For 19 years, the City of Braidwood gave money from its TIF fund to the Braidwood Park District. Park District representative Wayne Saltzman described the arrangement as a "gentlemen's agreement" in which the park district would get $15,000 a year in return for supporting the TIF. "It was a verbal agreement in 1988. Nothing was ever put in writing," Saltzman added.
"The park loses $125,000 a year to the TIF," Saltzman said.
This year, the practice was halted when city attorney Paul Keller told the council that giving money to the park district from the city's TIF account is not appropriate. Keller cited a TIF Association opinion that concluded that such payments generally violate the TIF Act, because they are not "in furtherance of the redevelopment plan and project."
The City of Morris also engages in this questionable practice by making annual payments from TIF funds to the school districts to encourage support for the TIF.
The payments by the City of Morris are not described in the Morris TIF redevelopment plan and are not payments for a project "in furtherance" of the plan. They appear to violate the TIF law for the same reasons as the Braidwood payments.
Read the complete Free Press article.
For an excellent summary of TIF and its proper uses and procedures, see "Economic Toolbox for Municipal Officials," authored by Stewart Diamond and Paul Keller of Ancel Glink. The TIF information starts on page 21.
37 comments:
Scooter says everything is okey dokey with Morris, just ask him. This Keller guy in Braidwood must be wrong. I'm sure his law firm will be ashamed giving such bad advice like that. Maybe they will no longer be the leading firm that represents municipal and county governments in Illinois and will no longer author the Illinois Municipal League handbook for the entire state anymore too. Next year Scooter will author it, personal rules and regulations included - no fire truck exemptions necessary.
Paul Keller is with the law firm Acel, Glink, Diamond, Bush, Dicianni & Krafthefer, P.C. in Chicago - the preeminent lawfirm in Illinois for municipal law. Their website says they "often assist local attorneys with complex matters."
I think Scooter and Jacobs need their help on TIF.
http://www.ancelglink.com/
The schools may not get the payments promised to them.
It would be interesting to see an accounting ledger for dollars in dollars out on the City's TIF money. Then profile it against what would be in furtherance of the redevelopment plan and project. Scooter says oky dokey....now that's funny!
Someone needs to sue to stop the payments to the schools.
Yes that's it! sue to stop payments to schools so everyone's taxes can go up to make the difference up! It's been budgeted and will be spent where do you think the money will come from?
Is that the same lawyer in Braidwood that Coal City has because I thought they hired Ancel Glink? Are they expensive?
Excellent addition to the post with the pdf file of that publication. Good research SM, maybe you should run for office.
scooter and mayor, Is there a section in the Illinois municipal handbook on how to properly blow the horn on drunken fire truck joy ride?. LOL
City officals are more concerned about consolidating power and money than they are about following legal niceties.
The first paragraph of the "Toolbox" publication says that money not used for proper TIF purposes has to be returned to the taxing districts. Why aren't the schools demanding that the city turn over the money it is hoarding for the city hall? This would solve the schools financial woes in one fell swoop and bring tax relief to Morris residents. The school boards and superintendents are not doing their jobs.
The chairman of finance and mayor have known from the beginning of this city hall debacle on how they were trying to finance the municipal building is an inappropriate way to spend TIF dollars. They were told this by the city's TIF attorney three years ago. But in a smug condescending way he and the mayor have decided they will spend TIF dollars anyway they see fit.
The local school districts would have close to ten millions dollars to divide up.
City Hall is full of thugs and crooks. None of this surprises me.
Halloran is playing kissy-face with Dicky because he wants to be part of the in crowd. Next thing you know he'll be driving fire trucks and hanging out at Chapins.
Taxes are sky-high in Morris because of TIF.
I have never really given all of this much thought but having now read the publication it raises this old guy's eyebrows. I don't think they fella at city hall wanted anyone to know about this and were gonna try to pull a fast one on us taxpayers. Give the money to the schools before we force you to! And hire this beautiful community a law firm that will give us the right guidance, not some local crony mumble jumble. How much of this does our State's attorney know about this and why isn't he doing anything? You're all a pact of thieves and the dog will soon tuck his tail and run.
Have you noticed how Brian Fenny has changed his mind over the years about TIF. It is funny to watch how money and power change some people. I wish you sledge would put up the 1991 letter again from district 101 addressed to alderman Brian Fenney from their business manager at the time. Showing in detail how much the district was being financially devastated by TIF annually.
I am of the understanding the superintendent of 101 has told business people in the community they are losing close to a half million dollars a year because of TIF and he would never be for an extension unless they were made whole. So lets give Pat a break.
If the TIF stockpile was returned to the schools (as it MUST be if not properly used) it would eliminate their debt entirely. Hundreds of thousands of dollars would be saved on interest every year, and taxes would decline.
I don't see how the TIF can legally be extended. According to the Ancel Glink publication, there must be "Evidence indicating that the redevelopment project area on the whole has not been subject to growth and development through investment by private enterprise."
Maybe this critera was met in 1985, but it certainly can't be met now.
I'm no attorney, but I believe the city may provide TIF monies to the schools if they're in the TIF district. I believe all the school districts are in the TIF district.
Do the people involved in this mayhem realize the negative impact all this has on the community as a whole? By no means am I condoneing the misuse of funds or the ignorance of the law, I am simply stating that shenanegans like this leave a black cloud over a town that will take 23 years or more for people to forget about it. Maybe they should automatically be sentenced to 23 years in jail for cripes sakes.
Many small Midwestern towns are dying. In the world of globalization, many communities have their young-educated people (ages 25-39 with at least a Bachelor’s Degree) leaving in droves to bigger cities, are losing their manufacturing jobs to China and Mexico, and larger farms are being operated by less and less people. Some towns try to compensate their “loses” with casinos and/or by offering free land to all whoever will stay in the community (see http://www.usatoday.com/news/nation/2005-02-08-land-cover_x.htm). One Iowa community has successfully fended off the “death” by focusing on Transcendental Meditation (see http://www.washingtonpost.com/wp-dyn/articles/A50643-2004Aug8.html ).
Some in Morris are hoping that Morris’ proximity to Chicago has it a natural for a “spillover” community. If this is the approach Morris is going to take, then what can we do to better facilitate us being a “spillover” community? To entice newcomers, I believe we need better access to the Chicago Metropolitan area such as a train station and maybe another ramp to route 80 (what about developing Lorenzo/Pine Bluff Road as faster route to I55?). A rejuvenation of some of the parks would increase family interest in the area (I hear many people giving accolades to Channahon’s and Yorkville’s parks (is a Park District in order here?). We also need a school consolidation feasibility study made to ensure we have the most efficient and effective education system in place.
There is little doubt that the Chicago “spillover” will continue in the age of globalization. The question is, “how can we, Morris, make the best of it?
End corruption in local government.
At what point is the Attorney General going to say enough is enough and come clean house? Not only at city hall but also the courthouse. We have a Treasurer that holds onto money collected from tax bills and doesn't pay the various districts in a timely fashion.
Arrogance to the enth degree
Someone should run for mayor on a pledge to turn over the $10 million TIF to the schools. He or She would be elected by an overwhelming majority.
Don't just blame the mayor. the city council is full of wet noodle aldermen who don't have the intelligence and/or the cahunas to stand up for what is right.
What's wrong with hanging out at Chapins?
The school districts should hire Ancel Glink to get their money back from the city.
Hide the fireturck keys so when the shyt hits the fan they won't have a getaway vehicle to skip town.
Everything about the Morris TIF is shrouded in duplicity.
Officials tell you TIF doesn’t raise taxes when of course it does — to the tune of about $3.5 million just in 2007, most of which would otherwise have gone to the schools.
They say the TIF is open and on the books, and yet it’s not shown on your tax bill or included in the city tax levy, which therefore misleads you about the city tax rate and where your tax dollars are going.
By law the TIF is supposed to be used to generate development in blighted areas, yet the city wants to use the TIF to develop prime route 47 frontage with a city hall that will not generate one cent of new tax revenue.
In my professional opinion, when Scott and Dicky were little boys they missed the day at school when everybody got a chance to climb on the fire trucks.
Everything you sledgehammer have been writing about the City of Morris illegal use of TIF funds has just been validated by the most preeminent municipal law firm in Illinois.
Kudos,
I wish i could read the TIF association opinion that Keller quoted.
The Morris TIF increases taxes for everyone in Dist 54, Dist. 101 and Saratoga by $3.5 million a year, even for people who don't live in the City of Morris. This money should be going to the schools, not the high-priced lawyers and engineers employed by the City.
This will be welcome news at the next joint review board meeting.
If the school board and superintendents agree or do not argue against to the 13 year TIF extension they better agree to freeze all of the teacher and administrator's salaries for the next thirteen years.
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