Effingham, Ill – Koerner Distributor has been removed from an Effingham TIF District.
According to the Effingham Daily News, “City Economic Development Director Todd Hull explained that Koerner had been residing in both the TIF district and the city’s enterprise zone, but that because state statute says TIF district benefits take precedence over enterprise zone benefits, the company sought the change.”
“Enterprise zones and TIF districts have their own sets of economic benefits. With real estate tax abatement in Effingham’s enterprise zone, landowners don’t have to pay on the growth in the base EAV or property value for seven years.”
According to EDN, City Economic Developer, Todd Hull, explained that Koerner’s Distributors didn’t fully comprehend that the tax abatement available in the enterprise zone is not available when overlapping with the TIF zone. Hull had added that the City had taken properties our of the TIF before when both zones have overlapped and it was beneficial to the city.
The Effingham Daily News added, “The council approved the removal 3-0 during a meeting earlier this week, with Commissioner Don Althoff and Mayor Jeff Bloemker absent.”
More information can be found here.