The Commercial-News, Danville, IL

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June 25, 2008

Committee OKs Courtesy land option

City to purchase Colonial Apartments

BY JENNIFER BAILEY

DANVILLE — The city council’s public services committee took a step Tuesday night toward gathering more property for downtown’s proposed Courtesy Ford car dealership expansion project.

Aldermen recommended approving the option to purchase the Colonial Apartments building at 220-222 W. North St., at the southeast corner of North and Pine streets, and outbuilding behind it at 35 Pine St.

The full city council will act on the matter next week.

The city would spend Tax Increment Financing dollars to purchase the properties from John Cunningham for $225,000. It’s paying $10,000 upfront.

Ward 7 Alderman Ron Candido voted against the four-month option contract.

He’s concerned about the tax revenue to be gained for what the city is giving in incentives, and this property doubling in value in eight years.

“It seems steep to me,” he said.

He also said the money could go into the police and fire pension funds instead, with the city using another funding mechanism, sales tax, to purchase the property.

But Mayor Scott Eisenhauer said using sales tax revenue would impact the city’s operations budget, and at least with the property tax funding being used, the city will reap long-term benefits.

“Unfortunately incentives are part of doing business,” he said.

Other aldermen focused on the spin-off business and other benefits to come with the expanded dealership.

Ward 5 Alderman Jerry Askren said the city is darned if it does something and darned if it doesn’t.

He said residents have criticized city officials for not doing enough to keep Vermilion Chevrolet here. But now the city is trying to do what it can to keep another car dealership here.

Although a redevelopment agreement has yet to be signed with Courtesy Ford, Eisenhauer believes one is still forthcoming.

“We have very good knowledge of that,” he said.

But even if something happened with the agreement, “redevelopment will occur in this area,” Eisenhauer said.

Also Tuesday, the committee recommended authorizing professional services for the proposed east side Campus Corridor TIF district.

The contract is with consultants Ehlers & Associates Inc. of Lisle for $23,000. Funding comes from TIF funding.

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