2018-03-18 / News

STC village to consider PILOT ordinance

By Mandilee Hecht
Staff Reporter

ST. CHARLES – The Village of St. Charles will consider a Payment in Lieu of Taxes (PILOT) Ordinance during a public hearing for a special meeting set later this month.

The scheduled hearing was set during the last council meeting on Wednesday, March 14 when a presentation was made regarding renovations to the Arbor Glen apartment complex, located at 130 W. North St.

Peter Potterpin, of PK Housing, addressed the board and gave details on a potential project that would renovate all the units in the complex. He estimated the project would cost between $1.5 million and $1.75 million.

He said the remodel will essentially create a brand new development by renovating the exterior and the interior of the complex as well as adding office space and a community room.

The USDA subsidized apartment complex offers controlled rent based on 30 percent of occupants’ income. The renovations will not increase the occupants’ rent outside of the normal annual increases, he assured.

He also assured the council that by putting into effect a Municipal Services Agreement, proper tax revenues for the village would be secured.

St. Charles Village Manager Matthew Lane explained that a Payment in Lieu of Taxes Ordinance will act as a contract between the village, PK Housing and Arbor Glen.

“The PILOT alone only guarantees the village will receive a certain agreed-upon percentage for the rents the property collects, instead of the full tax burden based on property value,” he said.

“In this case the owner is also willing to engage the village in a Municipal Services Agreement which basically acknowledges that the property still has a level of demand on public services, and they will pay us the difference of what we should be getting in tax revenue and what they will be paying as a PILOT to make us whole.”

Lane further explained with the PILOT ordinance the owner becomes eligible to receive state incentives in order to complete the large-scale remodel.

The project will move forward if Potterpin and PK Housing receive the needed tax credits.

“If they are not successful in their application to the state, the ordinance and the municipal service agreement do not go into effect,” Lane said.

Potterpin estimated the renovation will take between six to nine months and would remodel approximately four units a week. Occupants will receive a food stipend and will be moved to vacant units during their unit renovation.

He and many council members agreed that the complex is in major need of updates and renovations.

The public hearing for a special meeting to consider #18-2 Arbor Glen PILOT Ordinance will be held Wednesday, March 28.

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