Brixmor Property Group will make its case Tuesday as to why the Naperville City Council should charge customers who patronize its two Route 59 shopping centers an additional 1% sales tax to fund infrastructure improvements.
Company representatives are scheduled to explain at a council hearing what they will do with the extra money collected from purchases made at Westridge Court and Heritage Square stores, restaurants and offices and to justify why it’s necessary that a special tax be assessed.
Brixmor wants the council to create a 65-acre business district at Route 59 and Aurora Avenue to encompass the two shopping centers, including the Hollywood Palms Cinema, and to approve a 1% sales tax.
The tax would not be charged on purchases made at Portillo’s, Chili’s and Arby’s fronting Route 59 and Citibank and Taco Bell on Aurora Avenue.
Renovation plans call for the removal of many of the shopping centers’ existing buildings so the site can be reoriented with a central public green space surrounded by outlots along Route 59 and Aurora Avenue.
According to a memo from Bill Novack, director of Transportation, Engineering and Development, work in what is being called the Block 59 Business District will require the complete removal and relocation of the infrastructure that serves both centers.
Revenue generated from the added tax will pay for $13.4 million in infrastructure replacement.
The council’s initial reaction to the Brixmor proposal was mixed.
Some members at previous meetings questioned why portions of the Westridge Court, which recently underwent a facelift, are being included in the proposed business district.
Novack said removing some businesses from the district would require the sales tax to be collected over a longer period, which would be capped at 23 years.
Because of the extra time and additional dollars being collected, city staff does not support reducing business district boundary, he said.
Council members also raised concerns that taxes could be collected without a guarantee that the improvements would be built.
Novack said Brixmor has agreed to not request any tax reimbursement until three conditions are met:
All buildings slated for demolition are removed;
Infrastructure — building pads, parking lots and required utilities — and community improvements are installed and approved by the city;
Public green space is completed and the first certificate of occupancy obtained.
To be considered for business district approval, the property must be deemed a “blighted area.”
Consultants Kane McKenna Associates found that the site is an economic liability and underutilized because of the deterioration of infrastructure, inadequate street layout, a decline in property values and decline in sales taxes.
The council hearing on the request is set for 7 p.m. at the Naperville Municipal Center, 400 S. Eagle St.
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