A proposal to use Tax Increment Financing (TIF) money to fix curbs and sidewalks on the west side of downtown Kewanee was tabled by the City Council Monday.
An ordinance approving the TIF money for the improvements in the 100 block of North Lexington Avenue would have approved paying as much as $64,450 for the work. That price was included in a proposal from Ratliff Brothers for the project, which also would include repaving that block of Lexington.
Council members pointed out that the city has not sought bids for the work. In drawing up the ordinance, city staff relied on a proposal submitted by officials of Gustafson Ford.
The dealership has invested in remodeling the former bowling alley at First and Lexington streets into a showroom. That work included building new curbs on First Street across from the YMCA building.
Gustafson Ford is making an investment of more than $2 million in the improvements around the dealership, Bradley said.
City Manager Gary Bradley said state law allows cities to use TIF money on infrastructure projects, and the Gustafson proposal would be an opportunity for the city to save money on the improvements to Lexington Avenue.
He also said the dealership is one of the largest generators of sales tax revenue for the city, and added that “We need to take care of the businesses that are bringing in that kind of money.”
The TIF proposal would be a “very small step for us to take,” he added.
Councilman Adam Cernovich asked why no bids had been sought, and Councilman Mike Komnick said, “I believe we should get bids.”
