After the city of LeClaire ignored its objections to the creation of yet another tax increment financing (TIF) district, Pleasant Valley school officials say they plan to seek changes in state law to give schools "a real voice" in the TIF approval process.
"Dr. Spelhaug (district superintendent) has had a conversation with State Sen. Shawn Hamerlinck and State Rep. Linda Miller relative to legislative solutions," the board reported in its September meeting minutes. "Both will be seeking a change in the law that would give other taxing bodies, like school districts and counties, a real voice in the TIF approval process."
The district, facing state funding cutbacks and increased costs with the anticipated opening of the new Hopewell elementary school, had objected to the creation of a new TIF in LeClaire which would reduce property taxes due the schools.
Under a TIF district, property taxes within the area are retained either by the city for improvements to that specific area or returned to the developers as an incentive for building the project. TIF revenues not only include city taxes, but those taxes normally paid to the school district and county. Under current rates, nearly half of any TIF rebates come from the school district taxes.
One of the new TIF districts approved last month by the city council would provide city/school/county tax rebates for development of a whiskey distillery in downtown LeClaire. The other two TIF districts and purposes are: 23rd Street right-of-way from Trent Street to Territorial Road for the purposes of constructing public street improvements; and south 2nd Street between Davenport and Wisconsin Street for promoting and assisting commercial development and constructing public improvements.
Under current TIF laws, the cities have sole authority in the creation and approval of TIF districts. In the past, both Bettendorf and LeClaire have asked for input from affected taxing bodies (school districts and Scott County) during the review process.
Despite strong objections from the Pleasant Valley school district, LeClaire city officials approved the new TIF designations.
When the initial TIF district was created for the Isle of Capri (Lady Luck) casino development, Bettendorf school district officials asked for and received its share of the tax revenue which would have otherwise been given back to the development. But when the TIF for the riverboat development was updated several years later, the school district rebates were not included.
