Developer seeks tax rebates for Hoffman Estates homes
A development partnership is asking Hoffman Estates officials to reimburse some property taxes to cover costs it says would enable a largely residential development with some businesses on 161 acres at the northwest corner of routes 59 and 72.
The village board's planning, building and zoning committee Monday voted 5-2 to recommend approval of an inducement resolution that would reimburse eligible costs if a tax increment finance district were ever established for the property.
Hoffman Estates Mayor Bill McLeod and Trustee Anna Newell voted against the recommendation, saying the project's lack of details didn't justify such action yet.
"I think this is really premature," McLeod said. "I think you ask for a TIF when you have a plan."
He added that he doesn't favor TIF districts for residential projects and that Hoffman Estates has never had one.
A TIF district freezes property taxes received by local governments at the level of its first year. For as long as 23 years afterward, any property taxes collected above that level go into a special fund to reimburse the cost of public improvements.
Jake Finley, managing partner of Golden Goose Enterprises LLC, said the site has some development challenges that would require the help a tax rebate. Among these are wetlands, flood plains, buried construction debris and a natural gas pipeline that would need to be relocated.
Though the anticipated development would include single-family homes, row houses and multifamily buildings, Finley said there is not yet a specified number of each type of dwelling.
Commercial development would be located right at the corner, with the residential buildings spreading to the north and west.
Matt Norton, the attorney for the developer, told village officials the inducement resolution doesn't commit them to approving a TIF district.
But if the resolution is approved next Monday, Dec. 15, it would allow a certain amount of the costs that begin accruing the next day to be reimbursed if a TIF district were ever established.
The developer estimates $21 million in costs would be eligible.