WASHINGTON, Ill. – A vote is expected later this month on creating a new business development district in Washington.
A first reading was held on the proposal at Tuesday night’s city council meeting. A second vote will take place in about two weeks, with implementation at the start of 2027, if approved.
Prior to the first reading, a public hearing was held regarding the proposal, which mainly consisted of City Administrator Jeff Fiegenschuh explaining the district, and questions from aldermen.
The plan would create a new district along the U.S. Route 24 corridor, running from Summit to Wilmor. It would encompass Washington Plaza, the Walmart and Menard’s shopping centers, and Hillcrest Golf Center.
“It is a rather large area, but we tried to encompass areas where we feel that there’s potential for growth,” Fiegenschuh said.
The district would impose a 0.25% sales tax to raise revenues that would go for a variety of projects and services, including acquiring and preparing sites for new development, building rehabilitation, economic development initiatives, and infrastructure improvements.
The sales tax would only be limited to general merchandise, and not be applied to food, drug, or titled items such as vehicles. Fiegenschuh says the money cannot be used for salaries and wages.
City leaders estimate that the tax increase would generate around $700,000 annually.
Ward IV’s Michael McIntyre says the district can help fix blighted properties in the city, as well as potentially bring in new businesses. He also argues the sales tax increase with the district could help lower property taxes.
Both of Ward III’s aldermen, Bobby Martin and Brandon Moss, would like to see the elimination of the city’s commercial grant program, if the business development district is approved.
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