The Algonquin village board has taken the first step toward setting up a special tax area for those who eventually move into and do business at Riverside Plaza.
But the tax would kick in only if the homeowners association failed to maintain the building's common areas, roof and courtyard, according to Russ Farnam, community development director.
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Tuesday night, the committee of the whole gave preliminary and unanimous approval to set up a February hearing in which the public would have an opportunity to comment on the proposed area. If the village board reaffirms the vote next Tuesday, the hearing will be held Feb. 4 at village hall. A final vote to establish the special service area wouldn't take place until after Feb. 4, Farnum said.
The tax would be 2 percent of the equalized assessed valuation of the property. The village would expect to collect $60,000 a year from the tax.
But before levying the tax, the village would first need to exhaust other options that would include giving notice to the association about the poor maintenance, as well as the chance to rectify the situation.
"It's a fail-safe kind of insurance policy," Farnum said.
Right now, 63 apartments and two storefronts are slated for the empty building at routes 31 and 62. The project is expected to be completed by the summer.