ABOVE: Danville District 118 Board at start of Wednesday evening meeting.
Danville School District 118 has been on a mission to recover some of the potential district revenue that gets swallowed up by Tax Increment Financing (TIF) Districts in Danville and Tilton. In a TIF district, taxes from any increases in property values within the designated district area goes into a fund for that area’s future economic development; rather than going to taxing entities such as school districts.
After a series of recent meeting between Danville and District 118, it was announced during Tuesday’s City Council meeting and Wednesday’s 118 Board meeting that proposed partnerships have been reached for two Danville TIF districts.
One of them, the Midtown TIF district scheduled to expire in 2028, after a run of over 20 years, would be given a full extension. The area covered is from the Fairchild – Vermilion and Fairchild – Gilbert intersections; straight south to the Downtown Danville northern boarder, which is approximately Seminary Street.
The second Danville TIF district involved would actually be a brand new one. The Western Gateway TIF, in existence for about eight years, would be dissolved. The small area involved, the Main Street Corridor from Logan to Gilbert, would become part of a larger TIF district that would extend south along the Gilbert Street Corridor, all the way to the Danville southern boarder just before I-74.
Before this intergovernmental agreement is voted on by both the City Council and 118 Board, both entities would need to hold public hearings. Danville Community Development Administrator Logan Cronk says this should be able to be made official prior to the start of Danville’s new fiscal year on May 1st.
AUDIO: We’ve come to a draft conclusion that will be proposed to City Council and the school district in the coming months. It will hopefully satisfy the negative impacts that a new TIF would create for the school district. We just want to let everybody know that we’re heading in the right direction, and a long standing partnership.
(1st Picture) Danville Community Development Administrator Logan Cronk (with microphone). (2nd Picture) Danville District 118 Director of Finance Todd Pence. (3rd Picture) Danville District 118 Superintendent John Hart.
It was mentioned during Wednesday’s 118 Board meeting that the proposed deal has the Danville school district receiving back 25% of the revenue they would have been receiving from EAV property value increases in the two aforementioned TIF areas. District 118 Director of Finance Todd Pence says the meetings on the TIF issue with Danville’s Mayor Rickey Williams, Jr and city staff have gone very well.
AUDIO: 25% of what we generate will come back to us. And that accounts for about 15% of their total moneys (new money for the TIF via EAV increases). It’s not going to hurt them that bad, but it’s a big deal to us.
District 118 superintendent John Hart says once this proposal is officially approved, there are three other active Danville TIF districts that could also be subject to future agreements.
AUDIO: To be able to sit down and talk about education and the economic development of the city has been huge. Mayor Williams is very positive, very open to the conversation; the same with Mr. Cronk. So, again, it was just a really good conversation. I felt this is a win-win.
Hart says there are no active TIF sharing proposals yet between District 118 and the Village of Tilton, but communication is continuing.
Also during Wednesday evening’s 118 Board meeting, it was announced that a public hearing will take place at 6:30 PM, during the November 18th meeting, on the district’s proposed tax levy increase. Pence says the district is going back to its 2024 tax rate, hoping to use that to get back to a balanced budget; and move forward from there.
District 118 Athletic Director Mark Bacys and Director of Finance Todd Pence show off their Danville Viking colors prior to Wednesday evening’s District 118 Board meeting.
