Crystal Thomas
The State Journal-Register
Springfield aldermen voted 10-0 to allow the city to spend up to $22,000 to study an area along the 3400 block of Lumber Lane for a tax-increment financing district. The district would help incentivize LS Building Supplies, which is planning to open a lumberyard.
Ward 7 Ald. Joe McMenamin spoke of a letter sent to aldermen Tuesday by a manager at Prairie Wholesale Supply Co., 2605 South Grand Ave. E., which is not within the city limits.
“Basically, he’s saying we already got wholesale suppliers in the city area, and are we going to subsidize the newcomer to come in, compete with the longtime businesses?” McMenamin said.
***
As a separate incentive, city officials are negotiating a sales tax rebate mechanism with the company, which would kick back a percentage of the sales tax it generates to the company.
The next step would be for PGAV to study the proposed boundaries to see if the area would qualify for TIF district, which are tools often used to fight blight.
Joe McMenamin for Ward 7 