Walmart still has its eyes set on moving to Carpentersville and all it wants is $4.3 million from the tax increment finance district that would surround the new Route 25 store.
In exchange for the assistance, Walmart would bring nearly $20 million in combined revenue from sales tax and property tax receipts throughout the life of the TIF, according to Walmart's draft application for TIF assistance.
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But that's all over if Carpentersville doesn't offer TIF assistance to Walmart, according to the application, which SB Friedman Development Advisors presented Tuesday night to the Carpentersville village board.
In a TIF District, property tax levels are frozen up to 23 years in a "blighted" area. As redevelopment occurs, the increased taxes from the land -- or "increment" -- are used to pay for new streets or infrastructure or given to a company or builder to help defray development costs.
Walmart would build and open its 185,685 square foot store at Lake Marian Road and Route 25. The village created a TIF district for Route 25 two years ago. Construction and land acquisition are expected to cost $26.2 million.
The project is eligible for $7 million in TIF assistance, but Walmart is only requesting $4.3 million for stormwater management, environmental remediation and access and safety improvements to the property.
Much to East Dundee's chagrin, Walmart would close its 23-year-old store in that village to build the supercenter in Carpentersville.
A judge has twice denied East Dundee's move for a temporary restraining order and has also thrown out a lawsuit aimed at preventing Walmart from receiving TIF money from Carpentersville.
Now that Walmart has put an application in for TIF assistance, East Dundee Village President Lael Miller is considering the town's next move.
"We're weighing our options, we're watching to see what happens and we'll take action if we feel that it's necessary to continue this," Miller said. "We'll vigorously defend our folks over here."
Carpentersville Village Attorney Steve Elrod said he's not worried about East Dundee.
"I'm very confident of the village of Carpentersville prevailing in any lawsuit brought by the village of East Dundee," he said, adding that Carpentersville is and will always comply with state law.
The Carpentersville village board is expected to vote on a redevelopment agreement for Walmart before Labor Day, Village Manager J. Mark Rooney said.
If all goes as planned with securing the necessary permits, construction should begin in 2015, with the store opening the following year, said Bruce Goodman, a Walmart attorney.