Glen Ellyn getting first TIF district?

A consultant hired by Glen Ellyn officials recommends the village create its first tax increment financing district.

A feasibility study by Ehlers and Associates presented to the village board Monday says Glen Ellyn’s central business district would be eligible for TIF district designation, and if approved, could bring in between $16.5 million and $34.5 million over the district’s lifetime. Those monies could be used to finance redevelopment and public works projects.

The Ehlers report says the central business district is eligible for TIF designation as a “blighted area” for improved land and for vacant land, and as a “conservation area” for improved land.

Maureen Barry, a financial adviser from Ehlers, said there’s a difference between the general conception of “blighted” compared to what is defined by law. Under state law, there are 13 criteria for blighted — five of which are required for establishment of a district. The Ehlers report said six of the criteria are met in Glen Ellyn’s downtown: obsolescence, deterioration, excessive vacancies, excessive land coverage and overcrowding of structures, lack of community planning, and lagging EAV.

The proposed district would cover 82 acres and encompass primarily commercial properties.

If the TIF were to be implemented, the base equalized assessed values would be frozen at current levels for all taxing districts, and real estate tax revenue derived from incremental EAV would be available to pay for economic development projects, Barry said.

She noted the village’s 2009 downtown plan identified some $76 million in proposed public project costs.

“TIF shows it doesn’t cover all that cost, but it can get you a ways there,” Barry said. “It can spur private development. TIF is a tool you can use that isn’t a tax increase that can pay for some of these costs.”

Before a TIF district is established, the area in question must pass what is known as the “but for” test, she said — that without TIF, there would be no reasonable expectation that development would occur.

Should village trustees decide to go ahead with TIF plans, a four to five month approval process would commence, Barry said. That would include the meeting of a joint review board to include other taxing bodies.

After the presentation to the village board, Village President Mark Pfefferman said Monday’s discussion on TIF was the first, but wouldn’t be the last.