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Urbana council approves purchase of 30 acres to keep TIF 4 funds local amid debate

City of Urbana City Council and Committee of the Whole · December 16, 2025

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Summary

The Urbana City Council voted to buy roughly 30 acres of Pickerel Properties using $915,000 left in TIF 4 to preserve redevelopment options before TIF 4 expires on Dec. 31; council and residents debated the risks and likely uses, with staff stressing the narrow deadline to retain TIF funds.

The Urbana City Council voted to authorize staff to purchase roughly 30 acres known as Pickerel Properties using funds remaining in the City's TIF 4 district, a move staff said is needed before TIF 4 expires on Dec. 31.

City presenter Olivia told the council the purchase would use about $915,000 for acquisition plus $10,000 to cover a lease with the current farmer. "The purchase of Pickerel Properties is inextricably linked with the expiration of TIF 4," Olivia said, explaining the site is sewered, served by infrastructure, and one of the few lots of its size in Urbana's redevelopment geography.

Council debate was wide-ranging. Supporters argued buying the parcel preserves options and keeps tax increment revenue available to the Cunningham Avenue area rather than transferring the money to the city's central TIF. Opponents cautioned the purchase commits nearly $1 million of public funds without a firm developer commitment. One council member said, "I would not wanna bamboozle the poor folks on the MTD bus with the idea that what tax revenue might be generated by any business built on that farmland is somehow going to afford their housing or utilities." (opponent quote from transcript)

Residents who submitted written comments raised alternative uses and concerns: Lila Leopold urged incentives for farming, food production or open space instead of a motel or gas station, and Adam Nichols urged the city prioritize downtown investment over speculative highway commercial development.

The motion to authorize the purchase passed on roll call. Staff said the acquisition will be followed by additional analysis, an RFP process and community input on future uses.

Next steps: staff will continue due diligence, prepare materials for implementation (including an RFP for potential developers or community uses), and report back to council with development options and any required rezoning or subdivision requests.