Village of Somerset property to be declared 'distressed'
The village of Somerset had big plans for the 99 acres it purchased in 2009.
Unfortunately, the economy had other plans.
The property -- Tax Incremental District (TID) #4 -- is located off Hwy. 35N. There has not been any development in the area to generate revenue to pay off the approximate $3 million debt.
When the economy took a downturn and all new construction ceased, the land sat empty.
According to Pam Donohoe, village clerk, the village board could decide to raise property taxes to pay for the debt, but it want to avoid that.
Instead, the board is in the process of declaring TID #4 "distressed," which means that the village can take revenue from another TID to help pay off the debt. The most profitable TID in the village of Somerset is TID #2 -- the main industrial park. The proposed Project Plan Amendment provides that TID #2 would donate excess tax incremental funds to TID #4 in the approximate amount of $5,300,000.
In doing this, both TIDs would be granted an extension: #4 would be extended until 2037 and #2 would be extended to 2029.
There was a public hearing on the subject at the Village Hall on Thursday, Nov. 3. The issue will be on the agenda for the village board meeting on Tuesday, Nov. 15, at 7 p.m. The public is welcome to attend.