By Kevin Haas
Rock River Current
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ROCKFORD — The city plans to provide Guler Appliance with $25,000 to help it renovate the former Crazy Joe’s furniture store to serve as its new location.
Guler is relocating to former furniture store at 4435 E. State St. after 86 years in business in the city’s Midtown. The move from 227 Seventh St. to Rockford’s Miracle Mile will help Guler more than double the space it has in Midtown.
Guler is pumping more than $1 million in to renovations, including structural repairs, facade improvements and interior work, according to the city. The one-time $25,000 reimbursement will come from the city’s East State/Alpine TIF district.
Tax increment finance districts are a financial tool meant to help cities spur development. They work by capturing increases in property tax revenue that come after improvements are made and values increase into a special fund spent on certain redevelopment purposes.
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However, in this case the value of the former furniture store is not expected to rise above the base level it was before the TIF was created. That means no revenue will be generated for the fund. However, city officials say the work will still raise property values and benefit the city as a whole.
“The property value will certainly increase, but it won’t get above the base,” said Karl Franzen, the city’s director of community and economic development. “In terms of TIF increment, there’s not going to be any generated. But certainly the rehab does increase property assessment, will increase their taxes and all taxing bodies will benefit from the reimbursement.”
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The city’s Planning & Development Committee approved the reimbursement this week and it goes before the full City Council on Monday.
Crazy Joes operated at the East State Street site for more than 20 years before closing in April.
This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on Twitter at @KevinMHaas.