By Ted Schnell • BocaJump | Feb. 7, 2012
The Downtown Neighborhood Association continues its path toward autonomy this week as the Elgin City Council is asked to formalize a shift in the agency’s funding toward a source generated within Center City area.
City officials announced in November that the Downtown Neighborhood Association had proposed that it be funded through the Center City tax increment financing district instead of through the city’s general fund.
The Downtown Neighborhood Association plans to be funded by TIF money through 2015, but the agency has an eye on establishing a special assessment area to provide ongoing funding for the organization beginning in 2016.
The Center City’s tax increment financing district has been used to fund millions of dollars of infrastructure improvements in the downtown area, but the legislation authorizing such districts also allows use of those revenues to fund downtown organizations.
Elgin management consultant Aaron Cosentino said Friday that of the $135,000 in funding to the agency, $120,000 will come directly from the TIF, with the remaining $15,000 coming from the general fund.
The City Council will review a purchase of services agreement with the Downtown Neighborhood Association that formalizes the funding change and spells out the agency’s obligations in return — which include economic development efforts.
The City Council meets as a committee of the whole at 6 p.m. Wednesday in the City Council Chambers in City Hall. The council’s regular meeting is scheduled to follow at 7 p.m.
