Galesburg, Illinois - The City Council will take the first step toward the creation of a Business Development District (BDD) at its Monday night meeting. Consideration will be given for approval of a Letter of Intent which affirms the city’s good faith effort in adopting a Development Agreement with the developer of the Gale Village Subdivision. The actual creation of the Business Development District would occur according to statutory requirements, including public notice requirements, and after the city and Developer enters into a formal development agreement.
The BDD is being proposed to assist with funding public infrastructure required for the Gale Village Subdivision on North Seminary Street, near the U.S. 34 interchange. A BDD is a special taxing district, authorized to undertake certain public improvements to be financed through the issuance of notes or bonds that are, in turn, retired by the levy of a sales tax within the geographic boundaries of the district. In this case the proposed tax would be a one percent sales tax and a one percent hotel tax applied within the district.
The cost to upgrade existing infrastructure and build new infrastructure sufficient to support new development creates a financial burden that has, in the past, deterred growth in that area. The BDD will allow for those public improvements to take place and the area within the BDD will be more attractive for future development which would increase the city’s tax base.
There are currently three development projects considering the area included in the BDD.
# # #
Contact: Todd Thompson, City Manager