ROCHELLE — At its meeting Monday, the Rochelle City Council held discussion on a potential agreement with Teska Associates Inc. for consulting services to establish an Eastern Gateway tax increment financing (TIF) district and/or a business development district to aid in the development of the Caron Ridge Shopping Center, the former site of the Sullivan's Foods grocery store. 

The space has been vacant for a number of years. At its Feb. 12 meeting, the city will consider an agreement with Teska Associates Inc. for $20,000 to assist with the creation of the economic development tools that are commonly used to develop areas that have been vacant for years. If the city approves the agreement, Teska Associates Inc. would do a study and the council would decide on which tool to use, or both. 

The city already has three TIF districts, which the council expressed satisfaction with at Monday's meeting. TIF districts grow funds after development is seen in an area based on the difference in improved value. That money is then used to incentivize developers. The city has not had experience in the past with a business development district, which sees development funds raised by an increase in sales tax, specifically only in the district it's located. A sales tax increase at the site of the Caron Ridge Shopping Center would be in .25-percent increments up to one percent. In order for a business development district and sales tax increase, the eventual business that fills the space would have to ask for it. 

"The TIF districts we have had have worked very well," Mayor John Bearrows said. "We don't have much experience with the business district concept. I don't want to be a part of adding more taxes. The TIF district is a proven concept."

Substation

The council unanimously approved two expenditures for its upcoming electrical substation project off Illinois Route 38. 

The council first approved the purchase of switchgear in the amount of $2.672 million from avail/AZZ. Only one bid was received, Rochelle Municipal Utilities Superintendent of Electric Operations Blake Toliver said. The lead time on the switchgear is 77 weeks due to supply chain shortages. The bid was over the engineer’s estimate of $1.8 million for the contract. 

Toliver said electric utility materials continue to increase in price, and said he doesn't anticipate those prices will come down in the near future. The Illinois Route 38 will expand and improve the city and RMU's electric system. 

The council then approved the purchase of a transformer for the substation for $2.047 million from WEG with a lead time of 56 weeks. The city did receive a lower bid of $1.561 million with a 60-week lead time from Virginia for the transformer, but Toliver advised the council to select the WEG bid due to reliability concerns with Virginia and familiarity with WEG. Toliver said the orders will be made as soon as possible due to long lead times.

Security

The council unanimously approved the purchase of an access control system from Becktech for $81,492 for its buildings. The quote from Becktech was the only one city staff was able to procure. Due to upgrades at its 333 Lincoln Highway and 1030. S. 7th St. buildings, the city desired to have the access control system work take place during those renovations. 

City employees will be given access to buildings via radios, phones and key cards and employee access will be tracked. The access to all main entrances will also include a camera and intercom system for staff to monitor when customers or members of the public are requesting access to the building.