Village President Dale Adams said of the nine-member joint review board that will be voting on the TIF recommendation, only three live in the Rockton community.
Adams still believes residents of Rockton are having trouble understanding what a TIF district is and what it is used for. He said a TIF is a tool that is strictly available for municipalities, which allows the village to freeze taxes at current levels to help offset the cost of rehabilitation.
Because the proposed Chemtool TIF area is a Superfund site, Adams said the area is perfect for the district.
“In my mind that is exactly why TIF districts were created,” he said. “That is what they should be used for.”
Adams also wanted to stress that the nine taxing bodies affected by the proposed TIF would not be losing any money because the taxes would be frozen at its current rate. They still would receive tax revenue from the site.
“There is certainly a chance that the property could depreciate and the school districts could get less money than they are now,” Adams said. “The current tax amount would still be received.”
If the review board comes to an agreement with the village, then the village board can vote on the TIF with a simple majority vote. If the review board rejects an agreement, the village board will need a three-fifths majority vote to pass the TIF district.
Adams said if there is another deadlock at the next meeting, then the vote will just have to move to the village board.
“We have the opportunity to bring a lot of jobs back to the area,” Adams said. “We're just trying to replace the jobs we lost.”
The TIF district, if approved, would reimburse Athans 70 percent of the tax increment up to $6.5 million over 23 years in exchange for Athans cleaning up and rebuilding the Superfund site with an investment of $30 million of his own for site acquisition, site improvements and rehabilitation costs.
During a previous meeting with the school board, village attorney Gino Galluzo stated that Athans would not build on the site without the TIF district.
Athans has said in the past that a lot of work needs to be done, including the demolition of an old water tower that would have cost $300,000 to repair. Also the flooring and roofs need to be fixed among other things.
Chemtool, a privately held corporation founded in 1963, is one of the largest manufacturers and custom formulators of lubricants and specialty products for industry worldwide. The company may employ as many as 500 people at the Rockton facility.
A public hearing on TIF district will be held on Aug. 5 for residents who wish to express questions and concerns. The village board may vote to adopt the ordinance within 90 days after the pubic hearing.
ROCKTON - A Joint Review Board will meet again at 2 p.m. Tuesday at Rockton Village Hall to discuss a possible agreement on a tax increment financing district at the proposed Chemtool site.
The review board is comprised of representatives from area taxing districts, including Hononegah High School, which has met with Rockton officials twice already to discuss the matter. Both meetings have brought no agreement, just more questions.
The district expressed worry over the amount of new students Chemtool could bring to the area. With a cost of about $10,000 per student, the school board wonders who is going to cover the costs of each student if taxes on the Chemtool site are frozen for 23 years.
“Money is our main concern,” Hononegah Superintendent Randy Gross said.
When Chemtool first expressed interest in the former Beloit Corp. site, owner Jim Athans said the 500 jobs to be had at the headquarters would be filled by those who would commute from other facilities and the prospect of new students should not be a concern.
However, in later discussions, the possibility of new jobs and new students has been brought up, leaving the school districts to be concerned over the cost of new students, teachers, buildings and materials.
“There is some interest in trying to be included in some of that increment as that area develops,” Gross said. “We're trying to receive some of that revenue.”
Gross said some more information would help in swaying a decision, but he is not considered someone who makes the vote.
Village President Dale Adams said of the nine-member joint review board that will be voting on the TIF recommendation, only three live in the Rockton community.
Adams still believes residents of Rockton are having trouble understanding what a TIF district is and what it is used for. He said a TIF is a tool that is strictly available for municipalities, which allows the village to freeze taxes at current levels to help offset the cost of rehabilitation.
Because the proposed Chemtool TIF area is a Superfund site, Adams said the area is perfect for the district.
“In my mind that is exactly why TIF districts were created,” he said. “That is what they should be used for.”
Adams also wanted to stress that the nine taxing bodies affected by the proposed TIF would not be losing any money because the taxes would be frozen at its current rate. They still would receive tax revenue from the site.
“There is certainly a chance that the property could depreciate and the school districts could get less money than they are now,” Adams said. “The current tax amount would still be received.”
If the review board comes to an agreement with the village, then the village board can vote on the TIF with a simple majority vote. If the review board rejects an agreement, the village board will need a three-fifths majority vote to pass the TIF district.
Adams said if there is another deadlock at the next meeting, then the vote will just have to move to the village board.
“We have the opportunity to bring a lot of jobs back to the area,” Adams said. “We're just trying to replace the jobs we lost.”
The TIF district, if approved, would reimburse Athans 70 percent of the tax increment up to $6.5 million over 23 years in exchange for Athans cleaning up and rebuilding the Superfund site with an investment of $30 million of his own for site acquisition, site improvements and rehabilitation costs.
During a previous meeting with the school board, village attorney Gino Galluzo stated that Athans would not build on the site without the TIF district.
Athans has said in the past that a lot of work needs to be done, including the demolition of an old water tower that would have cost $300,000 to repair. Also the flooring and roofs need to be fixed among other things.
Chemtool, a privately held corporation founded in 1963, is one of the largest manufacturers and custom formulators of lubricants and specialty products for industry worldwide. The company may employ as many as 500 people at the Rockton facility.
A public hearing on TIF district will be held on Aug. 5 for residents who wish to express questions and concerns. The village board may vote to adopt the ordinance within 90 days after the pubic hearing.
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