Study recommends special taxing district for downtown Bartlett
A village-hired consultant has endorsed a tax increment financing district for downtown Bartlett, about four years after the last one expired.
Growth and redevelopment would not be economically feasible without incentives, according to the consultant's report. Declining property values, deteriorating buildings and lagging utilities keep private developers from investing on their own, according to the study.
The report by Kane, McKenna and Associates Inc. helped convince Bartlett trustees on Tuesday night to direct economic development commissioners to weigh in on whether the village should create a TIF district. Mayor Kevin Wallace said he's still studying the idea but initially favors a TIF district as an economic development tool and because the previous district - raising $20.4 million - exceeded expectations.
"I just look back on the results of the last one, and it was pretty positive," he said.
Still, despite that payoff, officials say the downtown's recovery from the recession has stalled. Among the consultant's other findings:
• 69 percent of the structures are more than 35 years old
• 24 percent are vacant
• The area's 2013 equalized assessed value fell 15.3 percent to $18.7 million from the previous year
The district would be bounded by Wilmington Drive to the east, Devon Avenue to the south, Western Avenue to the west and Oneida Avenue to the north (excluding some residential areas in between).
The proposed boundaries would expand on the last district to include Senior Flexonics, vacant properties behind the Devon Avenue manufacturer and a shopping center on Prospect Avenue, Community Development Director Jim Plonczynski said. Those businesses have not pitched any formal redevelopment plans that would benefit, he said.
In a TIF district, property tax payments to local taxing bodies such as schools and park districts are frozen for up to 23 years. The village then funnels any additional property tax revenue above those levels into a special fund that can be used to help pay for improvements to the area.
The consultant said an estimated $17.5 million in projects could be funded by TIF funds over the life of the district. The plan is short on specifics but provides a framework for eligible projects like sewer and road improvements. Wallace said the prospect of TIF dollars could spur interest in a vacant property where the old Lucky Jacks bar closed.
"It's an icon in the downtown area. It's one of the oldest buildings in the downtown area," Wallace said. "Things like that I think are important that we have an opportunity for an investor to come in and say, 'hey if I have these funds, I'd be able to clean this up and make it a viable business again.'"
A joint review board representing other taxing bodies would have to make a recommendation for or against a new district. In March, the village board could vote on whether to adopt one.