Waukegan committee backs $5.5 million for risk reserve, approves $1.1 million for corridor and engineering; parking garage left in TIF

Waukegan — The Committee of the Whole voted March 3 to allocate portions of casino-generated revenue, approving $5.5 million for a city risk-management reserve, $1 million for Washington Street Corridor Phase I engineering and $100,000 for general engineering services. The committee also confirmed that the $1.5 million parking-garage repair will remain budgeted in TIF 8 rather than be paid from the casino revenue allocation plan.

The decision came after roughly two hours of discussion about competing proposals for how to spend the pool of revenue generated by a temporary casino. Corporation counsel told the committee the casino tax fund is projected to generate $16,476,700 through the end of the fiscal year on April 30. Aldermen reviewed three plans — a mayoral plan and alternate proposals from Alderman Felix and Alderman Turner — and attempted to find points of agreement.

Why it matters: The committee is allocating one-time, casino-derived revenue that the city expects to transfer into destination accounts by formal resolution if the Committee and full council agree. Members described the risk-management reserve as a contingency for legal judgments against the city; they said engineering and corridor funding would advance…