This item is part of a long-term economic development initiative that involves bringing multiple housing developments to the City. This item utilizes TIF (Tax Increment Financing) benefits regulated by the State of Illinois statute and may only be used for economic development purposes. No general fund revenues are being used. At a previous City Council meeting, a request for proposal was made for qualified developers to purchase and develop the approximate 7 acres of publicly owned land in the 200 block of East Jackson Avenue.
Monmouth Townhomes, LP responded to the RFP with the following terms:
• The total development cost is estimated to be $13,239,393
• 44 units will be constructed
• 10 two-bedroom units, 20 three-bedroom, and 14 four-bedroom units
• Each unit includes a one-car garage and one-car driveway
• Additional amenities include a washer and dryer in every unit
• The development will feature a community playground
• A clubhouse will be part of the development
• Construction of the buildings will be wood-framed and slab-on-grade
• The developer will pay $183,000 to the City Of Monmouth for the development review and administration process.
Administrative review fees are typically waived for parcels in the enterprise zone, but due to this project’s requirements, they are being assessed in this instance.
In order for the developer to achieve a higher project score on additional State and Federal programs, the City will sell the land to Monmouth Townhomes, LP, for $1.00. The current fair market value of the parcel is $183,000.
• The developer will finance the survey, engineering design, and construction of the water main, sewer, and surface drainage required for the site. As this parcel will reside in a TIF district, it does qualify for a performance-based real estate rebate. The current amount of property tax being collected will continue to go to all taxing bodies and will not be reduced. The additional revenue generated after the development is constructed will be set aside in a restricted-use TIF fund that is governed by the State of Illinois statute. Under the terms of this agreement, 95% of the additional property taxes will be rebated to the developer for applicable costs associated with construction for the TIF district’s life.
A full copy of the RFP and agreement may be found on the www.cityofmonmouth.com website under files for City Council. A motion for approval was made and was approved.
***Report Courtesy of the City of Monmouth***
