View 21 project seeking $336K in TIF dollars; Finance Committee sends proposal to City Council

October 22, 2024 | By J. Robert Gough, Publisher

QUINCY — A Quincy company redeveloping a downtown building into mixed-use is requesting more than $300,000 in tax increment financing from the City of Quincy as part of its nearly $6.9 million redevelopment of a century-old building.

The Finance Committee unanimously voted during its Monday night meeting to send the proposal to the full City Council for a vote.

DP Properties of Quincy LLC has been renovating the former McDonald Stove and Quincy Plumbing and Heating building at 116 N. Third since July 2021, when owner Derek Price bought the property for $615,000.

The redevelopment, known as View 21, calls for renovation of the nearly 60,000-square-foot facility, which has been vacant for more than a decade. It includes four units for commercial leasing on the first floor, 24 residential units ranging from one to three bedrooms on the second and third floors, and five luxury apartments on the fourth floor. It will include residential parking garages and more than 60 off-street parking spaces.

Construction began this summer and is expected to be completed by the end of 2025. Pre-leasing for commercial spaces is underway, with residential pre-leasing scheduled to start in early 2025.

The group is seeking $336,400 in TIF dollars to install a fire suppression system. Bevelheimer said if the TIF funds were approved, they would not be provided until after a certificate of occupancy is issued.

City Planning Director Chuck Bevelheimer said during Monday night’s meeting that TIF West was generating about $800,000 a year, and no dollars have yet to be committed from that fund. He said the $1.5 million in TIF dollars for the hotel project at 531 Hampshire was a tax rebate and would be out of the 2025 TIF budget.

Cotter Pin Capital, founded by Will Duryea and Nick Smith, is working with Price on the project. Duryea, Price and Smith made their pitch for TIF dollars during Monday night’s meeting.

In a news release, Cotter Pin Capital describes itself as “a group of local investors who share the vision of enriching Quincy through strategic investments. By promoting local entrepreneurship and development, Cotter Pin intends to create a model that ensures economic returns remain in the community, fostering sustainable growth and improving overall quality of life.”

The Finance Committee also voted to send to the City Council a proposal to buy the Players Club Bar, 225 N. Fifth, from Don Heck for $90,000. If the City Council votes to approve the purchase, the city would then demolish the bar.

Bevelheimer explained to the committee that the city bought 221 N. Fifth several years ago in anticipation of rebuilding Parking Lot F on the southwest corner of Fifth and Vermont. Demolishing the bar would allow for the addition of 30 more parking stalls, providing more public parking near the Adams County Courthouse.

Since many county employees use Parking Lot F, the city has asked Adams County to be reimbursed for the acquisition of Players Club Bar. Bevelheimer said the county will use federal stimulus money to pay back the city, and the money must be spent by the end of 2025.

“It is a expensive acquisition, but I think it’s a right acquisition for the city to do at this time,” Bevelheimer said. “It doesn’t make sense for the city to rebuild that parking lot around the building. Since we own three sides of the parking lot, and since we can have the county help us with the acquisition on this thing, I think it’s a wise decision by the council to move forward with this.”

The Finance Committee also approved for the city to apply with the Illinois Department of Commerce and Economic Opportunity (DCEO) to become a member of the River Edge Redevelopment Zone (RERZ), which helps revive and redevelop environmentally challenged properties adjacent to rivers in Illinois. Other cities with RERZ designation are Rockford, Elgin, Aurora, Peoria and East St. Louis.

The RERZ provides a state income tax credit equal to 25 percent of a project’s qualified rehabilitation expenditure for income-producing buildings undertaking substantial rehabilitation.

Community Development Planner Jason Parrott told the committee that DCEO has 180 days to consider Quincy’s application. The area in the zone would be roughly from Harrison to Locust, from the riverfront to roughly Ninth Street. Parrott said the land can’t be more than 4,500 feet from the river.

A memo prepared by Bevelheimer for the committee explained that benefits of becoming a RERZ member are: