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updated: 1/31/2013 4:44 PM

Judge denies restraining order in East Dundee Walmart dispute

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A Kane County judge has denied a request for a temporary restraining order to prevent Walmart from getting special taxing district funding for a proposed new store in Carpentersville.

The village of East Dundee, which would lose its Walmart at 620 Dundee Ave. after the new one opens, sued Carpentersville and argued that the new location is only three miles away from the current site.

Judge David Akemann issued his ruling late Wednesday; he did not entirely discount East Dundee's arguments but noted more time will be needed to examine the merits of the case.

"East Dundee by affidavit clearly indicates the clear intention of Carpentersville to receive an application in the near future which would then need to go through a significant review process that will take some time," Akemann wrote. "The court does not find that a TRO (temporary restraining order) is necessary to protect East Dundee from irreparable harm until the court has the opportunity to consider Carpentersville's motion to dismiss and if denied to conduct an evidentiary hearing on East Dundee's motion for preliminary injunction."

State law, East Dundee attorneys argued, requires that in order to be eligible for funding from a tax increment financing district, or TIF, a new project must be 10 miles away from the old one.

A message left for East Dundee attorney Thomas Gardiner was not immediately returned Thursday.

In a TIF district, property tax levels are frozen for a period of up to 23 years. As redevelopment occurs and the land is worth more, the increased value, or increment, is used to pay for new streets and infrastructure or to help defray development costs.

Carpentersville attorney James Wargo argued Tuesday that no agreement for TIF funding was in place, that the restraining order was an extreme remedy and East Dundee officials were trying to stall the development.

Last year, Walmart officials announced plans to build a 108,000-square-foot supercenter in Carpentersville off Route 25 and close the 22-year-old store in East Dundee.

East Dundee officials expect to lose some $850,000 a year if its Walmart closes. Trustees have taken steps to open up new revenue streams, such as approving video gambling.

Carpentersville also wants Akemann to throw out East Dundee's lawsuit and could argue its case Feb. 14.

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