Special taxing districts proposed for Carpentersville

Two new special taxing districts are being considered in Carpentersville to foster redevelopment, a village official says.

A tax increment financing district is proposed for Old Town Carpentersville, an area that TIF Project Manager Marty Bourke calls the village's "core." It would extend along Route 31, across the river, along part of the riverfront and throughout a large portion east of the river.

The other TIF is proposed for Carpentersville's portion of Spring Hill Mall - excluding anchor stores Kohl's and Carson's - to facilitate the mall's $37.8 million redevelopment project. The project includes the addition of a movie theater, an outdoor plaza and outward-facing retail.

"They're major projects," Bourke said. "This has been a continuing effort on (the village board's) part to ensure that there is a viable community in the future."

In a TIF district, property taxes that go to local governments are frozen at a certain level for 23 years. Any taxes generated above that level go into redevelopment.

Studies determined that both areas are TIF eligible because they lack growth in equalized assessed value, among other factors, according to reports from SB Friedman, a development advising firm.

In some cases, such as with Spring Hill Mall, the consideration of a TIF district stems from a developer's desire to invest in or redevelop a specific area, Bourke said. Using incremental tax revenue, Carpentersville agreed to reimburse mall owner Rouse Properties $1 million as part of a municipal contribution to the redevelopment project.

West Dundee, where the mall and the proposed renovations largely fall, will contribute $7.6 million.

"The redevelopment probably couldn't happen without a TIF," Bourke said, adding that a TIF district there would also "perpetuate the life and vitality of the mall and the area around it."

In the Old Town district, TIF funds would go toward public improvements, Bourke said. The village has been discussing plans to redevelop the area in recent years and has a list of capital projects that would benefit from a TIF, he said.

From there, Bourke said, outside developers are more likely to invest in projects throughout that area, eventually raising property values and bringing in more businesses.

"All communities would like their core to be as attractive and as marketable as possible," he said. "Hopefully by making public improvements - new ones or rehabilitated ones - you'll make those properties more attractive for redevelopment."

The village is also considering amending an existing TIF district, which will expire in 2018, to include marketing an eligible expense, Bourke said. The "minor" change would allow TIF funds to go toward signs at the Spring Hill Center for Commerce and Industry, he said.

The proposed TIF projects will be discussed by Carpentersville officials and other underlying taxing bodies, including school, library, township and county districts, at an Oct. 27 joint review board meeting, Bourke said.

"The village will make its case that the village needs redevelopment," he said, noting that the long-term benefits would outweigh any temporary loss of revenue. "We hope to make a convincing case."

Additionally, residents who live in or near the proposed districts will be notified, and a public hearing on the projects will be held Dec. 1.