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North Aurora takes steps toward third TIF district

North Aurora is considering creating a special tax-incentive district to prompt redevelopment of a stretch of Route 31 north of downtown.

The village board Monday passed a resolution of intent, and hired a consultant to study the feasibility of the district.

The area is on the east side of Route 31 from the southern edge of the River Oaks apartment complex south to Oak Street.

"If we can do something with it we ought to," Village President Dale Berman said Tuesday, noting the deteriorating condition of some of the buildings, some of which are rental properties.

The ordinance approved Monday cites "deteriorating conditions, vacancies, building and other code violations and a lag in the growth of property values" as reasons to consider the financing incentive.

There are apartments, houses and office buildings in the area, on 25 parcels. One owner owns about 20 percent of the land, according to a memo by Scott Buening, the village's community development director.

A tax-increment financing district freezes the amount of property taxes governments get at present value for 23 years; any increase in property taxes due to increases in the value of the property are instead used to improve the TIF area. The money could be used to improve utility service, buy land, beautify parkways and more. State law says villages may use a TIF to improve "blighted" areas and "reverse and prevent obsolesce and deterioration" of buildings in an area.

At a June 7 meeting where the idea was first discussed, trustees Mike Herlihy and Robert Strusz voted against a proposal to seek bids for a TIF consultant.

"I would honestly rather hear more about a proposed project than just start spending $10,000 bills to form a TIF," Herlihy said at the time. "Not enough has happened in the adjacent TIF districts to get me excited about starting another one." There are TIF districts south of State Street along Route 31.

Teska and Associates will be paid $18,000 to determine if the area qualifies for TIF designation under state law, as well as the impact of a TIF district on housing in the area. If the village sets up the district, that bill would be paid by the TIF funds.

"None of that is going to go in a kind of commercial or business direction without a push," Berman said.