Pleasant Valley school officials are raising a red flag over Riverdale's plan to include the ALCOA plant in its first-ever Urban Renewal Area, the initial step in making the multi-million-dollar manufacturing facility eligible for Tax Increment Financing (TIF) rebates on future expansion and renovation projects.
Granting TIF incentives for future plant renovations could cost the district millions in school taxes, funneling those monies instead to either city coffers, back to the plant or into contractor/developer pockets.
In LeClaire, more than $1 million in school taxes are kept by the city and rebated to developers each year under TIF projects. The school district has objected to LeClaire's continued long-term use of TIF for residential and commercial developments, but the city has ignored its objections.
"ALCOA has the second largest amount of property tax valuations in the Pleasant Valley Community School District," Supt. Jim Spelhaug wrote in the letter to Riverdale officials last week objecting to creation of the Urban Renewal Area. "Therefore, ALCOA’s property taxes comprise a significant portion of the school district’s property tax revenue and overall revenue.