West Dundee is moving forward to establish a new special taxing district officials hope will spur economic activity and fund a downtown redevelopment project.
The proposed tax increment financing district would cover part of the downtown area, properties along Route 31 south of Route 72, and land off Route 31 owned by the Haeger family, according to village documents. Trustees this week agreed to schedule a public hearing March 19 regarding the TIF plan, which incorporates 258 parcels.
If officially adopted by the village board later this year, the TIF district would allow the village to provide tax incentives to new developments, such as the Springs at Canterfield subdivision along Route 31, Village Manager Joe Cavallaro said. It would also serve as a funding mechanism for various public improvements included in a downtown revitalization plan, he 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.
"Economic incentives, regrettably, have been more the norm than the exception in terms of trying to facilitate development in the Chicago area," Cavallaro said. "This was a concerted effort to link downtown and the Route 31 corridor and the Haeger property in terms of being able to provide enough synergy that makes sense from an economic development standpoint."
The village has been working through a due diligence phase since the TIF district was first proposed about a year ago, Cavallaro said. Chicago-based Kane, McKenna and Associates Inc., hired by the village last February, completed a TIF eligibility report and prepared a subsequent redevelopment plan.
West Dundee officials have also been working with Community Unit District 300 to draft an intergovernmental agreement intended to ease school officials' concerns over the TIF district, Cavallaro said. The deal would apply to all adjoining taxing bodies.
"We want to be a good cooperative governmental entity in using this to everyone's benefit," he said.
District 300 officials declined to comment Thursday, saying nothing has been finalized. Superintendent Fred Heid last year voiced concerns regarding the TIF's effect on the district's tax base, but said officials would be open to working with the village.
The joint review board, which represents local governments potentially affected by the TIF, is scheduled to meet in February. The village board is expected to vote in April on whether to adopt the TIF district.