Taxpayers Stuck Paying MidTown Cub Foods
WMBD/WYZZ-TV—PEORIA--Cub
Foods on Knoxville is closing its doors, but taxpayers are still stuck with the
remaining $4.2 million tab owed
on the TIF district bond.
By: Iris Pérez - WMBD/WYZZ
Updated: February 6, 2009
WMBD/WYZZ-TV—PEORIA--Cub
Foods on Knoxville is closing its doors, but taxpayers are still stuck with the
remaining $4.2 million tab owed
on the TIF district bond.
Peoria Economic Development Director, Craig Hullinger,
tells us project developer David Joseph will continue to pay property taxes on
the land.
Still
sales taxes from "other sources" are needed to continue paying off
the bond.
Hullinger says the City has yet to identify
those other sources.
The original $5.5 million bond was structured to be paid off by property taxes
and Cub Foods sales taxes.
Hullinger says taxpayers are still stuck with the bill because the bond was taken out as a general obligation loan.
Hullinger also tells us this year's exact annual payment on the bond is $451,100.
The City expects the bond to be paid in full in 2019.
