EAST MOLINE, Ill. — Foods, drinks and goods could cost a little more in East Moline by summer.
East Moline City Council has taken the first steps towards a business development district. At a council meeting on Monday, Feb. 5, the council approved the hiring of a consultant to determine what areas of East Moline would benefit most from the project.
The proposed plan would add an additional sales and hotel tax of up to 1%. The tax money would fund projects proposed by businesses each year, like renovations, expansion and infrastructure needs.
"There will be a committee that's established to vet all the applications that come in, we'll score them and then submit a recommendation of funding grant to city council for approval," city administrator Mark Rothert said.
Some business owners are worried, like Crystal Reickard, who co-owns Jennie's Boxcar. "Right now for me, just me personally because I own a restaurant, it's a hard pill to swallow," Reickard said.
With a 1.5% food and beverage tax increase taking effect in East Moline this March, Reickard is concerned about keeping her prices competitive. "You know with inflation and everything, it's hard for people to want to go out and spend money. So every little extra, 50 cents, dollar, two dollars makes a difference," she explained.
Rothert said the increases put East Moline's tax closer to the rates of neighbors like Moline and Rock Island. "At some point we've gotta catch up to address our community needs, and create the opportunity we all want to have," he said.
Planners are aiming to have a public hearing on the plan by Mar. 18 at the city council meeting, with the goal of enacting the tax increase by July 1.