The Caseyville Village Board approved a $7.765 million redevelopment agreement on Oct. 16 that will bring new businesses to the field on Illinois Route 159 across from the stagnant Forest Lakes subdivision.
Illinois Route 159 and George E. Chance Parkway, future site of a business development / Photo by Roger Starkey
The first phase of development by TBHP LLC on the approximately 57-acre property will produce five lots of commercial space to be occupied by restaurant and retail type businesses, Adam Hill, managing partner of TBHP said. The land directly adjacent to Illinois Route 159 will be included in the first phase. Land further away from the highway will be developed in a second phase.
The second phase will include additional commercial space and may include office space or multi-family housing. “I’m letting the market drive some of these decisions,” Hill said.
A business district with an additional 1 percent sales tax was created as part of the redevelopment agreement, Village Board Member Rick Casey Jr. said. TBHP, under terms of the agreement, will receive 90 percent of the sales tax and the business district revenues generated until the company has been reimbursed for $7.765 million of development costs. “This is the only way we are going to entice developers,” Casey said.
The property is part of the Tax Increment Finance area also occupied by the Forest Lakes subdivision. Caseyville sold about $31 million in TIF Senior Revenue Bonds in 2004 to fund development in the area. Because no revenue has been generated in the TIF area, the bondholders have not received payment. They will if the newly approved development begins generating income.
The TIF area expires in 2021. The new redevelopment agreement for the yet-to-be-named development is expected to run until 2028, but will end when TBHP has received the $7.765 million reimbursement.
Gross real estate tax increment revenue generated from the project are estimated to be $8.7 million through the life of the TIF are and about $1.1 million annually thereafter, Hill said. Sales tax revenue is expected to total $38.2 million through the life of the business district and about $2.6 million annually thereafter.
Terms of the redevelopment agreement require TBHP to have commenced work within nine months of the agreement and to have achieved significant completion within 12 months. The second phase is to be significantly completed within 24 months. Hill anticipates beginning construction this winter on the first phase.
The deal between the city and TBHP had been on hold for approximately four years. More progress was made in the past six months than in the previous four years, Hill said.
“The new mayor and his staff have been spectacular to deal with,” Hill said. “They are handling things at a professional level. They are responsive. When there is an issue, they deal with the issue. I applaud them for that.”
Related story: http://metroindependent.com/2013/10/09/caseyville-zombie-subdivision-attempts-comeback/1556/
