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City administrator reports multiple TIF defaults, closure and loan defaults among downtown businesses
Summary
Silvis City Administrator Jerry told the council that Rock River Coin, Iron and Grain and other local businesses are in default on tax-increment financing or loan agreements; the city plans an annual TIF review in mid-January.
Jerry, the city administrator, reported during the Dec. 17 meeting that several downtown businesses are in default on city financing arrangements and that the city will pursue collections and an annual TIF review.
"They understand that they are in default of $28,000 on the TIF and another $8,000 on the façade," Jerry said of Rock River Coin, and he reported that Iron and Grain has also been sent a default letter. Charged Coffee has closed for personal reasons and owes just under $8,000 to the city, Jerry said. He added that Kelly's Pizza failed to meet a six-month extension to complete its build-out; the city loaned $50,000 for that project and the business will be in default.
Jerry said the city will move some accounts to collections and will hold an annual review of TIFs at City Hall in mid-January to assess next steps and recovery options. No liens or foreclosures were finalized during the meeting; staff reported that collection letters have been sent and further action is being considered.
