Wakenight auto sales steers for loan to drive more business

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POLO - Wakenight Auto Sales may get a face-lift if the City Council approves a $32,000 loan from its tax increment financing fund. Owner Roger Wakenight made the request at Monday's council meeting. He wants to replace windows, add a new office and remodel the shop area. He sells about 15 late-model cars a month at the shop at 602 S. Division St. The renovations will help promote the shop and attract more business from inside and outside the city, Wakenight said. He sold the business in 2007 when he left the area for a new job, and bought it back several months ago. Alderman Dick Styczynski was receptive to the request. "The object of TIF is to get more tax revenue," Styczynski said. "If we leave [the building] the way it is, there won't be any new revenue coming in." City Attorney Tom Suits said the improvements to the building could increase the equalized assessed value, which would lead to a raise in real estate taxes paid. City Clerk Susie Corbitt said an agreement between the city and Wakenight likely will be up for approval at the Jan. 19 meeting. In other action, the City Council approved spending $25,000 from its motor fuel tax fund, which is used to maintain streets and highways, to buy road salt and cold patch. What's a TIF? A tax increment finance district is an economic development tool that cities can use to raise money for infrastructure and redevelopment projects designed to attract new business. When a TIF district is created, a base value of the property within its borders is calculated, and for up to 23 years, local taxing bodies such as schools collect taxes only at that base level. Taxes paid by property owners within the TIF district continue to rise, though, and the money collected above the base rate - the increment - goes into a special fund to pay for improvements within the district.