Normal to vote on abating property tax for Shoppes at College Hills

Feb. 04--NORMAL -- The owners of a Normal shopping center will get less back in taxes this year under an economic development agreement.

M&J Wilkow, the Chicago real estate firm that owns the Shoppes at College Hills, will receive a $173,000 property tax abatement -- down from $210,000 in 2018 and $213,000 in 2017 -- under an arrangement that first diverts sales tax revenue to repay bonds that helped build the development.

The Normal City Council will consider that abatement Monday.

"We abate as much of it as we can, which is a function of how much has been collected in sales tax," said Normal Finance Director Andrew Huhn. He noted losing Gordmans clothing store may have impacted sales tax receipts.

Torrid, a women's clothing store, and Comcast joined the Shoppes at College Hills last year. Hobby Lobby moved into the former Gordmans, and Marshalls and Old Navy could be coming to the former Hobby Lobby space, according to marketing materials released by M&J Wilkow.

The town took out the bonds in 2004 to pay for the transition from the enclosed College Hills Mall to the outdoor Shoppes at College Hills. The $5.5 million bond issue paid for demolition of the mall, installing parking lots, engineering and other costs; it's set to be repaid in late 2024.

Huhn said he's not aware of any arrangements similar to the Shoppes deal -- it's called a "special service area" -- in the town.

Officials have sometimes promised sales tax rebates for economic development projects, including Portillo's, the Radisson Hotel and two connected shopping centers on Veterans Parkway, and town property tax abatements, including one given to Rivian.

The town also has several tax increment financing districts, which redirect property tax revenue generated by improvements from taxing bodies to fund economic development, including for uptown and Main Street.

Alto Real Estate Funds, a New York-based real estate investment firm, and M & J Wilkow acquired the 246,245-square-foot shopping center in 2017.

The Normal City Council meets 7 p.m. Monday on the fourth floor at Uptown Station.

In other business, the council will consider selling two garbage trucks to the city of Kewanee for $260,000. That's part of a plan to replace four trucks for $1.27 million approved last May.

"Typically, the town will take vehicles of this type to a public auction, but has on occasion authorized the purchase of town vehicles by another governmental agency," according to a memo from Public Works Director Wayne Aldrich. "Code allows the town council to ... authorize the sale of property to a specific buyer if the property has a fair cash market value of more than 25 percent of the original purchase price."

The town bought the trucks in 2012 for $287,000 each.

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Contact Derek Beigh at (309) 820-3234. Follow him on Twitter: @pg_beigh

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