Plans are moving ahead for a new business district in Galesburg.
Monday night, city leaders officially approved the North Seminary Street business district plan, plus made an agreement with the developer.
They also approved a special tax that will apply to businesses within that area.
"Tax does not apply to anywhere else in Galesburg," said Mayor John Pritchard.
Which means when residents go to shop in the North Seminary Street business area, they'll be paying a 1% retail and hotel tax, which will be added on to standing city taxes.
However the tax doesn't apply to food or pharmaceuticals.
"That's the funding that'll be used to repay the costs of the infrastructure development," said Mayor Pritchard.
Infrastructure like construction of a new road and a revamping of the Seminary Street and Knox Square Drive intersection.
Mayor Pritchard said they chose to fund the infrastructure costs this way so the whole city wouldn't take on the burden.
"To fund those costs, we established a special business district," he said.
Galesburg residents are on both sides of the issue.
Some think the sales tax is necessary.
"I think anything that helps with the growth of the city is good. The city needs to grow," said Ed Leahy of Galesburg.
While others think the extra tax will push potential shoppers away.
"I really don't agree with it. I feel that if we're going to do business development then it should be a city wide tax. Something like that where everyone has to pay the extra to cover it," said Laura Markley of Galesburg.
The first building in the new business district will be an Aldi grocery store.
Developers are expecting to have it opened by November 16th.
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