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Council hears calls to end Lam Road TIF as members and residents question use of $3.8 million surplus
Summary
Residents and some aldermen pressed the City Council on the Lam Road TIF, arguing diverted taxes have not produced promised manufacturing jobs and asking that a $3.8 million surplus be returned to taxing bodies or used to develop shovel‑ready industrial sites.
Freeport — Residents and some aldermen pressed the City Council on the future of the Lam Road tax increment financing district, arguing that property tax revenues diverted to the TIF have not produced the industrial jobs promised when the district was created and asking that the TIF be closed and surplus funds returned to local taxing bodies.
The concerns came in public comment and a Council discussion during the meeting. Rhonda Scott, speaking during public comment, said the Lam Road TIF — formed in February 2003 as an industrial TIF — has collected about $10 million in property tax increment and now has a $3.8 million surplus. Scott said the money has been used for legal, engineering and marketing costs and cited payments to specific private entities; she said no new manufacturing plants had been funded to create jobs as intended.
Alderman Stacy (Stacy Simmons) brought the TIF back for discussion and argued the district’s diverting of Walmart and Menards tax revenue reduces funds available for police, fire, schools and roads. City Manager Darren Boyer and Attorney Aaron Zito responded that TIF funds can be used for public improvements within the district and that money is being used for a lift station at Lamb Road and Walnut to improve wastewater conveyance and create capacity for future development. Boyer said the lift station was included in the city’s capital improvement plan and in this year’s budget.
Attorney Zito told the council he was unaware of any improper use of Lam Road TIF funds during his tenure and said redevelopment agreements reimbursing developers for TIF‑eligible costs are an authorized TIF use. He explained generally that TIF monies must be spent for public improvements or to reimburse eligible redevelopment costs within the district boundaries.
Several aldermen and public speakers pushed for more direct development of shovel‑ready industrial land in the TIF area, including buying and preparing sites to attract manufacturers. Alderman Monroe asked why the city had not used the surplus to develop available parcels in the southern industrial zone and urged the council to develop a concrete plan to convert TIF funds into industrial infrastructure and sites. Alderman Shadle and others warned that removing funds from planned infrastructure such as the lift station could undermine future industrial readiness.
Council members also noted that the Lam Road TIF is scheduled to sunset in one year; that fact, several members said, makes the future of the surplus and the district a near‑term decision for the council.
No formal action to terminate the district or reallocate the surplus was taken at the meeting. Multiple speakers requested follow‑up materials and stronger staff recommendations on options for using the surplus funds after the planned lift station work is completed.
Ending: Council members directed staff to provide additional information and options for the district’s funds and to return the matter for a future agenda; no votes on termination or fund transfer were recorded at this meeting.
