A Tif Problem in LeClaire - News and Weather For The Quad Cities -

A Tif Problem in LeClaire

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For several years - the city of LeClaire has been trying to bring more people into the city - in hopes that business will follow.

Since 1996 - LeClaire has been offering TIFs - or tax breaks to residential developers - but when that happens - the local school district loses out on thousands of taxable dollars.

One of these has been going on since 2003.

And on Monday - the leader of the Pleasant Valley School district says enough is enough.

Dr. Jim Spelhaug says despite a huge surge in students over the last 10 - the district is growing - but he budget isn't.

According to district records - if all the residential tax break records would go away in LeClaire - the district would earn an extra $673,000 per year in property taxes.

But instead - city leaders are voting to extend those tax breaks.

"They still get a percentage," says Mayor Bob Scanell "But they don't get what they actually have coming."

Dr. Spelhaug adds that extending these tifs cost taxpayers more in property taxes.

He says this happens when the city withholds the money for uses in city projects.

But the mayor says these projects are needed for things like city hall, the police station, and the current levee.