To help recover its costs for the development of the former Case plant property along the riverfront, East Moline will establish a special district. Monday night the city council will consider designating The Bend Business District.
Mayor John Thodos says this will allow the city to charge a one per cent sales tax and one per cent hotel tax in the new development.
"It's very similar to the special service area tax we have downtown. There's a property tax that's collected by the people downtown and it can only be used by the people downtown."
This revenue will help East Moline pay for the $4.2 million worth of infrastructure work it has agreed to do - for streets and the levee, and for water and sewer lines.
"We structured this so there's less financial exposure for the city. We've had enough examples in the past where those precautions were not taken and unfortunately we have some nice infrastructure in locations that have not generated the property tax from the tif that's required. "
Mayor Thodos says a lot of work on The Bend has already been done, including engineering and environmental surveys, and site preparation is underway.
