Monday, January 09, 2006
Prevailing Wage Law Spreading
Sunday’s (Elgin) Daily Courier-News points out that a controversial 8-unit townhouse project is not in the new law’s crosshairs.
The developer was promised a subsidy of $25,827 for each unit constructed. In the fall of 2004, local union bricklayers objected to the Illinois Labor Department, which ruled in the union’s favor.
It’s a small project, but if the developer takes the $207,000 subsidy, he will have to re-calculate provide the difference in salary and benefits between whatever he paid his bricklayers and the $47 per hour prevailing wage.
So, what are the implications for Tax Increment Financing Districts, such as have just the two that have been approved in Crystal Lake on Virginia Street and Main Street? Not to mention the one being voted upon this month on Route 14 next to Vulcan Lakes.
Click here for an index on the all of the TIF articles I have written.)
My guess is that this new law means even more money will be diverted from our school, park and other local governments over the 23 years the RIF lives. The TIF law allows Crystal Lake’s city fathers and mothers to subsidize the renovation of buildings, such as the old Oak Manufacturing complex. If those doing the remodeling must be paid prevailing wage, it will certainly cost more, taking more money out of the pockets of local governments than would be the case otherwise.
Of course, that means all other local taxpayers will have more money picked out of their pockets to finance the lost taxes of the schools and other local tax districts.
To return to McHenry County Blog, click here.
The developer was promised a subsidy of $25,827 for each unit constructed. In the fall of 2004, local union bricklayers objected to the Illinois Labor Department, which ruled in the union’s favor.
It’s a small project, but if the developer takes the $207,000 subsidy, he will have to re-calculate provide the difference in salary and benefits between whatever he paid his bricklayers and the $47 per hour prevailing wage.
So, what are the implications for Tax Increment Financing Districts, such as have just the two that have been approved in Crystal Lake on Virginia Street and Main Street? Not to mention the one being voted upon this month on Route 14 next to Vulcan Lakes.
Click here for an index on the all of the TIF articles I have written.)
My guess is that this new law means even more money will be diverted from our school, park and other local governments over the 23 years the RIF lives. The TIF law allows Crystal Lake’s city fathers and mothers to subsidize the renovation of buildings, such as the old Oak Manufacturing complex. If those doing the remodeling must be paid prevailing wage, it will certainly cost more, taking more money out of the pockets of local governments than would be the case otherwise.
Of course, that means all other local taxpayers will have more money picked out of their pockets to finance the lost taxes of the schools and other local tax districts.
To return to McHenry County Blog, click here.
# posted by Cal Skinner : 8:19 AM
