City officials also are concerned about locating a non-profit hospital in the boundaries of the tax incremental financing district that is being sought for the Pabst Farms development. During those 15 years, all property tax revenue from development in the district would be used to pay for public improvements, such as sewer and water lines, within district boundaries. Tax revenue would not be distributed to the county, city and local school districts for their general use during that time. That just hasn't been the kind of use we envisioned for Pabst Farms. Benefits without taxation feared A non-profit hospital in a TIF district would reap the benefits from public improvements paid for with property tax revenue but would not pay taxes.
Some cities negotiate agreements with non-profit institutions for payments in lieu of taxes.
However, Tonn said, some municipalities lately have had difficulty reaching such agreements with non-profits organizations. Tonn said he has heard that Aurora may take legal action against the city if the rezoning recommendation is approved. He said Aurora would continue to work on its plans for a hospital and clinic at Pabst Farms and hoped aldermen would wait to make their decision on the rezoning recommendation until they heard the other side of the issue. In a letter to patients, Wilkinson Clinic doctors urged people to contact city officials to support the hospital plans. I don't know of any city this size that has two hospitals.