Council Sets Public Hearing for New Downtown Taxing Plan

Suggesting people “buckle up” for a tough debate, Wheaton Mayor Michael Gresk cast the deciding vote Monday to allow a public hearing on a new Special Service Area in downtown Wheaton.

Gresk, a former president of the Downtown Wheaton Association—which is proposing the SSA—touted the organization as an asset to the downtown community. He said without the organization, Wheaton would be a “lesser place” due to lower downtown property values. But, recognizing that not everyone who owns property in the proposed SSA would automatically support the new taxing plan, Gresk encouraged those on both sides of the issue to muster their forces and participate in the public hearing set for Oct. 10. Gresk was supported by Wheaton City Council Members Tom Mouhelis, John Rutledge and Todd Scalzo, who is the liaison between council and the DWA.

In June the DWA began to feel out support from council members on the establishment of a new SSA, following the sunset of SSA 6 in April 2012. Under the new proposal, the DWA would reduce the tax rate from 95 cents per $100 to 45 cents. Under the current 95 cent rate, the city of Wheaton receives 60 percent of the funds and the DWA receives 40. Under the new 45 cent proposal the DWA would directly receive all the funding. If council approves the new SSA, it would remain in place for seven years.

DWA officials want to change the funding mechanism because many of the downtown properties are in one of three TIF district and any extra monies generated through property taxes are sent into one of the TIF funds.

Earlier this month until they could review the DWA’s financial statements. After those statements were submitted, two council members, Jeanne Ives and Phil Suess, remained opposed to the new plan. Ives said she was concerned DWA gave $5,000 in tax money to The Friends of the Theater, an organization she called a political action committee. A balance of $200,000 in the DWA bank accounts was also concerning to Ives. She said the money was supposed to be used to promote downtown businesses, but it remains in the organization’s coffers.

Derek Bromstead, former DWA president and owner of , said the $5,000 was a good use of marketing funds to bring people to downtown Wheaton. Regarding the account balance, he said if the funds are not spent by the expiration of the SSA, then by statute the funds would be returned to the property owners.

Ives suggested the city not be involved in collecting the taxes to fund the DWA. She said it would be better if the business owners that want to participate would pool their own funds to privately support the organization—a comment met by guffaws from some in the audience.

Suess said about 17 percent of the taxes paid by the downtown businesses in the SSA support the DWA. He said cutting those taxes would make a strong marketing tool for downtown.

Several downtown business owners stepped up to support the DWA position, including Jill Card, owner of . Card called the DWA “the most powerful marketing tool” for small businesses in Wheaton. Card told council she located her shop in Wheaton largely due to the DWA efforts to promote downtown Wheaton. If the DWA were to fold, Card said she would have to think about keeping her business in Wheaton.

But not all downtown business owners were as supportive. Mary Anna Steffan, owner of , said she has seen no benefit from the current SSA and has had to borrow money to pay the SSA taxes.

DWA President and owner of Planning Resources, Keven Graham said the DWA will use the next month to drum up support for the SSA and the organization’s mission. He said they want to continue to create a positive business environment for downtown.

CORRECTION: Keven Graham is the president of the Downtown Wheaton Association, not the executive director.