The Joliet City Council will get its first chance to vote on a new alternative tax for truck parking facilities on Tuesday.
The PILOT (payment in lieu of taxes) program being developed by staff was presented to a city council committee last week.
On Tuesday, the full council will vote whether to apply the alternative tax on a proposal for two truck/trailer parking areas with a total of 249 spaces at 2951 Mound Road.
“Early indications point to little tax generation of these facilities and large amounts of truck-related abuse to local roads,” a staff memo to the council states.
The council on Tuesday will consider a special use permit for the Mound Road site.
Staff is recommending that any approval be conditioned on the use of a PILOT to collect money not generated by property taxes.
Staff is proposing the alternative tax because of low assessments and consequently low property taxes on truck parking areas. The parking lots have low assessments because they typically have no buildings or small structures on them.
Truck parking lots typically generate $638 an acre in property taxes compared to large warehouses that generate $2,045 an acre, according to staff. The alternative tax is aimed at collecting the amount of money a truck lot would generate if it instead had been developed for a warehouse.
“There are still a lot of trucks that are coming and using them,” city Economic Development Specialist Derek Conley told the Land Use and Legislative Committee last week. “However, they’re not paying the same level of taxes.”
The city zoning board in September recommended applying the alternative tax to the development.