Why U-46 board opposes Bartlett's proposed tax district
Elgin Area School District U-46 could lose between $30,000 and $50,000 in yearly property tax revenues if Bartlett establishes a downtown taxing district, officials said.
The school board Monday night adopted a resolution opposing the proposed tax increment financing district that would essentially freeze property tax payments to local taxing bodies at current levels.
U-46's property tax receipts from the area would be frozen at about $1.1 million yearly for 23 years, said Jeff King, chief operations officer.
Any growth in property tax revenues from improved or redeveloped properties within the district would be captured in a special fund, which Bartlett could use for infrastructure improvements and incentives for redevelopment within the TIF district.
"We wouldn't have any control over those funds," King told the school board. "If and when property values start to turn and begin to increase, our (tax) rate will start to decline."
King said it's hard to estimate potential revenue declines because it would depend on future growth or lack thereof.
The district's boundaries would run along Wilmington Drive to the east, Devon Avenue to the south, Western Avenue to the west and North Avenue to the north - excluding some townhouses, condominiums and new retail areas in between. It includes Senior Flexonics, vacant properties behind a Devon Avenue manufacturer and a shopping center on Prospect Avenue.
The equalized assessed value of properties in the proposed TIF area is about $18.5 million. With redevelopment, the village projects the equalized assessed value could increase to between $30 million and $35 million at the end of 23 years.
Roughly 75 percent of the proposed downtown TIF area was part of a previous TIF district dissolved in 2009, which started out with a value of about $6.7 million and increased to more than $24 million during its 23-year life span, King said.
"We recouped what our losses were in about 3.6 years after the closure of the TIF," King said. "I would estimate the same thing would probably occur in this instance."
The TIF district also would affect revenues for Bartlett library, park and fire protection districts, and Hanover Township.
The Bartlett Public Library District board has adopted a similar resolution opposing the district's establishment.
Outgoing board President Jack Budz said Tuesday the village hasn't produced a specific plan for spending TIF funds.
Village-hired consultants have outlined general improvements eligible for $17.5 million in expected revenues from the district.
"They're putting the cart before the horse, saying, 'Let us have the money, and we'll tell you what to do with it,'" Budz said.
The library district could lose $1.5 million over the life of the TIF district.
Budz also is concerned about freezing property tax payments at a time when the real estate market is slowly recovering from the housing crash.
Bartlett Park District board President Lori Palmer said commissioners will discuss whether to take a stance on the TIF district at the May 12 meeting. Palmer said the park district would lose an estimated $750,000 over the duration of the TIF.
Bartlett Mayor Kevin Wallace said he is not surprised by the opposition and that village officials will take it into consideration.
"This is how an approval of a TIF is supposed to work," he said. "The TIF is not finalized. We try to listen to everybody."
Wallace said village officials also are concerned about the uncertainty of state revenues but are focused on long-term planning and infrastructure needs.
Consultants have endorsed creating the district to lure developers, who could get TIF incentives, to the downtown, where they say 69 percent of the structures are more than 35 years old and 24 percent are vacant.
On May 14, the Intergovernmental Joint Review Board comprising those affected taxing bodies will discuss whether to recommend for or against Bartlett's TIF district.
• Daily Herald staff writer Katlyn Smith contributed to this story.