East Dundee suit against Carpentersville Wal-Mart funding to go back to court

A lawsuit filed by East Dundee officials, who are trying to prevent Wal-Mart from obtaining more than $4.3 million in special taxing funds for its new Carpentersville store, is headed back to court, this time with a new judge.

East Dundee Attorney Tom Gardiner said state law prohibits tax increment financing funds from being used to entice a business to relocate within 10 miles. Because the new store is less than three miles away, East Dundee argues Wal-Mart does not qualify for TIF funds, Gardiner said, noting the village wasn't trying to stop the store from opening.

Kane County Judge David Akemann dismissed the lawsuit last year, saying East Dundee's case lacked standing. The village appealed that decision, as well as an order denying the village's motion for a substitution of judge.

Following the appellate court decision Monday, the lawsuit will go back to the circuit court, and East Dundee can continue making its case in front of a new Kane County judge. The decision also means Akemann's ruling is void.

“This shows we have standing, we have merit in this case,” East Dundee Village President Lael Miller said. “The important thing is for us that this validates the fact that we did have a valid case and that the previous judge's ruling is tossed out.”

Carpentersville Village Manager Mark Rooney, who argued the village did not violate TIF laws, said the appellate court decision to put a new judge on the case doesn't mean Akemann's initial ruling isn't valid. Wal-Mart and Carpentersville officials have argued the company's decision to move was market driven and a result of circumstances beyond its control.

“It's a meritless case,” Rooney said. “It's a complete waste of the taxpayers' money in East Dundee, and now they're also wasting Carpentersville taxpayers' money to defend a meritless case.”

Rooney said the village has not yet decided its next steps.

In a TIF district, the property tax revenues that go to local governments are frozen for up to 23 years at a certain level, which is set on a base assessed property value. Any taxes generated above that level can go back into redevelopment.

The new Wal-Mart Supercenter in Carpentersville held its grand opening early Wednesday. East Dundee estimated it would lose an estimated $60,000 to $80,000 per month in sales tax revenue after the closing of its Wal-Mart store.

• Daily Herald staff writer Harry Hitzeman contributed to this report.