Wood River Approves Up To $1 Million Transfer To Keep Funding TIF Projects

Wood River City Council Meeting

WOOD RIVER – Wood River City Council members on Monday voted 3-2 to approve an alternative option to keep funding downtown redevelopment projects with a transfer of up to $1 million in city funds.

After much discussion and debate, councilmen narrowly passed an ordinance allowing the transfer of up to $1 million from the city’s Capital Improvement and Development Fund and the Non-Home Rule Sales Tax Fund into its TIF #3 District Fund to continue funding Tax Increment Financing (TIF) redevelopment projects.

The ordinance states city officials have deemed this transfer necessary to continue funding current and future TIF obligations concerning “redevelopment project costs” for approved developers.

The City of Wood River has reportedly determined the major funding transfer is “legally permitted” and “in the best interests of public health, safety, general welfare, and economic welfare.” According to the ordinance, the city “intends to return the transferred funds” up to a maximum of $1 million “over time,” with no exact timeline set.

At Monday’s meeting, Councilman Bill Dettmers asked on what basis the city was basing its opinion that the transfer is “legally permitted.” City Attorney Kathryn Warren responded that such transfers are allowed by state statute, as long as the city itemizes the sources of TIF funds, including transfers from municipal sources.

Dettmers explained that under a ballot initiative passed in 2019, the city’s Non-Home Rule Sales Tax funds are only to be used for specific purposes, including property tax relief, infrastructure, and municipal operations. Dettmers said the $1 million transfer “looks like a loan,” and questioned the city’s claim the funds would be returned “over time.”

“That doesn’t look like a commitment, that looks like a ‘weasel out’ clause, to be honest with you,” Dettmers said. “I don’t think the city ever intends to repay that fund, that’s my concern.”

City Manager Steve Palen said Wood River’s TIF Fund hasn’t been established for long and currently doesn’t have “a ton of money” left in it. Citing a TIF agreement to develop the future Heaterz Chicken location, Palen said he doesn’t “want to turn away good business or a good opportunity because there’s no money in the TIF.”

Councilman Jeremy Plank said the lack of money in the city’s TIF Fund is “a good thing,” as it shows high demand for redevelopment projects.

“I think that’s a good thing, if we’re running low on TIF funds because the demand is high for people to redevelop downtown,” Plank said. “We have [had] 35 different entities asking for TIF money over the past several years … things are moving.”

Plank also said the city brought about $500,000 into its TIF Fund last year after bringing in just $45,000 six years prior. He also said properties in the TIF District have seen a nearly $15 million total increase in fair market value, though Dettmers and Plank disagreed over how heavily this increase was driven by TIF improvements.

Dettmers later objected to the city “front-loading” the funding of TIF projects by “dipping into” Capital Improvement funds. He reported never receiving a response after meeting two years ago with city officials on whether it would be more cost-effective to redevelop the existing buildings in downtown or to “knock the buildings down and start anew.”

Palen said in his opinion, “tearing down all the buildings in downtown is not an option.” Plank dismissed the idea of demolishing the downtown buildings as “ridiculous.”

“Millions of dollars in TIF agreements and development and private sector investment is a good thing, Bill. To tear down downtown is ridiculous,” Plank said. “Nobody’s going to say it’s better to tear it down.”

Ultimately, the ordinance allowing the transfer of up to $1 million from the city’s Capital Improvement and Development Fund and the Non-Home Rule Sales Tax Fund into its TIF Fund was approved 3-2. Dettmers and Councilman David Ayres casted the two votes against the item, while Plank, Councilman Scott Tweedy, and Mayor Tom Stalcup voted in favor.

A full recording of the Nov. 3, 2025 Wood River City Council meeting is available at the top of this story or on Riverbender.com/video.

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