Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
LaSalle council approves TIF redevelopment deal transferring 500 Second Street to Glenstone Redevelopment LLC
Summary
City council approved a tax increment financing (TIF) redevelopment agreement and property transfer for 500 Second Street to Glenstone Redevelopment LLC (Nathan L. Watson), with the ordinance passing 7–2 after discussion of environmental due diligence and limited city TIF support.
The LaSalle City Council voted 7–2 to approve a tax increment finance (TIF) redevelopment agreement that authorizes the transfer of city-owned property at 500 Second Street to Glenstone Redevelopment LLC and its principal, Nathan L. Watson.
The ordinance approved by the council allows the city to execute a redevelopment agreement with Glenstone Redevelopment LLC. Council discussion emphasized that the TIF benefit in the agreement is limited to acquisition of the property and that no other TIF benefits are promised in the ordinance as written. "The only part of the understanding in this agreement is that the developer wouldn't be seeking those types of TIF benefits in regard to this particular development," a city attorney advised during the meeting.
Council members and city staff discussed environmental due diligence. The agreement includes a provision for a Phase II environmental inspection: the city would pay 50% of the Phase II cost up to $5,500, but that amount would be reimbursed to the city if the transaction proceeds to closing. "If the transaction proceeds to closing, the city is reimbursed for that 50%. However, if the transaction does not proceed to closing ... the city will also have the benefit of receiving a copy" of the Phase II report, a city attorney said.
Supporters of the motion said the proposal was the only complete submission the city had received from respondents to the earlier request for proposals and that the applicant had provided financing assurances and a letter of credit. One alderman noted that timing was critical and that the city had given a short additional window for competing proposals.
The council record shows the motion carried 7 to 2. The ordinance authorizes the mayor and corporate authorities to execute the redevelopment agreement and related documents required by the TIF Act.
The action does not itself describe specific redevelopment work or timelines beyond the agreement terms; the approved ordinance ties any TIF-related reimbursement to completion of the project and closing of the transaction. The council referred other related questions and final implementation details to staff and legal counsel.
Council members said they had given the subcommittee time to review competing proposals and that the selected developer had been present during the council discussion.
The council also noted that further actions required by the ordinance (including any property conveyance at closing and any reimbursements) would follow the terms in the redevelopment agreement and applicable state law.
The vote on the ordinance was recorded as passing 7–2.
For now, the ordinance furnishes the legal authority to proceed; the council and staff will carry out the next administrative steps specified in the agreement, including environmental due diligence and closing procedures.
