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Council authorizes up-to-$35,000 study for Sunnyland business development district that could fund projects via local sales tax
Summary
The council authorized a professional study not to exceed $35,000 to develop a business development district (BDD) plan for Sunnyland and adjacent corridors; staff said a quarter-percent sales tax increment could raise about $30,000–$35,000 annually, but funds must be spent within legally designated district boundaries for eligible improvements.
The Washington City Council on June 1 authorized staff to engage an economic-development consultant to prepare a business development district (BDD) plan for the Sunnyland area, approving a not-to-exceed amount of $35,000 for the study.
City administrator Jeff Fagenshu explained the staff recommendation: a base consultant price of $26,600 plus reimbursable costs up to $2,500, with authorization to scale the study area to include areas along Route 24 if appropriate. "BDDs allow for an increase in sales tax in increments of a quarter of a percent up to an additional 1%. It is estimated that a quarter of a percent sales tax increase would generate approximately 30 to 35,000 annually that must be spent in the specified business development district area," staff said.
Council members discussed district boundaries and eligibility criteria. Alder Martin said owners in the targeted areas had been generally supportive and suggested including Georgetown to Mohler to capture more frontage; Alder Blendy and others noted the consultant will study viability and can recommend adjustments. Alder Moss pressed staff to confirm that the vendor would analyze revenue-generation potential and the district's ability to make a meaningful impact.
Staff and alderpersons emphasized two legal limits: (1) a required portion of the district must meet blight criteria and (2) funds raised in the district must be spent within the district on economic development or infrastructure improvements (they cannot be used for general staffing such as police or firefighters).
A motion by Alder Martin, seconded by Alder Smith, to authorize the study not to exceed $35,000 passed unanimously. Staff said the completed plan and any ordinance to implement a sales-tax increment would need to be submitted to the Illinois Department of Revenue by October 1 to be effective January 1, if council later approves the tax change.
Next steps: staff will contract with the consultant, expect a 60–90 day study timeline, and report findings to council so members can decide whether to proceed with an ordinance and defined district boundaries.
