West Dundee officials will consider establishing a special taxing district to serve as a financing tool for ongoing and future redevelopment projects.
A tax increment financing district is one of several funding mechanisms the village has considered to help pay for the implementation of a downtown revitalization plan. Last year, trustees approved creating a special service area and a business development district to raise property and sales taxes in that area.
The proposed TIF, however, could spur economic development beyond the downtown and give West Dundee a competitive edge over other municipalities when it comes to attracting new businesses and investors, Village President Chris Nelson said.
In a TIF district, the property tax revenues that go to local governments are frozen at a certain level, which is set on a base assessed property value. Any taxes generated above that level can go back into redevelopment.
“I think without the TIF, it’s going to be hard for us to compete,” Nelson said. “It helps to have this in our arsenal. We’re a smaller community, and I think it’s an absolute necessity.”
The proposed TIF, which includes 258 parcels, would cover the downtown, properties along Route 31 south of Route 72, and the land east of Route 31 owned by the Haeger family.
The village board voted 4-1 Monday to approve a roughly $40,000 agreement with Kane, McKenna and Associates Inc. to conduct a TIF eligibility report and prepare a subsequent redevelopment plan.
The Chicago consulting firm already conducted a preliminary review, which determined the area would be expected to qualify as a TIF district based on a set of criteria outlined in state legislation, Executive Vice President Robert Rychlicki said. The downtown, for example, has some deteriorating buildings, lagging property values and obsolescence, whereas chronic flooding qualifies the Haeger property as blighted.
Approving the agreement with Kane McKenna does not obligate trustees to enact the TIF, Nelson said, but it allows them to fully vet the concept before making a decision. Other taxing bodies affected by the TIF will be involved in discussions, he said, and some officials have already met with Community Unit District 300, the largest overlapping agency.
Trustee Patrick Hanley was the lone opposition vote, saying he wanted to give those taxing bodies a chance to weigh in before the village spends money on a study. “It’s hard to change our mind once you’ve already got skin in the game,” he said.
District 300 Superintendent Fred Heid said the findings from Kane McKenna’s report will fill in some blanks for the district regarding the TIF’s effect on its tax base and other potential outcomes.
“There’s always a willingness to hear it out,” he said. “We’re good partners. We all serve the same constituents. That’s the reality.”
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