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Urbana SD 116 board approves disposal of surplus property and settlement in long-running Presence Hospital dispute
Summary
At its study session the Urbana SD 116 board approved a resolution to dispose of surplus school property and voted unanimously to approve a settlement resolving a multi‑decade property‑tax dispute with Presence Hospital and an accompanying intergovernmental agreement; timing and payment allocations were discussed.
The Urbana SD 116 Board of Education on Tuesday approved three formal actions: a resolution to dispose of surplus district property, a settlement to resolve long-running property tax exemption litigation with Presence Hospital, and an intergovernmental agreement among taxing bodies to implement the settlement.
The board first approved a resolution authorizing disposal of personal property — student desks, chairs, teacher desks, miscellaneous storage and library books from Leo Elementary — following a motion, second and roll‑call vote. The roll call recorded affirmative votes from all board members present and the motion passed.
Later the board voted to accept a settlement resolving the district’s portion of a decades‑old dispute with Presence Hospital over funds held in an expired tax increment financing (TIF) district. The chair summarized the agreement as a return of funds to Presence and described the settlement as closing “a 20 plus year saga.” Board members said the agreement will allow the district to focus on planning for the future. The motion to approve the settlement passed on a roll‑call vote; board members indicated the district’s amount to be paid was locked while small, timing‑related edits remained possible by counsel.
The board also approved an accompanying intergovernmental agreement that spells out how other taxing districts participating in the settlement will manage allocations and payments. The administration said attorneys finalized allocation amounts and set payment dates; final ministerial tweaks to documents were possible but would not change the district’s committed amount.
The chair said the settlement and the other votes will be reflected in the district’s final FY26 budget documents when they return to the board for approval in mid‑June.
