The Macomb City Council took a key step Monday toward creating a new Business Development District that would impose targeted taxes to fund economic growth.
At a 41-minute public hearing, consultant Steve Kline outlined plans for a district covering the area from East Jackson Street to Pella Corporation and from Lafayette Street to Tower Road. The district would levy a 1% retailer’s occupation tax, a 1% service tax, and a 1% hotel operator’s occupation tax, generating up to $2 million annually. If approved, the city aims to begin collections January 1, 2026.
“These are not citywide taxes,” Kline told the council. “The major obligation of the city is to develop its major business corridors.” Mayor Mike Inman confirmed each tax would total one percent.
Alderman John Vigezzi noted that visitors, not just local businesses, would contribute through these taxes.
The council could adopt the resolution on September 2. In related business, the council approved a $105,000 contract with Integra Realty Resources for work on the city’s sports facility project. Alderman Justin Schuch dissented, calling the expenditure “a lot of money to be paid without having an open conversation.” City Attorney Lisa Scalf said the contract includes clear exit provisions if the project does not proceed.
The council also approved a legal services agreement with Ancel Glink Corporation for the sports facility, again with Schuch dissenting.
To prevent a repeat of a recent water main incident, the council authorized spending $35,500 to install a 16-inch Hydro-Stop valve. Public Works Director Alice Ohrtmann explained the valve will isolate sections of the water system to allow repairs without shutting off service.
Other actions Monday included:
- Payment of $351,447 to Laverdiere Construction for the second phase of the 2025 Road Program.
- $44,642 to Cummins Sales and Services for a new engine in a city bus and $2,030 to Dan’s Towing for transport to Bloomington-Normal.
- $194,000 to The Farnsworth Group for design work on Chandler Park.
- Approval of a road use agreement with Argyle Lake Solar for materials use at its solar farm on West Grant Street.
- Adoption of an ordinance creating an event center liquor license for The Penny at 126 West Side For complete details on Proposal Business District and Map see page 20
