The Commercial-News, Danville, IL

April 17, 2013

City Council OKs cash flow loan reimbursement


DANVILLE — City council members Tuesday night approved using additional sales tax generated from the new North Vermilion retail development to reimburse $600,000 from the city’s general fund for a cash flow loan.

A reallocation of additional sales tax money allows Community Development Block Grant funding during the next few years to be used to demolish dilapidated structures in the city.

The city has not budgeted expected new sales tax dollars.

Money borrowed from the city’s sanitary sewer and solid waste funds have been repaid.

Federal dollars received through CDBG funding were not received in time during Phase 1 of the Kohls’ Continental Development retail development, according to city officials, to pay back the $600,000 borrowed from the city’s general fund.

Also Tuesday, aldermen approved a storm water detention agreement with developer Continental Properties Co. of Wisconsin regarding the new North Vermilion Street shopping center.

The city will receive a $1,000 annual maintenance fee from the developer tract owner to reimburse the city for the shopping center’s share of maintenance costs with respect to the regional pond.

In other business, the council:

Tabled reappointing Stan Grubb, Karen McGinnis, James Meharry, Greg Green, Gordon Thoennes, Gil Saikley, Dick Shockey and John Spezia to the David S. Palmer Arena board.

Ward 1 Alderman Rickey Williams Jr. said Mayor Scott Eisenhauer, who was in Springfield and was absent from Tuesday night’s meeting, didn’t provide background information about each proposed board member.

Approved selling 707 Hazel St. to Danville School District #118.

Approved a 25-year lease agreement with the Danville Tennis Club for the tennis facility at Lincoln Park.

The city will continue to maintain/pay for the heating, air-conditioning and lighting systems. The utility costs will be reviewed every three years.

Ward 7 Alderman Bill Black had initially proposed changing the agreement to a 10-year agreement and adding a 5 percent annual cost share for utility bills by the tennis club.

After hearing about the club’s past and future investments, including a new roof, and hearing about how the utility costs have gone down that the city pays to now about $6,700 a year for electricity, Black withdrew his proposed agreement amendments.

Public Works Director Doug Ahrens told the city council that the city pays no water costs for the public facility and gas costs are paid through a flat negotiated annual fee of $125,000 for all city buildings (the city now sees about a $50,000 benefit with bills totaling about $75,000 for the year).

Electricity costs also should decrease more with the electrical aggregation program, Ahrens added.

“It’s not as much as I thought…,” Black said of the utility costs to the city.

Approved a lease of Danville Stadium to Danville Area Community College.

Approved paying T Danville Mall, LLC $337,500 for the sales tax incentive agreement for Ross Dress for Less. A lump sum was to be paid upon completion and opening of the store. Funding comes from the city’s general fund reserve.

Approved purchasing right-of-way, a narrow strip of land across from 1949 N. Bowman Ave. for $500 from the Corporation of the Presiding Bishop of the Church of Jesus Christ of Latter-Day Saints. The land is for the Bowman Avenue improvement project.