WASHINGTON, Ill. – A public hearing will take place next month in Washington on a proposal to create a business development district.
The city council Monday night discussed the topic on first reading, asking questions about what the district entails, and the associated sales tax with it. A second reading is expected in two weeks, with a public hearing scheduled for September 8th. A final approval would be scheduled for late-September.
If created, the district would encompass Washington Plaza on the west side of the city, and Wilmor Road on the east side. The proposal calls for a .25% sales tax within the district. Council documents estimate around $700,000 could be generated annually with the new sales tax.
Revenues raised from the BDD sales tax would only be able to be used within the district. It can be used for property purchases, infrastructure improvements, economic development initiatives, building rehabilitation, and new building construction.
Washington is one of the few communities in central Illinois that doesn’t have a BDD, something that surprised Mayor Lilija Stevens.
“I think of Washington as a growing community that’s up on things, but yet, this is a first for us,” Stevens said.
City Administrator Jeff Fiegenschuh told council members that the sales tax would have to be included as part of the BDD. He was addressing a concern from Ward IV’s John Bludy about a new tax being implemented on residents.
Fiegenschuh stated that if council was concerned about the sales tax, then the council should hold off on the approval of creating the BDD. But he noted that the city is already spending money on the project, after the council approved spending $35,000 in June for consulting costs.
While saying he’s not endorsing the idea, Ward III’s Brandon Moss says it’s a potential way to fund improvements across the city.
“Our general fund’s not going to be able to support that. I think with the infrastructure projects that we have ahead of us, this will be the way that those projects will or will not be funded,” Moss said.
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