Keystone financing approved

By a unanimous vote, the McCook City Council at its regular meeting Monday night approved a Redevelopment Plan including a contract that will allow tax increment financing for the Keystone Hotel project.

The plan allows a $320,000 tax increment financing bond to be issued by the McCook Community Development Agency (the McCook City Council), to be purchased by the McCook Economic Development Corp., the entity that is developing the building into a business center.

Mike Bacon, an attorney from Gothenburg who is acting as special council to the McCook Community Development Agency, said the project is appropriate for TIF as it is restoring a dilapidated structure and "breathing new life into it."

"It will be a jewel in your crown," he said.

Prior to the regular meeting, the council met as the Community Development Agency to approve the plan and recommend its passage to the council.

At that meeting, Bacon reviewed a cost benefit analysis, citing no new taxes would be used as the project would not need improvements to police/fire departments or infrastructure needs.

The building is assessed at $120,000 and taxes on that amount will continued to be paid to the various entities that receive property taxes, such as schools, the county, city, NRDs and others.

After 15 years, when the TIF expires, the building is estimated to be assessed at $2 million after an investment of $4 million.

The completed structure will generate new employees, Bacon said, as 21st Century Systems Inc., a military software company, will expand at the facility and add 20 highly skilled employees to the area.

In addition, office space will be available for the MEDC, the Chamber of Commerce and a business incubation center.