The Wheeling Village Board agreed Monday to give Millbrook Pointe, a townhouse development along Wolf Road, up to $1.5 million in Tax Increment Financing money as its developers complete its construction.
The funds will come only as property taxes are paid on each completed unit. To be eligible, a home must be completed and occupied within four years. The 26 units in the first phase of the development, at 431 N. Wolf Road, have been sold.
Gary Levitas, the project's developer, could receive TIF funds on 34 more homes in the project's second phase, which is under construction. The homes are priced from $289,000 to $370,000, less than the $400,000 and more homes in the initial phase sold for prior to the housing crisis, Levitas said.
The TIF funding, which will come from the additional property taxes generated from occupied homes as opposed to vacant land, can be used to reimburse the developer for land costs and infrastructure improvements.
Impact fees to schools, library and park district that are subtracted from the $1.5 million total $169,000. However, since the development is expected to generate few students, Levitas is seeking a further reduction to $122,450. Village staff has asked Levitas to talk this request over with the affected taxing bodies.
Impact fees are designed to cover expenses generated by the residents of the new homes in the first year of occupancy, before property taxes arrive, said James Ferolo, village attorney.
Board discussion Monday was mostly about the future of impact fees and how long it has taken to get the agreement between the village and Levitas worked out. He started seeking more than $2 million at least 18 months ago.
Prairie Park, another development in a Wheeling TIF district, over the years has been promised $11 million in TIF funds, with the final $3.5 million of that also performance based, given to the developer only as units are sold.